Hochschild reports record output for 2017 with output growing for the fifth consecutive year, driven by another record performance from its Inmaculada mine.
Full year attributable production total 513,598 gold equivalent ounces and 38.0 million silver equivalent ounces (versus target of 37.0 million silver equivalent guidance) and comprised 254,932 ounces of gold and 19.1 million ounces of silver.
The group saw record production of 239,479 gold equivalent ounces at Inmaculada (2016: 229,033 ounces) while production at Pallancata rose 118% to 7.7 million silver equivalent ounces (2016: 3.5 million ounces).
There was also record production of 13.9 million silver equivalent ounces at San Jose (2016: 13.7 million ounces).
2017 all-in sustaining costs per silver equivalent ounce on track to meet $12.2-$12.7 guidance.
- Production target of 514,000 gold equivalent ounces (38.0 million silver equivalent ounces)
- All-in sustaining cost expected to be $960-$990 per gold equivalent ounce ($13.0-13.4 per silver equivalent ounce)2
* Inmaculada costs expected to be $700-750 per gold equivalent ounce
- Total sustaining and development capital expenditure expected to be approximately $125-135 million including $14 million for hydraulic backfill project at San Jose
Chief executive Ignacio Bustamante said: 'Hochschild has once again delivered a historic year of production with output growing for the fifth consecutive year, driven by another record performance from our Inmaculada mine.
'Our costs and capex for 2017 are expected to be in line with expectations reflecting the ongoing focus on cost control and efficiencies.
'Our financial position is very robust and we look forward to a further improvement in the coming days with the previously announced early repayment of our bonds.
'Our brownfield exploration programme has delivered some encouraging results across all our operations throughout the year.
'We are particularly excited by the geological prospectivity in the area surrounding the Angela vein at Inmaculada. Early results from our first drilling campaign at the deposit in six years confirm the strong geological potential close to the mine's infrastructure.
'These drill holes also confirm the presence of the Millet vein with some intercepts showing up to 38 metre widths and good grades.
'We are optimistic that these discoveries may be able to provide attractive resource additions once we have completed further drilling campaigns towards the end of 2018.'
At 9:12am: (LON:HOC) Hochschild Mining PLC share price was -3.45p at 243.75p