_________________________________________________________________________________
23 October 2024
Production Report for Q3 and
the 9 months ended 30 September 2024
Full year
guidance maintained after strongest quarterly production in almost
5 years
Eduardo Landin, Chief Executive Officer
said:
"Hochschild Mining's third quarter has been the strongest in
almost five years and we expect to meet our full year production
target. In Brazil, our new Mara Rosa mine has been steadily ramping
up to full production rates in the period and the Inmaculada
flagship mine in Peru has continued to deliver the benefits from
our continuous improvement programme. Furthermore, given the
current strength of our balance sheet, we were able to repay
approximately $45 million of debt. With the current metal price
momentum along with the forecast strong production in the last
quarter, we can look forward to further robust cashflow
generation."
Operational highlights
§ Strong
rise in production[1]
o 69,996 ounces of gold
o 2.2
million ounces of silver
o 96,327 gold equivalent ounces
o 8.0
million silver equivalent ounces
§ Robust
9-month operational performance
o 173,748 ounces of gold
o 6.3
million ounces of silver
o 249,120 gold equivalent ounces
o 20.7
million silver equivalent ounces
§ Reiterating 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
production in September at 9,000 ounces of gold with a strong Q4
expected
§ Exploration & technical work at Monte do Carmo project in
Brazil almost complete
§ 2024
Brownfield drilling programme adding significant resources at all
operating units
Strong financial position
§ $45
million of debt repaid in Q3
§ Total cash
of approximately $85 million as at 30 September 2024 ($89 million
as at 30 June 2024)
§ Net debt
of approximately $227 million as at 30 September 2024 ($271 million
as at 30 June 2024)
§ Current
Net Debt/LTM EBITDA reducing rapidly to approximately 0.6x as at 30
September 2024
ESG
highlights
§ Lost Time
Injury Frequency Rate of 1.03 (FY 2023:
0.99)[2]
§ Accident
Severity Index of 64 (FY 2023: 37)[3]
§ Water
Consumption of 137lt/person/day (FY 2023:
163lt/person/day)
§ Domestic
waste generation of 0.93 kg/person/day (FY 2023:
0.93kg/person/day)
§ ECO score
of 5.58 out of 6 (FY 2023: 5.76)[4]
________________________________________________________________________________________
A conference call will be held at
2.00pm (London time) on Wednesday 23 October 2024 for analysts and
investors.
Dial in details as
follows:
UK Toll-Free Number: 0808 109
0700
International Dial in: +44 (0)330
551 0200
US Toll-Free
Number: 866-580-3963
Canada Toll-Free Number:
866-378-3566
Pin: Hochschild Q3 Results
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 Q3 2024, Hochschild Mining PLC
(HOC.LN) (OTCMKTS: $HCHDF) ("Hochschild" or "the Company")
delivered attributable production of 96,327 gold equivalent ounces
or 8.0 million silver equivalent ounces, representing a 16%
increase versus the second quarter of 2024. This was supported by
another strong period from the Inmaculada mine and rising output
from the new Mara Rosa operation in Brazil. Overall year-to-date
attributable production is 249,120 gold equivalent ounces or 20.7
million silver equivalent ounces.
The Company reiterates that it is on
track to meet its overall attributable production target for 2024
of 343,000-360,000 gold equivalent ounces or 28.0-29.9 million
silver equivalent ounces. The impact from Mara Rosa's previously
disclosed ramp-up issues during Q2 will be offset by stronger
production at Inmaculada resulting from the mine's ongoing
continuous improvement projects.
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
|
|
Q3 2024
|
Q2
2024
|
Q3
2023
|
YTD 2024
|
YTD
2023
|
|
Silver production (koz)
|
2,658
|
2,589
|
3,205
|
7,674
|
8,598
|
|
Gold production (koz)
|
78.15
|
66.37
|
60.81
|
198.31
|
161.36
|
|
Total silver equivalent
(koz)
|
9,145
|
8,097
|
8,252
|
24,134
|
21,991
|
|
Total gold equivalent
(koz)
|
110.18
|
97.56
|
99.42
|
290.77
|
264.95
|
|
Silver sold (koz)
|
2,688
|
2,669
|
2,911
|
7,802
|
8,336
|
|
Gold sold (koz)
|
80.27
|
66.06
|
53.93
|
198.52
|
153.72
|
Total production includes 100% of all production, including
production attributable to Hochschild's joint venture partner at
San Jose.
ATTRIBUTABLE GROUP
PRODUCTION
|
|
Q3 2024
|
Q2
2024
|
Q3
2023
|
YTD 2024
|
YTD
2023
|
|
Silver production (koz)
|
2,185
|
2,093
|
2,624
|
6,256
|
7,067
|
|
Gold production (koz)
|
70.00
|
57.81
|
50.00
|
173.75
|
133.36
|
|
Silver equivalent (koz)
|
7,995
|
6,892
|
6,774
|
20,677
|
18,135
|
|
Gold equivalent (koz)
|
96.33
|
83.03
|
81.62
|
249.12
|
218.50
|
Attributable production includes 100% of all production from
Inmaculada, Pallancata and 51% from San Jose.
Production
Inmaculada
|
Product
|
Q3 2024
|
Q2
2024
|
Q3
2023
|
YTD 2024
|
YTD
2023
|
|
Ore production (tonnes
treated)
|
318,178
|
274,750
|
300,076
|
855,952
|
835,981
|
|
Average grade silver
(g/t)
|
181
|
198
|
166
|
187
|
174
|
|
Average grade gold (g/t)
|
3.95
|
4.29
|
3.97
|
4.14
|
3.89
|
|
Silver produced (koz)
|
1,693
|
1,578
|
1,442
|
4,780
|
4,015
|
|
Gold produced (koz)
|
37.76
|
35.62
|
36.19
|
110.08
|
98.04
|
|
Silver equivalent (koz)
|
4,827
|
4,534
|
4,446
|
13,916
|
12,153
|
|
Gold equivalent (koz)
|
58.16
|
54.63
|
53.57
|
167.66
|
146.42
|
|
Silver sold (koz)
|
1,726
|
1,645
|
1,340
|
4,758
|
3,901
|
|
Gold sold (koz)
|
38.74
|
37.18
|
33.32
|
109.93
|
94.71
|
Third quarter production at
Inmaculada was 37,762 ounces of gold and 1.7 million ounces of
silver which amounts to a gold equivalent output of 58,162 ounces
with better-than-expected tonnage and grades resulting from the
implementation of continuous improvement projects at site
contributing to a strong operational period. Year-to-date,
Inmaculada's output is 167,664 gold equivalent ounces (Q3 YTD 2023:
146,424 gold equivalent ounces), a 15% improvement on the first
nine months of 2023 when, in particular in the first half, the mine
was impacted by permit delays.
San Jose (the Company has a 51%
interest in San Jose)
|
Product
|
Q3
2024
|
Q2
2024
|
Q3
2023
|
YTD 2024
|
YTD
2023
|
|
Ore production (tonnes
treated)
|
152,352
|
143,333
|
152,729
|
421,205
|
424,791
|
|
Average grade silver
(g/t)
|
227
|
252
|
271
|
244
|
260
|
|
Average grade gold (g/t)
|
3.94
|
4.38
|
5.16
|
4.28
|
4.85
|
|
Silver produced (koz)
|
965
|
1,011
|
1,184
|
2,895
|
3,125
|
|
Gold produced (koz)
|
16.63
|
17.46
|
22.05
|
50.12
|
57.15
|
|
Silver equivalent (koz)
|
2,346
|
2,460
|
3,015
|
7,055
|
7,868
|
|
Gold equivalent (koz)
|
28.26
|
29.64
|
36.32
|
85.00
|
94.80
|
|
Silver sold (koz)
|
957
|
1,022
|
994
|
3,036
|
2,935
|
|
Gold sold (koz)
|
15.81
|
17.04
|
18.03
|
51.10
|
52.69
|
The San Jose mine delivered a solid
quarter with grades temporarily lower than expected. Production in
the period was 1.0 million ounces of silver and 16,633 ounces of
gold which represents 2.3 million silver equivalent ounces. This
therefore amounts to a nine-month total of 7.1 million silver
equivalent ounces (Q3 2023 YTD: 7.9 million ounces).
Mara Rosa
|
Product
|
Q3 2024
|
Q2
2024
|
Q3
2023
|
YTD 2024
|
YTD
2023
|
|
Ore production (tonnes
treated)
|
589,452
|
466,552
|
-
|
1,142,196
|
-
|
|
Average grade silver
(g/t)
|
-
|
-
|
-
|
-
|
-
|
|
Average grade gold (g/t)
|
1.34
|
1.32
|
-
|
1.31
|
-
|
|
Silver produced (koz)
|
-
|
-
|
-
|
-
|
-
|
|
Gold produced (koz)
|
23.75
|
13.29
|
-
|
38.11
|
-
|
|
Silver equivalent (koz)
|
1,971
|
1,103
|
-
|
3,163
|
-
|
|
Gold equivalent (koz)
|
23.75
|
13.29
|
-
|
38.11
|
-
|
|
Silver sold (koz)
|
-
|
-
|
-
|
-
|
-
|
|
Gold sold (koz)
|
25.73
|
11.84
|
-
|
37.57
|
-
|
The Mara Rosa mine reached
commercial production in mid-May and throughout the third quarter
steadily increased output. Approximately 6,700 ounces of gold was
produced in July, 8,000 ounces in August and September's output was
just over 9,000 ounces with the plant consistently operating at
full capacity. Overall production in the quarter was 23,752
ounces.
Average realisable prices and sales
Average realisable precious metal
prices in Q3 2024 (which are reported before the deduction of
commercial discounts) were $2,422/ounce for gold and $29.8/ounce
for silver (Q3 2023: $1,926/ounce for gold and $23.6/ounce for
silver). For the first nine months of 2024, average realisable
precious metal prices were $2,296/ounce for gold and $27.98/ounce
for silver (Q3 YTD 2023: $1,946/ounce for gold and $23.6/ounce for
silver).
Brownfield exploration
Inmaculada
During the third quarter of the
year, the team carried out a further 2,674m of drilling for
potential in the Kary, Mia and Huarmapata structures as well as
11,278m of resource drilling in the Tesoro, Nicolas, Tesoro Techo
and Lia veins.
|
Vein
|
Results (resources)
|
|
Tesoro
|
IMM24-385: 23.6m @ 21.4g/t Au &
589g/t Ag
IMM24-387A: 1.7m @ 4.2g/t Au &
193g/t Ag
IMM24-393B: 8.5m @ 2.4g/t Au &
23g/t Ag
IMS24-232: 1.5m @ 0.6g/t Au &
63g/t Ag
IMS24-233: 8.4m @ 6.9g/t Au &
485g/t Ag
IMS24-234: 1.7m @ 0.8g/t &
145g/t Ag
IMS24-238A: 9.8m @ 7.5g/t &
64g/t Ag
IMS24-239: 18.5m @ 10.2g/t &
399g/t Ag
IMS24-240: 4.8m @ 0.2g/t & 3g/t
Ag
IMS24-241: 1.7m @ 1.0g/t & 44g/t
Ag
IMS24-242A: 1.8m @ 0.2g/t & 6g/t
Ag
IMS24-246A: 1.6m @ 5.1g/t &
119g/t Ag
IMS24-248: 1.3m @ 0.9g/t &
186g/t Ag
IMS24-250: 1.1m @ 1.9g/t & 36g/t
Ag
IMS24-254: 1.0m @ 0.5g/t & 6g/t
Ag
IMS24-257: 34.3m @ 2.2g/t &
72g/t Ag
|
|
Tesoro Techo
|
IMM24-385: 2.6m @ 5.7g/t Au &
18g/t Ag
IMM24-387A: 1.4m @ 3.2g/t Au &
59g/t Ag
IMM24-387B: 3.4m @ 12.9g/t Au &
153g/t Ag
IMS24-233: 1.2m @ 1.1g/t Au &
27g/t Ag
IMS24-234: 1.0m @ 3.6g/t Au &
437g/t Ag
IMS24-250: 3.2m @ 1.9g/t Au &
106g/t Ag
IMS24-257: 2.2m @ 6.1g/t Au &
591g/t Ag
|
|
Nicolas
|
IMM24-385: 2.1m @ 24.0g/t Au &
16g/t Ag
IMM24-393B: 3.8m @ 1.8g/t Au &
69g/t Ag
IMS24-239: 1.2m @ 5.0g/t Au &
17g/t Ag
IMS24-241: 2.3m @ 2.5g/t Au &
98g/t Ag
IMS24-242A: 3.8m @ 9.9g/t Au &
47g/t Ag
|
|
Lia
|
IMS24-239: 2.3m @ 2.2g/t Au &
130g/t Ag
IMS24-242A: 2.5m @ 0.5g/t Au &
9g/t Ag
IMS24-244: 1.1m @ 0.2g/t Au &
11g/t Ag
|
During the fourth quarter, the
Company expects to carry out a further 3,500m of potential drill
holes in the Kary, Mia, Huarmapata, Laura and Eduardo veins as well
as 1,000m of resource drilling in the Tesoro structure.
San Jose
During Q3, the team carried out a
further 3,563m of drilling for potential in the Frea, Mara and
Maura veins as well as 5,943m of infill drilling in the Ayelen
extension, Antonela and Julia veins.
|
Vein
|
Results (potential)
|
|
Maura
|
SJD-2881: 0.8m @ 7.5g/t Au &
82g/t Ag
SJD-2879: 3.1m @ 6.9/t Au & 55/t
Ag
SJD-2892: 5.0m @ 2.4/t Au & 69/t
Ag
|
|
New vein
|
SJD-2858: 1.2m @ 1.3g/t Au &
219g/t Ag
SJM-682: 1.1m @ 3.3g/t Au &
115g/t Ag
SJM-684: 0.8m @ 2.1g/t Au &
11g/t Ag
|
During the fourth quarter, drilling
for potential will continue in the Frea and Odin veins.
Mara Rosa
In the third quarter at Mara Rosa,
3,011m of resource drilling was executed below the existing Posse
pit. Drilling will continue into Q4.
|
Vein
|
Results (potential)
|
|
Posse
|
24POSP_005: 53.0m @ 1.0g/t
Au
24POSP_008: 1.0m @ 0.3g/t
Au
24POSP_011: 32.9m @ 1.0g/t
Au
24POSP_012: 12.0m @ 1.1g/t
Au
24POSP_013: 17.9m @ 1.0g/t
Au
24POSP_014: 39.0m @ 1.0g/t
Au
24POSP_015: 28.1m @ 1.0g/t
Au
24POSP_017: 9.5m @ 0.9g/t
Au
|
Financial position
Total cash was approximately $85
million as at 30 September 2024 resulting in net debt of
approximately $227 million versus $271 million at the end of the
second quarter. The reduction was due to strong cashflow generation
in the period resulting in the repayment of $45 million of
debt.
_____________________________________________________________________________________
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.
This announcement contains information which prior to its
release could be considered inside information.
LEI: 549300JK10TVQ3CCJQ89
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