Pandemic-related suspensions hit hard Hochschild mines
(Kitco News) - Hochschild Mining today reported full-year 2020 attributable production of 289,293 gold equivalent ounces or 24.9 million silver equivalent ounces, at the high end of the company's revised forecasts published in early September but with the reduction versus 2019.
In 2020, the company's attributable silver production was 9,808 koz or 42% lower than in 2019 (16,808 koz), and gold production of 175 koz was 35% lower compared to 2019 (270 koz).
Hochschild's output in 2020 was impacted by Covid-related stoppages at all the company's mines with the first major disruption lasting from the middle of March until the end of May. The crisis also resulted in substantial delays in permitting for exploration and operations for this year and beyond.
Despite the significant impact of the Covid crisis, Hochschild ended the year with a net cash position of $21.6 million (31 December 2019: $33.2 million net debt), for the first time in eight years.
The company's adjusted EBITDA of $270.9 million (2019: $343.3 million) mostly reflects the reduced production levels as well as a rise in mine closure provisions of $16.1 million.
CEO Ignacio Bustamante commented, "We have delivered strong financial results in 2020, despite the impact of the Covid-19 related stoppages. Higher precious metals prices combined with strong free cashflow generation saw us finish the year in a net cash position for the first time in eight years."
Hochschild Mining is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild has over fifty years' experience in the mining of precious metal epithermal vein deposits and currently operates three underground epithermal vein mines, two located in southern Peru and one in southern Argentina. Hochschild also has numerous long-term projects throughout the Americas.