Hochschild Mining 'on track' for full-year targets

Hochschild Mining, the South America-focused precious metals producer says it is on track to achieve its full-year production targets.

The company has five main operations: three in Peru; one in Argentina; and one in Mexico.

In the second quarter of 2012, Hochschild produced 5.2m ounces of silver "equivalent". Note the word equivalent, it means the company is valuing its output in terms of how much silver is worth, but Hochschild doesn't just mine silver. In reality it actually produced 27,600 ounces of gold in addition to 3.5m ounces of silver.

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In the half year to the end of June the company delivered production of 10.2m ounces of silver equivalent, including 6.9m ounces of silver and 55,900 ounces of gold, placing it on track to achieve the full-year production target of 20.0m silver equivalent ounces.

Ignacio Bustamante, Chief Executive Officer, commented: "I am pleased to report that we have delivered another robust performance from our operations in the first half and are therefore on track to achieve our...production target for 2012.

"Our record $90 million exploration programme is also on course, with some encouraging results already recorded from our current operations and our ambitious 2012 greenfield drilling programme is also making good progress."

By 08:24 Hochschild shares had fallen 0.95%.

BS