Q3 and 9 month Production Report

Hochschild Mining posts strong Q3 output, maintains 2026 guidance, and boosts cash to $349 million.

What the company is saying

Hochschild Mining PLC, led by CEO Eduardo Landin, highlights a robust Q3 2026 operational performance and reiterates its confidence in meeting full-year production and cost forecasts. The company frames Mara Rosa’s turnaround as nearly complete, attributing improved output to a new mining contractor, with September production exceeding 8,000 ounces of gold. Inmaculada is described as performing in line with expectations, while San Jose’s lower output is explained by extreme winter weather. The company emphasizes progress on its growth pipeline, including the submission of a revised Environmental Impact Assessment for Royropata in Peru and advancing studies at Monte Do Carmo in Brazil, targeting a final investment decision by December 2026. Hochschild maintains its 2026 production guidance of 300,000 to 328,000 gold equivalent ounces and all-in sustaining cost guidance of $2,380–$2,500 per ounce, despite ongoing cost pressures in Argentina. The narrative is confident, underpinned by increased cash reserves and detailed ESG metrics.

What the data suggests

Q3 2026 attributable production was 54,732 ounces of gold and 1.5 million ounces of silver, totaling 74,004 gold equivalent ounces or 5.7 million silver equivalent ounces. Nine-month attributable production reached 166,160 ounces of gold and 4.6 million ounces of silver, or 225,835 gold equivalent ounces and 17.4 million silver equivalent ounces. Mara Rosa’s Q3 output improved to 17,001 gold equivalent ounces, with September marking its strongest month at 8,019 ounces, reflecting the operational turnaround. Inmaculada produced 29,571 ounces of gold and 1.2 million ounces of silver in Q3, equating to 45,163 gold equivalent ounces, and is on track for full-year guidance of 174,000–185,000 ounces. San Jose’s Q3 production dropped to 15,980 ounces of gold and 0.5 million ounces of silver due to weather, but grades are expected to recover in Q4. Cash, cash equivalents, and short-term investments rose to $349 million at 30 September 2026 from $309 million at 30 June, with net cash up to $91 million from $51 million. The Net Cash/LTM EBITDA ratio is 0.10x, indicating a strong balance sheet. Average realised gold and silver prices in Q3 were $3,840/oz and $61.8/oz, respectively, both up year-on-year. The company’s disclosures are detailed, with mine-by-mine breakdowns, drilling meters, and ESG statistics, but profitability metrics are not provided. The evidence supports the company’s claim of operational improvement and financial stability.

Analysis

The announcement is generally positive in tone and provides detailed, realised production, cash, and ESG metrics for Q3 and the first nine months of 2026. Most key claims about operational performance are supported by hard numbers, including mine-by-mine output and cash balances, which have improved quarter-on-quarter. However, several forward-looking statements—such as being 'on track to meet full-year guidance' and the expectation of a final investment decision at Monte Do Carmo by year-end—are not yet realised and lack detailed supporting evidence or binding commitments. The language around 'strong operational performance' and 'significant progress across our growth pipeline' is somewhat promotional, as the actual realised progress at Monte Do Carmo and Royropata is limited to ongoing studies and permitting, not completed milestones. No large capital outlay is disclosed as imminent, and the financial position appears stable, so capital intensity risk is low. The absence of profitability metrics (net income, EBITDA, operating profit) alongside production and cost data means the signal cannot be rated above weak_positive.

Risk flags

• ●San Jose’s Q3 production was negatively impacted by extreme winter weather, highlighting ongoing operational risks from climate and geography. Such disruptions can materially affect output and revenue, especially when mining in challenging environments.
• ●Cost pressures in Argentina are acknowledged, with inflation affecting the company’s cost base. Persistent or worsening inflation could erode margins and challenge the company’s ability to meet cost guidance.
• ●The Monte Do Carmo project’s final investment decision is scheduled for December 2026, but the announcement does not confirm binding commitments or construction readiness. Delays or changes in permitting, procurement, or engineering could push back project timelines and defer expected growth.
• ●Profitability metrics such as net income or EBITDA are not disclosed, limiting visibility into the company’s bottom-line performance. While cash and production figures are strong, the absence of profit data leaves uncertainty about overall financial health.

Bottom line

Hochschild Mining delivered solid Q3 production, improved cash reserves to $349 million, and reaffirmed its 2026 guidance, with operational improvements most visible at Mara Rosa. The company’s narrative is credible, supported by detailed production and financial figures, though the absence of profit metrics leaves some uncertainty about true earnings power. Key risks include operational volatility at San Jose, inflation-driven cost pressures in Argentina, and execution of the Monte Do Carmo investment decision, which is imminent. Investors should watch for Q4 production delivery and confirmation of Monte Do Carmo’s FID in December 2026. The most important takeaway is that Hochschild’s operational turnaround and cash generation are on track, but sustained performance and project execution will determine if guidance is met and value is realized.

Announcement summary

(LSE:HOC) Hochschild Mining PLC reported its Q3 and nine-month production results for the period ended 30 September 2026. The company delivered Q3 attributable production of 54,732 ounces of gold and 1.5 million ounces of silver, totaling 74,004 gold equivalent ounces or 5.7 million silver equivalent ounces. For the first nine months of 2026, attributable production reached 166,160 ounces of gold and 4.6 million ounces of silver, or 225,835 gold equivalent ounces and 17.4 million silver equivalent ounces. At Mara Rosa in Brazil, the operational turnaround is nearing completion, with September production exceeding 8,000 ounces of gold and Q3 production at 17,001 gold equivalent ounces. Inmaculada in Peru produced 29,571 ounces of gold and 1.2 million ounces of silver in Q3, equating to 45,163 gold equivalent ounces, with year-to-date output at 138,848 gold equivalent ounces. San Jose, in which Hochschild holds a 51% interest, was impacted by extreme winter weather, producing 15,980 ounces of gold and 0.5 million ounces of silver in Q3, or 1.8 million silver equivalent ounces. The company maintains its 2026 production guidance of 300,000 to 328,000 gold equivalent ounces and revised all-in sustaining cost guidance of $2,380-$2,500 per gold equivalent ounce, despite cost pressures in Argentina. Total cash, cash equivalents, and short-term investments stood at approximately $349 million as of 30 September 2026, up from $309 million at 30 June 2026. Net cash was approximately $91 million at 30 September 2026, compared to $51 million at 30 June 2026, with a Net Cash/LTM EBITDA ratio of approximately 0.10x. Average realisable precious metal prices in Q3 2026 were $3,840/ounce for gold and $61.8/ounce for silver, while for the first nine months of 2026, prices averaged $4,063/ounce for gold and $73.0/ounce for silver. The company submitted a revised Environmental Impact Assessment for the Royropata project in Peru in August 2026. At Monte Do Carmo in Brazil, studies, engineering, and procurement advanced, with a final investment decision targeted for December 2026. Brownfield drilling highlights included 5,598 meters at Inmaculada, 1,900 meters at San Jose, 1,161 meters of potential and 4,390 meters of resource drilling at Mara Rosa, and 647 meters of potential and 302 meters of resource drilling at Monte Do Carmo. ESG metrics for the period included a Lost Time Injury Frequency Rate of 0.84 (FY 2025: 0.97), fresh water use per tonne of ore processed at 0.17 m3/tonne (FY 2025: 0.27 m3/tonne), recycled waste at 76.1% (FY 2025: 81.6%), local workforce at 68.2% (FY 2025: 65.9%), and women in the workforce at 11.2% (FY 2025: 10.6%). The company will hold a conference call for analysts and investors at 2.30pm (London time) on 21 October 2026.

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