TIDMHOC
RNS Number : 6156E
Hochschild Mining PLC
30 June 2023
__________________________________________________________________________
30 June 2023
2022 Report on Payments to Governments
Introduction
This Report provides an overview of the payments to governments
made by Hochschild Mining PLC and its subsidiaries (hereinafter
referred to as "Hochschild Mining") in 2022 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 Mining PLC 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 arising from the activities of Hochschild Mining.
Activities : Payments made by Hochschild Mining 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 Mining in
2022 fall within the following categories:
-- Taxes : These are taxes paid by Hochschild Mining on its
income, profits or production (which include resource severance
tax), including those settled by a government on behalf of
Hochschild Mining 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 Mining makes a payment directly
to a government arising from a project, regardless of whether
Hochschild Mining is the operator, the full amount paid is
disclosed even where Hochschild Mining 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 GOVERNMENT (Unaudited) (in USD)
Countries Taxes Royalties Fees Total
------------- -------------- ------------------ --------------- -------------------------
Peru 50,536,058 - 734,799 51,270,857
Argentina 2,752,084 6,357,401 1,195,956 10,305,441
Chile - - 272,029 272,029
Total $53,288,142 $6,357,401 $2,202,784 $61,848,327
2. PAYMENTS BY COUNTRY (Unaudited)
(a) Peru
* By Government Department (in USD)
Taxes Royalties Fees Total
------------------------------ ------------ -------------- ----------------- ------------
Superintendencia Nacional
de Administración
Tributaria 50,536,058 - - 50,536,058
Instituto Geológico
Minero y Metalúrgico - - 734,799 734,799
------------------------------ ------------ -------------- ----------------- ------------
Total $50,536,058 - $734,799 $51,270,857
* By Entity/Project (in USD)
Taxes Royalties Fees Total
Entity
Compañía
Minera Ares S.A.C. 50,536,058 - 601,273 51,137,331
Project
Inmaculada - - 133,526 133,526
Total $50,536,058 - $734,799 $51,270,857
(b) Argentina (in relation to the San Jose mine)
* By Government Department (in USD)
Taxes Royalties Fees Total
------------------------------ ------------ -------------- ----------------- ------------
Consejo Agrario Provincial - - 1,195,956 1,195,956
Administración
Federal de Ingresos
Públicos 2,752,084 - - 2,752,084
Rentas Generales de
la Provincia de Santa
Cruz - 6,357,401 - 6,357,401
------------------------------ ------------ -------------- ----------------- ------------
Total $2,752,084 $6,357,401 $1,195,956 $10,305,441
* By Entity (in USD)
Taxes Royalties Fees Total
------------------------------ ------------ -------------- ----------------- ------------
Minera Santa Cruz S.A. 2,752,084 6,357,401 1,195,956 10,305,441
------------------------------ ------------ -------------- ----------------- ------------
Total $2,752,084 $6,357,401 $1,195,956 $10,305,441
(c) Chile
* By Government Department (in USD)
Taxes Royalties Fees Total
------------------------ ------- ----------- --------- ---------
Tesorería General
de la República - - 272,029 272,029
Total - - $272,029 $272,029
* By Entity/Project (in USD)
Taxes Royalties Fees Total
Entity
Andina Minerals Chile
Ltd. - - 272,029 272,029
------------------------ ------- ----------- --------- ---------
Total - - $272,029 $272,029
Project
Volcan - - 272,029 272,029
Total - - $272,029 $272,029
__________________________________________________________________________
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 owns
the Mara Rosa Advanced Project in Brazil as well as numerous
long-term projects throughout the Americas.
LEI: 549300JK10TVQ3CCJQ89
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