Company Announcements

Hochschild announces 2020 guidance

Source: RNS
RNS Number : 2929U
Hochschild Mining PLC
22 November 2019
 

             

 

 

 

 

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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.

 

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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#

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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

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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.

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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

 

 

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