Hochschild Mining to restart Pallancata mining on Wednesday

Hochschild Mining has reached an agreement with a local community at its Pallancata mine in Peru to allow the silver and gold mine to reopen this week.

Production at Pallancata has been on pause since November due to ongoing discussions with the local community

On Monday, the FTSE 250-listed company said 2017 production forecast for Pallancata of 6m silver equivalent ounces and associated all-in sustaining cost guidance was not affected.

Last week Hochschild has guided for group production of 37m oz silver equivalent at a higher AISC of $12.2-12.7 per oz because of increased exploration and one-off investment to develop the Pablo vein at Pallancata.

The group celebrated record annual attributable production for the full-year 2016 of 35.5m oz, slightly higher than guidance.

Financially, Hochschild reported having circa US$140m of cash and $183m of net debt.