Hochschild says full year is still on track despite production fall

LATIN American precious metal producer Hochschild Mining said output fell 13 per cent in the first half, as expected, and that it was on track to meet its full-year target.

It produced 11.1m silver equivalent ounces in the first half due to lower grades at the company’s two main Peruvian operations, declining output from its two ageing Ares and Moris mines, and industrial action at its San Jose mine.

Hochschild said the expected closure dates for Ares and Moris will be delayed as a result of higher precious metal prices. The average price received for its silver more than doubled in the first half to $36.46 an ounce while its gold price jumped 26 percent to $1,466 an ounce. Prices for both metals have continued to rise this quarter with gold near record highs.