Commercial Production at Inmaculada

RNS Number : 3449Y

Hochschild Mining PLC

08 September 2015

 

8 Sept 2015  

Hochschild Achieves Commercial Production at Inmaculada

Hochschild Mining plc ("Hochschild" or "the Company") is pleased to announce the declaration of commercial production at its Inmaculada mine, located in south west Peru. The first production of dore was announced on 5 June 2015 and approximately 25,000 oz of gold and 622,000 ounces of silver have been produced to date, a portion of which was produced during the ramp-up and commissioning phase. The mine is expected to produce between 7 and 8 million silver equivalent ounces in 2015 and between 12 and 13 million silver equivalent ounces in 2016 at a forecast all-in sustaining cost of approximately $10 per silver equivalent ounce¹

The Company will commence recognising revenue from the sale of gold and silver and mine operating costs in its profit and loss statement from 1 August 2015. The inspection of the processing plant has been successfully completed by the relevant government authority with the final mill operating permit expected later this month.

Ignacio Bustamante, Chief Executive Officer commented:

"We have successfully achieved commercial production at Inmaculada and I congratulate the operations team on completing a quick and efficient ramp-up. With the achievement of this milestone, Hochschild will strengthen its cashflow generation and enter into a new phase of margin improvement. We expect that, with high production levels at a very competitive all-in sustaining cost, Inmaculada will be the company´s key mining operation for many years to come. Furthermore, we remain excited by the strong geological potential at the deposit and in the surrounding district, which will provide a source of additional growth to this world class mine."   

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Enquiries:

Hochschild Mining plc

Charles Gordon                                                                                                           [phone]

Head of Investor Relations

Hudson Sandler

Charlie Jack                                                                                                              [phone]

Public Relations

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¹ Equivalent figures calculated using the current gold/silver ratio

 

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