Production Report 12mth

16 Jan 2007 07:01

Hochschild Mining PLC16 January 2007 16 January 2007 Hochschild Mining plc today announces its Production Report for the twelvemonths to 31 December 2006 Highlights: • Total production for the six months to 31 December 2006 ("H2") was 6.1 million ounces of silver and 93 thousand ounces of gold • In-line with expectations at the time of the IPO, H2 production was slightly higher than in the six months ended 30 June 2006 ("H1") • Total silver production was up 12% in H2 versus H1 primarily due to increased production at Arcata and Selene • Total gold production was down 10% in H2 versus H1 due to the anticipated decrease in ore grade at Ares The planned expansions at the Ares processing plant were successfully completedon time taking the capacity from 280 ktpa to 325 ktpa. The plant will beundergoing testing during January 2007. The planned expansions at Arcata andSelene, taking the capacity from 350 ktpa to 420 ktpa and from 350 ktpa to 700ktpa, respectively, are on schedule for completion within budget during 2007.The expansion at the Selene plant accommodates for the extension of the Selenemine in addition to the commencement of production from Pallancata. On 10 December 2006, the Group announced it would exercise its option to acquirea 70% stake in the Santa Maria de Moris mine in Chihuahua, Mexico. The Group's three new projects which are scheduled to begin production during2007 are on track. San Jose will start producing during Q2 2007 while Pallancataand Mina Moris will commence production in Q3 2007. These three projects areexpected to contribute to profits in 2008. Total production H2 H1 Full Year Full Year 2006 2006 2006 2005-------------------------------------------------------------------------Silver production (Koz) 6,136 5,467 11,604 10,550Gold production (Koz) 93 103 196 232Total silver equivalent (Koz) 11,707 11,640 23,347 24,543 ARCATA Product H2 H1 Full Year Full Year 2006 2006 2006 2005-------------------------------------------------------------------------Ore production (tonnes) 178,162 135,526 313,688 282,199Concentrate produced (tonnes) 7,192 5,214 12,407 10,787Silver grade in concentrate (kg/t) 11.50 12.49 11.92 12.31Silver produced (Koz) 2,660 2,094 4,754 4,271Gold produced (Koz) 6.93 4.96 11.89 7.19 ARES Product H2 H1 Full Year Full Year 2006 2006 2006 2005------------------------------------------------------------------------Ore production (tonnes) 147,609 141,529 289,138 281,095Dore total (Koz) 1,357 1,493 2,850 3,151Silver produced (Koz) 1,281 1,406 2,688 2,944Gold produced (Koz) 72.16 83.35 155.5 198.55 SELENE Product H2 H1 Full Year Full Year 2006 2006 2006 2005-------------------------------------------------------------------------Ore production (tonnes) 181,642 178,044 359,686 288,919Concentrate produced (tonnes) 1,865 1,947 3,812 3,559Silver grade in concentrate (kg/t) 36.61 31.43 33.96 29.15Silver produced (Koz) 2,195 1,967 4,162 3,335Gold produced (Koz) 13.76 14.57 28.34 27.48 Hochschild Mining's Preliminary results will be announced on 20 March 2007. Enquiries:Hochschild Mining plcWray Barber +44 (0)20 7152 6014Head of Investor Relations FinsburyRobin Walker +44 (0)20 7251 3801Public Relations - ends - This information is provided by RNS The company news service from the London Stock Exchange