TIDMHOC 
 
RNS Number : 5336U 
Hochschild Mining PLC 
26 June 2009 
 

26 June 2009 
 
 
Hochschild to increase operational efficiency by converting Arcata's production 
to doré 
 
 
-    $25-30 million investment to convert 100% of Arcata's production to doré 
-    Benefits of doré: 
    - Maximises revenue by reducing commercial discounts 
    - Lowers working capital requirements and selling expenses 
    - Provides more stable commercial terms 
-    Supports Hochschild's strategy of producing profitable ounces 
 
 
Hochschild Mining plc ("Hochschild") is pleased to announce a project to convert 
100% of Arcata's production to doré. This initiative will improve operational 
efficiency, maximise revenue, lower working capital requirements and allow the 
Company to benefit from more stable commercial terms. 
 
 
Arcata produced approximately 10.4 million silver equivalent ounces in 2008 
which was sold in the form of concentrate to third parties for smelting and 
refining. By converting Arcata's concentrate to doré, Hochschild will maximise 
net revenue as commercial discounts for doré are significantly lower than the 
discounts applied to concentrate. 
 
 
Arcata will also benefit from lower working capital requirements and greater 
certainty over its cashflow as the sales cycle for doré is shorter (10 days on a 
weighted average basis compared to 60 days for concentrate) and pricing is less 
volatile. In addition, selling expenses are expected to decrease as a result of 
lower transportation costs, handling and shipping expenses. 
 
 
The facilities and equipment necessary to convert Arcata's concentrate to doré 
will be installed at Hochschild's Ares operation, which already produces doré 
and is located approximately 16 miles from Arcata. This will enable the Company 
to leverage the existing infrastructure at Ares and therefore reduce operational 
risk. The capital expenditure required to complete the project is expected to be 
in the region of $25 - $30 million with an approximate 2 year pay-back. The 
conversion is scheduled to be completed in the second half of 2010. 
 
 
Following the conversion of Arcata, three of Hochschild's operations will 
produce 100% doré (Ares, Moris and Arcata). San José currently produces both 
doré and concentrate and Pallancata produces 100% concentrate. 
 
 
Miguel Aramburú, Chief Executive Officer of Hochschild Mining plc, commented: 
 
 
"The conversion of Arcata's production to doré is part of our strategy to 
maximise operational efficiency and produce profitable ounces. With 30% of our 
revenue currently generated from doré, this is a natural step for the Company 
and will lower working capital requirements, commercial discounts and selling 
expenses at Arcata and allow Hochschild to benefit from more stable commercial 
conditions." 
 
 
Enquiries: 
Hochschild Mining plc 
Isabel Lutgendorf     +44 (0)20 7907 2934 
Head of Investor Relations 
 
 
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, one in southern Argentina, one open pit mine in northern Mexico 
and numerous long-term prospects throughout the Americas. 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 
            The company news service from the London Stock Exchange 
   END 
 
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