Hochschild on track to reach revised full-year production guidance

(Sharecast News) - Hochschild Mining said in an update on Wednesday that it remains on course to meet its revised 2025 production guidance, supported by steady progress at its Mara Rosa gold mine in Brazil and continued strong output from its Inmaculada and San Jose operations in South America. Attributable production in the third quarter totalled 70,308 gold equivalent ounces, or 5.8 million silver equivalent ounces, bringing the year-to-date figure to 231,905 gold equivalent ounces.

The FTSE 250 company reaffirmed its full-year guidance of between 291,000 and 319,000 gold equivalent ounces, with all-in sustaining costs expected between $1,980 and $2,080 per gold equivalent ounce.

"We remain on track to achieve our revised 2025 production targets," said chief executive Eduardo Landin.

"At Mara Rosa, the optimisation process is progressing well, with improvements to the tailings filter processes and mining activities meeting expectations and setting a solid foundation for 2026.

"We have also recently welcomed Cassio Diedrich as our new COO and made a number of other appointments to strengthen our local leadership team.

"We anticipate cash flow to increase in the fourth quarter as output from Mara Rosa gradually ramps up, supported by strong metal prices and a robust period expected at the Inmaculada and San Jose mines."

Inmaculada produced 33,856 ounces of gold and 1.3 million ounces of silver during the quarter, equivalent to 49,892 gold equivalent ounces.

The mine's year-to-date output of 156,088 gold equivalent ounces keeps it on track to deliver its annual target of 199,000-209,000 ounces.

At San Jose, where Hochschild holds a 51% stake, production rose slightly quarter on quarter to one million ounces of silver and 19,681 ounces of gold, equivalent to 2.6 million silver equivalent ounces.

Output at Mara Rosa reached 4,474 ounces of gold following a four-week suspension earlier in the year, with mining volumes steadily improving to record levels in October.

Hochschild said operational performance at the site continues to improve as its turnaround plan advanced and management changes took effect.

The group's average realised prices in the quarter were $3,195 per ounce for gold and $42.40 per ounce for silver, compared with $2,422 and $29.80 respectively a year earlier.

Hochschild ended the quarter with total cash of about $92m, down from $110m in June, and net debt of $246m, reflecting temporary working capital increases in Argentina, a $13m buyback of the Monte do Carmo streaming agreement from Sprott, and a $5m interim dividend payment.

The company said its net debt-to-EBITDA ratio was about 0.5 times.

ESG performance continued to improve, with a lost time injury frequency rate of 1.19, recycled waste up to 85.9%, and solar power now supplying all energy requirements at Mara Rosa.

San Jose has also fully transitioned to renewable energy.

Hochschild said it achieved an ECO Score of 5.61 out of 6, up from 5.58 in 2024, and reported that local workers now make up nearly two-thirds of its total workforce.

At 0836 BST, shares in Hochschild Mining were up 1.88% at 369p.

Reporting by Josh White for Sharecast.com.