23rd Oct 2019 08:15
(Alliance News) - Hochschild Mining PLC on Wednesday said it is on track to deliver its annual guidance following mixed performance in the third quarter of 2019.
The FTSE 250-listed silver and gold producer said its gold production rose to 81,370 ounces in the three months to the end of September, up 9.7% compared to 74,200 ounces mined a year prior. This was driven by solid delivery from all of the company's operating mines, it said, especially San Jose, located in northern Chile.
Quarter-on-quarter, however, gold production declined by 3.3%.
In terms of silver, production in the third quarter was 2.3% higher, at 5.3 million ounces, versus 5.2 million delivered in the second quarter of 2019. But, year-on-year, silver output slipped by 8.8%.
Overall year-to-date production was 366,721 gold equivalent ounces and 29.7 million silver equivalent ounces, the second highest nine month total in the company's history, it said.
Looking ahead, Hochschild said it is firmly on track to meet its full year production forecast of 457,000 gold equivalent ounces and 37.0 million silver equivalent ounces with the 2019 mine plan scheduling a relative reduction in production in the fourth quarter.
Turning to prices, the miner said average realisable precious metal prices in the third quarter of 2019 were USD1,510 per ounce for gold and USD18.4 per ounce for silver, higher than USD1,187 and USD13.7, respectively, a year ago.
For the first nine months of 2019, average realisable precious metal prices were USD1,389 an ounce for gold and USD16.2 an ounce for silver compared to USD1,270 and USD15.3, respectively, in 2018.
"Hochschild has delivered another strong quarter of output including robust contributions at all three of our mines and we remain on track to meet our annual production and cost targets," said Chief Executive Ignacio Bustamante.
"We remain confident for the future and are excited by the acquisition of the low-risk Biolantanidos rare earth deposit in Chile which adds diversified optionality to our portfolio although we will retain our core focus on precious metals," added Bustamante.
Hochschild shares were trading 0.3% lower in London on Wednesday morning at 185.80 pence each.
By Evelina Grecenko; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Hochschild