Hochschild Mining : 2022 Annual Report and Accounts

Responsible development

in the Americas

Hochschild Mining PLC

Annual Report & Accounts 2022

2022 Highlights

5.27	US$175m
ECO SCORE	NET CASH/(DEBT)
2021: 5.29	2021: (US$86m)
1.37	US$18.9/oz Ag Eq
LTIFR	AISC
2021: 1.26	2021: $16.0/oz Ag Eq
US$249m	206,013oz
ADJUSTED EBITDA	ATTRIB. GOLD PRODUCTION
2021: US$382m	2021: 221,419oz
US$0.01	11.0m oz
ADJUSTED BASIC EPS	ATTRIB. SILVER PRODUCTION
2021: US$0.14	2021: 12.2m oz

Strategic Report

At a Glance	2
Key highlights	4
Delivering long-term growth	6
Market review	10
Chairman's statement	14
Chief Executive Officer's review	18
Business model	22
Our strategy	24
Key Performance Indicators	26
Operating review	28
Financial review	36
Stakeholder engagement	45
Sustainability report	50
Task force on climate-related
financial disclosures (TCFD)	68
Risk management	76
Viability statement	84

Governance

Board of Directors	86
Senior management	88
Directors' Report	89
Corporate Governance Report	91
Supplementary information	108
Directors' Remuneration Report	112
Statement of Directors'
responsibilities	132

Financial Statements

Independent Auditor's Report	133
Consolidated income statement	141
Consolidated statement
of comprehensive income	141
Consolidated statement of
financial position	142
Consolidated statement of cash flows	143
Consolidated statement
of changes in equity	144
Notes to the consolidated
financial statements	145
Parent company statement
of financial position	193
Parent company statement
of cash flows	194
Parent company statement
of changes in equity	195
Notes to the parent company
financial statements	196

Further Information

Profit by operation	206
Reserves and resources	207
Shareholder information	210
Forward looking statements	211

Strategic Report		Governance		Financial Statements		Further Information

Responsible development

in the Americas

Hochschild is focused on responsible development at all our mines and projects across the Americas. We always prioritise value creation for our every stakeholder and a key part of the Company's ethos has been strong relationships with our communities throughout the mining life cycle.

Furthermore, our cultural attributes reflect

our purpose and guide our day-to-day conduct, providing the foundation of our culture and what it means to work at Hochschild. The cornerstone of our corporate purpose is our collective sense of responsibility.

1 | Hochschild Mining PLC Annual Report & Accounts 2022

AT A GLANCE

Who we are and where we operate

We are a leading underground precious metals company, focusing on the exploration, mining, processing and sale of gold and silver in the Americas.

Where we operate

Mining operations

Hochschild operates three underground epithermal deposits, two of which are located in the south-west of Peru and one in the southern Argentinian province of Santa Cruz.

Operation

Inmaculada (Peru)

Pallancata (Peru)

San Jose (Argentina)

Project pipeline

Hochschild currently has a number of projects in Peru and Chile. These include an Advanced Project, former operations that still have strong geological potential through to our early stage opportunities and regional targets close to our current mines.

Advanced Project

Mara Rosa (Brazil)

Development Projects

Volcan (Chile)

Exploration Projects

Ares (Peru)

Arcata (Peru)

Azuca (Peru)

Crespo (Peru)

4

8		9	5
2
1	7		6

3

2 | Hochschild Mining PLC Annual Report & Accounts 2022

Strategic Report		Governance		Financial Statements		Further Information

11.0m oz

SILVER PRODUCTION IN 2022

206k oz

GOLD PRODUCTION IN 2022

Peru	Brazil	Argentina
4,950 employees (incl. contractors)	1,383 employees (incl. contractors)	1,745 employees (incl. contractors)
$76.5m wages paid	$0.9m wages paid	$67.6m wages paid
$19.7m taxes and royalties	$21.2m local procurement spend	$0.7m taxes and royalties
$46.9m local procurement spend		$51.3m local procurement spend

3 | Hochschild Mining PLC Annual Report & Accounts 2022