Hudbay copper production drops 27% in Q2, says situation in Peru remains 'fluid'
Hudbay (NYSE:HBM) said today consolidated copper production in the second quarter of 2020 was 18,026 tonnes, a 27% decrease from the first quarter of 2020 primarily as a result of the temporary suspension of operations at Constancia until mid-May.
Consolidated gold production increased by 7% compared to the first quarter of 2020 due to higher production from Manitoba as a result of higher gold grades and record quarterly gold recoveries at the Stall mill.
Consolidated zinc production in the second quarter of 2020 was in line with the first quarter of 2020.
Cash generated from operating activities in the second quarter of 2020 increased to $31.4 million compared to $9.1 million in the first quarter of 2020.
Hudbay issued new guidance but warned that its mine in Peru faces future risks. Hudbay lost production during the eight-week suspension at Constancia.
"The situation in Peru...remains fluid. The state of emergency, first declared by the government in response to the COVID-19 pandemic on March 15, has since been extended to August 31, 2020 and there remains a risk of further disruptions to mining operations. The company is actively monitoring the situation and any potential future impact on Constancia’s operations.