August 20, 2014 / 7:07 AM / in 3 years

UPDATE 1-Silver miner Hochschild's adjusted core profit up on cost cuts

(Adds details, share movement)

Aug 20 (Reuters) - Silver miner Hochschild Mining Plc reported a 4 percent rise in first-half adjusted core earnings, helped by its aggressive cost-cutting programme and increased output from its mines in Peru and Argentina.

Hochschild’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) rose to $94.3 million, from $90.4 million a year earlier.

Net revenue fell 8.6 percent to $282 million for the six months ended June 30.

The miner, which cancelled dividend payments until its financial situation improves, said the capital required to bring its flagship Inmaculada gold and silver project in southern Peru to production restricted payment of an interim dividend.

Hochschild, which has been battling rising costs and falling precious metal prices, backed its production target for the year and said the Inmaculada project is set to be commissioned at the end of the year.

Attributable silver equivalent production from the company’s three underground mines in Peru and Argentina for the period rose 3 percent to 11.85 million pounds, Hochschild said in July.

Hochschild’s shares rose 1.7 percent to 162.7 pence in early trade on the London Stock Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Gopakumar Warrier)

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