Hochschild MiningPLC HOC Advanced Project Permitting Update

  Hochschild MiningPLC (HOC) - Advanced Project Permitting Update

RNS Number : 8652R
Hochschild Mining PLC
23 November 2012








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23 November 2012

                                      

                                      

                      Advanced Project Permitting Update





Hochschild Mining plc ("Hochschild" or  "the Company") announces an update  to 
its Advanced Projects' schedule.



As previously stated in  the Interim Results  announcement in August,  changes 
were made  by  the  Peruvian government  to  the  submission  requirementsfor 
construction permit applications which, together  with the number of  industry 
applications  being  processed,  will  lead  to  a  longer  than   anticipated 
permitting process.



Hochschild now expects to receive the final mill construction permits for both
the  Inmaculada  and  Crespo  projects  in  the  second  half  of  2013   with 
commissioning for both projects'  mills now scheduled for  the second half  of 
2014.



Furthermore, following the substantial progress made by the Company during the
year  with  regards   to  detailed  engineering   and  also  procurement   and 
construction contracts,  the revised  total capital  expenditure estimate  for 
Inmaculada is now expected to be approximately $350 million. In addition,  the 
above mentioned delays combined with the strengthening of the Peruvian Sol are
expected to add approximately $20 million to that total.



At the Crespo project,  optimisation of the processing  stage has allowed  the 
Company to maintain  its capital  expenditure estimate  at approximately  $110 
million despite the permitting delays.





Commenting on the announcement, Ignacio Bustamante, CEO, said:

"We highlighted earlier  this year  the regulatory changes  to the  permitting 
process in Peru and are now in a position to give clarification on the  effect 
of the resulting  delays on our  Advanced Projects. We  have made  significant 
progress during 2012 in the development of both projects and in obtaining  the 
government approval for the Environmental  Impact Study at Inmaculada and  are 
confident that on receipt of the final mill construction permits, now expected
in the second half of 2013, we will  be in a good position to rapidly  advance 
towards production.  Despite this  delay, both  projects continue  to be  very 
profitable even at  long term  analyst consensus  prices and  are expected  to 
generate significant value for  the Company whilst we  also remain excited  by 
their strong geological upside."



____________


___________________________________________________________________________

Enquiries:

Hochschild Mining plc

Charles  Gordon    
 +44 (0)20 7907 2934

Head of Investor Relations

RLM Finsbury

Charles
Chichester
+44 (0)20 7251 3801

Public Relations

___________________________________________________________________________

About Hochschild Mining plc

Hochschild Mining  plc 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 
almost fifty years' experience in the mining of precious metal epithermal vein
deposits and currently operates four underground epithermal vein mines,  three 
located in southern Peru  and one in southern  Argentina. Hochschild also  has 
numerous long-term projects throughout the Americas.



Forward looking Statements

This announcement contains certain forward looking statements which may relate
to matters  such as  the business,  strategy, investments,  production,  major 
projects and  their contribution  to expected  production and  other plans  of 
Hochschild Mining  plc and  its current  goals, assumptions  and  expectations 
relating to its future financial condition, performance and results.



Forward-looking statements include,  without limitation, statements  typically 
containing words  such  as  "intends",  "expects",  "anticipates",  "targets", 
"plans", "estimates" and  words of  similar import. 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  be 
materially different  from any  future  results, performance  or  achievements 
expressed or implied by  such forward looking  statements. Factors that  could 
cause or contribute to differences between the actual results, performance  or 
achievements of Hochschild  Mining plc and  current expectations include,  but 
are  not  limited  to,   legislative,  fiscal  and  regulatory   developments, 
competitive conditions, technological developments, exchange rate fluctuations
and general  economic  conditions. Past  performance  is no  guide  to  future 
performance and persons needing advice should consult an independent financial
adviser.



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, 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.



                     This information is provided by RNS
           The company news service from the London Stock Exchange

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