Hochschild Mining reported attributable production of 74,004 gold equivalent ounces in the third quarter, taking nine month output to 225,835 ounces, and confirmed it remains on track for full year guidance of 300,000 to 328,000 gold equivalent ounces. Revised all in sustaining cost guidance stands at 2,380 to 2,500 dollars per gold equivalent ounce, reflecting continued cost pressure in Argentina from domestic inflation.
Mara Rosa in Brazil carried the improvement. The open pit gold mine produced about 17,000 ounces in the quarter, up from 14,610 ounces in the second quarter, with September alone delivering 8,019 ounces, its strongest month this year. A transition to a new mining contractor was completed in the quarter, operations reached planned mining capacity, and a thickener that caused water management problems in the first half has stabilised with recoveries back at planned levels.
The other mines were softer. Inmaculada in Peru produced 45,163 gold equivalent ounces, down from 51,140 ounces a year earlier as gold grade fell to 2.70 grams per tonne from 3.25 grams. San Jose in Argentina, held 51 percent, was hit by extreme winter weather and mining in the border areas of its veins, with grades expected to recover in the fourth quarter.
The balance sheet improved with the quarter. Hochschild ended September with total cash and short term investments of about 349 million dollars and a net cash position of about 91 million dollars, up from 51 million dollars at the end of June. Chief executive Eduardo Landin said the Mara Rosa turnaround puts the group in position to advance Monte Do Carmo in Brazil, where a final investment decision is targeted by the end of the year.