Hochschild announces payment of interim dividend and 2021 guidance

Hochschild Mining

Hochschild Mining PLC (LON:HOC) (OTCMKTS: $HCHDF) has announced that, at its scheduled Board meeting on 19 November 2020, the Directors of the Company 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 mining’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, the company 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.”

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