Wed, 16 Oct 06:55:00 GMT
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LONDON, Oct 16 (Reuters) - Latin American miner Hochschild said it was on track to meet its 2013 output target and was making progress with a plan to cut costs after falling precious metals prices hit profits in the first half.
Hochschild, which has projects in Argentina and Chile but whose Peruvian mines provide the bulk of its production, said it produced 5.4 million silver equivalent ounces in the three months to Sept. 30, putting it on track to achieve its 2013 target of 20 million ounces.
The company's half-year profits fell 46 percent on a rout in the silver price, currently trading around 35 percent below where it was last year, prompting Hochschild and other miners to focus on costs.
The Lima-based company has over the last three months introduced several cost cutting plans including a temporary halt to its dividend, reductions to directors' salaries and slashing its exploration budget. [ID:nL6N0GM0J8]
"Hochschild's cashflow optimisation programme continues apace and I am confident that we will be able to demonstrate significant savings at our full year results early in 2014," Chief Executive Ignacio Bustamante said in a statement on Wednesday.
Hochschild earlier in October raised $72.8 million in an equity placing to acquire its partner in two of its Peruvian projects. [ID:nL6N0HS0O0]
(Reporting by Sarah Young; editing by Kate Holton)