REG - Hochschild MiningPLC - 2024 Report on Payments to Governments

Hochschild MiningAnnouncement

26/06/2025 15:00

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RNS Number : 6176O  Hochschild Mining PLC  26 June 2025

 

__________________________________________________________________________

26 June 2025

 

2024 Report on Payments to Governments

 

 

Introduction

This Report provides an overview of the payments to governments made by
Hochschild Mining PLC and its subsidiaries (hereinafter referred to as
"Hochschild Mining") in 2024 as required under the UK's Report on Payments to
Governments Regulations 2014 (as amended) (the "UK Regulations"). The UK
Regulations apply to large UK incorporated companies like Hochschild Mining
PLC that are involved in the exploration, prospection, discovery, development
and extraction of minerals. This Report is also intended to satisfy the
requirements of the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority in the United Kingdom.

 

Basis for preparation

Legislation: This Report is prepared in accordance with the UK Regulations.

 

Reporting entities: This Report includes payments to governments arising from
the activities of Hochschild Mining.

 

Activities: Payments made by Hochschild Mining to governments arising from
activities involving the exploration, prospection, discovery, development and
extraction of minerals ("extractive activities") are disclosed in this Report.
For a fully integrated project, which does not have an interim contractual cut
off point where a value can be attached or ascribed separately to the
extractive activities and to other processing activities, payments to
governments will not be artificially split but disclosed in full.

 

Government:  Government includes any national, regional or local authority of
a country, and includes a department, agency or entity that is a subsidiary of
a government.

 

Project:  Payments are reported at project level except that payments that
are not attributable to a specific project or are in respect of obligations
imposed at entity level are reported by entity. Project is defined as
operational activities which are governed by a single contract, licence,
lease, concession or similar legal agreement, and form the basis for payment
liabilities with a government. If such agreements are substantially
interconnected, those agreements are to be treated as a single project.
"Substantially interconnected" means forming a set of operationally and
geographically integrated contracts, licences, leases or concessions or
related agreements with substantially similar terms that are signed with a
government giving rise to payment liabilities. Such agreements can be governed
by a single contract, joint venture or other overarching legal agreement.
Indicators of integration include, but are not limited to, geographic
proximity, the use of shared infrastructure and common operational
management.

 

Payment: Of the types of payments required to be reported on under the UK
Regulations, the payments made by Hochschild Mining in 2024 fall within the
following categories:

 

·     Taxes: These are taxes paid by Hochschild Mining on its income,
profits or production (which include resource severance tax), including those
settled by a government on behalf of Hochschild Mining under a tax-paid
concession. Payments are reported net of refunds. Consumption taxes, personal
income taxes, sales taxes, property and environmental taxes are excluded.

·     Royalties: These are payments for the rights to extract mineral
resources, typically at set percentage of revenue less any deductions that may
be taken.

·     Licence fees, rental fees, entry fees and other considerations for
licences and/or concessions ("Fees"):  These are fees and other sums paid as
consideration for acquiring a licence for gaining access to an area where
extractive activities are performed. Administrative government fees that are
not specifically related to the extractive sector, or to access to extractive
resources, are excluded. Also excluded are payments made in return for
services provided by a government.

 

OTHER

Operatorship: When Hochschild Mining makes a payment directly to a government
arising from a project, regardless of whether Hochschild Mining is the
operator, the full amount paid is disclosed even where Hochschild Mining as
the operator is proportionally reimbursed by its non-operating venture
partners through a partner billing process (cash-call).

 

Cash and in-kind payments: Payments are reported on a cash basis. There were
no in-kind payments made in respect of the reporting year.

 

Materiality Level:  For each payment type, total payments below £86,000 to a
government are excluded from this Report.

 

Exchange Rate: Payments made in currencies other than US Dollars are
translated for the purposes of this Report using the exchange rate on the date
of payment.

 

SUMMARY OF PAYMENTS TO GOVERNMENT (Unaudited)

US$

 Countries                                                                             Taxes                 Royalties                   Fees       Total
 Peru                                                                                  23,495,520            -                           825,074    24,320,594
 Argentina                                                                             405,150               7,148,295                   1,220,871  8,774,316
 Brazil                                                                                3,805,899             1,854,981                   -          5,660,880
 Chile                                                                                 -                     -                           472,979    472,979
 Total                                                                                 27,706,569            9,003,276                   2,518,924  39,228,769

 PAYMENTS BY COUNTRY (Unaudited)

 US$

 (a)    Peru
 By Government Department

                                                                               Taxes                  Royalties                   Fees                      Total
 Superintendencia Nacional de Administración Tributaria                        23,495,520             -                           -                         23,495,520
 Instituto Geológico Minero y Metalúrgico                                      -                      -                           825,074                   825,074
 Total                                                                         23,495,520              -                          825,074                   24,320,594

 By Entity/Project

                                                                               Taxes           Royalties                   Fees                             Total
 Entity
 Compañía Minera Ares S.A.C.                                                   23,495,520      -                           312,105                          23,807,625
 Project
 Inmaculada                                                                     -               -                          283,713                          283,713
 Arcata                                                                         -               -                          113,782                          113,782
 Pallancata                                                                     -               -                          115,474                          115,474
 Total                                                                         23,495,520       -                          825,074                          24,320,594

 (b)    Argentina (in relation to the San Jose mine)

 By Government Department
                                                                               Taxes           Royalties            Fees                                    Total
 Secretaria de Recursos Hidricos - Ministerio de Energia y Mineria Provincial   -               -                   1,220,871                               1,220,871
 Administración Gubernamental de Buenos Aires (AGIP)                           405,150          -                    -                                      405,150
 Secretaria de Estado de Mineria de la Provincia de Santa Cruz                 -               7,148,295            -                                       7,148,295
 Total                                                                         405,150         7,148,295            1,220,871                               8,774,316

 By Entity

                                                                               Taxes           Royalties            Fees                                    Total
 Minera Santa Cruz S.A.                                                        405,150         7,148,295            1,220,871                               8,774,316
 Total                                                                         405,150         7,148,295            1,220,871                               8,774,316

 (c)    Brazil (in relation to the Mara Rosa mine)

 By Government Department

                                                                               Taxes           Royalties            Fees                                    Total
 RFB - Receita Federal do Brasil                                               3,805,899        -                    -                                      3,805,899
 ANM - Agencia Nacional de Mineração                                            -              1,854,981             -                                      1,854,981
 Total                                                                         3,805,899       1,854,981            -                                       5,660,880
 By Entity

                                                                               Taxes           Royalties            Fees                                    Total
 Amarillo Mineracao do Brasil Limitada                                         3,805,899       1,854,981            -                                       5,660,880
 Total                                                                         3,805,899       1,854,981            -                                       5,660,880

 (d)    Chile

 By Government Department
                                                                               Taxes           Royalties            Fees                                    Total
 Tesorería General de la República                                              -               -                   472,979                                 472,979
 Total                                                                          -               -                   472,979                                 472,979

 

 By Entity/Project

                             Taxes  Royalties  Fees     Total
 Entity
 Andina Minerals Chile Ltd.   -      -         472,979  472,979
 Total                        -      -         472,979  472,979
 Project
 Volcan                      -      -          472,979  472,979
 Total                        -      -         472,979  472,979

 

 

__________________________________________________________________________

 

Enquiries:

Hochschild Mining PLC

Raj Bhasin
 
 
                           +44 (0)7825 533495

Company Secretary

 

Hudson Sandler

Charlie Jack
 
 
                         +44 (0)20 7796 4133

Public Relations

__________________________________________________________________________

 

About Hochschild Mining PLC

Hochschild Mining PLC is a leading precious metals company listed on
the London Stock Exchange (HOCM.L / HOC LN) and crosstrades on the OTCQX
Best Market in the U.S. (HCHDF), with a primary focus on the exploration,
mining, processing and sale of silver and gold. Hochschild has over fifty
years' experience in the mining of precious metal epithermal vein deposits and
operates two underground epithermal vein mines: Inmaculada, located in
southern Peru; and San Jose in southern Argentina, and an open pit gold mine,
Mara Rosa, located in the state of Goiás, Brazil.  Hochschild also has
numerous long-term projects throughout the Americas.

 

LEI: 549300JK10TVQ3CCJQ89

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