Hochschild Mining Shares Slump 14% As Output Targets Slashed

Fresh production issues in Brazil have prompted Hochschild Mining to slash full-year production forecasts, sending its shares sharply lower.

At 262.2p per share, Hochschild’s share price was 14.4% lower in Wednesday trading.

The company – which operates gold and silver projects across Latin America – said its Mara Rosa yellow metal mine in Brazil would produce between 35,000 and 45,000 ounces this year.

That’s down sharply from a previous target of 94,000 to 104,000 ounces.

Hochschild said that “Mara Rosa experienced a challenging first half of the year, with operations impacted by heavier-than-usual seasonal rainfall and contractor performance issues.”

It said these factors “restricted access to higher-grade zones within the pit and further exacerbated existing issues with filtering processes and delaying efforts to recover from mine waste removal backlogs carried over from 2024.”

Total first-half group production rose to 161,597 gold equivalent ounces or 13.4 million silver ounces, the FTSE 250 miner said. This was up from 152,792 gold equivalent ounces or 12.7 million silver equivalent ounces respectively in the same 2024 period.

Hochschild maintained its full-year output forecasts for its Inmaculada and San Jose projects, in Peru and Argentina respectively.

However, issues at Mara Rosa mean group full-year production is now tipped at between 291,000 and 319,000 gold equivalent ounces.

That’s down from a previous forecast of 350,000 to 378,000 ounces.

Revenues And Profits Rise

Despite those production issues, Hochschild’s revenues jumped 33% in the six months to June, to $520 million.

This was thanks to greater total first-half output and the benefit of higher gold and silver prices. The yellow and grey metals have risen 29% and 33% respectively in 2025 thanks to strong safe-haven interest and a declining US dollar.

Hochschild’s adjusted EBITDA rose 27% year on year, to $224.5 million. Pre-tax profit excluding exceptional items rose to $109.3 million, from $83.1 million in the same 2024 period.

Changes Made

Chief executive Eduardo Landin said “during the first half of 2025, Hochschild Mining delivered another period of steady progress across our business despite the operational issues in Brazil.”

He added that “whilst challenges at our Mara Rosa mine affected first-half performance, we are confident that we now have the right team in place to drive a turnaround. The operational review and temporary suspension of the plant will enable us to set a foundation for reliable production.”

As well as conducting an operational review and temporarily suspending work at Mara Rosa, Hochschild has overhauled its local management structure, including appointing a new Brazil general manager and a new operations manager.

More Disappointment

Mark Crouch, analyst at eToro, commented that “despite a supportive gold price environment, Hochschild Mining faces renewed investor disappointment after slashing its full-year production forecast [which underscores] persistent operational challenges that continue to weigh heavily on sentiment.”

He noted that “ongoing concerns around jurisdictional risks and permitting hurdles” also continue to weigh on the company’s outlook.

However, Crouch added that “while major gold producers are largely priced more in line for today’s bullion levels, attention is shifting toward smaller, higher-leverage miners. Hochschild’s improving fundamentals and attractive valuation keep it on investors’ radar, but the persistent operational setbacks and external risks temper enthusiasm.”