HOC Hochschild Mining Plc

RNS Number:0435U
Hochschild Mining PLC
09 May 2008

9 May 2008

                                 AGM Statement

At the Company's Annual General Meeting held in London today, Eduardo
Hochschild, Executive Chairman of Hochschild Mining plc, commented:


Our first full year as a publicly listed company was a transformational one. We
successfully expanded from three mines in one country to six mines in three
countries, Peru, Mexico and Argentina. We delivered a strong set of financial
results - adjusted EBITDA increased by 37% to $148 million and net profit more
than doubled to $85 million resulting in pro forma earnings per share of 28
cents. Our strong financial performance and our confidence in the business going
forward underpinned a full year dividend of 9.2 cents per share.


We are pleased with operational performance in the first four months of 2008 and
are confident that we will achieve our full year production target of 26 million
attributable silver equivalent ounces (16.9 million attributable silver ounces
and 153 thousand attributable gold ounces). The current year is one of
consolidation, with the Group focused on optimising existing mines while
ensuring maximum efficiency, stringent cost control and the highest standards of
health, safety and environmental performance.


The capacity expansions we are undertaking at Arcata, Selene and San Jose are
progressing well and are on track for completion in the second half of 2008. In
addition, we anticipate completing the feasibility study at San Felipe, our key
development project in northern Mexico, by the end of this year with production
scheduled to commence in 2010. Since the year end, we have announced a 19.99%
strategic investment in Lake Shore Gold Corp., providing an attractive entry
into a high-grade, long-life asset in a mining friendly jurisdiction, Canada.


This year we have also announced the appointments of Miguel Aramburu as Chief
Executive Officer and Ignacio Bustamante as Chief Operating Officer. These
appointments are indicative of Hochschild Mining's evolution as a public company
committed to good corporate governance and of our focus on the creation of
shareholder value.


With the achievements of 2007, our San Felipe project moving towards feasibility
and our strong project pipeline, we are on track to create the operational
platform that will enable us to deliver our 2011 production target of 50 million
attributable silver equivalent ounces.


We remain positive on the fundamentals for silver and gold given the prospects
for investment demand based on continued US dollar weakness, concerns about
growing inflation and a further inflow of money into the commodities sector. We
are poised to benefit from the favourable price environment as a fully unhedged
company and look forward to 2008 as a year of consolidation of the growth
platform we have created.




Enquiries:

Hochschild Mining plc
Wray Barber +44 (0)20 7152 6014
Head of Investor Relations

Ignacio Rosado +511 437 6007
Chief Financial Officer

Jose-Augusto Palma +511 317 2026
Senior Adviser, Executive Committee

Finsbury
Robin Walker +44 (0)20 7251 3801
Public Relations
__________________________________________________________

About Hochschild Mining plc:

Hochschild Mining plc is a leading precious metals company listed on the London
Stock Exchange (HOCM.L for Reuters / HOC LN for Bloomberg) with a primary focus
on the exploration, mining, processing and sale of silver and gold. Hochschild
currently operates five underground epithermal vein mines, four located in
southern Peru and one in southern Argentina and one open pit mine in northern
Mexico. Hochschild also has one early development project in Mexico and sixteen
long-term prospects throughout Latin America. Hochschild has over forty years
experience in the mining of precious metal epithermal vein deposits.

For further information please visit www.hochschildmining.com



                      This information is provided by RNS
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