Hochschild riding out Immaculada delays as production goes down

(Alliance News) - Hochschild Mining PLC on Tuesday said production in its recent quarter and half year was down compared to last year, but that progress on its mining operations remains promising.

The London-based silver and gold mining company, which has operations in North and South America, said attributable group production for the second quarter that ended June 30 was 2.4 million ounces of silver, up 16% from 2.1 million in the first quarter but down 9.7% from 2.6 million for the second quarter in 2022.

Gold production meanwhile increased 9.8% to 43,620 ounces from 39,730 in the first quarter, but decreased 11% from 49,130 in the previous year.

For the whole first half of 2023, attributable silver production decreased 12% to 4.4 million ounces from 5.1 million the previous year, while gold production decreased 14% to 83,360 ounces from 96,360.

Hochschild said production at its flagship Immaculada project, in the Ayacucho region of Peru, was temporarily impacted by ongoing delays to its modified environmental impact assessment from the National Service of Environmental Certification for Sustainable Investments, or SENACE. Brownfield exploration is expected to start in the second half of 2023, assuming the MEIA is approved by then.

Chief Executive Officer Ignacio Bustamante said Hochschild was "continuing to work with SENACE on its final review, and therefore will update our production and cost guidance for 2023 following completion of the process".

Hochschild also said its open pit Mara Rosa gold project, in Goias state, Brazil, is 88% complete and is advancing on schedule and within budget. The company expects to start first production in the first half of 2024.

"After a stronger second quarter, we are looking forward to production increasing throughout the remainder of 2023," Bustamante commented.

Total cash at June 30 was approximately USD94 million, down from USD103 million on March 31, with a net debt position of around USD227 million, up from USD218 million.

Despite the fall in production, Hochschild's shares were up 2.5% at 75.05 pence in London on Tuesday.

By Emma Curzon, Alliance News reporter

Comments and questions to [e-mail]

Copyright 2023 Alliance News Ltd. All Rights Reserved.