Hochschild to issue $350M in bonds to fund expansion in Peru, Chile
Peruvian miner Hochschild Mining Plc on Thursday said it plans a USD350 million bond issue to fund its expansion in Peru as well as a project in Chile.
A report by Reuters said that Hochschild hopes to increase its silver output by 50% from the current 20 million ounces a year. The mining company produces gold and silver in Peru, Argentina and Mexico.
Hochschild chief executive officer Ignacio Bustamante said that the company is beginning to work on the USD350 million bond issue. Bustamante, however, did not give a specific date for the issue.
Reuters, quoting Bustamante, said that Hochschild plans to invest USD372 million in its Inmaculada silver mine project in Peru. The project is currently under construction and is expected to come one stream in 2015.
The company also plans to invest USD1 billion in its Volcan gold project in Chile, which is due to come on stream in less than five years, the report said.
Hochschild has 34 exploration projects underway despite moves to reduce costs. The London-listed company generated a revenue of USD466.4 million as of the third quarter of 2013, its financial report said.