REG - Hochschild MiningPLC - Q4 2022 Production Report
31/01/2023 07:00
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RNS Number : 3279O Hochschild Mining PLC 31 January 2023
_____________________________________________________________________________________
31 January 2023
Production Report for the 12 months ended 31 December 2022
Ignacio Bustamante, Chief Executive Officer said:
"Our mines have delivered a robust operational performance in the fourth
quarter, in particular at Inmaculada, where the team has also had to contend
with a significant level of local and national disruption and the associated
logistical challenges. We are proud to have ended the year only marginally
below guided production but in line with costs despite significant
inflationary pressures.
The permitting process for the Inmaculada Modified Environmental Impact
Assessment remains ongoing and we are currently expecting a government
decision by the end of the first quarter. With the assumption of a positive
outcome, we have provided guidance for 2023.
Today we have also disclosed a very encouraging initial resource from the new
Royropata zone, close to where we are currently mining at Pallancata. We have
already commenced the initial phases of the permitting process and are excited
that, with strong exploration upside potential and high-grade structures with
good widths, the new zone can be the driver of Pallancata's medium to
long-term future."
Operational highlights
§ Full year attributable production(( 1 ))
o 206,013 ounces of gold
o 11.0 million ounces of silver
o 358,826 gold equivalent ounces versus guidance of 360,000-375,000 ounces
o 25.8 million silver equivalent ounces
§ Solid operational performance despite moderate impact in Q4 from Peru
social disruption
§ 2022 all-in sustaining costs expected to meet guidance of $1,330-1,370 per
gold equivalent ounce ($18.5-19.0 per silver equivalent ounce)
Exploration & Project highlights
§ Inferred Mineral Resource of 51.2 million silver equivalent ounces
announced at Royropata Zone, Pallancata
o Average width of 5 metres at a combined Ag Eq grade of 848g/t
§ Mara Rosa project in Brazil advancing on schedule and on budget - total
project progress at 50% with first production anticipated in H1 2024
§ Positive PEA study results from Snip project in Canada
Financial position
§ Total cash of approximately $144 million as at 31 December 2022 ($387
million as at 31 December 2021) reflecting:
o $197 million invested in acquisition and project capital expenditure at
Mara Rosa
o $21 million invested in Snip project
§ Net debt of approximately $175 million as at 31 December 2022 (net cash of
$86 million as at 31 December 2021)
§ Current Net Debt/LTM EBITDA of approximately 0.69x as at 31 December 2022
§ 2022 Full Year Results rescheduled for 20 April 2023 to allow for
anticipated government decision on Inmaculada Modified Environmental Impact
Assessment ("MEIA")
2022 ESG highlights
§ Lost Time Injury Frequency Rate of 1.37 (2021: 1.26)(( 2 ))
§ Accident Severity Index of 93 (2021: 676)(( 3 ))
§ Water consumption of 171lt/person/day (2021: 193lt/person/day)
§ Domestic waste generation of 1.05 kg/person/day (2021: 1.00kg/person/day)
§ ECO score of 5.27 out of 6 (2021: 5.29)(( 4 ))
2023 guidance
§ 2023 guidance assumes Peruvian government approval for Inmaculada MEIA by
the end of Q1 2023
§ Production target:
o 301,000-314,0000 gold equivalent ounces (25.0-26.0 million silver
equivalent ounces) using 83x gold silver ratio
§ All-in sustaining costs target:
o $1,370-$1,450 per gold equivalent ounce ($16.5-$17.5 per silver equivalent
ounce) using 83x gold silver ratio
§ Total sustaining and development capital expenditure expected to be
approximately $125-135 million
§ Mara Rosa project capital expenditure expected to be approximately $100-110
million
________________________________________________________________________________________
A conference call will be held at 2.00pm (London time) on Tuesday 31 January
2023 for analysts and investors.
Dial in details as follows:
UK Toll-Free: 0808 109 0700
International Dial in: +44 (0)330 551 0200
US Toll-Free: 866-580-3963
Canada Toll-Free: 866-378-3566
Password: Hochschild
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 Q4 2022, Hochschild Mining PLC (HOC.LN) (OTCMKTS: $HCHDF) ("Hochschild" or
"the Company") delivered attributable production of 97,652 gold equivalent
ounces or 7.0 million silver equivalent ounces, slightly stronger than Q3.
Overall 2022 attributable production was 358,826 gold equivalent ounces or
25.8 million silver equivalent ounces. The small shortfall versus the overall
2022 guidance is because the reduced contribution at Pallancata could not be
fully offset by higher output at Inmaculada. This was due to local community
disturbances in Q4 along with the wider political and subsequent civil unrest
in Peru since December.
The Company reiterates that its all-in sustaining cost for 2022 is expected to
be in line with the guidance of between $1,330 and $1,370 per gold equivalent
ounce (or $18.5 and $19.0 per silver equivalent ounce).
TOTAL GROUP PRODUCTION
Q4 2022 Q3 2022 Q4 2021 12 mths 12 mths
2022
2021
Silver production (koz) 3,632 3,858 3,892 13,596 14,746
Gold production (koz) 68.11 62.57 68.22 244.63 262.39
Total silver equivalent (koz) 8,536 8,364 8,804 31,209 33,638
Total gold equivalent (koz) 118.56 116.16 122.28 433.46 467.19
Silver sold (koz) 3,596 3,895 3,877 13,536 14,712
Gold sold (koz) 67.40 62.79 67.80 242.89 260.71
Total production includes 100% of all production, including production
attributable to Hochschild's joint venture partner at San Jose.
ATTRIBUTABLE GROUP PRODUCTION
Q4 2022 Q3 2022 Q4 2021 12 mths 12 mths
2022
2021
Silver production (koz) 2,931 3,006 3,209 11,003 12,174
Gold production (koz) 56.94 52.71 56.91 206.01 221.42
Silver equivalent (koz) 7,031 6,802 7,306 25,835 28,116
Gold equivalent (koz) 97.65 94.47 101.48 358.83 390.50
Attributable production includes 100% of all production from Inmaculada,
Pallancata and 51% from San Jose.
Production
Inmaculada
Product Q4 2022 Q3 2022 Q4 2021 12 mths 12 mths
2022
2021
Ore production (tonnes treated) 323,870 348,105 341,577 1,329,177 1,349,892
Average grade silver (g/t) 182 151 191 156 174
Average grade gold (g/t) 4.29 3.75 4.03 3.81 4.05
Silver produced (koz) 1,602 1,519 1,850 5,936 6,236
Gold produced (koz) 42.36 39.82 41.99 154.85 165.73
Silver equivalent (koz) 4,652 4,386 4,873 17,085 18,168
Gold equivalent (koz) 64.61 60.91 67.69 237.29 252.34
Silver sold (koz) 1,599 1,514 1,843 5,918 6,216
Gold sold (koz) 42.15 40.06 41.95 154.93 165.86
Fourth quarter production at Inmaculada was 42,362 ounces of gold and 1.6
million ounces of silver, which amounts to a gold equivalent output of 64,612
ounces, with higher-than-expected recoveries offset by lower tonnage due to
the disruption from local and national disturbances. Overall in 2022,
Inmaculada has delivered gold equivalent production of 237,289 ounces (2021:
252,337 ounces), in line with the revised forecast published in August and
slightly reduced versus 2021 owing to budgeted lower grades.
Pallancata
Product Q4 2022 Q3 2022 Q4 2021 12 mths 12 mths
2022
2021
Ore production (tonnes treated) 155,530 145,212 128,228 559,799 530,681
Average grade silver (g/t) 139 149 177 151 212
Average grade gold (g/t) 0.68 0.64 0.85 0.69 0.84
Silver produced (koz) 600 601 648 2,368 3,261
Gold produced (koz) 2.95 2.63 3.14 10.98 13.05
Silver equivalent (koz) 812 790 874 3,158 4,200
Gold equivalent (koz) 11.28 10.97 12.14 43.86 58.33
Silver sold (koz) 561 593 642 2,315 3,263
Gold sold (koz) 2.80 2.60 3.12 10.76 13.03
In Q4, Pallancata produced 0.6 million ounces of silver and 2,950 ounces of
gold bringing the silver equivalent total to 0.8 million, with treated tonnage
slightly higher-than-expected but offset by lower grades. Overall in 2022,
Pallancata produced 3.2 million silver equivalent ounces (2021: 4.2 million
ounces) with the reduction versus the revised forecast (3.4 -3.6 million
ounces) due to the effects of lower-than-budgeted grades in line with the
current declining production profile.
San Jose (the Company has a 51% interest in San Jose)
Product Q4 2022 Q3 2022 Q4 2021 12 mths 12 mths
2022
2021
Ore production (tonnes treated) 152,692 149,138 143,398 507,189 539,229
Average grade silver (g/t) 332 413 346 369 344
Average grade gold (g/t) 5.38 4.86 5.77 5.55 5.47
Silver produced (koz) 1,430 1,739 1,393 5,292 5,250
Gold produced (koz) 22.80 20.12 23.10 78.80 83.62
Silver equivalent (koz) 3,072 3,188 3,056 10,966 11,270
Gold equivalent (koz) 42.67 44.28 42.45 152.31 156.53
Silver sold (koz) 1,435 1,788 1,392 5,303 5,233
Gold sold (koz) 22.46 20.13 22.73 77.20 81.83
The San Jose mine enjoyed a solid quarter with tonnage slightly better than
expected, resulting in production of 1.4 million ounces of silver and 22,800
ounces of gold which represents 3.1 million silver equivalent ounces. This
amounts to a 2022 total of 11.0 million silver equivalent ounces (2021: 11.3
million ounces) with the decrease versus 2021 reflecting first quarter
Covid-related employee absences and a fire in the crushing area, both of which
temporarily affected operations and explain the reduction in tonnage. This was
partially offset by better-than-budgeted gold grades.
Average realisable prices and sales
Average realisable precious metal prices in Q4 2022 (which are reported before
the deduction of commercial discounts) were $1,767/ounce for gold and
$25.8/ounce for silver (Q4 2021: $1,811/ounce for gold and $25.3/ounce for
silver).
For 2022 as a whole, average realisable precious metal prices were
$1,791/ounce for gold and $23.3/ounce for silver (2021: $1,781/ounce for gold
and $24.9/ounce for silver).
Advanced Project: Mara Rosa
The Mara Rosa project in Brazil is progressing according to schedule and
budget with total project progress at 50% and detailed engineering 96%
complete. The Company continues to expect first production in H1 2024.
Earthworks
Site clearance for the processing plant and earthworks are at an advanced
stage (92% and 96% respectively) whilst the reservoir is fully operational and
already receiving pumped water from the pit. All sites being prepared for the
processing plant have been finished on time therefore allowing civil works to
start according to schedule.
Procurement
Currently purchase orders have been issued for 90% of the project equipment.
Deliveries are on schedule with key equipment such as the crusher, conveyor
belts, HDPE pipes, aluminium cabling for transmission lines, hydrocyclones,
agitators and equipment for the wastewater treatment station already received.
Key material packages that are pending include pipes and valves which are
expected to be closed in the first quarter.
Processing plant
The civil works contractor is fully mobilised and work on the plant site area
is at 32% completion rate. The concrete base for the grinding area is complete
with walls and equipment columns currently progressing and expected to be
finished by the end of February whilst deliveries for the tanks are due the
same month.
Infrastructure
Construction of infrastructure for the main access route is ongoing to allow
delivery of materials and heavy equipment. A preliminary drainage system that
will guarantee access to critical path areas was completed in Q4 whilst the
main project drainage system is 60% complete.
The power supply for the mine will be provided by the building of a 67km,
138kv transmission line from the Porangatu substation with work currently 45%
advanced and expected to be completed by June 2023.
Sustainability
Environmental controls to monitor construction work have been implemented to
ensure compliance with applicable permits. In September, the "Knowledge Trail"
was inaugurated with the presence of local authorities and the Hochschild COO.
The trail consists of an open ecological area with 13 stations highlighting
local history, culture, archaeological and environmental information, and
project history. The trail will be used as a learning tool by local schools
among other local stakeholders and to date almost 500 people have visited.
Local supplier and labour training programmes are continuing with over 80
local suppliers already on standby.
Health and Safety
Hochschild's health and safety corporate standards are currently being
implemented at the project, including the introduction of the Company's
Seguscore safety indicator. The project has recently surpassed one million
injury-free working hours and year-to-date Frequency and Severity Indexes are
currently at zero. Finally, Covid-19 prevention protocols are in place with no
positive cases recorded to date.
Development Project: Snip
At the end of the year, a Preliminary Economic Assessment was received from
Ausenco Engineering Canada Inc. on the Snip project in British Columbia.
Highlights are given below.
Mineral Resource Estimate (effective as of 20 June 2022)
Category Domain Tonnes (000) Au Grade (g/t) Total Au Metal
Content
(000 oz)
Indicated Twin Main 3,847 9.8 1,217
Twin West 293 8.1 76
Total Indicated 4,140 9.7 1,293
Inferred Twin Main 829 12.3 329
Twin West 207 11.0 73
Total Inferred 1,036 12.1 402
Notes
1 These mineral resources are not mineral reserves and do not have
demonstrated economic viability.
2 The independent qualified person MRE, as defined by National Instrument
("NI") 43-101 guidelines, is Marc Jutras P.Eng., M.A.Sc., Principal, Mineral
Resources at Ginto Consulting Inc.
3 Follows CIM definitions (2014) for mineral resources.
4 Results are presented in-situ and undiluted and considered to have
reasonable prospects for economic extraction.
5 Reported for an underground scenario at a cut-off grade of 3.0 g/t
6 The number of tonnes and ounces were rounded to the nearest thousand.
7 Estimates are in total for the property and have not been adjusted to
reflect the proportion attributable to Hochschild on the basis of its joint
venture participation.
The update of the mineral resources of the project follows a drilling campaign
of 83 surface and underground holes carried out in 2021 and 2022. The drill
hole database is comprised of 3,507 historical drill holes and 415 holes
drilled by Skeena from 2016 to 2021 and 69 holes drilled by Hochschild in
2022. The historical holes were validated from a set of twin holes drilled by
Skeena in 2021 and Hochschild in 2022.
Mining
The Snip Project contemplates the underground exploitation of the Mineral
Resources of both Twin Main and Twin West deposit at a planned rate of 1,350
to 1,500 tpd over an eight-year period. Total mineralised material in the Life
of Mine (LOM) is 3.7mt @ 7.1 g/t Au, with an average gold production of 100
koz per year. A pre-production period of two years, including rehabilitation
and dewatering of existing tunnels and the ramp-up period in year two, will
allow for the start of full production beginning in year three.
Processing
The process plant design is based on composite samples that represent the
underground mining plan. The circuit selected is a gravity and whole ore leach
process to produce gold doré bars. The plant is designed for a through put of
1,350 tpd based on availability of 92%. The metallurgical recovery is
estimated at 96%. The process flowsheet consisted of: three-stage crushing and
ball mill grinding circuits; gravity and leach + carbon-in-leach (L/CIL)
circuits; desorption and carbon regeneration; electrowinning and smelting; and
cyanide destruction of tailings using SO₂/air process.
Capital Costs
The total initial capital cost is C$346.5m and the life-of-mine sustaining
cost is C$239.9m. The initial capital costs are summarised below:
Initial capital costs
Description C$m
Underground Mine 113.7
Process Plant 52.5
Tailings Storage Facility 35.4
Infrastructure 47.1
Total Direct Costs 248.7
Indirect costs 39.5
Contingency 58.3
Total 346.5
Project economics
The overall economics of the Project have been evaluated using a gold price of
US$1,700/oz, CAD/USD rate of 0.75 and a discount rate of 5%. Snip's valuation
has been estimated at C$183m post-tax NPV, with an IRR of 17%. The payback
period is expected to be 4 years from the start of production.
Key project economics
Description Units Value
Au Payable 000oz 797
Processed Tonnes Mt 3.65
Au Grade g/t 7.08
After-tax valuation indicators
Undiscounted cash flow C$m 373
NPV@5% C$m 183
Payback period years 4
IRR % 17
Project Capital (initial) C$m 347
AISC C$/oz Au 1,081
Next steps
The team is currently continuing with the environmental baseline work and
evaluating drill results to define potential drill programmes for 2023 and
beyond.
Brownfield exploration: Pallancata Royropata resource
An initial Inferred Mineral Resource Estimate for the Royropata Zone to the
west of the existing Pallancata mine was completed in Q4. The Company
estimates that the zone contains an Inferred Mineral Resource of 1.88 million
tonnes at an average grade of 667 g/t Ag and 2.42 g/t Au containing 51.2
million silver equivalent ("Ag Eq") ounces at a combined Ag Eq grade of 848
g/t (see table below).
The programme started in 2019 with two long drill holes, with the second drill
hole intercepting 37.6m of quartz vein without economic values. In 2022, after
a period of geologic interpretation and 9,800m of drilling, a new vein system,
including the Marco West, (the main structure) Laura, Demian, Royropata 1, and
Royropata 2 veins was discovered (see maps below). The Royropata system is a
tabular sinistral strike-slip fault filled by hydrothermal quartz with
crustiform, coloform, banded, and breccia textures. The vein strikes 80-90°
and dips 60° to 75° to the southeast, reaching 750m in length and 200m in
depth. The host rocks are dacitic tuffs, andesitic tuffs, and andesitic flow.
The contained minerals are mainly: pyrargyrite, proustite, argentite,
electrum, and pearceite-polybasite at the precious metal level. The principal
gangue mineral is quartz and carbonates and silicified tuff fragments with an
argillic alteration. The Marco vein remains open to the southwest for another
900m according to the current geological interpretation.
Audited Royropata Inferred Mineral Resource Estimate
Vein Tonnes (k) Ag (g/t) Au (g/t) Ag Eq (g/t) Ag Eq (moz)
Marco West 1,497 763 2.81 973 46.8
Laura 247 203 0.62 250 2.0
Royropata 2 80 495 1.48 606 1.6
Demian 27 444 1.55 560 0.5
Royropata 1 26 285 0.81 346 0.3
Total/Average 1,876 667 2.42 848 51.2
Notes
1 Mineral Resources are 100% attributable to Hochschild.
2 Metal prices used for the Mineral Resources calculations: Au: US$1,800/oz,
Ag: US$24/oz.
3 AgEq = (Au x 75) + Ag.
4 AgEq Cut-off: 99 g/t AgEq.
5 Totals have been rounded to the appropriate number of significant figures.
Qualified Persons
P&E Mining Consultants Inc. ("P&E") was engaged by Hochschild Mining
PLC to undertake an audit of the Royropata Zone Mineral Resources prepared by
Hochschild. As part of the reporting requirements for a Mineral Company listed
under the London Stock Exchange regulations, it is required that Mineral
Resource Estimates be stated in accordance with international reporting
standards. To satisfy this requirement, P&E has followed the standards of
the Joint Ore Reserves Committee of the Australian Institute of Mining and
Metallurgy ("JORC" code 2012), National Instrument 43-101(2014) and the
Canadian Institute of Mining and Metallurgy ("CIM") Best Practices Guidelines
(2019).
P&E audited the Hochschild Mineral Resource Estimate for the Royropata
Zone (part of the Pallancata Mining Unit) to confirm it is in compliance with
JORC, NI 43-101 (2014) and CIM Best Practices Guidelines (2019) and the
methodologies utilized have generated reliable estimates of tonnage and grade
for the mineral assets. The audit was carried out by David Burga, P.Geo. and
Fred Brown P.Geo. under the direction of P&E President, Eugene Puritch
P.Eng., FEC, CET. All of the persons named herein are independent Qualified
Persons as defined by National Instrument 43-101 and Competent Persons as
defined by JORC by reason of education, affiliation with a professional
association and past relevant work experience.
P&E concludes that the Royropata Mineral Resource Estimate provides a
reasonable estimation of the Mineral Resource and has been reported in
accordance with the requirements of JORC (Code 2012), NI 43-101 (2014) and CIM
Best Practices Guidelines (2019). P&E notes that the Roypatra 1 Inferred
Mineral Resource is based on three drill hole intercepts, and the Demian
Inferred Mineral Resource is based on four drill hole intercepts. Both Mineral
Resources are relatively small and can be expected to change as additional
drilling results become available. P&E is of the opinion that Hochschild
has adopted a generally prudent and acceptable approach to their Mineral
Resource Estimate and that their estimate meets the compliancy requirements of
JORC, NI 43-101 and CIM
2023 next steps
In 2023, the Company will develop the Mineral Resource including infill
drilling to convert the Inferred Minerals Resources to Indicated and will also
proceed with basic engineering as well as the environmental permitting
process, including baseline studies. In addition, over the next few
quarters, the brownfield team will also target the upside potential in the
Royropata zone, including the extension of the Marco vein, the Royropata veins
and the Yanacochita and Bolsa structures according to ongoing permitting
progress. These veins are expected to add significant additional resources.
Other Brownfield exploration
Inmaculada
In Q4 2022, drilling was carried out targeting the Eduardo and Josefa veins.
In addition, there was 2,900m of infill drilling in the Juliana,
Susana-Beatriz, Bety, Barbara and Noelia structures.
Pallancata
At Pallancata, 2,115m of resource drilling was carried out in the Cinthya,
Lucas, Marco, Mateo, Pablo NE, and Yurika Piso veins. Selected results are
below:
Results (potential drilling)
Vein
Cinthya DLLCN-A17: 1.3m @ 4.8g/t Au & 401g/t Ag
DLLCN-A19: 2.2m @ 2.8g/t Au & 334g/t Ag
San Jose
At San Jose, the brownfield team carried out 5,500m of potential drilling in
the Ayelen SE, Maura, Maura East and Olivia veins and 2,800m of infill
drilling in the Julia, Isabel, Odion, Molle and Perla veins. Selected results
are below:
Vein Results (potential/resource drilling)
Maura SJD-2572: 2.5m @ 4.0g/t Au & 216g/t Ag
Olivia SJM-609: 1.1m @ 3.0g/t Au & 357g/t Ag
Mara Rosa
At Mara Rosa, 5,466m of both potential and resource drilling were carried out
in Q4 in the Campos Verdes, Estrela, Jacuba, Speti and Joao Lemos shear zones.
Target Results (potential/resource drilling)
Campos Verdes 1 22CV-001: 5.5m @ 1.5g/t Au
Campos Verdes 2 22CV-004: 1.5m @ 0.6g/t Au
Campos Verdes 3 22CV-004: 1.4m @ 0.7g/t Au
Estrela 1 22ETR-019: 1.2m @ 0.9g/t Au
22ETR-015: 1.3m @ 1.8g/t Au
Estrela 2 22ETR-009: 2.4m @ 0.7g/t Au
22ETR-010: 1.0m @ 1.4g/t Au
22ETR-011: 1.8m @ 0.8g/t Au
22ETR-012: 5.2m @ 0.5g/t Au
22ETR-013: 4.3m @ 2.5g/t Au
22ETR-017: 1.2m @ 4.0g/t Au
22ETR-018: 2.0m @ 0.4g/t Au
22ETR-019: 1.1m @ 0.6g/t Au
Jacuba 1 22JAC-001: 1.8m @ 0.7g/t Au
22JAC-002: 0.9m @ 1.3g/t Au
22JAC-013: 1.5m @ 0.7g/t Au
Jacuba 2 22JAC-001: 1.3m @ 1.3g/t Au
Speti 22P-122A: 1.5m @ 12.6g/t Au
22SPT-004: 1.0m @ 0.8g/t Au
22SPT-005: 1.9m @ 0.7g/t Au
22SPT-009: 2.0m @ 0.8g/t Au
Financial position
Total cash was approximately $144 million as at 31 December 2022, resulting in
net debt of approximately $175 million.
Outlook
Please note that the following guidance for 2023 is subject to Peruvian
government approval of the Inmaculada MEIA during the first quarter of 2023.
Any significant delays or a negative decision would impact the existing mine
plan and resulting levels of production in 2023. Failure to secure approval of
the MEIA would result in a suspension of operations at Inmaculada during H2
2023 until a new MEIA is approved. The specific date of suspension will depend
on operational factors that are being evaluated.
The overall attributable production target for the year is 301,000-314,000
gold equivalent ounces or 25.0-26.0 million silver equivalent ounces. 5
2023 Attributable production split
Operation Oz Au Eq Moz Ag Eq
Inmaculada 204,000-211,000 16.9-17.5
Pallancata 24,000-27,000 2.0-2.2
San Jose 73,000-76,000 6.1-6.3
Total 301,000-314,000 25.0-26.0
The all-in sustaining cost from operations in 2023 is expected to be between
$1,370 and $1,450 per gold equivalent ounce (or $16.5 and $17.5 per silver
equivalent ounce).
2023 AISC split
Operation $/oz Au Eq $/oz Ag Eq
Inmaculada 1,260-1,320 15.2-15.9
Pallancata 2,050-2,310 24.7-27.8
San Jose 1,400-1,470 17.0-17.7
Total from operations 1,370-1,450 16.5-17.5
The capital expenditure budget for 2023 is approximately $125-135 million
allocated to sustaining and development expenditure. The Mara Rosa project
capital expenditure budget is set at $100-110 million.
2022 Capital expenditure split
Operation Sustaining & development capital expenditure ($m)
Inmaculada 92-99
Pallancata 2-3
San Jose (100%) 31-33
Total 125-135
____________________________________________________________________________________
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) 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 currently operates three underground epithermal vein mines, two
located in southern Peru and one in southern Argentina. Hochschild also owns
the Mara Rosa Advanced Project in Brazil as well as 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 Unless otherwise stated, 2022 equivalent figures calculated using the
previous Company gold/silver ratio of 72x. All 2023 forecasts assume the
average gold/silver ratio for 2022 of 83x
2 Calculated as total number of accidents per million labour hours.
(( 3 ))Calculated as total number of days lost per million labour hours.
4 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.
5 All forecast equivalent figures assume a gold/silver ratio of 83x.
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