Hochschild Mining PLC (LSE:HOC, OTCQX:HCHDF) shares fell almost 15% to a two-month low as the precious metals miner cut its guidance for the year due to work at its Mara Rosa mine in Brazil.
The FTSE 250-listed group reported a 33% increase in revenue to US$520 million for the six months ended 30 June 2025, with adjusted EBITDA up 27% at US$224.5 million, around 2% ahead of consensus expectations.
Higher costs offset some of the revenue benefit, while reported net income was supported by a US$30.8 million impairment reversal on the Chile's Volcan project, driving earnings per share to 18 cents.
The interim dividend was set at US$0.01 per share, in line with expectations. Net debt stood at US$202.3 million, a reduction from year-end 2024.
Operationally, group attributable production rose to 161,597 gold equivalent ounces, but the Mara Rosa plant in Brazil continues to operate below steady-state levels.
Two of Mara Rosa’s four filter presses are now back in service, with the remainder expected to be operational in October.
As a result, Hochschild cut its 2025 production guidance to between 291,000 and 319,000 gold equivalent ounces, down from 350,000-378,000 previously.
All-in sustaining costs are now forecast between US$1,980 and US$2,080 per ounce.