Hochschild Mining Full Year 2024 Earnings: EPS Misses Expectations

Hochschild Mining (LON:HOC) Full Year 2024 Results

Key Financial Results

• Revenue: US$947.7m (up 37% from FY 2023).
• Net income: US$97.0m (up from US$55.0m loss in FY 2023).
• Profit margin: 10% (up from net loss in FY 2023). The move to profitability was driven by higher revenue.
• EPS: US$0.19 (up from US$0.11 loss in FY 2023).

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HOC Production and Reserves

Gold

• Production: 245.01 troy koz (186.09 troy koz in FY 2023)
• Proved and probable reserves (ore): 45.21 Mt (29.07 Mt in FY 2023)
• Number of mines: 3 (3 in FY 2023)

Silver

• Production: 8,496 troy koz (9,517 troy koz in FY 2023)
• Proved and probable reserves (ore): 45.21 Mt (29.07 Mt in FY 2023)
• Number of mines: 3 (3 in FY 2023)

All figures shown in the chart above are for the trailing 12 month (TTM) period

Hochschild Mining EPS Misses Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 23%.

The primary driver behind last 12 months revenue was the Inmaculada segment contributing a total revenue of US$504.3m (53% of total revenue). Notably, cost of sales worth US$606.5m amounted to 64% of total revenue thereby underscoring the impact on earnings. The most substantial expense, totaling US$128.8m were related to Non-Operating costs. This indicates that a significant portion of the company's costs is related to non-core activities. Explore how HOC's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 2.1% growth forecast for the Metals and Mining industry in the United Kingdom.

Performance of the British Metals and Mining industry.

The company's shares are up 22% from a week ago.

Risk Analysis

It's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Hochschild Mining, and understanding it should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.