14th Apr 2020 11:18
(Alliance News) - Hochschild Mining PLC on Tuesday said it has withdrawn its 2019 final dividend proposal due to uncertainty caused by the Covid-19 outbreak and the resultant suspension of the company's operations.
In February, the FTSE 250-listed company declared a final dividend of 2.335 US cents, up 19% from 1.959 US cents paid the year prior.
"The board believes this is a prudent course of action reflecting the company's focus on the conservation of cash resources. When the board is in a clearer position to assess the overall financial impact of the Covid-19 outbreak on the business, a decision will be taken on the appropriate level of any future shareholder distribution," the miner said.
Hochschild said its Inmaculada and Pallancata mines in Peru remain suspended following the Peruvian government's decision to extend social restrictions until April 26. It added that while the Argentinian government has granted permission to restart the San Jose mine, production ramp up is expected to be done in phases over "a number of weeks".
As at the end of 2019, the company had cash of USD166 million and net debt of USD33 million.
The stock was trading 1.8% higher at 140.00 pence each on Tuesday morning in London.
By Ife Taiwo; [email protected]
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