Hochschild Mining Plc. said its second quarter attributable gold and silver production are in line with budget.

The precious metals company achieved attributable silver production of 3.8 million ounces, which equates to 6.1 million attributable silver equivalent ounces, up 6 percent quarter-on-quarter, driven primarily by strong silver production at Arcata, Pallancata and San Jos.

Hochschild said it achieved attributable gold production of 38.3 thousand ounces and the gold production decreased in the second quarter due to anticipated lower grades at Ares and Selene but this has been offset by the increase in production at its other operations.

The company said it is on track to achieve 2008 attributable production target of 16.9 million ounces of silver and 153 thousand ounces of gold.

Looking ahead, Hochschild Mining said capacity expansions at Arcata, San Jos and Selene are on schedule for completion in the second half of 2008, adding it is confident about the long term growth prospects.