Hochschild H1 profits take a hit from increased costs

London-based gold and silver miner Hochschild said interim pre-tax profits fell 33.8% to $39.9m (£30.9m) as higher costs hit the bottom line.

Silver production rose 8.9% to 8.9m ounces (oz), with the firm saying it was in line with guidance to deliver 37m ounces of silver equivalent in the year.

Gold production remained relatively flat for the period with 121,000oz of the precious metal produced, a 3% increase on the 118,000oz posted in the first six months of 2016.

Earnings before interest, tax, depreciation and amortisation were $136m, down 20%.

Chief executive Ignacio Bustamante said he was confident the company had "the financial and operational flexibility to meet our upcoming debt commitment, fund an extensive brownfield programme and assess value accretive opportunities as they arise".

Hochschild reported an increase in cash and cash equivalents, up to $144.5m from the $140m it posted in 2016.

Net debt also decreased after an $18.5m payment during the half took the figure down to $164.7m from $187.4m.

Basic earnings per share were 3 cents compared with 5 cents.

As of 0910 BST, shares were down 17.99% to 269.00p.