Hochschild MiningPLC - Q1 2020 Production Report
April 22, 2020 at 2:00 AM EDT
RNS Number : 4146K
Production Report for the 3 months ended
"The current global situation is extremely challenging for everyone and, at Hochschild, our priority remains the health and safety of our employees and stakeholders who have been vital in helping us manage this situation. Although our operations in
Our mines delivered a solid start to the year producing 94,000 gold equivalent ounces or 8.1 million silver equivalent ounces although output was of course impacted from the middle of March. In addition, our exploration programmes have been curtailed across the
§ Q1 2020 attributable production:
o 59,425 ounces of gold
o 3.0 million ounces of silver
o 94,123 gold equivalent ounces
o 8.1 million silver equivalent ounces
§ Inmaculada and Pallancata activities continue to be limited to critical environmental and safety priorities
§ 2020 guidance withdrawn
Strong financial position
§ Total cash of approximately
§ Net debt of approximately
§ Proposal to pay 2019 final dividend withdrawn
A conference call will be held at
Dial in details as follows:
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A recording of the conference call will be available on demand on the Company's website: www.hochschildmining.com
In Q1 2020, Hochschild delivered attributable production of 94,123 gold equivalent ounces or 8.1 million silver equivalent ounces. The period included a solid start to the year from Inmaculada but was impacted towards the end of the period by the management's decision to halt operations at all three mines following the state of emergency declarations in both
Due to the temporary suspension of Hochschild's mines in
TOTAL GROUP PRODUCTION
Total production includes 100% of all production, including production attributable to Hochschild's joint venture partner at
ATTRIBUTABLE GROUP PRODUCTION
Attributable production includes 100% of all production from Arcata, Inmaculada, Pallancata and 51% from San Jose.
Inmaculada's first quarter production was 46,450 ounces of gold and 1.4 million ounces of silver which amounts to a gold equivalent output of 62,621 ounces which was broadly in line with expectations. Although grades were marginally lower than expected, they are expected to rise in the second half of the year, assuming a resumption in production. There was also once again a contribution from products in process from the previous period. Operations were stopped on
In the first quarter, Pallancata produced 1.0 million ounces of silver and 3,615 ounces of gold bringing the silver equivalent total to 1.3 million ounces in Q1. Tonnage was in line with expectations, with grades lower than budgeted although they are forecast to recover during the next few quarters once the mine resumes production. Operations were stopped on
San Jose (the Company has a 51% interest in San Jose)
San Jose again delivered a steady start to the year despite the traditionally shorter operational period due to the scheduled hourly workers holiday in February. The run-rate on treated tonnage was slightly higher than the corresponding period of 2019 along with stronger gold grades resulting in production of 1.1 million ounces of silver and 18,353 ounces of gold which makes 2.7 million silver equivalent ounces. Operations were stopped on
Average realisable prices and sales
Average realisable precious metal prices in Q1 2020 (which are reported before the deduction of commercial discounts) were
In Q1 2020, 4,690m of potential drilling was carried out in the Bety, Lady, Pilar East, Shakira and South veins before the programme was halted in mid-March. Also, 1,204m of resource drilling was executed at the Angela and Ramal 4 veins.
Subject to the resumption of the Company's brownfield campaign in Peru, the second quarter plan consists of completing infill drilling in the Pilar, Susana Beatriz, Dora and Tensional Lourdes structures. Additional drilling will be carried out to incorporate new resources from the Juliana, Shakira and Lady Sur veins.
At Pallancata, 5,145m of potential drilling was executed before the programme was also halted. This included just over 3,000m of long hole drilling from underground towards the Anomalia NE, Royropata, Veta 1, Mercedes, Luisa and Erika veins and 1,880m of drilling tracing the continuity of the Pallancata Vein.
4,213m of infill drilling was carried out in the Huararani and Marco areas with results likely to lead to a redefinition of the geology of these structures.
Subject to the resumption of the Company's brownfield campaign in Peru, the Q2 programme includes 2,500m of underground long hole drilling aimed towards the Royropata, Mercedes and Luisa veins as well as 6,600m of potential drilling targeting the Pallancata, Erika, Soraida and Marco veins. The team is also aiming to complete the infill drilling campaigns in the Huararani, Luciano and Puka veins.
At San Jose, 2,889m of potential drilling was executed in the Micaela Oeste, Emily, Karina and Carlos structures.
During Q1, 8,675m of infill drilling has been carried out and a further 6,000m is currently scheduled for the second quarter.
Total cash was approximately
Charles Gordon +44 (0)20 3709 3264
Head of Investor Relations
Charlie Jack +44 (0)207 796 4133
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
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
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
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All equivalent figures assume the average gold/silver ratio for 2019 of 86x.
Group production figures for 2019 include 394,000 silver equivalent ounces from the Arcata operation which was placed on care and maintenance in
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