Hochschild Mining shares rise 5.7% as silver price surges

Hochschild Mining shares rise 5.7% as silver price surges

Hochschild Mining (LSE: HOC.L) shares surged by 5.7% on July 2, 2025, following a significant increase in the price of silver. The stock, which has been under pressure due to operational challenges at its Mara Rosa mine in Brazil, saw a boost as investors reacted to the upward movement in silver prices.

The company's shares were trading at £1.37 billion ($1.84 billion) in London afternoon trading on Wednesday, with the increase driven primarily by the positive impact of silver's price increase. Hochschild Mining is one of the few companies with a significant exposure to silver, making it a beneficiary of the recent price surge.

The silver price increase comes as a welcome relief for Hochschild Mining, which has been grappling with operational issues at its Mara Rosa mine. In February 2024, the mine made its first pour, but operations have been impacted by heavier-than-usual seasonal rainfall and contractor performance issues. These challenges led to a temporary suspension of the processing plant for essential maintenance and mechanical filter repairs.

The company's CEO, Eduardo Landin, stated that the operational issues at Mara Rosa have restricted access to higher-grade zones within the pit, exacerbating existing issues with filtering processes and delaying efforts to recover from mine waste removal backlogs carried over from 2024.

Despite these challenges, gold production for the first half of 2025 at Mara Rosa totaled 28,416 ounces, up from 14,354 ounces in the same period last year. The company's full-year production forecast for Mara Rosa has been slashed by more than half, from 94,000-104,000 ounces to 35,000-45,000 ounces [1].

The silver price surge has provided a temporary boost to Hochschild Mining's share price, but the company will need to address the operational challenges at Mara Rosa to sustain long-term growth. Investors will be closely watching the company's efforts to improve production and reduce costs at the Brazilian mine.

References:
[1] https://www.mining.com/hochschild-mining-plunges-after-slashing-mara-rosa-guidance/