Business
Q2 2013 Production Report
Q2 2013 Production Report.
About this update from Hochschild Mining Plc
[{"type":"text","content":"\n \nRNS Number : 4752J Hochschild Mining PLC 17 July 2013 \n \n\n \n17 July 2013\n \nProduction Report for the 6 months ended 30 June 2013\n \nHighlights \n§ Q2 2013 attributable production of 5.0 million silver equivalent ounces1\n§ H1 2013 attributable production of 9.7 million silver equivalent ounces\n§ On track to achieve 2013 attributable production target of 20.0 million silver equivalent ounces \n§ Cashflow optimisation programme extended to deliver further material cost savings: \no Sustaining capex and exploration budget further reduced \no Strong focus on reducing operating costs and improving productivity \no Significant savings achieved in administration expenses\no Reduction in Board size and Directors' fees (see separate press release)\no Full impact expected in H2 2013 and 2014\n§ Advanced Project permitting process on schedule for H2 2013\n§ Total cash of approximately $240 million primarily reflecting H1 impact of:\no Advanced Project capex ($52 million)\no Change in working capital ($28 million)\no Foreign exchange loss on cash deposits in Peru ($16 million) - more than offset by positive effects of weakening currency on unit costs and capital expenditure\no Final payment for Andina Minerals acquisition ($14 million)\n§ Minority investments valued at $137 million as at 30 June 2013\n§ 3.38m shares of Gold Resource Corporation sold on 11 July 2013 for a net consideration of $25.7 million\n \nIgnacio Bustamante, Chief Executive Officer commented:\n\"The production volume in the first half of the year has been achieved according to expectations, with all operations delivering a solid performance. We remain on track to hit our target of 20 million ounces for 2013.\n \nAs we disclosed in May, we are rapidly implementing a comprehensive cashflow optimisation programme which encompasses cost, capex and expense reductions throughout the entire organisation. We are confident that the programme will deliver material savings in the second half of 2013 and more fully in 2014, thus ensuring that the Company optimises cash generation in a continuing volatile precious metal price environment. We will provide further details on our progress in our Half Year results in August.\"\n_______________...