TIDMHOC
RNS Number : 2929U
Hochschild Mining PLC
22 November 2019
_____________________________________________________________________________________
22 November 2019
Hochschild announces 2020 guidance
Hochschild Mining PLC ("Hochschild" or "the Company") today
announces its 2020 guidance following completion of its mine
planning and budget process. The Company remains firmly on track to
meet its 2019 output guidance of 457,000 gold equivalent ounces or
37.0 million silver equivalent ounces.
Ignacio Bustamante, Chief Executive Officer said:
"Our ongoing strategy is expected to deliver consistent
production at competitive costs in 2020, with, once again, an
increase in output at Inmaculada. Following permitting delays at
Pallancata, we have decided to give our brownfield exploration team
more time to deliver additional resources and have therefore
reduced the operation's expected production to 7 million silver
equivalent ounces. However, we remain excited by the geological
potential surrounding all our operations. Finally, costs are
expected to rise moderately due to a one-off $22 million project to
increase tailings capacity at Inmaculada and the reduced production
at Pallancata."
2020 Production targets:
-- Overall attributable production target for 2020 of 432,000
gold equivalent ounces or 35.0 million silver equivalent
ounces.
-- Anticipated record output from Inmaculada of approximately
257,000 gold equivalent ounces;
-- Solid production of 14 million silver equivalent ounces
expected from the 51% owned San Jose mine in Argentina;
-- Pallancata expected to produce 7 million silver equivalent
ounces - output projections reduced to allow further time for
ongoing brownfield exploration owing to permitting delays
2020 Production split
Operation Gold production (oz approximate) Silver production (m oz
approximate)
Inmaculada 181,400 6.1
--------------------------------- ------------------------
Pallancata 19,300 5.5
--------------------------------- ------------------------
San Jose (100%) 93,300 6.5
--------------------------------- ------------------------
Total 294,000 18.1
--------------------------------- ------------------------
The all-in sustaining cost from operations in 2020 is expected
to be between $1,015 and $1,045 per gold equivalent ounce (or $12.5
and $12.9 per silver equivalent ounce) which includes a $22 million
project to expand the tailings storage facility at Inmaculada.
2020 AISC split
Operation AISC ($/oz) Au Eq AISC ($/oz) Ag Eq
------------------
Inmaculada 910-940 11.2-11.6
------------------
Pallancata 1,110-1,140 13.7-14.1
------------------
San Jose 1,130-1,160 13.9-14.3
------------------
Total from operations 1,015-1,045 12.5-12.9
------------------
The overall capital expenditure budget for 2020 is approximately
$115-130 million allocated to sustaining and development
expenditure. This includes a $22 million investment in the
above-mentioned tailings storage facility expansion at
Inmaculada.
2020 Capital expenditure split
Operation Sustaining & development capital expenditure
($m)
Inmaculada 80-85
---------------------------------------------
Pallancata 5-10
---------------------------------------------
San Jose 30-35
---------------------------------------------
Total 115-130
---------------------------------------------
The brownfield exploration budget for 2020 is approximately $36
million with the greenfield and advanced project budget set at
approximately $8 million and approximately $7 million for the
recently-acquired BioLantanidos deposit in Chile.
________________________________________________________________________________________
A conference call will be held at 12.00pm (London time) on
Friday 22 November 2019 for analysts and investors.
Dial in details as follows:
International Dial in: +44 333 300 0804
UK Toll-Free Number: 0800 358 9473
Pin: 30453450#
A recording of the conference call will be available for one
week following its conclusion, accessible from the following
telephone number:
International: +44 333 300 0819
UK Toll Free: 0800 358 2049
Pin: 301305296#
________________________________________________________________________________________
Enquiries:
Hochschild Mining PLC
Charles Gordon
+44 (0)20 3709 3264
Head of Investor Relations
Hudson Sandler
Charlie Jack
+44 (0)20 7796 4133
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 over fifty years' experience in the
mining of precious metal epithermal vein deposits and currently
operates three underground epithermal vein mines, two located in
southern Peru and one in southern Argentina. Hochschild also has
numerous long-term projects throughout the Americas.
_____________________________________________________________________________________
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.
This announcement contains information which prior to its
release could be considered inside information.
Note
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (Regulation (EU) No.596/2014). Upon the
publication of this announcement via a Regulatory Information
Service, this inside information is now considered to be in the
public domain.
LEI: 549300JK10TVQ3CCJQ89
- ends -
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCLFFLFLALLFIA
(END) Dow Jones Newswires
November 22, 2019 02:00 ET (07:00 GMT)
Hochschild Mining (LSE:HOC)
Historical Stock Chart
From Sep 2024 to Oct 2024
Hochschild Mining (LSE:HOC)
Historical Stock Chart
From Oct 2023 to Oct 2024