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Mining company Hochschild Mining reported improved first-half profit as a jump in production amid rising commodity prices bolstered revenue.
For the six months ended 30 June, pre-tax profit was $83.8 million from $6.5 million a year earlier as revenue jumped to $394.8 million from $232.0 million.
'Total group production was significantly higher versus the Covid-19 impacted H1 2020 and consequently, when combined with a 4% rise in the average gold price achieved and a weighty 62% rise in the silver price, revenue was increased by 70%,' the company said.
Attributable production was 175,119 gold equivalent ounces, substantially higher than the pandemic-impacted 2020 figure of 126,835 gold equivalent ounces.
The company said it anticipated announcing an interim dividend by the end of the month.
Looking ahead, the company reiterated production target for 2021 of 360,000 to 372,000 gold equivalent ounces or 31.0 to 32.0 million silver equivalent ounces.
All-in sustaining costs for the year were on track to meet $1,210 and $1,250 per gold equivalent ounce guidance.