October 13, 2016 / 7:57 AM / 2 years ago

UPDATE 1-Silver miner Hochschild raises full-year production forecast

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Oct 13 (Reuters) - Precious metals miner Hochschild Mining Plc raised its full-year production forecast for a second time this year on Thursday, citing better-than-expected performance at its Inmaculada and Arcata mines in Peru.

The company, which has mining operations in Peru, Chile and Argentina, said it expected full-year production to be 35 million silver equivalent ounces. It had earlier expected to produce 32 million ounces this year.

Hochschild shares rose as much as 8.2 percent, before paring some gains. It was the second top percentage gainer on London’s FTSE 250 index on Thursday.

Hochschild also reported a 17.8 percent rise in its silver production at 5.9 million ounces in the third quarter ended Sept. 30, citing strong production at its flagship Inmaculada mine.

Silver was trading up 0.3 percent at $17.5 per ounce on Thursday. Silver and gold have jumped this year as investors have rushed to safe havens amid market turmoil in the wake of Britain’s historic vote to leave the European Union.

A Reuters poll in July showed analysts expect silver to average $17.09 per ounce this year, compared with an average of $15.68 in 2015.

Hochschild said it expected all-in sustaining costs, the total cost of sustaining production and capital expenditure, to be in the range of $11-$11.5 per silver equivalent ounce in 2016.

The miner had earlier estimated sustaining costs for the full year to be between $12-12.5 per silver equivalent ounce.

The company’s shares were up 2.9 percent at 259.4 pence by 0752 GMT. (Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Gopakumar Warrier and Sunil Nair)

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