Hochschild maintains guidance after solid first quarter

Precious metals producer Hochschild Mining says it is on track to deliver its 2012 full-year production target after a 'solid start to the year'.

The company deliver attributable production of 5.1m silver equivalent ounces in the three months to March 31st, which is comprised of 3.4m ounces of silver and 28.3 thousand ounces of gold.

Meanwhile, average realisable precious metal prices in the first quarter were $1,782.1/ounce for gold and $36.9/ounce for silver, compared with $1,391.4/ounces and $36.2/ounce, respectively.

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"We have once again delivered a solid start to the year and we are on track to meet our 2012 production target of 20.0 million silver equivalent ounces," said Chief Executive Officer Ignacio Bustamante.

"We continued to manage extraction grades during the quarter in order to maintain sustainable long-term production levels, whilst our extensive brownfield exploration programme to incorporate further resources and discover new high grade areas saw good progress."

By March 31st, the group had $590m of cash, down from the year-end cash balance of $627.5m.

BC