REG - Hochschild MiningPLC - Q1 2025 Production Report
23/04/2025 07:00
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RNS Number : 7496F Hochschild Mining PLC 23 April 2025
_____________________________________________________________________________________
23 April 2025
Production Report for the 3 months ended 31 March 2025
Eduardo Landin, Chief Executive Officer commented:
"Traditionally, the first quarter represents our lowest production period and
2025 has been in line with this. Pleasingly, Inmaculada has delivered a solid
performance and we are seeing encouraging developments in Argentina, where the
easing of exchange controls and the resulting currency weakness are expected
to improve San Jose's cost position in the long-term.
However, at the Mara Rosa operation in Brazil, performance has been
temporarily impacted by adverse weather conditions, with heavier-than-usual
seasonal rains continuing into April, along with carry-over delays in waste
removal from the previous year. Additionally, we have encountered operational
challenges related to our mining contractor, in an environment of increasing
pressure on the availability of skilled labour, partly driven by elevated
metal prices. In response, we have implemented a series of measures including
the expansion of our waste removal fleet and, during the second quarter, we
will accelerate waste removal. Production in Q2 is expected to remain broadly
in line with Q1 but we remain confident in a recovery in production during the
second half of the year and reaffirm our full-year production guidance"
Operational highlights
§ Q1 2025 attributable production(( 1 ))
o 58,021 ounces of gold
o 1.8 million ounces of silver
o 79,941 gold equivalent ounces
o 6.6 million silver equivalent ounces
§ 2025 guidance maintained:
o Production of 350,000-378,000 gold equivalent ounces
o All-in sustaining costs of $1,587-1,687 per gold equivalent ounce
Project & Exploration highlights
§ Work at Monte Do Carmo project commenced
o Installation license granted
o 19% of detailed engineering complete
§ Sale of Arcata and Azuca projects completed, streamlining the portfolio to
focus on core assets
§ 2025 brownfield drilling campaign commenced at all sites - results due from
Q2 2025
ESG highlights
§ Lost Time Injury Frequency Rate of 0.82 (FY 2024: 1.25)(( 2 ))
§ Accident Severity Index of 27 (FY 2024: 365)(( 3 ))
§ Water Consumption of 132lt/person/day (FY 2024: 138lt/person/day)
§ Domestic waste generation of 0.87kg/person/day (FY 2024: 0.93kg/person/day)
§ ECO score of 5.60 out of 6 (FY 2024: 5.58)(( 4 ))
Financial position
§ Total cash of approximately $83 million as at 31 March 2025 ($97 million as
at 31 December 2024)
§ Net debt of approximately $248 million as at 31 March 2025 ($216 million as
at 31 December 2024) mainly reflecting timing of payments related to community
agreements, performance bonuses and taxes
§ Current Net Debt/LTM EBITDA of approximately 0.6x as at 31 March 2025
_______________________________________________________________________________________
A conference call will be held at 2.30pm (London time) on Wednesday 23 April
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 Q1
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 Q1 2025, Hochschild delivered attributable production of 79,941 gold
equivalent ounces with an in-line performance from Inmaculada offset by a
lower-than-expected contribution from the Mara Rosa mine in Brazil.
The Company reiterates its overall attributable production and all-in
sustaining cost guidance for 2025 of 350,000-378,000 gold equivalent ounces
and $1,587 and $1,687 per gold equivalent ounce respectively.
TOTAL GROUP PRODUCTION
Q1 2025 Q4 2024 Q1 2024 12 mths
2024
Silver production (koz) 2,177 2,855 2,427 10,530
Gold production (koz) 64.96 82.83 53.79 281.14
Total silver equivalent (koz) 7,568 9,730 6,892 33,864
Total gold equivalent (koz) 91.18 117.23 83.03 408.00
Silver sold (koz) 2,177 2,842 2,445 10,643
Gold sold (koz) 60.95 82.94 52.18 281.46
Total production includes 100% of all production, including production
attributable to Hochschild's joint venture partner at San Jose.
ATTRIBUTABLE GROUP PRODUCTION
Q1 2025 Q4 2024 Q1 2024 12 mths
2024
Silver production (koz) 1,819 2,240 1,977 8,496
Gold production (koz) 58.02 71.27 45.94 245.01
Silver equivalent (koz) 6,635 8,155 5,790 28,832
Gold equivalent (koz) 79.94 98.25 69.76 347.37
Attributable production includes 100% of all production from Inmaculada,
Pallancata, Mara Rosa and 51% from San Jose.
Production
Inmaculada
Product Q1 2025 Q4 2024 Q1 2024 12 mths
2024
Ore production (tonnes treated) 333,613 342,014 263,024 1,197,965
Average grade silver (g/t) 152 160 181 179
Average grade gold (g/t) 3.46 3.29 4.21 3.90
Silver produced (koz) 1,444 1,589 1,509 6,368
Gold produced (koz) 34.78 33.70 36.70 143.78
Silver equivalent (koz) 4,331 4,385 4,555 18,302
Gold equivalent (koz) 52.18 52.84 54.88 220.50
Silver sold (koz) 1,440 1,583 1,387 6,342
Gold sold (koz) 35.12 33.71 34.01 143.64
Inmaculada's first quarter production was 34,780 ounces of gold and 1.4
million ounces of silver which amounts to gold equivalent output of 52,180
ounces (Q1 2024: 57,877 ounces). Slightly higher than expected tonnage in the
quarter was offset by lower gold grades although the overall result for the
period was in line with the 2025 plan and puts the mine on track to achieve
its annual target.
San Jose (the Company has a 51% interest in San Jose)
Product Q1 2025 Q4 2024 Q1 2024 12 mths
2024
Ore production (tonnes treated) 152,950 160,097 125,520 581,303
Average grade silver (g/t) 181 275 258 253
Average grade gold (g/t) 3.53 5.26 4.58 4.55
Silver produced (koz) 729 1,256 919 4,150
Gold produced (koz) 14.16 23.61 16.03 73.73
Silver equivalent (koz) 1,904 3,215 2,249 10,270
Gold equivalent (koz) 22.95 38.73 27.09 123.73
Silver sold (koz) 734 1,254 1,057 4,290
Gold sold (koz) 13.71 23.27 18.25 74.37
The first quarter at San Jose in Argentina is traditionally a shorter
operational period due to the scheduled hourly workers' holiday which was
taken during February this year. Moderately higher-than-expected tonnage in
the period was offset by lower gold grades. Production was 0.7 million ounces
of silver and 14,157 ounces of gold, which makes 22,946 gold equivalent ounces
with the mine remaining on track to achieve its annual target.
Mara Rosa
Product Q1 2025 Q4 2024 Q1 2024 12 mths
2024
Ore production (tonnes treated) 584,421 615,759 86,192 1,757,955
Average grade silver (g/t) - - - -
Average grade gold (g/t) 0.89 1.42 1.03 1.35
Silver produced (koz) 3 11 - 11
Gold produced (koz) 16.02 25.53 1.06 63.64
Silver equivalent (koz) 1,333 2,130 88 5,293
Gold equivalent (koz) 16.06 25.66 1.06 63.77
Silver sold (koz) 3 4.19 - 11
Gold sold (koz) 12.12 25.97 - 63.54
In Brazil, production for the first quarter of the year was scheduled to be
lower due to the annual rainy season. However, from December 2024,
heavier-than-expected rainfall has impacted the ability to access ore and, in
particular, the higher-grade zones within the pit. The weather conditions also
contributed to delays in waste removal. In addition, the mine has also
experienced continued performance issues with the mining contractor as well as
increased turnover in personnel due to higher metal prices. Production in the
period was 16,059 ounces of gold.
Management has initiated a programme to increase throughput, including
expanding the scale of mining operations and strengthening the drilling and
blasting processes. This also includes the expansion of our waste removal
fleet, at no additional cost, doubling capacity from 1.5 million tonnes to 3.0
million tonnes per month, supported by the addition of six CAT 777 trucks and
a Hitachi 2600 excavator to recover from the accumulated delays from the last
two quarters. Production is expected to improve in the second half of the year
after a similar level of production in the second quarter which will be a
period of stabilisation.
Average realisable prices and sales
Average realisable precious metal prices in Q1 2025 (which are reported before
the deduction of commercial discounts) were $2,708/ounce for gold and
$33.2/ounce for silver (Q1 2024: $2,106/ounce for gold and $23.6/ounce for
silver).
Advanced Project: Monte Do Carmo
Work has continued on the Monte Do Carmo project in the first quarter and
included:
§ Completion of metallurgical testwork
§ Progress on detailed engineering reaching 19% completion
§ Meetings with the Governor of the state of Tocantins
§ Meeting with Tocantins state agency to discuss workforce development plans
§ Award of the installation licence
§ Signing of contract for transmission line as well a power distribution
network to support water intake and construction infrastructure
Brownfield exploration
The 2025 brownfield exploration programme has begun at all sites during the
period with early result pending. The first drill results will be reported in
the Q2 production statement in July.
Financial position
Total cash was approximately $83 million as at 31 March 2025 resulting in a
net debt position of approximately $248 million. Net debt in Q1 was impacted
by a temporary higher level of payments associated to agreements with
communities, performance bonuses and taxes.
____________________________________________________________________________________
Enquiries:
Hochschild Mining PLC
Charles Gordon
+44 (0)20 3709 3264
Head of Investor Relations
Hudson Sandler
Charlie Jack
+44 (0)207 796
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 the average 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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