Hochschild Mining PLC AGM Statement (8948F)
May 30 2013 - 6:02AM
UK Regulatory
TIDMHOC
RNS Number : 8948F
Hochschild Mining PLC
30 May 2013
30 May 2013
2013 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:
"The last year was, once again, a very busy one for our Company.
I have no doubt that the progress we achieved together with the
implementation of our recent cost optimisation plans will leave
Hochschild fully prepared for the challenges that lie ahead with
regards to the volatile price environment and the ongoing
construction of our Advanced Projects.
Let me begin by giving you a brief overview of our 2012
performance. Production at our mines was 20.3 million attributable
silver equivalent ounces which was in line with expectations and we
therefore generated revenue of $818million, with EBITDA of $385
million and earnings per share of 19 cents. The Board decided to
maintain the total dividend at 6 cents per share.
In 2012, we continued to execute our organic growth strategy by
making considerable progress with the approval of the feasibility
studies at our two Advanced Projects, Inmaculada and Crespo. I am
happy to report that we are on track to obtain permits in the
second half of this year with production to be commissioned at both
projects in the second half of next year. We are excited by the
potential of these projects which will increase our current
production levels by 50% and the significant exploration upside
opportunity, in particular at Inmaculada.
Our brownfield exploration results were significant, with high
grade discoveries at all of our main operations whilst our
greenfield exploration programme also saw meaningful progress both
in the Company Maker and Medium Scale categories. We remain
confident that our commitment to exploration investment over the
last few years has been key to creating the foundations for
long-term shareholder value.
We have also periodically been able to supplement our organic
growth with selective acquisitions and, in November, we announced
the purchase of Andina Minerals whose Volcan project presents an
attractive opportunity and one that was secured at a purchase price
significantly below recent comparable transactions. Clearly this is
a project for the long term but we believe it is a viable option to
diversify our asset base by building a strong presence in what is
arguably one of the most mining friendly jurisdictions.
The recent extreme volatility in the precious metal markets has
led us to implementing an action plan to conserve capital and
optimise cashflow. Such plans were originally put in place as part
of our normal ongoing review of market conditions and I am pleased
to report that they have already begun to deliver significant
savings, particularly with respect to discretionary elements of our
Brownfield and Greenfield exploration programmes with the overall
exploration budget reduced by 29% to $55 million. In addition, the
management team have identified savings following negotiations with
suppliers of equipment and materials as well as through changes to
the mine development budget that are expected to materially impact
both the unit cost per tonne at our main operations as well as the
forecast level of sustaining capital expenditure.
Turning to the composition of our Board, I am delighted that in
2012 we were able to announce the appointment of Enrico Bombieri as
an Independent Non-Executive Director. Enrico brings extensive
global capital markets' experience from his previous senior
management roles at JP Morgan. I am also grateful to Sir Malcolm
Field for agreeing to postpone his retirement from the Board until
the end of 2013 allowing us to further benefit from his invaluable
contribution.
On behalf of the Board, I would like to thank the entire team
for another year of resilient performance, 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 and one in southern Argentina. Hochschild also has
numerous long-term projects throughout the Americas.
This information is provided by RNS
The company news service from the London Stock Exchange
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