Business
Production Report for 6 months ended 30 June 2011
Production Report for 6 months ended 30 June 2011.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n \nRNS Number : 6932K Hochschild Mining PLC 20 July 2011 \n \n\n20 July 2011\n \n \n \nProduction Report for the 6 months ended 30 June 2011\n \n \nHighlights \n \n§ Q2 2011 production of 5.6 million attributable silver equivalent ounces\n§ H1 2011 production of 11.1 million attributable silver equivalent ounces\n§ Hochschild on track to deliver 2011 production target of 22.5 million attributable silver equivalent ounces\n§ Ongoing delivery of organic growth strategy: \n- Inmaculada and Crespo feasibility studies due for Q4 completion;\n- Azuca feasibility study due for completion in H1 2012 \n§ US$70 million exploration programme progressing as planned\n§ Strong balance sheet underpin for project pipeline development\n \n \n \nIgnacio Bustamante, Chief Executive, commented: \n\"In spite of a continuing challenging industry environment faced by the Company, I am pleased to report that Hochschild has delivered a robust set of production figures for the first half placing us firmly on track to achieve our full year target of 22.5 million attributable silver equivalent ounces. In addition, the two feasibility studies on the exciting Inmaculada and Crespo projects, scheduled for completion towards the end of 2011, are on track, whilst the bulk of results from the Company's ambitious drilling programme for 2011 are expected to be available at the full year.\"\n \nOverview\nHochschild delivered attributable production of 5.6 million silver equivalent ounces in Q2 2011, comprised of 3.7 million ounces of silver and 32.0 thousand ounces of gold. Overall in the first half of 2011 the Group has delivered 7.3 million ounces of silver and 63.3 thousand ounces of gold placing it on track to achieve its full year production target of 22.5 million attributable silver equivalent ounces in 2011. \n \nCompared to H1 2010, attributable silver equivalent production decreased by 13% due to declines in grade at the Company's two main Peruvian operations, in line with its previously mentioned long term goal of mining close to the average reserve grade at each of its core operations. In addition, as expected the contribution from the Company's two ageing mines, Ares and Moris also declined versus the first half of 2010 although the...