Hochschild Mining PLC Advanced Project Permitting Update (8652R)
November 23 2012 - 2:00AM
UK Regulatory
TIDMHOC
RNS Number : 8652R
Hochschild Mining PLC
23 November 2012
___________________________________________________________________________
23 November 2012
Advanced Project Permitting Update
Hochschild Mining plc ("Hochschild" or "the Company") announces
an update to its Advanced Projects' schedule.
As previously stated in the Interim Results announcement in
August, changes were made by the Peruvian government to the
submission requirements for construction permit applications which,
together with the number of industry applications being processed,
will lead to a longer than anticipated permitting process.
Hochschild now expects to receive the final mill construction
permits for both the Inmaculada and Crespo projects in the second
half of 2013 with commissioning for both projects' mills now
scheduled for the second half of 2014.
Furthermore, following the substantial progress made by the
Company during the year with regards to detailed engineering and
also procurement and construction contracts, the revised total
capital expenditure estimate for Inmaculada is now expected to be
approximately $350 million. In addition, the above mentioned delays
combined with the strengthening of the Peruvian Sol are expected to
add approximately $20 million to that total.
At the Crespo project, optimisation of the processing stage has
allowed the Company to maintain its capital expenditure estimate at
approximately $110 million despite the permitting delays.
Commenting on the announcement, Ignacio Bustamante, CEO,
said:
"We highlighted earlier this year the regulatory changes to the
permitting process in Peru and are now in a position to give
clarification on the effect of the resulting delays on our Advanced
Projects. We have made significant progress during 2012 in the
development of both projects and in obtaining the government
approval for the Environmental Impact Study at Inmaculada and are
confident that on receipt of the final mill construction permits,
now expected in the second half of 2013, we will be in a good
position to rapidly advance towards production. Despite this delay,
both projects continue to be very profitable even at long term
analyst consensus prices and are expected to generate significant
value for the Company whilst we also remain excited by their strong
geological upside."
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___________________________________________________________________________
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.
Forward looking Statements
This announcement contains certain forward looking statements
which may relate to matters such as the business, strategy,
investments, production, major projects and their contribution to
expected production and other plans of Hochschild Mining plc and
its current goals, assumptions and expectations relating to its
future financial condition, performance and results.
Forward-looking statements include, without limitation,
statements typically containing words such as "intends", "expects",
"anticipates", "targets", "plans", "estimates" and words of similar
import. 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 be
materially different from any future results, performance or
achievements expressed or implied by such forward looking
statements. Factors that could cause or contribute to differences
between the actual results, performance or achievements of
Hochschild Mining plc and current expectations include, but are not
limited to, legislative, fiscal and regulatory developments,
competitive conditions, technological developments, exchange rate
fluctuations and general economic conditions. Past performance is
no guide to future performance and persons needing advice should
consult an independent financial adviser.
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, 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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