2012 AGM Address to Shareholders (9389D)
May 23 2012 - 6:49AM
UK Regulatory
TIDMHOC
RNS Number : 9389D
Hochschild Mining PLC
23 May 2012
23 May 2012
2012 Annual General Meeting
Address to Shareholders
Hochschild Mining plc ("Hochschild") held its Annual General
Meeting of shareholders in London today. Eduardo Hochschild,
Executive Chairman, made the following remarks:
"I am pleased to report that Hochschild Mining plc once again
delivered a resilient performance in 2011, despite the continued
global economic crisis. The company met its key objectives for the
year; including the completion of feasibility studies for two of
our Advanced Projects, the achievement of our annual operating
targets, and the ongoing evolution of our exploration based
strategy.
To give you a brief overview of results: production was in line
with expectations, at 22.6 million attributable silver equivalent
ounces, and the Company recorded an impressive 42% increase in
EBITDA to $563 million, on the back of revenue of almost $1
billion, principally due to strong precious metals prices. Earnings
per share was up by 75% to 49 cents.
With that in mind, the Board has recommended a final dividend
for the year of 3 cents per share, bringing the total dividend for
2011 to 6 cents per share, a 20% increase over the total dividend
for 2010. This confirms the confidence we have in the business
going forward and the ongoing strength of our balance sheet.
In 2011, our management team firmly embedded the exploration
strategy within the Company. During the year we completed over
315,000 metres of drilling and we raised our exploration budget for
2012 to $90 million, another record for the Company. This
considerable commitment has already begun to bear fruit, with an
11% increase in the life-of-mine of our core assets in 2011, to 9.7
years, and an increase in our 'Company Maker' pipeline from eight
to 13 projects, significantly strengthening our project pipeline. I
firmly believe that this strategy will deliver profitable long-term
production growth to our shareholders.
In 2012 we expect to see the first crucial steps in the
construction phase of our two exciting projects at Inmaculada and
Crespo, which have the potential to contribute attributable annual
production of 10 million silver equivalent ounces, increasing
current production levels by 50%.
Hochschild Mining remains in a very solid financial position
with a cash balance of US$590 million as at 31 March 2012, and
minority investments of over US$396 million. The Board remains
confident that the Company has the financial flexibility to
continue to pursue high return investment opportunities, whether in
brownfield expansion at our existing mines, value enhancing
acquisitions, or adding to our exploration investment.
During 2011 there were a number of changes to the Board. In
light of Dionisio Romero's decision to retire as a Non-Executive
Director after today's meeting and Sir Malcolm Field retiring at
the end of this year, we appointed Dr Graham Birch and Rupert
Pennant-Rea as Non-Executive Directors. Both Graham and Rupert
bring with them extensive and relevant experience in the natural
resource industry.
As this is their last AGM, I would like to express my sincere
gratitude to both Malcolm and Dionisio for their counsel and
invaluable contributions to Hochschild since joining the Board back
in 2006.
I am pleased to confirm that Jorge Born was appointed by the
Board yesterday to replace Dionisio on the Company's Nominations
Committee.
Finally, on behalf of the Board, I would like to thank the
entire talented Hochschild team for another year of strong
performance in 2011, and our shareholders, for your continued
support."
___________________________________________________________________________
Enquiries:
Hochschild Mining plc
Charles Gordon +44 (0)20 7907 2934
Head of Investor Relations
RLM Finsbury
Charles Chichester +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 / HOC LN) with a
primary focus on the exploration, mining, processing and sale of
silver and gold. Hochschild has almost fifty years' experience in
the mining of precious metal epithermal vein deposits and currently
operates four underground epithermal vein mines, three located in
southern Peru, one in southern Argentina and one open pit mine in
northern Mexico. Hochschild also has numerous long-term prospects
throughout the Americas.
This information is provided by RNS
The company news service from the London Stock Exchange
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