REG - Hochschild MiningPLC - Q2 2025 Production Report

Hochschild MiningAnnouncement

Wed 07:00

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RNS Number : 1364S  Hochschild Mining PLC  23 July 2025

 

_____________________________________________________________________________________

23 July 2025

 

Production Report for the 6 months ended 30 June 2025

 

 

Eduardo Landin, Chief Executive Officer commented:

"During the second quarter, we maintained a solid operational performance at
both our Inmaculada and San Jose mines, generating robust operating cashflow
benefiting from continued strength in precious‑metal markets. As previously
disclosed, we initiated a thorough review of the Mara Rosa operation in Brazil
which remains ongoing and includes a temporary suspension of the plant to
improve processes, perform essential maintenance work and repairs to the
mechanical filters. We currently expect to report a full update of our
progress and revised guidance for 2025 at our interim results in late August."

 

Operational highlights

 § Q2 2025 attributable production(( 1 ))
 o  57,645 ounces of gold
 o  2.0 million ounces of silver
 o  81,656 gold equivalent ounces
 o  6.8 million silver equivalent ounces
 § H1 2025 attributable production
 o  115,666 ounces of gold
 o  3.8 million ounces of silver
 o  161,597 gold equivalent ounces
 o  13.4 million silver equivalent ounces
 § Mara Rosa mine review
 o  Temporary plant suspension remains ongoing
 o  Mechanical filter repairs currently being carried out by manufacturer
 o  Mining operations continuing as planned
 o  New Brazil country manager appointed
 o  Full update expected at H1 2025 results

 

Project & Exploration highlights

 § Development work continues at the Monte Do Carmo project
 § First results from 2025 brownfield drilling campaign

 

ESG highlights

 § Hochschild joins the United Nations Global Compact
 § Lost Time Injury Frequency Rate of 1.08 (FY 2024: 1.25)(( 2 ))
 § Accident Severity Index of 274 (FY 2024: 365)(( 3 ))
 § Water Consumption of 135lt/person/day (FY 2024: 138lt/person/day)
 § Domestic waste generation of 0.83/person/day (FY 2024: 0.93kg/person/day)
 § ECO score of 5.57 out of 6 (FY 2024: 5.58)(( 4 ))

 

Financial position

 § Total cash of approximately $110 million as at 30 June 2025 ($97 million as
 at 31 December 2024)
 § Reduced net debt to approximately $203 million as at 30 June 2025 ($216
 million as at 31 December 2024) despite payment of $10 million final dividend
 and buyback of $13 million of Monte do Carmo streaming agreement from Sprott
 § Current Net Debt/LTM EBITDA of approximately 0.43x as at 30 June 2025

_______________________________________________________________________________________

 

A conference call will be held at 2.30pm (London time) on Wednesday 23 July
2025 for analysts and investors.

Dial in details as follows:

International Dial in: +44 330 551 0200;

US Local: +1 786 697 3501

Canada Toll Free: +1 866 378 3566

Password: Hochschild Mining Q2

Please dial into the call approximately ten minutes before the 2.30pm start
time.

A recording of the conference call will be available on demand on the
Company's website: www.hochschildmining.com (http://www.hochschildmining.com)

________________________________________________________________________________________

 

Overview

In Q2 2025, Hochschild delivered attributable production of 81,656 gold
equivalent ounces or 6.8 million silver equivalent ounces with another solid
performance at Inmaculada offset by the previously-announced lower production
at Mara Rosa in Brazil. In the first half of 2025, Hochschild produced 161,597
gold equivalent ounces or 13.4 million silver equivalent ounces (on an
attributable basis). The Company is on track to meet its 2025 attributable
production targets at the Inmaculada and San Jose mines with guidance
currently suspended at Mara Rosa due to the current plant stoppage.

 

The Company's overall all-in sustaining cost guidance for 2025 is currently
suspended due to the temporary suspension at Mara Rosa. Revised guidance is
expected to be communicated at the Interim Results in late August.

 

TOTAL GROUP PRODUCTION

                                Q2 2025  Q1 2025  Q2 2024  H1 2025  H1 2024
 Silver production (koz)        2,448    2,177    2,589    4,624    5,016
 Gold production (koz)          66.78    64.96    66.37    131.74   120.16
 Total silver equivalent (koz)  7,990    7,568    8,097    15,559   14,989
 Total gold equivalent (koz)    96.27    91.18    97.56    187.45   180.59
 Silver sold (koz)              2,442    2,177    2,669    4,618    5,114
 Gold sold (koz)                70.11    60.95    66.06    131.06   118.33

Total production includes 100% of all production, including production
attributable to Hochschild's joint venture partner at San Jose.

 

ATTRIBUTABLE GROUP PRODUCTION

 

                          Q2 2025  Q1 2025  Q2 2024  H1 2025  H1 2024
 Silver production (koz)  1,993    1,819    2,093    3,812    4,070
 Gold production (koz)    57.64    58.02    57.81    115.67   103.75
 Silver equivalent (koz)  6,777    6,635    6,892    13,413   12,682
 Gold equivalent (koz)    81.66    79.94    83.03    161.60   152.79

Attributable production includes 100% of all production from Inmaculada and
Mara Rosa and 51% from San Jose.

 

Production

Inmaculada

 Product                          Q2 2025                        Q1 2025                 Q2 2024                   H1 2025  H1 2024
 Ore production (tonnes treated)         339,107                 333,613                 274,750                   672,720  537,774
 Average grade silver (g/t)                 155                  152                     198                       153      190
 Average grade gold (g/t)                      3.48              3.46                    4.29                      3.47     4.25
 Silver produced (koz)                    1,517                  1,444                             1,578           2,961    3,086
 Gold produced (koz)                          35.74                       34.78                   35.62            70.52    72.32
 Silver equivalent (koz)          4,483                          4,331                   4,534                     8,814    9,089
 Gold equivalent (koz)            54.02                          52.18                   54.63                     106.20   109.50
 Silver sold (koz)                1,511                          1,440                   1,645                     2,951    3,032
 Gold sold (koz)                  36.08                          35.12                   37.18                     71.19    71.19

 

Inmaculada's second quarter production was 35,740 ounces of gold and 1.5
million ounces of silver which amounts to a gold equivalent output of 54,017
ounces, with grades and recoveries in the period better-than-plan. Overall, in
the first half of 2025, Inmaculada produced 106,197 gold equivalent ounces (H1
2024: 109,507 ounces), in line with the first half of 2024 and slightly higher
than expectations due to higher tonnage.

 

 

San Jose (the Company has a 51% interest in San Jose)

 

 Product                          Q2 2025                       Q1 2025                 Q2 2024               H1 2025  H1 2024
 Ore production (tonnes treated)  181,612                       152,950                 143,333               334,562  268,853
 Average grade silver (g/t)       189                           181                     252                   185      255
 Average grade gold (g/t)         3.86                          3.53                    4.38                  3.71     4.47
 Silver produced (koz)            928                           729                     1,011                 1,657    1,929
 Gold produced (koz)              18.65                         14.16                   17.46                 32.80    33.49
 Silver equivalent (koz)                      2,475                      1,904                  2,460         4,380    4,709
 Gold equivalent (koz)                       29.82                       22.95                  29.64         52.77    56.74
 Silver sold (koz)                927                           734                     1,022                 1,661    2,079
 Gold sold (koz)                  17.99                         13.71                   17.04                 31.71    35.29

 

Q2 production at San Jose was 0.9 million ounces of silver and 18,647 ounces
of gold which is 2.5 million silver equivalent ounces with
higher-than-forecast tonnage offset by slightly lower-than-expected grades.
This brings the total for the first half of the year to 4.4 million silver
equivalent ounces (H1 2024: 4.7 million ounces).

 

Mara Rosa

 Product                          Q2 2025                       Q1 2025                 Q2 2024                             H1 2025  H1 2024
 Ore production (tonnes treated)  404,216                       584,421                 466,552                             988,637  552,744
 Average grade silver (g/t)       0.37                          -                       -                                   0.32     -
 Average grade gold (g/t)         1.03                          0.89                    1.32                                0.95     1.28
 Silver produced (koz)            2.85                          3                       -                                   6        -
 Gold produced (koz)              12.40                                  16.02                    13.29                     28.42    14.35
 Silver equivalent (koz)                      1,032                      1,333                   1,103                      2,365    1,191
 Gold equivalent (koz)                        12.43                      16.06                         13.29                28.49    14.35
 Silver sold (koz)                4                             3                       -                                   6        -
 Gold sold (koz)                  16.04                         12.12                   11.84                               28.16    11.84

 

The Company disclosed after the first quarter that operations at Mara Rosa
were adversely affected by heavier-than-usual seasonal rainfall in the first
few months of the year, as well as contractor performance issues. These
conditions limited access to ore, particularly the higher-grade zones within
the pit, and compounded ongoing challenges with the filtering processes. As a
result, efforts to recover from delays in mine waste removal carried over from
the previous year were further prolonged.

 

To rectify these ongoing issues, the Company's CEO, Eduardo Landin,
temporarily assumed operational responsibilities and initiated a comprehensive
review of all mining, processing and disposal activities at Mara Rosa to
identify constraints to the mine's output. As part of this review, a temporary
suspension of the processing plant commenced on 23 June to carry out
maintenance activities and mechanical filter repairs with mining operations
continuing as planned.

 

The manufacturer, Andritz, is currently working with the Company to optimise
the filtering plant, with the current expectation being a phased ramp-up in
its operation during H2 2025 to achieve the required performance levels. The
team is also considering installing a tailings thickener to improve the feed
into the filtration plant.

 

Hochschild has also recently appointed Ediney Drummond as Country Manager of
Hochschild Brazil. Mr Drummond brings over 20 years of experience in the
mining sector and previously served as President of Lundin Mining Brazil and
currently holds the position of Vice President of the Board of the Brazilian
Mining Institute.

 

Production of gold for the half was 28,488 ounces (H1 2024: 14,354 ounces)
with revised guidance for the year expected to be disclosed by the interim
results on 27 August 2025.

 

Average realisable prices and sales

Average realisable precious metal prices in Q2 2025 (which are reported before
the deduction of commercial discounts) were $2,940/ounce for gold and
$34.4/ounce for silver (Q2 2024: $2,291/ounce for gold and $30.2/ounce for
silver). For H1 2025, average realisable precious metal prices were
$2,832/ounce for gold and $33.8/ounce for silver (H1 2024: $2,210/ounce for
gold and $27.0/ounce for silver).

 

Advanced Project: Monte Do Carmo

Work has continued on the Monte Do Carmo project in the second quarter and
included:

§ Evaluation of the use of water harvesting for the project

§ Review of proposed filtration system

§ Validation of pit engineering study

 

Brownfield exploration

Inmaculada

During the second quarter of the year, the team carried out a further 8,392m
of potential drilling in the Anomalia 1, Anomalia 4, Martha, Mariana and San
Martin structures and 2,024m of resource drilling in the Mariana vein.

 

 Vein        Results (potential)
 Anomalia 1  IMM25-422: 1.6m @ 2.2g/t Au & 94g/t Ag
 Anomalia 4  IMM25-422: 1.1m @ 1.5g/t Au & 210g/t Ag
 Martha      IMM25-423A: 0.9m @ 2.3g/t Au & 53g/t Ag
 Mariana     IMM25-282: 1.2m @ 0.9g/t Au & 100g/t Ag
 San Martin  IMS25-281A: 0.9m @ 0.3g/t Au & 99g/t Ag

             IMS25-290: 1.4m @ 0.5g/t Au & 15g/t Ag

 

 Vein     Results (resources)
 Mariana  IMM25-286: 1.7m @ 1.4g/t Au & 55g/t Ag

          IMM25-288: 1.6m @ 2.2g/t Au & 113g/t Ag

          IMM25-293: 0.9m @ 0.7g/t Au & 89g/t Ag

 

During the third quarter, the Company expects to carry out 1,800m of potential
drill holes and as well as 5,200m of resource drilling in the Melisa vein and
drilling deeper into the Angela vein.

 

San Jose

During the second quarter, the team carried out 2,827m of potential drilling
in the Escondida, Agostina, Isabel, Isabel 2, Isabel North, Pilar SE, Emilia,
Luli, and Tonga veins

 

 Vein       Results (potential)
 Escondida  SJD-2979: 1.7m @ 1.1g/t Au & 30g/t Ag

            SJD-3003: 0.9m @ 30.5g/t Au & 153g/t Ag
 Agostina   SJD-2469: 2.5m @ 3.8g/t Au & 182g/t Ag
 Isabel     SJD-2969: 1.7m @ 2.1g/t Au & 181g/t Ag

            SJD-2972: 0.5m @ 0.2g/t Au & 18g/t Ag
 Isabel I   SJD-2970: 0.6m @ 2.1g/t Au & 112g/t Ag

            SJD-2972: 2.4m @ 1.1g/t Au & 46g/t Ag

            SJD-2973: 0.9m @ 0.8g/t Au & 70g/t Ag
 Isabel II  SJD-2973: 0.6m @ 2.2g/t Au & 205g/t Ag
 Isabel N   SJD-2972: 1.5m @ 2.5g/t Au & 109g/t Ag

            SJD-2972: 4.2m @ 1.3g/t Au & 121g/t Ag

 

During the third quarter, the Company will finish potential drilling in the
Isabel and Escondida veins and start work on drilling for potential in
Saavedra West and in the Betania and Florencia breccias.

 

Mara Rosa

Within the district, the team drilled 3,009m of potential in Pastinho North,
Grid A and the Jatoba areas intercepting low grade narrow structures.

 

 Vein         Results (resources)
 Posse        25POSP_019A: 43.3m @ 0.5g/t Au

              25POSP_020: 40.3m @ 0.5g/t Au

              25POSP_022: 15.7m @ 0.4g/t Au

              25POSP_023: 5.8m @ 0.4g/t Au

              25POSP_024: 22.2m @ 0.3g/t Au
 Posse-Passo  25POSP_030: 40.3m @ 0.5g/t Au

              25POSP_030: 0.4m @ 1.9g/t Au

              25POSP_020: 0.6m @ 6.7g/t Au

              25POSP_032: 55.3m @ 0.3g/t Au

              25POSP_031: 46.6m @ 0.3g/t Au

              25POSP_033: 30.2m @ 0.3g/t Au

 

During the third quarter the team at Mara Rosa will continue resource drilling
in Posse and also potential drilling in Morro Redondo.

 

Monte Do Carmo

During the period, 3,099m of potential drilling was executed in the Dourado,
Cigando, Adebaldo, Serra Alta and Gogo targets along with 1,007m of resource
drilling in Serra Alta and Gogo.

 

 Vein        Results (potential)
 Serra Alta  25SAP_002: 0.8m @ 0.6g/t Au
 Gogo        25GO_002: 2.2m @ 1.4g/t Au

             25GO_002: 6.5m @ 0.3g/t Au

             25GO_002: 2.1m @ 5.0g/t Au

             25GO_002: 0.6m @ 0.9g/t Au

             25GO_002: 0.7m @ 0.5g/t Au
 Dourado     25DOU_001: 0.8m @ 10.4g/t Au
 Cigano      25CIG_001: 0.6m @ 0.7g/t Au

             25CIG_001: 0.4m @ 0.7g/t Au

             25CIG_001: 0.4m @ 1.2g/t Au
 Adebaldo    25ADE_001: 6.7m @ 0.2g/t Au

             25ADE_001: 3.6m @ 0.2g/t Au

             25ADE_001: 0.7m @ 1.2g/t Au

             25ADE_001: 1.1m @ 0.7g/t Au

 

 Vein  Results (resources)
 Gogo  25GO_004: 1.9m @ 0.5g/t Au

       25GO_004: 1.4m @ 0.5g/t Au

       25GO_004: 1.0m @ 0.3g/t Au

 

During Q3, the team will continue work in Serra Alta and inferred drilling in
the Boqueirao target.

 

ESG

As part of its continued commitment to ESG, the Company is pleased to disclose
that it has joined the United Nations Global Compact, the world's largest
corporate sustainability initiative. With over 24,000 companies participating
in 160 countries, the United Nations Global Compact is a multi-stakeholder
platform for the development, implementation, and disclosure of responsible
business practices.

 

As a signatory, Hochschild commits to:

§  integrating the United Nations' ten principles on human rights, labour,
environment, and anti-corruption into the Company's overall ESG approach; and

§  reporting the Company's annual progress towards the Sustainable
Development Goals.

 

Financial position

Total cash was approximately $110 million as at 30 June 2025 resulting in a
net debt position of approximately $203 million. Net debt in Q2 was reduced
through solid operating cashflow resulting from high metal prices offset by
the payment of the full year dividend on 18 June 2025.

 

In addition, in June, the Company exercised its option to buy back 50% of its
existing streaming agreement on the Monte do Carmo project from Sprott Private
Resource Streaming and Royalty Corp for $13 million.

 

____________________________________________________________________________________

 

Enquiries:

 

Hochschild Mining PLC

Charles Gordon
 
 
                                               +44
(0)20 3709 3264

Head of Investor Relations

 

Hudson Sandler

Charlie Jack
 
 
                                                  +44
(0)20 7796 4133

Public Relations

_____________________________________________________________________________________

 

 

About Hochschild Mining PLC

Hochschild Mining PLC is a leading precious metals company listed on
the London Stock Exchange (HOCM.L / HOC LN) and crosstrades on the OTCQX
Best Market in the U.S. (HCHDF), with a primary focus on the exploration,
mining, processing and sale of silver and gold. Hochschild has over fifty
years' experience in the mining of precious metal epithermal vein deposits and
operates two underground epithermal vein mines: Inmaculada, located in
southern Peru; and San Jose in southern Argentina, and an open pit gold mine,
Mara Rosa, located in the state of Goiás, Brazil. Hochschild also has
numerous long-term projects throughout the Americas.

_____________________________________________________________________________________

 

Forward looking statements

This announcement may contain forward looking statements. By their nature,
forward looking statements involve risks and uncertainties because they relate
to events and depend on circumstances that will or may occur in the future.
Actual results, performance or achievements of Hochschild Mining PLC may, for
various reasons, be materially different from any future results, performance
or achievements expressed or implied by such forward looking statements.

 

The forward looking statements reflect knowledge and information available at
the date of preparation of this announcement. Except as required by the
Listing Rules and applicable law, the Board of Hochschild Mining PLC does not
undertake any obligation to update or change any forward looking statements to
reflect events occurring after the date of this announcement. Nothing in this
announcement should be construed as a profit forecast.

 

Note

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(Regulation (EU) No.596/2014). Upon the publication of this announcement via a
Regulatory Information Service, this inside information is now considered to
be in the public domain.

 

LEI: 549300JK10TVQ3CCJQ89

 

- ends -

 1 All equivalent figures assume a gold/silver ratio of 83x.

 2 Calculated as total number of accidents per million labour hours

(( 3 ))Calculated as total number of days lost per million labour hours.

 4 The ECO Score is an internally designed Key Performance Indicator measuring
environmental performance in one number and encompassing numerous fronts
including management of waste water, outcome of regulatory inspections and
sound environmental practices relating to water consumption and the recycling
of materials.

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