10th Jun 2025 09:30
(Alliance News) - Hochschild Mining PLC on Tuesday said it expects to significantly reduce production guidance at its Mara Rose site in Brazil amid ongoing delays to the project.
The London-based gold and silver miner in Argentina, Brazil and Peru reported that Mara Rose has suffered "contractor performance issues", alongside unexpectedly heavy rainfall in the past few months. According to Hochschild, filtering problems and limited access to metal ore have exacerbated the impact of delayed waste removal, an issue which was carried over from previous years.
Hochschild is planning to suspend operations at Mara Rose's processing plant for about six weeks in order to carry out repairs, but it insists that mining "will continue as planned".
This follows the start of a strategic review by Chief Executive Eduardo Landin, who assumed operational duties at Mara Rose back in May, when the company's chief operating officer resigned. Landin said of Mara Rose: "We remain confident in the geological potential of the asset and in Brazil's role as a key pillar of our long-term growth strategy."
Mara Rose was aiming to produce between 94,000 and 104,000 ounces of gold in 2025, but Hochschild estimated it had reached only 25,000 at the end of May. The company noted: "The measures being taken are expected to result in a significant reduction to that guidance and this will have a corresponding impact on the operation's costs."
Hochschild said production at its other mines - Inmaculada in Peru and San Jose in Argentina - is still in line with guidance. The company expects to release updated group guidance for the full-year "in due course".
Hochschild shares fell 20% to 240.00 pence on Tuesday morning in London.
By Holly Munks, Alliance News reporter
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