The British company Hochschild Mining PLC (LON: HOC) (OTC: HCHDF) had its first gold pour at Brazil’s Mara Rosa mine this week and will commence with commercial production by the end of H1.
The operation, located in the state of Goias, is expected to produce about 88,000 ounces this year with all-in sustaining costs around US$2,005 per ounce. A 2018 pre-feasibility study indicated that the site contained about 1.1 million ounces of proven and probable gold grading at 1.4 g/t Au.
“The first pour is a testament to the hard work done by all our employees, contractors and local communities who have enabled us to construct this exciting operation on schedule and on budget,” Chief Executive Officer Eduardo Landin said.
Mara Rosa’s first gold. Photo credit: Hochschild
Mining precious metals since 1964
In addition to Mara Rosa, Hochschild has three underground gold and silver operations in Peru and Argentina. The company has over 59 years of experience mining precious metals. Its flagship asset is the Inmaculada mine in southern Peru.
Hochschild’s net debt grew while its cash balance dropped significantly last year. The gold producer’s debt increased by US$77 million to US$252 million and its cash position declined by 61.8 per cent to US$89 million year-over-year.
However, the company did meet the top end of its production guidance in 2023 at 300,749 gold equivalent ounces.
Hochschild says it has paid out over US$100 million in dividends since 2016.
South and Central America are known to host a variety of profitable mining operations. Nicaragua in particular is known for having a government that is supportive of mineral exploration.
Mineros S.A. (TSX: MSA), Calibre Mining (TSX: CXB) (OTCQX: CXBMF) and Mako Mining Corp. (TSX-V: MKO) (OTCQX: MAKOF) are some of the companies that have had significant success there in recent days.
Top Brazilian operators include Wheaton Precious Metals Corp. (TSX: WPM) and Vale S.A. (NYSE: VALE).
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