Hochschild Mining Stays on Track as Mara Rosa Turnaround Gains Momentum

Key Points

• Hochschild maintained its full-year outlook after producing more than 74,000 gold equivalent ounces in the third quarter and nearly 226,000 ounces in the first nine months. Production guidance remains 300,000–328,000 ounces, with all-in sustaining cost guidance at $2,380–$2,500 per ounce.
• The Mara Rosa turnaround is gaining momentum: quarterly production increased to over 17,000 ounces as the mining contractor reached planned capacity and processing improvements eased operational constraints. The company retained 2026 guidance of 67,000–80,000 ounces and is targeting 80,000–85,000 ounces annually from 2027.
• Hochschild ended September with nearly $350 million in cash and about $91 million in net cash, while advancing the Monte do Carmo project toward a December final investment decision. The Brazil project is being designed to produce 80,000–90,000 gold ounces annually.

Hochschild Mining LON: HOC said it remained on track to meet its full-year production and cost guidance after reporting what Chief Executive Officer Eduardo Landín described as a strong operational performance in the third quarter of 2026.

Attributable production totaled just over 74,000 gold equivalent ounces in the quarter, bringing production for the first nine months of the year to almost 226,000 gold equivalent ounces. The company maintained its full-year production outlook of 300,000 to 328,000 gold equivalent ounces and its revised all-in sustaining cost guidance of $2,380 to $2,500 per gold equivalent ounce.

Mara Rosa turnaround advances

Landín highlighted progress at the Mara Rosa operation in Brazil, where quarterly production rose to more than 17,000 gold equivalent ounces from approximately 14,600 ounces in the second quarter. September output exceeded 8,000 ounces, making it the mine’s strongest month of the year to date.

The company said its new mining contractor completed its ramp-up to planned capacity during the period, with material movement reaching nameplate levels toward the end of the quarter. Improvements to haul roads, access routes and pushback activities have also enabled access to higher-grade parts of the mine, according to Landín.

At the processing plant, a new thickener was stabilized and performed above expectations, the company said. Hochschild said the equipment reduced filtration cycle times, restored continuity in tailings disposal and resolved water-management constraints experienced during the first half of the year.

Hochschild maintained Mara Rosa’s 2026 production guidance of 67,000 to 80,000 gold equivalent ounces. Looking ahead, Landín said the company would like the mine to produce between 80,000 and 85,000 ounces annually in 2027, although the company has not yet completed its budget process.

Chief Financial Officer Eduardo Noriega said Mara Rosa’s all-in sustaining cost next year could improve from 2026 levels, when the company implemented measures to restore full operational capacity. He added that industry inflation remains a factor and that Hochschild is pursuing initiatives intended to mitigate cost pressures.

Inmaculada steady; San Jose grades expected to recover

Inmaculada produced just over 25,000 gold equivalent ounces in the third quarter, roughly matching second-quarter output. Tonnage was slightly ahead of expectations, though lower gold grades offset that benefit. The mine remains on track for its full-year guidance of 174,000 to 185,000 equivalent ounces.

San Jose in Argentina produced approximately 23,000 gold equivalent ounces on a 100% basis, below the second quarter as mining focused on border areas of the veins, resulting in lower tonnage and silver grades. Landín said the third-quarter weakness was “50/50” attributable to weather and grades.

The company expects weather conditions to improve in the fourth quarter and anticipates the plant will operate at nameplate capacity. It is also conducting infill drilling to improve certainty around grades as it expects to achieve planned grades needed to meet production guidance.

Growth projects and balance sheet

Hochschild said engineering, studies and permitting work at the Monte do Carmo project in Brazil continued to advance, alongside procurement of critical long-lead items. The company remains on track to make a final investment decision in December.

Landín said Monte do Carmo is being designed for annual gold production of 80,000 to 90,000 ounces. He did not provide a capital-expenditure estimate, saying engineering work was still being finalized. Construction is expected to take around two years, he said.

The company has incorporated lessons from Mara Rosa into Monte do Carmo’s engineering and execution plan, Landín said, including replacing the crushing area with a SAG mill. Hochschild also plans to use an EPCM team for the project.

At the Royropata project in Peru, Hochschild submitted a modified environmental impact assessment to the Peruvian government in August. The company also reported continued brownfield exploration activity at Inmaculada, San Jose, Mara Rosa and Monte do Carmo.

As of the end of September, Hochschild had almost $350 million of cash and a net cash position of about $91 million, which Landín said reflected strong operational cash generation.

Addressing Brazil’s presidential election, Landín said Hochschild does not expect an impact on its operations because it works principally with state governments in Goiás and Tocantins. He said the company has maintained strong relationships with state authorities and views both states as supportive of mining.

About Hochschild Mining (LON:HOC)

We are a leading underground precious metals producer focusing on high grade silver and gold deposits, with over 50 years' operating experience in the Americas. We currently operate three underground mines, two located in southern Peru and one in southern Argentina. All of our underground operations are epithermal vein mines and the principal mining method used is cut and fill. The ore at our operations is processed into silver-gold concentrate or dore. Hochschild Mining plc is listed on the Main Market of the London Stock Exchange and is headquartered in Lima, Peru.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.