LONDON - Hochschild Mining (LON:HOCM) PLC (LSE:HOC) (OTCMKTS:HCHDF), a leading precious metals company, announced its strongest quarterly production in nearly five years, maintaining its full-year production guidance for 2024. The third quarter saw the company produce 96,327 gold equivalent ounces and 8.0 million silver equivalent ounces, marking a 16% increase over the previous quarter.
CEO Eduardo Landin expressed confidence in meeting the annual production target, highlighting the steady ramp-up of the new Mara Rosa mine in Brazil and the continuous improvement program at the Inmaculada mine in Peru. Landin also noted the repayment of approximately $45 million in debt, attributing the company's financial strength to robust cash flow generation and favorable metal prices.
The third quarter results contributed to a nine-month total of 173,748 ounces of gold and 6.3 million ounces of silver, resulting in 249,120 gold equivalent ounces and 20.7 million silver equivalent ounces. Hochschild reiterated its 2024 guidance, projecting 343,000-360,000 gold equivalent ounces and all-in sustaining costs between $1,510 and $1,550 per gold equivalent ounce.
The Inmaculada mine delivered a substantial third-quarter output with 37,762 ounces of gold and 1.7 million ounces of silver, while the San Jose mine produced 1.0 million ounces of silver and 16,633 ounces of gold. The new Mara Rosa operation, which reached commercial production in mid-May, reported a steady increase in output, with September's production exceeding 9,000 ounces of gold.
In terms of financials, Hochschild reported a cash position of approximately $85 million as of September 30, 2024, and a reduced net debt of approximately $227 million, down from $271 million at the end of the second quarter.
The company also highlighted its exploration efforts, including significant resource drilling at all operating units and nearly completing technical work at the Monte do Carmo project in Brazil.
Hochschild's commitment to environmental, social, and governance (ESG) standards was evident in its reported metrics, such as a Lost Time Injury Frequency Rate of 1.03 and a Water Consumption rate of 137 liters per person per day.
This report is based on a press release statement from Hochschild Mining PLC.
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