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RNS Number : 4111U Hochschild Mining PLC 28 June 2024
__________________________________________________________________________
28 June 2024
2023 Report on Payments to Governments
Introduction
This Report provides an overview of the payments to governments made by
Hochschild Mining PLC and its subsidiaries (hereinafter referred to as
"Hochschild Mining") in 2023 as required under the UK's Report on Payments to
Governments Regulations 2014 (as amended) (the "UK Regulations"). The UK
Regulations apply to large UK incorporated companies like Hochschild Mining
PLC that are involved in the exploration, prospection, discovery, development
and extraction of minerals. This Report is also intended to satisfy the
requirements of the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority in the United Kingdom.
Basis for
preparation
Legislation: This Report is prepared in accordance with the UK Regulations.
Reporting entities: This Report includes payments to governments arising
from the activities of Hochschild Mining.
Activities: Payments made by Hochschild Mining to governments arising from
activities involving the exploration, prospection, discovery, development and
extraction of minerals ("extractive activities") are disclosed in this Report.
For a fully integrated project, which does not have an interim contractual cut
off point where a value can be attached or ascribed separately to the
extractive activities and to other processing activities, payments to
governments will not be artificially split but disclosed in full.
Government: Government includes any national, regional or local authority of
a country, and includes a department, agency or entity that is a subsidiary of
a government.
Project: Payments are reported at project level except that payments that
are not attributable to a specific project or are in respect of obligations
imposed at entity level are reported by entity. Project is defined as
operational activities which are governed by a single contract, licence,
lease, concession or similar legal agreement, and form the basis for payment
liabilities with a government. If such agreements are substantially
interconnected, those agreements are to be treated as a single project.
"Substantially interconnected" means forming a set of operationally and
geographically integrated contracts, licences, leases or concessions or
related agreements with substantially similar terms that are signed with a
government giving rise to payment liabilities. Such agreements can be governed
by a single contract, joint venture or other overarching legal agreement.
Indicators of integration include, but are not limited to, geographic
proximity, the use of shared infrastructure and common operational management.
Payment: Of the types of payments required to be reported on under the UK
Regulations, the payments made by Hochschild Mining in 2023 fall within the
following categories:
* Taxes: These are taxes paid by Hochschild Mining on its income, profits or
production (which include resource severance tax), including those settled by
a government on behalf of Hochschild Mining under a tax-paid concession.
Payments are reported net of refunds. Consumption taxes, personal income
taxes, sales taxes, property and environmental taxes are excluded.
* Royalties: These are payments for the rights to extract mineral resources,
typically at set percentage of revenue less any deductions that may be
taken.
* Licence fees, rental fees, entry fees and other considerations for licences
and/or concessions ("Fees"): These are fees and other sums paid as
consideration for acquiring a licence for gaining access to an area where
extractive activities are performed. Administrative government fees that are
not specifically related to the extractive sector, or to access to extractive
resources, are excluded. Also excluded are payments made in return for
services provided by a government.
OTHER
Operatorship: When Hochschild Mining makes a payment directly to a government
arising from a project, regardless of whether Hochschild Mining is the
operator, the full amount paid is disclosed even where Hochschild Mining as
the operator is proportionally reimbursed by its non-operating venture
partners through a partner billing process (cash-call).
Cash and in-kind payments: Payments are reported on a cash basis. There were
no in-kind payments made in respect of the reporting year.
Materiality Level: For each payment type, total payments below £86,000 to a
government are excluded from this Report.
Exchange Rate: Payments made in currencies other than US Dollars are
translated for the purposes of this Report using the exchange rate on the date
of payment.
SUMMARY OF PAYMENTS TO GOVERNMENT (Unaudited) (in USD)
Countries Taxes Royalties Fees Total
Peru 15,752,687 - 762,877 16,515,564
Argentina - 6,308,479 1,202,317 7,510,796
Chile - - 431,498 431,498
Total $15,752,687 $6,308,479 $2,396,692 $24,457,858
1. PAYMENTS BY COUNTRY (Unaudited)
(a) Peru
- By Government Department (in USD)
Taxes Royalties Fees Total
Superintendencia Nacional de Administración Tributaria 15,752,687 - - 15,752,687
Instituto Geológico Minero y Metalúrgico - - 762,877 762,877
Total $15,752,687 - $762,877 $16,515,564
- By Entity/Project (in USD)
Taxes Royalties Fees Total
Entity
Compañía Minera Ares S.A.C. 15,752,687 - 332,315 16,085,002
Project
Inmaculada - - 206,344 206,344
Arcata - - 116,570 116,570
Pallancata - - 107,648 107,648
Total $15,752,687 - $762,877 $16,515,564
(b) Argentina (in relation to the San Jose mine)
- By Government Department (in USD)
Taxes Royalties Fees Total
Consejo Agrario Provincial - - 1,202,317 1,202,317
Administración Federal de Ingresos Públicos - - - -
Rentas Generales de la Provincia de Santa Cruz - 6,308,479 - 6,308,479
Total - $6,308,479 $1,202,317 $7,510,796
- By Entity (in USD)
Taxes Royalties Fees Total
Minera Santa Cruz S.A. - 6,308,479 1,202,317 7,510,796
Total - $6,308,479 $1,202,317 $7,510,796
(c) Chile
- By Government Department (in USD)
Taxes Royalties Fees Total
Tesorería General de la República - - 431,498 431,498
Total - - $431,498 $431,498
- By Entity/Project (in USD)
Taxes Royalties Fees Total
Entity
Andina Minerals Chile Ltd. - - 431,498 431,498
Total - - $431,498 $431,498
Project
Volcan - - 431,498 431,498
Total - - $431,498 $431,498
__________________________________________________________________________
Enquiries:
Hochschild Mining PLC
Raj Bhasin
+44 (0)7825 533495
Company Secretary
Hudson Sandler
Charlie Jack
+44
(0)20 7796 4133
Public Relations
________________________________________________________________________________________
About Hochschild Mining PLC
Hochschild Mining PLC is a leading precious metals company listed on
the London Stock Exchange (HOCM.L / HOC LN) and crosstrades on the OTCQX
Best Market in the U.S. (HCHDF), with a primary focus on the exploration,
mining, processing and sale of silver and gold. Hochschild has over fifty
years' experience in the mining of precious metal epithermal vein deposits and
operates two underground epithermal vein mines: Inmaculada, located in
southern Peru; and San Jose in southern Argentina, and an open pit gold mine,
Mara Rosa, located in the state of Goiás, Brazil. Hochschild also has
numerous long-term projects throughout the Americas.
LEI: 549300JK10TVQ3CCJQ89
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