1H19

• Silver grade of 187 g/t.

• Infill drilling programme advanced – update with full year results.

• Development rate improved in 2Q19, further improvements expected by year end.

• Efficiencies targeted in mining process.

• Shift optimisation.

• Deepening the San Carlos shaft continued.
  
  

3Q19

• Silver production was broadly stable vs. 2Q19. The investments in technology and systems made during the year are starting to have a positive impact on the volumes of ore processed, while as expected, ore grade continues to be variable as the other initatives, including the infill drilling programme, sampling, actions to reduce dilution and actions to increase development rates, start to have a positive impact.

• Quarterly and YTD silver production decreased 9.0% and 17.3% vs. 3Q18 and YTD18 due to the lower silver ore grade resulting from the differences with the geological model, higher dilution in narrower veins and limited access to higher grade areas caused by delays in development.

• MIne performance improvement remains a key priority. The infill drilling programme continues to progress well and is expected to result in an updated and more accurate geological model. We expect better dilution control with the use of a more efficient and accurate topographic scanner and improved blasting patterns and drilling techniques to adjust for the narrower vein widths.

• Development rates averaged 3,200 metres per month in 3Q19 with the tunnel boring machine due to begin operating in 4Q19.

• Quarterly by-product gold production increased against all comparable periods as a result of higher ore grades.
  

• Silver ore grade in 2019 is expected to remain between 190-200 g/t, while gold, lead and zinc ore grades are estimated to marginally increase to levels of 0.90 g/t, 0.95% and 1.60% respectively.
  
  

2H19 Priorities