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Good morning, everyone. Well, thank you very much for being here today at the presentation, and thank you very much to the organization for this fantastic conference. Let’s go to the first slide. Part of the disclaimer. Well, basically, we are a company that we have been in the Americas for the last hundred years. We have three mines in three jurisdictions, and two underground and one open pit. Our financial profile today is very strong. We have a dividend policy in place, and we have a disciplined capital allocation strategy also in place.
Our growth pipeline is very, very interesting. We have two near-term growth projects. We have a million ounces, gold ounces in our resource base. And we have very interesting investments in Tiernan Gold and Aclara Resources. 2026, we have been focused on the reorganization of Mara Rosa, which is complete. We have already started with the Ruropata permit. We’ll talk about Ruropata later, which is the best project that we have in our portfolio. We have Monte do Carmo, a new project in Brazil that we are deciding to start it probably at the end of this year. Promising brownfield results, strong ESG metrics, and continuing with our guidance in terms of production. And we have just revised our all-in sustaining cash costs based on the effects of high prices on those costs.
If we are going to the next one, we have our strategy. Very simple strategy. Brownfield as a main source of growth, expanding our life of mine, operational excellence, lean philosophy across the company, cost efficiencies, project development, and we are very present on site. Of course, ESG safety focus is our main priority. And since I took the role of CEO, we have changed our community approach, giving us very good results. And finally, disciplined capital allocation, funding with our balance sheet our growth. We have debt repayment and of course value accretive M&A as Monte do Carmo as Mara Rosa.
Today, as I said, we have two main projects. Monte do Carmo, we are trying to get FID at the end of the year. It’s a very interesting new project in Brazil. And Ruropata, which is the continuation of our old mine, Pallancata. As you know, this mine has a Selene plant with 3,000 tons capacity. And today we have achieved the admissibility of the environmental permit within the Peruvian government.
We all know that there is a lot of inflation pressures in the industry, and we are working on different initiatives to try to control this cost. In that list, you have the ten most important initiatives that we have implemented. I would like to mention that we have a new transportation and hauling contract in Mara Rosa that is giving us good cost. We have also hyperjets implemented in Inmaculada that has increased 0.5% recoveries. And also, we have deployed across the whole company artificial intelligence for all the administration task, and also for part of the operations procedures.
Going to Inmaculada. Inmaculada is our flagship. It’s been producing around 200,000 ounces for many, many years. Today what we have is a mine that has 5.5 years at 180,000 ounces per year in terms of life of mine with very good all-in sustaining cash costs. And of course, we are going to accomplish our guidance in 2026. Inmaculada, we have brought 5.2 million ounces in the past ten years through our brownfield exploration strategy. And we believe that today, 2026, we have different places at Inmaculada, at the South, at Eduardo Belt. And we are aiming to bring at least 250,000 ounces this year. But of course, we believe that there is many, many potential to continue expanding life of mine.
Going to the Ruropata project. As I said, you can see on that table that we have 50 million tons with 1.5 grams of gold and 412 grams of silver. This is mainly a silver deposit. And in total, in gold equivalent, it’s like 3.3 million ounces on resources. And the average width of the deposit is 30 meters, so it’s promising to be a very, very efficient deposit. At least we believe that we’ll have a deposit that will give us 150,000 ounces gold equivalent, but it will be most silver, for the next ten, fifteen years. So very, very interesting project. Today, we have filed the permit within the new Peruvian government that we’ll talk about later, and we got the admissibility of this permit.
If we go into the next, we believe that we have a lot of potential in terms of brownfield exploration. So we will continue exploring, as you can see on the map, that we have certain new areas that could connect the old Pallancata mine down there to the area of Pablo. And we just got a drilling permit that give us new 50 platforms of exploration. So that will be the way to continue exploring between ’27 and ’30 and bring more resources. And as you can see in terms of the district between Inmaculada, Pallancata, and Selene, we have a huge area of our concession, and we believe that we’ll continue doing exploration and replacing all those resources that we produce in the next ten, fifteen years. I have to say that we’re using the latest technology on exploration, artificial intelligence, underground long-hole drilling, microgravity survey, et cetera.
This is very good for Peru. We have the new government. Clearly the new government is addressing the restoring of stability, confidence, and growth of the country. And the early move of this government is giving us that they want to be pragmatic and market-orientated. At the Mining Energy Ministry, we have Guillermo Shinno, which is a very well-known professional in the sector. And basically, the aim of this new government is to try to formalize mining, tackle illegal mining, and simplify permitting. So sounds like music for us.
Also in the economic team, we have Julio Velarde. He has been named the best governor of a central bank in the world. We have Elmer Cuba as a Ministry of Economics, and we are trying to get a GPD growth of above 3.5%. So this is very important for investors. Today, we have an improved sentiment. We have renewed expectations. And we believe that since we will still have some challenges on permitting because the laws are there, there is a lot of good attitudes from the government to help companies to develop all the projects that we have in Peru.
Going to Brazil, I have to say that I feel very proud of what we have done in Mara Rosa. It’s not here in the presentation, but I have to say that Mara Rosa produced more than 8,000 ounces in September. So that’s a total plant capacity and all the processes at Mara Rosa, the mine, the crushing area, milling, leaching, filtering, is working at very good level. If we go to the next page, you can see the trend in terms of crushing, milling, and filtering, and it’s been extremely hard work and bringing very talented people to our operations in Brazil that we got these results.
Let me show you some pictures, and you can see the pit that has been pushed back, and now we have the high-grade mineral available. You have the filters working, dry stack, a state-of-the-art, the new thickener that it took us ninety days to implement it and commission. Ore stockpile full of it, and everything is ready for the rainy season. So I have to say that we have our learning curve in Brazil, but today we are ready to continue growing in Brazil as a company. In terms of the potential of Mara Rosa, you see the orogenic trend. Mara Rosa is in the middle, and we are doing a lot of exploration in this area to try to expand life of mine on Mara Rosa. Mara Rosa has something around ten years of production between 80,000 and 90,000 ounces per year.
And if we go into the next, we have our new project called Monte do Carmo. Monte do Carmo is in Tocantins. It’s a very friendly place in Brazil, very close by to Goiania, in the north of Goiania. It’s close to the Mara Rosa operation. It’s something like four to five hours away driving. And the project is fully permitted. It has excellent infrastructure, cities, paved highways, hydropower plants around. So we believe that we are having a very interesting project.
Today, we are finishing basic engineering at the Wash Rock facilities and pre-stripping engineer. The plant engineer is finished by Ausenco. And today we are putting to the suppliers the critical packages like milling, crushing, the power line, et cetera, that we need to start building this project probably at the beginning of next year. We expect to present to the market an FID by the end of 2026. And once we have this basic engineering finished this year, we will develop the detail engineering and using a fast-track strategy, build these projects as we build Mara Rosa. We aim to get into production at the end of 2028. And this mine, it will give us around 90,000 ounces of gold per year.
Finally, San Jose is a mine that we have been in production since 2007. It’s accomplishing its guidance. We have something like three years in terms of life of mine and nothing else really. We believe that we still have exploration potential at San Jose, and we continue doing some brownfield drilling. And finally, before we go to the financial flexibility, what I have to say is that between our current production assets, plus these two projects in 2028, we believe that we can reach something about 500,000 ounces of gold as a company. So it’s a big jump of around 60% of production.
Going to our financial flexibility, we have a cash positive position, $309 million, $51 million net cash. And we have given an interim dividend of $21 million. We believe that with this financial position, we can finance easily the Monte do Carmo and Rui O Pata projects, and that will be the aim.
Finally, I have to say that we present to the market a valuation opportunity. As you can see, we have been able to turn around Mara Rosa. Mara Rosa today is producing at nameplate. We have a very, very strong Inmaculada performance. And we have Rui O Pata, Monte do Carmo growth opportunities in place to be developed in the next two years. We have the cash, and also we have the know-how, and the situation in Brazil has improved a lot. So we believe that we are undervalued if we compare with our peers, and that’s why we recommend Hochschild Mining shares as an opportunity.
And finally, as a conclusion, I have to say that Mara Rosa, as I said, is on track. We have a very strong balance sheet. We have announced the $21 million dividend. And of course, at the end of the year, we will have a very strong dividend since we have our dividend policy in place. And today, remember that we decided to go for our core and non-core strategy. Tiernan and Immaculada was non-core, but today, following our strategy, we have those two assets at $300 million value. The future is presenting the FID of Monte do Carmo, continue doing brownfield and bringing life of mine, expand life of mine. Rui O Pata, one of the best silver deposits in the world with three million ounces gold equivalent. And of course, a very strict discipline capital allocation in place that has been ruling our performance for the past three years. That’s all for me. I don’t know if I have left time for questions, but thank you so much for being here this morning.
Yeah. We have time for a very quick question if there is one in the audience. If not, I will ask a very quick question over here as well. Eduardo, in terms of Inmaculada, you’ve talked about a pretty decent mine life. Is there an opportunity to bring that mine life forward? Is there opportunity to expand the mine life or, sorry, expand the production profile?
Yes. Let me go back, if I can, to the page at Inmaculada because I can answer this question here. Here we go. Inmaculada has been producing from Angela Vein, and today we are at Eduardo Belt. Still we have all the South and Mina Escucho. So we believe that we can continue adding life of mine. Today what we have, based on our life of mine exercise, is that we have between 5.5 and 6 years at 180,000 ounces. That’s without considering any new resources. So the idea is between now and the next four or five years is continue putting around $30 million on exploration budget to try to expand not only Inmaculada, every single site in Cochin Mining. We believe that brownfield exploration is where you bring the maximum value to the company. It’s where you discover. You don’t buy ounces. You discover, and it’s extremely cheap to discover, if you’re lucky, new ounces for the company.
And maybe one more quick question for me as well. You have a very large land package in Peru. Is there any exploration work that you’re doing regionally that could showcase the next opportunity for the company?
Of course. Let me go here to the district. That’s the district. And as you can see on the district, Selene used to be an old mine. We have a plan of 3,000 tons. We have Pallancata that we are adding, Royopata, which is coming with ten, fifteen years life of mine. We have Inmaculada, so we have two strategic plants in an area of 150,000 hectares. So the idea is to continue doing in Ascan Mauricio, Condorillo, Saycata, all those areas that we have. Also very thing which is very important is that we have a very good relationship with all the communities. So the idea is to continue doing exploration and bringing them to the business. That’s the new relationship with the communities, and I believe that we could expand life of mines in general, counting with these two plants. And also we could see possible expansions of the plant, if that’s the case, if we have a huge amount of resources.
Perfect. Thank you. Thank you so much. Great presentation. Thank you. Thank you very much. [audience applauding]
