Hochschild reports strongest quarter of the year to date

(Sharecast News) - Precious metals specialist Hochschild Mining reported its strongest quarter for the year-to-date on Wednesday, producing 49,999 ounces of gold, 2.6 million ounces of silver, 81,619 gold equivalent ounces, and 6.8 million silver equivalent ounces. The London-listed company said its nine-month operational performance was equally noteworthy, with a total production of 133,356 ounces of gold, 7.1 million ounces of silver, 218,498 gold equivalent ounces, and 18.1 million silver equivalent ounces.

It said it remained on track to deliver its revised full-year attributable production target of between 289,000 and 303,000 gold equivalent ounces, equivalent to 24.0 million to 25.0 million silver equivalent ounces.

Furthermore, the firm maintained its commitment to cost efficiency, with 2023 all-in sustaining costs expected to meet the revised guidance of $1,490 to $1,580 per gold equivalent ounce and $18.0 to $19.0 per silver equivalent ounce.

In terms of project development, Hochschild's Mara Rosa project in Brazil was progressing as planned, the board said, with construction at an impressive 98% completion rate and remaining on budget.

The company's financial position remained strong, with total cash amounting to $114m as of 30 September, compared to $94m at the end of June.

Net debt had increased slightly to around $261m, from $227m on 30 June, with the current net debt-to-last 12 months EBITDA ratio standing at 1.12x as of 30 September.

"Hochschild Mining's third quarter was operationally our strongest yet in 2023 and we expect to meet both our revised full year production and our cost targets," said chief executive officer Eduardo Landin.

"In addition, during the period, Inmaculada's Modified Environmental Impact Assessment was approved by the Government of Peru for an additional 20 years.

"Finally, we have made more strong progress at our Mara Rosa project in Brazil which is now at 98% completion, and we continue to be on schedule and on budget and expecting first production in H1 2024."

At 0831 BST, shares in Hochschild Mining were up 1.4% at 86.09p.

Reporting by Josh White for Sharecast.com.