Hochschild Mining PLC

Full Year 2023 Results

13 March 2024

Disclaimer

Some statements contained in this presentation or in documents referred to in it are or may be forward-looking statements. Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect. Accordingly, actual results may vary or differ from those expressed in such statements, depending on a variety of factors. Forward-looking statements speak only as of the date on which they are made. Hochschild Mining plc undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Past performance of the Company or its shares cannot be relied on as a guide to future performance. Nothing in this

presentation is to be construed as a profit forecast.

This presentation has been prepared solely for informational purposes and does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any securities issued by Hochschild Mining plc (or any subsidiary thereof) or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis of or be relied on in any connection with or act as an inducement to enter into any contract or commitment therefore. The information herein is only a summary, does not purport to be complete and has not been independently verified. No representation or warranty, either express or implied, is made as to, and no reliance may be placed for any

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2

A Year of Delivery

ESG

  • Strong 2023 ESG performance

Resilient operational and financial performance

  • Revenue: $694m
  • Adj. EBITDA: $274m
  • EPS $0.02
  • AISC: $1,454/oz below revised guidance

Growth

  • Mara Rosa (Brazil): ramping up on time and on budget
  • Low-cost,high-grade Royropata project progressing permitting
  • Option secured for Monte Do Carmo project, Brazil
  • Inmaculada permit secured for 20 years

Capital discipline

  • Cash: $89m
  • Net debt: $258m
  • Focused on debt repayment, growth, and capital return

3

*Gold equivalent ounces

ESG: Driving responsibility and respect

  • Record safety results
    • Lost Time Injury Frequency Rate : 0.99
    • Accident Severity Index: 37
  • Best environmental performance since KPI inception
    • ECO score: 5.76 out of 6
    • Mara Rosa 5m+ hours injury free
  • Increased total local workforce to 59%
  • Strong support to communities
    • $8.2m invested
    • $156m value of goods & services procured from local providers

LTIFR

1.38

1.26

1.37

1.05

0.99

Accident Severity Index

676

474

ECO score

5.74

5.29

5.27

5.76

4.82

54

93

37

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

2019

2020

2021

2022

2023

4

Hochschild Mining PLC

2023 Financials

Eduardo Noriega, CFO

P&L

$m (pre-excep)

2023

2022

variation

Revenue

693.7

735.6

(41.9)

  • Revenue 6% lower than 2023:
    • MEIA delay, scheduled lower production at Inmaculada/Pallancata, lower San Jose grades
    • Partially offset by higher prices

Cost of sales

(508.2)

(527.6)

19.4

Gross profit

185.5

208.0

(22.5)

Administrative exp.

(47.2)

(54.2)

7.0

Selling exp.

(14.9)

(14.0)

(0.9)

Exploration exp.

(21.3)

(56.8)

35.5

Others net

(20.0)

(37.8)

17.8

Sales volumes

- 9%

(000z)

- 15%

242.9

13.5

221.4

11.5

Gold

Silver

Realised prices

+ 10%

($/oz)

+1%

1,791

1,974

23.3

23.6

Gold

Silver

Operating income

82.1

45.2

37.0

Share in associate

(2.3)

(1.7)

(0.6)

Net interest

(10.7)

(16.6)

5.9

FX loss

(15.6)

(2.6)

(13.0)

PBT

53.5

24.3

29.2

Tax

(44.0)

(17.6)

(26.4)

Net profit

9.5

6.7

2.8

Attrib. net profit

9.0

4.9

4.1

EPS

0.02

0.01

0.01

Adjusted EBITDA

274.4

249.6

24.8

• Cost of sales fell 4%:

- Lower production

- Partially offset by higher % of conventional mining & higher depreciation

• Exploration lower: termination of Snip option & deferrals from Inmaculada MEIA delay

• Net interest lower:

- Capitalisation of interest expenses from Mara Rosa construction (+$15.7m)

- Partially offset by higher net debt and increase in interest rates (-$13.6m)

• FX Loss: impact of Argentinian currency devaluation on monetary assets (-$15.5m)

• Income tax includes:

- FX impact on deferred income tax in Argentina (-$7.1m)

- Special Mining Tax/Royalties in Peru (-$6.8m)

• Exceptional items: (-$69.5m)

- Azuca & Crespo impairments: market conditions and inflation (-$63.3m)

- San Jose impairment: inflation and increased country risk (-$17.4m)

-

Pallancata: restructuring charges due to C&M decision (-$9.0m)

6

-

Aclara impairment: higher risk from permitting (-$7.2m)

  • Tax effect (+$27.4m)

Balance sheet: evolution of 2023 cash balance

30

Mara Rosa

2023

Construction capex

121.1

(4)

145

Exploration & Admin

4.0

(17)

FX effect

3.5

260

Aggregates project

2.5

(47)

(10)

226

25

(23)

(18)

(5)

144

89

(131)

Dec-22

Inmaculada

San Jose

Pallancata

Brownfield

Admin

Cash

Taxes paid

C&M/

Net

WK &

Net loans &

Cash

Mara Rosa

Dec-23

exploration

Closure

interest

others

Borrowings

7

Costs

All-in sustaining costs*

($/oz)

HOC operations

(Au Eq)

Inmaculada

(Au Eq)

San Jose

(Ag Eq)

Pallancata

(Ag Eq)

AISC moderately higher than 2022 but lower than 2023 revised guidance:

  • Inmaculada: Higher costs - higher proportion of semi-mechanised mining (vs mechanised) and delay in MEIA approval, partially offset by savings/grades
  • San Jose: Lower vs 2022 & revised guidance - mainly FX partially offset by lower grades
  • Pallancata: Lower vs 2022 - lower capex, exploration expenses & production costs

8

Capital Expenditure

Sustaining and development capex

($m)

HOC operations

137

131-140

129

2022

2023 rev. guidance

2023

Inmaculada

77

87-93

86

2022

2023 rev. guidance

2023

San Jose*

48

42-44

41

2022

2023 rev. guidance

2023

Pallancata**

12

2-3

2

2022

2023 rev. guidance

2023

Project capex

($m)

Mara Rosa***

121

100-110

67

2022

2023 rev. guidance

2023

Capex lower than guidance:

  • Inmaculada: MEIA delay causing delays to mine projects and development
  • San Jose: FX devaluation and sustaining capex savings

Mara Rosa capex higher than guidance:

  • Accelerated construction capex ($121m)
  • Remains on budget with cumulative capex at $189m (as of 31 Dec 2023)
  • On track to meet $200m budget despite recent severe rainy season

*Not included: $3.0m of capitalized depreciation & $3.8m of deferred capital leases (mine equipment)

9

**Not included: $4.1m of work at Royropata

***Not included: $18.7m of capitalised interest; $3.5m of FX variations; and $2.5m of construction aggregates project

Financial flexibility to fund investment and capital returns

• Cash: $89m

Net debt/EBITDA

•

Net debt: $258m

(x)

Investment phase

Return phase

Investment phase

•

Net debt/EBITDA: 0.9x

(Inmaculada)

(Mara Rosa)

2.6x

- Targeting 0.5-1.5x through the cycle

2.5x

0.7x Peer

• Hedge programme to protect cashflows:

median*

1.5x

0.9x

KozAu/yr

Price($/oz)

Yr

Country

0.7x

0.6x

0.3x

0.3x

100

2,000-2,252**

2024

Peru

0.5x

0.1x

(0.1x)

(0.2x)

60

2,000-2,417**

2025

Peru

27.6

2,100

2024

Brazil

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

50

2,117

2025

Brazil

Net Debt / EBITDA

Upper target

Lower target

50

2,167

2026

Brazil

50

2,206

2027

Brazil

  • Aim to distribute value generated from investment cycle
  • Reconsidering capital return following Mara Rosa production start

Dividends paid

($m)

20 20 21 22 22

14

7

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

10

*Peers include Coeur, Buenaventura, Aura, Newgold, Aris Mining, Anglogold, Fortuna, Fresnillo, Pan American, Centamin, Endeavour ** Zero Cost Collars

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Disclaimer

Hochschild Mining plc published this content on 13 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 March 2024 07:17:12 UTC.