Finance
UK's Hochschild Mining shares plunge 20% after Brazil gold mine shutdown
Published by Global Banking & Finance Review®
Posted on June 10, 2025
1 min readLast updated: January 23, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on June 10, 2025
1 min readLast updated: January 23, 2026
Hochschild Mining shares fell 20% after a shutdown at Brazil's Mara Rosa mine due to low gold output. The company plans a review to improve production.
(Reuters) -Hochschild Mining issued a six-week shutdown at its Mara Rosa mine, following lower-than-expected gold output by the end of May, the British precious metals company said on Tuesday, sending shares tumbling down over 20%.
The Brazilian gold mine, which began commercial production in early 2024, has produced just over 25,000 ounces of gold for the January to May period due to heavier-than-expected rainfall and contractor issues.
The company had expected 94,000-104,000 ounces of gold production in 2025.
Shares of the company saw their steepest one-day decline since November 2021, dropping 19.7% to 242 pence by 0747 GMT.
The company will conduct a comprehensive review of all mining, processing, and disposal activities at Mara Rosa to identify bottlenecks and improve output.
"We hope that the end result (after shutdown) is a more flexible pit, aligned to a debottlenecked plant, allowing more stable throughput and more reliable output," Peel Hunt analysts said in a note, and cut their production estimates of the mine to 60,000 ounces of gold from 84,000 in 2025.
(Reporting by Yamini Kalia in Bengaluru, Editing by Tasim Zahid)
The shutdown was due to lower-than-expected gold output caused by heavier-than-expected rainfall and contract issues.
The mine produced just over 25,000 ounces of gold during the January to May period.
Shares of Hochschild Mining saw their steepest one-day decline since November 2021, dropping 19.7% to 242 pence.
The company will conduct a comprehensive review of all mining, processing, and disposal activities at Mara Rosa to identify bottlenecks and improve output.
Analysts from Peel Hunt hope the end result will be a more flexible pit and a debottlenecked plant, allowing for more stable throughput and reliable output.
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