TIDMHOC
RNS Number : 1425W
Hochschild Mining PLC
23 January 2013
________________________________________________________________________
23 January 2013
Production Report for the 12 months ended 31 December 2012
Highlights
-- Full year production of 20.3 million attributable silver
equivalent ounces achieved, in line with guidance
-- Acquisition of Andina Minerals gold deposit in Chile boosts
long-term project pipeline
-- Further progress at Advanced Projects
-- Strong brownfield exploration results
-- 2013 production target maintained at 20.0 million
attributable silver equivalent ounces
-- 2013 exploration budget set at $77 million
-- Solid financial position with total cash of approximately
$359 million (including payment for 86.7% of Andina Minerals) and
minority investments valued at $256 million as at 31 December
2012
Ignacio Bustamante, Chief Executive Officer commented:
"I am pleased to report that we have once again met our full
year production target, producing 20.3 million attributable silver
equivalent ounces in 2012. Whilst our mines have continued to
deliver a solid base of production, our brownfield exploration
programme has delivered some excellent results during the year and
we have not only continued to incorporate further resources, but we
have also discovered new high grade veins at all of our core assets
that improve the quality of our resources.
During the year, our Advanced Projects, which will increase our
production levels by fifty percent, have continued to make good
progress and despite the reported industry-wide delays in the
permitting process, the engineering, construction and community
relations initiatives are proceeding according to schedule. Our
ambitious greenfield drilling programme also produced some
encouraging results throughout the year, demonstrating the
potential of our project pipeline to deliver significant growth in
the long-term.
Finally, the recent acquisition of Andina Minerals provides
Hochschild with further long-term optionality as well as increased
geographical balance within our extensive project pipeline with its
principal asset, Dorado, being located in Chile, one of the most
attractive, mining-friendly jurisdictions in the Americas. Although
we recognise the challenges associated with the project, we expect
to conduct further substantial geological and technical evaluation
work on the deposit and are confident that our experienced
geological and operational teams will develop its strong potential.
Despite only representing approximately 4% of Hochschild's current
market capitalisation, this acquisition has the potential to
ultimately deliver significant growth."
_________________________________________________________________________________
A conference call will be held at 2pm (London time) on Wednesday
23 January 2013 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: 6372676
__________________________________________________________________________________
2012 Overview
In Q4 2012, the Company produced 4.9 million attributable silver
equivalent ounces comprised of 3.2 million ounces of silver and
27.4 thousand ounces of gold. As a result, Hochschild has
successfully exceeded its full year production target, with
attributable production of 20.3 million silver equivalent ounces in
2012, comprised of 13.6 million ounces of silver and 111.8 thousand
ounces of gold.
The Company expects the increase in its overall 2012 unit cost
per tonne in Peru, excluding royalties and the effect of the Arcata
dore project, to be in line with previous guidance of approximately
15%. In Argentina, the increase is anticipated to be lower than the
previous guidance of 15-20%, as higher tonnage from mine
developments, efficiency gains and increased local currency
devaluation allowed the Company to partially offset the local
annual inflation rate of 25%.
Main operations
At Arcata, silver equivalent production in Q4 2012 was 1.4
million ounces (Q4 2011: 1.9 million ounces), with a decrease in
grades compared to Q4 2011, reflecting the Company's policy of
mining close to the average reserve grade at its core assets, as
well as a planned fourth quarter increase in volumes processed from
the low grade Macarena Waste Dam Deposit following the capacity
expansion completed at the Arcata plant in Q3 2012.
Full year silver equivalent production at Arcata in 2012 at 6.6
million ounces (2011: 7.1 million ounces) included the decrease in
ounces recovered as a result of the ramping up of the dore project.
This initiative was completed in the fourth quarter with 100% of
Arcata's concentrate now being converted into dore, resulting in
significant commercial savings which more than offset the decrease
in ounces recovered from the process. Excluding the effect of this
project, Arcata would have produced an additional 163 thousand
silver equivalent ounces in Q4 2012 with 234 thousand silver
equivalent ounces being lost in the full year.
Table Showing Contribution from Macarena Waste Dam Deposit
Q4 2012 Q4 2011 12 mths 12 mths
2012 2011
------------------------- ----------------- -------- ------------- --------
Total
Tonnage 234,354 190,609 773,498 687,966
Average head grade
gold (g/t) 0.75 0.85 0.83 0.88
Average head grade
silver (g/t) 227 297 271 312
------------------------- ----------------- -------- ------------- --------
Macarena
Tonnage 71,433 40,335 133,825 86,859
Average head grade
gold (g/t) 0.31 0.29 0.30 0.30
Average head grade
silver (g/t) 103 86 105 95
Stopes and Developments
Tonnage 162,921 150,274 639,673 601,107
Average head grade
gold (g/t) 0.94 1.00 0.94 0.97
Average head grade
silver (g/t) 281 354 306 344
------------------------- ----------------- -------- ------------- --------
At Pallancata, total silver equivalent production of 2.4 million
ounces in Q4 2012 was lower than that of Q4 2011 (2.8 million
ounces) due mainly to lower grades reflecting the Company's policy
of mining close to the average reserve grade at its core assets, as
well as the processing of a higher proportion of mineral from
narrower structures with higher mine dilution. These factors, along
with temporary delays in the mine execution plan in the first half
of the year, contributed to full year total silver equivalent
production at the mine of 9.0 million ounces (2011: 10.8 million
ounces).
San Jose delivered a strong performance in Q4 2012 with total
silver equivalent production of 2.9 million ounces. This was a 7%
increase compared to Q4 2011 (2.7 million ounces), and a 3%
increase compared to Q3 2012 (2.8 million ounces), resulting from a
rise in both silver and gold grades. Full year total silver
equivalent production at the mine rose by 3% to 11.1 million ounces
(2011: 10.7 million ounces) reflecting an increase in overall
tonnage resulting from a greater availability of lower grade
economic development material as well as operational efficiencies
that allowed for an increase in mill throughput.
Other operations
In Q4 2012, production continued at Ares, the Company's ageing
mine in Peru, with silver equivalent production of 515 thousand
ounces (Q4 2011: 608 thousand ounces). Full year production at Ares
was 2.1 million ounces compared to 2.3 million ounces in 2011. The
Company continues to monitor production closely at Ares to ensure
the extraction of profitable ounces during the last stage of its
life cycle with production expected to continue into 2013. The
exploration programme continues at the property and positive
results have been received.
At Moris, despite mine production having ceased in September
2011, continued leaching of the pads produced a further 58 thousand
silver equivalent ounces in Q4 2012 whilst overall full year
production was 570 thousand ounces (2011: 1.2 million ounces). The
Company expects to continue recovering mineral from the pads in
2013, although this is not expected to be material. Exploration
continues at the property.
Average realisable prices and sales
Average realisable precious metal prices in Q4 2012 (which are
reported before the deduction of commercial discounts) were
$1,660.53/ounce for gold and $29.77/ounce for silver. Average
realisable precious metals prices for the full year 2012 were
$1,684.44/ounce for gold and $31.62/ounce for silver.
Acquisition of Andina Minerals Inc
On 8 November 2012, the Company announced that it had made a
recommended cash offer of C$0.80 per share for all of the issued
and outstanding common shares of Andina Minerals Inc. ("Andina").
Andina owns the Dorado Gold Deposit ("Dorado"), located at the
Volcan Gold Project in the prolific Maricunga gold belt in Chile.
Full details can be found in the announcement.
This acquisition adds to the Company\'s extensive project
pipeline, doubling the current resource base and is located in
Chile, one of the Company's key targeted mining jurisdictions. In
addition, it is in line with the Company's long standing criteria
of acquiring highly value accretive, early stage opportunities with
strong geological conditions and with full control. During 2013,
the Company will commence an extensive technical and geological
evaluation of the Dorado deposit and continue with the relevant
permitting processes and applications.
In February 2011, Andina published details of a Pre-Feasibility
Study carried out on the Dorado deposit disclosing initial Proven
and Probable mineral reserves of 6.6 million ounces of gold. During
the process of evaluation mentioned above Hochschild will
re-classify the reported reserves as resources. As detailed in
Andina's February 2011 Pre-Feasibility Study, the project has the
following mineral resources:
Classification Total In-Pit Resource
====================== ====================================================
Tonnes Gold grade (g/t Contained Gold Ounces
Au)
====================== ============ ===============
Measured 105,918,000 0.738 2,511,000
Indicated 283,763,000 0.698 6,367,000
Measured & Indicated 389,681,000 0.709 8,878,000
Inferred 41,553,000 0.502 671,000
---------------------- ------------ --------------- ---------------------
(1.) All quantities are rounded to the appropriate number of
significant figures, consequently sums may not add due to
rounding.
(2.) The estimate of mineral resources may be materially
affected by environmental, permitting, legal, title, taxation,
socio-political, marketing or other relevant issues.
(3.) The quantity and grade of reported Inferred Resources in
this estimation are conceptual in nature and there has been
insufficient exploration to define these Inferred Resources as an
Indicated or Measured Mineral Resource. It is uncertain if further
exploration will result in the upgrading of the Inferred Resources
into an Indicated or Measured Mineral Resource category.
(4.) The Dorado mineral resource estimate is effective as of 16
September 2010.
On 14 January 2013, the Company announced that it had received
acceptances by Andina shareholders representing 90.84% of its
outstanding shares and that the transaction is expected to complete
in February 2013.
Project pipeline & exploration
In 2012, a total of 350,150 metres of drilling was completed at
the Company's brownfield, Advanced Projects and greenfield
projects.
Brownfield exploration1
Arcata
A total of 9,780 metres of drilling was carried out in Q4 2012.
Exploration work focused on the incorporation of high quality
resources from known vein systems such as Alexia, Katty and Tunel 4
as well as the definition of new high grade structures. Positive
intercepts included(1) :
Vein Results
------- ---------------------------------------
Alexia DDH398 2.72m at 2.58 g/t Au & 696 g/t
Ag
DDH402 1.47m at 1.10 g/t Au & 380 g/t
Ag
DDH381 1.35m at 1.09 g/t Au & 393 g/t
Ag
------- ---------------------------------------
In 2013, the exploration programme and the 34,000 metre drilling
campaign at Arcata will continue with the potential and near mine
exploration programme in the northern part of the district
surrounding the Socorro, Alexia and Katty vein systems.
Pallancata
Exploration work in Q4 2012 focused on the identification of
wider structures and the incorporation of new resources. A total of
10,734 metresof drilling was completed, with focus on the Paola,
Luisa, Teresa, Rina, Huararani and Tensional veins. Promising
intercepts included(1) :
Vein Results
---------- ----------------------------------------
Rina DLRI-A55 1.88m at 1.65 g/t Au & 487 g/t
Ag
---------- ----------------------------------------
Huararani DLHU-A22 1.54m at 1.97 g/t Au & 416 g/t
Ag
---------- ----------------------------------------
Paola DLPA-A01 2.54m at 3.17 g/t Au & 334 g/t
Ag
---------- ----------------------------------------
Tensional DLRI-A55 1.40m at 1.11 g/t Au & 316 g/t
Ag
---------- ----------------------------------------
In 2013, the exploration programme at Pallancata will focus on
the definition of structures with high quality resources from known
veins systems, the drilling campaign will also concentrate on
identifying new high grade veins, with 39,050 metres of drilling
planned in total.
San Jose
During Q4 2012, a total of 11,495 metres of exploration drilling
was carried out to incorporate further resources and new economic
areas. Following the discovery of the Emilia vein in Q3 2012 within
the known San Jose area, two further high grade structures were
discovered in Q4, the Rosario and Kospi extension veins. During the
quarter, drilling was carried out on the Kospi, Rosario, Suspiro,
Emilia and the Ayelen Extension veins. Significant intercepts
included(1) :
Vein Results
-------------- -------------------------------------
Kospi SE SJM217 9.50m at 21.25 g/t Au & 3,404
g/t Ag
-------------- -------------------------------------
Emilia SJD496 0.30m at 10.70 g/t Au & 1,818
g/t Ag
-------------- -------------------------------------
Suspiro SJD1351 0.80m at 3.65 g/t Au & 405
g/t Ag
-------------- -------------------------------------
Huevos Verdes SJD1322 1.00m at 5.99 g/t Au & 1,632
g/t Ag
-------------- -------------------------------------
In 2013, the exploration programme will include mapping and a
32,000 metres drilling campaign to continue exploration in and
around the San Jose mine and the Saavedra areas.
Ares
In Q4 2012, new structural corridors were detected as a result
of the geophysics survey conducted in Q3 2012. Near mine
exploration continued on the Apolo vein in the NW corridor. In
addition, several new anomalies were detected and drilling was
carried out in the Rosario and Isabel veins to define new
resources. During the quarter, a total of 7,720 metres of drilling
was carried out at Ares. Positive intercepts included(1) :
Vein Results
------- ----------------------------------------
Isabel AM-1515 1.70m at 3.36 g/t Au & 578 g/t
Ag
AS-1512 1.20m at 0.18 g/t Au & 173 g/t
Ag
------- ----------------------------------------
Apolo AM-1497 0.70m at 0.10 g/t Au & 243 g/t
Ag
------- ----------------------------------------
In 2013, the exploration programme and 2,800 metres drilling
campaign at Ares will focus on potential in the extensions of known
veins and in new structures.
Moris
Exploration work at Moris during Q4 2012 focused on identifying
new economic structures. During the quarter, 2,219 metres of
drilling was carried out in the La Mexicana, Los Alamos and San
Luis veins. Positive intercepts included2:
Vein Results
------------ ---------------------------------------
La Mexicana DM-34 1.72m at 4.97 g/t Au & 7 g/t Ag
DM-37 4.91m at 2.56 g/t Au & 3 g/t Ag
DM-36 5.85m at 1.74 g/t Au & 3 g/t Ag
------------ ---------------------------------------
During 2013, further mapping and sampling will be carried out in
order to better define the new resource areas.
Hochschild takes a very conservative approach to resource
delineation and is one of the few companies that apply the same cut
off grades to reserves and resources. Hochschild will publish
audited reserves and resources tables as at 31 December 2012 on 13
March 2013.
Advanced Projects
In November 2012 the Company announced that it 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 scheduled for the second half of 2014.
Inmaculada
Following the awarding of the contract for plant construction in
August for $142 million, the detailed plant engineering was in
progress during Q4 2012, as well as the detailed engineering for
the mine. Also during the quarter, engineering for the camp
facilities and for the workshops, warehouses and offices was
completed. Construction of the water treatment plant was also in
progress and construction of the exploration tunnels continued,
with 2,920 metres completed during the year. Work also continued on
the construction of the electricity transmission line during the
quarter.
In Q4 2012, the Company continued to receive encouraging results
from the exploration drilling programme in and around the
Inmaculada project. Exploration was focused on the definition and
incorporation of potential systems outside of the current resource
area. During the quarter, five drill rigs were in operation and a
total of 13,046 metres of drilling was carried out, focused on the
Tensional Lourdes, Martha and Juliana veins, as well as the newly
discovered Susana and Mirella veins where assay results showed
excellent mineralisation. Positive results included(2) :
Vein Results
-------- --------------------------------------
Martha MAR12-006 0.85m at 51.77 g/t Au & 175
g/t Ag
-------- --------------------------------------
Susana MAR12-006 2.52m at 4.97 g/t Au & 531
g/t Ag
SUS12-001 1.20m at 9.25 g/t Au & 372
g/t Ag
-------- --------------------------------------
Lourdes LOU12-013 1.13m at 18.23 g/t Au &155
g/t Ag
-------- --------------------------------------
Mirella LOU12-023 1.60m at 8.54 g/t Au & 81
g/t Ag
-------- --------------------------------------
In 2013, the 13,450 metres drilling campaign will continue with
near mine and potential drilling to expand the current resources at
Inmaculada.
Crespo
At the Company's 100% owned Crespo project, detailed engineering
for the mine and the plant was in progress during the fourth
quarter and is expected to be completed in Q1 2013. Also during the
quarter, final engineering for the camp design and construction was
completed whilst work on the access road to the project
commenced.
On 28 December 2012, the surface water study for the Crespo
project was approved and subsequently on 11 January 2013, the
surface land agreement for the project was approved by the local
community. Both of these are key steps in the project's approval
process and the Company is now in a position to submit the
project's construction permit application. Also during the quarter,
the Company continued the process of responding to the relevant
observations with regards to the Environmental Impact Study ('EIS')
permit whilst community relations support programmes also continued
during the quarter.
During Q4 2012, drilling continued with three drill rigs in
operation, and a total of 1,163 metres of drilling was completed
during the quarter. Exploration was focused on the transition of
inferred resources into measured and indicated resources and to
test the extension of gold mineralisation below the current pit.
Positive results were received at superficial levels and in
addition, assay results from the Quescha area following drilling
carried out in the previous quarter confirmed a structural domain
mineralisation. Positive intercepts included3:
Vein Results
------------- --------------------------------------
Queshca area DDHQS1207 22.50m at 2.86 g/t Au & 29
g/t Ag
DDHQS1205 1.60m at 1.93 g/t Au & 10
g/t Ag
DDHQS1208 24.00m at 8.93 g/t Au & 45
g/t Ag
------------- --------------------------------------
In 2013, a surface exploration programme at Crespo will be
carried out.
Azuca
The drilling programme continued at Azuca during Q4 2012; four
drill rigs were in operation and a total of 14,391 metres of
drilling was completed on the Azuca West, Paralela, Colombiana,
Yanamayo, Esperanza and Prometida veins. Assay results from the
Azuca West vein confirmed the continuity of a high grade mineral
structure to the southwest. Furthermore, the North-West Colombiana
vein intercepts also yielded excellent results that indicate a new
possible orientation or new structures towards the north. Positive
results included(3) :
Vein Results
------------ ------------------------------------------
Yanamayo NE DAYA-A1203 0.90m at 3.61g/t Au & 421 g/t
Ag
------------ ------------------------------------------
Azuca West DAYA-A1205 2.80m at 1.90g/t Au & 854 g/t
Ag
DAYA-A1205 4.10m at 2.37g/t Au & 769 g/t
Ag
------------ ------------------------------------------
Paralela DAYA-A1209 1.50m at 1.57g/t Au & 439 g/t
Ag
------------ ------------------------------------------
The 2013 drilling programme at Azuca will focus on identifying
new high grade potential mineral structures with a programme of
17,100 metres planned.
Greenfield pipeline
In 2012, a total of 53,188 metres was drilled as part of the
greenfield exploration programme. In Q4 2012, drilling was carried
out at ten projects, of which five were 'Company Makers' and five
were 'Medium Scale' projects. Highlights of the greenfield
exploration programme in Q4 2012 are detailed below.
Victoria
At the Victoria Company Maker project in Chile, a total of 2,754
metres was drilled during Q4 2012 in the Picaron Exotic, Victoria
II and Incahuasi areas. The geological interpretation of historical
exploration data was also completed during the quarter and new
drill targets were identified in the Victoria II and Incahuasi
areas. A detailed mapping programme has been designed in order to
define targets for the new exploration season in the coming
year.
Valeriano
During Q4 2012, there were two drill rigs in operation at the
Valeriano Company Maker project in Chile, and a total of 2,715
metres of drilling was completed. The current exploration programme
is being extended into Q1 2013 to further test the porphyry copper
and gold mineralisation at depth.
La Falda
At the La Falda Company Maker project in Chile, the drilling
programme commenced in Q4 2012 totaling 3,009 metres with reported
mineral alternation structures consisting of chlorite and magnetite
with banded quartz veins. Depending on the results of this drill
campaign, a second round of drilling is expected in Q1 2013.
Mercurio
At the Mercurio Company Maker project in Mexico, drilling in the
Santa Rosa area, totaling 6,000 metres, was completed in Q4 2012
and assay results are pending. Drilling will re-commence in Q1 2013
and will concentrate on the Barite structure area.
Alpacocha
The exploration programme at the Alpacocha Company Maker copper
project in Peru, totalling 3,012 metres, was completed in Q4 2012.
An aerial magnetic geophysical survey was also conducted during the
quarter as part of the detailed mapping of the entire area of the
property.
Cuello Cuello
The second phase of the exploration programme at the Cuello
Cuello Medium Scale project in Peru commenced in Q4 2012 following
the high gold and silver grades intercepted in the initial drilling
campaign. During the quarter two drill rigs were in operation and
672 metres of drilling was carried out and intercepted near surface
mineralised structures containing gold and silver. The drilling
campaign will continue in Q1 2013.
Farallon
At the Farallon Medium Scale project in Peru, the necessary
social permits were received and the drilling programme commenced
in late Q4 2012 to test the economic potential of the property
where historical drilling identified moderate silver and gold
mineralisation. The drilling programme is expected to continue in
Q1 2013.
2013 Exploration Budget Overview
Hochschild has reaffirmed its commitment to its exploration
strategy and has assigned an exploration budget of $77 million for
2013 which will be split between exploration work at the Company's
existing operations, its Advanced Projects and greenfield projects.
The approximate investment split is expected to be as follows:
Brownfield at Current Operations (26%)
-- Following the Company's success in not only extending the
life of mine at its current operations but also in improving the
resource quality, the 2013 exploration strategy will be mostly
focused on identifying new potential and near mine high grade
areas.
Advanced Projects (14%)
-- At Inmaculada and Crespo, exploration efforts will be focused
on identifying new potential and near mine high grade areas. At
Azuca, Hochschild will concentrate on the exploration of high
quality resources that better support a significant investment.
Greenfield (44%)
-- Company Makers (23%) - continuing the exploration drilling
campaigns and conducting further analysis at projects including
Mercurio (Mexico), Baborigame (Mexico), Victoria (Chile), Valeriano
(Chile), Encrucijada (Chile), La Falda (Chile), Potrero
(Mexico)
-- Medium Scale (7%) - developing the project pipeline that
includes Cuello Cuello (Peru), Farallon (Peru), San Martin (Peru),
Huacullo (Peru), among others
-- Success Fund (10%) -- an additional budget available for
further exploration and drilling work dependent on positive results
from existing exploration programmes throughout the year
-- Copper Projects (1%) - continuing exploration work at the
copper projects located in the southern Andes of Peru
-- Generative Programme (2%) - aimed at further expanding the
Company's land package of premium properties in the four key
countries
Others (16%)
-- This includes budgets for corporate and support activities
for the Company's team of over 120 geologists, employed throughout
exploration offices in Peru, Argentina, Chile and Mexico.
2013 Outlook
Hochschild's production target for 2013 is maintained at the
2012 level of 20.0 million attributable silver equivalent ounces.
The Company expects 2013 production at its core Peruvian operations
to be similar to that of 2012 whilst at San Jose, a small plant
capacity expansion (of 10 per cent) is expected to result in
increased tonnage. As anticipated, production at Ares will continue
to decline reflecting lower tonnages and grades, whilst production
at Moris is not expected to be material.
The Company expects the increase in overall 2013 unit cost per
tonne in Peru to be approximately 15-20% excluding royalties and
the increased refining cost due to the effects of the dore project
at Arcata. In Argentina, expected continuing local inflation,
partially offset by local currency devaluation, is anticipated to
result in a unit cost per tonne increase of 10-15%.
As at 31 December 2012, Hochschild remains in a strong financial
position, with total cash of approximately $359 million on the
balance sheet (31 December 2011: $627 million), which includes
payment for 86.7% of Andina Minerals Inc, and minority investments
valued at $256 million (as at 31 December 2012). In addition, the
Company's sole item of outstanding long-term debt is its $115
million convertible bond.
__________________________________________________________________________________
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)
Q4 Q3 Q4 12 mths 12 mths
2012 2011
2012 2012 2011
------------------------- ------- ------- ------- -------- --------
Silver production
(koz) 4,773 4,942 5,477 19,443 21,363
Gold production
(koz) 41.34 41.53 44.12 164.34 180.51
Total silver equivalent
(koz) 7,254 7,434 8,124 29,304 32,193
Total gold equivalent
(koz) 120.89 123.90 135.39 488.40 536.56
Silver sold (koz) 5,069 5,263 6,326 18,928 21,792
Gold sold (koz) 45.93 47.95 54.14 159.79 181.96
------------------------- ------- ------- ------- -------- --------
[1] Total production includes 100% of all production, including
production attributable to joint venture partners at San José and
Pallancata.
ATTRIBUTABLE GROUP PRODUCTION(1)
Q4 Q3 Q4 12 mths 12 mths
2012 2011
2012 2012 2011
--------------------------- ------ ------ ------ -------- --------
Silver production
(koz) 3,240 3,424 3,849 13,550 14,980
Gold production
(koz) 27.35 28.53 30.54 111.82 127.29
Attrib. silver equivalent
(koz) 4,881 5,136 5,681 20,260 22,617
Attrib. gold equivalent
(koz) 81.35 85.60 94.68 337.66 377.0
--------------------------- ------ ------ ------ -------- --------
[1] Attributable production includes 100% of all production from
Arcata, Ares and Moris, 60% from Pallancata and 51% from San
José.
QUARTERLY PRODUCTION BY MINE
ARCATA
Q4 Q3 Q4 12 mths 12 mths
2012 2011
Product 2012 2012 2011
--------------------- -------- -------- -------- -------- --------
Ore production
(tonnes) 234,354 194,484 190,609 773,498 687,966
Average head grade
silver (g/t) 227 260 297 271 312
Average head grade
gold (g/t) 0.75 0.78 0.85 0.83 0.88
Silver produced
(koz) 1,156 1,358 1,593 5,526 6,081
Gold produced (koz) 4.08 4.15 4.48 17.27 17.38
Silver equivalent
produced (koz) 1,401 1,607 1,861 6,562 7,124
Silver sold (koz) 1,280 1,297 1,732 5,236 5,979
Gold sold (koz) 4.36 3.78 4.91 15.94 16.66
--------------------- -------- -------- -------- -------- --------
ARES
Q4 Q3 Q4 12 mths 12 mths
2012 2011
Product 2012 2012 2011
--------------------- ------- ---------- ------- -------------- --------
Ore production
(tonnes) 89,354 86,437 97,115 336,423 344,085
Average head grade
silver (g/t) 58 55 56 54 61
Average head grade
gold (g/t) 2.64 2.83 3.01 2.65 2.90
Silver produced
(koz) 127 128 132 481 581
Gold produced (koz) 6.46 7.19 7.94 26.28 29.03
Silver equivalent
produced (koz) 515 559 608 2,058 2,323
Silver sold (koz) 155 141 190 473 598
Gold sold (koz) 8.07 7.74 10.35 25.75 29.70
--------------------- ------- ---------- ------- -------------- --------
PALLANCATA(1)
Q4 Q3 Q4 12 mths 12 mths
2012 2011
Product 2012 2012 2011
--------------------- ------------ ---------- -------- -------------- ----------
Ore production
(tonnes) 288,858 277,093 293,060 1,094,250 1,070,466
Average head grade
silver (g/t) 255 257 293 256 301
Average head grade
gold (g/t) 1.09 1.18 1.27 1.09 1.33
Silver produced
(koz) 1,942 1,893 2,289 7,441 8,767
Gold produced (koz) 7.40 6.81 8.30 26.23 33.88
Silver equivalent
produced (koz) 2,386 2,302 2,787 9,014 10,800
Silver sold (koz) 2,071 1,652 2,636 7,280 9,064
Gold sold (koz) 7.76 5.88 9.32 25.07 33.90
--------------------- ------------ ---------- -------- -------------- ----------
(1) The Company has a 60% interest in Pallancata.
SAN JOSE(1)
Q4 Q3 Q4 12 mths 12 mths
2012 2011
Product 2012 2012 2011
--------------------- ------------ ---------- -------- ------------- --------
Ore production
(tonnes) 128,940 136,577 126,675 509,851 462,825
Average head grade
silver (g/t) 422 402 412 417 444
Average head grade
gold (g/t) 6.00 5.24 5.68 5.79 5.86
Silver produced
(koz) 1,545 1,552 1,454 5,953 5,870
Gold produced (koz) 22.50 20.97 20.93 85.77 80.95
Silver equivalent
produced (koz) 2,895 2,810 2,710 11,099 10,727
Silver sold (koz) 1,553 2,166 1,750 5,897 6,087
Gold sold (koz) 23.16 29.13 24.95 84.29 82.42
--------------------- ------------ ---------- -------- ------------- --------
[1] The Company has a 51% interest in San José.
MORIS
Q4 Q3 Q4 12 mths 12 mths
2012 2011
Product 2012 2012 2011
--------------------- ------------- ---------- ------ --------------- --------
Ore production
(tonnes) - - - - 858,028
Average head grade
silver (g/t) - - - - 5.02
Average head grade
gold (g/t) - - - - 0.96
Silver produced
(koz) 4 11 9 43 64
Gold produced (koz) 0.90 2.41 2.46 8.79 19.26
Silver equivalent
produced (koz) 58 155 157 570 1,220
Silver sold (koz) 11 7 18 42 64
Gold sold (koz) 2.58 1.43 4.61 8.74 19.27
--------------------- ------------- ---------- ------ --------------- --------
* Ounces sold figures for all operations have been restated to
include gross revenue divided by gross ounces (previously included
net revenue divided by net ounces)
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 -
1 Please note that all mineralised intersections in this release
are quoted as down-hole lengths, not true widths.
2 Please note that all mineralised intersections in this release
are quoted as down-hole lengths, not true widths.
3 Please note that all mineralised intersections in this release
are quoted as down-hole lengths, not true widths.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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