This operating efficiency has allowed Hudbay to improve its consolidated cash cost guidance range to $0.90-$1.10/lb., a reflection of its meaningful exposure to gold byproduct credits and continued strong cost control.
For the quarter, the company achieved consolidated copper production of 28,578 tonnes and gold production of 58,614 ounces, both in line with its annual guidance as well.
The addition of the Copper Mountain mine in British Columbia, in which Hudbay owns 75%, helped to deliver a 32% increase in copper production and 20% increase in gold production over Q2 2023.
As a result, Hudbay has reaffirmed its full year 2024 consolidated production guidance for all metals — 137,000 to 176,000 tonnes of copper and 263,000 to 319,000 ounces of gold — as the company expects stronger production in the second half.
Financially, while the miner recorded a rise in quarterly revenue at $425.5 million from $312.2 million last year, its net loss deepened by $5.4 million compared to Q2 2023 due to elevated tax expenses.
Due to a successful equity offering and higher metals prices, Hudbay’s cash balance nearly doubled to $523.8 million from the previous quarter, and its net debt was cut by $405.9 million during the first half of the year.
“Our strong and diversified operating base continues to generate free cash flow driven in part by efficient milling performance in Peru and Manitoba. We are also continuing to execute our British Columbia stabilization plans and planned stripping programs in Peru and British Columbia to unlock higher copper and gold grades in the near term,” Peter Kukielski, CEO of Hudbay, stated.
“We are now even better positioned to continue to advance our many growth initiatives to unlock significant upside potential in our pipeline and further enhance our copper and gold exposure.”
By 2:30 p.m. ET, Hudbay Minerals traded 1.6% higher at C$10.14 apiece, for a market capitalization of approximately C$4 billion ($2.9bn).
