leadf
logo-loader
viewHochschild Mining PLC

Hochschild holds fire on dividend while assessing impact of coronavirus mine suspensions

The Peruvian precious metals miner slid to a US$9mln loss before tax from continuing operations from a US$16.7mln profit last time

Hochschild Mining PLC -

Hochschild Mining PLC (LON:HOC) has decided not to reinstate its dividend after it swung to a loss in the first half of the year as gold and silver mining was halted due to the coronavirus (COVID-19) pandemic. 

The Peru-based, FTSE 250-listed miner was hit by stoppages at all its mines and exploration programmes from the middle of March until the restart was announced towards the end of May.

Peruvian operations were forced to stop for much of July at the Inmaculada mine when a number of positive cases of the virus were found.

Revenue for the six months to end-June, 2020, came out at US$232mln after silver production fell 53% and gold 43%, as the company had already revealed. 

Hochschild slid to a US$9mln loss before tax from continuing operations from a US$16.7mln profit last time, with profit before tax and exceptionals falling 68% to $13.1mln.

Having scrapped its final dividend for 2019 in April, the board said that as the Inmaculada mine is still in a ramp-up phase and pointing to continued uncertainty about the COVID-19 crisis in the countries where it operates, the decision has been taken that “it would be inappropriate to pay a distribution to shareholders at this time”.

On the outlook, although precious metal prices have climbed to long-term highs, the company said it is “hopeful of delivering a strong rebound in profitability in the second half of the year provided our people are able to operate safely and experience less disruption” and aims to provide guidance when a full assessment has been made of the mine suspensions. 

The second half will see a big focus on brownfield and greenfield activity to boost reserves and resources and identify new pipeline projects, it added.

Quick facts: Hochschild Mining PLC

Price: 229.2 GBX

LSE:HOC
Market: LSE
Market Cap: £1.18 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

FenixOro Gold continues aggressive drill program at their Abriaqui Project...

FenixOro Gold (CSE: FENX-OTCQB: FDVXF) CEO John Carlesso joined Steve Darling from Proactive to bring details about their drilling program that is ongoing at their gold silver and copper project in Colombia. That project is called Abriaqui and sits along a very mineralized belt. Carlesso...

in 1 hour, 26 minutes

2 min read