Company swings to a pretax loss in 2023 while adjusted earnings rise on higher gold and silver prices
- Hochschild Mining swings to a pretax loss in 2023
- Adjusted earnings rise on higher gold and silver prices
- Impairment losses and restructuring charges contribute to the loss
- Adjusted pretax profit more than doubles
- Adjusted EBITDA grows by 10%
- Revenue declines by 5.7% due to lower production
- Mara Rosa mine achieves first gold production
- Company backs output, cost, and capital-expenditure targets for 2024
- Net debt to be reduced in the medium term
- Final dividend not restored yet
Hochschild Mining has reported a swing to a pretax loss in 2023 due to impairment losses and lower production. However, adjusted earnings rose on the back of higher gold and silver prices. The company’s adjusted pretax profit more than doubled, while adjusted EBITDA grew by 10%. Despite a decline in revenue, the company remains confident in generating good cash flow. The Mara Rosa mine achieved its first gold production, and the company is backing its targets for 2024. Hochschild Mining also aims to reduce its net debt in the medium term and has not yet restored the final dividend.
Factuality Level: 8
Factuality Justification: The article provides a detailed and factual account of Hochschild Mining’s financial performance in 2023, including information on pretax loss, adjusted earnings, impairments, restructuring charges, production, revenue, and future outlook. The article does not contain any obvious misinformation, sensationalism, bias, or logical errors. It presents the information in a clear and objective manner, making it highly factual.
Noise Level: 3
Noise Justification: The article provides a detailed and focused analysis of Hochschild Mining’s financial performance in 2023, including information on pretax loss, adjusted earnings, impairments, and production. It also includes insights from the company’s chairman and analysts’ forecasts. The article stays on topic and supports its claims with data and examples. However, it lacks in-depth exploration of long-term trends, antifragility, or accountability of powerful people, which prevents it from receiving a higher rating.
Financial Relevance: Yes
Financial Markets Impacted: The financial markets impacted by this news article are the precious metals market and the mining industry. Hochschild Mining’s financial performance, including its pretax loss, adjusted earnings, and production levels, can impact investor sentiment and trading activity in these markets. Additionally, the rise in gold and silver prices mentioned in the article can have broader implications for the commodities market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: There is no mention of an extreme event in the news article.
Public Companies: Hochschild Mining (N/A)
Key People: Eduardo Hochschild (Chairman)
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