Summary of Hochschild Mining's Interim Results Investor Presentation Company Overview - **Company**: Hochschild Mining - **Industry**: Mining, specifically gold and silver production Key Financial Highlights - **Gold Production**: 161,000 ounces in H1 2025, a 6% increase compared to 2024 [2] - **Revenue**: $520 million, higher than 2024 [2][8] - **Adjusted EBITDA**: $225 million, a 27% increase [2] - **Net Profit**: $60.1 million, better than 2024 [8] - **Cash Position**: $110 million as of June 30, 2025 [2][10] - **Net Debt**: $2 million, improved from $216 million in December 2024 [10][15] - **Interim Dividend**: Announced at $5.1 million [2][15] Production and Cost Guidance - **Revised Production Guidance for 2025**: Between 291,000 and 319,000 ounces of gold equivalent [5] - **All-in Sustaining Cash Cost**: Increased to $19.14 per ounce [2] - **Cost Drivers**: Higher production volumes, inflation in Argentina, and increased royalties due to higher gold and silver prices [9][12] Operational Updates - **Maranosa Mine**: Experienced operational challenges due to heavy rains; production guidance reduced to 35,000-45,000 ounces for the full year [26][27] - **Inmaculada Mine**: Produced 106,000 ounces of gold equivalent, on track to meet guidance of 200,000-210,000 ounces [21] - **San Jose Mine**: Continued exploration and production efforts, with a focus on increasing resources [38] ESG Performance - **Safety Metrics**: Frequency rate of 1.08, close to target [5][6] - **Local Workforce**: Increased to 66%, enhancing community job creation [6] - **Environmental Initiatives**: Improved water consumption and waste recycling rates [6][7] Strategic Focus - **Brownfield Strategy**: Focus on extending the life of existing mines and discovering new resources [17][18] - **Community Engagement**: Strong management of community relations, particularly in Peru [48][49] - **Future Projects**: Monte De Carmo and Royal Opata expected to contribute significantly to production from 2028 [41][70] Challenges and Risks - **Operational Issues at Maranosa**: Addressing mechanical problems and production delays [26][27] - **Political Climate in Argentina**: Potential impacts on operations and currency evaluation [38][65] Investment Opportunities - **Valuation**: Company believes it is undervalued compared to peers, presenting a good investment opportunity [40] - **Exploration Investments**: $35 million allocated for exploration in 2024, with similar plans for 2025 [58] Conclusion - **Management's Outlook**: Positive expectations for recovery in Maranosa and continued strong performance in Inmaculada and San Jose [69][70] - **Commitment to Growth**: Focus on organic growth, debt reduction, and shareholder returns through dividends [66]