Hochschild Mining PLC on Wednesday reported improved financial performance with the company benefitting from greater production and higher commodity prices.

Despite the positive results, Hochschild Mining shares were down 5.6% at 183.20 pence each in London on Wednesday morning.

The London-based precious metal miner swung to a $69.4 million pretax profit in the first half that ended June 30 from a $66.1 million pretax loss last year.

Revenue increased 25% to $391.7 million from $314.0 million, while cost of sales eased by 1.1% to $248.1 million from $250.9 million.

Attributable production rose 12% to 152,792 gold equivalent ounces from 136,878.

Impairments and write off stood at $13.9 million, down 77% from $61.4 million previously.

Chief Executive Officer Eduardo Landin said: ‘I am pleased to report on an encouraging first half performance. We are delighted to have brought Mara Rosa into commercial production, an asset which underpins our strategy of increasing production and lowering costs. With Inmaculada enjoying a strong 2024 so far, as well as higher underlying commodity prices, we have delivered substantial improvements in our financial metrics compared to last year.’

Administrative expenses increased 13% to $23.6 million; exploration expenses increased 17% to $13.5 million; selling expenses increased 10% to $7.6 million; other expenses increased 15% to $14.8 million.

Net debt was up 5.2% over the period to $271.2 million at June 30 from $257.9 million on December 31.

‘We continue to focus on our extensive brownfield exploration programme, with encouraging progress being made across our portfolio, and are pleased to reiterate our full year 2024 guidance of producing 343,000-360,000 gold equivalent ounces,’ Landin added.

Achieving the lower end of guidance would represent a 14% increase from 300,749 ounces produced in full year 2023.

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