Hochschild Mining boosted by Inmaculada mine's first year

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.”