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(Sharecast News) - Precious metals miner Hochschild Mining posted a sharp jump in firsthalf revenue and profits on Wednesday, though it also flagged a notable rise in attributable allin sustaining costs.
Hochschild said revenues surged 62% yearonyear to $844.4m, with adjusted underlying earnings up 119% at $491.5m and pre-tax profits climbing from $109.3m to $365.8m. Basic earnings per share rose to $0.37, while Hochschild's balance sheet swung to $51.1m of net cash from $20m of net debt at yearend.
The FTSE 250-listed firm also declared an interim dividend of $0.04 per share, up from $0.01 a year earlier.
However, Hochschild also said attributable production for the half came in at 151,830 goldequivalent ounces, down from 165,176 ounces in H125, with attributable AISC rising to $2,448 per ounce from $1,873 per ounce a year earlier.
Hochschild also said higher royalties, workers' profitsharing, selling expenses, stronger local currencies and continued cost inflation in Argentina had prompted a revision to its fullyear AISC guidance, now set at between $2,380 and $2,500 per ounce.
Operationally, Hochschild said the turnaround at its Mara Rosa asset was progressing as planned, supported by improved contractor performance and efforts to access highergrade zones, ease haulage constraints and optimise tailings and water management. It added that development work continued at Monte do Carmo, with an investment decision expected by yearend, while an environmental impact assessment at Royropata has been submitted in Peru.
Fullyear production guidance was reiterated at 300,000 to 328,000 goldequivalent ounces, with sustaining and development capex unchanged at $210 to $225m.
As of 0915 BST, Hochschild shares were up 3.68% at 648.51p.
Reporting by Iain Gilbert at Sharecast.com
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