Hochschild Mining's gold, silver production rises, on track to meet 2017 targets

Hochschild Mining’s silver and gold production increased in the first quarter as the miner remained on track to meet its 2017 targets.

Attributable production increased in the first three months of the year, with silver production rising to 4.11m ounces (oz) from 3.66m for the same period last year, and silver equivalent increased to 8.59m oz from 7.44 koz

While gold rose to 60.62 koz from 51.08 koz and gold equivalent increased to 116.20 koz from 100.56 koz.

The FTSE 250 company said this was achieved despite stoppages at the Pallancata and Inmaculada mines in Peru.

Operations were halted in order to carry out an investigation after two workers died when a tunnel caved in at Inmaculada in January.

Hochschild maintained that is on track to deliver its overall production target for 2017 of 37m silver equivalent oz or 500 koz of gold equivalent, as well as a cost per silver equivalent ounce forecast of between $12.2 and $12.7.

Chief executive Ignacio Bustamante said: “I am pleased to report that we have delivered another solid operational period and remain on track to meet our 2017 output and cost targets.

“In addition, our new Pablo vein is showing better than expected grades, whilst the company's 2017 brownfield exploration programme is underway with some encouraging results achieved so far at San Jose."

Shares in Hochschild Mining were up 0.31% 260.60p at 0905 BST.