London-listed precious metals producer Hochschild Mining has lowered its production guidance and increased its cost forecast for the year, citing environmental approval delays on the Immaculada project, in Peru, and accelerated mine development costs at the San Jose project, in Argentina.
The company initially expected to produce between 301 000 and 314 000 gold-equivalent ounces (GEOs) for 2023, but has decreased that range to between 289 000 and 303 000 GEOs.
All-in sustaining costs have been revised to between $1 490/GEO and $1 580/GEO.
In its interim results for the six months ended June 30, Hochschild reported a lower profit before income tax of $800 000, compared with a profit of $15.3-million generated in the prior comparable six months. Hochschild ultimately made a loss of $66.1-million in the six months under review, compared with a profit of $5.4-million in the prior half-year.
The basic loss a share post-exceptional came to $0.09 apiece.
The company’s attributable production amounted to 136 878 GEOs in the reporting period, compared with 157 380 attributable GEOs produced in the prior comparable six months.
Attributable silver production was 4.4-million ounces, which was 12% lower year-on-year, while attributable gold production was 83 000 oz, which was 14% lower year-on-year.
The Immaculada project’s modified environmental impact assessment was finally approved on August 1 for an additional 20 years.
Meanwhile, the company’s Mara Rosa project, in Brazil, is advancing on budget and on schedule, with total project progress being at 92%. Hochschild expects first production from this mine in the first half of next year.
The company also continues to progress brownfield programmes in the surrounding areas of all three of its mines.