Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Precious metals miner Hochschild Mining said on Monday it expects lower annual production than forecast earlier this year as covid-19-related disruptions hampered mining activity at its assets in Peru and Argentina.
The company, which operates two mines in Peru and one in Argentina, said it was targeting 2020 overall attributable production of 280,000-290,000 gold equivalent ounces or 24-25 million silver equivalent ounces.
The miner in April withdrew its earlier output forecast of 422,000 gold equivalent ounces or 36 million silver equivalent ounces, after it was forced to temporarily shut all of its mines due to lockdowns.
London-listed Hochschild said it had successfully ramped-up operations at its flagship Inmaculada in Peru, with the mine now running at full capacity.
Peru, a top global metals exporter, saw its output of copper, gold and zinc nosedive in the first half of 2020 due to coronavirus restrictions.
Hochschild said it expects operating costs to inch higher because of reduced production, lower grades and government-imposed transport restrictions.
(By Shanima A; Editing by Shounak Dasgupta and Aditya Soni)
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