Hochschild Mining on track for 2019; cuts Pallancata forecasts

Hochschild Mining said it was “firmly” on track to meet 2019 output guidance, but cut 2020 production forecasts for its Pallancata operation due to permit issues.

The company on Friday said it expected to produce 457,000 gold equivalent ounces or 37m silver equivalent ounces for the year.

It also issued guidance for 2020, with an overall attributable production target of 432,000 gold equivalent ounces or 35m silver equivalent ounces.

The Peruvian Pallancata project was expected to produce 7m silver equivalent ounces. Chief executive Ignacio Bustamante said projections had been lowered “to give our brownfield exploration team more time to deliver additional resources”.

“However, we remain excited by the geological potential surrounding all our operations. Finally, costs are expected to rise moderately due to a one-off $22m project to increase tailings capacity at Inmaculada and the reduced production at Pallancata."

Hochschild added that it anticipated record output from the Inmaculada mine in Peru of around 257,000 gold equivalent ounces and “solid” production of 14m silver equivalent ounces expected from the 51% owned San Jose mine in Argentina.