Hochschild Mining (LSE:HOC), the South America-focused precious metals producer, reported attributable production of 151,830 gold equivalent ounces for the six months to 30 June, keeping it on track to meet its 2026 target of 300,000 to 328,000 ounces.
All-in sustaining costs are running approximately 5-10% above the guided range of $2,157 to $2,320 per gold equivalent ounce, driven by higher royalties and workers' profit sharing linked to stronger metal prices, unexpectedly firm local currencies across all three jurisdictions, and continued cost inflation in Argentina.
"We have delivered a solid operational performance during Q2, with Inmaculada and San Jose generating robust operating cash flow while Mara Rosa continued to make good progress as we execute our operational turnaround," said chief executive Eduardo Landin.
Inmaculada produced 93,686 gold equivalent ounces in the half, in line with expectations though below the 108,976 ounces generated a year earlier. A fatal accident involving a contractor shift supervisor occurred at the mine in June, prompting a temporary suspension of activity in the affected area and a full investigation.
San Jose lifted output to 4.5 million silver equivalent ounces from 4.2 million a year earlier, while Mara Rosa produced 28,158 gold equivalent ounces, tracking toward its 67,000 to 80,000 ounce annual guidance as a new mining contractor beds in.
Net cash stood at approximately $51 million as at 30 June, against net debt of $22.7 million at the end of December.
Any revisions to annual guidance are expected to be addressed at the half-year results in August.
News Intelligence what this means for the company
Hochschild produced 151,830 gold equivalent ounces in H1 2026, tracking toward its full-year target, but all-in sustaining costs are running 5–10% above guidance at $2,157–$2,320 per ounce due to higher royalties tied to metal prices, firm local currencies, and Argentine cost inflation. The company flagged a fatal contractor accident at Inmaculada in June and will clarify any cost guidance revision at August half-year results.
Cost overruns of this magnitude—5–10% above a $2,157–$2,320 range—erode margin and cash generation despite steady output. The June fatality and temporary suspension at Inmaculada add operational and reputational risk; the outcome of the investigation and any safety-driven cost measures remain unknown pending August results.
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