MINING REFINING

Peru's Hochschild cuts gold production guidance on Inmaculada delay

Thu Sep 07 2023

Hochschild Mining, one of Peru’s main precious metals miners, cut its gold production guidance for 2023. The company now expects to produce 289,000-303,000oz gold equivalent, down from an initial estimate of 301,000-314,000oz.

According to the miner’s interim results report, the reduction is due to the delay in the environmental approval of the Inmaculada optimization project in Ayacucho region. At the end of 2022, Hochschild indicated that the company expected to obtain the permit in the first months of 2023 but it was only obtained at the beginning of August. 

Regarding Inmaculada, which accounts for about two thirds of Hochschild's gold production, revised attributable guidance is between 192,000oz and 200,000oz gold equivalent for 2023.

The delay caused by Inmaculada will make Hochschild speed up investments in other projects.

"We have therefore modified our production and cost guidance for Inmaculada and San José [Argentina)], where we have made the decision to accelerate some 2024 mine development plans. The second half will also feature the final stages of development in Mara Rosa [Brazil], as well as the restarting of our brownfield exploration program in Peru, which will continue into 2024," the company report says.

Regarding brownfield exploration, the company says it plans to drill 10,000m at Inmaculada to identify high-grade deposits in the Eduardo and San José mining belts. These resources are expected to be added to the company’s total towards the end of the first quarter of 2024.

Source: https://www.bnamericas.com/