Hochschild Says New Silver Mines to Boost Output 50% in 2014
Hochschild Mining Plc (HOC), a producer of silver in Peru and Argentina, plans to increase output of the metal by about 50 percent in 2014 by constructing two mines.
Hochschild decided to build the mines that will add about 10 million silver equivalent ounces a year after successful feasibility studies, the company said in a statement today. Hochschild targeted output of 22.5 million silver ounces in 2011. Its stock rose to a one-month high in London trading.
The Inmaculada project, due to start output in the third quarter of 2013 and 60 percent owned by Hochschild, will cost $315 million to construct and produce about 12 million silver equivalent ounces annually. The Crespo mine will add 2.7 million silver ounces starting 2014, the London-based company said.
Silver producers are seeking to expand output to benefit from prices that have almost tripled in the past three years. Fresnillo, the world’s largest miner of the metal, plans to boost production by about 60 percent to 65 million ounces by 2018.
Hochschild rose 2.7 percent to 431.8 pence by the close in London, the highest since Dec. 9.
To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net.
To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net
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