Preliminary Results
Year ended 31 December 2024
RESULTS FOR YEAR ENDED 31 DECEMBER 2024
Eduardo Landin, Chief Executive Officer of Hochschild, commented:
“We are pleased to announce our best financial performance for 13 years, a testament to our exceptional team and high-quality assets. Our growth strategy continues to deliver, with the addition of a record 2.8 million gold-equivalent ounces of mineable resources, extending the life of all our current operations and two major growth projects are now being developed that could boost annual production by over 200,000 ounces. In line with our commitment to shareholder value, we are restoring our dividend and introducing a clear dividend policy, underscoring our focus on sustainable returns. Our team remains dedicated to maximising value, optimising costs, and ensuring long-term growth.”
2024 Strong financial performance
? Revenueup37%at$947.7million(2023:$693.7million)1
? AdjustedEBITDAup54%at$421.4million(2023:$274.4million)2
? Profitbeforeincometax(pre-exceptional)up272%at$199.1million(2023:$53.5million)
? Profitbeforeincometax(post-exceptional)up507%at$177.2million(2023:$43.5millionloss)
? Basicearningspershare(pre-exceptional)at$0.23(2023:$0.02)
? Basicearningspershare(post-exceptional)at$0.19(2023:losspershareof$0.10)
? Cashandcashequivalentsbalanceof$97.0millionasat31December2024(2023:$89.1million) ? Net debt2 of $215.6 million as at 31 December 2024 (2023: $257.9 million)
Dividend restored
? Finalproposeddividendof$1.94centspershare($10.0million)3
? Dividendpolicyintroduced:payoutbasedon20-30%ofattributablefreecashflow4
o Minimum annual dividend of $10.0 million: to be distributed in two instalments
o Subject to leverage being lower than 1.5x Net debt/Adjusted EBITDA (current Net Debt/Adjusted EBITDA of 0.51x as at
31 December 2024)
2024 Operational Performance5
? Fullyearattributableproductionof347,374goldequivalentounces
? All-insustainingcosts(AISC)2fromoperationsof$1,638pergoldequivalentounce(2023:$1,454)
2024 Exploration and Project Highlights
? Recordresourceadditionsof2.8milliongoldequivalentounces
o 1.0 million gold equivalent ounces added at Inmaculada o 1.3 million gold equivalent ounces added at Royropata o 0.3 million gold equivalent ounces added at San Jose
o 0.2 million gold ounces added at Mara Rosa
? AcquisitioncompletedoftheMonteDoCarmoprojectfortotalphasedpaymentsof$60.0million($45.0millionalreadypaid)
2024 ESG KPIs
? LostTimeInjuryFrequencyRateof1.25(2023:0.99)6
? Waterconsumptionof138lt/person/day(2023:163lt/person/day)7
? Domesticwastegenerationof0.93kg/person/day(2023:0.93kg/person/day)8 ? ECOscoreof5.58outof6(2023:5.76)8,8
1Revenue presented in the financial statements is disclosed as net revenue and is calculated as gross revenue less commercial discounts plus services revenue
2Adjusted EBITDA, net debt and AISC are non-IFRS measures. Please see the Financial Review pages 16-19 for a definition and calculation of Adjusted EBITDA, net debt and AISC
3Please see the Financial Review page 20 for the calculation of the final proposed dividend
4Attributable free cashflow: attributable net cashflow from operating activities plus attributable net cashflow from investing activities (page 20)
52024 and 2023 equivalent figures calculated using the gold/silver ratio of 83x
6Calculated as total number of accidents per million labour hours
72024 environmental KPIs exclude Mara Rosa due to construction and commissioning activities which occurred prior to May 2024. Mara Rosa will be reflected in 2025 environmental KPIs.
8The ECO Score is an internally designed Key Performance Indicator measuring environmental performance in one number and encompassing numerous factors including management of waste water, outcome of regulatory inspections and sound environmental practices relating to water consumption and the recycling of materials.
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https://www.hochschildmining.com/investors/results-reports-presentations/