Hochschild Mining (HOC) Status Update summary

Production and operational performance

• Q4 group production reached over 98,000 gold equivalent ounces, the strongest quarter in five years, with full-year output at 347,374 ounces, in line with guidance, driven by Mara Rosa, San José, and Inmaculada outperformance.

• Inmaculada achieved a full-year output of just over 220,000 ounces, an 8% increase from 2023, while San José delivered 123,730 gold equivalent ounces, slightly above guidance.

• Mara Rosa reached commercial production in Q2, contributing 63,770 ounces in its first full year, below original guidance due to a slower ramp-up, but plant capacity and recoveries are now at design rates.

• Total 2024 attributable production: 245,013 oz gold, 8.5m oz silver; 28.8m silver equivalent ounces.

• 2025 production guidance is 350,000–378,000 gold equivalent ounces, with Mara Rosa targeted for 94,000–104,000 oz.

Financial and cost position

• Ended 2024 with $97 million in cash and net debt reduced to $216 million; net debt-to-EBITDA ratio improved to 0.51.

• New $300 million green loan facility arranged, with only $30 million drawn, providing financial flexibility and including KPIs for sustainability.

• 2024 all-in sustaining costs expected to be 5–10% above guidance, mainly due to Mara Rosa ramp-up delays and high inflation in Argentina.

• 2025 AISC forecast: $1,587–$1,687/oz Au eq; capex budget $169–$180 million, with $10–$15 million carried over from 2024 and $36 million for brownfield exploration.

• Sustaining CAPEX post-2025 expected around $150 million annually.

Cost drivers and efficiency initiatives

• Elevated 2024 costs were driven by unexpected inflation in Argentina and slower-than-expected mine development at Mara Rosa.

• Inmaculada’s costs benefited from strong performance, while San José and Mara Rosa costs were impacted by local inflation and operational delays.

• Efficiency and cost reduction programs are underway, with further initiatives planned as results materialize.

• Exchange rate assumptions for Brazil are conservative; a stronger real could yield up to 10% cost savings at Mara Rosa.

• Inflation in Peru and Brazil is running at 3–5%, while Argentina faces higher inflation and potential devaluation in H2 2025.