Hochschild Mining (HOC) Status Update summary

Production and operational performance

• Q4 group production exceeded 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 and San José contributions.

• Inmaculada saw an 8% year-on-year production increase, totaling over 220,000 ounces, while San José slightly exceeded guidance with 10.3 million silver equivalent ounces.

• Mara Rosa achieved commercial production, peaking at 9,700 ounces in December, with annual output of 63,770 ounces below original guidance due to a slower ramp-up.

• San Jose mine delivered 123,730 gold equivalent ounces, slightly above guidance, with higher Q4 tonnage and grades.

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

Cost guidance and financial outlook

• All-in sustaining costs for 2024 are expected to be 5–10% higher than prior guidance, mainly due to Mara Rosa ramp-up delays and high inflation in Argentina.

• 2025 production guidance is 350,000–378,000 gold equivalent ounces at all-in sustaining costs of $1,587–$1,687/oz; sustaining and development CAPEX is set at $169–$180 million, with a $36 million exploration budget.

• Around $10–15 million of 2025 CAPEX is carryover from 2024, mainly for Inmaculada’s tailings dam and water treatment projects.

• Sustaining CAPEX post-2025 is expected to be around $150 million annually, with fluctuations depending on tailings dam expansions.

• Ended 2024 with $97 million in cash and net debt reduced to $216 million; Net Debt/LTM EBITDA improved to 0.51x; new $300 million green loan facility arranged for debt restructuring and flexibility.

Cost drivers and inflation

• Cost increases in San José are driven by Argentine inflation and currency devaluation timing, while Inmaculada faces 3–5% inflation, partly due to social agreements and high metal prices.

• Efforts are underway to improve efficiency and reduce costs, but inflationary pressures may persist if metal prices remain high.

• Mara Rosa’s costs are influenced by conservative exchange rate assumptions; a stronger Brazilian real could yield up to 10% cost savings.