§ Inmaculada operating at full capacity
§ 2020 full year guidance reissued
§ Overall attributable production target for 2020 of 280,000-290,000 gold equivalent ounces or 24-25m silver equivalent ounces
§ All-in sustaining costs expected to be $1,250-$1,290 per gold equivalent ounce ($14.5-15.0 per silver equivalent ounce)
§ Revised total sustaining and development capital expenditure expected to be approximately $110-120 million
§ 2020 brownfield exploration budget increased to $37 million with greenfield budget at $9 million
Hochschild Mining PLC (HOC.LN) (OTCMKTS: $HCHDF) (“Hochschild” or “the Company”) is today announcing that its flagship Inmaculada mine is currently running at full capacity. As with all its operations, the Company has implemented a more stringent set of health protocols at the mine than mandated by authorities and introduced a comprehensive testing programme. The aim is to prioritise the health of the Company’s employees above business continuity and this has resulted in a steady ramp-up that started on 26 July 2020.
The Company is also announcing today its revised 2020 guidance following the completion of an assessment of the overall impact from the stoppages to date and the resulting revised mine plans which also reflect ongoing Covid-19 related restrictions.
The overall revised attributable production target for 2020 is 280,000-290,000 gold equivalent ounces or 24.0-25.0 million silver equivalent ounces. The reduction versus the original guidance is principally due to the operational stoppages and also reflects temporary delays in mine sequencing.
The revised all-in sustaining cost from operations in 2020 is expected to be between $1,250 and $1,290 per gold equivalent ounce or $14.5 and $15.0 per silver equivalent ounce. The increase versus the original guidance reflects the impact of Covid-19 related stoppages including: reduced production resulting in higher capital expenditure per ounce; temporary lower grades due to revised mine plan sequencing; and the impact of government transport restrictions on the availability of people at San Jose. In addition, the figure reflects an increase in infill drilling at Inmaculada to convert Inferred into Measured and Indicated resources.
The overall revised capital expenditure budget for 2020 is approximately $110-120 million allocated to sustaining and development expenditure and reflects deferred mine development at Inmaculada and San Jose due to the stoppages offset by increased infill drilling at Inmaculada and additional mine development at Pallancata.
The brownfield exploration budget for 2020 has been increased to approximately $37 million with the greenfield and advanced project budget now approximately $9 million.
Ignacio Bustamante, CEO commented,
“I am pleased to report that the team has carried out a successful remobilisation and ramp-up at our flagship Inmaculada operation and that we are now running the mine at full capacity. We have also reinstated our guidance for 2020 which reflects the impact of the ongoing restrictions in both Peru and Argentina but is expected to deliver a solid second half of production with strong expected cashflow generation.”
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 has numerous long-term projects throughout the Americas.