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Hudbay reports net loss in Q2, expects stronger production and improved costs in H2 2023

Kitco Media
By Vladimir Basov
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Updated
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(Kitco News) - Copper-focused miner Hudbay Minerals (TSX: HBM) (NYSE: HBM) yesterday reported consolidated copper production of 21,715 tonnes in Q2 2023, a decrease of 4% compared to Q1 2023.

Hudbay said its copper output declined as the company completed the higher volume stripping program at Pampacancha in June and a scheduled mill maintenance program at Constancia.

The company’s consolidated gold production in the quarter was 48,996 ounces, a 4% increase over the prior quarter, primarily due to slightly higher gold grades and higher gold recoveries in Peru.

Consolidated silver production in the second quarter was 612,310 ounces, a decrease of 13%. Consolidated zinc production in the second quarter was 8,758 tonnes, down 11%.

Cash generated from the company’s operating activities in Q2 2023 decreased to $24.6 million compared to $71.3 million in Q1 2023 primarily due to higher operating costs in Peru associated with the scheduled mill maintenance program and higher planned stripping activities at Pampacancha.

Hudbay also reported net loss and loss per share in Q2 2023 of $14.9 million and $0.05, respectively, compared to net earnings and earnings per share of $5.5 million and $0.02, respectively, in Q1 2023.

The company said the results were negatively impacted by $6.8 million of transaction costs associated with the acquisition of Copper Mountain and a $1.4 million foreign exchange loss.

“We remain on track to meet our 2023 guidance as we completed many transitional activities in the second quarter that position us for stronger production and improved costs during the second half of 2023,” said President and CEO Peter Kukielski.

Hudbay is a copper-focused mining company with three long-life operations and a pipeline of copper growth projects in tier-one mining-friendly jurisdictions of Canada, Peru and the United States.

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Kitco Media

Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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