TIDMHOC

RNS Number : 7900H

Hochschild Mining PLC

17 July 2012

17 July 2012

Production Report for the 6 months ended 30 June 2012

Highlights

   -- Q2 2012 attributable production of 5.2 million silver equivalent ounces 
 
   -- H1 2012 attributable production of 10.2 million silver equivalent ounces 
 
   -- On track to deliver 2012 attributable production target of 20.0 million silver equivalent ounces 
 
   -- Temporary accumulation of San Jose concentrate inventory at end Q2 2012 due to industry-wide regulatory changes 
      in Argentina; exports resumed and inventory to be sold in H2 2012 
 
   -- Continued progress at Inmaculada and Crespo Advanced Projects 
 
   -- Ongoing positive results from mines and brownfield exploration programme with significant intercepts reported and 
      continued discovery of new economic veins 
 
   -- Resource additions at current operations on track to meet annual target 
 
   -- Solid financial position with total cash of approximately $543m and minority investments of $413.6m as at 30 June 
      2012 

Ignacio Bustamante, Chief Executive Officer, commented:

"I am pleased to report that we have delivered another robust performance from our operations in the first half and are therefore on track to achieve our 20.0 million attributable silver equivalent ounce production target for 2012. Our record $90 million exploration programme is also on course, with some encouraging results already recorded from our current operations and our ambitious 2012 greenfield drilling programme is also making good progress."

Overview

In Q2 2012, Hochschild produced 5.2 million attributable silver equivalent ounces, which comprised 3.5 million ounces of silver and 27.6 thousand ounces of gold. Overall, in the first half of 2012, the Company has delivered attributable production of 10.2 million silver equivalent ounces, including 6.9 million ounces of silver and 55.9 thousand ounces of gold, placing it on track to achieve its full year production target of 20.0 million attributable silver equivalent ounces in 2012.

Production

Main operations

At Arcata, silver equivalent production of 1.8 million ounces in Q2 2012 and 3.6 million ounces in H1 2012 was broadly in line with the comparable periods of 2011, with an increase in treated tonnage offset by lower silver grades. In addition, the volume of treated low grade material from the Macarena Waste Dam deposit was similar to the first half of 2011 but is expected to rise in the second half with incremental plant capacity of 500 tonnes per day being added to accommodate this increase. The Arcata dore project, to process 100% of Arcata's concentrate, remains on schedule for completion in the second half.

San Jose delivered another strong performance in the first half of 2012, resulting from increased tonnages. Total silver equivalent production increased by almost 18% in the second quarter versus the same period of 2011, to 2.8 million ounces, with the half year production rising by 4% versus H1 2011, to 5.4 million silver equivalent ounces.

At Pallancata, despite an increase in production in the second quarter versus Q1 2012, to 2.2 million total silver equivalent ounces, overall half year production fell by 16% versus H1 2011, to 4.3 million ounces. This decrease was due to a decline in grades resulting from two factors. Firstly, temporary delays in the mine execution plan led to the treatment of an increased volume of lower grade material from the mine (as disclosed in the Q1 2012 Production Report). In addition, the Company continues with its previously-mentioned strategy of mining close to the average reserve grade at each of its core operations in order to ensure a consistent level of long-term production.

Other operations

The Company's ageing Ares mine in Peru continued to operate in Q2 2012 and produced 470 thousand silver equivalent ounces, bringing the H1 2012 production at Ares to 985 thousand silver equivalent ounces. The Company continues to monitor production closely at Ares to ensure the extraction of profitable ounces during the last stage of its life cycle. Subject to additional resources, and the price environment, production at Ares is expected to continue throughout H2 2012. Exploration work is continuing at Ares and some promising intercepts were reported during the quarter.

At Moris, the Company's open pit operation in Mexico, despite mine production having ceased in September 2011, continued leaching of the pads produced a further 139 thousand silver equivalent ounces in Q2 2012, bringing the first half total to 357 thousand silver equivalent ounces. Moris remains in the final stages of the pads' cyanidation process with exploration continuing at the property.

Average realisable prices and sales

Average realisable precious metal prices (which are reported before the deduction of commercial discounts) in Q2 2012 were US$1,586.92/ounce for gold and US$26.08/ounce for silver. Average realisable precious metal prices in H1 2012 were US$1,669.00/ounce for gold and US$31.18/ounce for silver.

There was an accumulation in concentrate inventory at the San Jose mine during Q2 2012 due to the impact of industry-wide regulatory changes in Argentina that significantly reduced the time allowancesduring which export contracts were required to be settled. As at 30 June 2012, approximately 1.0 million silver equivalent ounces of concentrate remained in finished goods inventory. However, exports have now resumed and sales of this inventory will be reflected in the second half sales figures.

Brownfield exploration(1)

San Jose

The exploration programme at San Jose continued to deliver positive results in Q2 2012 with 28.9 thousand metres of exploration drilling carried out to incorporate further resources and new economic areas. A total of 43.6 thousand metres of exploration drilling was carried out at San Jose in H1 2012. In Q2 2012, drilling took place on several veins with significant intercepts including(1) :

 
 Vein      Results 
--------  ------------------------------------------ 
 Nuevo 1   SJD-1099 0.75m at 5.18 g/t Au & 216.32 
            g/t Ag 
--------  ------------------------------------------ 
 Kospi     SJD-1100 2.45m at 6.37 g/t Au & 382.30 
            g/t Ag 
--------  ------------------------------------------ 
 Frea      SJD-1119 1.70m at 3.11 g/t Au & 238.61 
            g/t Ag 
--------  ------------------------------------------ 
 Chenque   SJD-1121 1.70m at 11.05 g/t Au & 1,186.36 
            g/t Ag 
--------  ------------------------------------------ 
 R350      SJD-1125 0.50m at 3.06 g/t Au & 329.63 
            g/t Ag 
--------  ------------------------------------------ 
 

In H2 2012, the exploration programme in and around the San Jose mine will continue and the geological map of the southern area of the district will be completed. An estimated 46.4 thousand metres of exploration drilling is planned for H2 2012.

Arcata

At Arcata, there were also positive results from the exploration programme. A high grade resource was discovered in the Tunel 4 area with the potential to not only increase the life of mine but to also improve the average grade quality of the resource. During Q2 2012, 18.2 thousand metres of drilling was carried out at Arcata, with exploration work focused on the definition of new high grade structures and the incorporation of high quality resources from known vein systems, as well as to provide further geological interpretation of the district. Significant intercepts included(1) :

 
 Vein      Results 
--------  ------------------------------------ 
 Tunel 4   DDH306-S-12 1.15m at 6.87 g/t Au & 
            2,387.39 g/t Ag 
--------  ------------------------------------ 
 Tunel 4   DDH312-S-12 1.08m at 3.38 g/t Au & 
            1,261.64 g/t Ag 
--------  ------------------------------------ 
 Tunel 4   DDH304-S-12 1.33m at 3.48 g/t Au & 
            2,815.12 g/t Ag 
--------  ------------------------------------ 
 Marion    DDH216-GE-12 0.82m at 1.35 g/t Au & 
            428.86 g/t Ag 
--------  ------------------------------------ 
 Sandra    DDH301-S-12 1.18m at 2.06 g/t Au & 
            1,059.53 g/t Ag 
--------  ------------------------------------ 
 

In the second half, the near-mine exploration programme will continue, with drilling focused on the definition of new high grade structures and on improving the average grade of the resource. An estimated 35.2 thousand metres of drilling is planned.

Pallancata

Exploration work at Pallancata in Q2 2012 focused on identifying wider structures and the incorporation of new resources. During the quarter, drilling continued at the Luisa, Pallancata Este, Ramal Este and Teresa veins, with 13.9 thousand metres of diamond drilling completed. Promising intercepts included(2) :

 
 Vein         Results 
-----------  --------------------------------------- 
 Luisa        DLLU-A60 2.53m at 1.70 g/t Au & 313.28 
               g/t Ag 
-----------  --------------------------------------- 
 Luisa        DLLU-A65 1.60m at 1.41 g/t Au & 447.02 
               g/t Ag 
-----------  --------------------------------------- 
 Luisa        DLLU-A88 3.03m at 1.76 g/t Au & 522.69 
               g/t Ag 
-----------  --------------------------------------- 
 Ramal Este   DLPE-A91 1.04m at 1.38 g/t Au & 358.50 
               g/t Ag 
-----------  --------------------------------------- 
 Teresa       DLTE-A03 0.62m at 3.78 g/t Au & 497.97 
               g/t Ag 
-----------  --------------------------------------- 
 

In H2 2012, exploration will focus on identifying new high grade areas, with an estimated 22.9 thousand metres of drilling planned.

Ares

Exploration work at Ares in Q2 2012 focused on identifying new economic structures. During the quarter, 3.1 thousand metres of drilling was carried out on the Olga, Isabel and Rosario veins. Promising intercepts included(2) :

 
 Vein     Results 
-------  -------------------------------------- 
 Olga     AM-1482 2.65m at 0.13 g/t Au & 448.31 
           g/t Ag 
-------  -------------------------------------- 
 Isabel   AM-1482 6.05m at 0.44 g/t Au & 154.78 
           g/t Ag 
-------  -------------------------------------- 
 Isabel   AM-1481 0.60m at 0.54 g/t Au & 303.24 
           g/t Ag 
-------  -------------------------------------- 
 

Additional exploration initiatives have been approved for Ares in order to continue expanding the life of mine. In H2 2012, exploration will focus on the definition of new economic structures outside of the mine premises, with an estimated 28.8 thousand metres of drilling planned.

Moris

In Q2 2012, exploration work at Moris focused on identifying new economic structures. During the quarter, 5.9 thousand metres of drilling was carried out on the La Nopalera, Creston and Eureka areas. Promising intercepts included(2) :

 
 Vein                     Results 
-----------------------  -------------------------------------- 
 Veta del Bajo San Luis   BM-04 12.0m at 0.63 g/t Au & 0.18 g/t 
                           Ag 
-----------------------  -------------------------------------- 
 Veta del Bajo San Luis   BM-04 3.55m at 0.63 g/t Au & 0.63 g/t 
                           Ag 
-----------------------  -------------------------------------- 
 

Exploration at Moris in H2 2012 will focus on increasing the life of mine at the operation, with an estimated 8.3 thousand metres of drilling planned.

(1) please note that all mineralised intersections referred to in this release are quoted as down-hole lengths, not true widths.

(2) please not that all mineralised intersections referred to in this release are wuoted as down-hole lengths, not true widths.

Advanced Projects

On 11 January 2012, Hochschild announced the successful completion of the Inmaculada and Crespo feasibility studies which are forecast to contribute 10 million silver equivalent ounces of attributable production on average per annum at an initial combined capital cost of $335 million (attributable). Full details of the feasibility studies can be found in the announcement.

Inmaculada

In Q2 2012, further steady progress was made at Inmaculada. The suppliers for the main site equipment were selected, with equipment purchasing starting in the period. Construction of three exploration tunnels commenced and the contract for the construction of the main access road to the site was granted, with completion due by the end of 2012. Project engineering continued during the quarter with a geomechanical drilling programme completed in June, whilst engineering contracts for maintenance workshops and stores were also granted at the end of June. The contract for the construction of the electricity transmission line was awarded and work began during the period.

The Company continued initiatives with the local communities surrounding Inmaculada during the quarter, and work in response to the observations made in the Environmental Impact Study ('EIS') also continued, with the EIS approval expected in Q3 2012.

In Q2 2012, resource exploration continued at Inmaculada, with seven drill rigs in operation throughout the quarter. During the quarter, 32 drill holes were completed, with six more in progress at the end of June, totaling 42 drill holes completed in H1 2012. A total of 12.2 thousand metres of exploration drilling was carried out in Q2 2012 in order to continue with the incorporation of inferred resources and to identify new structures. Drilling was carried out in the Cimoide Angela SW, and Lucy veins, with encouraging results including(3) :

 
 Vein                Results 
------------------  ---------------------------------------- 
 Angela SW           ASW12-029 1.35m at 2.19 g/t Au & 129 
                      g/t Ag 
------------------  ---------------------------------------- 
 Lucy                ASW12-032 0.90m at 7.75 g/t Au & 232 
                      g/t Ag 
------------------  ---------------------------------------- 
 Angela SW           ASW12-033 1.70m at 1.00 g/t Au & 569 
                      g/t Ag 
------------------  ---------------------------------------- 
 Lucy                ASW12-025 1.58m at 3.16 g/t Au & 107.47 
                      g/t Ag 
------------------  ---------------------------------------- 
 Cimoide Angela SW   ASW12-033 1.00m at 4.62 g/t Au & 123.58 
                      g/t Ag 
------------------  ---------------------------------------- 
 

In H2 2012, exploration will focus on the definition and incorporation of potential systems outside of the current resource area, with an estimated 30.8 thousand metres of drilling planned.

Crespo

At the Company's 100% owned Crespo project, engineering contracts for the plant, leach pads, waste dump and infrastructure areas were awarded to a local contractor. Proposals for the construction of the main access road to Crespo were received in June and the contract will be awarded later this month.

Following the successful public hearing held in April in relation to the EIS permit, Hochschild continued the process of responding to the relevant observations with approval expected in Q4 2012. Community relations support programmes were also put in place during the quarter.

During the quarter, the surface sampling programme continued at Crespo, and the lithological and alteration models were completed. In H2 2012, a drilling programme will commence at Crespo in order to identify new potential areas of disseminated mineralisation.

Azuca

In Q2 2012, surface geology and detailed mapping were conducted at Azuca and the drilling programme continued with two drill rigs in operation. In H2 2012, exploration will focus on identifying new potential areas with an estimated 22.2 thousand metres of drilling planned.

(3) please note that all mineralised intersections referred to in this release are quoted as down-hole lengths, not true widths.

Greenfield pipeline

In Q2 2012, a total of 9.7 thousand metres was drilled as part of the greenfield exploration programme, bringing the total for H1 2012 to 17.8 thousand metres. The Company's greenfield exploration programme saw good progress in H1 2012 and is broadly on track to meet its full year drilling targets. In H1 2012, drilling was carried out at 10 projects; of which, six were Company Maker projects and four were Medium Scale projects.

Company Makers

Victoria

At the 60% owned Victoria project in northern Chile, exploration work delivered good results in H1 2012. A total of 3.7 thousand metres of drilling was completed, with exploration work focusing on the porphyry potential of the property. Drilling to better define the Picaron porphyry mineralisation and exotic copper oxide targets was carried out, and geological mapping and target delineation was continued on further targets with a view to commence the drilling of defined targets in Q3 2012.

Valeriano

Drilling commenced at Valeriano in October 2011 and, in H1 2012, 2.6 thousand metres of drilling was carried out at the property to fully test the epithermal high sulphidation and porphyry copper targets identified last year. In H2 2012 the drilling programme will include follow up drilling and drill testing of the near surface high sulphidation target.

Encrucijada

Following positive results from the exploration programme at the 51% owned Encrucijada property in Chile, the project was re-categorised as a Company Maker project in Q1 2012. In H1 2012, 1.7 thousand metres of drilling was carried out. Additional geophysical interpretation and targeting of the porphyry style mineralisation below the San Bernardo tourmaline breccias and dome complex, and in the surrounding area, was also carried out.

Mercurio

In H1 2012 the drilling campaign continued at the Mercurio property in Mexico, with the focus on expanding the known mineralisation and identifying new mineralised structures. A total of 2.6 thousand metres of drilling was carried out. Drilling commenced on the Santa Rosa vein system and geochemical sampling also continued at the property. In H2 2012, the drilling campaign will focus on the Santa Rosa and Virginia vein areas and along the large north east structural zone which hosts a barite vein.

Apacheta

At the Apacheta project in Peru, 2.5 thousand metres of drilling was completed in H1 2012 to complete the initial exploration programme at Apacheta 1, and a surface sampling programme was carried out in order to define further targets. In H2 2012, exploration work will focus on obtaining the social permits for Apacheta 2 in order to initiate the drilling programme there.

Soranpampa

At the Soranpampa project in Peru, the drilling programme was initiated in June. Drilling was carried out on a geophysical anomaly area in order to identify economic near-surface gold mineralization. Further detailed geophysical work has identified targets in and adjacent to the primary target with exploration work continuing into the second half.

Medium Scale projects

In H1 2012, positive results were reported at a number of the Company's Medium Scale projects and the El Tanque project in Mexico was added to the Company's exploration pipeline.

Cuello Cuello

At the Cuello Cuello project in Peru, the relevant government and community permits and approvals were received in December 2011. At the end of H1 2012 the drilling programme commenced at the project, with one drill rig in operation. A total of 1.2 thousand metres of drilling was carried out. Four silica structures with high sulphide content were identified. In H2 2012, exploration work will continue.

San Antonio

In H1 2012, a comprehensive mapping and sampling programme to define drill targets was completed at the San Antonio project in Chile with almost three thousand metres of drilling carried out. However, following this exploration work, the Company decided not to proceed with the San Antonio project.

Jasperoide

In H1 2012, 566 metres of drilling was carried out at the Jasperoide copper project in Peru, focused on the already identified mineralised zone and surrounding area to locate new skarn blankets and to test for a potential associated porphyritic system. In H2 2012 exploration work will continue.

Financial position

The Company's financial position remains strong with total cash of approximately $543 million as at 30 June 2012 and minority investments of $413.6 million.

Outlook

The Company remains on track to achieve its full year production target of 20.0 million attributable silver equivalent ounces in 2012. Production at the core operations will remain broadly stable throughout the second half as the Company continues to mine close to average reserve grades in order to ensure a consistent level of long-term production. The Company currently expects that, excluding the effects of royalties and the impact of the Arcata dore project, unit cost per tonne performance in H1 2012 at the main operations will be broadly in line with the 15% guidance given in March for Peru and between 25-30% guidance for Argentina.

__________________________________________________________________

A conference call will be held at 3pm (London time) on Tuesday 17 July 2012 for analysts and investors.

Dial in details as follows:

UK: +44 (0) 20 3003 2666

A recording of the conference call will be available for one week following its conclusion, accessible from the following telephone number:

UK: +44 (0) 20 8196 1998

Access code: 8843136

__________________________________________________________________

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 and one in southern Argentina. Hochschild also has numerous long-term projects throughout the Americas.

PRODUCTION & SALES INFORMATION

TOTAL GROUP PRODUCTION(1)

 
                                Q2       Q1       Q2       H1       H1 
                              2012     2012     2011     2012     2011 
-------------------------  -------  -------  -------  -------  ------- 
 Silver production (koz)     4,966    4,762    5,174    9,728   10,414 
 Gold production (koz)       40.96    40.51    43.99    81.47    88.91 
 Total silver equivalent 
  (koz)                      7,424    7,193    7,814   14,616   15,748 
 Total gold equivalent 
  (koz)                     123.73   119.88   130.23   243.61   262.47 
 Silver sold (koz)           4,528    4,068    5,658    8,596   10,758 
 Gold sold (koz)             38.20    27.71    50.27    65.91    89.39 
-------------------------  -------  -------  -------  -------  ------- 
 

1 Total production includes 100% of all production, including production attributable to joint venture partners at San Jose and Pallancata.

ATTRIBUTABLE GROUP PRODUCTION(1)

 
                                  Q2       Q1       Q2       H1       H1 
                                2012     2012     2011     2012     2011 
---------------------------  -------  -------  -------  -------  ------- 
 Silver production (koz)       3,501    3,386    3,653    6,887    7,340 
 Gold production (koz)         27.65    28.29    31.95    55.94    63.26 
 Attrib. silver equivalent 
  (koz)                        5,160    5,083    5,570   10,243   11,136 
 Attrib. gold equivalent 
  (koz)                        86.00    84.72    92.84   170.72   185.60 
---------------------------  -------  -------  -------  -------  ------- 
 

1 Attributable production includes 100% of all production from Arcata, Ares and Moris, 60% from Pallancata and 51% from San Jose.

QUARTERLY PRODUCTION BY MINE

ARCATA

 
                                    Q2        Q1        Q2        H1        H1 
                                  2012      2012      2011      2012      2011 
----------------------------  --------  --------  --------  --------  -------- 
 Ore production (tonnes)       180,500   164,160   159,110   344,660   316,086 
 Average head grade silver 
  (g/t)                            300       317       334       308       342 
 Average head grade gold 
  (g/t)                           0.88      0.94      0.94      0.91      0.94 
 Silver produced (koz)           1,515     1,498     1,506     3,012     3,056 
 Gold produced (koz)              4.56      4.48      4.32      9.04      8.66 
 Silver equivalent produced 
  (koz)                          1,788     1,766     1,765     3,555     3,575 
 Silver sold (koz)               1,548     1,112     1,703     2,659     3,020 
 Gold sold (koz)                  4.99      2.81      4.66      7.81      8.36 
----------------------------  --------  --------  --------  --------  -------- 
 

ARES

 
                                   Q2       Q1       Q2        H1        H1 
                                 2012     2012     2011      2012      2011 
----------------------------  -------  -------  -------  --------  -------- 
 Ore production (tonnes)       82,368   78,265   82,181   160,632   155,683 
 Average head grade silver 
  (g/t)                            54       47       64        51        64 
 Average head grade gold 
  (g/t)                          2.51     2.62     2.99      2.56      3.01 
 Silver produced (koz)            115      112      151       227       284 
 Gold produced (koz)             5.92     6.71     7.39     12.63     14.08 
 Silver equivalent produced 
  (koz)                           470      515      594       985     1,129 
 Silver sold (koz)                 93       85      186       178       287 
 Gold sold (koz)                 6.73     3.21     8.75      9.94     14.32 
----------------------------  -------  -------  -------  --------  -------- 
 

PALLANCATA(1)

 
                                    Q2        Q1        Q2        H1        H1 
                                  2012      2012      2011      2012      2011 
----------------------------  --------  --------  --------  --------  -------- 
 Ore production (tonnes)       270,961   257,339   266,673   528,300   508,734 
 Average head grade silver 
  (g/t)                            250       263       295       256       299 
 Average head grade gold 
  (g/t)                           1.08      0.99      1.31      1.04      1.31 
 Silver produced (koz)           1,825     1,780     2,170     3,606     4,188 
 Gold produced (koz)              6.40      5.61      8.43     12.01     16.21 
 Silver equivalent produced 
  (koz)                          2,209     2,117     2,676     4,326     5,160 
 Silver sold (koz)               1,730     1,826     2,166     3,556     4,492 
 Gold sold (koz)                  5.95      5.48      7.94     11.43     16.57 
----------------------------  --------  --------  --------  --------  -------- 
 

1 The Company holds a 60% interest in Pallancata.

SAN JOSE(1)

 
                                    Q2        Q1       Q2        H1        H1 
                                  2012      2012     2011      2012      2011 
----------------------------  --------  --------  -------  --------  -------- 
 Ore production (tonnes)       128,803   115,531   98,251   244,334   211,947 
 Average head grade silver 
  (g/t)                            430       416      463       423       461 
 Average head grade gold 
  (g/t)                           5.98      5.98     5.98      5.98      6.03 
 Silver produced (koz)           1,500     1,356    1,332     2,855     2,854 
 Gold produced (koz)             21.95     20.36    17.70     42.30     39.11 
 Silver equivalent produced 
  (koz)                          2,816     2,577    2,394     5,393     5,201 
 Silver sold (koz)               1,146     1,032    1,585     2,178     2,927 
 Gold sold (koz)                 17.66     14.34    21.69     32.00     39.32 
----------------------------  --------  --------  -------  --------  -------- 
 

1 The Company holds a 51% interest in San Jose.

MORIS

 
                                   Q2       Q1        Q2       H1        H1 
                                 2012     2012      2011     2012      2011 
----------------------------  -------  -------  --------  -------  -------- 
 Ore production (tonnes)            -        -   306,846        -   612,257 
 Average head grade silver 
  (g/t)                             -        -      5.54        -      4.83 
 Average head grade gold 
  (g/t)                             -        -      1.12        -      0.94 
 Silver produced (koz)           11.3     16.8      15.3    28.09     31.72 
 Gold produced (koz)             2.13     3.35      6.17     5.48     10.86 
 Silver equivalent produced 
  (koz)                           139      218       385      357       683 
 Silver sold (koz)                 11       13        19       24        31 
 Gold sold (koz)                 2.86     1.87      7.23     4.73     10.82 
----------------------------  -------  -------  --------  -------  -------- 
 

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.

- ends -

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