(Alliance News) - Hochschild Mining PLC on Friday said it is on track to meet its 2020 revised production guidance, with its all-in sustaining cost from operations now forecast to be lower.
The precious metals firm, which has projects throughout the Americas, said it is on course to achieve its revised production guidance from September of between 280,000 and 290,000 gold equivalent ounces, or 24.0 million to 25.0 million silver equivalent ounces.
In 2019, full year attributable production was 477,400 gold equivalent ounces and, along with its 2019 results, Hochschild announced a 2020 attributable gold production target of 422,000 gold equivalent ounces.
Hochschild now forecasts that its all-in sustaining cost from operations in 2020 will be between USD1,200 and USD1,250 per gold equivalent ounce or USD14.0 to USD14.50 per silver equivalent ounce.
This is an improvement from September, when all-in sustaining costs were forecast at between USD1,250 and USD1,290 per gold equivalent ounce. In 2019, all-in sustaining costs from operations came to USD965 per gold equivalent ounce.
Additionally, at Hochschild's Thursday board meeting, members approved payment of a 4.0 US cents per share interim dividend. This followed the firm's withdrawal of the recommendation to pay its 2019 final dividend and postponement of its 2020 interim dividend amid Covid-19 uncertainty.
"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 December 31, 2020 at its next scheduled meeting in February 2021," said Hochschild.
Furthermore, Hochschild provided an update regarding dissenting votes at its May annual general meeting on a resolution to re-elect Romero Paoletti as a non-executive director over concerns regarding his "availability and commitment to the company in light of the number of other directorships that he holds".
The firm's nomination committee met to consider concerns, and noted Romero's resignation from the board of New York-listed Credicorp Ltd in June as well as Romero's reassurances concerning "his ongoing availability and commitment to Hochschild Mining and that he will not accept any additional listed company directorships".
In light of this, and the fact that he acts as a nominee director of the company's major shareholder under a relationship agreement, Romero will remain as a director, Hochschild said. Romero represents Pelham Investment Corp, which is controlled by Eduardo Hochschild, who owns 50% of the company according to Morningstar.
Hochschild shares were up 0.4% at 221.80 pence in London on Friday morning.
By Anna Farley; annafarley@alliancenews.com
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Hochschild (HOC)