Hochschild Mining (HCHDF) Q2 2026 Earnings Report

The call presented strong, record H1 financial and cash generation metrics, successful operational recovery actions (notably at Mara Rosa), and clear progress on development projects and permitting (Royropata, Monte do Carmo). However, the company faces meaningful near-term cost pressures driven by higher metal prices (raising royalties and profit-sharing), FX and local inflation (notably Argentina), elevated site-level AISC (especially Mara Rosa), a fatality at Inmaculada, and one-off tax and working capital cash outflows. Management emphasized mitigation via 50+ efficiency initiatives, maintained capital guidance, and disciplined allocation toward growth projects. Overall the positives — record financials, cash generation, operational recovery and project momentum — materially outweigh the operational and cost headwinds reported for H1.

Guidance highlights: Hochschild reaffirmed its 2026 production guidance (company H1 production ~150,000 oz) with site-level targets including Inmaculada 174,000–185,000 oz and Mara Rosa 67,000–80,000 oz, and updated all-in sustaining cash cost guidance to $2,380–$2,500/oz (H1 consolidated AISC $2,448/oz; Inmaculada $1,953/oz; San José $2,944/oz; Mara Rosa $3,551/oz). Full-year sustaining CapEx guidance remains $210–$225 million (H1 sustaining CapEx $105m). H1 free cash flow was ~$156m, ending cash and short-term investments $309m and net cash $51m (net cash ≈0.1x LTM EBITDA versus target 0.5–1.5x). Management plans an interim dividend of $0.04/share (~$21m), expects Monte do Carmo FID by year‑end with first production end‑2028, and submitted Royropata’s EIA (3.3Moz AuEq, 1.5 g/t Au & 412 g/t Ag, 30m width) with permitting expected ~August 2027 and >100,000 ozpa potential from 2028.