Hochschild Mining stung by silver price drop

South America focused silver and gold miner, Hochschild Mining, has seen revenues drop markedly, while also reporting delays in winning environmental approval for new Peruvian mines.

A 14% reduction in the price of silver saw total revenues fall to $354.5m in the first six months, against the $496.8m seen at the same point in 2011.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

Attributable silver production fell 6% to 6.887m ounces, gold was down 12% at 55,940 ounces. After exceptional costs earnings per share fell 72% to just 0.08 cents.

The interim dividend has been kept at 0.03 cents per share.

Hochschild had already told the market that it would like to develop sites at Inmaculada and Crespo but warned on Wednesday that: "the increasingly complex permit approval process in Peru could potentially create some uncertainty on the precise timing for receiving the final construction permits."

Commenting on the results the Executive Chairman, Eduardo Hochschild, said:

"The first half of 2012 provided the company with tougher challenges than last year, although I am pleased to report that we have delivered on our production targets and that we are on track to meet our full year target."

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.