Hochschild Mining PLC (LON:HOC) (OTCQX: HCHDF) has provided the following update on its Mara Rosa operation in Brazil.
The Company has previously disclosed that operations at Mara Rosa have been adversely affected by heavier-than-usual seasonal rainfall over the past few months as well as contractor performance issues. These conditions have limited access to ore, particularly the higher-grade zones within the pit, and have further compounded ongoing challenges with the filtering processes. As a result, efforts to recover from delays in mine waste removal carried over from the previous year have been further prolonged.
Following the resignation of the Company’s Chief Operating Officer, as announced on 27 May 2025, Eduardo Landin, CEO, has temporarily assumed operational responsibilities and is leading a comprehensive review of all mining, processing and disposal activities at Mara Rosa to identify constraints to the mine’s output. As part of this review, a temporary suspension of the processing plant of approximately six weeks is anticipated in order to carry out general maintenance activities and mechanical filter repair work. Mining operations will continue as planned. The review team is actively engaging with stakeholders in order to achieve a sustained improvement in performance.
At the start of the year, the Mara Rosa mine was expected to produce between 94,000 and 104,000 ounces of gold in 2025 and as at the end of May, the mine had produced just over 25,000 ounces of gold. The measures being taken are expected to result in a significant reduction to that guidance and this will have a corresponding impact on the operation’s costs.
An update on progress of the review and revised full year Group guidance will be provided in due course.
Hochschild Mining confirms that production at both the Inmaculada mine in Peru and San Jose in Argentina is in line with expectations.
