Hochschild Mining PLC Production Report and Interim Management Statement for the three months to 30 September 2010
Wednesday, October 20th, 2010
Hochschild Mining plc delivered a solid performance in Q3 2010 with production of 6.6 million attributable silver equivalent ounces, comprised of 4.5 million ounces of silver and 34.4 thousand ounces of gold. With production in the first nine months of the year of 19.4 million attributable silver equivalent ounces, Hochschild remains on track to achieve its 2010 target of 26.3 million attributable silver equivalent ounces from its current operations.
Unit cost per tonne for the full year is in line with the Company’s annual guidance of a 10% increase on 2009 which is primarily the result of inflation related to labour and supply costs. Hochschild takes an extremely rigorous approach to managing costs and is currently undertaking a number of cost efficiency and productivity initiatives which will contribute to continued cost containment.
· Q3 2010 production of 6.6 million attributable silver equivalent ounces
· Production of 19.4 million attributable silver equivalent ounces in the first nine months of 2010
· On track to achieve 2010 production target of 26.3 million attributable silver equivalent ounces
· Continued delivery of organic growth strategy:
– Positive scoping results at Inmaculada project: increased holding to a controlling 60% interest
– Positive scoping results at 100% owned Azuca project: progressed to pre-feasibility stage
– Estimated production at Azuca & Inmaculada represents 38% of Hochschild’s anticipated 2010 production
– New discovery at San Jose, resource life of mine significantly increased to approximately 12.5 years
– Reduction in Lake Shore Gold investment from 35% to 6% with gross proceeds of C$392 million
· Continued focus on profitability and cost control – costs remain in line with guidance
· Settlement of lawsuit with joint venture partner at San Jose operation