Business
Q4 2015 Production Report
Q4 2015 Production Report.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n \nRNS Number : 3741M Hochschild Mining PLC 20 January 2016 \n\n \n \n20 January 2016 \n \n \nProduction Report for the 12 months ended 31 December 2015\n \n \nStrong 2015 operational delivery\n§ Full year production of 24.7 million attributable silver equivalent ounces exceeding 24.0 million target1\no 14.8 million ounces of silver\no 166.0 thousand ounces of gold\no 27.0 million silver equivalent ounces using 2015 average gold/silver ratio\n§ Inmaculada mine produced 7.1 million silver equivalent ounces exceeding 6-7 million ounce forecast1\no 84.6 thousand ounces of gold\no 2.1 million ounces of silver\no 8.3 million silver equivalent ounces using 2015 average gold/silver ratio\n§ 2015 all-in sustaining costs per silver equivalent ounce on track to meet $13-14 guidance\n \nImproved financial position \n§ $100 million equity rights issue completed\n§ $105 million of debt repaid in Q4\n§ Total cash of approximately $83 million as at 31 December 2015\n§ Net debt of approximately $366 million as at 31 December 2015\n§ Argentina macroeconomic & tax reforms expected to significantly improve San Jose cash flows\n§ Cashflow further strengthened by 2016 precious metal hedges:\no 71,000 ounces of gold at $1,154 per ounce\no 29,000 ounces of gold at $1,145 per ounce \no 6.0 million ounces of silver at $15.93 per ounce \n \n2016 guidance\n§ Attributable production target of 32.0 million silver equivalent ounces\n§ All-in sustaining costs expected to be $12-13 per silver equivalent ounce\no Inmaculada costs expected to be $9-10 per silver equivalent ounce\n§ Total sustaining and development capital expenditure expected to be approximately $100 million including $10 million to develop Pablo vein\n§ Pablo vein preliminary economics indicate:\no NAV of $25-50 million\no All in sustaining costs to average $10-11 per silver equivalent ounce \n\n \n \n_____________________\n1 Calculated using the previous Company gold/silver ratio of 60x. All other equivalent figures assume the average gold/silver ratio for 2015 of 74x.\n \n \nIgnacio Bustamante, Chief Executive Officer commented:\n\"The operational performance during 2015 exceeded expectations as we once again beat our annual production targ...