London-based precious metals miner, Hochschild Mining reported a significant jump in half-year profit on Wednesday, driven by higher gold production and prices. However, the company lowered its production guidance for 2025 due to sharply lower output from its Mara Rosa mine in Brazil.

The company's pretax profit after exceptional items more than doubled to $140.1 million in the six months to June 30, compared to $69.4 million in the same period last year. Revenue rose 33% to $520.0 million from $391.7 million.

Despite the positive financial performance, Hochschild Mining's shares fell 14% to 262.60 pence in early trading, making it the worst performer in the FTSE 250 index.

The company attributed the decline in production guidance to an operational review and temporary suspension of the processing plant at Mara Rosa, which has since restarted.

Hochschild Mining now expects to produce between 291,000 and 319,000 gold equivalent ounces in 2025, down from its previous guidance of 350,000 to 378,000 ounces.

The company also cited higher costs in Argentina, driven by inflation and lower production, as a factor contributing to the revised guidance. All-in sustaining costs are now expected to be between $1,980 and $2,080 per gold equivalent ounce, up from $1,587 to $1,687 previously.