Hochschild Mining (LSE:HOC) reported Q1 attributable production of 75,599 gold equivalent ounces, including 55,252 ounces of gold and 1.6 million ounces of silver, and confirmed full-year guidance of 300,000-328,000 GEO with all-in sustaining costs of $2,157–$2,320 per GEO.
"We have made a solid start to the year, with a strong operational performance at our flagship Inmaculada mine in Peru whilst the turnaround programme at Mara Rosa in Brazil is progressing well, with continued improvements in the plant and filtering operations. Overall, we have delivered another quarter of strong cash generation and we are on track to meet our full-year production and cost guidance. In parallel, we have continued to advance the engineering work at our Monte Do Carmo gold project in Brazil, where we are targeting the third quarter for project approval and the commencement of construction. Finally, the Environmental Impact Study for the Royropata silver project in Peru is progressing according to plan. With Inmaculada performing well, an improved Mara Rosa, guidance maintained and an exciting portfolio of future growth projects, we see a strong future for Hochschild and look forward to updating the market on our progress" said Eduardo Landin, Chief Executive Officer.
Inmaculada delivered 32,561 oz of gold and 1.2m oz of silver (48,281 GEO). San Jose, where Hochschild holds a 51% interest (49% held by JV partner McEwen Mining Inc.), produced 14,157 oz gold and 0.7m oz silver (26,991 GEO). Mara Rosa produced 13,552 GEO as a turnaround programme improved plant stability; commissioning of a new tailings thickener is due to start end-May.
The Monte Do Carmo project remains on track for Board approval in Q3 and construction start thereafter. Hochschild finished the quarter with approximately $412m of cash and short-term investments and net cash of about $95m as at 31 March.
