INTERNATIONAL FINANCE

International Financial Reporting

[Name of the Student]

[Name of the Institute]

Abstract

The paper aims to provide the financial analysis of Hochschild Mining. The paper discuses the financial position of the company as well as the financial ratios which clearly depicts the financial position of the company. Moreover, Costing analysis and how the company maintains its Corporate Governance are discussed. Furthermore, the corporate Governance issues and its disclosures are also critically analyzed in this research paper.

Table of Contents

Abstract1

Company Introduction3

Task 24

Financial Review of the company4

Financial Position4

Key Financial Data5

Financial Review and Summary6

Income Analysis Of The Company8

Analysis Of The Company Financial Ratios9

Pricing Summary Of The Company11

Costing Analysis of the Company12

Overall Financial Progress12

Task 113

The Concept of Corporate Governance at Hoschild Mining13

Checklist of the Company Code of Corporate Governance14

Corporate Governance disclosures17

Analysis of the Disclosures17

Audit Committee18

Conclusion19

References20

International Financial Reporting

Company Introduction

Hochschild Mining is one of the foremost companies in the field of extraction and mining. The company is engaged in the extraction industry of Gold, Silver and other ores which have a immense significance on the market these days. Co. the company has a number of extraction sites in different parts of the planet from the four sites three of them are situated in the southern part of Peru while the fourth one is located in Argentina (Hochschild Mining plc, 2012, n.d).

The company has invested the major portion of the investors' capital in the business with a view to create extensive profits (Hochschild Mining plc, 2012, n.d). The stakeholders of the company as according to the London stock exchange are pleased with the performance but they still desire some improvements and are on the view to survey new mining facilities around the planet.

Task 2

Financial Review of the company

The financial review of the company highlights some of the major facts and figures out of which its business seems to be unique and riskier, the riskiness in the mining business allows the investors and stakeholders to ask more profits (Hochschild Mining plc, 2012, n.d). The cost of operations are growing bigger in number after 2007 but even after a subsequent increase in the operating cost the company still is making handsome profits on the financial charts, as according to the Company records a EBITDA shows an increase of 43% to $553 million with an annual revenue of $1 billion. The earning power that is (EPS) increases by 72% to 65% cents and in return the board signifies the announcement of the dividend up to 20% greater as compared to the recent years

Financial Position

Incorporated: April 2006, United Kingdom

CUSIP: G4611M10

Company Auditors: Ernst & Young LLP

Legal Agents: Linklaters LLP

Transfer Agent: RegistrarsBeckenham, Kent, United Kingdom

Country: United Kingdom

Sector: Extraction of Precious Metals

Industry: Gold ores (SIC 1041)

Industry: Gold Ore Mining (NAICS 212221)

Number of Employees: 3,877 (Average Staff as of 12/31/2011)

Number of Shareholders: 616 (as of 12/31/2008)

Revenue: 987,662,000

Net Income: 168,716,000

Key Financial Data

Key Financials

(In USD as of 12/31/2011)

Income Statement

Revenue

988m

Net Income

169m

EPS - Net Income - Diluted

0.5

Revenue per Share

2.92

Balance Sheet

Total Assets

1,736m

Total Liabilities

712m

Shareholders' Equity

1,024m

Total Assets per Share

5.13

Net Assets per Share

3.03

Cash Flows

Cash from Operations

464m

Cash from Investing

-140m

Cash from Financing

-222m

Cash Flow per Share

1.3

Financial Review and ...