August 16, 2017 / 6:26 AM / 2 years ago

Miner Hochschild's first-half pretax profit falls 33.8 percent on higher costs

(Reuters) - Precious metals miner Hochschild Mining Plc’s (HOCM.L) pretax profit fell 33.8 percent in the first half of the year, hurt by higher costs.

Attributable silver production rose 8.9 percent to 8.9 million ounces in the six months ended June 30, and the company said it was on track to deliver attributable production of 37 million silver equivalent ounces for 2017.

All-in-sustaining-costs (AISC) rose 10.1 percent to $12 per silver equivalent ounce, but was slightly ahead of its guidance of $12.20-12.7.

However, the company said it expects 2017 AISC to be in line with the $12.2-12.7 per silver equivalent ounce guidance.

The company, which has mining operations in Peru, Chile and Argentina, reported a pretax profit of $39.9 million for the six months ended June 30, compared with $60.3 million a year earlier.

Higher investment in exploration-led growth and the cancellation of benefits from a Patagonian port late last year as well as refilling at one of its mines in Peru led to an increase in overall costs.

Revenue rose marginally to $340.8 million in the six months.

Reporting by Arathy S Nair in Bengaluru; Editing by Sunil Nair

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