Hochschild Mining (HOC) Status Update summary

Q1 production and operational performance

• Q1 2025 attributable production reached 58,021 ounces of gold and 1.8 million ounces of silver, totaling 79,941 gold equivalent ounces and 6.6 million silver equivalent ounces, with output lower than Q4 due to heavy rains and holidays.

• Inmaculada delivered a solid start with 34,780 ounces of gold and 1.4 million ounces of silver, totaling 52,000 gold equivalent ounces, aligning with annual targets.

• San José processed higher tonnage but lower grades, producing 0.7 million ounces of silver and 14,157 ounces of gold, with output impacted by a scheduled holiday but expected to increase for the rest of the year.

• Mara Rosa's Q1 output was 16,059 ounces of gold, affected by heavy rains, contractor issues, and labor shortages; recovery measures are underway.

• Full-year production guidance is maintained at 350,000–378,000 gold equivalent ounces with all-in sustaining costs of $1,587–$1,687 per ounce.

Response to operational challenges and outlook

• Waste removal fleet at Mara Rosa was doubled to 3 million tons per month with new contractor-supplied equipment, aiming to accelerate mine access.

• Q2 production at Mara Rosa is expected to be similar to Q1, with a strong recovery anticipated in H2 as waste removal improves and higher-grade ore becomes accessible.

• Annual production and cost guidance remain unchanged, with an update planned at the half-year results.

• Inmaculada is expected to produce around 200,000 ounces for the year, with stable grades and slightly higher throughput than last year.

• Easing of exchange controls and currency weakness in Argentina expected to improve San José's cost position long-term.

Financial position and cost efficiency

• Total cash stood at $83 million as of 31 March 2025, with net debt at $248 million and a net debt/EBITDA ratio of 0.6.

• Negative cash movements in Q1 were due to bonuses, community agreements, deferred payables, and inventory changes, but cash is expected to recover in coming quarters.

• Cost efficiency initiatives are progressing, including AI-driven supply chain mapping and operational improvements, with more details expected in H2.

• Stronger deleveraging is anticipated in H2 as cash generation improves and temporary Q1 outflows subside.