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Share Name Share Symbol Market Type Share ISIN Share Description
Hochschild Mining Plc LSE:HOC London Ordinary Share GB00B1FW5029 ORD 25P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -1.00 -0.48% 206.00 205.80 206.40 211.00 197.30 211.00 2,175,384 16:29:50
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Mining 569.8 78.0 6.8 31.3 1,054

Hochschild Mining PLC Interim dividend and 2021 guidance

20/11/2020 7:00am

UK Regulatory (RNS & others)


Hochschild Mining (LSE:HOC)
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RNS Number : 9454F

Hochschild Mining PLC

20 November 2020

_____________________________________________________________________________________

20 November 2020

Hochschild announces payment of interim dividend and 2021 guidance

Hochschild Mining PLC (HOC.LN) (OTCMKTS: $HCHDF) ("Hochschild" or "the Company") is pleased to announce that, at its scheduled Board meeting on 19 November 2020, the Directors of the Company (the "Board") approved the payment of an interim dividend of 4.0 cents per share ($20.6 million).

This decision was taken following the withdrawal of the recommendation to pay the 2019 final dividend and the postponement of the 2020 interim dividend due to the uncertainties caused by COVID-19 and the risk to the Company's operations. The Board recognises that whilst the Covid-19 crisis continues to affect both Peru and Argentina, Hochschild's balance sheet remains strong with the mines delivering a period of steady operation under strict health protocols supported by robust commodity prices. The Board will consider payment of a final dividend in respect of the financial year ended 31 December 2020 at its next scheduled meeting in February 2021.

The Company is also today announcing its 2021 guidance following the completion of its budget process. Details are provided below. With regards to the current year, Hochschild remains on track to meet revised production guidance of 280,000-290,000 gold equivalent ounces or 24.0-25.0 million silver equivalent ounces. The all-in sustaining cost from operations in 2020 is now expected to be lower than revised guidance at between $1,200 and $1,250 per gold equivalent ounce or $14.0 and $14.5 per silver equivalent ounce.

Ignacio Bustamante, Chief Executive Officer said:

"Hochschild continues to recover well operationally from the Covid-19 related stoppages and with the situation steadily improving in the region, our Board considers the resumption of dividends as one of its priorities and confirms our confidence in the outlook for the business. In addition, we have also published our guidance for 2021 with the production, costs and capital expenditure reflecting the steady recovery. We remain in a healthy financial position and with continued strong precious metal prices and our ambitious brownfield programme in full swing, we can look forward to an exciting 2021."

________________________________________________________________________________________

A conference call will be held at 1.00pm (London time) on Friday 20 November 2020 for analysts and investors.

Dial in details as follows:

UK Toll-Free Number: 0800 279 7204

International Dial in: +44 (0)330 336 9411

US/Canada Toll-Free Number: 888-394-8218

Pin: 3635443#

A recording of the conference call will be available on demand on the Company's website: www.hochschildmining.com

________________________________________________________________________________________

The overall attributable production target for 2021 is 360,000-372,000 gold equivalent ounces or 31.0-32.0 million silver equivalent ounces. [1]

2021 Attributable production split

 
 Operation       Oz Au Eq       Moz Ag Eq 
 Inmaculada   223,000-228,000   19.2-19.6 
             ----------------  ---------- 
 Pallancata    63,000-65,000     5.4-5.6 
             ----------------  ---------- 
 San Jose      74,000-79,000     6.4-6.8 
             ----------------  ---------- 
 Total        360,000-372,000   31.0-32.0 
             ----------------  ---------- 
 

The all-in sustaining cost from operations in 2021 is expected to be between $1,210 and $1,250 per gold equivalent ounce (or $14.1 and $14.5 per silver equivalent ounce). This includes a rise in mine development costs at San Jose in order to increase reserves and an increase in development at Inmaculada. Grades at Inmaculada are expected to be lower due to the delay in mine development resulting from the Covid-19 crisis.

2021 AISC split

 
 Operation               $/oz Au Eq    $/oz Ag Eq 
                        ------------ 
 Inmaculada              1,040-1,080   12.1-12.5 
                        ------------ 
 Pallancata              1,440-1,480   16.8-17.2 
                        ------------ 
 San Jose                1,370-1,400   15.9-16.3 
                        ------------ 
 Total from operations   1,210-1,250   14.1-14.5 
                        ------------ 
 

The overall capital expenditure budget for 2020 is approximately $120-130 million allocated to sustaining and development expenditure. This includes a $9 million investment in the delayed expansion of the tailings storage facility at Inmaculada as well as increased mine development work at Inmaculada. At San Jose, mine development work to increase reserves is also forecast to rise.

2021 Capital expenditure split

 
 Operation          Sustaining & development capital expenditure 
                                        ($m) 
 Inmaculada                            67-72 
                   --------------------------------------------- 
 Pallancata                             6-8 
                   --------------------------------------------- 
 San Jose (100%)                       47-50 
                   --------------------------------------------- 
 Total                                120-130 
                   --------------------------------------------- 
 

The brownfield exploration budget for 2021 is approximately $34 million with the greenfield and advanced project budget set at approximately $11 million and approximately $14 million for the BioLantanidos rare earth deposit in Chile which includes approximately $5 million of further exploration.

Currency option and dividend mandate

Shareholders wishing to receive their dividend in US dollars should request a currency election form from the Company's registrars using the contact details provided below. This form should be completed and returned to the registrars by 11 December 2020.

The Company's registrars can also arrange for the dividend to be paid directly into a shareholder's UK bank account. This arrangement is only available in respect of dividends paid in UK pounds sterling. To take advantage of this facility in respect of the announced dividend, a dividend mandate form, also available from the Company's registrars, should be completed and returned to the registrars by 11 December 2020. Alternatively, you can register your bank details via Signal Shares, a secure online site where you can manage your shareholding quickly and easily. To register for Signal Shares just visit www.signalshares.com . All you need is your investor code which can be found on your share certificate or a previous dividend confirmation voucher.

Shareholders who have already completed a currency election form and/or a dividend mandate form need take no further action.

Registrars' Contact Details

   --      By post: Link Group, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU 

-- By telephone: 0371 664 0300 (Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open between 09:00 - 17:30, Monday to Friday excluding public holidays in England and Wales)

________________________________________________________________________________________

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 -

[1] All equivalent figures assume a gold/silver ratio of 86x. The ratio will be updated in the Q4 2020 Production statement to adjust forecasts for the full year 2020 average ratio.

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END

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