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Hochschild Mining reported a sharp uptick in annual profit amid a boost from better-than-expected production and higher precious metal prices.
For the year ended 31 December 2019, pre-tax profit rose 89% to $103.4m and revenue was up 7% to $755.7m on-year
Production of was 477,400 gold equivalent ounces exceeded full-year production guidance of 457,000 gold equivalent ounces, driven by record production at its Inmaculada and at San Jose mines, the company said.
The company proposed a final dividend of 2.335 cents per share, or $12m, up 19% on last year, taking the full-year total dividend to $22.2m, up from $20m.
Looking ahead, the company said it would target production of 422,000 gold equivalent ounces in 2020, with all-in sustaining costs for operations expected at between $1,040 to $1,080 per gold equivalent ounce.
'In 2019, we have delivered some strong financial results which reflect another robust year of production including records at two of our operations and good cost control,' Hochschild said. 'Improved precious metals prices in the second half of the year combined with strong free cashflow generation saw us reduce leverage further and finish the year with net debt at $33m.'