Preliminary Results

12 March 2025

Preliminary Results

Year ended 31 December 2024

Eduardo Landin, Chief Executive Officer of Hochschild, commented:

"We are pleased to announce our best financial performance for 13 years, a testament to our exceptional team and high-quality assets. Our growth strategy continues to deliver, with the addition of a record 2.8 million gold-equivalent ounces of mineable resources, extending the life of all our current operations and two major growth projects are now being developed that could boost annual production by over 200,000 ounces. In line with our commitment to shareholder value, we are restoring our dividend and introducing a clear dividend policy, underscoring our focus on sustainable returns. Our team remains dedicated to maximising value, optimising costs, and ensuring long-term growth."

2024 Strong financial performance

§ Revenue up 37% at $947.7 million (2023: $693.7 million)[1]

§ Adjusted EBITDA up 54% at $421.4 million (2023: $274.4 million)[2] 

§ Profit before income tax (pre-exceptional) up 272% at $199.1 million (2023: $53.5 million)

§ Profit before income tax (post-exceptional) up 507% at $177.2 million (2023: $43.5 million loss)

§ Basic earnings per share (pre-exceptional) at $0.23 (2023: $0.02)

§ Basic earnings per share (post-exceptional) at $0.19 (2023: loss per share of $0.10)

§ Cash and cash equivalents balance of $97.0 million as at 31 December 2024 (2023: $89.1 million)

§ Net debt2 of $215.6 million as at 31 December 2024 (2023: $257.9 million)

Dividend restored

§ Final proposed dividend of $1.94 cents per share ($10.0 million)[3]

§ Dividend policy introduced: payout based on 20-30% of attributable free cashflow[4] 

o  Minimum annual dividend of $10.0 million: to be distributed in two instalments

o  Subject to leverage being lower than 1.5x Net debt/Adjusted EBITDA (current Net Debt/Adjusted EBITDA of 0.51x as at 31 December 2024)

2024 Operational Performance[5]  

§ Full year attributable production of 347,374 gold equivalent ounces

§ All-in sustaining costs (AISC) 2 from operations of $1,638 per gold equivalent ounce (2023: $1,454)

2024 Exploration and Project Highlights

§ Record resource additions of 2.8 million gold equivalent ounces

o  1.0 million gold equivalent ounces added at Inmaculada

o  1.3 million gold equivalent ounces added at Royropata

o  0.3 million gold equivalent ounces added at San Jose

o  0.2 million gold ounces added at Mara Rosa

§ Acquisition completed of the Monte Do Carmo project for total phased payments of $60.0 million ($45.0 million already paid)

2024 ESG KPIs

§ Lost Time Injury Frequency Rate of 1.25 (2023: 0.99)[6]

§ Water consumption of 138lt/person/day (2023: 163lt/person/day)[7]

§ Domestic waste generation of 0.93 kg/person/day (2023: 0.93kg/person/day)8

§ ECO score of 5.58 out of 6 (2023: 5.76)8,[8]

2025 Outlook

§ Overall production target:

o  350,000-378,000 gold equivalent ounces

o  New Mara Rosa mine set to produce 94,000-104,000 ounces of gold

§ All-in sustaining cost target:

o  $1,587-$1,687 per gold equivalent ounce

§ Total sustaining capital expenditure at operating mines expected to be approximately $169-180 million

§ Brownfield exploration budget of $36 million

________________________________________________________________________________________

A presentation will be held for analysts and investors at 9.30am (UK time) on Wednesday 12 March 2025 at the offices of Hudson Sandler,

25 Charterhouse Square, London, EC1M 6AE

The presentation and a link to the live audio webcast of the presentation can be found at the Hochschild website: 

www.hochschildmining.com

or:

https://brrmedia.news/HOC_FY_24

To join the event via conference call, please see dial in details below:

International Dial in: +44 (0)330 551 0200

US Toll-Free Number: 866 580 3963

Canada Toll Free: 1 866 378 3566

Password: Hochschild Mining FY24 ________________________________________________________________________________________

Enquiries:

Hochschild Mining PLC

Charles Gordon +44 (0)20 3709 3264

Head of Investor Relations

Hudson Sandler

Charlie Jack +44 (0)20 7796 4133

Public Relations

________________________________________________________________________________________

Non-IFRS Financial Performance Measures

The Company has included certain non-IFRS measures in this news release. The Company believes that these measures, in addition to conventional measures prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardised meaning prescribed under IFRS, and therefore may not be comparable to other issuers.

About Hochschild Mining PLC

Hochschild Mining PLC is a leading precious metals company listed on the London Stock Exchange (HOCM.L / HOC LN) and crosstrades on the OTCQX Best Market in the U.S. (HCHDF), 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 operates two underground epithermal vein mines: Inmaculada, located in southern Peru; and San Jose in southern Argentina, and an open pit gold mine, Mara Rosa, located in the state of Goiás, Brazil. Hochschild also has numerous long-term projects throughout the Americas.

Forward looking statements

This announcement may contain forward looking statements. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results, performance or achievements of Hochschild Mining PLC may, for various reasons, be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.

The forward-looking statements reflect knowledge and information available at the date of preparation of this announcement. Except as required by the Listing Rules and applicable law, the Board of Hochschild Mining PLC does not undertake any obligation to update or change any forward-looking statements to reflect events occurring after the date of this announcement. Nothing in this announcement should be construed as a profit forecast.

Note

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (Regulation (EU) No.596/2014). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

LEI: 549300JK10TVQ3CCJQ89

CHAIR'S STATEMENT

​

I am very pleased to report that we have made good progress across the entire business during the year. Precious metal prices have continued to reach new highs, and our management has been able to advance our strategy and key objectives, particularly in Brazil, where we reached major milestones with both commercial production at our Mara Rosa mine and strategic growth with the addition of the new Monte do Carmo project. Furthermore, our brownfield team has also added significant high-quality resources at all our operating mines, especially in Peru. These achievements not only reflect our ability to grow and deliver value but also align with our drive for excellence in all aspects of our business-development, operational performance and sustainability.

With regards to our people, we have continued to prioritise the safety of our employees, through the use of Safety 2.0, a framework of training programmes and initiatives that seek to reinforce Hochschild's safety-first approach in all that we do. The fruits of this work are reflected in the accident frequency rate which is, yet again, industry-leading and a testament to the work of our operations teams.

We cannot, and do not, measure our success solely with reference to our operational and financial results, as the impact of our operations on our wider stakeholders are equally important. We actively engage with our local communities and seek to meet their needs by creating positive social impacts and promoting economic development in the areas where we operate.  Our collective efforts are reflected in the year-on-year increase in the proportion of local procurement and the wide-ranging social investment programme implemented for the benefit of our local communities in Peru, Argentina, and Brazil. 

As a company committed to sustainable growth, we recognise that responsible environmental management is crucial to our long-term success. In 2024, our environmental performance was excellent, as measured by our unique and industry-leading ECO Score tool. Our green credentials were further reinforced by our ability to reduce, to all-time lows, the amount of water consumed in our operations. The year also saw the renewal of our ESG-linked debt facility which will see the interest rate adjusted in line with specific aspects of our environmental and safety performance.

Looking at Hochschild as an employer, turnover of personnel continues to be very low. The Board was also pleased to note the outcome of the working climate survey which saw a significant improvement in the satisfaction of our colleagues in Peru and Argentina over a five-year period. This year, we will work to implement the actions that have been identified to build on this strong foundation.

It is with great pride that Hochschild's collective efforts on all of these fronts have been the subject of external validation, with a number of ESG organisations upgrading their ratings on the Company as well as our inclusion in the FTSE4Good Index. Details of the wide-ranging programmes undertaken in our countries of operation can be found in the Sustainability section of the Annual Report and our standalone Sustainability Report to be published during Q2 2025.

In Brazil, we achieved significant milestones, notably reaching commercial production at our Mara Rosa mine in May 2024 after a successful construction phase which was completed on time and on budget. In addition, we further strengthened our position by optioning and subsequently acquiring the Monte do Carmo project for a total cost of $60 million. This highly promising asset in the business-friendly neighbouring state of Tocantins has all the potential to become our next major low-cost construction project in Brazil, complementing the growth trajectory we have established in this key region and utilising our team's proven expertise.

One of the standout highlights has been the performance of our brownfield exploration team. With their relentless dedication and innovative approach, we have achieved remarkable results in 2024, including a record addition of 2.8 million gold equivalent ounces to our resource base. As we have consistently emphasised, we believe strongly in the untapped potential of our assets and the successes we've seen this year validate that belief and underline the vital role that brownfield exploration plays in our strategy. These resource additions are not only a testament to the hard work of our team but also confirm our confidence that our existing operations will remain at the heart of our Company for many years to come.

Our operations once again delivered reliable performance, underscored by the achievement of first production from the Mara Rosa mine, a significant milestone, which further solidified our operational foundation as we continue to expand our footprint. Although costs were moderately above our initial guidance, this was largely due to persistent inflationary pressures in Argentina and a slower-than-expected ramp-up in Brazil. As with any major mine development, a certain degree of fine-tuning is often necessary in the final stages, but we remain confident that these challenges have been overcome and the operation will deliver a full year of output in 2025. Furthermore, the combination of a record gold price and our continued operational efficiency enabled us to generate strong cashflow, which allowed us to reduce a portion of our debt and continue to invest in our project pipeline.

I would like to express my gratitude and that of the Board to Michael Rawlinson, who will be retiring at the conclusion of the forthcoming AGM, for his dedicated service as a Board member, Senior Independent Director and Chair of the Remuneration Committee. We will all miss his insight and valued contributions in our discussions and wish him all the best for the future. I am delighted that Michael will be succeeded by Tracey Kerr as Senior Independent Director and by Jill Gardiner as Remuneration Committee Chair.

Outlook

2024 was a year marked by exceptional performance in the precious metals market, with both gold and silver reaching notable price milestones. Gold surged to a new high of $2,800 per ounce, while silver experienced a solid 21% increase in the year-end spot price, although still well below its record high from 2011. This robust market environment has significantly benefited us, and we are pleased to report that this price strength has continued into 2025, providing us with a strong foundation as we move forward.

2024 was a year of solid financial discipline and progress, as we made significant strides in achieving our medium-term financial targets. A key focus for us has been the reduction of our existing debt, and I'm pleased to report that we successfully reduced our net debt position by just over $40 million during the year. This was achieved while simultaneously making strategic investments in the final stages of development at Mara Rosa and the acquisition of Monte do Carmo, which will contribute to our growth and long-term success.

As part of our comprehensive capital allocation strategy, we also recognise the importance of capital return to our shareholders. With this in mind, the Board is pleased to announce that our strong balance sheet has allowed us to reinstate our dividend payout and to recommend a final dividend of $1.94 cents per share ($10.0 million). Furthermore, the Board has approved a new dividend policy aimed at providing greater predictability and consistency for our investors in the years ahead. This move underscores our commitment to maintaining a balance between reinvesting in our business for future growth and delivering tangible returns to our shareholders and could also include future share buybacks, if considered appropriate by the Directors.

As we look back on a successful 2024, I would like to take this opportunity to express my gratitude to our leadership team, as well as the several thousand Hochschild employees, contractors, and partners who have played a pivotal role in our achievements. Their dedication and hard work have been instrumental in delivering for our Company and our stakeholders, and I am incredibly proud of what we have accomplished together.

Eduardo Hochschild, Chairman

11 March 2025

CHIEF EXECUTIVE OFFICER'S STATEMENT

​

I am proud to say that we have made significant strides in executing the strategy we outlined in November 2023 which focused on four key pillars: brownfield exploration, operational efficiency, ESG and disciplined capital allocation.

Our new Mara Rosa mine was completed on time and on budget and is now operating as planned. This achievement marks another key step forward for the Company whilst at the same time, our other operations, particularly Inmaculada, have consistently exceeded expectations, showcasing the strength and resilience of our existing portfolio. Additionally, we have made great progress in expanding our growth pipeline by adding an exciting new project in Brazil and have also continued to advance the development of our Royropata project in Peru. These efforts position us well for the next phase of growth and lay the foundation for future value creation.

ESG

Our corporate purpose places responsibility at the core of how we conduct our business. As outlined by Eduardo Hochschild, our commitment to this responsibility is reflected through a wide range of programmes, initiatives, and actions that continue to drive positive change. I am proud to highlight that our principle-led approach has translated into real, impactful developments across our operations. In 2024, we took a significant step by forming a multi-disciplinary team dedicated to coordinating our ESG efforts, further emphasizing its critical role in our corporate strategy.

Through our community engagement initiatives, we successfully completed the first phase of work necessary to advance the Royropata project. Additionally, in the area of safety, our operating units in Peru and Argentina achieved Level 8 certification from Det Norske Veritas for their risk management information systems, making Hochschild the first mining company to secure this prestigious level of accreditation. We continue to maintain excellent environmental performance, reinforcing our dedication to sustainability and responsible resource management across all aspects of our operations.

Operations

Hochschild Mining's operational performance in 2024 continued to demonstrate the strength of our assets and our ability to meet our Company production target. We delivered 347,374 attributable gold equivalent ounces, marking a 16% increase compared to the prior year's output of 300,749 ounces mostly due to a first contribution from the new Mara Rosa mine. The all-in sustaining cost (AISC) for the year was slightly higher than expected, reflecting persistent inflationary pressures in Argentina and a slower-than-expected initial ramp-up in Brazil.

The Inmaculada mine delivered a strong performance in 2024, with an 8% increase in production, totalling 220,501 gold equivalent ounces (up from 203,849 ounces in 2023). This was largely driven by a series of successful operational efficiency initiatives aimed at increasing overall mined tonnage. The AISC for Inmaculada was $1,512 per gold equivalent ounce. Over at San Jose, production was in line with expectations at 123,732 million gold equivalent ounces in 2024 (2023: 134,264 million ounces), primarily reflecting scheduled lower grades. In addition, a $9 million project to expand plant capacity by approximately 20% was successfully completed by the end of the year, enabling the future treatment of existing lower-grade ores. AISC for San Jose was higher than anticipated at $1,973 per gold equivalent ounce, due to continued inflationary pressures in Argentina, without the benefit of currency devaluation to offset cost increases.

The Mara Rosa mine achieved a major milestone in 2024, with construction being completed early in the year. After commissioning, the mine reached commercial production in mid-May and eventually delivered 63,770 gold equivalent ounces at an all-in sustaining cost of $1,408 per gold equivalent ounce. Although the ramp-up process took slightly longer than expected, the team at Mara Rosa did a good job in overcoming the start-up challenges associated with a new mine. We are optimistic about the future, as 2025 will mark the first full year of production from this new asset, and we anticipate strong contributions to our overall performance moving forward.

Projects

With the project completed at Mara Rosa, the business development team turned its attention to the next stage of growth in Brazil. In March, we secured an option to acquire the Monte do Carmo project in the neighbouring Tocantins state from Cerrado Gold and following a period of extensive exploration and a twin drilling programme, which returned encouraging results, we exercised the option and closed the purchase in November for a total cost of $60 million. This high-quality addition to our pipeline added a low-cost, long-life asset located in a mining-friendly jurisdiction within close proximity to Mara Rosa. With permitting substantially de-risked and strong exploration upside, we believe that we have the right team in place to deliver another exciting opportunity for all stakeholders. In 2025, we look forward to advancing the project through additional drilling and detailed engineering with the aim of a decision on construction later in the year.

In Peru, we have made good progress at our Royropata project close to the former Pallancata mine. We achieved the key milestone of securing the community easements with our neighbouring communities on all the required land during the year and are aiming to submit the Modified Environmental Impact Assessment ("MEIA") to the government in 2026. We are also confident that our recent success at adding to the project's resource base will boost the project economics as we advance through the permitting process.

Exploration

Brownfield exploration remains one of the cornerstones of our strategy, and I am proud of the work accomplished by Oscar Garcia and his dedicated brownfield team. Their efforts have resulted in a record year of resource additions, with 2.8 million gold equivalent ounces added across all our operations and projects. A standout achievement was at Inmaculada, where over 1 million ounces were discovered, primarily in the northern part of the known deposit. In the Royropata area, we made significant strides towards the end of the year, discovering an important amount of resources that increases its initial life-of-mine. Additionally, we successfully replaced resources at San Jose and uncovered new mineralisation below the main pit at Mara Rosa, further highlighting the substantial potential to extend the life-of-mine at this new mine. These milestones underscore the strength and resilience of our exploration efforts, positioning us for continued success in the future.

Financial position

With the increased production from Mara Rosa and record gold prices during the year, the Company generated significant cashflow with the result that the Company's liquidity remains strong. Cash and cash equivalents of $97.0 million at the end of December (2023: $89.1 million) reflected strong operational cash flow during the year offset by the remaining project capital expenditure of just over $16 million at Mara Rosa in the first half of the year as well as the payment of a total of $45.0 million to Cerrado Gold Inc. for the Monte Do Carmo project in Brazil, and expenditure on the Royropata MEIA process of $32.9 million. Total debt of $312.6 million (31 December 2023: $347.1 million) was composed of $200.0 million from the existing ESG-linked loan facility with repayments between 2025 and 2027, $30.0 million from a recently negotiated $300.0 million ESG-linked loan facility with repayments between 2028 and 2029, and short-term borrowings. Net debt was reduced to $215.6 million (31 December 2023: $257.9 million).

Financial results

Total Group production was 11% higher than 2023 and this was boosted by a 19% rise in the gold price received and a 22% rise in the silver price. Consequently, revenue increased by 37% to $947.7 million (2023: $693.7 million). All-in sustaining costs were at $1,638 per gold equivalent ounce or $19.7 per silver equivalent ounce (2023: $1,454 per ounce/$17.5 per ounce). Adjusted EBITDA of $421.4 million (2023: $274.4 million) increased by 54% versus 2023 reflecting the production and price rises partially offset by an increase in cost of sales. Pre-exceptional earnings per share increased to $0.23 (2023: $0.02 per share) mainly due to the higher profitability, net of taxes. Post-exceptional earnings per share was higher at $0.19 (2023: $0.10 loss per share) and includes the impairment charges at the Azuca and Arcata projects of $13.7 million, the impairment of the investment in Aclara Resources Inc. of $5.1 million, and the write-off of work in progress of $3.1 million in Peru. The net after-tax effect of exceptional items is a loss of $19.8 million.

Outlook

We expect attributable production in 2025 of between 350,000-378,000 gold equivalent ounces. This will be driven by: 199,000-209,000 gold equivalent ounces from Inmaculada; an attributable contribution of 57,000 to 65,000 gold equivalent ounces from San Jose; and first full year of production from the Mara Rosa mine of between 94,000 and 104,000 gold ounces. All-in sustaining costs for operations are expected at between $1,587 and $1,687 per gold equivalent ounce. This forecast reflects some carry over capex at Inmaculada resulting from the 2022/2023 MEIA delay which mostly consists of the expansion of the tailings dam and the construction of a reverse osmosis plant. The forecast also includes project capex at Inmaculada, mainly an additional increase in tailings dam capacity as well as mine development capex to access new mine areas and ongoing net inflation in Argentina as well as, to a lesser extent, in Brazil and Peru.

A project capex budget of $19 million has been assigned to the new Monte Do Carmo project along with $9 million for Royropata and the exploration budget is approximately $36 million.

The prospects for the Company remain exciting as we continue to advance our two key growth projects in Brazil and Peru, which are set to significantly increase production in the next three years. We are actively pursuing efficiency improvements to mitigate cost inflation, inspired by the success at Inmaculada. Our strong financial position and continuing high precious metal prices gives us confidence and this is reflected by the reinstatement of the dividend and the introduction of a new policy, as outlined by our Chair. I remain optimistic that, in the year ahead, we will continue to deliver increased value for all our stakeholders in a responsible and sustainable manner.

Eduardo Landin, Chief Executive Officer

11 March 2025

OPERATING REVIEW

OPERATIONS

Note: 2025, 2024 and 2023 equivalent figures calculated assume a gold/silver ratio of 83x.

Production

In 2024, Hochschild delivered attributable production of 347,374 gold equivalent ounces or 28.8 million silver equivalent ounces, in line with the Company's guidance and an increase versus the 2023 result (300,749 gold equivalent ounces). Higher production from Inmaculada and a first contribution from the new Mara Rosa mine in Brazil was partially offset by lower production in San Jose and no production from Pallancata.

The overall attributable production target for 2025 is 350,000-378,000 gold equivalent ounces.

Total 2024 group production

Total production includes 100% of all production, including production attributable to Hochschild's minority shareholder at San Jose.

Attributable 2024 group production

Attributable production includes 100% of all production from Inmaculada, Mara Rosa and 51% from San Jose.

Attributable 2025 Production forecast split

Costs

All-in sustaining cost from operations in 2024 was $1,638 per gold equivalent ounce or $19.7 per silver equivalent ounce (2023: $1,454 per gold equivalent ounce or $17.5 per silver equivalent ounce), higher than guidance as anticipated, mainly as a result of: ongoing high net inflation in Argentina; a slower-than-expected ramp-up at the new Mara Rosa mine resulting in lower production for the year; higher costs resulting from rising precious metal prices including increased royalties, commercial deductions, legal workers profit sharing in Peru, export tax in Argentina and industry inflation. These effects were partially offset by lower costs at Inmaculada as a result of higher-than-forecast production resulting from cost efficiency initiatives during the year and the delay of some planned capex.

The all-in sustaining cost from operations in 2025 is expected to be between $1,587 and $1,687 per gold equivalent ounce.

2025 AISC forecast split

PERU

Inmaculada

The 100% owned Inmaculada gold/silver underground operation is located in the Department of Ayacucho in southern Peru. It commenced operations in June 2015.

Production

The Inmaculada mine delivered gold equivalent production of 220,501 ounces (2023: 203,849 ounces), which is an 8% improvement on 2023 when the mine was impacted by permit delays. There was also a rise in tonnage from the implementation of continuous improvement initiatives at site.

Costs

All-in sustaining cost was $1,512 per gold equivalent ounce (2023: $1,287 per ounce) with the increase versus 2023 mainly explained by the capex catch-up versus 2023 when a significant portion was deferred to 2024/2025 due the MEIA approval delay although a portion of this capex was delayed to 2025 which explains the result being lower than guidance.

Royropata

The 100% owned Royropata project is located in the Department of Ayacucho in southern Peru and is close to the Pallancata mine which was placed on temporary care and maintenance in December 2023.

In 2024, work continued on the MEIA process. All feasibility study engineering was completed whilst baseline studies continued throughout the year. Easements with communities were all successfully received by the end of the year. The aim is complete all field work in 2025 with the preparation of the MEIA documents expected to last into 2026 with submission to SENACE targeted for the middle of 2026.

ARGENTINA

San Jose

The San Jose silver/gold mine is located in Argentina, in the province of Santa Cruz, 1,750 kilometres south west of Buenos Aires. San Jose commenced production in 2007. Hochschild holds a controlling interest of 51% and is the mine operator. The remaining 49% is owned by McEwen Mining Inc.

Production

San Jose's production in 2024 totalled 123,732 gold equivalent ounces (2023: 134,264 ounces) with the decrease versus 2023 reflecting lower grades although the operation ended the year moderately above guidance.

In April 2024, the Board approved a $9 million project to increase the plant throughout capacity from 1,650 tonnes per day to 2,000 tonnes per day. This project was completed by the year end.

Costs

All-in sustaining costs were at $1,973 per gold equivalent ounce (2023: $1,570 per ounce) with the increase versus 2023 mainly due to the significant net inflation in the country in addition to lower grades and increases in selling expenses, commercial deductions and export taxes aligned with higher metal prices.

BRAZIL

Mara Rosa

The 100% owned Mara Rosa open pit gold mine is located in the mining friendly jurisdiction of Goiás State in Brazil. Mara Rosa commenced production in mid-May 2024.

Production

The new Mara Rosa mine reached commercial production in mid-May 2024 and after a slower-than-expected ramp-up during the second and third quarters. Issues with the mining contractor and underperforming mechanical filters in the plant were solved with the result that output was steady state in Q4 with 25,530 ounces of gold delivered. Overall production in 2024 was 63,770 gold equivalent ounces.

Costs

All-in sustaining costs were at $1,408 per gold equivalent ounce with the increase versus the guided range of $1,090-$1,120 per ounce mainly due to the slower-than-expected ramp-up of the mine (mentioned above), local inflation and the dry stacking/filtration process costs.

Development project: Monte Do Carmo

In March 2024, Hochschild announced that it had entered into an option agreement for $15 million to acquire a 100% interest in Cerrado Gold Inc's Monte Do Carmo Project located in the mining-friendly state of Tocantins, Brazil. The option was exercised in November 2024 and, after making $45 million in phased payments in 2024, the Company was able to complete the acquisition of 100% of the project with $30 million paid in the fourth quarter.

Monte Do Carmo comprises 21 mineral concessions encompassing 82,542 hectares, hosts multiple identified gold targets along a 30km mineralised trend, including the principal Serra Alta gold deposit, which hosts a Measured and Indicated resource of 1,012koz gold and Inferred resource of 66koz gold and was the subject of a Feasibility Study dated 31 October 2023. The project benefits from significant existing site infrastructure including year-round access via a paved highway and close proximity to the Isamu Ikeda hydropower plant. Permitting is substantially advanced, with the Environmental Impact Assessment approved and the Preliminary Licence granted by the Tocantins state environmental agency in May 2023.

The Company believes that the Monte Do Carmo is a compelling strategic opportunity to enhance Hochschild's project pipeline and growth profile through the addition of a high-quality, long-life project. The key benefits to Hochschild, shareholders and other stakeholders, include:

· High quality project: Adds a low-cost, long-life asset located in a mining-friendly jurisdiction of Brazil, within close proximity to the Mara Rosa mine

· Significant exploration upside: Offers compelling near-mine exploration opportunities underpinned by a large land package which remains relatively underexplored

· De-risked permitting: Project permitting significantly advanced with the installation license recently granted

· Leverages Hochschild's expertise and presence in Brazil: Aligned with Hochschild's core strengths and long-term strategy of acquiring and optimising development stage projects in Latin America, specifically in Brazil, a country where the Company has robust management and technical teams

· Enhances Hochschild's portfolio: Provides the next leg of growth for Hochschild following the completion of the Mara Rosa mine

Following the original option agreement, the Company executed a 1,704m twin hole drilling programme which validated the deposit's mineral resource estimate. In addition, a 4,806m resource drilling campaign was conducted across five prospective mineralisation zones. The campaign incorporated additional gold resources (both Measured and Indicated and Inferred) which confirmed the strong geological potential of the project.

The Company also devised an exploration plan across seven new targets that commenced in November 2024. Furthermore, it is currently anticipated that, with the twin hole exploration results, further upside from additional drilling and several engineering optimisations already identified, the Company will be in a strong position to reach an eventual construction decision by the end of 2025.

Hochschild's programme in 2025 includes:

· Ongoing drilling programs to expand the resource base

· Advance installation license for the main project

· Conduct any additional environmental analyses as identified during due diligence

· Develop the detailed engineering studies

BROWNFIELD EXPLORATION

Inmaculada

During the year, the team carried out 34,477m of drilling for both potential and resources. A number of structures were drilled (see below) and by the end of the year 1.0 million gold equivalent ounces of inferred resources had been added at a grade of approximately 4.72 grams per tonne of gold equivalent.

In the first quarter of 2025, the team is planning 7,500m of potential drilling to conclude the exploration of the Eduardo, Kary, Tesoro, Bárbara N and Keyla veins as well as starting drilling of the area to the south of the Divina and Lucy veins.

San Jose

During 2024, the brownfield team carried out a further 17,431m of drilling for potential and resources. A number of structures were drilled (see below) and by the end of the year 19.2 million silver equivalent ounces of inferred resources had been added at a grade of approximately 644 grams per tonne of silver equivalent.

The plan for the first quarter is to perform potential drilling at San Jose in the Kospi West, Frea South and Odin South veins.

Royropata

Exploration was mostly in the fourth quarter in the Royropata area and was concentrated around the Marco vein with infill drilling and also for potential resources (2,858m). By the end of the year 95.6 million silver equivalent ounces of inferred resources had been added at a grade of approximately 639 grams per tonne of silver equivalent.

Mara Rosa

The Mara Rosa brownfield programme commenced in the second quarter of the year with one of the key aims being to confirm economic mineralisation below the existing Posse pit and to add resources. 5,984m of resources drilling and 3,136m of potential drilling was executed with the result that 218,000 ounces of gold were added at a grade of 1.39 grams per tonne of gold.

The plan for the first quarter of 2025 is to perform potential drilling between the Posse and Pastinho zones.

FINANCIAL REVIEW

The reporting currency of Hochschild Mining PLC is US dollars. In discussions of financial performance, the Group removes the effect of exceptional items, unless otherwise indicated, and in the income statement results are shown both pre and post such exceptional items. Exceptional items are those items, which due to their nature or the expected infrequency of the events giving rise to them, are disclosed separately on the face of the income statement to enable a better understanding of the financial performance of the Group and to facilitate comparison with prior years.

Revenue

Gross revenue [9]

Gross revenue increased by 36% to $966.1 million in 2024 (2023: $710.6 million) due to higher average realised precious metal prices and higher gold production. Gold output increased due to the commencement of production in Mara Rosa; and higher production in Inmaculada due to a more normalised period versus 2023 when the operation was impacted by permit delays, and the implementation of continuous improvement initiatives at site. These were partially offset by the absence of revenue from the Pallancata mine, mainly silver production, which was placed on care and maintenance towards the end of 2023.

Gold

Gross revenue from gold in 2024 increased to $660.1 million (2023: $437.0 million) due to the 19% increase in the average realised gold price and higher gold production.

Silver

Gross revenue from silver increased in 2024 to $305.6 million (2023: $273.0 million) due to the 22% increase in the average realised silver price and higher silver production in Inmaculada, partially offset by the absence of silver production from the Pallancata mine. 

Gross average realised sales prices

The following table provides figures for average realised prices (before the deduction of commercial discounts) and ounces sold for 2024 and 2023:

2024 realised prices and revenue include the effect of the following hedges: forwards for 27,600 gold ounces at a price of $2,100 per ounce, and zero cost collars for 100,000 gold ounces at a strike put of $2,000 per ounce and a strike call of $2,252 per ounce, the impact of which was a loss of $27.9 million in 2024. 2023 includes forwards for 29,250 gold ounces at a price of $2,047 per ounce, and for 3.3 million silver ounces at a price of $25 per ounce, the impact of which was a gain of $7.8 million in 2023.

Commercial discounts

Commercial discounts refer to refinery treatment charges, refining fees and payable deductions for processing concentrate, and are deducted from gross revenue on a per tonne basis (treatment charge), per ounce basis (refining fees) or as a percentage of gross revenue (payable deductions). In 2024, the Group recorded commercial discounts of $18.4 million (2023: $16.9 million). The ratio of commercial discounts to gross revenue in 2024 was 2%, in line with 2023.

Net revenue

Net revenue was $947.7 million (2023: $693.7 million), including net gold revenue of $649.3 million (2023: $429.9 million) and net silver revenue of $298.0 million (2023: $263.3 million). In 2024, gold accounted for 69% and silver 31% of the Company's consolidated net revenue (2023: gold 62% and silver 38%).

Reconciliation of gross revenue by mine to Group net revenue

Cost of sales

Total cost of sales was $605.3 million in 2024 (2023: $508.2 million). The direct production cost excluding depreciation and amortisation was higher at $454.0 million (2023: $363.0 million) mainly due to higher production in Inmaculada, the commencement of production in Mara Rosa, ongoing net inflation in Argentina, and rising precious metal prices resulting in increased royalties. These effects were partially offset by no production in Pallancata. Depreciation and amortisation in production cost increased from $144.8 million in 2023 to $157.2 million in 2024 mainly due to higher production in Inmaculada and the commencement of production in Mara Rosa, partially offset by no production in Pallancata. Fixed costs incurred during total or partial production stoppages in San Jose (due to bad weather) were $1.1 million in 2024 (2023: $3.3 million mainly due to partial stoppages at Inmaculada and Pallancata). Increase in inventories was $10.1 million in 2024 (2023: $4.8 million) mainly due to higher products in process of $14.8 million in Mara Rosa, partially offset by lower products in process in Inmaculada of $4.6 million.  

Fixed costs during operational stoppages and reduced capacity

Unit cost per tonne

The Company reported unit cost per tonne at its operations of $127.0 per tonne in 2024, a 26% decrease versus 2023 ($171.1 per tonne). This was mainly due to the commencement of production in Mara Rosa with a lower cost per tonne than the other operations, partially offset by ongoing high net inflation in Argentina impacting San Jose.

Unit cost per tonne by operation (including royalties)[10]:

Cash costs

Cash costs include cost of sales, commercial deductions and selling expenses, less depreciation and amortisation included in cost of sales.

Cash cost reconciliation

Year ended 31 December 2024

Year ended 31 December 2023

Co-product cash cost per ounce is the cash cost allocated to the primary metal (allocation based on proportion of revenue), divided by the ounces sold of the primary metal. By-product cash cost per ounce is the total cash cost minus revenue and commercial discounts of the by-product divided by the ounces sold of the primary metal.

All-in sustaining cost reconciliation[18]

All-in sustaining cash costs per silver equivalent ounce

Year ended 31 December 2024

Year ended 31 December 2023

Administrative expenses

Administrative expenses were higher at $50.2 million (2023: $47.2 million) mainly due to higher personnel expenses arising from a higher performance bonus provision, long-term incentive plan and legal workers profit sharing in Peru.

Exploration expenses

In 2024, exploration expenses increased to $26.9 million (2023: $21.3 million) mainly due higher exploration expenses at Inmaculada of $4.4 million (2023: $1.4 million), higher expenses at San Jose of $9.8 million (2023: $8.2 million), expenditure on exploration at Monte do Carmo ($1.6 million), higher expenses at Mara Rosa of $1.3 million (2023: $nil), and Pallancata of $2.1 million (2023: $1.1 million). These were partially offset by the absence of exploration expenses in Canada from the Snip project, which was terminated in 2023 ($2.2 million).

In addition, the Group capitalises part of its brownfield exploration, which mostly relates to costs incurred converting potential resources to the Inferred or Measured and Indicated categories. In 2024, the Company capitalised $7.4 million relating to brownfield exploration (2023: $nil), bringing the total investment in exploration for 2024 to $34.3 million (2023: $21.3 million).

Selling expenses

Selling expenses increased to $17.5 million (2023: $14.9 million) mainly due to higher gold prices impacting Argentinean export taxes.

Other income/expenses

Other income was lower at $21.0 million (2023: $30.3 million) principally due to: the Argentinian Government export programme to settle a portion of San Jose exports at the blue chip exchange rate totaling $16.0 million (2023: $21.2 million), the collection of a British Columbia, Canada tax credit of $0.5 million (2023: $3.2 million) from the Snip project, and the insurance reimbursement received in 2023 in connection with damage to Inmaculada's machine belt in 2022 of $2.1 million. 

Other expenses before exceptional items were lower at $43.2 million (2023: $47.6 million) mainly due to reduced mine closure provision increases of $14.7 million (2023: $28.4 million), partially offset by higher care and maintenance expenses at Pallancata of $8.3 million, which was placed on temporary care and maintenance during the fourth quarter of 2023 (2023: $2.5 million).

Adjusted EBITDA

Adjusted EBITDA increased by 54% to $421.4 million (2023: $274.4 million) mainly due to the increase in revenue resulting from increased precious metal prices and higher gold production.

Adjusted EBITDA is calculated as profit from continuing operations before exceptional items, net finance costs, foreign exchange losses and income tax plus non-cash items (depreciation and amortisation and changes in mine closure provisions) and exploration expenses other than personnel and other exploration related fixed expenses.

Finance income

Finance income of $13.1 million increased from 2023 ($7.5 million) mainly due to the gain on Argentinian mutual funds held since September 2023 of $6.9 million (2023: $1.5 million).

Finance costs

Finance costs increased from $18.2 million in 2023 to $26.9 million in 2024, principally due to higher interest expense which totalled $18.6 million (2023: $12.2 million) resulting from the lower capitalisation of interest expenses that are directly attributable to the construction of Mara Rosa of $6.0 million (2023: $18.7). This was partially offset by the impact of lower interest rates and a lower average medium-term loan balance.

Foreign exchange (losses)/gains

The Group recognised a foreign exchange loss of $10.4 million (2023: $15.6 million) mainly due to the impact of devaluation of the local currency on monetary assets in Argentina of $9.1 million (2023: $16.0 million).

Income tax

The Company's pre-exceptional income tax charge was $65.6 million (2023: $44.0 million). The increase in the charge is mainly explained by higher profitability versus 2023.

The effective tax rate (pre-exceptional) for the period was 33.0% (2023: 82.2%), compared to the weighted average statutory income tax rate of 31.1% (2023: 31.8%). The higher effective tax rate in 2024 versus the average statutory rate is mainly explained by: the effect of Royalties and the Special Mining Tax which increased the effective rate by 5.0%; the additions to the mine closure provision increasing the rate by 3.1%; and the impact of non-recognised tax losses in non-operating companies increasing the rate by 1.4%. These effects were partially offset by foreign exchange in Argentina and Brazil decreasing the rate by 5.8%, and the recognition deferred tax assets reducing the rate by 1.9%.  

Exceptional items

Exceptional items in 2024 totalled a $19.8 million loss after tax (2023: $69.5 million loss after tax) related to impairment charges at the Azuca and Arcata projects of $13.7 million, the impairment of the investment in Aclara Resources Inc. of $5.1 million, and the write-off of work in progress of $3.1 million in Peru. 2023 includes impairment losses at the Azuca and Crespo projects of $63.3 million and the San Jose mining unit of $17.4 million; the restructuring charges in Pallancata of $9.0 million resulting from placing the operation in care and maintenance; and the impairment of the investment in Aclara Resources Inc. of $7.2 million.

The tax effect of these exceptional items was a $2.1 million tax gain (2023: $27.4 million).

Cash flow and balance sheet review

Cash flow:

Net cash generated from operating activities increased from $178.8 million in 2023 to $321.2 million in 2024 mainly due to higher Adjusted EBITDA of $421.4 million (2023: $274.4 million).

Net cash used in investing activities increased from $245.5 million in 2023 to $277.0 million in 2024 mainly due to higher scheduled capex in Inmaculada resulting from mine developments deferred in 2023 due to the MEIA permit delays of $138.6 million (2023: $86.0 million), the consideration paid for the acquisition of Monte do Carmo of $45.0 million, and expenditure on the Royropata MEIA process of $32.9 million (2023: $6.4 million). These effects were partially offset by lower capex in Mara Rosa of $29.3 million (2023: $121.1 million).

Cash from financing activities decreased from an inflow of $22.8 million to an outflow of $34.8 million in 2024, primarily due the $275.0 million repayment of the existing $300.0 medium-term facility (2023: $25.0 million), partially offset by the draw-down of $140.0 million from the $200.0 million medium-term loan facility (2023: $60.0 million), the $30.0 million draw-down from the new $300.0 million medium-term facility, and a net increase of $80.0 million in short-term loans (2023: $10.2 million repayment of Minera Santa Cruz stock market promissory notes).

Working capital

The Group's working capital position decreased by $69.2 million from $(12.5) million to $(81.7) million. The key drivers of the decrease were: higher trade and other payables of $72.4, higher derivative financial liabilities of $39.9 million, and higher income tax payable of $22.8 million; partially offset by higher trade and other receivables of $55.4 million, and higher inventories of $18.8 million.

Net debt

The Group's reported net debt position was $215.6 million as at 31 December 2024 (31 December 2023: $257.9 million). The decrease is mainly explained by the higher cash generated by the business, despite strategic investments to complete the construction of Mara Rosa, the acquisition of Monte do Carmo and the investments in Royropata easements. Total borrowings were reduced by $34.5 million mainly due to $275.0 million repayment of the existing $300.0 medium-term facility partially offset by the draw-down of $140.0 million from the $200.0 million medium-term loan facility, the $30.0 million draw-down from the new $300.0 medium-term facility, and a net increase of $80.0 million in short-term loans. 

Capital expenditure

2024 capital expenditure increased from $288.4 million in 2023 to $348.1 million in 2024 mainly due to the acquisition of Monte do Carmo on 7 November 2024 for a total consideration of $86.6 million, which includes cash consideration of $60.0 million of which $45.0 million has been paid and $15.0 million has been deferred, and $26.2 million liabilities assumed representing the fair value of the loan and streaming agreement with Sprott which were transferred to the Group on completion. Also, higher scheduled capex in Inmaculada resulting from mine developments deferred in 2023 due to the MEIA permit delays. These effects were partially offset by reduced capex at Mara Rosa of $29.3 million (2023: $121.1 million), and lower capitalised interest expenses that are directly attributable to the construction of Mara Rosa of $6.0 million (2023: $18.7 million).  

Final proposed dividends

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The responsibility statement below has been prepared in connection with the Company´s Annual Report and Accounts for the year ended 31 December 2024.

The Directors confirm that to the best of their knowledge:

o  the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole; and

o  the Management Report (as defined in the Director's Report) includes a fair review of the development and performance of the business and the position of the Company and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face.

Consolidated income statement

For the year ended 31 December 2024

Consolidated statement of comprehensive income

For the year ended 31 December 2024

1 Foreign exchange effect generated in the Group´s companies when the functional currency is the local currency, mainly generated by the increase (2023: decrease) of the US$ exchange rate in Brazil. 

Consolidated statement of financial position

As at 31 December 2024

These financial statements were approved by the Board of Directors on 11 March 2025 and signed on its behalf by:

Eduardo Landin

Chief Executive Officer

11 March 2025

Consolidated statement of cash flows

For the year ended 31 December 2024

1 Taxes paid have been offset with value added tax (VAT) credits of US$6,732,000 (2023: US$10,175,000).

Consolidated statement of changes in equity

For the year 31 December 2024