# Hochschild Mining PLC Strong full 2019

- Link: https://www.directorstalkinterviews.com/hochschild-mining-plc-strong-full-2019/412802811
- Published: 2020-01-15T07:20:06+00:00
- Author: Giles Arbor

**Hochschild Mining** (LON: HOC) has today provided a production report for the 
12 months ended 31 December 2019.

**Operational highlights**

 * Strong full year attributable production in 20191

o 269,892 ounces of gold

o 16.8 million ounces of silver

o 477,400 gold equivalent ounces

o 38.7 million silver equivalent ounces (versus target of 37.0 million silver equivalent
ounces)

 * Record production at Inmaculada: 260,126 gold equivalent ounces (2018: 244,445
   ounces)
 * Record production at San Jose up 10% to 15.4 million silver equivalent ounces(
   2018: 14.0 million ounces)
 * All-in sustaining costs on track to meet guidance of $960-$1,000 per gold equivalent
   ounce ($11.8-12.3 per silver equivalent ounce) in 20192

Exploration highlights

 * Further substantial high grade resources discovered at Inmaculada
 * Permits received for key Pablo Sur & Cochaloma exploration targets close to Pallancata
   with drilling campaigns set to commence in Q1 2020

**Strong financial position**

 * Total cash of approximately $166 million as at 31 December 2019 ($80 million 
   as at 31 December 2018)
 * Refinancing of existing $150 million of short term debt with $200 million 5 year
   loan at LIBOR +1.15%
 * Net debt of approximately $34 million as at 31 December 2019 ($77 million as 
   at 31 December 2018)
 * Current Net Debt/ LTM EBITDA of approximately 0.10x as at 31 December 2019

**2020 guidance**

 * Production target of 422,000 gold equivalent ounces (36.0 million silver equivalent
   ounces)
 * All-in sustaining costs expected to be $1,040-$1,080 per gold equivalent ounce(
   $12.1-12.5 per silver equivalent ounce)
 * Total sustaining and development capital expenditure expected to be approximately
   $115-130 million including $22 million expansion of tailings storage facility
   at Inmaculada
 * 2020 brownfield exploration budget expected to be $36 million with greenfield
   and advanced project budget set at an additional $8 million

> **Ignacio Bustamante, Hochschild Mining Chief Executive Officer said:**
> “I am pleased to report that we have delivered a stronger than forecast final 
> quarter. Consequently, the overall 2019 production figure of 38.7 million silver
> equivalent ounces is comfortably ahead of the 37.0 million ounce target and includes
> record contributions from our Inmaculada and San Jose mines. Furthermore, our 
> costs for 2019 are expected to be in line with guidance. We have also substantially
> improved our financial position with strong free cashflow generation and the refinancing
> of our short-term debt with a new low cost $200 million loan.
> At Inmaculada, we have continued to deliver exciting drill results that are further
> adding to the resource base. In addition, our 2020 brownfield drilling programme
> is set for an early start in Peru with the welcome news that we have secured permits
> to drill at the exciting Pablo Sur and Cochaloma targets close to Pallancata. 
> We will provide updates on progress at these and other campaigns as our exploration
> programme advances.”

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