Hochschild Mining: Printing Cash At $3,100 Gold

2025-04-11 10:30:00 ET

Summary

• Hochschild Mining completed a new gold mine in Brazil, adding 100,000 ounces to 2024 production, benefiting from high gold prices above $3100/oz.
• Despite a decrease in silver production, Hochschild saw a 37% revenue increase and a 50% rise in adjusted EBITDA due to strong gold prices.
• Hochschild expects 2025 production of 350,000-378,000 gold equivalent ounces with an AISC of $1587-1687/oz, projecting $225-250M in net free cash flow.
• The current share price of 277 pence still offers upside potential, making it a good time to retain or consider a long position.

Introduction

As mentioned in my previous article on Hochschild Mining ( HCHDF ) (HCHDY), this is the perfect time to get a new gold mine up and running. Hochschild has now completed the construction of a new mine in Brazil which will contribute approximately 100,000 ounces of gold to this year’s production numbers. With gold above $3100 and the futures, indicating a price north of $3300/oz next year, the timing works well for Hochschild. ...

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