TIDMHOC
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCFFFIILSLALII
(END) Dow Jones Newswires
November 20, 2020 02:00 ET (07:00 GMT)
Hochschild Mining (LSE:HOC)
Historical Stock Chart
From Apr 2024 to May 2024
Hochschild Mining (LSE:HOC)
Historical Stock Chart
From May 2023 to May 2024