Hochschild silver haul to be lower in 2012
South-American miner Hochschild said it expects silver production to be lower in 2012 than last year and to see a rise in production costs.
South-American miner Hochschild said it expects silver production to be lower in 2012 than last year and to see a rise in production costs.
The company's production target for this year is 20m attributable silver equivalent ounces, down from the 22.6m ounce target it hit in 2011.
But the company has put its faith in its mines for its long-term future, slating a $90m budget for exploration in 2012, the biggest in the firm's history.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Hochschild expects an increase in overall 2012 unit cost per tonne at its Peru operations to be around 15% excluding royalties and the increased refining cost due to the effects of its dor project at Arcata.
The main factors in this increase are anticipated to be a combination of expected local industry inflation of 10% and the increasing number of stopes at core operations, the firm said.
In Argentina, the rate is expected to continue to be higher as a result of ongoing local industry inflation of around 25-30%.
However, it stressed it was in a strong financial position, with total cash of approximately $627m on the balance sheet as at 31 December 2011, up from $530m the year before.
"We continue to believe that exploration is our main source of profitable growth for the long term," said chief executive Ignacio Bustamante.
"Our $90m exploration budget for 2012...will be invested in our brownfield, Advanced Projects and greenfield exploration programmes, which encompass drilling campaigns in 26 different locations across the Americas."
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
5 alternatives to Reeves’ inheritance tax raid on rural Britain as families face ‘splitting up or selling’ farms
Inheritance tax limits are now so low they attack small working family farms rather than just going after tax loopholes, one Cotswolds farmer has said
-
High earners at risk of £65k retirement shock
High earners could face some of the biggest pension shortfalls when they retire, as the cost of maintaining an expensive lifestyle could erode their retirement savings