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Hochschild reports 'strong' gold and silver production increase in 2021

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(Kitco News) - Hochschild Mining announced today that in 2021, its attributable production was 362,972 gold equivalent ounces or 31.2 million silver equivalent ounces, in line with the company's guidance and a strong increase of 25% versus the Covid-impacted 2020.

The company also said it expects that its all-in sustaining cost for 2021 will be in line with guidance of $1,210-$1,250 per gold equivalent ounce ($14.1-14.5 per silver equivalent ounce).

Hochschild added that in 2021, Inmaculada has delivered gold equivalent production of 238,238 ounces (2020: 176,086 ounces), with the increase versus 2020 due to the impact of two Covid-19 related stoppages during 2020. Grades and gold recoveries have proved to be higher than originally budgeted.

Pallancata produced 4.4 million silver equivalent ounces (2020: 4.8 million ounces) with the reduction versus the original forecast (5.4 -5.6 million ounces) due to the effects of lower-than-budgeted grades in line with the current declining production profile.

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San Jose produced total of 12.4 million silver equivalent ounces (2020: 9.7 million ounces) with the increase versus 2020 reflecting Covid-related stoppages, which impacted the 2020 result. Grades were lower than budgeted for the year but practically offset by better than expected tonnage.

The company added that overall attributable production target for 2022 is 360,000-375,000 gold equivalent ounces or 26.0-27.0 million silver equivalent ounces. The all-in sustaining cost from operations in 2022 is expected to be between $1,330 and $1,370 per gold equivalent ounce (or $18.5 and $19.0 per silver equivalent ounce).

CEO Ignacio Bustamante said, "Our operations have delivered another strong quarter of production and we have once again successfully finished the year in line with guidance.”

Hochschild Mining is a precious metals company, 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.

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