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FRES - Fresnillo News Story

716.6p -20.2  -2.7%

Last Trade - 4:42pm

Sector
Basic Materials
Size
Large Cap
Market Cap £5.43bn
Enterprise Value £5.87bn
Revenue £1.60bn
Position in Universe 163rd / 1826

UPDATE 1-Hochschild Mining first-half profit falls on lower silver prices

Wed 14th August, 2019 8:02am
(Adds details on production, outlook, rival, CEO comment)
    Aug 14 (Reuters) - Precious metals miner Hochschild Mining
Plc  HOCM.L  reported lower first-half pretax profit on
Wednesday, as a drop in the average price of silver led to lower
group production.
    Hochschild's post-exceptional profit before income tax fell
23.5% to $29.5 million for the six months ended June 30, as the
average price of silver fell 7%.
    Hochschild said its first-half had the second highest
attributable production in the company's history with 245,325
gold equivalent ounces or 19.9 million silver equivalent ounces,
compared with 256,939 gold equivalent ounces or 20.8 million
silver equivalent ounces last year.
    "In mid-June, the gold price started to rise significantly
on the back of global uncertainty and a fall in the U.S. dollar
and reached levels not seen in six years," Chief Executive
Officer Ignacio Bustamante said.
    Bustamante also said a rise in silver prices in July led the
company to expect healthy second half cashflow generation,
provided the price strength is maintained.
    The Peru-headquartered miner said it was on track to meet
its forecast for full-year production and all-in sustaining
costs target.
    Hochschild also reported adjusted core earnings of $153.7
million, beating company compiled consensus of $144 million,
according to J.P. Morgan analysts.
    Rival Fresnillo  FRES.L  also trimmed its outlook for
full-year gold and silver production and reported lower output
for the two metals last month.  urn:newsml:reuters.com:*:nL4N24V2DS
       
    

 (Reporting by Tanishaa Nadkar and Yadarisa Shabong in
Bengaluru; Editing by Bernard Orr and Rashmi Aich)
 ((Yadarisa.Shabong@thomsonreuters.com; Phone: +91 80 6749
9089;))
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