Hochschild Share News (HOC)

LONDON (Alliance News) - Hochschild Mining PLC has made a solid start to 2019, the firm said on Tuesday, though silver production fell as gold output rose.

For the first three months of 2019, Hochschild's gold production was 67,519 ounces, up 12% from 60,500 ounces in the last quarter of 2018 but down 2.2% from 69,030 ounces a year ago. Gold equivalent was 121,367 ounces, down marginally from 121,920 ounces the previous quarter and more significantly from 126,590 ounces a year before.

Silver production was 4.4 million tonnes, down from 5.0 million tonnes in the previous quarter and 4.7 million tonnes a year before. Silver equivalent ounces were 9.8 million, down from 9.9 million a quarter before and 10.3 million a year prior.

Hochschild is on track for 2019 guidance of 457,000 gold equivalent ounces and 37.0 million silver equivalent ounces, as well as for cost guidance.

"Hochschild has delivered a solid start to the year with a strong contribution from Inmaculada and increased first quarter output from Pallancata leaving us firmly on track to meet our stated production and cost targets for 2019," said Chief Executive Ignacio Bustamante.

"We have also begun our ambitious 2019 brownfield exploration plan with campaigns already commenced at Inmaculada, San Jose and Pallancata. In addition, we have also secured the drilling permit for the exciting programme scheduled at Palca as well as achieving environmental approvals for campaigns at nearby Cochaloma and Pablo Sur."

The Inmaculada mine in Peru increased silver and gold output quarter-on-quarter, but the figures fell year-on-year. At Pallancata, also in Peru, the two fell quarter-on-quarter but rose on the prior year.

Hochschild's San Jose mine in Argentina registered drops quarter-on-quarter and year-on-year for gold and silver, while Arcata in Peru was placed on care and maintenance in February leading to a steep drop in production.

Shares were 1.5% higher in London on Tuesday at a price of 179.50 pence each.