Download - Hochschild Mining

Hochschild Mining plc
Citigroup Global Metals Conference
March 2007
Our operations and growth opportunities
Country
Exploration
Offices
Argentina
Existing
mining
operations
Ares
Arcata
Chile
Mexico
Selene
Peru
Advanced
Development
Projects
San José
Pallancata
50mm oz Ag eq
target production
Mina Moris
Feasibility
completed
Early stage
development
projects
San Felipe
Azuca San Luís del Cordero El Gachi
Tincos
Pozos
Calderón
La Enramada
El Pino
Moctezuma
Sierr\a Mojina
Ambargasta
Target
definition
Santa
Rita
Puesto Chacon
Incremental
growth
Tignamar
Prospect
Paraíso
El Pocito
Las Tortugas
Prospects
1
Assumes 1 oz Au = 60 oz Ag
Claudia
Quevar
Paracoya
Existing
Operations
Advanced
Development
Projects
Early stage
Development
Projects
Prospects
1
Hochschild: A leading precious metals company
Leading precious
metals producer
Low cash cost
producer
(1st quartile)
Significant growth
opportunities
Corporate social
responsibility track
record
Proven track
record of
production and
reserves
Underground
mining and LatAm
expertise
2
Peru
An overview…
…and our operations and projects
„
„ Arcata (100% owned)
„
„
„
„
„
Dynamic economy with
sustained growth (60 plus
months) and solid economic
indicators
Largest producer of silver
globally
„ Selene (100% owned / 100% operated)
„ 1 mine
„ 1 mine
„ 1 concentrator
„ 1 concentrator
„ Product: silver concentrate
„ Product: silver/gold doré
with gold content
„ Ares (100% owned)
„ Pallancata (60% owned / 100% operated)
Sound fiscal and monetary
policies
„ 1 mine
„ 1 mine
„ 1 processing plant
„ Product: silver/gold doré (to be
Fitch upgraded Perú to BB++
(one notch below investment
grade)
„ Product: silver/gold doré
Stable regulatory framework,
including equal treatment for
national and foreign direct
investment
Arcata
processed at Selene)
„ Commence production Q3 2007
Selene
Ares
Pallancata
Pro free trade and market
liberalisation; Perú-U.S.
„
Challenges: new
government, social unrest
Source: CIA, The World Factbook, Moody’s, UNCTAD
3
Argentina
An overview…
…and our operations and projects
„
Economic recovery underway
„ San José
„
2005 GDP per capita the
highest in Latin America
„
Recent economic policies have
strengthened financial profile
„
9% average real GDP growth
2003-2006
„
Foreign direct investment has
started to return
„
„ 51% owned
„ 100% operated
„ 1 mine
„ 1 concentrator/processing plant
„ Product: silver/gold doré
„ Commence production Q2 2007
San José
Challenges: social unrest,
no local mining expertise
Source: CIA, The World Factbook, Moody’s, UNCTAD
4
Mexico
An overview…
…and our operations and projects
„
„ Mina Moris
„
„
13th largest economy in the
world by GDP
„ San Felipe
„ 70% owned / 100% operated
„ Have option to acquire 70%
2 largest producer of silver
globally
„ 1 mine
„ Product: Polymetalic
Stable macroeconomic
environment with track record
of responsible economic
management
„ 1 processing plant
nd
„
Foreign direct investment
enabling regulatory framework
„
NAFTA and trade integration
among key policies
„
„ 1 concentrator
concentrates
„ Commence production 2009
„ Product: silver/gold doré
„ Commence production Q3
2007
Mina Moris
San Felipe
Challenges: political
instability, drug-trafficking
related violence
Source: CIA, The World Factbook, Moody’s, UNCTAD
5
Hochschild Mining plc
Citigroup Global Metals Conference
March 2007