AREQUIPA, Peru--Precious-metals mining company Hochschild Mining
PLC (HOC.LN) said Tuesday that it is considering acquisition
opportunities outside of the Latin American countries where it
currently operates.
Chief Executive Ignacio Bustamante said the decline in share
prices for mining companies has created an "attractive" opportunity
for acquisitions.
"The market right now, with the fall in the share prices, is
providing opportunities [for acquisitions] that are much more
attractive than a year ago," Mr. Bustamante said. "We are being
more aggressive on this front."
Hochschild currently has five mines located in Argentina, Peru
and Mexico. It also has a presence in Chile, where it is developing
the Volcan gold deposit.
"Our attention is mainly in the countries where we are," he said
on the sidelines of a mining conference in southern Peru. "But we
are also looking at opportunities in Canada, the United States,
Colombia and Brazil." He said Hochschild is interested in those
countries because they provide mining companies with legal
stability.
Mr. Bustamante said the company would be interested in acquiring
a large-scale project if it has "important geological
potential."
During a presentation at the conference, Mr. Bustamante said the
company plans to increase production to 30 million silver
equivalent ounces starting in 2015 with the startup of the
Inmaculada and Crespo projects, both located in Peru. Hochschild
expects to produce 20 million silver equivalent ounces this
year.
Inmaculada, which will require an investment of $370 million,
and Crespo, which has a capital expenditure of $111 million, are
slated to start production in the fourth quarter of 2014.
Construction permits for both projects are expected before the end
of 2013, Mr. Bustamante said.
Mr. Bustamante also said the company is cutting costs to deal
with lower metal prices. He said Hochschild will spend $50 million
on exploration this year, down from $98 million in 2012.
Write to Ryan Dube at ryan.dube@wsj.com
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