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contractor|cutting|gold|mining|operations

Hochschild slashes gold production forecast from Brazilian mine, shares plummet

27th August 2025

By: Reuters

  

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Britain's Hochschild Mining slashed full-year production forecast for its Mara Rosa mine by more than half on Wednesday, months after a shutdown due to lacklustre gold output, sending shares down nearly 20%.

The gold mine - Hochschild's first operation in Brazil - has faced contractor and weather-related disruptions, leading to production delays and reduced output, while costs continued to climb.

The mine's gold production is now expected to reach only 35 000 oz to 45 000 oz this year, down from its previous forecast of 94 000 oz to 104 000 oz.

Hochschild shares, which fell as much as 19.6% to 246.2p, dragged the wider FTSE 350 precious metals and mining index down 2.3% by 0730 GMT.

"Although the guidance downgrades do not catch us by surprise, the cost levels guided for 2025 drive a recalibration to our future forecasts," RBC Capital Markets analysts said in a note, cutting Hochschild's price target to 320p from 340p.

Mara Rosa has since restarted operations, the firm said, and will cost about $29-million to $30-million in sustaining and developmental expenses this year.

Its minimal contribution to production in the third quarter also led to a cut in total annual gold production to 291 000 oz to  319 000 oz, from 350 000 oz to 378 000 oz.

Edited by Reuters

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