Politics

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

Hochschild Mining PLC (LON:HOC) 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 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 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 than “it would be inappropriate to pay a distribution to shareholders aRead More – Source

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