Peruvian silver producer Hochschild Mining has unveiled a 44 per cent increase in profits for the first half of the year and said cost inflation at its mines had peaked.

Echoing comments made by Mexican silver miner Fresnillo this week, Miguel Aramburu, chief executive, said that cost pressure was now easing. “If the oil price doesn’t increase any more we think costs will have peaked.” He said the appreciation of the US dollar had helped keep costs down.