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Hudbay reports $60 million net loss in Q1 2021, reaffirms annual guidance

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(Kitco News) - Hudbay Minerals (TSX, NYSE:HBM) reported yesterday that its consolidated copper production in Q1 2021 was 24,553 tonnes, a 10% decrease from Q4 2020, primarily as a result of lower mill throughput at Constancia due to a scheduled semi-annual mill maintenance shutdown, partially offset by higher copper grades at 777 and higher copper recoveries at the Flin Flon mill.

Consolidated gold production increased by 10% compared to Q4 2020 due to higher gold grades at 777, higher gold recoveries at the Flin Flon concentrator and higher gold grades at Constancia. Consolidated zinc production in the first quarter was 8% higher than the fourth quarter of 2020 due to higher zinc grades and throughput.

Cash generated from operating activities in Q1 2021 decreased to $51.8 million compared to $121.1 million in Q4 2020, primarily as a result of changes in non-cash working capital and lower sales volumes. Operating cash flow before change in non-cash working capital was $90.7 million during the first quarter of 2021, reflecting a slight increase from $86.1 million in the fourth quarter.

Net loss and loss per share in the first quarter of 2021 were $60.1 million and $0.23, respectively, compared to a net earnings and earnings per share of $7.4 million and $0.03, respectively, in the fourth quarter of 2020. First quarter adjusted EBITDA was $104.2 million, compared to $106.9 million in the fourth quarter of 2020.

The company said it reaffirms its full-year 2021 production and operating cost guidance and noted that Pampacancha production commenced in April 2021, in line with guidance.

Hudbay is a diversified mining company primarily producing copper concentrate (containing copper, gold and silver) and zinc metal. Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and copper projects in Arizona and Nevada (United States).

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