- Hochschild Mining reported a fall in half-yearly profits on lower revenue amid a decline in output and a rise in costs compared with a year earlier.

For the six months ended 30 June, pre-exceptional profit before income tax fell to $41.5m from $54.9m a year earlier as revenue dropped to $354.5m from $372.3m a year earlier.

The company produced 245,325 gold equivalent ounces for the half, down from 256,939 gold equivalent ounces last year, at higher all-in sustaining costs of $921 per gold equivalent ounce, up from $909 per ounce a year earlier.

An interim dividend of 2 cents a share was declared, up from 1.965 cents per share last year.

The company said it remained on track to deliver overall 2019 production target of 457,000 gold equivalent ounces and all-in sustaining costs in the range of $960 to $1,000 per gold equivalent ounce. It also added touted improved cash flow in the second half of the year should the rise in gold and silver prices continue.

'In mid-June, the gold price started to rise significantly on the back of global uncertainty and a fall in the US dollar and reached levels not seen in six years. Silver also rose in July and therefore we expect the Company's second half cashflow generation to be healthy provided the price strength is maintained,' the company said.

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