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Highlights:
- Hochschild produced 96,327 gold equivalent ounces in Q3, its strongest quarter in five years.
- The company repaid $45 million in debt and reduced net debt to $227 million.
- CEO Eduardo Landin expects strong production and favorable metal prices to drive further cash flow generation.
Hochschild Mining PLC (LSE:HOC) saw its shares rise by 7% on Wednesday after reporting its strongest third-quarter performance in nearly five years. The precious metals miner, with operations in Peru, Argentina, and Brazil, produced 96,327 gold equivalent ounces in the past three months and remains on track to meet its full-year production target of 343,000-360,000 ounces.
During the third quarter, Hochschild produced 69,996 ounces of gold and 2.2 million ounces of silver. The company highlighted strong performance across its operations, particularly from its new Mara Rosa mine in Brazil, which has been steadily ramping up to full production. CEO Eduardo Landin also emphasized the continued success of the improvement program at the company’s flagship Inmaculada mine in Peru.
In addition to the strong production figures, Hochschild has strengthened its balance sheet, repaying $45 million in debt during the period. The company reported total cash reserves of approximately $85 million as of the end of September, slightly down from $89 million in June. Net debt was reduced to $227 million, down from $271 million in the previous quarter.
Landin expressed optimism about the company’s future, noting that favorable metal prices and anticipated strong production in the fourth quarter will likely result in robust cash flow generation. Hochschild remains well-positioned to capitalize on current market conditions, with plans to continue improving its financial stability and operational efficiency.
With these positive results and a strong outlook for the final quarter of the year, Hochschild’s shares saw a significant boost, reflecting investor confidence in the company’s ability to meet its production targets and generate solid returns.
