IMZ Direct Site Costs per oz silver (after gold by-product credit)3 ($/oz)
$ 2.40
$ 3.09
$ 2.48
$ 3.73
IMZ Total Cash Costs per oz silver (after gold by-product credit)4 ($/oz)
$ 5.47
$ 5.83
$ 5.32
$ 6.20
Table 2: Pallancata Mine Production Highlights (IMZ 40% Share)
IMZ's 40% Share
Calendar Q2 Ended 6/30/10
Calendar Q1 Ended 3/31/10
IMZ Fiscal Year 2010 Ended 6/30/10
Calendar Q2 Ended 6/30/09
Silver produced2 (oz)
1,011,200
933,400
4,040,000
753,000
Gold produced2 (oz)
3,728
3,288
14,962
2,868
Silver sold (oz)
1,068,764
853,366
3,904,796
821,500
Gold sold (oz)
3,992
2,786
14,113
2,944
Notes to Tables 1 and 2:
1. Head grades for silver and gold are based on the overall metallurgical balance for the process plant. 2. Difference between 'produced? metal ounces and 'sold? metal ounces is a combination of the smelter metal payability factors and in-process concentrate. Silver production figures are rounded to hundreds of ounces. 3. Direct Site Costs per ounce silver and Total Cash Costs per ounce silver reflect a 'mined ore inventory adjustment?. IMZ believes that this calculation more accurately matches costs with ounces of production. (Also see notes 4 and 5 below.) 4. Direct Site Costs per ounce silver comprise direct mining, mined ore inventory adjustment, toll processing and mine general and administrative costs (net of gold by-product credit). 5. Total Cash Costs, using the Gold Institute′s definition, comprise: mine operating costs, mined ore inventory adjustment, toll processing costs, mine general and administrative costs, Hochschild′s management fee, concentrate transportation and smelting costs, local and provincial taxes (other than federal income tax) and the Peruvian government royalty.
The technical information reported in this news release was reviewed by IMZ′s Qualified Person, VP of Corporate Development, Nick Appleyard.
Hochschild Mining plc does not accept any responsibility for the adequacy or inadequacy of the disclosure made in this news release and any such responsibility is hereby disclaimed in all respects.
Cautionary Statement:
The Gold Institute calculation of Direct Site Costs and Total Cash Costs are non-Canadian GAAP financial measures, which IMZ management believes are useful in measuring operational performance, and also any forward-oriented financial information provided may not be appropriate in relation to Canadian GAAP reporting, which should be referred to in the Company′s financial reporting. Some of the statements contained in this release are 'forward-looking statements? within the meaning of Canadian securities law requirements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements in this release include statements regarding estimates of production, total cash costs, mine life, resources, cash flow, capital costs and dividends. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties such as: risks in attaining ramped-up production and processing rates, risks of cost escalation, risks of estimating mineral resources and reserves, variances between mineral reserves and actual mineral production and other risks and uncertainties detailed in the Company′s Renewal Annual Information Form for the year ended June 30, 2009, which is available at under the Company′s name. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
