Hochschild Mining cancels final dividend due to Covid-19

Hochschild Mining said on Tuesday that it is cancelling its final dividend for 2019 "in light of the ongoing uncertainty caused by the Covid-19 outbreak" and resulting temporary suspension of its operations.

"The board believes this is a prudent course of action reflecting the company's focus on the conservation of cash resources," it said. A decision on the dividend will be made once the board has a better understanding of the overall financial impact of outbreak on the business.

Hochschild said the cash and cash equivalent balance at 31 December 2019 was $166m, with net debt of $33m.

Both the Inmaculada and Pallancata mines in Peru remain temporarily suspended following the Peruvian government's recent decision to extend social restrictions until 26 April. In Argentina, while the government has given permission to restart the San Jose mine, Hochschild expects the ramp-up to be phased over a number of weeks given current restrictions on people's movement.