LONDON (dpa-AFX) - Hochschild Mining PLC (HOC.L) said that it delivered another strong quarter of attributable production with 127,728 gold equivalent ounces or 9.5 million silver equivalent ounces in the fourth-quarter primarily driven by the continuing ramp-up of production from the Pablo vein at Pallancata and a robust period at San Jose partially offsetting a scheduled quarter of lower output at Inmaculada.
Overall 2018 attributable production was 39.0 million silver equivalent ounces (526,650 gold equivalent ounces) which was due to a record year at Inmaculada as well as a much higher production from Pallancata.
The company reiterates that its all-in sustaining cost per silver equivalent ounce for 2018 is expected to be in line with the positively revised guidance of $940-$970 per gold equivalent ounce ($12.7-13.1 per silver equivalent ounce).
The overall attributable production target for 2019 is 457,000 gold equivalent ounces or 37.0 million silver equivalent ounces. The Arcata operation has been excluded from forecasts pending a final decision on the mine's future which is expected before the Full Year results in February.
The all-in sustaining cost from operations in 2019 is expected to be between $960 and $1,000 per gold equivalent ounce (or $11.8 and $12.3 per silver equivalent ounce) which excludes Arcata and includes an investment of $15 million in development costs to incorporate the newly discovered resources at Inmaculada.
The overall capital expenditure budget for 2019 is about $130 million- $140 million allocated to sustaining and development expenditure. This includes a $15 million investment in the above-mentioned new development costs at Inmaculada.
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