Half Year 2024 Hochschild Mining PLC Earnings Call Transcript
Key Points
- Revenue increased by 25% to $392 million, driven by stronger production and higher gold and silver prices.
- EBITDA rose by 79% to $178 million, indicating strong operational performance.
- All-in sustaining cash cost is at $1,510 per gold equivalent ounce, at the lower end of the guidance range.
- Mara Rosa mine started commercial production in May 2024, contributing significantly to revenue.
- Strong ESG performance with improved eco score and increased local workforce and procurement.
- Net debt stands at $271 million, indicating a significant level of indebtedness.
- Admin expenses increased by $2.7 million due to stronger prices and long-term compensation plans.
- Exploration expenses were higher due to the restart of exploration plans, impacting overall costs.
- San Jose's all-in sustaining cost of $1,809 per ounce of gold equivalent is slightly higher than guidance due to local inflation and lower grades.
- Mechanical availability issues and contractor performance delays at Mara Rosa mine affected production ramp-up.
Good morning, everyone, and welcome to the Hotchschild Mining PLC interim results for 2024. And we can go -- please go to page number 3. As we announced on the Capital Market Day, we renew our strategy. We said that we will be focused on the core business, increasing production and lowering costs.
I have to say that on this first semester, we have been very strongly as the performance, revenues has a come up 25% to $392 million in line with the new prices. And then EBITDA went up 79% to $178 million. And our all-in sustaining cash cost is at $1,510, which is at the lower end of the guidance.
In terms of growth, Mara Rosa mine has been ramp up, Monte de Carmo projects, the option to secure. Royropata project, we continue the process of the permits. And in terms of the cost discipline, we have net cash of $89 million, our net debt is $271 million, and we continue to focus on debt repayment, growth and capital return.
If we can go to Page number 4, please. In this slide, you can see our continued strong performance
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