20 Jan 2010 07:00
ο»Ώ
Β
Performance Update and ProductionΒ ReportΒ for theΒ threeΒ months to 31Β DecemberΒ 2009 ("Q409")
HighlightsΒ
Record full year production,Β up 8%,Β achievingΒ target of 28 millionΒ attributableΒ silver equivalent ouncesΒ Β
Achieved target to reduce unit cost per tonne by at least 5% in 2009
ContinuedΒ focus onΒ exploration: 2010 budget up 67% to $50 millionΒ
Solid financial position withΒ total cash ofΒ approximatelyΒ $75Β millionΒ
Convertible bond offering andΒ equityΒ placingΒ raisedΒ approximately $260Β million, supportingΒ Hochschild'sΒ growth strategy:
2010Β production target of 29Β million silver equivalent ounces, includingΒ 2.7Β millionΒ silver equivalent ouncesΒ fromΒ Hochschild'sΒ interests inΒ Lake Shore Gold andΒ Gold Resource Corp.
Miguel AramburΓΊ, Chief Executive OfficerΒ commented;Β
"With production of 28.2 millionΒ attributableΒ silver equivalent ouncesΒ in 2009,Β Hochschild has once again delivered on itsΒ productionΒ targets and provenΒ theΒ operational strengthΒ of the business.Β FollowingΒ our capital raising in OctoberΒ 2009, we have already increased our strategic investments in Lake Shore Gold and Gold Resource CorporationΒ which will add to our production in 2010. We have alsoΒ prepaidΒ a portion of our debt facilityΒ which providesΒ increased financial flexibilityΒ and allowsΒ us toΒ deliverΒ our growth strategy."Β
2009Β Overview
ProductionΒ
Hochschild hasΒ successfullyΒ achieved its full year production target, producing 28.2 million attributable silver equivalent ounces inΒ 2009,Β which representsΒ an 8%Β year-on-year increase in production.Β This comprised 18.8 million ounces of silver and 156.8Β thousand ounces of gold, representing a record year of production for theΒ Company.Β
TheΒ year-on-yearΒ increase in production was primarily driven by strong production at Pallancata,Β San José and ArcataΒ following theΒ capacity expansionsΒ completed in the second half of 2008. Results were particularly strong atΒ Pallancata where both silver and gold production doubled year-on-year and atΒ San JosΓ©,Β where silver and gold production increased 14% and 42% respectively.Β ArcataΒ also reported positive results withΒ silver and gold production increasing 6% and 19% respectively.Β
Production in Q409Β of 6.8Β million silver equivalent ouncesΒ was impacted by temporary stoppages atΒ San José caused by a dispute between the mining and truck drivers'Β unionsΒ whichΒ has beenΒ resolved.Β Arcata's production was also negatively impacted in the fourth quarter due to lower silver grades as a result ofΒ higher dilution due toΒ narrower veins in the accessible mine areas andΒ changingΒ geotechnical conditions.Β As anticipatedΒ and previously disclosed,Β averageΒ extractedΒ grades and production at AresΒ are decliningΒ due to the ageing and geological nature of the deposit.Β
CostsΒ
Hochschild isΒ committed toΒ producing profitable ounces and diligently controlling costs. Good progress was made in this area in 2009 andΒ the CompanyΒ has achieved its targetΒ to reduce unit cost per tonneΒ for the full yearΒ by at least 5%Β with final numbers due to be released on 24 March 2010.Β
ISO AccreditationΒ
Following a rigorous audit process,Β Hochschild'sΒ laboratories in Peru have been awarded ISO 17025 accreditation by the Standards Council of Canada, in recognition of the high standards adopted by the Company and its ability to consistently produce valid results. ISO 17025 is an international standard that specifies the general requirements for the competence to carry out tests and/or calibrations, including sampling.
Average realisable prices and sales
Average realisable prices (which include commercial discounts) in Q409 were $1,132.67/oz for gold and $16.87/oz for silver (excluding forward sales contracts). Average realisable precious metals prices for the twelve months to 31 December 2009 were $970.33/oz for gold and $14.49/oz for silver.
In response to the extreme market volatility in the second half of 2008, Hochschild announced in Q109 that it hadΒ sold forward 10.7 million silver equivalent ouncesΒ of its 2009 production comprised of 8.9 million ounces of silver and 30,000 ounces of gold.Β A realised loss of $25Β million will be recorded under financeΒ costsΒ for the full yearΒ 2009Β in relation to this.Β
AsΒ disclosedΒ in May 2009,Β in order to ensure an ongoing level of cashΒ flow stability to continue to fund its growth strategy,Β HochschildΒ securedΒ a 'zero cost collar' forΒ 5.2Β million ounces of itsΒ 2010 silver production with an average 'floor' at $12.7/oz and an average 'cap' at $19.7/oz.Β An unrealised loss of $2.5Β millionΒ will be recorded under financeΒ costsΒ inΒ 2009 inΒ relation to the 2010 collar.Β HochschildΒ will continue to monitor market trends and will consider further collars as appropriate.
ExplorationΒ
BrownfieldΒ
Exploration is a vital part of Hochschild's strategy and the Company continues to commit significant investment to expanding its resource base with the aim of increasing future profitable production.Β
The Company is focused on brownfield exploration in order to expand the mine life of its main operations;Β Arcata, Pallancata andΒ San JosΓ©,Β where it remainsΒ committed to achieving its long term objective of a minimum 8 year total resource life,Β includingΒ a 4 year reserve life.Β
The drillingΒ programme at Arcata, the Company's flagship silver mine in southernΒ Peru, is delivering positive results with the discovery of three new mineralised structures in close proximity to the property's existing Mariana vein. At Pallancata inΒ Peru, the Company is mainly focused on theΒ newly discoveredΒ eastern extension of theΒ mainΒ Pallacata vein andΒ on theΒ Virgen del CarmenΒ vein.Β
In addition, the Company is moving towards an initial economic assessment at Azuca, a 100% owned brownfield project within Hochschild'sΒ existingΒ operational cluster in southernΒ Peru. As at 31 December 2008, Azuca had an initial resource of 1.8 million tonnes with 327 g/t silver and 1.34 g/t gold. The CompanyΒ is workingΒ towards increasing reserves and resources at Azuca and expects to publish updated results on 24 March 2010.Β
GreenfieldΒ
The Company has an active pipeline with numerous projects throughoutΒ Argentina,Β Canada,Β Chile,Β MexicoΒ andΒ PeruΒ at various stages of development. All projects are subject to a rigorous evaluation process to ensure that investment is targeted towards quality assets that will ultimately be brought to production.
At Crespo in Peru,Β drilling along the eastern extension resulted inΒ the best historical intercept ofΒ the project: 76Β metresΒ atΒ 1.0 g/t Au, 95 g/tΒ Ag (2.6 g/t gold equivalent), includingΒ 7.4Β metresΒ atΒ 11.9 g/t Au, 1,050 g/tΒ Ag. Metallurgical testing of high-grade material isΒ currentlyΒ in progress.Β
In addition,Β Hochschild reported positive drilling results at the Vaquillas projectΒ in Chile,Β which is part of the Victoria Joint Venture withΒ Iron Creek Capital Corp. HochschildΒ hasΒ completed 14Β drill holes over a total of 3,869 metresΒ which,Β together withΒ previousΒ drilling results,Β suggest that the VaquillasΒ project has potential for high-grade goldΒ andΒ silver veins, as well as bulk-tonnageΒ low-grade goldΒ andΒ silver mineralisation.Β OnΒ 23Β DecemberΒ 2009,Β the agreementΒ wasΒ amendedΒ and theΒ VictoriaΒ joint ventureΒ wasΒ expanded to include Iron Creek's remaining properties in their adjoining porphyry copper project.Β
In November 2009, Hochschild signed a joint venture agreement with Mariana Resources Ltd, ("Mariana") an AIM quoted exploration and development company focused in Argentina and Chile, to explore and develop three adjoining prospective gold-silver tenements totaling 13,455 hectares, located in the Santa Cruz area in the western sector of the Deseado Massif in southern Argentina. These tenements consist of Mariana's Amigos I and Amigos II license areas and Hochschild's San Augustin property which are located approximately 110km south of Hochschild's San José operation.
Hochschild will publish reserves and resources tables as atΒ 31Β December 2009 on 24Β March 2010.Β
Capital raising & acquisitionsΒ
Hochschild undertook a successful capital raising in October 2009 to provide increased financial flexibility to pursue its growth strategy and to refinance existing debt. The transaction raised a total of $260 million via the placing of 30.735 million new ordinary shares, generating gross proceeds of approximately $145 million, and the placing of $115 millionΒ inΒ senior unsecured convertible bonds with a coupon of 5.75%.Β
On 27 August 2009, Hochschild's strategic partner, Lake Shore GoldΒ Corp. ("Lake Shore Gold"), announced a definitive business combination agreement to acquire all of the outstanding common shares of West Timmins Mining Inc. ("WTM"). The transaction created the new large-scale, wholly-owned Timmins West Gold Mine Complex, an extension of the world classΒ TimminsΒ gold mining trend which has supplied approximately 70 million ounces of gold over the last century. As a result of the business combination, Hochschild's 40% stake in Lake Shore Gold wouldΒ haveΒ beenΒ diluted to approximately 27%Β (on an outstanding basis).Β
In line with its stated strategy, HochschildΒ hasΒ increased its ownership of Lake Shore GoldΒ by investing a furtherΒ C$159.5 millionΒ (C$139.5Β millionΒ inΒ Q409)Β increasing its stakeΒ to 38% on an outstandingΒ basisΒ (36% on a fully diluted basis). The investments include theΒ purchase of WTMΒ shares (now fully owned byΒ LakeΒ ShoreΒ Gold), aΒ C$85 million private placement and theΒ subsequent purchase of Lake Shore GoldΒ shares totaling C$5.5 million. Since its initial acquisition in February 2008, Hochschild has invested a total of C$348.3Β million inΒ Lake Shore GoldΒ at an average price of C$2.7Β per share. Hochschild's investment to dateΒ reflectsΒ its confidence in the significant production potential and long-term growthΒ of the company, which has a current market capitalisation ofΒ approximately C$1.3Β billion.Β
The Company hasΒ alsoΒ invested a further $16Β million in Gold Resource CorporationΒ ("GRC"),Β anΒ underground precious metals mining company with a number of prime development projects in southern Mexico,Β increasing its stake from 24% to 27%Β (on anΒ outstanding basis). This additional investment increases Hochschild's exposureΒ to GRC's highΒ grade,Β low costΒ ouncesΒ and expands the Group's southernΒ MexicoΒ operational cluster.Β Since December 2008, Hochschild has invested a total of $54 million in GRC, a company withΒ a current marketΒ capitalisation of approximately $496Β million.
Hochschild'sΒ 2010 production target of 29 million silver equivalent ounces includesΒ 2.7 million silver equivalent ounces fromΒ itsΒ interests in Lake Shore Gold andΒ GRC.Β
HochschildΒ maintainsΒ itsΒ disciplined approach to acquisitions and continues to evaluate high margin precious metals projectsΒ in existingΒ operational clusters and in new mineral rich regionsΒ of theΒ AmericasΒ in order to secure future growth.
Hochschild'sΒ capital raising has also enabledΒ itΒ to pre-pay $85 million of its $200 million syndicated loan facility, providing increased financial flexibility in 2010.Β As at 31 December 2009, the Company's net debtΒ position, which includes the $145 million convertible bond,Β was approximately $240Β million.Β
2010Β OverviewΒ
ProductionΒ
Hochschild's production target for 2010Β isΒ 29 million silver equivalent ounces. Production from existing operations is expected to be 26.3Β millionΒ attributable silver equivalent ouncesΒ comprising approximatelyΒ 17.6Β million ounces of silver andΒ 145,000Β ounces of gold.Β The targetΒ alsoΒ includes 2.7Β million silver equivalent ounces fromΒ Hochschild'sΒ 38% interest inΒ LakeΒ Shore Gold andΒ itsΒ 27% interest inΒ GRC.Β Both investments will be equity accountedΒ in 2010 and will appear under the associates line in the Group's income statement.Β
In 2010, theΒ Company expects higher productionΒ atΒ San José and Pallancata,Β offset by lower production atΒ Arcata and Ares.Β AtΒ Arcata,Β silver grades are expectedΒ to beΒ at similar levels toΒ Q409Β asΒ accessible mine areasΒ will continue toΒ have narrower veins andΒ changingΒ geotechnical conditions. As anticipated, production and grades atΒ the Company'sΒ ageing mine Ares will continue to decline, with closureΒ expectedΒ inΒ the second half ofΒ 2010.Β
Lake Shore Gold is progressing towards commercial gold production at its Timmins Mine, expected during the fourth quarter of 2010, andΒ isΒ advancing towards its objective of becoming a mid-tier gold producer.Β Lake Shore GoldΒ has announcedΒ an updatedΒ production target ofΒ 100,000 ounces of goldΒ (6 million silver equivalent ounces)Β in 2010, building production over the following three years toΒ 350,000 ouncesΒ (21 million silver equivalent ounces)Β annually over the next several years.Β
GRCΒ isΒ progressing towards production with the commissioning of the El Aguila mill underway. GRC has aΒ statedΒ production target ofΒ 70,000 ouncesΒ of gold (4.2Β millionΒ silver equivalent ounces) in 2010.Β
Costs
As previously stated, the Company is on track to reduce unit cost per tonne in 2009 by at least 5%, in line with guidance. HochschildΒ takes aΒ rigorous approach to managingΒ costs that are within its control andΒ is undertakingΒ a number of initiatives which will contribute to cost containmentΒ in 2010.Β However, management expectsΒ anΒ increase inΒ unit cost per tonne atΒ its underground minesΒ of around 10%Β in 2010,Β mostlyΒ as a result ofΒ inflationΒ related toΒ labourΒ and supply costs.Β At Ares, given the ageing nature of theΒ deposit, operating costsΒ are expected toΒ increaseΒ through to its expected closureΒ inΒ the second half ofΒ 2010.Β
Commercial discountsΒ
TheΒ CompanyΒ expects improved commercial conditionsΒ in the concentrate marketΒ in 2010,Β particularly at ArcataΒ whereΒ commercial discounts per tonneΒ areΒ expected to decrease byΒ approximatelyΒ 30%.Β Given theΒ improvementΒ in market conditions,Β managementΒ hasΒ decided to put on hold theΒ project toΒ convertΒ Arcata's production to dorΓ©.Β
The project, which wasΒ originallyΒ announced in June 2009, was due to cost in the region of $25-30Β million with a two year pay off.Β The Company will continue toΒ monitor the concentrate market andΒ the viability of this projectΒ to maximise profitability in the long term.Β
2010 outlookΒ
Hochschild remainsΒ confidentΒ about the prospects for gold and silverΒ pricesΒ which have performed strongly in 2009,Β ending the yearΒ with increases of 25% and 57% respectively.Β
Hochschild is in sound financial health, withΒ total cash ofΒ approximatelyΒ $75Β millionΒ on the balance sheet as at 31 December 2009.Β This, in conjunction withΒ cash generated from the business will enable the Company to continue delivering itsΒ growth strategyΒ ofΒ maximising profitΒ atΒ existing operations,Β adding to production throughΒ selectiveΒ acquisitionsΒ andΒ delivering growth by developingΒ its exploration programme. The CompanyΒ is pleased to announce that it isΒ significantly increasingΒ its exploration budget from $30 million in 2009 to $50Β million in 2010. The exploration programme will focus onΒ extending the life ofΒ Hochschild'sΒ existing operations andΒ identifyingΒ high-quality, early stageΒ precious metal projectsΒ which will provide cost effective growth.Β The Company expects 2010 capital expenditure to remain at similar levels to 2009Β guidance.Β
__________________________________________________________________
A conference call will be held atΒ 1pm (LondonΒ time) onΒ Wednesday 20Β January 2010Β for analysts and investors.
Dial in details as follows:
UK +44 (0)Β 203 003 2666
A recording of the conference call will be availableΒ for one weekΒ following its conclusion, accessible from the following telephone number:
UK + 44 (0)Β 208 196 1998
Access codeΒ 8906758#
__________________________________________________________________
Β Β Enquiries:
Hochschild Mining plc
Isabel LΓΌtgendorf +44 (0)20 7907 2934
Head of Investor Relations
Finsbury
Robin Walker +44 (0)20 7251 3801
Public Relations
__________________________________________________________________
About Hochschild Mining plc:
Hochschild Mining plc is a leading precious metals company listed on the London Stock Exchange (HOCM.L /Β HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over forty years'Β experience in the mining of precious metal epithermal vein deposits and currently operates fourΒ underground epithermal vein mines, three located in southern Peru, one in southern ArgentinaΒ andΒ one open pit mine in northern Mexico. Hochschild also has numerous long-term prospects throughout theΒ Americas.Β
Β
Β
1Β On an outstanding basis. On a fully diluted basis, Hochschild's equity interest is 36%
2Β On an outstanding basis. On a fully diluted basis, Hochschild's equity interest is 25%
Β
Β
TOTALΒ GROUPΒ PRODUCTION1
|
Q4 2009 |
Q3 2009 |
Q4 2008 |
12Β mths 2009Β |
12 mths 2008 |
|
|
Silver production (koz)Β 2 |
6,125 |
6,668 |
6,898 |
24,585 |
20,782 |
|
Gold production (koz)Β 3 |
51.11 |
56.80 |
55.97 |
211.64 |
193.97 |
|
Total silver equivalent (koz) |
9,191 |
10,075 |
10,256 |
37,283 |
32,421 |
|
Total gold equivalent (koz) |
153.19 |
167.92 |
170.93 |
621.38 |
540.34 |
|
Silver sold (koz) |
5,936Β |
6,722 |
7,089Β |
23,563 |
20,593 |
|
Gold sold (koz) |
47.78Β |
57.69Β |
58.57Β |
204.09 |
198.32 |
1Β Total production includes 100% of all production, including production attributable to joint venture partners atΒ San José and Pallancata.Β
2 Q4 silver produced includes an adjustment of 0.37 koz at San José from the first 9 months of 2009
3 Q4 gold produced includes an adjustment of 0.0037 koz at San José from the first 9 months of 2009
ATTRIBUTABLE GROUPΒ PRODUCTION1
|
Q4 2009 |
Q3 2009 |
Q4 2008 |
12Β mths 2009Β |
12 mths 2008 |
|
|
Silver production (koz)Β 2 |
4,526 |
4,978 |
5,457 |
18,754 |
16,941 |
|
Gold production (koz)Β 3 |
37.23 |
41.94 |
42.44 |
156.77 |
152.86 |
|
Attrib.Β silver equivalent (koz) |
6,760 |
7,494 |
8,003 |
28,160 |
26,113 |
|
Attrib. gold equivalent (koz) |
112.67 |
124.90 |
133.38 |
469.34 |
435.22 |
1Β Attributable production includes 100% of allΒ production from Arcata, Ares and Moris,Β 60% from PallancataΒ andΒ 51% fromΒ San JosΓ©.
2 Q4 silver produced includes an adjustment of 0.19 koz at San José from the first 9 months of 2009
3 Q4 gold produced includes an adjustment of 0.0019 koz at San José from the first 9 months of 2009
QUARTERLY PRODUCTION BY MINEΒ
ARCATA
|
Product |
Q4 2009 |
Q3 2009 |
Q4 2008 |
12Β mths 2009Β |
12 mths 2008 |
|
Ore production (tonnes) |
162,835 |
168,718 |
170,416 |
643,059 |
557,870 |
|
Average head grade silver (g/t) |
442 |
494 |
629 |
503 |
571 |
|
Average head grade gold (g/t) |
1.33 |
1.68 |
1.79 |
1.56 |
1.53 |
|
Concentrate produced (tonnes) |
5,509 |
5,456 |
6,760 |
22,352 |
20,639 |
|
Silver grade in concentrate (kg/t) |
11.95 |
14.21 |
14.56 |
13.36 |
13.94 |
|
Gold grade in concentrate (kg/t) |
0.04 |
0.05 |
0.04 |
0.04 |
0.04 |
|
Silver produced (koz) |
2,097 |
2,475 |
3,164 |
9,542 |
9,032 |
|
Gold produced (koz)Β |
6.25 |
8.31 |
8.76 |
28.64 |
24.04 |
|
Silver sold (koz) |
2,062Β |
2,512Β |
3,332Β |
8,748Β |
8,564Β |
|
Gold sold (koz) |
6.00Β |
8.04Β |
9.77Β |
26.02Β |
22.36Β |
Β Β
ARES
|
Product |
Q4 2009 |
Q3 2009 |
Q4 2008 |
12Β mths 2009Β |
12 mths 2008 |
|
Ore production (tonnes) |
90,376 |
88,933 |
92,397 |
341,273 |
347,910 |
|
Average head grade silver (g/t) |
96 |
107 |
111 |
96 |
157 |
|
Average head grade gold (g/t) |
3.06 |
3.91 |
5.33 |
4.17 |
6.06 |
|
Doré total (koz) |
248 |
274 |
303 |
947 |
1,608 |
|
Silver produced (koz) |
239 |
262 |
286 |
900 |
1,538 |
|
Gold produced (koz)Β |
8.13Β |
10.30Β |
14.95Β |
42.59 |
64.16 |
|
Silver sold (koz) |
232 |
246 |
387 |
873 |
2,398 |
|
Gold sold (koz)Β |
7.77 |
10.41 |
16.65 |
41.82 |
77.44 |
PALLANCATA1
|
Product |
Q4 2009 |
Q3 2009 |
Q4 2008 |
12Β mths 2009Β |
12 mths 2008 |
|
Ore production (tonnes) |
277,552 |
269,128 |
245,468 |
922,521 |
468,125 |
|
Average head grade silver (g/t) |
354 |
335 |
288 |
327 |
312 |
|
Average head grade gold (g/t) |
1.49 |
1.49 |
1.36 |
1.43 |
1.49 |
|
Concentrate produced (tonnes) |
2,520 |
2,160 |
1,968 |
7,684 |
4,265 |
|
Silver grade in concentrate (kg/t) |
33.71 |
36.10 |
30.97 |
34.09 |
30.54 |
|
Gold grade in concentrate (kg/t) |
0.13 |
0.14 |
0.12 |
0.13 |
0.12 |
|
Silver produced (koz) |
2,731 |
2,507 |
1,959 |
8,420 |
4,188 |
|
Gold produced (koz)Β |
10.24 |
9.62 |
7.65 |
31.97 |
16.16 |
|
Silver sold (koz) |
2,605 |
2,351 |
1,841 |
8,147 |
3,852 |
|
Gold sold (koz) |
9.56 |
8.78 |
7.22 |
29.77 |
14.81 |
1Β The Company has a 60% interest in Pallancata.
SELENE1Β
|
Product |
Q4 2009 |
Q3 2009 |
Q4 2008 |
12Β mths 2009Β |
12 mths 2008 |
|
Ore production (tonnes) |
- |
- |
24,623 |
109,893 |
269,150 |
|
Average head grade silver (g/t) |
- |
- |
188 |
217 |
210 |
|
Average head grade gold (g/t) |
- |
- |
1.06 |
1.09 |
1.21 |
|
Concentrate produced (tonnes) |
- |
- |
293 |
1,057 |
3,201 |
|
Silver grade in concentrate (kg/t) |
- |
- |
15.17 |
18.55 |
15.04 |
|
Gold grade in concentrate (kg/t) |
- |
- |
0.08 |
0.09 |
0.08 |
|
Silver produced (koz) |
- |
- |
140 |
628 |
1,579 |
|
Gold produced (koz)Β |
- |
- |
0.71 |
3.02 |
8.50 |
|
Silver sold (koz) |
26 |
60 |
334 |
636 |
1,929 |
|
Gold sold (koz) |
0.13 |
0.28 |
1.59 |
2.96 |
9.93 |
1Selene was closed on 28 May 2009Β
SAN JOSΓ1
|
Product |
Q4 2009 |
Q3 2009 |
Q4 2008 |
12Β mths 2009Β |
12 mths 2008 |
|
Ore production (tonnes)2 |
100,460 |
122,342 |
107,875 |
460,971 |
295,963 |
|
Average head grade silver (g/t) |
351 |
406.63 |
463 |
398 |
559 |
|
Average head grade gold (g/t) |
7.34 |
6.65 |
5.91 |
6.19 |
6.69 |
|
Silver produced (koz)Β 3 |
1,032 |
1,402 |
1,329 |
4,998 |
4,381 |
|
Gold produced (koz)Β 4 |
19.96 |
22.47 |
17.37 |
77.08 |
54.26 |
|
Silver sold (koz)Β |
989 |
Β 1,536 |
1,135 |
5,072 |
4,588 |
|
Gold sold (koz)Β |
Β 19.23 |
Β 24.68 |
13.91 |
77.22 |
57.70 |
1The Company has a 51% interest in San JosΓ©.
2 Q4 ore production includes an adjustment of 2,677 tonnes at San José from the first 9 months of 2009
3Β Q4 silver produced includesΒ an adjustment ofΒ 0.37 kozΒ atΒ San José from the first 9 monthsΒ of 2009Β
4Β Q4 gold produced includesΒ an adjustment ofΒ 0.0037Β kozΒ atΒ San José from the first 9 monthsΒ of 2009Β
MORIS
|
Product |
Q4 2009 |
Q3 2009 |
Q4 2008 |
12Β mths 2009Β |
12 mths 2008 |
|
Ore production (tonnes) |
333,240 |
316,725 |
296,077 |
1,282,461 |
876,148 |
|
Average head grade silver (g/t) |
5.01 |
5.04 |
6.05 |
5.02 |
5.71 |
|
Average head grade gold (g/t) |
1.34 |
1.44 |
1.52 |
1.38 |
1.57 |
|
Silver produced (koz) |
25 |
22 |
19Β |
97 |
65 |
|
Gold produced (koz)Β |
6.52 |
6.09 |
6.53Β |
28.34 |
26.85 |
|
Silver sold (koz)Β |
21 |
16 |
23 |
87 |
68 |
|
Gold sold (koz)Β |
5.09 |
5.51 |
8.26 |
26.29 |
28.01 |
Forward looking statements
This announcement contains certain forward looking statements, including such statements within the meaning of Section 27A of theΒ USΒ Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In particular, such forward looking statements may relate to matters such as the business, strategy, investments, production, major projects and their contribution to expected production and other plans of Hochschild Mining plc and its current goals, assumptions and expectations relating to its future financial condition, performance and results.Β
Forward-looking statements include, without limitation, statements typically containing words such as "intends", "expects", "anticipates", "targets", "plans", "estimates" and words of similar import. 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 be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Factors that could cause or contribute to differences between the actual results, performance or achievements of Hochschild Mining plc and current expectations include, but are not limited to, legislative, fiscal and regulatory developments, competitive conditions, technological developments, exchange rate fluctuations and general economic conditions. These factors, risks and uncertainties are referred to in the Risk Management section of the 2008 Annual Report. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.
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.
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