Hochschild Mining PLC Revised 2020 Guidance (1511Y)
September 07 2020 - 2:00AM
UK Regulatory
TIDMHOC
RNS Number : 1511Y
Hochschild Mining PLC
07 September 2020
_____________________________________________________________________________________
7 September 2020
Confirmation of Full Capacity at Inmaculada and Revised 2020
Guidance
Highlights
-- Inmaculada operating at full capacity
-- 2020 full year guidance reissued
-- Overall attributable production target for 2020 of
280,000-290,000 gold equivalent ounces or 24-25m silver equivalent
ounces [1]
-- All-in sustaining costs expected to be $1,250-$1,290 per gold
equivalent ounce ($14.5-15.0 per silver equivalent ounce)
-- Revised total sustaining and development capital expenditure
expected to be approximately $110-120 million
-- 2020 brownfield exploration budget increased to $37 million
with greenfield budget at $9 million
Ignacio Bustamante, CEO commented,
"I am pleased to report that the team has carried out a
successful remobilisation and ramp-up at our flagship Inmaculada
operation and that we are now running the mine at full capacity. We
have also reinstated our guidance for 2020 which reflects the
impact of the ongoing restrictions in both Peru and Argentina but
is expected to deliver a solid second half of production with
strong expected cashflow generation."
Hochschild Mining PLC (HOC.LN) (OTCMKTS: $HCHDF) ("Hochschild"
or "the Company") is today announcing that its flagship Inmaculada
mine is currently running at full capacity. As with all its
operations, the Company has implemented a more stringent set of
health protocols at the mine than mandated by authorities and
introduced a comprehensive testing programme. The aim is to
prioritise the health of the Company's employees above business
continuity and this has resulted in a steady ramp-up that started
on 26 July 2020.
The Company is also announcing today its revised 2020 guidance
following the completion of an assessment of the overall impact
from the stoppages to date and the resulting revised mine plans
which also reflect ongoing Covid-19 related restrictions.
Revised guidance
Production
The overall revised attributable production target for 2020 is
280,000-290,000 gold equivalent ounces or 24.0-25.0 million silver
equivalent ounces. The reduction versus the original guidance is
principally due to the operational stoppages and also reflects
temporary delays in mine sequencing.
Costs
The revised all-in sustaining cost from operations in 2020 is
expected to be between $1,250 and $1,290 per gold equivalent ounce
or $14.5 and $15.0 per silver equivalent ounce. The increase versus
the original guidance reflects the impact of Covid-19 related
stoppages including: reduced production resulting in higher capital
expenditure per ounce; temporary lower grades due to revised mine
plan sequencing; and the impact of government transport
restrictions on the availability of people at San Jose. In
addition, the figure reflects an increase in infill drilling at
Inmaculada to convert Inferred into Measured and Indicated
resources.
Capital expenditure
The overall revised capital expenditure budget for 2020 is
approximately $110-120 million allocated to sustaining and
development expenditure and reflects deferred mine development at
Inmaculada and San Jose due to the stoppages offset by increased
infill drilling at Inmaculada and additional mine development at
Pallancata.
Exploration
The brownfield exploration budget for 2020 has been increased to
approximately $37 million with the greenfield and advanced project
budget now approximately $9 million.
________________________________________________________________________________________
Enquiries:
Hochschild Mining PLC
Charles Gordon +44 (0)20 3709 3264
Head of Investor Relations
Hudson Sandler
Charlie Jack
+44 (0)207 796 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.
_____________________________________________________________________________________
LEI: 549300JK10TVQ3CCJQ89
- ends -
[1] All equivalent figures assume a gold/silver ratio of
86x.
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