Hochschild Mining revises 2013 exploration budget down by 29 per cent

FTSE 250-listed mining company Hochschild Mining has revised its expected 2013 exploration budget down by 29 per cent to 55m dollars following a review of the company's discretionary elements.

FTSE 250-listed mining company Hochschild Mining has revised its expected 2013 exploration budget down by 29 per cent to 55m dollars following a review of the company's discretionary elements.

In an update issued on Tuesday, the company reported that temporary reductions in the greenfield programme would represent 53% of the overall reduced figure.

In addition, brownfield exploration programmes at the company's main operations were expected to focus on the development of potential resources as opposed to further resource life-of-mine increases.

The company said that the 2013 production target had been maintained at 20m attributable silver equivalent ounces. Unit cost increases in Peru were now expected to be at 10-15% for 2013 and unit cost increases in Argentina were to be maintained at 10-15% for 2013.

Sustaining capital expenditure at main operations was expected to be approximately $160m.

Hochschild said that it had also made progress with regard to its operating cost base and had identified key savings following ongoing negotiations with equipment and material suppliers as well as changes to the mine development budget, which it said was expected to materially impact both the unit cost per tonne at the main operations as well as the forecast level of sustaining capital expenditure.

Ignacio Bustamante, Chief Executive Officer of Hochschild Mining, said: "The company has moved swiftly to implement plans that were put in place as part of our ongoing review of market conditions and has already begun to deliver significant savings without impacting our overall long term exploration-led strategy."

MF

Recommended

Has the “jam tomorrow” bubble popped already?
Stockmarkets

Has the “jam tomorrow” bubble popped already?

Fund managers have had a good year so far. John Stepek looks at what to expect from markets until year end.
6 Dec 2021
Three stocks that should profit from the dash for digital growth
Share tips

Three stocks that should profit from the dash for digital growth

Professional investor Christopher Versace of the Digital Infrastructure and Connectivity UCITS ETF picks three digital growth stocks to buy now.
6 Dec 2021
JD Wetherspoon: why investors should head to the pub
Trading

JD Wetherspoon: why investors should head to the pub

Pub group JD Wetherspoon is a solid operator, and is due a bounce when the pandemic eases. Matthew Partridge picks the best way to play it.
6 Dec 2021
Share tips of the week – 3 December
Share tips

Share tips of the week – 3 December

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
3 Dec 2021

Most Popular

Bubbles grow in global property markets as house prices continue to rise
Property

Bubbles grow in global property markets as house prices continue to rise

House prices grew by 6% in the year to mid-2021 in 25 global cities, with the German property market in particular showing signs of overheating.
3 Dec 2021
Investing in time
Sponsored

Investing in time

SPONSORED CONTENT – Watch collecting can be addictive and expensive, but it can also be a very sound investment strategy
3 Dec 2021
Three safe bets on the growing online gambling sector
Share tips

Three safe bets on the growing online gambling sector

Professional investor Aaron Fischer, creator of the Fischer Sports Betting and iGaming ETF, picks three of his favourite online gambling stocks.
29 Nov 2021