Hochschild Mining hits production targets, reiterates guidance for costs

Commenting on the year just finished, Hochschild boss, Ignacio Bustamante, described its performance over the fourth quarter as "strong" and highlighted the addition of "high grade" ounces at its Inmaculada and San Jose operations.

The latter came on top of its purchase of Amarillo Gold, the exercise of its option to start earning-in a 60% interest in the "promising" gold project in Canada and the successful demerger and flotation of Aclara Resources, he added.

Bustamente also said that the outfit had hedged more of its production from Pallancata in order to ensure profitable production through 2023.

The outfit said that it produced 221,419 oz. of gold during the period, together with 12.2m oz. of silver and 362,972 gold equivalent oz. and 31.2m silver equivalent ounces.

That "strong" operational performance was achieved despite the impact from Covid protocols in 2021, the company said in a statement.

All-in sustaining costs for 2021 were pegged at $1,210-1,250 per gold equivalent ounce and were in line with the company's own guidance.

Hochschild's Resources were seen increasing to roughly 83m silver equivalent ounces in 2021 with the completion of its acquisition of Amarillo Gold expected to take place in the first quarter of 2022.

As at 31 December, the company's net cash position stood at approximately $87m, which was up from $22m at the end of 2020.

As of 0943 GMT, the miner's shares were rising by 4.84% to 129.90p.