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Hochschild FY'17 dividend rises despite fall in profit

Hochschild Mining Plc's 2017 profit attributable to shareholders declined to US$41.6 million, or 8 cents per share, compared to US$45.6 million, or 9 cents per share, in 2016.

Despite the lower profit, the company increased the dividend 42% year over year to 1.965 cents per share from 1.38 cents per share.

Revenue increased to US$722.6 million, from US$688.2 million a year ago, according to the Feb. 21 release.

Higher cost of sales pushed gross profit down to US$173.5 million, compared to US$200.5 million in 2016.

In 2018, Hochschild expects to produce 514,000 attributable gold equivalent ounces at all-in sustaining costs of between US$960 and US$990 per gold equivalent ounce. Output in 2017 hit 513,598 gold equivalent ounces, up from 479,640 ounces in 2016.

Costs at the Inmaculada mine in Peru are expected between US$700 and US$750 per gold equivalent ounce this year.

Total sustaining and development capital expenditure is expected to be US$125 million to US$135 million in 2018, including US$14 million for the hydraulic backfill project at the San Jose mine.

The company approved a budget of US$10 million for greenfield exploration in 2018.