TORONTO (miningweekly.com) – Latin America-focused precious metals producer Hochschild Mining has downgraded the role of its chairperson and also announced cuts to its board’s pay packages.
Hochschild on Wednesday announced the changes as part of its ongoing review of the board structure and its cost-cutting programme.
Executive chairperson Eduardo Hochschild would become nonexecutive chairperson effective from January 1.
Effective on the same date, the fees of nonexecutive directors would be further cut by about 30%, while deputy chairperson Roberto Dañino had waived the fee payable to him as special adviser to the group.
“Since the company's IPO [initial public offering] in June 2006, we have sought to establish a board structure in keeping with those of premium listed companies in London and my decision to assume a nonexecutive role represents a clear and continued commitment to our ethos of strong corporate governance,” Hochschild said.
He added that given the current weak precious metals environment, the board wished to demonstrate its support for the ongoing cost-saving measures and the collective efforts of its employees by implementing the further reductions in board remuneration.
As part of its ongoing cash flow optimisation programme, Hochschild last month announced cost efficiencies aimed at reducing operating expenditure and to ensure that the company’s mines could deliver profitable ounces in 2015.
The group outlined optimised mine plans for the Arcata and Pallancata operations, in Peru, narrowing operational focus to accessible ore areas requiring reduced capital expenditure and with cutoff grades reflecting the current weaker metals price environment.