Hochschild Mining (HOC) cuts production guidance, raises cost outlook
Hochschild Mining revised its 2025 production guidance downwards and increased its cost outlook, triggering a negative market reaction. Shares of the United Kingdom-based miner are trading down 5.0% at 625p on 15 May 2026, extending recent weakness from a previous close of 658p.
The company announced on Wednesday that it lowered its 2025 production guidance to 291,000-319,000 gold equivalent ounces, a reduction from its prior forecast of 350,000-378,000 ounces. Concurrently, Hochschild raised its 2025 all-in sustaining cost guidance to $1,980-$2,080/oz. These adjustments stem from operational issues and a temporary plant suspension at its Mara Rosa mine in Brazil, compounded by higher costs in Argentina.
The revised outlook has led to a negative rerating of the stock, which investors continue to digest. The current share price reflects a continuation of this sentiment, despite strong gold and silver prices.
When a miner's output falls short of its own forecast
Hochschild Mining is a company that digs precious metals, primarily gold and silver, out of the ground. Based in the United Kingdom, it operates mines in various countries, extracting these valuable commodities to sell to refiners and industrial users. Essentially, their business thrives on efficiently finding and producing gold and silver, with their profitability directly tied to the volume they can extract and the cost of doing so.
The specific driver behind today's share price movement is the company's significantly revised 2025 production and cost guidance. Hochschild announced it now expects to produce between 291,000 and 319,000 gold equivalent ounces next year, a notable reduction from its earlier forecast of 350,000 to 378,000 ounces. Compounding this, the company also increased its projected all-in sustaining costs for 2025 to between $1,980 and $2,080 per ounce. These adjustments stem from operational challenges and a temporary plant shutdown at its Mara Rosa mine in Brazil, alongside rising costs in Argentina.
Investors are reacting to this news by adjusting their expectations for the company's future earnings. Lower production volumes combined with higher costs mean less profit per ounce, leading to a negative reassessment of the company's value. This sentiment is reflected in Hochschild Mining shares trading down 5.0% today, currently at 625p, a drop from yesterday's close of 658p.
Think of it like a bakery that promised to deliver 350 loaves of bread next month, each costing £1 to make, but then announces it can only produce 291 loaves, and each will now cost £1.05. Customers, expecting a certain output and efficiency, would naturally be disappointed and might value the bakery less, as its future earnings potential has clearly diminished.
Hochschild Mining
Hochschild Mining plc (HOC) is a precious metals company focused on the exploration, extraction, processing, and sale of gold and silver across the Americas. Its core operations include full ownership of the Inmaculada gold/silver underground mine and the Pallancata silver/gold property, both situated in Peru's Ayacucho region. The firm also holds a 51% stake in Argentina's San Jose silver/gold mine. Beyond these active sites, Hochschild maintains a diverse portfolio of development projects spanning Peru, Argentina, Mexico, the United States, Canada, Brazil, and Chile. Additionally, it engages in power generation and sales. Established in 1911, the company is headquartered in London, United Kingdom.