Hochschild Mining boosted by Inmaculada mine's first year

Hochschild Mining posted its preliminary results for the 12 months to 31 December on Wednesday, describing financial performance and cash generation as “strong” as revenue rose to $688.2m, from $469.1m in 2015.

The FTSE 250 company said adjusted EBITDA was improved at $329m, compared to $138.8m, while profit before income tax swung to $108.3m from a $256.2m loss in the prior year.

Adjusted basic earnings per share stood at 11 cents, compared to 14 cent loss per share a year earlier.

The firm’s cash and cash equivalent balance grew to $140m as at 31 December, from $84.0m at the start of the year, while net debt was $187.4 million, falling from $350.5m.

It confirmed a total of $127.4m of debt was repaid in 2016.

The net debt-to-adjusted EBITDA ratio was 0.57x on 31 December, compared to 2.5x at the same time in 2015, and the board added that a further $25m of short-term debt was repaid in February 2017.

A final dividend of 1.38 cents per share was proposed.

“We have delivered an impressive improvement in our annual results driven by a first full year from our flagship Inmaculada mine, a strong overall cost performance and a more favourable pricing environment,” said CEO Ignacio Bustamante.

“Our financial performance has allowed us to significantly reduce leverage and at the same time reward shareholders for their support with a return to dividends during the year.

“In 2017, a further increase in output is expected with the new Pablo vein starting production and continued investment in our brownfield exploration strategy.”