Silver Price
iNVEZZ.com, Wednesday, July 16: Hochschild Mining Plc revealed today it has surpassed its target of saving $200 million and found new ways to reduce silver mining costs in Peru and Argentina. The miner, which has its headquarters in Lima, Peru, announced that its attributable silver equivalent production for the first half of 2014 rose to 11.85 million ounces from 11.48 million a year earlier. It also said it expected to meet its 2014 production target of 21 million.
Many mining companies had to resort to cost-cutting measures last year as the price of silver plummeted 36 percent.
"We expect earnings to more than double over the next three years (versus 2013) and unit costs to continue to fall," Barclays’ analysts wrote in a note, as reported by Reuters.
Average realisable precious metal prices per ounce – the price before commercial discounting and including hedging – were $1,328 for gold and $20.50 for silver in the first half of this year, compared with $1,367 for gold and $23.04 for silver a year earlier, according to Hochschild.
Another miner, Fresnillo Plc, also announced it was on its way to meet its 2014 production target in its second-quarter production report which was released today.
Silver has fallen to its lowest level in nearly a month as a stronger dollar curbed demand for alternative assets. September silver futures on the New York Mercantile Exchange (NYMEX) were down 11 cents to $20.775 a troy ounce as of 13:59 BST. The contract has shed 3.5 percent since Friday. It hit $20.630 earlier today, its lowest level since June 20.
“December silver futures bulls are also fading quickly as prices hit a four-week low overnight. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $21.67 an ounce. The next downside price breakout objective for the bears is closing prices below major technical support at $20.00. First resistance is seen at the overnight high of $20.88 and then at $21.00. Next support is seen at $20.47 and then at $20.25,” wrote Jim Wyckoff for Kitco News.
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