18th May 2020 09:18
(Alliance News) - Gold miner Hochschild Mining PLC on Monday said that it has met all the requirements of the Peruvian government to restart operations at the Inmaculada and Pallancata mines.
Shares in Hochschild Mining were up 12% at 180.70 pence each in London.
"Following the fulfilment of strict government health protocols, the company plans to begin ramping-up progressively to achieve full production in the coming weeks," the company said.
Chief Executive Officer Ignacio Bustamante said: "I am pleased that we are now in a position to restart our Peruvian operations and we intend to execute a disciplined remobilisation of our workforce in line with the prescribed health protocols and guidelines from the government. In these unprecedented times, we continue to prioritise the health and well-being of our employees and of the communities in which we operate".
Hochschild expects to reissue its 2020 guidance once full production is achieved and the overall impact of mine suspensions is clear. In line with current government guidelines, the company's brownfield exploration programme is expected to recommence in July.
In February, the company had said that it was targeting 422,000 gold equivalent production for 2020. However, this guidance was subsequently suspended in April due to the suspension of the company's mines in Peru and Argentina.
The San Jose mine in southern Argentina recently restarted operations and is following a phased ramp-up process.
For the three months to the end of March, Hochschild's gold production was 59,425 ounces of gold, down 12% from 67,420 ounces the same period the year before, and 7.2% from 64,020 ounces the previous quarter.
By Tapan Panchal; [email protected]
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