_____________________________________________________________________________________
24 July 2024
Production Report for the 6
months ended 30 June 2024
Hochschild Mining PLC ("Hochschild"
or "the Company") (LSE: HOC) (OTCQX: HCHDF) is pleased to announce
its production report for H1 2024.
Eduardo Landin, Chief Executive Officer
commented:
"We have delivered a robust second quarter with another good
performance from Inmaculada and a first material contribution from
our new Mara Rosa mine in Brazil and remain on track to meet our
annual production and cost guidance. We can now look forward to a
substantial increase in output in the second half which, when
combined with the current strong precious metal prices, is expected
to see the Company generate significant free
cashflow."
Operational highlights
§ Q2 2024
attributable production:[1]
o 57,815 ounces of gold
o 2.1
million ounces of silver
o 83,034 gold equivalent ounces
o 6.9
million silver equivalent ounces
§ H1
2024 attributable
production
o 103,752 ounces of gold
o 4.1
million ounces of silver
o 152,792 gold equivalent ounces
o 12.7
million silver equivalent ounces
§ Reiterate
2024 guidance:
o Production of 343,000-360,000 gold equivalent
ounces
o All-in sustaining costs of $1,510-1,550 per gold equivalent
ounce
Project & Exploration highlights
§ Mara Rosa
mine in commercial production with strong second half
forecast
§ Cerrado
Gold Inc. shareholders approved Hochschild's purchase of an option
to acquire Monte do Carmo project
o $15
million paid already for the option cost; $45 million to be paid in
instalments if the option is exercised
o Exploration & technical work ongoing
§ 2024
Brownfield drilling programme commenced with encouraging early
results from Inmaculada and Mara Rosa
ESG
highlights
§ Lost Time
Injury Frequency Rate of 1.08 (FY 2023:
0.99)[2]
§ Accident
Severity Index of 62 (FY 2023: 37)[3]
§ Water
Consumption of 136lt/person/day (FY 2023:
163lt/person/day)
§ Domestic
waste generation of 0.94 kg/person/day (FY 2023:
0.93kg/person/day)
§ ECO score
of 5.85 out of 6 (FY 2023: 5.76)[4]
Financial position
§ Total cash
of approximately $89 million as at 30 June 2024 ($73 million as at
31 March 2024)
§ Net debt
of approximately $271 million as at 30 June 2024 ($282 million as
at 31 March 2024)
§ Current
Net Debt/LTM EBITDA of approximately 0.8x as at 30 June
2024
________________________________________________________________________________________
A conference call will be held at
2.30pm (London time) on Wednesday 24 July 2024 for analysts and
investors.
Dial in details as
follows:
International Dial in: +44 330 551
0200
UK Toll-Free Number: 0808 109
0700
US Toll Free:
866-580-3963
Canada Toll Free: 866 378
3566
Password: Hochschild
Mining
Please dial into the call
approximately ten minutes before the 2.30pm start
time.
A recording of the conference call
will be available on demand on the Company's website:
________________________________________________________________________________________
Overview
In Q2 2024, Hochschild delivered
attributable production of 83,034 gold equivalent ounces or 6.9
million silver equivalent ounces with a better-than-expected
performance at Inmaculada and a solid first major contribution from
the new Mara Rosa operation. In the first half of 2024, Hochschild
produced 152,792 gold equivalent ounces or 12.7 million silver
equivalent ounces (on an attributable basis). The Company
remains on track to meet its overall 2024 attributable production
target of 343,000-360,000 gold equivalent ounces or 28.0-29.9
million silver equivalent ounces.
The Company reiterates that its
all-in sustaining cost for 2024 is expected to be in line with the
guidance of between $1,510 and $1,550 per gold equivalent ounce (or
$18.2 and $18.7 per silver equivalent ounce).
TOTAL GROUP PRODUCTION
|
|
Q2 2024
|
Q1
2024
|
Q2
2023
|
H1 2024
|
H1
2023
|
|
Silver production (koz)
|
2,589
|
2,427
|
2,955
|
5,016
|
5,393
|
|
Gold production (koz)
|
66.37
|
53.79
|
54.12
|
120.16
|
100.55
|
|
Total silver equivalent
(koz)
|
8,097
|
6,892
|
7,447
|
14,989
|
13,739
|
|
Total gold equivalent
(koz)
|
97.56
|
83.03
|
89.72
|
180.59
|
165.53
|
|
Silver sold (koz)
|
2,669
|
2,445
|
3,011
|
5,114
|
5,425
|
|
Gold sold (koz)
|
66.06
|
52.18
|
55.29
|
118.33
|
99.79
|
Total production includes 100% of all production, including
production attributable to Hochschild's joint venture partner at
San Jose.
ATTRIBUTABLE GROUP
PRODUCTION
|
|
Q2 2024
|
Q1
2024
|
Q2
2023
|
H1 2024
|
H1
2023
|
|
Silver production (koz)
|
2,093
|
1,977
|
2,386
|
4,070
|
4,442
|
|
Gold production (koz)
|
57.81
|
45.94
|
43.62
|
103.75
|
83.36
|
|
Silver equivalent (koz)
|
6,892
|
5,790
|
6,006
|
12,682
|
11,361
|
|
Gold equivalent (koz)
|
83.03
|
69.76
|
72.36
|
152.79
|
136.88
|
Attributable production includes 100% of all production from
Inmaculada, Pallancata and 51% from San Jose.
Production
Inmaculada
|
Product
|
Q2 2024
|
Q1
2024
|
Q2
2023
|
H1 2024
|
H1
2023
|
|
Ore production (tonnes
treated)
|
274,750
|
263,024
|
257,768
|
537,774
|
535,905
|
|
Average grade silver
(g/t)
|
198
|
181
|
181
|
190
|
178
|
|
Average grade gold (g/t)
|
4.29
|
4.21
|
3.92
|
4.25
|
3.85
|
|
Silver produced (koz)
|
1,578
|
1,509
|
1,300
|
3,086
|
2,573
|
|
Gold produced (koz)
|
35.62
|
36.70
|
30.64
|
72.32
|
61.85
|
|
Silver equivalent (koz)
|
4,534
|
4,555
|
3,843
|
9,089
|
7,707
|
|
Gold equivalent (koz)
|
54.63
|
54.88
|
46.30
|
109.50
|
92.86
|
|
Silver sold (koz)
|
1,645
|
1,387
|
1,357
|
3,032
|
2,561
|
|
Gold sold (koz)
|
37.18
|
34.01
|
32.10
|
71.19
|
61.39
|
Inmaculada's second quarter
production was 35,617 ounces of gold and 1.6 million ounces of
silver which amounts to a gold equivalent output of 54,626 ounces,
with both tonnage and grades in the period better-than-plan due to
the implementation of continuous improvement projects at site.
Overall, in the first half of 2024, Inmaculada produced 109,502
gold equivalent ounces (H1 2023: 92,856 ounces), an 18% improvement
on the first half of 2023 when the mine was impacted by permit
delays.
San Jose (the Company has a 51%
interest in San Jose)
|
Product
|
Q2 2024
|
Q1
2024
|
Q2
2023
|
H1 2024
|
H1
2023
|
|
Ore production (tonnes
treated)
|
143,333
|
125,520
|
143,563
|
268,853
|
272,063
|
|
Average grade silver
(g/t)
|
252
|
258
|
288
|
255
|
254
|
|
Average grade gold (g/t)
|
4.38
|
4.58
|
5.40
|
4.47
|
4.68
|
|
Silver produced (koz)
|
1,011
|
919
|
1,163
|
1,929
|
1,941
|
|
Gold produced (koz)
|
17.46
|
16.03
|
21.42
|
33.49
|
35.09
|
|
Silver equivalent (koz)
|
2,460
|
2,249
|
2,940
|
4,709
|
4,854
|
|
Gold equivalent (koz)
|
29.64
|
27.09
|
35.42
|
56.74
|
58.48
|
|
Silver sold (koz)
|
1,022
|
1,057
|
1,157
|
2,079
|
1,941
|
|
Gold sold (koz)
|
17.04
|
18.25
|
21.14
|
35.29
|
34.66
|
Q2 production at San Jose was 1.0
million ounces of silver and 17,463 ounces of gold which is 2.5
million silver equivalent ounces with higher-than-forecast grades
offset by lower tonnage. This brings the total for the first half
of the year to 4.7 million silver equivalent ounces (H1 2023: 4.9
million ounces).
Mara Rosa
|
Product
|
Q2 2024
|
Q1
2024
|
Q2
2023
|
H1 2024
|
H1
2023
|
|
Ore production (tonnes
treated)
|
466,552
|
86,192
|
-
|
552,744
|
-
|
|
Average grade silver
(g/t)
|
-
|
-
|
-
|
-
|
-
|
|
Average grade gold (g/t)
|
1.32
|
1.03
|
-
|
1.28
|
-
|
|
Silver produced (koz)
|
-
|
-
|
-
|
-
|
-
|
|
Gold produced (koz)
|
13.29
|
1.06
|
-
|
14.35
|
-
|
|
Silver equivalent (koz)
|
1,103
|
88
|
-
|
1,191
|
-
|
|
Gold equivalent (koz)
|
13.29
|
1.06
|
-
|
14.35
|
-
|
|
Silver sold (koz)
|
-
|
-
|
-
|
-
|
-
|
|
Gold sold (koz)
|
11.84
|
-
|
-
|
11.84
|
-
|
The Mara Rosa mine reached
commercial production in mid-May and produced 13,291 ounces of gold
in the period. The processing plant has already reached nominal
capacity of 7,000 tonnes per day and ongoing optimisation
initiatives are currently in place with the aim of reaching a
stable throughput of 8,000 tonnes per day.
Average realisable prices and sales
Average realisable precious metal
prices in Q2 2024 (which are reported before the deduction of
commercial discounts) were $2,291/ounce for gold and $30.2/ounce
for silver (Q2 2023: $1,958/ounce for gold and $23.4/ounce for
silver). For H1 2024, average realisable precious metal prices were
$2,210/ounce for gold and $27.0/ounce for silver (H1 2023:
$1,957/ounce for gold and $23.3/ounce for silver).
Brownfield exploration
Inmaculada
During the second quarter of the
year, the team carried out a further 5,948m of drilling for
potential and resources in the Tesoro, Nicolas, Andrea, and Sara
vein structures.
|
Vein
|
Results (potential)
|
|
Tesoro
|
IMS24-231A: 7.1m @ 7.6g/t Au &
794g/t Ag
IMS24-221: 1.0m @ 8.8g/t Au &
27g/t Ag
IMS24-222: 38.8m @ 5.1g/t Au &
303g/t Ag
IMS24-227A: 3.1m @ 6.4g/t Au &
141g/t Ag
IMM24-380: 4.6m @ 3.5g/t Au &
242g/t Ag
IMS24-219: 3.3m @ 0.3g/t & 21g/t
Ag
|
|
Sara
|
IMM24-386: 1.2m @ 3.2g/t Au &
250g/t Ag
IMM24-384: 1.6m @ 2.8g/t Au &
164g/t Ag
IMM24-390: 1.0m @ 2.9g/t Au &
123g/t Ag
IMM24-388: 1.3m @ 1.8g/t Au &
115g/t Ag
IMM24-389: 1.2m @ 1.8g/t Au &
111g/t Ag
|
|
Nicolas
|
IMM24-380: 1.2m @ 0.7g/t Au &
12g/t Ag
|
|
Josefa
|
IMM24-380: 1.5m @ 11.0g/t Au &
885g/t Ag
|
|
Andrea
|
IMM24-380: 0.9m @ 3.5g/t Au &
223g/t Ag
IMS24-221: 2.3m @ 1.7g/t Au &
60g/t Ag
|
During the third quarter, the
Company expects to carry out four potential drill holes in the Kary
vein (approximately 2,500m of drilling) as well as 12,000m of
resource drilling in the Tesoro and Nicolas veins.
San Jose
During the second quarter of the
year, the team carried out a further 4,460m of drilling for
potential and resources in the Dalia, Emilia, Sigmoide Odin Sur
vein structures
|
Vein
|
Results (potential)
|
|
Dalia
|
SJD-2800: 1.5m @ 30.8g/t Au &
66g/t Ag
SJD-2801: 0.8m @ 0.1/t Au & 3g/t
Ag
|
|
Emilia
|
SJM-664: 1.0m @ 6.5g/t Au &
47g/t Ag
SJM-669: 0.8m @ 1.6g/t Au &
108g/t Ag
SJM-663: 0.8m @ 1.0g/t Au &
74g/t Ag
SJM-666: 0.9m @ 0.4g/t Au & 6g/t
Ag
SJM-668: 0.8m @ 0.1g/t Au & 4g/t
Ag
|
|
Sigmoide Odin Sur
|
SJD-2801: 0.9m @ 1.0g/t Au &
11g/t Ag
SJD-2802: 0.9m @ 0.2g/t Au &
47g/t Ag
|
|
Frea
|
SJD-2844: 3.9m @ 31.6g/t Au &
1,809g/t Ag
SJM-663: 12.1m @ 12.4g/t Au &
94g/t Ag
SJM-666: 12.0m @ 5.8g/t Au &
45g/t Ag
SJM-673: 3.6m @ 3.4g/t Au &
50g/t Ag
SJM-669: 2.9m @ 0.9g/t Au &
15g/t Ag
SJM-670: 1.0m @ 0.3g/t Au & 8g/t
Ag
SJD-2847: 1.1m @ 0.3g/t Au &
3g/t Ag
SJD-2846: 3.0m @ 0.3g/t Au &
7g/t Ag
SJM-668: 4.9m @ 0.2g/t Au & 3g/t
Ag
SJM-664: 6.2m @ 0.1g/t Au & 5g/t
Ag
|
Mara Rosa
The Mara Rosa brownfield programme
has already commenced and in the second quarter, 137m of potential
drilling was executed in the Caxias-Anglelim target as well as
2,800m of resource drilling below the existing Posse pit which
confirmed that mineralisation continues at lower levels.
|
Vein
|
Results (resources)
|
|
Posse
|
24POSP_003: 14.2m @ 0.8g/t
Au
Including: 9.2m @ 1.1g/t
Au
24POSP_004: 35.7m @ 1.4g/t
Au
including: 9.2m @ 2.4g/t Au
11.0m @ 2.1g/t Au
1.1m @ 15.1g/t Au
|
The plan for the third quarter of
2024 is to carry out six holes of resource drilling once 2.495m of
drilling has been completed below the Posse pit
Financial position
Total cash was approximately $89
million as at 30 June 2024 resulting in a net debt position of
approximately $271 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) 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 owns the Mara
Rosa Advanced Project in Brazil as well as 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
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