19th Feb 2020 09:03
(Alliance News) - Hochschild Mining PLC said Wednesday its profit doubled in 2019 as it delivered "further strong progress".
The FTSE 250-listed silver and gold producer said revenue rose 7% to USD755.7 million, compared to USD704.3 million in 2018. Pretax profit doubled to USD76.8 million from USD38.4 million a year ago.
Hochschild said full-year attributable production was 477,400 gold equivalent ounces, exceeding guidance of 457,000 gold equivalent ounces. The company said it would target production of 422,000 gold equivalent ounces in 2020.
Hochschild said this was mostly due to the record performances at Inmaculada mine in Peru and San Jose mine in Argentina.
Chair Eduardo Hochschild said: "Furthermore, with precious metal prices recovering significantly in the second half of the year, our business generated strong free cashflow allowing us to strengthen our balance sheet, further invest in our exploration initiatives and add value accretive projects to our portfolio."
As a result, the company proposed final dividend of 2.335 US cents, a 19% increase from 1.959 US cents a year ago.
Hochschild also said 2019 was a strong year for precious metals, particularly gold, which was driven by declining US interest rates and heightening geopolitical and global trade risk and represented the largest annual year-end gain since 2010.
Hochschild shares were trading 6.3% higher in London at 170.60 pence each on Wednesday.
By Loreta Juodagalvyte; [email protected]
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