_____________________________________________________________________________________
24 April 2024
Production Report for the 3
months ended 31 March 2024
Eduardo Landin, Chief Executive Officer
said:
"We have delivered a good start to 2024 with production and
costs at Inmaculada and San Jose on track to meet guidance for the
year. The Mara Rosa mine started operations during the quarter, on
time and on budget, and we are currently completing the final phase
of the ramp-up process with the start of commercial production
expected very soon.
Hochschild's balance sheet remains strong and, with rising
precious metal prices and full production in Brazil, we expect to
generate robust free cashflow during the remainder of the year.
"
Operational highlights
§ Q1 2024
attributable production[1]
o 45,937 ounces of gold
o 2.0
million ounces of silver
o 69,758 gold equivalent ounces
o 5.8
million silver equivalent ounces
§ 2024
guidance on track:
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 commercial production expected in new few weeks
§ 2024
brownfield drilling campaign at Inmaculada delivering strong
results to date
§ Option
secured to acquire Monte do Carmo project, Brazil
§ Drilling
also commenced at San Jose, Pallancata and Monte do
Carmo
§ Sale of
Crespo project completed for cash consideration of $15 million and
a 1.5% NSR
ESG
highlights
§ Lost Time
Injury Frequency Rate of 1.34 (FY 2023:
0.99)[2]
§ Accident
Severity Index of 47 (FY 2023: 37)[3]
§ Water
Consumption of 136lt/person/day (FY 2023:
163lt/person/day)
§ Domestic
waste generation of 0.94kg/person/day (FY 2023:
0.93kg/person/day)
§ ECO score
of 5.77 out of 6 (FY 2023: 5.76)[4]
Financial position
§ Total cash
of approximately $73 million as at 31 March 2024 ($89 million as at
31 December 2023) reflects Mara Rosa investment, payment for Monte
do Carmo option and temporary working capital changes
§ Net debt
of approximately $282 million as at 31 March 2024 ($258 million as
at 31 December 2023)
§ Current
Net Debt/LTM EBITDA of approximately 0.90x as at 31 March
2024
_______________________________________________________________________________________
A conference call will be held at
2.00pm (London time) on Wednesday 24 April 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 2.00pm start
time.
A recording of the conference call
will be available on demand on the Company's website:
www.hochschildmining.com
________________________________________________________________________________________
Overview
In Q1 2024, Hochschild delivered
attributable production of 69,758 gold equivalent ounces or 5.8
million silver equivalent ounces with slightly better-than-expected
production from both Inmaculada and San Jose and including a first
small contribution from the new Mara Rosa mine. The Company remains
on track to meet its overall attributable production target for
2024 of 343,000-360,000 gold equivalent ounces or 28.5-29.9 million
silver equivalent ounces.
The Company reiterates that its
all-in sustaining cost for 2024 is on track 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
|
|
Q1 2024
|
Q4
2023
|
Q1
2023
|
12
mths
2023
|
|
Silver production (koz)
|
2,427
|
3,086
|
2,438
|
11,683
|
|
Gold production (koz)
|
53.79
|
64.41
|
46.44
|
225.77
|
|
Total silver equivalent
(koz)
|
6,892
|
8,432
|
6,292
|
30,423
|
|
Total gold equivalent
(koz)
|
83.03
|
101.59
|
75.81
|
366.54
|
|
Silver sold (koz)
|
2,445
|
3,231
|
2,414
|
11,567
|
|
Gold sold (koz)
|
52.18
|
68.14
|
44.50
|
221.86
|
Total production includes 100% of all production, including
production attributable to Hochschild's joint venture partner at
San Jose.
ATTRIBUTABLE GROUP
PRODUCTION
|
|
Q1 2024
|
Q4
2023
|
Q1
2023
|
12
mths
2023
|
|
Silver production (koz)
|
1,977
|
2,450
|
2,057
|
9,517
|
|
Gold production (koz)
|
45.94
|
52.73
|
39.73
|
186.09
|
|
Silver equivalent (koz)
|
5,790
|
6,827
|
5,355
|
24,962
|
|
Gold equivalent (koz)
|
69.76
|
82.25
|
64.51
|
300.75
|
Attributable production includes 100% of all production from
Inmaculada, Pallancata, Mara Rosa and 51% from San
Jose.
Production
Inmaculada
|
Product
|
Q1 2024
|
Q4
2023
|
Q1
2023
|
12
mths
2023
|
|
Ore production (tonnes
treated)
|
263,024
|
301,127
|
278,138
|
1,137,109
|
|
Average grade silver
(g/t)
|
181
|
186
|
176
|
177
|
|
Average grade gold (g/t)
|
4.21
|
4.63
|
3.78
|
4.09
|
|
Silver produced (koz)
|
1,509
|
1,500
|
1,274
|
5,515
|
|
Gold produced (koz)
|
36.70
|
39.35
|
31.21
|
137.40
|
|
Silver equivalent (koz)
|
4,555
|
4,766
|
3,864
|
16,919
|
|
Gold equivalent (koz)
|
54.88
|
57.42
|
46.56
|
203.85
|
|
Silver sold (koz)
|
1,387
|
1,587
|
1,204
|
5,488
|
|
Gold sold (koz)
|
34.01
|
41.95
|
29.29
|
136.66
|
Inmaculada's first quarter
production was 36,700 ounces of gold and 1.5 million ounces of
silver which amounts to gold equivalent output of 54,877 ounces (Q4
2023: 57,420 ounces). This was in line with the 2024 plan and puts
the mine on track to achieve its annual target. Lower tonnage and
grades versus the previous quarter are due to the scheduled mine
development catch-up resulting from the 2023 permit
delay.
San Jose (the Company has a 51%
interest in San Jose)
|
Product
|
Q1 2024
|
Q4
2023
|
Q1
2023
|
12
mths
2023
|
|
Ore production (tonnes
treated)
|
125,520
|
154,308
|
128,499
|
579,100
|
|
Average grade silver
(g/t)
|
258
|
297
|
215
|
270
|
|
Average grade gold (g/t)
|
4.58
|
5.51
|
3.88
|
5.03
|
|
Silver produced (koz)
|
919
|
1,297
|
778
|
4,422
|
|
Gold produced (koz)
|
16.03
|
23.84
|
13.68
|
80.99
|
|
Silver equivalent (koz)
|
2,249
|
3,276
|
1,913
|
11,144
|
|
Gold equivalent (koz)
|
27.09
|
39.47
|
23.05
|
134.26
|
|
Silver sold (koz)
|
1,057
|
1,339
|
784
|
4,274
|
|
Gold sold (koz)
|
18.25
|
24.54
|
13.52
|
77.23
|
The first quarter at San Jose in
Argentina is traditionally a shorter operational period due to the
scheduled hourly workers' holiday which was taken during February
this year. Production was 0.9 million ounces of silver and 16,027
ounces of gold, which makes 27,094 gold equivalent ounces and keeps
the mine on track to achieve its annual target.
Average realisable prices and sales
Average realisable precious metal
prices in Q1 2024 (which are reported before the deduction of
commercial discounts) were $2,106/ounce for gold and $23.6/ounce
for silver (Q1 2023: $1,956/ounce for gold and $23.0/ounce for
silver).
Mara Rosa project
Mara Rosa
|
Product
|
Q1 2024
|
Q4
2023
|
Q1
2023
|
12
mths
2023
|
|
Ore production (tonnes
treated)
|
86,192
|
-
|
-
|
-
|
|
Average grade silver
(g/t)
|
-
|
-
|
-
|
-
|
|
Average grade gold (g/t)
|
1.03
|
-
|
-
|
-
|
|
Silver produced (koz)
|
-
|
-
|
-
|
-
|
|
Gold produced (koz)
|
1.06
|
-
|
-
|
-
|
|
Silver equivalent (koz)
|
88
|
-
|
-
|
-
|
|
Gold equivalent (koz)
|
1.06
|
-
|
-
|
-
|
|
Silver sold (koz)
|
-
|
-
|
-
|
-
|
|
Gold sold (koz)
|
-
|
-
|
-
|
-
|
The Mara Rosa mine delivered its
first gold pour in February and produced just over 1,000 ounces of
gold in the period. Ramp-up is progressing according to schedule
and commercial production is expected in the next few
weeks.
Health and Safety
Hochschild's health and safety
standards have been implemented at the project, including the
introduction of the Company's Seguscore safety indicator. The
project has recently surpassed six million injury-free working
hours and year-to-date Frequency and Severity indices are currently
at 0.16 and 0.80 respectively.
Human Resources
The operational personnel hiring
programme is 83% complete and negotiations on a collective
agreement with the local unions has been completed.
Mining
Total mining in Q1 was 782kt of
which 217kt was ore and 565kt of waste. Both the waste dumps and
ore stockpiles are complete.
Plant
The thickener and Ball Mill no 1
were successfully commissioned in January 2024 whilst Ball Mill no
2 was commissioned in February. The leaching tanks were also
successfully commissioned in the first quarter along with the
elution and smelting areas with the filtration plant commencing its
commissioning in February. There is no
remaining equipment to be commissioned in order to advance to
commercial production.
Permitting & Sustainability
The operating license was received
in January 2024 whilst, also in Q1, the H2 2023 environmental and
social performance report was submitted to the Goias Environmental
Agency.
Brownfield exploration
Inmaculada
During the first quarter of the
year, the team carried out 4,051m of drilling for potential in the
Tesoro, Nicolas, Andrea, Josefa, Rita, Split Josefa, Laura, and
Split JNE vein structures with the key results coming from the
Tesoro and Nicolas veins.
|
Vein
|
Results (potential)
|
|
Tesoro
|
IMM23-361: 2.0m @ 21.4g/t Au &
1,284g/t Ag
IMM24-375: 5.0m @ 13.9g/t Au &
1,036g/t Ag
IMS24-213A: 3.2m @ 4.0g/t Au &
53g/t Ag
IMS24-216: 1.3m @ 1.2g/t Au &
216g/t Ag
IMS24-217: 1.5m @ 0.6g/t Au &
85g/t Ag
|
|
Nicolas
|
IMS24-213A: 23.5m @ 4.8g/t Au &
164g/t Ag
Including 5.6m @ 16.0g/t Au
& 409g/t Ag
IMS24-216: 0.8m @ 1.4g/t Au &
199g/t Ag
|
|
Andrea
|
IMS24-375: 0.9m @ 2.3g/t Au &
102g/t Ag
IMS24-213A: 1.7m @ 2.6g/t Au &
120g/t Ag
|
|
Josefa
|
IMS24-213A: 0.8m @ 2.5g/t Au &
99g/t Ag
|
|
Rita
|
IMS24-375: 0.9m @ 4.1g/t Au &
27g/t Ag
|
|
Split Josefa
|
IMM23-212: 0.9m @ 5.0g/t Au &
5g/t Ag
|
|
Laura
|
IMS24-215: 1.6m @ 3.3g/t Au &
3g/t Ag
|
|
Juliana NE piso
|
IMS24-218: 2.6m @ 8.2g/t Au &
184g/t Ag
|
|
Split Juliana NE
|
IMS24-375: 1.8m @ 2.8g/t Au &
293g/t Ag
|
|
Juliana NE
|
IMS24-218: 0.8m @ 3.4g/t Au &
116g/t Ag
|
During the second quarter, the
Company expects to complete five remaining drill holes
(approximately 2,500m of drilling) before commencing 11,000m of
resource drilling in the Tesoro and Nicolas veins.
San Jose
|
Vein
|
Results (potential)
|
|
Dalia
|
SJD-2775: 2.8m @ 1.1g/t Au &
221g/t Ag
SJD-2776: 2.6m @ 2.0g/t Au &
513g/t Ag
SJD-2777: 3.5m @ 1.3g/t Au &
86g/t Ag
SJD-2778: 1.7m @ 0.5g/t Au &
19g/t Ag
SJD-2788: 1.5m @ 4.8g/t Au &
51g/t Ag
SJD-2789: 0.9m @ 1.4g/t Au &
125g/t Ag
SJD-2795: 0.9m @ 0.6g/t Au &
90g/t Ag
|
|
Majo
|
SJD-2771: 0.9m @ 1.0g/t Au &
173g/t Ag
SJD-2772: 2.7m @ 1.5g/t Au &
161g/t Ag
SJD-2774: 1.1m @ 0.3g/t Au &
14g/t Ag
|
|
Odin
|
SJD-2775: 1.0m @ 1.9g/t Au &
216g/t Ag
SJD-2776: 1.3m @ 0.4g/t Au &
12g/t Ag
SJD-2777: 2.3m @ 5.5g/t Au &
70g/t Ag
SJD-2778: 1.4m @ 0.3g/t Au &
54g/t Ag
SJD-2788: 2.7m @ 7.6g/t Au &
360g/t Ag
SJD-2789: 1.6m @ 3.2g/t Au &
287g/t Ag
SJD-2795: 1.7m @ 2.8g/t Au &
137g/t Ag
|
|
Sigmoide Odin Sur
|
SJD-2775: 1.5m @ 1.8g/t Au &
166g/t Ag
SJD-2776: 0.9m @ 0.1g/t Au &
13g/t Ag
SJD-2777: 0.9m @ 0.2g/t Au &
43g/t Ag
SJD-2778: 1.0m @ 1.4g/t Au &
70g/t Ag
SJD-2788: 6.2m @ 23.3g/t Au &
314g/t Ag
SJD-2789: 1.5m @ 3.5g/t Au &
281g/t Ag
SJD-2795: 4.7m @ 2.6g/t Au &
60g/t Ag
|
|
Saavedra
|
SJD-2773: 1.1m @ 0.2g/t Au &
1g/t Ag
|
The plan for Q2 is to carry out 800m
of drilling to define the potential in the Frei and Bajo Maura
veins.
Financial position
Total cash was approximately $73
million as at 31 March 2024 resulting in a net debt position of
approximately $282 million.
In February, the Group hedged 60,000
ounces of 2025 gold production at a strike put of $2,000 per ounce
and a strike call of $2,485 per ounce to increase cash flow
certainty for the repayment of the Company's medium-term
facilities.
_____________________________________________________________________________________
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 operates two underground epithermal vein mines:
Inmaculada, located in southern Peru; and San Jose in southern
Argentina, and an open pit gold mine, Mara Rosa, located in the
state of Goiás, Brazil. 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
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