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Hochschild well ahead on costs

Hochschild delivered an encouraging operating performance in the first half, but capital constraints remain an issue.
August 20, 2014

Hochschild Mining (HOC) managed to slash its reported interim loss in the first half, as the twin benefits of an aggressive cost-cutting programme and increased output from its mines in Peru and Argentina started to kick in. The silver miner's top-line performance was encouraging, given lower precious metals prices, while underlying cash profits ticked up by 4 per cent to $94m (£57m).

IC TIP: Hold at 161p

Hochschild also delivered a strong operational performance, producing 11.9m silver-equivalent ounces at a much lower overall cost than last year. This was partly thanks to increased production at the Arcata mine in Peru, where higher-grade ore bodies have been targeted.

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