Hochschild Mining has revised its 2025 production guidance for the Mara Rosa gold mine in Brazil due to a combination of heavy seasonal rainfall and contractor-related issues that have disrupted access to higher-grade ore since the start of the year. The company’s initial forecast for Mara Rosa was between 94,000 and 104,000 ounces, but by the end of May, only 25,000 ounces had been produced, leading to a downward revision of its full-year outlook.
The company acknowledged that the production shortfall would also affect operational costs. Hochschild stated that updated production forecasts and revised group-wide guidance would be issued in the near future.
The announcement caused a sharp decline in Hochschild’s share price, which fell as much as 22% on Tuesday. Shares dropped from an opening price of 269 pence to 232 pence, marking the largest intraday loss since November 2021.
These operational setbacks follow the unexpected resignation of the company’s chief operating officer just two weeks ago, heightening investor concerns. CEO Eduardo Landin has since taken over direct control of operations and is conducting a comprehensive review of mining, processing, and disposal activities at the site.
As part of the effort to stabilize operations, Hochschild has temporarily suspended processing plant activities for six weeks to carry out necessary maintenance and mechanical filter repairs. Despite this, mining activities are continuing as planned.
Landin emphasized that the measures being implemented at Mara Rosa aim to restore stable operational performance. “We remain confident in the geological potential of the asset and in Brazil’s role as a key pillar of our long-term growth strategy,” he said.
Mara Rosa, located in Goiás state, began commercial production in early 2024 and was seen as a key element of Hochschild’s strategy to diversify beyond its traditional Andean assets. However, persistent challenges this year, including delays in waste removal from 2024 and issues with filtration technology, have hindered progress. The extended wet season has also disrupted mining, transportation, and supply chains across central Brazil, impacting several companies.
In response to the revised outlook, analysts have adjusted their forecasts. Peel Hunt has lowered its production estimate for Mara Rosa to 60,000 ounces for the year, down from an earlier projection of 84,000 ounces. The firm expressed hope that the shutdown would ultimately lead to a more flexible pit and a debottlenecked plant, improving throughput and output stability.
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