Hochschild Mining reported 2025 attributable gold equivalent production of 311,000 ounces, meeting guidance. Full-year EBITDA reached $575 million, beating consensus by 6%. The company sharply reduced net debt to $23 million, well below RBC Capital Markets' $162 million forecast, driven by working capital and the Tiernan Gold consolidation.
Looking ahead, Hochschild guided 2026 production between 300,000 and 328,000 ounces, in line with forecasts. However, all-in sustaining costs are projected at $2,157 to $2,320 per ounce—about 12% above consensus. Capital expenditure is expected at $221-$236 million, exceeding estimates due to higher development spending at Inmaculada and Mara Rosa.
RBC analyst Marina Calero noted the production outlook was "as expected" but called the cost and capex guidance "ahead of consensus." She trimmed her target price from 590p to 575p but sees any share weakness as a buying opportunity ahead of a potential inflection point in the second half of 2026.
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