Hochschild on track to meet 2013 target for silver output

 
Suzie Neuwirth
FTSE 250-listed precious metals explorer Hochschild Mining yesterday reported third-quarter silver production that marginally beat analysts’ forecasts and said it is on track to meet its full-year silver target.

The miner produced 5.4m ounces of silver in the three months to 30 September and said yesterday that it expects to produce 20m ounces of silver this year.

“This is slightly better than forecast in terms of production and cost guidance is unchanged,” said Nick Hatch, analyst at Westhouse.

Hochschild added it has raised $72.8m (£45.4m) via an equity placing and arranged a $340m bridge loan, part of which will be used to fund the previously announced acquisition of the Pallancata mine and Inmaculada project in Peru.

“I am pleased to report that Hochschild has enjoyed another solid quarter and is very much on track to meet our full year production target,” said chief executive Ignacio Bustamante. “In addition, Hochschild’s cashflow optimisation programme continues apace and I am confident that we will be able to demonstrate significant savings at our full year results early in 2014.”

Shares closed down 1.57 per cent.