Hochschild Mining cuts output target at two Peruvian mines
Nov 28 (Reuters) - Silver miner Hochschild Mining Plc said it would cut production and spending at two mines in southern Peru in 2015 as a way to stay profitable at a time of weak prices.
Hochschild said it now expected to produce a total of 24 million silver equivalent ounces next year after reducing plant throughput at its Arcata and Pallancata underground mines to 1,500 tonnes and 1,800 tonnes per day respectively.
Arcata currently handles 1,750 tonnes per day and Pallancata 3,000 tonnes. Throughput at the San Jose mine in Argentina will continue at its current level, Hochschild said.
The company, which has a production target of 21 million silver equivalent ounces this year, said its Inmaculada mine in Peru, was expected to produce 6-7 million ounces in 2015. Inmaculada is scheduled to start production at the end of 2014.
Hochschild said it expected all-in sustaining costs of $15-$16 per ounce in 2015, compared with the 2014 target of $18.30.
The company's shares were down 3 percent at 94.80 pence in early trading on the London Stock Exchange. (Reporting by Roshni Menon in Bangalore; Editing by Ted Kerr)
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