22nd Jan 2025 10:06
(Alliance News) - Hochschild Mining on Wednesday said all-in sustaining costs were higher last year, citing a slow ramp-up at Mara Rosa in Brazil's Goias state and higher-than-forecast inflation in Argentina.
The miner of silver and gold in Peru, Argentina and Brazil said production rose 16% to 347,374 gold equivalent ounces in 2024 from 300,749 ounces in 2023.
In the fourth quarter alone, gold equivalent production rose 15% to 117,230 ounces from 101,590 ounces a year before and 6.4% from 110,180 ounces in the third quarter.
For 2025, the company targets a production of 350,000 to 378,000 gold equivalent ounces, between 0.8% and 8.8% higher than in 2024.
However, Hochschild expects to report all-in sustaining cost for 2024 to be above guidance of between USD1,510 to USD1,550 per gold equivalent ounce, with that set to increase to between USD1,587 and USD1,687 in 2025. The company cited a slower-than-expected ramp up at the Mara Rosa mine, as well as inflation in Argentina.
Chief Executive Officer Eduardo Landin said: "Our brownfield team has had an exceptional year, delivering a number of exciting opportunities in the areas surrounding our existing assets and we will provide more information on the resulting resource additions in our full year results announcement in March. We look forward to another successful year as we continue executing our growth strategy."
Hochschild shares fell 15% to 194.39 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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