Hochschild profits, shares hit by low silver price

Hochschild Mining PLC (HOC:LN) shares are down nearly 5% on the day and profits were down 50% the year ending December 2012.

2012 was not kind to Hochschild as the miner’s sales were also down 17% to $817 million.

Hochschild blames the slide on a 10% drop in the price of silver.

Production dipped 10% to 13.5 million ounces over the same time period, contributing to the profit decline.

The company’s shares are currently at a premium relative to the rest of the mining sector, trading at just over 14 times the earnings forecast for 2013.

Hochschild share price over one month closing March 12, 2013