Hochschild Mining LON: HOC reported first-quarter 2026 production of nearly 76,000 gold equivalent ounces, supported by what CEO Eduardo Landin described as a “solid performance” at Inmaculada in Peru and a rising contribution from the Mara Rosa operation in Brazil.
Landin said the company remains on track to meet its 2026 production and cost guidance of 300,000 to 328,000 gold equivalent ounces at an all-in sustaining cost of $2,157 to $2,320 per gold equivalent ounce.
Q1 production across the portfolio
Inmaculada delivered just over 48,000 gold equivalent ounces in the quarter, which Landin said was in line with plan. He noted that slightly higher tonnage was partially offset by lower grades, reflecting higher commodity prices during the quarter and a resulting reduction in cut-off grades compared with the first quarter of 2025.
At San José in Argentina, production totaled just under 27,000 gold equivalent ounces. Landin said tonnage was higher year over year, while silver grades were “slightly lower,” which he attributed to both normal variability when mining in vein border zones and the impact of higher prices on cut-off grades. He said San José remains on track to achieve its annual target.
Mara Rosa produced 13,500 gold equivalent ounces in the quarter, which Landin said was only slightly below expectations. He attributed the variance mainly to equipment availability and the impact of the rainy season on tonnage and grades.
Mara Rosa turnaround and tailings thickener timeline
Landin said the Mara Rosa turnaround program continued to make “steady progress,” highlighting improvements in plant performance, stronger maintenance execution, and higher daily run rates across the circuit. He also said mining contractor replacements were 75% mobilized by the end of March.
On the new tailings thickener, Landin said the project remained on schedule, with all major components on-site and field work and pre-assembly underway. He expects commissioning to begin at the end of April, with operations starting by the end of May 2026.
Growth projects: Monte do Carmo and Royropata
Landin said work at the Monte do Carmo project advanced during the quarter across detailed engineering, equipment selection, permitting and legal work, and water and environmental studies. The company also completed geotechnical and geomechanical studies, continued to build out its project team, and progressed procurement packages including power, camps, earthworks, and pre-stripping contracts.
Management continues to expect Monte do Carmo to be submitted to the board for final approval in the third quarter of 2026. In response to a question from RBC Capital Markets’ Marina Calero, Landin said the company aims to finalize studies during the second quarter and present the project to the board for a construction decision. If approved, he said Hochschild expects to start construction “right away,” including pre-stripping and earth movements ahead of the December 2026 rainy season. Landin added that the initial schedule he has seen is 24 months “from July onwards,” and that initial production could begin in the third quarter of 2028.
On Royropata in Peru, Landin said the company is waiting for the results of Peru’s elections before delivering documentation to new authorities to begin evaluation of the project’s environmental impact study. Later in the call, he said Hochschild expects to present the document “right now,” and that if the government takes about a year to evaluate it, the company believes a new permit could be received around August 2027.
Landin described Royropata as a key source of “optionality,” citing a deposit of “3 million gold equivalent ounces,” mostly silver, with high grades and good vein width. He said that after permit receipt, additional permits and development would follow, with production potentially starting around the same time as Monte do Carmo.
Balance sheet, Argentina cash, and costs
CFO Eduardo Noriega said the company ended the quarter with cash and cash equivalents of around $412 million, giving a net cash position of approximately $95 million—an improvement from a $23 million net debt position at the end of 2025, as cited by Landin.
Landin noted that the cash balance includes $230 million held in Argentina, with $84 million invested in financial instruments to mitigate inflation and devaluation risk. He also said $35 million is held in cash and gold to support development of the Volcan project.
In the Q&A, Noriega said that of the $230 million held in Argentina, 49% belongs to joint venture partner McEwen. He said there are plans to “deal in that cash out” to fund projects and reduce corporate debt, and that the company is evaluating mechanisms to execute. He later added that distributing the cash to San José shareholders—Hochschild Mining and McEwen Mining—is a key task, while continuing investments either in Argentina or other jurisdictions.
On costs, Noriega said the company is maintaining its all-in sustaining cost guidance despite higher gold and silver prices, rising oil prices, and inflationary pressures, adding that Hochschild is pursuing efficiency projects and other initiatives to mitigate vendor pressure.
Noriega also clarified tax timing. He said Peru tax payments for 2025 were made in March, while Argentina’s final 2025 tax payment is due in the second quarter and totals around $50 million pending.
Peru election developments and San José outlook
Landin addressed questions about Peru’s election, stating that the first-round count was around 94% at the time of the call and that Keiko Fujimori would advance to the second round. He said the margin between left-wing candidate Sánchez and right-wing candidate Rafael López Aliaga was about 13,000 votes nationwide, and noted reports that the Lima election could potentially be repeated due to polling issues.
When asked about mining policy positions, Landin said López Aliaga and Fujimori are broadly similar and that he believes López Aliaga would respect current laws and the constitution. He contrasted that with Sánchez, whom he described as “very left-wing,” saying Sánchez has spoken about nationalizing companies across industries, though Landin questioned whether such policies would be feasible given Peru’s reliance on mining exports.
At San José, Landin said grades are influenced by cut-off grades and natural variability in border zones of mineralization, but he expects sufficient grades to meet guidance of around 60,000 to 65,000 gold equivalent ounces for the year attributable to Hochschild. Landin also said San José currently has “something like three years life of mine,” while Noriega said the operation has historically maintained three to four years of life and has been able to extend mine life annually through ongoing exploration.
In closing remarks, Landin said the company delivered planned production in the first quarter and is advancing what he called its two key growth opportunities: Monte do Carmo and Royropata. He said Monte do Carmo could become a second Brazilian operation producing around 80,000 to 90,000 ounces per year, while describing Royropata as Hochschild’s “new flagship.” Landin said the company aims to add production from 2028 onward as these projects move into the portfolio.
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.
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