Hochschild lifts guidance as 2020 output hits upper end of range

The company on Wednesday reported full year attributable production of 289,293 gold equivalent ounces, compared with revised guidance of 280,000 - 290,000 ounces.

It said the production figures represented “a strong ongoing recovery versus the previous two quarters with the Inmaculada and Pallancata mines in full production throughout the period”.

Forecasts for 2021 production target were 360,000-to-372,000 gold equivalent ounces, with all-in sustaining costs expected to be $1,210-to-$1,250 per gold equivalent ounce and capital expenditure to be approximately $120m - $130m, Hochschild said.

Chief executive Ignacio Bustamante said the company’s balance sheet was now in a net cash position following a period of “substantial free cashflow generation driven by our strong operational performance and ongoing favourable precious metal prices”.

“Finally, our brownfield programme continues to advance with Inmaculada expected to increase reserves significantly and encouraging new drill results achieved at Arcata, San Jose and Corina."