Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) shares tumbled 12% after the gold miner revealed that the rainy season impacted output at Brazil's Mara Rosa operation more than expected.
The South American precious metals miner produced 80koz attributable gold equivalent in the first quarter of 2025, a little softer than analysts had forecast.
More precisely, 58,021 ounces of gold and 1.8 million ounces of silver were produced.
CEO Eduardo Landin said Q1 has traditionally seen the lowest production, but the flagship Inmaculada mine in southern Peru delivered a solid performance.
He also flagged "encouraging developments" in Argentina, where he said the easing of exchange controls and ensuing currency weakness "are expected to improve San Jose's cost position in the long-term".
Mara Rosa saw heavier-than-usual seasonal rains continuing into April, he said, which also combined with carry-over delays in waste removal from the previous year.
Volumes of ore processed at 584kt were slightly better than the 580kt; the exceptionally heavy rain limited stripping activities, reducing access to higher grade zones.
Furthermore, Landin flagged "operational challenges" with the local mining contractor, noting that this was "in an environment of increasing pressure on the availability of skilled labour, partly driven by elevated metal prices."
Average realisable precious metal prices, however, rose to $2,708 per ounce for gold and $33.2 per ounce for silver, significantly higher than the $2,106 and $23.6 a year earlier.
He said production in the second quarter is expected to remain "broadly in line" with Q1, "but we remain confident in a recovery in production during the second half of the year and reaffirm our full-year production guidance".