Hochschild Mining first-half profit falls on lower silver prices
Precious metals miner Hochschild Mining reported lower first-half pretax profit on Wednesday, as a drop in the average price of silver led to lower group production.
Hochschild's post-exceptional profit before income tax fell 23.5% to $29.5-million for the six months ended June 30, as the average price of silver fell 7%.
Hochschild said its first-half had the second highest attributable production in the company's history with 245 325 gold equivalent ounces (GEO)or 19.9-million silver equivalent ounces, compared with 256 939 GEO, or 20.8-million silver equivalent ounces last year.
"In mid-June, the gold price started to rise significantly on the back of global uncertainty and a fall in the US dollar and reached levels not seen in six years," CEO Ignacio Bustamante said.
Bustamante also said a rise in silver prices in July led the company to expect healthy second half cashflow generation, provided the price strength is maintained.
The Peru-headquartered miner said it was on track to meet its forecast for full-year production and all-in sustaining costs target.
Hochschild also reported adjusted core earnings of $153.7-million, beating company compiled consensus of $144-million, according to J.P. Morgan analysts.
Rival Fresnillo also trimmed its outlook for full-year gold and silver production and reported lower output for the two metals last month.
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