Hochschild falls as miner sees lower 2019 output from its gold and silver mines

Investors were spooked today despite Hochschild posting record production last year, as the miner warned output would fall in 2019.

Shares closed down five per cent at 164.35p as the company said gold output, at 72,222 ounces was over 2,000 lower in the fourth quarter than the preceding three months.

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The figure was also a reduction from 82,790 ounces year-on-year, while silver output was down 300,000 ounces from the final quarter of 2017, to 5.8m.

The company produced 260,000 ounces of gold and 19.7m of silver in 2018, beating previous records.

Production at its Inmaculada mine reaches a record 251,000 ounces, up by over 10,000 from the year before. Meanwhile its Pallancata mine increased silver output by 22 per cent.

Chief executive Ignacio Bustamante said: “Hochschild has delivered a production increase in 2018 with output growing for the sixth consecutive year, again driven by a record performance from our Inmaculada mine and increased output from Pallancata.

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The company is also planning to drill brownfield developments at the Inmaculada and San Jose areas in the first quarter and Pallancata towards the end of the year, once authorities have signed off on the projects.

“We can look forward to an exciting 2019 programme which has good potential to add significant low cost ounces to our resource base,” Bustamante said.