Hochschild Mining PLC (LON:HOC) announced today that in light of the ongoing uncertainty caused by the COVID-19 outbreak and the resulting temporary suspension of the Company’s operations, the Board of directors has decided to withdraw its proposal to pay a final dividend in respect of the financial year ended 31 December 2019.
The Board believes this is a prudent course of action reflecting the Company’s focus on the conservation of cash resources. When the Board is in a clearer position to assess the overall financial impact of the COVID-19 outbreak on the business, a decision will be taken on the appropriate level of any future shareholder distribution. The cash and cash equivalent balance at 31 December 2019 was $166 million with net debt of $33 million.
Both the Inmaculada and Pallancata mines in Peru remain temporarily suspended following the Peruvian government’s recent decision to extend social restrictions until 26 April 2020. In Argentina, whilst permission has been granted by the government to restart the San Jose mine, in light of the current restrictions on the movement of people in the country, the Company expects the ramp-up to be phased over a number of weeks. Details on the Company’s performance during the first quarter will be provided in the scheduled production report on 22 April 2020.
Details regarding the arrangements for the forthcoming Hochschild Mining AGM will be provided in the Notice of AGM which will be posted to shareholders and published on the Company’s website on or around 17 April 2020.
