Silver miner Hochschild Mining Plc said 2014 production exceeded its expectations and that it had hedged 6 million ounces of silver for this year.
Shares in the company fell as much as 3.6% as the hedging was made at $17.75 per ounce, below the spot silver prices of about $18.20 per ounce.
An increasing number of precious metals miners, battered by the fall in prices over the last two years, are selling planned output forward to better control their cash flow.
The miner said this hedge was in addition to a previous agreement to hedge 38,000 ounces of gold for 2015 at $1,300 per ounce.
The London-listed company, which has mines and exploration projects in Peru, Chile, Argentina and Mexico, said it produced 22.2 million silver equivalent ounces in 2014 compared with its target of 21 million silver equivalent ounces.
On Tuesday, January 20, Japanese silver jumped up 4.8%, landing at JPY 660.00 ($5.61) per 10 grams and making it the day’s biggest increase. Chinese silver finished the day up 0.7% to CNY 3,710 ($596.71) per kilogram. The price of Indian silver increased 0.5% to INR 39,690 ($643.75) per kilogram. After a couple of days of improving prices, the price of US silver held steady at $17.68.
At JPY 4,798 ($40.76), the price of Japanese gold bullion finished the market day up 2.0% per gram. The price of Indian gold bullion declined 0.4% to INR 27,849 ($451.70) per 10 grams, after two days of improvement. Chinese gold bullion prices inched up 0.1% to CNY 256.05 ($41.18) per gram. The price of US gold bullion flattened at $1,273 after two days of improvement.
Japanese platinum bar gained 0.9% to finish at JPY 4,731 ($40.19) per gram. Following a two-day rise, the price of Chinese platinum bar flattened at CNY 268.00 ($43.10). The price of US platinum bar steadied at $1,261 per ounce following two-days of increases.
Japanese palladium bar fell 3.4% to JPY 2,880 ($24.47) per gram. Today marked the fifth in a row of declining prices and the drop-off has accelerated since Wednesday, January 14. The price of Chinese palladium bar rose 0.6% to CNY 171.00 ($27.50) per gram after a two-day drop. The price of US palladium bar steadied at $757.00 per ounce following two-days of dropping prices.