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Hedge funds and other large speculators boosted net-long positions by 11% to 197,362 as of Nov. 12, the lowest in 14 weeks.
Hochschild Mining (LON: HOC) lowered on Wednesday its full-year production guidance after swinging to a pre-tax loss of $66.1 million in the half-year compared with a profit of $5.4 million in the same period of 2022.
The precious metals producer said the negative figure was caused mainly by two impairments totalling $66.9 million related to losses at the Azuca and Crespo projects in southern Peru, as well as delays in securing a modified environmental impact assessment for its flagship Inmaculada gold-silver mine, also in Peru.
Hochschild also mentioned accelerated mine development costs at its 51%-owned San José mine in Argentina, as well as an updated valuation of the company’s investment in Aclara Resources (TSX: ARA) as factors contributing to the half-year loss.
Adjusted earnings before interest, tax, depreciation and amortization fell 24% to $99.5 million from $130.5 million in 2022, while revenue dropped 9.7% to $314 million from $347.8 million.
Adjusted earnings before interest, tax, depreciation and amortisation fell 24% to $99.5 million from $130.5 million.
The company lowered its full-year production guidance for gold and silver to 289,000-303,000 gold-equivalent ounces and 24 million-25 million silver-equivalent ounces. The previous targets ranges were 301,000-314,0000 and 25 million-26 million, respectively.
Its full-year guidance for all-in sustaining costs were also lifted to $1,490-$1,580 per gold-equivalent ounce and $18-$19 per silver-equivalent ounce.
Hochschild said that following the approval of the new EIA for Inmaculada, it is in “an excellent position” to unlock the mine’s geological potential.
The permit, valid for 20 years, allows Hochschild to resume brownfield exploration and develop high-grade reserves and resources at the property, it said.
Besides delays in securing Inmaculada’s permit, the company has recently had to deal with protests and civil unrest in Peru affecting the operation, as well as the departure of long-term CEO Ignacio Bustamante at the end of August.
“I would like to express my gratitude to all stakeholders for their ongoing support in what has been a prolonged period of uncertainty for the company,” the company’s new chief executive officer Eduardo Landin, said.
“We are, however, entering a new phase with renewed impetus, and we are looking forward to a busy second half of construction and exploration…as we work to deliver on our commitments to all stakeholders.”
Commissioned in 2015, Inmaculada consists of 40 mining concessions and is responsible for the lion’s share of the company’s overall production.
Hochschild said its Mara Rosa project in Brazil was advancing on budget and on schedule, with total project progress being at 92%. The company expects first production from Mara Rosa in the first half of 2024.
