Hochschild plans London IPO

HOCHSCHILD Mining Ltd, a privatelyowned silver- and gold-producing company which has operated in South America for over 40 years, is planning an initial public offering on the main market of the London Stock Exchange, of an as yet undisclosed size.

In 2005, the company produced about 10.5 Moz of silver – making it the world's fourth-largest primary silver producer – and 232,000 oz of gold, at cash operating costs on a coproduct basis of US$2.60/oz of silver and US$170/oz gold.

Hochschild currently operates three epithermal-vein mines in southern Peru, Arcata, Ares and Selene.

The company also has two latestage development projects, and two earlier-stage developments, variously located in Argentina, Mexico and Peru, and numerous other targets in South America.

Eduardo Hochschild, executive chairman of the company, commented: “By listing on the London Stock Exchange, we seek to finance our Latin American growth strategy. We have a strong project pipeline, and also plan to maximise the potential of our existing operations.”

JP Morgan Cazenove and Goldman Sachs have been appointed sponsors, global co-ordinators and bookrunners for the IPO.