Financial highlights
Revenue of $622.2 million (2012: $818.0 million)
Adjusted EBITDA of $195.5 million (2012: $384.8 million)
EPS of $(0.15) (2012: $0.19)
Cash balance of $291.0 million & short term borrowings reduced to $17.8 million
Full year dividend suspended
Minority investments valued at $52.4 million
Cashflow optimisation programme already delivered $145 million of savings:
o Production costs reduced by $48 million versus initial guidance
o Administration costs reduced by $19 million versus 2012
o Sustaining capital expenditure reduced by $33 million versus initial guidance
o Exploration costs reduced by $25 million versus initial guidance
Acquisition & Refinancing highlights
Key acquisition of Pallancata and Inmaculada minorities completed
o Consolidates minority shareholding in assets already controlled and operated by Hochschild
o Inmaculada set to reduce average unit cost
Refinancing completed in January 2014
o 7.75% $350 million Senior Notes issued due 2021
Operational highlights
Full year production of 20.5 million attrib. silver equivalent ounces achieved, exceeding 20.0 million target
Main operation all-in sustaining costs lowered by 14% to $18.6 per ounce;
Inmaculada project set to begin commissioning in Q4 2014
o Plant construction on track with all key equipment delivered
o Mine development, infrastructure, energy and engineering targets significantly developed
Resource life-of-mine increased to 10.0 years
2014 Outlook
2014 production target set at 21.0 million attributable silver equivalent ounces
2.0 million silver ounces sold forward for 2014 at $22 per ounce; 33,000 gold ounces sold forward for 2014 at $1,338 per ounce
0-5% reduction in all-in sustaining costs expected for 2014
Sustaining capital expenditure expected to be $130 million
Exploration and geology budget set at approximately $30 million
