Hochschild Mining plunges after slashing Mara Rosa guidance

Hochschild Mining (LSE: HOC.L) shares plunged on Wednesday after the company slashed its full-year production forecast from the Mara Rosa mine by more than half, only months after a temporary suspension at the site due to weak gold output.The company now expects 35,000-45,000 ounces of gold production from the Brazilian mine this year, down from its previous forecast of 94,000-104,000 ounces.Shares of Hochschild were down 13% in London afternoon trading, giving the company a market capitalization of £1.37 billion ($1.84 billion).Mara Rosa made its first pour in February 2024. The mine, located in the state of Goias, is the company’s first Brazilian operation. Mara Rosa became a part of Hochschild’s portfolio through its C$135 million deal to buy Amarillo Gold in late 2021. The mine experienced a challenging first half of the year, with operations impacted by heavier-than-usual seasonal rainfall and contractor performance issues, CEO Eduardo Landin said in a statement. “These conditions restricted access to higher-grade zones within the pit and further exacerbated existing issues with filtering processes and delaying efforts to recover from mine waste removal backlogs carried over from 2024,” he added.The company initiated and led a review of the operation, following the resignation of Chief Operating Officer Rodrigo Nunes in May. The review covered all aspects of mining, processing and permitting, and included a four-week suspension of the processing plant to perform essential maintenance and to allow the manufacturer to carry out mechanical filter repairs. Normal mining activities have continued throughout the period.Gold production for the first half at Mara Rosa totalled 28,416 ounces, up from 14,354 ounces in the same period last year.“Guidance at Mara Rosa has now been revised 60% lower, which is below our forecast of 56,000 ounces,” BMO said in a note.“Company-wide guidance has decreased 16% to 291,000–319,000 gold equivalent ounces from the original 350,000–378,000, slightly below our expectation of 320,000 ounces.”Production guidance at Inmaculada and San Jose remains unchanged.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com