Higher metals prices help Hochschild Mining FY results shine

Higher precious metals prices helped South America-focused miner Hochschild double annual profits.

The company on Wednesday said pre-tax profit after exceptional items rose to $76.8m from $38.4m on a 7% increase in revenue to $755.7m. Profit from continuing operations before income tax soared 79% to $103.4m.

Annual production of 477,400 gold equivalent ounces exceeded guidance of 457,000 gold equivalent ounces, driven by record production at Hochschild's Inmaculada and at San Jose mines, the company said.

The final dividend was lifted 19% year on year to 2.335 cents a share.

Hochschild said it would target production of 422,000 gold equivalent ounces in 2020.

“In 2019, we have delivered some strong financial results which reflect another robust year of production including records at two of our operations and good cost control,” Hochschild said.

“Improved precious metals prices in the second half of the year combined with strong free cashflow generation saw us reduce leverage further and finish the year with net debt at $33m,” said chief executive Ignacio Bustamente.