Hochschild Mining Plc

Hochschild Mining Plc is a mid-tier gold and silver producer headquartered in London, United Kingdom, operating primarily in South America. The company's portfolio consists of 6 projects, comprising 3 operating mines, 1 development, and 2 exploration projects, in addition to several early-stage exploration prospects. Key assets include Inmaculada. The company's business model is built on over 60 years of specialized experience in mining epithermal vein deposits. The organization operates as a fully integrated precious metals entity, managing the entire value chain from exploration and development through to mining, processing, and sales. It operates both underground and open-pit mines, applying its technical expertise across different geological environments. A core component of its investor communication is the use of non-IFRS financial performance measures, which management believes provides an improved ability to evaluate the underlying performance of the business. The enterprise is committed to a responsible and innovative approach, which is applied to community and employee relations as well as to operational performance and safety. This approach is underpinned by a business model that includes 4 distinct stages: discover, develop, extract, and restore, ensuring a long-term and sustainable operational perspective. The company's competitive advantage is rooted in its extensive knowledge of operating in remote locations and its ability to progress projects efficiently from discovery to production.

The corporate strategy is structured around 4 key pillars: brownfield exploration, operational efficiency, ESG, and disciplined capital allocation. Brownfield exploration focuses on extending the life of existing operations by adding low-cost, high-grade resources and generating long-term value. Operational efficiency is pursued through the implementation of a lean philosophy and process optimization initiatives aimed at increasing tonnage and minimizing the impact of cost inflation. The ESG pillar is central to the strategy, with established 2030 key performance indicators and a commitment to achieving Net Zero emissions by 2050. Disciplined capital allocation prioritizes funding organic growth, debt repayment, and providing capital returns to shareholders through a predictable dividend policy and potential share buybacks. The organization also pursues value-accretive M&A to enhance its project pipeline and growth profile, as demonstrated by the acquisition of a new development project in 2024. The overarching goal is to deliver long-term growth in production from 2028 onwards through the advancement of its key development projects.

Executive leadership underwent a significant transition in August 2023 with the promotion of Eduardo Landin to Chief Executive Officer, following his tenure of over 10 years as Chief Operating Officer. The board of directors is composed of 8 members, including the Chair, CEO, and 6 non-executive directors, 5 of whom are considered independent. Governance is structured through 4 primary committees: Audit, Nomination, Remuneration, and Sustainability. A Senior Independent Director acts as a conduit between the non-executive directors and the executive team. In 2024, the board commissioned an externally-facilitated Board Effectiveness review conducted by Lintstock Limited to ensure continuous improvement. A key governance feature is the relationship agreement with the company's significant shareholder, which contains undertakings to ensure the business is managed for the benefit of all shareholders and that transactions are conducted on an arm's length basis. The board also has established procedures for managing conflicts of interest and receives regular briefings on corporate law and governance developments.

The organization's sustainability approach is guided by 16 ESG KPIs with defined 2030 ambitions. A key achievement in safety is the DNV level 8 certification for risk management information systems, a first for a mining company, supported by the "Safety 2.0" cultural transformation plan. Environmental performance is quantified through a unique, internally-designed "ECO Score," which contributed to the company receiving a 2024 SEAL Business Sustainability Award. The company achieved an all-time low in potable water consumption in 2024, reducing it by 66% since 2015. Climate action is a priority, with a commitment to Net Zero emissions by 2050 and a 30% reduction in Scope 1 and 2 emissions by 2030. Community engagement initiatives include the "Future Women Scholarship" to enhance female employability in technical roles and the "Mining Partner Programme" for local career development. The company also partners with ELSA (Harassment-Free Workplaces) to prevent workplace harassment. A 2024 materiality assessment update incorporated biodiversity and ecosystem services as a new critical topic.

In 2024, the company exercised an option to acquire the Monte Do Carmo project from Cerrado Gold Inc. for a total consideration of $60 million, strengthening its development pipeline. This followed the 2022 acquisition of Amarillo Gold, which marked the company's first major strategic move into a new operational region. The corporate structure includes a significant joint venture with McEwen Mining Inc., which operates the Minera Santa Cruz S.A. entity, where the company holds a 51% controlling interest and acts as the operator. A key element of the ownership structure is the significant shareholding of approximately 38% held by Pelham Investment Corporation, an entity controlled by the company's Chair. As part of its portfolio optimization, the company entered into an agreement in 2024 to divest its non-core Arcata and Azuca assets, a transaction that was completed in early 2025. The company also holds a 19.5% interest in Aclara Resources Inc., a publicly traded company focused on rare-earth metals development.