Latin American silver producer Hochschild Mining fell 25% after warning that gross margins and attributable profit would be impacted in 2008 due to a number of factors at its six operating mines including lower grades, a weak US dollar and higher depreciation charges as it shifts production from older to newer mines.
Hochschild produced 25.667 million silver equivalent ounces (silver-gold ratio 60:1) in 2007, slightly below expectations of 26 million ounces, but reiterated its target of reaching 50 million silver equivalent ounces by 2011.