en.Wedoany.com Reported - Hochschild Mining has maintained its 2026 production guidance, as the UK-based producer operating in Latin America reported solid operational results in the second quarter, despite ongoing cost pressures in the regions where it operates.
The company delivered 76,231 ounces of attributable gold equivalent production in the second quarter, bringing first-half output to 151,830 ounces, in line with its annual target of 300,000 to 328,000 ounces of gold equivalent. All-in sustaining costs (AISC) were 5% to 10% above the guidance range of $2,157 to $2,320 per ounce of gold equivalent. The cost increase was driven by higher royalties and worker profit-sharing (boosted by rising gold and silver prices), the strengthening of local currencies in its operating jurisdictions, and high inflation in Argentina.
Hochschild CEO Eduardo Landin said the company achieved solid operational results in the second quarter, with strong operating cash flow from Inmaculada and San José, while Mara Rosa continued to make good progress during its operational transition.
Production at the Mara Rosa mine in Brazil increased slightly quarter-on-quarter, benefiting from improved plant stability and the ramp-up of a new mining contractor, which has already led to operational improvements. Hochschild is focusing on accessing higher-grade ore, reducing haulage distances, and improving water management as part of its transformation strategy. Meanwhile, production at Inmaculada and San José remains in line with annual guidance.
The company expects to submit a revised environmental impact assessment for the Royropata project to Peru's new government in the coming weeks, while the Monte do Carmo project in Brazil remains on track for an investment decision in the second half of 2026. On the financial front, Hochschild generated strong cash flow, holding approximately $309 million in cash and short-term investments as of the end of June, with a net cash position of around $51 million, compared to a net debt position at the end of 2025.
