To reassess capital returns scope at FY results in early 2025 (Il Sole 24 Ore Radiocor) - London, 28 Aug - London-listed miner Hochschild said its first half revenue rose 25% to 391.74 million dollars, boosted by higher gold production combined with a 13% rise in the average gold price achieved.

Attributable gold production rose 25% to 104,0000 ounces. For 2024, the company sees production at 343,000-360,000 gold equivalent ounces.

Attributable silver output fell 8% to 4.07 million ounces.

All-in sustaining costs (AISC) fell to 1,510 dollars per gold equivalent ounce from 1,572 dollars a year ago reflecting the production at Immaculada in Peru and the lack of contribution from the high-cost Pallancata mine also in Peru. For the full year, the miner sees AISC at 1,510-1,550 dollars per gold equivalent ounce.

Adjusted EBITDA jumped 78% to 177.141 million dollars mostly reflecting the increased production levels, higher precious metal prices and lower costs.

Pre-exceptional earnings per share was 0.10 dollars from a loss of 0.004 dollars last year and post-exceptional EPS was 0.08 dollars from a loss of 0.09 dollars.

Hochschild said third quarter production at Mara Rosa in Brazil is currently behind schedule due to recent mechanical availability issues at the plant and the mining contractor's delayed ramp-up but with Inmaculada delivering better-than-expected output due to the company's optimisation projects helping to increase tonnage, it reiterated that overall 2024 production and cost guidance will not be impacted.

"We are confident that we will generate substantial cashflow in the second half to finance further expenditure on our brownfield exploration programme, potentially repay some of our debt and continue to advance our growth projects in Brazil and Peru. The Board also expects to re-evaluate the scope for capital returns at the full year results in early 2025," Hochschild said.

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(RADIOCOR) 28-08-24 11:30:49 (0251) 5 NNNN