LONDON Jan 23 Latin American precious metals
firm Hochschild Mining posted 2012 production slightly
ahead of its forecast and guided that it was maintaining the
same target for the coming year.
The Lima-based company said on Wednesday that it produced
20.3 million silver equivalent ounces last year, beating
guidance of 20 million silver equivalent ounces.
Production of 20 million silver equivalent ounces would also
be targeted for 2013, the company said.
Hochschild, which has projects in Argentina and Chile but
whose south Peruvian mines provide the bulk of its production,
said that it expected the cost of extracting each tonne to rise
by 15 percent in 2012, in line with its forecast.
The unit cost per tonne in Peru will rise 15-20 percent this
year, it said, excluding royalties and a higher refining cost at
one of its mines.
The company said in November that output from two new
projects, Inmaculada and Crespo, which are seen as key because
they are expected to deliver a 50 percent increase in its
production, would be delayed until 2014 due to changes to the
Shares in the FTSE 250 company, which have fallen 9 percent
in the past month, traded down 0.1 percent to 438.1 pence.
Canaccord analyst Dmitry Kalachev, who has a "buy" rating on
the stock, said the 2013 production target was conservative.
"The main factor, which holds back the stock price is the
final mill construction permits for Inmaculada and Crespo that
were previously delayed and are expected to be received in the
second half of 2013," he said.