Hochschild scraps dividend as weak metals prices bite

miércoles 12 de marzo de 2014 03:23 GYT

LONDON, March 12 (Reuters) - Latin American mining company Hochschild said on Wednesday it has scrapped dividend payments after full-year core earnings fell by half on the back of declining precious metals prices.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell 49 percent to $195.5 million last year, while revenue dropped by 24 percent year on year to $622.2 million.

The miner, whose Peruvian projects provide the bulk of its output, said it had reduced production costs by $48 million and exploration costs by $25 million in a bid to stem losses from lower commodity prices.

The London-listed company said it would suspend dividend payments until its financial situation improves.

"The Board proposes to not reinstate the dividend until the company's cash position improves," said chairman Eduardo Hochschild in a statement.