UPDATE 2-Hochschild Q3 output falls, but on track for annual target
* Q3 attributable production 4.8 mln silver equiv ounces
* Keeps FY production target of 21 mln silver equiv ounces
* Sees further cost savings next year
* Shares fall as much as 3.6 pct (Rewrites first paragraph, adds detail)
By Esha Vaish
Oct 23 (Reuters) - Peruvian precious metals miner Hochschild posted a decline in third-quarter production, hit by lower grades at its Pallancata mine and a two-week strike at its Arcata asset, but said was it was still on track to reach its annual target.
The company, which gets the bulk of its production from underground mines in southern Peru, said attributable production dropped to 4.8 million silver equivalent ounces in the three months ended Sept. 30, from 6.3 million silver equivalent ounces a year earlier.
However, thanks to strong output in the first half, Hochschild kept its production target of 21 million silver equivalent ounces for the year.
"Everybody was thinking that they're going to beat their numbers quite strongly for the year, and it doesn't look like it's going to be quite so strong," Numis Securities analyst Cailey Barker told Reuters. Continuación...