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Hochschild Mining said it remained on track to meet its annual production and cost targets following its second strongest half of production on record.
Second-quarter attributable production rose to 123,959 gold equivalent ounces, up from 121,370 ounces in the previous quarter, but down from 130,350 a year earlier.
For the half, gold equivalent production of 245,325 ounces was down from 256,940 a year earlier.
The bulk of the increase was attributed to Inmaculada's second quarter production of 49,751 ounces of gold and 1.5m ounces of silver which, amounted to a gold equivalent output of 74,770 ounces and was principally 'driven by higher than expected gold and silver grades offset by lower silver recoveries,' the company said.
Gold production for the quarter rose to 84.15koz from 80.62koz a year earlier, but silver production fell to 5,166koz from 5,781koz.
Looking ahead, the company reiterated it was on track to deliver overall production of 457,000 gold equivalent ounces (37.0 million silver equivalent ounces) at all-in sustaining cost of $960-$1,000 per gold equivalent ounce ($11.8-12.3 per silver equivalent ounce).
'Our 2019 brownfield exploration season has continued this quarter with campaigns ongoing at our existing mines as well as a new programme starting at the Palca zone to the south of Pallancata where early results have already found mineralisationm;' the company said.
'At Inmaculada, we have discovered several new veins from a new zone to the west of the Angela vein and infill drilling is also ongoing with the aim of complementing the results from 2018.'
'In Q3, we can look forward to drilling at the nearby Cochaloma and Pablo Sur zones along with a new campaign at the recently permitted Corina area to the north of Selene.'
At 8:55am: (LON:HOC) Hochschild Mining PLC share price was +4.6p at 207.4p