Hochschild Mining shares: should I buy for my 2021 portfolio?
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Hochschild Mining(LSE: HOC) shares rose about 35% in the past year. Commodity prices have been on an upward movement in the past few months. I believe that mining stocks will be in favour as the gradual lifting of pandemic restrictions might restart global economic growth.
Hochschild Mining’s results
The company released its 2020 results on 18 February 2021. Revenue dropped 18% year-over-year to $621.8m. The drop in revenue was primarily from production stoppages due to Covid-19. The rise in average realised precious metal prices reduced the negative impact of the pandemic. The average realised gold price increased by 28% y-o-y to $1,814 per ounce, and the silver price increased by 35% y-o-y to $22.3 per ounce.
§ Revenue of $621.8 million (2019: $755.7 million)
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§ Profit before income tax (post-exceptional) of $62.9 million (2019: $76.8 million)
§ Basic earnings per share (pre-exceptional) of $0.06 (2019: $0.09)
§ Basic earnings per share (post-exceptional) of $0.03 (2019: $0.06)
§ Cash and cash equivalent balance of $231.9 million as at 31 December 2020 (2019: $166.4 million)
§ Net cash of $21.6 million as at 31 December 2020 (2019: net debt of $33.2 million)
§ Final proposed dividend of 2.335 cents per share ($12.0 million) bringing the full-year total dividend to $32.6 million (2019: $10.2 million)
Strong 2020 operational recovery[3]
§ All-in sustaining costs (AISC) from operations of $1,098 per gold equivalent ounce (2019: $990) or $12.8 per silver equivalent ounce (2019: $11.5) below revised full year cost guidance of $1,200-$1,250 per gold equivalent ounce or $14.0-14.5 per silver equivalent ounce[4]
§ Full year attributable production of 289,293 gold equ
§ Revenue of $621.8 million (2019: $755.7 million)
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[2]
§ Profit before income tax (post-exceptional) of $62.9 million (2019: $76.8 million)
§ Basic earnings per share (pre-exceptional) of $0.06 (2019: $0.09)
§ Basic earnings per share (post-exceptional) of $0.03 (2019: $0.06)
§ Cash and cash equivalent balance of $231.9 million as at 31 December 2020 (2019: $166.4 million)
§ Net cash of $21.6 million as at 31 December 2020 (2019: net debt of $33.2 million)
§ Final proposed dividend of 2.335 cents per share ($12.0 million) bringing the full-year total dividend to $32.6 million (2019: $10.2 million)
Strong 2020 operational recovery[3]
§ All-in sustaining costs (AISC) from operations of $1,098 per gold equivalent ounce (2019: $990) or $12.8 per silver equivalent ounce (2019: $11.5) below revised full year cost guidance of $1,200-$1,250 per gold equivalent ounce or $14.0-14.5 per silver equivalent ounce[4]
§ Full year attributable production of 289,293 gold equ