Finance

Hochschild Mining stays on track after solid Q2, but costs run above guidance

MarketBeat · Jul 22, 2026 15:06 · 5 min read

Hochschild Mining Stays on Track After Solid Q2, but Costs Run Above Guidance — Hochschild Mining logo

Key Points Interested in Hochschild Mining plc? Here are five stocks we like better. Hochschild Mining said it remains on track to meet full-year production guidance of 300,000 to 328,000 gold equivalent ounces after a solid second quarter, with strong cash generation leaving it with about $309 million in cash and a net cash position of roughly $51 million. Costs are running above expectations, with attributable all-in costs tracking about 5% to...

Key Points

Interested in Hochschild Mining plc? Here are five stocks we like better.
Hochschild Mining said it remains on track to meet full-year production guidance of 300,000 to 328,000 gold equivalent ounces after a solid second quarter, with strong cash generation leaving it with about $309 million in cash and a net cash position of roughly $51 million.
Costs are running above expectations, with attributable all-in costs tracking about 5% to 10% above guidance due to higher metal prices, royalties, profit-sharing, stronger local currencies, and inflation in Argentina. Management said it will update guidance after half-year results if needed.
Mara Rosa is improving as plant stability and contractor changes help production recover, while Monte Do Carmo and other projects continue advancing through engineering and permitting as the company looks to grow output over the next few years.

Hochschild Mining (LON:HOC) reported what Chief Executive Officer Eduardo Landin called "another solid quarter," with attributable second-quarter production of about 76,000 gold equivalent ounces and first-half production of almost 152,000 gold equivalent ounces.

Landin said the company remains on track to meet production guidance of 300,000 to 328,000 gold equivalent ounces. He also said the company's balance sheet strengthened during the period, ending June with approximately $309 million in cash and a net cash position of around $51 million.

Operations Remain on Track Despite Site-Specific Challenges

At Inmaculada, Hochschild produced just over 45,000 gold equivalent ounces in the quarter. Landin said tonnage was slightly ahead of plan, though this was offset by moderately lower grades. He said the operation remains on track to meet full-year guidance.

Landin also addressed a fatal accident at Inmaculada in June involving a contractor. He said activities were temporarily suspended while the company conducted a comprehensive investigation, and that findings have been shared across operations.

"We are implementing the lessons learned to further strengthen our safety culture and reduce the risk of similar events in the future," Landin said.

In Argentina, San Jose produced almost 32,000 gold equivalent ounces. Landin said the mine delivered a stronger quarter than the first quarter, with slightly higher-than-forecast tonnage partly offset by lower grades. The operation also remains on track to achieve annual production targets.

Mara Rosa Turnaround Shows Progress

Landin said Hochschild is seeing "encouraging progress" at Mara Rosa, where production improved from the first quarter. He attributed the improvement to better plant stability and the early benefits of transitioning to a new mining contractor, Fagundes.

The company is focusing on mine sequencing, waste movement, access to higher-grade ore, shorter haulage distances and stronger ore control. Landin said Hochschild is also improving filtration availability and water management. During the quarter, the company began commissioning a new tailings thickener, which it expects to improve processing stability, water management and tailings disposal.

In response to an analyst question, Landin said the plant has recently been operating at about 7,000 tons per day, but the mine remains the bottleneck. He said he expects the mine to reach full capacity within "a month or a couple of months," and said he expects Mara Rosa to operate at 2.5 million tons per year in 2027.

Costs Tracking Above Guidance

Hochschild said attributable all-in costs are currently tracking about 5% to 10% above the company's original guidance range. Landin cited higher commodity prices affecting royalties, workers' profit sharing and selling expenses, along with stronger local currencies and continued cost inflation in Argentina.

Chief Financial Officer Eduardo Noriega said the increase is "purely explained" by higher metal prices affecting royalties, worker profit sharing and export taxes in Argentina, with a smaller impact from appreciation in the Peruvian sol, Brazilian real and Argentine currency. Noriega said Hochschild's original guidance assumed gold at $3,200 an ounce and silver at $34 an ounce, with flat Brazilian real and Peruvian sol assumptions.

Landin said the company will provide a further cost update with half-year results in August and will revise guidance if necessary.

Projects and Permitting Advance

Landin said Monte Do Carmo continued to advance through engineering and permitting work, and the company remains on track to bring the project forward for an investment decision in the second half of the year.

Asked about capital spending for Monte Do Carmo, Landin said the project's plant design is similar to Mara Rosa, though it will include changes such as a SAG mill and a tailings thickener. He said the major difference is pre-stripping, which he estimated at $50 million to $80 million. Landin said assuming total capital expenditure of more than $300 million is "a good assumption," though he said it is too early to provide a final figure. The company expects to have 100% of basic engineering completed in December.

At Olmos Pata, Landin said Hochschild expects to submit a revised environmental impact assessment to Peruvian authorities in the coming weeks. In response to a question about Royropata permitting, he said the formal review period is 90 working days, but full environmental studies typically take about a year to review. He added that after environmental approval, operational permits could take another nine to 12 months.

Landin also said greenfield exploration gained momentum during the quarter, with encouraging initial drilling results across all three operations. In closing remarks, he said Hochschild is positive about its operations and sees an opportunity to increase production over the next few years.

About Hochschild Mining (LON:HOC)

We are a leading underground precious metals producer focusing on high grade silver and gold deposits, with over 50 years' operating experience in the Americas. We currently operate three underground mines, two located in southern Peru and one in southern Argentina. All of our underground operations are epithermal vein mines and the principal mining method used is cut and fill. The ore at our operations is processed into silver-gold concentrate or dore. Hochschild Mining plc is listed on the Main Market of the London Stock Exchange and is headquartered in Lima, Peru.

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