TIDMHOC
RNS Number : 3616D
Hochschild Mining PLC
28 June 2021
________________________________________________________________________________
28 June 2021
Report on Payments to Governments 2020
Introduction
This Report provides an overview of the payments to governments
made by Hochschild Mining PLC and its subsidiaries (hereinafter
referred to as "Hochschild") in 2020 as required under the UK's
Report on Payments to Governments Regulations 2014 (as amended)
(the "UK Regulations"). The UK Regulations apply to large UK
incorporated companies like Hochschild that are involved in the
exploration, prospection, discovery, development and extraction of
minerals. This Report is also intended to satisfy the requirements
of the Disclosure Guidance and Transparency Rules of the Financial
Conduct Authority in the United Kingdom.
Basis for preparation
Legislation : This Report is prepared in accordance with the UK
Regulations.
Reporting entities : This Report includes payments to
governments made by Hochschild Mining PLC and its subsidiary
undertakings ("Hochschild").
Activities : Payments made by Hochschild to governments arising
from activities involving the exploration, prospection, discovery,
development and extraction of minerals ("extractive activities")
are disclosed in this Report. For a fully integrated project, which
does not have an interim contractual cut off point where a value
can be attached or ascribed separately to the extractive activities
and to other processing activities, payments to governments will
not be artificially split but disclosed in full.
Government : Government includes any national, regional or local
authority of a country, and includes a department, agency or entity
that is a subsidiary of a government.
Project : Payments are reported at project level except that
payments that are not attributable to a specific project or are in
respect of obligations imposed at entity level are reported by
entity. Project is defined as operational activities which are
governed by a single contract, licence, lease, concession or
similar legal agreement, and form the basis for payment liabilities
with a government. If such agreements are substantially
interconnected, those agreements are to be treated as a single
project. "Substantially interconnected" means forming a set of
operationally and geographically integrated contracts, licences,
leases or concessions or related agreements with substantially
similar terms that are signed with a government giving rise to
payment liabilities. Such agreements can be governed by a single
contract, joint venture or other overarching legal agreement.
Indicators of integration include, but are not limited to,
geographic proximity, the use of shared infrastructure and common
operational management.
Payment : Of the types of payments required to be reported on
under the UK Regulations, the payments made by Hochschild in 2020
fall within the following categories:
-- Taxes : These are taxes paid by Hochschild on its income,
profits or production (which include resource severance tax),
including those settled by a government on behalf of Hochschild
under a tax-paid concession. Payments are reported net of refunds.
Consumption taxes, personal income taxes, sales taxes, property and
environmental taxes are excluded.
-- Royalties : These are payments for the rights to extract
mineral resources, typically at set percentage of revenue less any
deductions that may be taken.
-- Licence fees, rental fees, entry fees and other
considerations for licences and/or concessions ("Fees") : These are
fees and other sums paid as consideration for acquiring a licence
for gaining access to an area where extractive activities are
performed. Administrative government fees that are not specifically
related to the extractive sector, or to access to extractive
resources, are excluded. Also excluded are payments made in return
for services provided by a government.
OTHER
Operatorship : When Hochschild makes a payment directly to a
government arising from a project, regardless of whether Hochschild
is the operator, the full amount paid is disclosed even where
Hochschild as the operator is proportionally reimbursed by its
non-operating venture partners through a partner billing process
(cash-call).
Cash and in-kind payments : Payments are reported on a cash
basis. There were no in-kind payments made in respect of the
reporting year.
Materiality Level: For each payment type, total payments below
GBP86,000 to a government are excluded from this Report.
Exchange Rate: Payments made in currencies other than US Dollars
are translated for the purposes of this Report using the exchange
rate on the date of payment.
1. SUMMARY OF PAYMENTS TO GOVERNMENTS (Unaudited) (in USD)
Countries Taxes Royalties Fees Total
------------- -------------- ------------------ -------------- --------------------
Peru 11,672,317 - 867,560 12,539,877
Argentina 7,552,609 5,500,427 807,480 13,860,516
Chile - - 509,065 509,065
Total $19,224,926 $5,500,427 $2,184,105 $26,909,458
2. PAYMENTS BY COUNTRY (Unaudited)
(a) Peru
* By Government Department (in USD)
Taxes Royalties Fees Total
------------------------------ ------------ -------------- ----------- ------------
Superintendencia Nacional
de Administración
Tributaria 11,672,317 - - 11,672,317
Instituto Geológico
Minero y Metalúrgico - - 867,560 867,560
------------------------------ ------------ -------------- ----------- ------------
Total $11,672,317 - $867,560 $12,539,877
* By Entity/Project (in USD)
Taxes Royalties Fees Total
Entity
Compañía
Minera Ares S.A.C. 11,672,317 - 477,627 12,149,944
Project
Arcata - - 210,629 210,629
Inmaculada - - 179,304 179,304
Total $11,672,317 - $867,560 $12,539,877
(b) Argentina (in relation to the San Jose mine)
* By Government Department (in USD)
Taxes Royalties Fees Total
------------------------------ ------------ -------------- ----------- ------------
Consejo Agrario Provincial - - 807,480 807,480
Administración
Federal de Ingresos
Públicos 7,552,609 - - 7,552,609
Rentas Generales de
la Provincia de Santa
Cruz - 5,500,427 - 5,500,427
------------------------------ ------------ -------------- ----------- ------------
Total $7,552,609 $5,500,427 $807,480 $13,860,516
* By Entity (in USD)
Taxes Royalties Fees Total
------------------------------ ------------ -------------- ----------- ------------
Minera Santa Cruz S.A. 7,552,609 5,500,427 807,480 13,860,516
------------------------------ ------------ -------------- ----------- ------------
Total $7,552,609 $5,500,427 $807,480 $13,860,516
(c) Chile
* By Government Department (in USD)
Taxes Royalties Fees Total
------------------------ ------- ----------- --------- ---------
Tesorería General
de la República - - 509,065 509,065
Total - - $509,065 $509,065
* By Entity/Project (in USD)
Taxes Royalties Fees Total
Entity
Andina Minerals Chile
Ltd. - - 251,210 251,210
------------------------ ------- ----------- --------- ---------
REE UNO SpA - - 257,855 257,855
Total - - $509,065 $509,065
Project
Volcan - - 251,210 251,210
Biolantanidos - - 257,855 257,855
------------------------ ------- ----------- --------- ---------
Total - - $509,065 $509,065
________________________________________________________________________________
Enquiries:
Hochschild Mining PLC
Raj Bhasin +44 (0)7825 533495
Company Secretary
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) and
crosstrades on the OTCQX Best Market in the U.S. (HCHDF), 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.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
PGRPPUQUQUPGGWR
(END) Dow Jones Newswires
June 28, 2021 09:09 ET (13:09 GMT)
Hochschild Mining (LSE:HOC)
Historical Stock Chart
From May 2024 to Jun 2024
Hochschild Mining (LSE:HOC)
Historical Stock Chart
From Jun 2023 to Jun 2024