23rd Oct 2024 10:00
(Alliance News) - Hochschild Mining PLC on Wednesday said it remains on track to meet annual guidance following its "strongest [quarter] in almost five years".
Hochschild is a silver and gold mining company with operations in North, Central and South America.
Hochschild reported a 29% rise in gold production to 78,150 ounces for the three months ended September 30, up from 60,810 ounces a year before.
Hochschild attributed this to strong performances from its Inmaculada mine in Peru and new Mara Rosa mine in Brazil.
The company noted that gold sold increased by 49% to 80,270 ounces for the recent period, up from 53,930 ounces a year before.
Silver output fell by 16% to 2.7 million ounces during the quarter from 3.2 million a year prior, while silver sold fell by 7.4% to 2.7 million ounces from 2.9 million.
Hochschild noted that gold and silver prices continued to rise during the quarter.
The average realisable price for gold was USD2,422 per ounce for the quarter, up 20% from USD1,926 a year before, while the realisable price for silver was USD29.8 per ounce, up 21% from USD23.6.
The all-in sustaining cost for 2024 is expected to be between USD1,510 and USD1,550 per gold equivalent ounces or USD18.2 and USD18.7 per silver equivalent ounces.
Looking ahead, Hochschild said it remains on track to meet annual guidance.
Gold production for 2024 is expected to be between 340,000 and 360,000 gold equivalent ounces. Silver production is expected to be between 28.0 million and 29.9 million silver equivalent ounces.
Chief Executive Officer Eduardo Landin commented: "Hochschild Mining's third quarter has been the strongest in almost five years, and we expect to meet our full year production target... With the current metal price momentum along with the forecast strong production in the last quarter, we can look forward to further robust cashflow generation."
Hochschild shares were up 7.3% at 250.00 pence each in London on Wednesday morning. The stock has climbed around 36% over the past month, on a robust gold price. Gold prices spiked at another record high above USD2,758 an ounce early Wednesday.
Gold prices have been boosted by safe haven amid the conflict in the Middle East, and have continued to rise despite fading US interest rate cut expectations lifting the dollar. Gold typically has an inverse relationship with the dollar.
By Lydia Doye, Alliance News reporter
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