Response to Recent Events in Peru

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22 November 2021

Response to Recent Events in Peru

Hochschild Mining PLC ("Hochschild" or the "Company") (LSE: HOC) (OTCQX: HCHDF) has learnt through various media outlets of minutes of a meeting signed by the Peruvian Head of Cabinet, certain vice-ministers as well as regional authorities in the town of Coracora in the Ayacucho region. The minutes refer to alleged environmental complaints, and state that a commission has been constituted in order to negotiate the timetable and terms for the closure of certain mining projects in southern Ayacucho, including the Company's Pallancata and Inmaculada mines.  The Peruvian Head of Cabinet subsequently indicated that approvals will no longer be granted to facilitate additional mining or exploration activities in relation to these mining operations. The Company has not received any formal communication from the government regarding this matter.

The Company believes this conduct by the Peruvian Head of Cabinet is not in accordance with Peruvian law and is wholly without merit. Accordingly, Hochschild will vigorously defend its position and take all action necessary to ensure that the rights of the Company and its wholly-owned subsidiaries under Peruvian and international law are respected.   

The Company operates under the highest environmental standards and applies industry best practice. As such, Hochschild categorically rejects any inference with regard to environmental pollution.  The Company's sustainable operations are strictly regulated and supervised by several Peruvian regulatory bodies and our activities remain in compliance with their requirements. The Company has a long history of undertaking its operations with a commitment to responsible mining and has been publicly recognized on numerous occasions for its approach to sustainable practices.

In Peru alone, Hochschild employs more than 5,000 people directly and approximately 40,000 people indirectly.  In addition to being a significant employer, Hochschild contributes a material amount to the economy through the payment of tax and royalties. The Company and its employees work in collaboration with local communities, implementing not only social development projects, but also contributing to the local economies through the hiring of personnel and services. Hochschild has long-term investment plans to further develop its mining assets, an example being Inmaculada, where a modified environmental impact assessment has been submitted for approval and which, once obtained, will see the continuation of mining activities to deliver significant benefits to the region and its communities.

The communities located close to the affected operations as well as the trade unions representing the operations' workforce have issued formal statements in support of Hochschild.  Furthermore, a number of reputable institutions including the National Confederation of Private Business and the National Society of Mining, Energy & Oil have declared their support for Hochschild.

The Company reserves all of its rights under Peruvian and international law and remains committed to constructively engaging with all parties to ensure the Peruvian authorities reconsider the illegal position adopted. 

Ignacio Bustamante, CEO, commented:

"Hochschild is surprised by this unilateral announcement by the Head of Cabinet. Our goal is to continue investing in Peru, growing our resources and extending mine lives, in accordance with the Peruvian legal framework. We are prepared to enter into a dialogue with the government in order to resolve any misunderstandings with respect to our mining operations. However, given the illegal nature of the proposed action, the Company will vigorously defend its rights to operate these mines using all available legal avenues."

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A conference call will be held at 9.00am (London time) on Monday 22 November 2021 for analysts and investors. 

Dial in details as follows:

UK Toll-Free Number: 0800 279 7209

International Dial in: +44 (0)330 336 9434

US/Canada Toll-Free Number: 800-458-4121

Pin 7624963

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Enquiries:

Hochschild Mining PLC

Charles Gordon                                                                          +44 (0)20 3709 3264

Head of Investor Relations

Hudson Sandler

Charlie Jack                                                                                +44 (0)207 796 4133

Public Relations

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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 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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Forward-looking statements

Certain statements contained in this announcement that are not historical fact are "forward-looking" statements. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company's control and all of which are based on the Company's current beliefs and expectations about future events. Forward-looking statements are typically identified by the use of forward-looking terminology such as "believes", "expects", "may", "will", "could", "should", "intends", "estimates", "plans", "assumes" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy that involve risks and uncertainties. In addition, from time to time, the Company or its representatives have made or may make forward-looking statements orally or in writing. Furthermore, such forward-looking statements may be included in, but are not limited to, press releases or oral statements made by or with the approval of an authorised executive officer of the Company.  These forward-looking statements, and other statements contained in this announcement regarding matters that are not historical facts, involve predictions. No assurance can be given that such future results will be achieved; actual events or results may differ materially as a result of risks and uncertainties facing the Company and its subsidiaries. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in 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 Company 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.

LEI: 549300JK10TVQ3CCJQ89

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