Hochschild Plans Acquisition of Two Peru-based Silver Mines

The Financial Times reported that Hochschild Mining plc (LSE:HOC) plans to acquire two Peruvian silver mines by buying out its minority partner’s 40-percent stake in the two assets.

As quoted in the market news:

One of the mines, Pallancata, produces more than 7m oz of silver and is Hochschild’s biggest cash flow generator. The other, Inmaculada, is set to be commissioned towards the end of next year and to produce about 12m oz annually.

The acquisition comes amid volatility in gold and silver prices and as some producers are setting aside expansion plans. Ignacio Bustamante, chief executive, said Inmaculada was one of the best deposits discovered in recent years and one that Hochschild wanted to focus on.

‘This is the most logical acquisition we could make and something we have wanted for a long time but market conditions would not allow us to do something that was a win-win for both parties. Current market conditions do allow us to do that,’ he said.

Click here to read the full Financial Times report.