Hochschild Mining (HOC) Status Update summary

Production and operational performance

• Q2 2025 production reached 81,656 gold equivalent ounces, with strong output at Immaculada and San Jose after earlier disruptions.

• Immaculada produced over 54,000 ounces in Q2, totaling 106,000 ounces for H1, outperforming expectations due to higher tonnage and grades.

• San Jose’s production rebounded post-seasonal impacts, with 30,000 ounces in Q2 and nearly 53,000 ounces for H1.

• Mara Rosa produced 12,400 ounces in Q2, totaling about 28,500 ounces for H1, but faced operational challenges and a temporary plant suspension for maintenance and filter repairs.

• Achieved H1 2025 attributable production of 115,666 ounces of gold and 3.8 million ounces of silver, with 161,597 gold equivalent ounces produced.

Mara Rosa operational update

• Filtering plant issues at Mara Rosa stemmed from inadequate engineering studies, requiring a thickener to achieve required solids content.

• Thickener installation is expected within 6–9 months, with interim measures to manage tailings and maintain compliance.

• Consultants and technical experts are engaged, with a new management team and filtering manager in place.

• Plant ramp-up will be gradual, with further stoppages possible in H2; full nameplate capacity is targeted after thickener installation in H1 2026.

• Mining at Mara Rosa is progressing well, with contractors achieving improved tonnage and access to higher-grade zones.

Financial and strategic outlook

• Total cash stood at $110 million as of 30 June 2025, up from $97 million at year-end 2024.

• Net debt reduced to $103 million, with a net debt/EBITDA ratio at 0.4x, including recent dividend and buyback payments.

• Net debt/LTM EBITDA ratio was 0.43x, with a $13 million buyback of the Monte do Carmo streaming agreement.

• No changes to dividend policy are expected despite Mara Rosa’s slowdown, as payout ratios are designed to accommodate business fluctuations.

• Thickener CapEx is estimated at $2–6 million, with minimal plant downtime planned for installation.