Hochschild Cuts Production Guidance Due to Delays at Brazil Gold Mine

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Hochschild Mining (London, England) has reduced its production guidance for 2025 from 350,000-378,000 gold ounces equivalent to 291,000-319,000 ounces. The guidance cut has led to a drop in the company's shares.

The decline is related to issues at the Mara Rosa mine in Goias, Brazil, which experienced heavier-than-usual rainfall during the first quarter as well as contractor performance issues. This impacted the access to higher-grade zones and led to other operational issues. Subscribers to Industrial Info's Global Market Intelligence (GMI) Mining & Minerals Plant Database can click here for the mine profile.

As a result, a review of Mara Rosa's operations was launched, including a four-week suspension of the processing plant for maintenance and allowing the repair of mechanical filters. Despite this, the company produced 28,416 ounces from Mara Rosa in the first half of 2025, compared to 14,354 ounces in the same period last year. This was the outcome of the plant's ramp-up, which began last year.

According to the company, the plant has restarted and is ramping up production. Mara Rosa's production guidelines for the year has been changed from 94,000-104,000 ounces to 35,000-45,000 ounces.

The company revised sustaining and development capital expenditures at Mara Rosa to US$29 million-US$30 million, including remedial activities.

Hochschild also raised its cost estimate per gold equivalent ounce from US$1,587-US$1,687 to US$1,980-US$2,080.

Meanwhile, the company's San Jose mine in Argentina had a slightly lower output of 52,770 ounces of gold equivalent during the first half of the year, representing a 7% decrease. At the same time, Inmaculada mine in Peru, Hochschild's flagship asset, produced 106,200 ounces of gold equivalent, about 3% less than last year. Subscribers can click here for the San Jose mine profile and click here for the Immaculada mine profile.

The company has maintained continuous exploration efforts throughout the year, with new mineralization identified below the main pit of the Mara Rosa and in the northern extension of the Inmaculada mine. At San Jose, the company is working to extend the mine's life.

In Brazil, however, the company reached the engineering studies at the Monte do Carmo project in the state of Tocantins and it secured the installation license. Hochschild expects to make a final construction decision in the first half of 2026. Finally, the company's Royropata project in Peru is working to submit the modified environmental impact assessment to the government, which is also expected to be finalized next year. Subscribers can click here for the Monte do Carmo project report and click here for the Royropata project report.

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