Business
Production Report and IMS
Production Report and IMS.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n RNS Number : 3407R Hochschild Mining PLC 29 April 2009 \n \n\n\n\n________________________________________________________________________\n\n29 April 2009 \n\nProduction Report and Interim Management Statement for the three months to 31 March 2009 ('Q109')\n\n\nProduction up 16% year-on-year to 6.7 million attributable silver equivalent ounces, comprised of 4.4 million ounces of silver and 37.4 thousand ounces of gold\n\n\nOn track to achieve full year production target of 28 million silver equivalent ounces, representing a 7% increase over 2008 production \n\n\nContinue to deliver on M&A strategy: increased stake in Gold Resource Corporation from 5% to 15% and signed agreement to acquire* 100% of Southwestern Resources Corp for C$22.5 million (US$17.5 million) \n\n\nContinued focus on profitable ounces and cost reduction\n\n\n\n*Subject to the approval of Southwestern's shareholders\n\nMiguel Aramburú, Chief Executive Officer commented; \n\n'We remain on track to achieve our full year production target of 28 million attributable silver equivalent ounces. We are committed to producing profitable ounces and continue to take a diligent approach to cost control. As a result of the measures we implemented at the end of 2008, the Company is well placed to benefit from new acquisition opportunities which may arise from current market conditions.'\n\nOverview\n\nAttributable production in the first quarter increased 16% year-on-year to 6.7 million attributable silver equivalent ounces. This is comprised of 4.4 million ounces of silver, up 21% year-on-year and 37.4 thousand ounces of gold, up 6% year-on-year. Production was particularly strong at Arcata with silver and gold production up 28% and 50% year-on-year and at Pallancata where both silver and gold production more than doubled compared to the equivalent period last year. Production at Arcata, Pallancata and San José benefited from the capacity expansions which were successfully completed in the second half of 2008.\n\nAs anticipated and previously disclosed, average reserve grades at Ares and Selene are declining due to the ageing and geological nature of the deposits. The focus for 2009 is to deliver profitable production and the Group will...