Hudbay swings to a loss
Base metal prices bit Hudbay Minerals (NYSE:HBM), which announced its year end today.
The company swung to a $452 million loss for 2019 compared to a $170 million profit the year prior.
Earning per share were a negative $1.32 versus 33 cents a year ago.
Operating cash flow before change in non-cash working capital decreased to $307.3 million from $501.4 million in 2018.
Decreases were the result of lower copper sales volumes and lower margins mainly from lower realized base metal prices.
With the exception of molybdenum and zinc, the company also produced less contained metal in concentrate. Comparing full-year production in 2019 to the previous year, copper production fell from 154,550 to 137,179; gold dropped from 119,882 to 114,692; and silver was out from 3,954,469 to 3,585,330.
The drop in copper production was primarily due to lower grades at Constancia and the closure of the Reed mine in Manitoba in August 2018.
Copper production costs rose. The consolidated cash cost per pound of copper produced, net of by-product credits, was $1.14 in 2019 compared to 94 cents the year prior.
Hudbay said zinc was up from 115,588 to 119,106 due to Lalor achieving its ramp up to 4,500 tonnes per day and the 777 mine implementing operational improvements.
In 2020 Hudbay sees less copper production with guidance set at 107,500 tonnes of copper and 172,500 ounces of precious metals. Hudbay said the ramp up of new mines will grow copper and precious metal production by 18% and 67% respectively starting in 2022.