Key Highlights

  • Hochschild Mining plc (LSE:HOC) produced just over 74,000 attributable gold equivalent ounces in the third quarter of 2026, taking nine-month output to almost 226,000 ounces.
  • Full-year guidance of 300,000 to 328,000 gold equivalent ounces and all-in sustaining costs of $2,380 to $2,500 per ounce has been maintained.
  • Mara Rosa in Brazil produced more than 17,000 ounces in the quarter as its new mining contractor reached planned capacity.
  • Net cash rose to around $91 million at the end of September, with nearly $350 million of cash.
  • The company is targeting around 500,000 gold equivalent ounces by 2028, with a Monte do Carmo Investment decision expected by year-end.

Why Hochschild Is in Focus Today

Hochschild Mining plc (LSE:HOC) is attracting renewed attention among precious metals investors on the FTSE 250 as of 5 November 2026. The Latin American gold and silver miner is benefiting from a strengthening balance sheet, a recovering operation in Brazil and an ambitious growth plan that management says can be funded without external financing. The shares trade around 447p, and market commentary this week has highlighted the company's higher gold production as a reason the stock is back on investor radars.

The latest operational update in October showed Hochschild on track for its full-year targets, with the troubled Mara Rosa mine finally turning a corner. That progress, combined with a rising net cash position and record half-year profits earlier in the year, has made LSE:HOC a frequent subject of discussion on investor forums and social media.

Third-Quarter Production

Chief executive Eduardo Landín described the third quarter as a strong operational performance. Attributable production totalled just over 74,000 gold equivalent ounces, bringing the nine-month total to almost 226,000 ounces. Output at the San José mine in Argentina was affected by extreme seasonal weather and the mining of border vein areas, which meant group production came in slightly below some market estimates. Inmaculada in Peru, the company's flagship operation, performed in line with expectations, with lower grades offset by higher throughput.

Hochschild Mining plc (LSE:HOC) maintained full-year guidance of 300,000 to 328,000 gold equivalent ounces and revised all-in sustaining costs of $2,380 to $2,500 per ounce. Cost guidance was raised earlier in the year, reflecting higher royalties linked to strong metal prices and inflation, particularly in Argentina.

The Mara Rosa Turnaround

Mara Rosa in Brazil has been the main source of investor concern since it came into production. In the third quarter, output rose to more than 17,000 ounces as the new mining contractor completed its ramp-up to planned capacity, with material movement reaching nameplate levels towards the end of the quarter. Improvements to haul roads, access routes and pushback activities have opened up higher-grade parts of the mine, and the plant thickener has stabilised and is performing above expectations.

The company retained Mara Rosa's 2026 guidance of 67,000 to 80,000 ounces and is targeting 80,000 to 85,000 ounces a year from 2027. Higher grades are expected in the fourth quarter as pushback development provides access to better ore.

Record First Half and Stronger Balance Sheet

In August, Hochschild reported record first-half results. Revenue rose 62% to around $844 million, and adjusted EBITDA climbed 119% to about $492 million. Free Cash Flow was around $156 million, and the company moved into a net cash position. The Interim Dividend was raised sharply to 4 cents per share. By the end of September, net cash had increased further to around $91 million, with close to $350 million of cash on hand. Realised prices in the third quarter were around $3,840 per ounce of gold and $62 per ounce of silver.

A Path to 500,000 Ounces

Hochschild Mining plc (LSE:HOC) has set out a plan to increase production to around 500,000 gold equivalent ounces by 2028, roughly 60% above current levels. Growth will come from existing mines plus two major projects. Monte do Carmo in Brazil is fully permitted and on track for a final investment decision by the end of 2026. Royopata in Peru has been described by management as one of the world's best silver deposits. The company commits around $30 million a year to brownfield exploration to add ounces and extend mine lives, and it has highlighted a more favourable policy backdrop in Peru.

Risks to Consider

Key risks include operational setbacks at Mara Rosa or San José, cost Inflation in Argentina, political and Regulatory Risk in Latin America, and Volatility in gold and silver prices. Delivering two major projects in parallel also carries execution and Capital risk.

What Investors Are Watching Next

The key near-term catalyst for LSE:HOC is the final investment decision on Monte do Carmo, expected by the end of 2026. Investors will also watch fourth-quarter production, due in early 2027, to confirm full-year guidance and evidence of higher grades at Mara Rosa. Full-year results and 2027 guidance will follow.

The market will look for updates on Royopata permitting and drilling, capital allocation between growth and dividends, and further net cash build. With gold and silver prices elevated and a clear growth path, Hochschild Mining plc (LSE:HOC) remains one of the most closely watched precious metals producers on the FTSE 250.