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Further details on the Group's activities to mitigate sustainability risks can be found in the Sustainability Report from page 41.
(1) The account receivable relates to reimbursement of expenses paid by the Group on behalf of Cementos Pacasmayo S.A.A. 2019 Annual Financial Report and 2020 Annual General Meeting ("AGM") Following the release of the 2019 full year results announcement on 19 February 2020 (the "Preliminary Announcement"), Hochschild Mining PLC (the "Company") announces the publication of its Annual Report and Accounts for the year ended 31 December 2019 (the "2019 Annual Report"). It is expected, however, that in order to support the fragile Argentinian economy, new taxes may be under consideration by the Government. Overall in the first nine months of the year, Pallancata has delivered 7.4 million silver equivalent ounces (Q3 2018 YTD: 6.9 million ounces)The San Jose mine again delivered a good quarter with tonnage in line with expectations and slightly better than forecast gold and silver recoveries resulting in production of 1.9 million ounces of silver and 27,704 ounces of gold which makes 4.2 million silver equivalent ounces. ________________________________________________________________________________________________ In addition, a three-year Leadership programme has been implemented at all levels of the organisation. Management continued the implementation of the Safety Culture Transformation Plan to reinforce the Group's commitment to safety. - Training, covering induction of new personnel and improvements in operational practices throughout the mining and exploration process Insolvency of a customer or other business counterparty (bank, insurance company, contractor, etc.) These actions may result in loss of production, increased costs and decreased revenues, longer lead times, additional costs for exploration and have an adverse impact on the Group's ability to obtain the relevant permits.The Group has a dedicated team responsible for Community RelationsConstructive engagement with local communities based on several years of positive relations. Where possible, workers were redeployed, and the redundancy process was completed in collaboration with the relevant unions and without disruption to the Group's other operations. Assets used in the Group's operations may cease to function or the supply of electricity may be interrupted (e.g. All page references and cross-references in the appendices are to the 2019 Annual Report. During Q4, the programme will focus on extensions to San Jose structures including the Tonio target from Goldspot technology, the extension of Cerro Negro structures (Telken) into the San Jose property to the south and further work on Aguas Vivas.At Corina, drilling in Q3 has confirmed promising mineralisation within two sub-parallel structures, Corina and Micky. Retention plans for senior executives in the form of the Company's Long-Term Incentive Plan and Restricted Share Plan are also in place.Failure to maintain good labour relations with workers and/or unions may result in work slowdown, stoppage or strike.Development of a tailored labour relations strategy focusing on profit sharing, working conditions, management style, development opportunities, motivation and communicationMonthly meetings with mineworkers and unions to ensure a complete understanding of expectations and to keep all parties updated on the Group's financial performanceGiven the level of investment at the Inmaculada mine, the Group's Peruvian operation does not generate taxable income and therefore there is no entitlement to statutory profit sharing for Peruvian mineworkers. Training and implementation has been scheduled for 2019.Failure of any of the Group's business critical information systems as a result of unauthorised access by third parties, may affect the Group's ability to operate.Compliance with ISO 27001, an internationally recognised certification to evaluate information security management systems.Dedicated team within the IT department focused on preventing cyber-attacks.Audits performed by the internal audit department and third parties to test systems and issue recommendations.During the year a third-party review by a major audit firm was commissioned to identify areas of vulnerability and to produce recommendations.
In 2019 this was achieved by: 2019 was a record breaking year in terms of safety performance with the Company meeting its ongoing objective of Zero Fatalities and key indicators demonstrating year-on-year reductions of 40% and 94% in accident frequency and accident severity respectively. - A High Potential Events Committee, led by the CEO, was established to investigate such cases and issue reports on lessons learned; and In preparing those financial statements, the Directors are required to: Greenfield exploration in 2019 was driven by a number of earn-in/joint venture opportunities being secured. - Community Relations strategy focuses on promoting education, health and nutrition, and sustainable development. These evaluations incorporated analysis of corporate governance, balance sheet strength and other aspects of credit quality. Pallancata produced 1.9 million ounces of silver and 6,912 ounces of gold bringing the silver equivalent total to 2.5 million ounces in Q3 with tonnage and grades in line with the previous quarter. In Peru, protests relating to the Las Bambas and Tia Maria projects have increased social demands and expectations, and have led to wider social unrest. As a result, a revision of terms of sale to mitigate the Group's exposure has been implemented, emphasising prepayments before a sale is completedReview of financial counterparties: the Group has implemented policies to identifying suitable financial counterparties to support the Group's treasury and insurance needs. As a 2019 Audit Committee objective, see page 69 for more information