Last checked at 13 Feb 2019 07:00
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13 February 2019
Hochschild Mining plc to place Arcata mine on Care and Maintenance
Hochschild Mining plc today announces its intention to suspend operations at the Arcata precious metal mine, in south west Peru, and place it on care and maintenance. It is anticipated that full care and maintenance will be in effect by the second quarter of 2019.
An exploration programme and permitting work are expected to continue along with a regular review of the market conditions for potential restart of operations in the future. In addition, the Arcata unit has already been fully impaired for accounting purposes.
Ignacio Bustamante, Chief Executive Officer said:
"This decision has been expected but is still disappointing for the organisation. Arcata was the Company's first mining operation and started producing in 1964. It has been an excellent operation with an outstanding workforce and supportive communities but the continuing low silver price over some years and current geological conditions leaves us no option.
We have recently been making the necessary preparations and will work closely with our employees and key contractors to mitigate the impact and manage carefully the staged shutdown of operations whilst maintaining our community programmes. We extend our sincere thanks to our entire workforce, the local communities and all our partners in the mining sector who have assisted Arcata over its decades of operation."
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Enquiries:
Hochschild Mining plc
Charles Gordon +44 (0)20 3709 3264
Head of Investor Relations
Hudson Sandler
Charlie Jack +44 (0)207 796 4133
Public Relations
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About Hochschild Mining plc
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over fifty years' experience in the mining of precious metal epithermal vein deposits and currently operates four underground epithermal vein mines, three located in southern Peru and one in southern Argentina. Hochschild also has numerous long-term projects throughout the Americas.
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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 Hochschild Mining plc may, for various reasons, be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.
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 Board of Hochschild Mining plc does not undertake any obligation to update or change any forward looking statements to reflect events occurring after the date of this announcement. Nothing in this announcement should be construed as a profit forecast.
This announcement contains information which prior to its release could be considered inside information.
Note
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 Regulatory Information Service, this inside information is now considered to be in the public domain.
LEI: 549300JK10TVQ3CCJQ89
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