REG - Hochschild MiningPLC - Q3 2024 Production Report
23/10/2024 07:00
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RNS Number : 2017J Hochschild Mining PLC 23 October 2024
_________________________________________________________________________________
23 October 2024
Production Report for Q3 and the 9 months ended 30 September 2024
Full year guidance maintained after strongest quarterly production in almost 5
years
Eduardo Landin, Chief Executive Officer said:
"Hochschild Mining's third quarter has been the strongest in almost five years
and we expect to meet our full year production target. In Brazil, our new Mara
Rosa mine has been steadily ramping up to full production rates in the period
and the Inmaculada flagship mine in Peru has continued to deliver the benefits
from our continuous improvement programme. Furthermore, given the current
strength of our balance sheet, we were able to repay approximately $45 million
of debt. With the current metal price momentum along with the forecast strong
production in the last quarter, we can look forward to further robust cashflow
generation."
Operational highlights
§ Strong rise in production(( 1 (#_ftn1) ))
o 69,996 ounces of gold
o 2.2 million ounces of silver
o 96,327 gold equivalent ounces
o 8.0 million silver equivalent ounces
§ Robust 9-month operational performance
o 173,748 ounces of gold
o 6.3 million ounces of silver
o 249,120 gold equivalent ounces
o 20.7 million silver equivalent ounces
§ Reiterating 2024 guidance:
o Production of 343,000-360,000 gold equivalent ounces
o All-in sustaining costs of $1,510-1,550 per gold equivalent ounce
Project & Exploration highlights
§ Mara Rosa production in September at 9,000 ounces of gold with a strong Q4
expected
§ Exploration & technical work at Monte do Carmo project in Brazil almost
complete
§ 2024 Brownfield drilling programme adding significant resources at all
operating units
Strong financial position
§ $45 million of debt repaid in Q3
§ Total cash of approximately $85 million as at 30 September 2024 ($89
million as at 30 June 2024)
§ Net debt of approximately $227 million as at 30 September 2024 ($271
million as at 30 June 2024)
§ Current Net Debt/LTM EBITDA reducing rapidly to approximately 0.6x as at 30
September 2024
ESG highlights
§ Lost Time Injury Frequency Rate of 1.03 (FY 2023: 0.99)(( 2 (#_ftn2) ))
§ Accident Severity Index of 64 (FY 2023: 37)(( 3 (#_ftn3) ))
§ Water Consumption of 137lt/person/day (FY 2023: 163lt/person/day)
§ Domestic waste generation of 0.93 kg/person/day (FY 2023:
0.93kg/person/day)
§ ECO score of 5.58 out of 6 (FY 2023: 5.76)(( 4 (#_ftn4) ))
________________________________________________________________________________________
A conference call will be held at 2.00pm (London time) on Wednesday 23 October
2024 for analysts and investors.
Dial in details as follows:
UK Toll-Free Number: 0808 109 0700
International Dial in: +44 (0)330 551 0200
US Toll-Free Number: 866-580-3963
Canada Toll-Free Number: 866-378-3566
Pin: Hochschild Q3 Results
Please dial into the call approximately ten minutes before the 2.00pm start
time.
A recording of the conference call will be available on demand on the
Company's website: www.hochschildmining.com (http://www.hochschildmining.com)
________________________________________________________________________________________
Overview
In Q3 2024, Hochschild Mining PLC (HOC.LN) (OTCMKTS: $HCHDF) ("Hochschild" or
"the Company") delivered attributable production of 96,327 gold equivalent
ounces or 8.0 million silver equivalent ounces, representing a 16% increase
versus the second quarter of 2024. This was supported by another strong period
from the Inmaculada mine and rising output from the new Mara Rosa operation in
Brazil. Overall year-to-date attributable production is 249,120 gold
equivalent ounces or 20.7 million silver equivalent ounces.
The Company reiterates that it is on track to meet its overall attributable
production target for 2024 of 343,000-360,000 gold equivalent ounces or
28.0-29.9 million silver equivalent ounces. The impact from Mara Rosa's
previously disclosed ramp-up issues during Q2 will be offset by stronger
production at Inmaculada resulting from the mine's ongoing continuous
improvement projects.
The Company reiterates that its all-in sustaining cost for 2024 is expected to
be in line with the guidance of between $1,510 and $1,550 per gold equivalent
ounce (or $18.2 and $18.7 per silver equivalent ounce).
TOTAL GROUP PRODUCTION
Q3 2024 Q2 2024 Q3 2023 YTD 2024 YTD 2023
Silver production (koz) 2,658 2,589 3,205 7,674 8,598
Gold production (koz) 78.15 66.37 60.81 198.31 161.36
Total silver equivalent (koz) 9,145 8,097 8,252 24,134 21,991
Total gold equivalent (koz) 110.18 97.56 99.42 290.77 264.95
Silver sold (koz) 2,688 2,669 2,911 7,802 8,336
Gold sold (koz) 80.27 66.06 53.93 198.52 153.72
Total production includes 100% of all production, including production
attributable to Hochschild's joint venture partner at San Jose.
ATTRIBUTABLE GROUP PRODUCTION
Q3 2024 Q2 2024 Q3 2023 YTD 2024 YTD 2023
Silver production (koz) 2,185 2,093 2,624 6,256 7,067
Gold production (koz) 70.00 57.81 50.00 173.75 133.36
Silver equivalent (koz) 7,995 6,892 6,774 20,677 18,135
Gold equivalent (koz) 96.33 83.03 81.62 249.12 218.50
Attributable production includes 100% of all production from Inmaculada,
Pallancata and 51% from San Jose.
Production
Inmaculada
Product Q3 2024 Q2 2024 Q3 2023 YTD 2024 YTD 2023
Ore production (tonnes treated) 318,178 274,750 300,076 855,952 835,981
Average grade silver (g/t) 181 198 166 187 174
Average grade gold (g/t) 3.95 4.29 3.97 4.14 3.89
Silver produced (koz) 1,693 1,578 1,442 4,780 4,015
Gold produced (koz) 37.76 35.62 36.19 110.08 98.04
Silver equivalent (koz) 4,827 4,534 4,446 13,916 12,153
Gold equivalent (koz) 58.16 54.63 53.57 167.66 146.42
Silver sold (koz) 1,726 1,645 1,340 4,758 3,901
Gold sold (koz) 38.74 37.18 33.32 109.93 94.71
Third quarter production at Inmaculada was 37,762 ounces of gold and 1.7
million ounces of silver which amounts to a gold equivalent output of 58,162
ounces with better-than-expected tonnage and grades resulting from the
implementation of continuous improvement projects at site contributing to a
strong operational period. Year-to-date, Inmaculada's output is 167,664 gold
equivalent ounces (Q3 YTD 2023: 146,424 gold equivalent ounces), a 15%
improvement on the first nine months of 2023 when, in particular in the first
half, the mine was impacted by permit delays.
San Jose (the Company has a 51% interest in San Jose)
Product Q3 2024 Q2 2024 Q3 2023 YTD 2024 YTD 2023
Ore production (tonnes treated) 152,352 143,333 152,729 421,205 424,791
Average grade silver (g/t) 227 252 271 244 260
Average grade gold (g/t) 3.94 4.38 5.16 4.28 4.85
Silver produced (koz) 965 1,011 1,184 2,895 3,125
Gold produced (koz) 16.63 17.46 22.05 50.12 57.15
Silver equivalent (koz) 2,346 2,460 3,015 7,055 7,868
Gold equivalent (koz) 28.26 29.64 36.32 85.00 94.80
Silver sold (koz) 957 1,022 994 3,036 2,935
Gold sold (koz) 15.81 17.04 18.03 51.10 52.69
The San Jose mine delivered a solid quarter with grades temporarily lower than
expected. Production in the period was 1.0 million ounces of silver and 16,633
ounces of gold which represents 2.3 million silver equivalent ounces. This
therefore amounts to a nine-month total of 7.1 million silver equivalent
ounces (Q3 2023 YTD: 7.9 million ounces).
Mara Rosa
Product Q3 2024 Q2 2024 Q3 2023 YTD 2024 YTD 2023
Ore production (tonnes treated) 589,452 466,552 - 1,142,196 -
Average grade silver (g/t) - - - - -
Average grade gold (g/t) 1.34 1.32 - 1.31 -
Silver produced (koz) - - - - -
Gold produced (koz) 23.75 13.29 - 38.11 -
Silver equivalent (koz) 1,971 1,103 - 3,163 -
Gold equivalent (koz) 23.75 13.29 - 38.11 -
Silver sold (koz) - - - - -
Gold sold (koz) 25.73 11.84 - 37.57 -
The Mara Rosa mine reached commercial production in mid-May and throughout the
third quarter steadily increased output. Approximately 6,700 ounces of gold
was produced in July, 8,000 ounces in August and September's output was just
over 9,000 ounces with the plant consistently operating at full capacity.
Overall production in the quarter was 23,752 ounces.
Average realisable prices and sales
Average realisable precious metal prices in Q3 2024 (which are reported before
the deduction of commercial discounts) were $2,422/ounce for gold and
$29.8/ounce for silver (Q3 2023: $1,926/ounce for gold and $23.6/ounce for
silver). For the first nine months of 2024, average realisable precious metal
prices were $2,296/ounce for gold and $27.98/ounce for silver (Q3 YTD 2023:
$1,946/ounce for gold and $23.6/ounce for silver).
Brownfield exploration
Inmaculada
During the third quarter of the year, the team carried out a further 2,674m of
drilling for potential in the Kary, Mia and Huarmapata structures as well as
11,278m of resource drilling in the Tesoro, Nicolas, Tesoro Techo and Lia
veins.
Vein Results (resources)
Tesoro IMM24-385: 23.6m @ 21.4g/t Au & 589g/t Ag
IMM24-387A: 1.7m @ 4.2g/t Au & 193g/t Ag
IMM24-393B: 8.5m @ 2.4g/t Au & 23g/t Ag
IMS24-232: 1.5m @ 0.6g/t Au & 63g/t Ag
IMS24-233: 8.4m @ 6.9g/t Au & 485g/t Ag
IMS24-234: 1.7m @ 0.8g/t & 145g/t Ag
IMS24-238A: 9.8m @ 7.5g/t & 64g/t Ag
IMS24-239: 18.5m @ 10.2g/t & 399g/t Ag
IMS24-240: 4.8m @ 0.2g/t & 3g/t Ag
IMS24-241: 1.7m @ 1.0g/t & 44g/t Ag
IMS24-242A: 1.8m @ 0.2g/t & 6g/t Ag
IMS24-246A: 1.6m @ 5.1g/t & 119g/t Ag
IMS24-248: 1.3m @ 0.9g/t & 186g/t Ag
IMS24-250: 1.1m @ 1.9g/t & 36g/t Ag
IMS24-254: 1.0m @ 0.5g/t & 6g/t Ag
IMS24-257: 34.3m @ 2.2g/t & 72g/t Ag
Tesoro Techo IMM24-385: 2.6m @ 5.7g/t Au & 18g/t Ag
IMM24-387A: 1.4m @ 3.2g/t Au & 59g/t Ag
IMM24-387B: 3.4m @ 12.9g/t Au & 153g/t Ag
IMS24-233: 1.2m @ 1.1g/t Au & 27g/t Ag
IMS24-234: 1.0m @ 3.6g/t Au & 437g/t Ag
IMS24-250: 3.2m @ 1.9g/t Au & 106g/t Ag
IMS24-257: 2.2m @ 6.1g/t Au & 591g/t Ag
Nicolas IMM24-385: 2.1m @ 24.0g/t Au & 16g/t Ag
IMM24-393B: 3.8m @ 1.8g/t Au & 69g/t Ag
IMS24-239: 1.2m @ 5.0g/t Au & 17g/t Ag
IMS24-241: 2.3m @ 2.5g/t Au & 98g/t Ag
IMS24-242A: 3.8m @ 9.9g/t Au & 47g/t Ag
Lia IMS24-239: 2.3m @ 2.2g/t Au & 130g/t Ag
IMS24-242A: 2.5m @ 0.5g/t Au & 9g/t Ag
IMS24-244: 1.1m @ 0.2g/t Au & 11g/t Ag
During the fourth quarter, the Company expects to carry out a further 3,500m
of potential drill holes in the Kary, Mia, Huarmapata, Laura and Eduardo veins
as well as 1,000m of resource drilling in the Tesoro structure.
San Jose
During Q3, the team carried out a further 3,563m of drilling for potential in
the Frea, Mara and Maura veins as well as 5,943m of infill drilling in the
Ayelen extension, Antonela and Julia veins.
Vein Results (potential)
Maura SJD-2881: 0.8m @ 7.5g/t Au & 82g/t Ag
SJD-2879: 3.1m @ 6.9/t Au & 55/t Ag
SJD-2892: 5.0m @ 2.4/t Au & 69/t Ag
New vein SJD-2858: 1.2m @ 1.3g/t Au & 219g/t Ag
SJM-682: 1.1m @ 3.3g/t Au & 115g/t Ag
SJM-684: 0.8m @ 2.1g/t Au & 11g/t Ag
During the fourth quarter, drilling for potential will continue in the Frea
and Odin veins.
Mara Rosa
In the third quarter at Mara Rosa, 3,011m of resource drilling was executed
below the existing Posse pit. Drilling will continue into Q4.
Vein Results (potential)
Posse 24POSP_005: 53.0m @ 1.0g/t Au
24POSP_008: 1.0m @ 0.3g/t Au
24POSP_011: 32.9m @ 1.0g/t Au
24POSP_012: 12.0m @ 1.1g/t Au
24POSP_013: 17.9m @ 1.0g/t Au
24POSP_014: 39.0m @ 1.0g/t Au
24POSP_015: 28.1m @ 1.0g/t Au
24POSP_017: 9.5m @ 0.9g/t Au
Financial position
Total cash was approximately $85 million as at 30 September 2024 resulting in
net debt of approximately $227 million versus $271 million at the end of the
second quarter. The reduction was due to strong cashflow generation in the
period resulting in the repayment of $45 million of debt.
_____________________________________________________________________________________
Enquiries:
Hochschild Mining PLC
Charles Gordon
+44 (0)20
3709 3264
Head of Investor Relations
Hudson Sandler
Charlie Jack
+44 (0)207 796 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.
_____________________________________________________________________________________
Forward looking statements
This announcement may contain forward looking statements. By their nature,
forward looking statements involve risks and uncertainties because they relate
to events and depend on circumstances that will or may occur in the future.
Actual results, performance or achievements of Hochschild Mining PLC may, for
various reasons, be materially different from any future results, performance
or achievements expressed or implied by such forward looking statements.
The forward looking statements reflect knowledge and information available at
the date of preparation of this announcement. Except as required by the
Listing Rules and applicable law, the Board of Hochschild Mining PLC does not
undertake any obligation to update or change any forward looking statements to
reflect events occurring after the date of this announcement. Nothing in this
announcement should be construed as a profit forecast.
This announcement contains information which prior to its release could be
considered inside information.
LEI: 549300JK10TVQ3CCJQ89
- ends -
1 (#_ftnref1) All equivalent figures assume a gold/silver ratio of 83x
2 (#_ftnref2) Calculated as total number of accidents per million labour
hours
(( 3 (#_ftnref3) ))Calculated as total number of days lost per million labour
hours.
4 (#_ftnref4) The ECO Score is an internally designed Key Performance
Indicator measuring environmental performance in one number and encompassing
numerous fronts including management of waste water, outcome of regulatory
inspections and sound environmental practices relating to water consumption
and the recycling of materials.
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