(Alliance News) - Hochschild Mining PLC on Wednesday said the third quarter was the strongest quarter for production in the year so far, though still down on a year before.
Hochschild also said the Mara Rosa project in Brazil will start producing in the first half of 2024.
Hochschild is a gold and silver miner in Peru, Argentina and Brazil.
It produced 49,999 ounces of gold in attributable terms, taking into account its share of joint ventures, or 60,810 ounces in total, in the three months that ended September 30. This was up from 43,620 ounces and 54,120 ounces, respectively, in the second quarter, but down from 52,713 and 62,570 in the third quarter of 2022.
Attributable silver production was 2.6 million ounces in the third quarter, up from 2.4 million in the second but down from 3.0 million a year before. Total group silver production was 3.2 million ounces, up from 3.0 million in the second quarter but down from 3.9 million a year ago.
Gold equivalent production in the third quarter was 81,620 ounces in attributable terms and 99,420 in total group terms.
Hochschild sold 53,930 ounces of gold at an average realised price of USD1,926 per ounce, while 2.9 million ounces of silver were sold at an average price of USD23.6 per ounce. Prices were up from USD1,667 an ounce for gold and USD20.4 per ounce for silver a year ago.
Hochschild said it is on track for its revised 2023 attributable production target of 289,000 to 303,000 gold equivalent ounces at all-in sustaining costs of USD1,490 to USD1,580 per ounce.
The miner said the Mara Rosa project in Brazil is now 98% complete. "We continue to be on schedule and on budget and expecting first production in H1 2024," said Chief Executive Officer Eduardo Landin.
Hochschild on Wednesday also noted that the Peru government recently approved the modified environmental impact assessment for the Inmaculada mine for a further 20 years.
It said it will hold a capital markets event on November 22 to set out its long-term strategy.
Shares were up 1.9% at 86.49 pence in London on Wednesday morning.
By Tom Waite, Alliance News editor
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Hochschild (HOC)