27th Nov 2013 08:27
LONDON (Alliance News) - Hochschild Mining PLC Wednesday reported that it swung to a loss in the first nine months of its financial year, but said it had experienced a much improved third quarter with operating margins up from the first half of the year due to cost savings.
The company, which put out its results ahead of a refinancing it is doing as its buys a 40% interest in the Pallancata mine and Inmaculada Advanced Project in Peru, reported a USD73.7 million net loss for the nine months to end-September compared with a profit of USD56.0 million profit a year earlier. Its revenue declined to USD466.4 million, from USD602.7 million.
However, it said margins were up in the third quarter, while the cash cost per ounce mined fell by over 16% compared to the costs in the first half.
That meant it posted a third-quarter pretax profit before exceptional items of USD10.3 million, compared with a loss of the same amount in the first half of the year. Its adjusted earnings before interest, tax, depreciation and amortisation was USD164.8 million compared with USD98.4 million in the first half.
"Hochschild has enjoyed a much improved quarter with healthy increases in operating margins versus the half-year results," Chief Executive Ignacio Bustamante said in a statement.
"Significant benefits are already being seen from our cash optimisation programme, which is on track to deliver approximately USD200 million of savings and I am confident that we will maintain momentum and continue to demonstrate the effectiveness of this Company-wide initiative," he added.
Hochschild Mining shares were up 2.4% at 129.992 pence early Wednesday, one of the biggest gainers on the FTSE 250.
The company said it has made progress on its acquisition-related re-financing having raised about USD73 million from an equity raising and arranged a USD340 million bridge financing facility.
By Steve McGrath; [email protected]; @SteveMcGrath1
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