reviewing mine plans and entering into forward 
gold sale contracts.
Changes in the gold and silver price also impact 
assessments of the feasibility of exploration and 
the Group’s two development projects, Nueva 
Esperanza and Bowdens.
Mineral reserves and resources
Ore reserves and mineral resources are esti-
mates. These estimates are substantially based 
on interpretations of geological data obtained 
from drill holes and other sampling techniques. 
Actual mineralisation or geological conditions 
may be different from those predicted and, as a 
consequence, there is a risk that any part or all 
of mineral resources will not be converted into 
reserves.
Market price fluctuations of gold and silver, as 
well as increased production and capital costs, 
may render ore reserves unprofitable to develop 
at a particular site for periods of time. 
Replacement of depleted reserves
The Group aims to continually replace reserves 
depleted by production to maintain production 
levels over the long term. Reserves can be 
replaced by expanding known ore bodies, 
locating new deposits or making acquisitions.
As a result, there is a risk that depletion of 
reserves will not be offset by discoveries or 
acquisitions. The mineral base may decline if 
reserves are mined without adequate replace-
ment and as a consequence the Group may not 
be able to sustain production beyond the 
current mine lives, based on current production 
rates.
Mining risks and insurance risks
The mining industry is subject to significant 
risks and hazards, including environmental 
hazards, industrial accidents, unusual or unex-
pected geological conditions, unavailability of 
materials and unplanned equipment failures. 
These risks and hazards could result in signifi-
cant costs or delays that could have a material 
adverse impact on the Group’s financial perfor-
mance and position. 
The Group maintains insurance to cover some of 
these risks and hazards at levels that are 
believed to be appropriate for the circumstances 
surrounding each identified risk, however there 
remains the possibility that the level of insur-
ance may not provide sufficient coverage for 
losses related to specific loss events.
continued
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