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(Alliance News) - Hochschild Mining PLC on Wednesday said robust performances had pushed production to the upper end of forecasts, as the company also provided updates on a number of its South American projects.
The gold and silver miner with operations in Peru, Argentina and Brazil produced 186,091 ounces gold in 2023, as well as 9.5 million ounces of silver.
Hochschild produced 25.0 million silver equivalent ounces, and its 300,749 ounces of gold equivalent was at the high end of previous guidance of between 289,000 and 303,000 ounces.
Production at the Hochschild's Peruvian Inmaculada project was ahead of revised forecasts, producing 39,354 ounces of gold and 1.5 million ounces of silver in the year.
All-in sustaining costs are expected at around USD1,490-1,580 per gold equivalent ounce, compared to a current gold spot price of USD2032.72.
As of December 31, Hochschild had USD89 million in total cash, down from USD144 million a year prior. Net debt stood at USD252 million, up 44% from USD175 million in 2022.
Construction has reached the final stages at Hochschild's Mara Rosa project in the Goias state of Brazil, with the first gold pour expected in February. Completion of the "exciting new mine", according to Chief Executive Officer Eduardo Landin, will enable the company to increase its total output by 15% over 2024.
In the fourth quarter, operations were suspended at Pallancata, as the company attempted to incorporate the nearby Royropata discovery into the project's existing permitted area. In October, Hochschild announced a "major discovery" at Royropata, and expects the new area to deliver additional 100,000 ounces of gold per year from 2027.
Hochschild began amending the Pallancata environmental impact assessment to include Royropata in December, and says the process is "advancing on schedule". Over 90% of feasibility engineering has been completed, and company expects to begin environmental and social baseline studies in 2024.
Chief Executive Officer Eduardo Landin said: "Our operational team delivered a robust performance in the fourth quarter of 2023, and we have therefore ended the year at the top end of our revised production guidance with costs anticipated to be in line with expectations."
Shares in Hochschild were up 8.1% at 96.00 pence each in London on Wednesday morning.
By Hugh Cameron, Alliance News reporter
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