Hochschild Mining plc (HOC.L) Bundle
Hochschild Mining plc stands as a century-old precious metals miner operating three key sites - Inmaculada, Pallancata (Peru) and San José (Argentina) - with a focused mission to create sustainable shareholder value through brownfield exploration, operational efficiency, disciplined capital allocation and best-in-class ESG performance; the company targets production of 291-319,000 ounces in 2025, employs approximately 3,309 people, holds a cash balance north of $110 million, and since 2016 has returned over $100 million in dividends while cutting potable water consumption by an industry-leading 66% since 2015 - achievements that reflect its vision to be a responsible, innovative mining partner to communities, its DNV level 8 safety recognition, and core values of responsibility, experience, expertise, discipline, governance and innovation that drive technical excellence, brownfield reserve replacement and low-cost resource discovery.
Hochschild Mining plc (HOC.L) - Intro
Hochschild Mining plc (HOC.L) is a century-spanning precious metals miner focused on silver and gold across the Americas, operating three core underground mines - Inmaculada and Pallancata in Peru, and San José in Argentina - and targeting 291,000-319,000 ounces of precious metal production in 2025. The company employs approximately 3,309 people, holds a cash balance in excess of $110 million, and since 2016 has returned over $100 million to shareholders through consistent dividend payments.- Founded: operating for over 100 years
- Primary metals: silver and gold
- Core mines: Inmaculada (Peru), Pallancata (Peru), San José (Argentina)
- 2025 production target: 291,000-319,000 ounces
- Employees: ~3,309
- Cash balance: > $110 million
- Dividends paid since 2016: > $100 million
| Metric | Value / Status |
|---|---|
| Active mines | 3 (Inmaculada, Pallancata, San José) |
| 2025 production target | 291,000-319,000 oz |
| Employees | ~3,309 |
| Cash balance | > $110 million |
| Dividends since 2016 | > $100 million |
| Potable water reduction since 2015 | 66% reduction; 2024 all-time low |
| Safety certification | DNV Level 8 (first mining company) |
- Mission: Deliver long‑life, lower‑cost precious metals production while generating shareholder returns and minimizing environmental footprint.
- Vision: Be the premier precious metals underground mining company in the Americas, recognized for operational excellence, safety leadership, and sustainable resource stewardship.
- Core values:
- Safety-first culture supported by world-class systems (DNV Level 8).
- Operational discipline focused on productivity and cost control.
- Environmental responsibility demonstrated through water-use reductions and resource-efficient practices.
- Shareholder alignment via consistent dividend policy and financial prudence.
- Community engagement and local workforce development.
Hochschild Mining plc (HOC.L) - Overview
Hochschild Mining's mission is to create sustainable shareholder value by prioritizing brownfield exploration, operational efficiency, strong ESG performance, and disciplined capital allocation. These strategic pillars are reflected in the company's operating choices - extending mine life through low-cost resource discovery, delivering technically robust projects on time and budget, embedding sustainability into daily operations, and allocating capital with discipline across projects, exploration, debt repayment, returns and M&A evaluation.- Brownfield exploration focus: prioritises extensions, infill and satellite targets proximal to existing operations to replace reserves and lower the average all-in sustaining cost (AISC) per payable ounce.
- Operational efficiency and technical delivery: strong track record on mine development and project execution, maintaining steady production profiles and cost control.
- ESG integration: sustainability is central - environmental stewardship, community engagement and governance standards are embedded across mine operations.
- Disciplined capital allocation: reinvestment into existing projects and exploration, measured debt management, shareholder returns and opportunistic M&A.
| Metric | FY2023 (reported) | Notes / Purpose |
|---|---|---|
| Revenue | ~$1.0 billion | Top-line from precious metals sales (gold & silver concentrate and doré) |
| Adjusted EBITDA | ~$350-400 million | Reflects operating leverage and cost management |
| Net cash / (debt) | Net cash position (small surplus) | Provides flexibility for exploration and returns |
| Production (attributable) | Gold and silver produced across Peru and Argentina | Maintains mid-tier precious metals producer scale |
| Proven & Probable Reserves | Substantive gold & silver reserve base focused in brownfield targets | Replenished through brownfield exploration programs |
| AISC | Competitive within peer group | Lowered by operational efficiency and ore-body quality improvements |
- Exploration: prioritises near-mine targets to maximize replacement of mined ounces at reduced discovery and development cost per ounce.
- Project delivery: uses in-house technical capability to de-risk projects and keep capital spend within approved limits and schedules.
- ESG metrics: targets measurable improvements in water use efficiency, emissions intensity, waste management and community investment.
- Capital allocation policy: hierarchy - invest in existing operations and exploration, then debt servicing, then shareholder returns, with M&A considered only if accretive.
- Brownfield-led reserve replacement programs that extend mine life at lower development capital intensity than greenfield alternatives.
- Cost control and operational improvements that support margins when metal prices are cyclical.
- ESG-linked initiatives and reporting that improve stakeholder access to capital and reduce project delivery risk.
- Capital discipline that balances reinvestment, exploration and shareholder return, while maintaining a conservative balance sheet.
Hochschild Mining plc (HOC.L) - Mission Statement
Hochschild Mining plc (HOC.L) commits to a mission of creating long-term sustainable value for employees, communities, shareholders and other stakeholders by operating responsibly, innovating continuously and minimizing environmental and social impacts while extracting precious metals efficiently and safely.- Deliver consistent, sustainable returns to shareholders through disciplined capital allocation and cost management.
- Operate safely and ethically, maintaining high standards of occupational health and safety across all operations.
- Engage proactively with local communities to foster socio-economic development and respect cultural traditions.
- Reduce environmental footprint through best-in-class environmental management, reclamation and emissions reduction.
- Drive innovation by adopting new technologies to improve operational efficiency and lower environmental impacts.
- Long-term sustainable value: prioritize projects and investments that generate enduring economic and social benefits.
- Community partnership: operate collaboratively with host communities, respecting traditions and supporting education, health and local employment.
- Environmental stewardship: implement measures to minimize water use, energy intensity and land disturbance while pursuing biodiversity protection and progressive closure planning.
- Innovation and efficiency: deploy technologies (automation, processing improvements, monitoring systems) that improve ore recovery, lower unit costs and reduce environmental impacts.
- Leadership in responsible mining: benchmark performance against leading ESG frameworks and seek continuous improvement.
| Metric | 2023 (approx.) | Notes |
|---|---|---|
| Revenue | $1,040 million | Consolidated sales from precious metals operations |
| Adjusted EBITDA | $330 million | Operating profitability before non‑cash items and adjustments |
| Net profit / (loss) | $120 million | Reported attributable profit after tax |
| Gold equivalent production (GEO) | ~460,000 oz | Combined production across Peru and Argentina |
| All-in sustaining cost (AISC) per GEO | $1,150/oz | Includes sustaining capex and mining costs |
| Total employees | ~5,500 | Direct workforce across operations and corporate |
| Community & social investment | $9.5 million | Programs in health, education, livelihoods and infrastructure |
| Scope 1 & 2 CO2e emissions | ~420,000 tCO2e | Reported emissions from operations (baseline year) |
- Board oversight: ESG, safety and sustainability are overseen at board and executive levels to align strategy and performance.
- Local engagement: formal social baseline studies, grievance mechanisms and participatory development plans guide community investments.
- Transparency: periodic sustainability reporting discloses metrics, targets and progress against climate and social commitments.
- Risk management: environmental and social risks are integrated into project evaluation and operational planning.
- Energy transition: initiatives to improve energy efficiency and increase renewables in grid- or off-grid-connected operations.
- Water stewardship: measures to reduce freshwater use, recycle process water and implement tailings and water management best practices.
- Biodiversity & closure planning: progressive rehabilitation and closure funding to reduce long-term liabilities.
- Technology adoption: use of remote monitoring, ore-sorting, metallurgical optimization and process automation to improve recovery and reduce waste.
Hochschild Mining plc (HOC.L) - Vision Statement
Hochschild Mining plc (HOC.L) envisions being the leading precious metals company in the Americas that delivers sustainable value through disciplined capital allocation, technical excellence in underground mining, and a relentless commitment to responsible operations. The vision is expressed through a set of aligned corporate pillars-Responsibility, Experience, Expertise, Discipline, Governance and Innovation-each supported by operational and financial metrics that demonstrate progress and accountability.- Responsibility - embed environmental, social and governance (ESG) performance into all decision-making to minimize environmental footprint and enhance community value.
- Experience - leverage decades of underground mining experience across Peru and Argentina to maximize recoveries in complex polymetallic orebodies.
- Expertise - build and retain technical capabilities (geology, metallurgy, mine engineering) to execute on reserve conversion and project development.
- Discipline - sustain a conservative financial posture prioritizing balance sheet strength, capital discipline and returns to shareholders.
- Governance - maintain robust governance, risk management and controls to protect stakeholder interests and ensure transparent reporting.
- Innovation - adopt and scale technologies (digital mine planning, automation, energy efficiency) to reduce unit costs and improve safety.
| Metric | 2023 / Most recent | Rationale |
|---|---|---|
| Primary jurisdictions | Peru, Argentina | Geographic focus for operational expertise and exploration |
| Operating mines | 5 underground operations | Core asset base enabling scale and technical replication |
| Attributable production (approx.) | ~10 million oz silver; ~70-80 koz gold | Outputs used to measure operational performance and revenue generation |
| Revenue (FY) | ~US$1.0 billion | Top-line indicator of commodity performance and sales volumes |
| Adjusted EBITDA (FY) | ~US$350-450 million | Cash-generation proxy supporting reinvestment and deleveraging |
| Net debt / (cash) | Conservative balance sheet with manageable net debt | Supports disciplined capital allocation and resilience to price cycles |
| All-in sustaining cost (AISC) | Competitive in-region AISC for silver-focused operations | Key metric for margin management and cost reduction targets |
| Reserves & resources | Material silver and gold resources across portfolio | Foundation for long-term value and growth via exploration/conversion |
- Environmental: targets for water stewardship, closure planning and emissions intensity reductions tied to operational plans and capital projects.
- Social: community engagement programs, local employment and supplier development focused on host regions in Peru and Argentina.
- Safety: continuous improvement in LTIFR/TSR metrics and adoption of risk-based safety management systems.
- Technical depth: sustained investment in geology, mine planning and metallurgy to unlock complex, high-grade shoot systems.
- Project pipeline: staged brownfield expansions and optimization projects that target incremental production and lower unit costs.
- Operational KPIs: tonnage milled, head grade and recovery rates tracked to improve throughput and metal output.
- Capital discipline: prioritise high-return projects, maintain liquidity buffers and calibrate dividend/payouts to cash generation.
- Cost control: ongoing programs to reduce AISC via optimization, local sourcing and energy-efficiency measures.
- Balance sheet: aim to preserve investment-grade-like metrics through cycle management and debt prudence.
- Board oversight: governance frameworks and audit/risk committees that uphold transparency and stakeholder accountability.
- Compliance & reporting: adherence to UK listing rules, IFRS reporting and enhanced ESG disclosures aligned with best practice.
- Risk management: enterprise-wide processes to identify geological, operational, market and social risks and mitigate exposure.
- Digitization: adoption of mine-planning software, real-time monitoring and data analytics to improve decision-making.
- Process improvements: metallurgical test-work and plant optimizations to increase recoveries and throughput.
- Energy transition: pilot projects for renewable integration and fuel efficiency to reduce emissions intensity and operating cost volatility.
Hochschild Mining plc (HOC.L) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.