Hudbay Minerals Inc. reports developments as a copper-focused critical minerals miner with producing operations in Peru and Canada and copper growth projects in the United States and Peru. Its operating portfolio includes the Constancia mine in Cusco, the Snow Lake operations in Manitoba and the Copper Mountain mine in British Columbia; copper is its primary metal, with gold production and by-product zinc, silver and molybdenum.
Recurring Hudbay news covers operating and financial results, production and cost guidance, mineral reserve and resource updates, mine-life and permitting matters, project development at Copper World, Mason and Llaguen, and balance-sheet actions such as senior note repayment and credit-facility use.
Hudbay Minerals reported strong Q3 2024 results with record gold production and improved cost performance. The company achieved consolidated copper production of 31,354 tonnes and gold production of 89,073 ounces, representing increases of 10% and 52% respectively from Q2 2024. Financial highlights include revenue of $485.8 million and net earnings of $49.8 million. Cash costs improved significantly to $0.18 per pound of copper. The company reaffirmed its 2024 production guidance while improving cost guidance, with consolidated cash cost now expected between $0.65-$0.85 per pound. Cash position strengthened to $483.3 million with net debt reduced to $625.6 million.
Hudbay Minerals (TSX, NYSE: HBM) has announced a conference call to discuss its third quarter 2024 results. The call is scheduled for Wednesday, November 13, 2024, at 11:00 a.m. ET. Senior management will host the call, which will be accessible via webcast at www.hudbay.com or by dialing 1-844-763-8274 or 647-484-8814.
The company plans to release its Q3 2024 results before market open on November 13, 2024, and will post the news release on its website. An archived audio webcast of the call will be available on Hudbay's website following the event.
Hudbay Minerals Inc. (TSX, NYSE: HBM) has reached a final settlement in three civil lawsuits related to alleged actions in Guatemala in 2007 and 2009. This settlement concludes all outstanding legal matters from Hudbay's former activities in Guatemala. The company was named in the suits due to its ownership of the Fenix nickel project, acquired in 2008 and divested in 2011.
The settlement, agreed without admission of liability, acknowledges the differing views on the allegations. Hudbay's CEO, Peter Kukielski, expressed satisfaction in resolving these decade-long matters, recognizing the plaintiffs' difficult circumstances. The company emphasizes its commitment to responsible community engagement and human rights, as outlined in its Human Rights Policy and adherence to sustainable mining practices.
Hudbay Minerals (TSX, NYSE: HBM) has received an Aquifer Protection Permit for its Copper World project from the Arizona Department of Environmental Quality. This marks a significant milestone in the project's advancement, which is expected to produce 85,000 tonnes of copper annually over a 20-year mine life. The company is now awaiting the Air Quality Permit, the last key state-level permit required.
Copper World is projected to increase Hudbay's consolidated annual copper production by over 50% and contribute to the U.S. domestic copper supply chain. The project is expected to create more than 400 direct jobs and up to 3,000 indirect jobs in Arizona, while contributing an estimated $850 million in U.S. taxes over its initial mine life.
Hudbay has made significant progress in its financial planning, reducing net debt and improving its balance sheet flexibility. The company plans to commence a minority joint venture partner process after receiving the final permit, with a potential sanctioning decision expected in early 2026.
Hudbay Minerals released its Q2 2024 financial results, showing solid performance and improved guidance. The company produced 28,578 tonnes of copper and 58,614 ounces of gold, reflecting a 32% and 20% increase year-on-year, respectively. Consolidated cash cost per pound of copper was $1.14, with sustaining cash cost at $2.65.
Full-year production guidance for 2024 was reaffirmed, with copper expected at 137,000-176,000 tonnes and gold at 263,000-319,000 ounces. The company improved its annual operating cost guidance to $0.90-$1.10 per pound of copper.
Hudbay's revenue for Q2 was $425.5 million, but it reported a net loss of $16.6 million due to high tax expenses. Operating cash flow before changes in non-cash working capital stood at $122.0 million.
The successful equity offering raised $386.2 million, aiding in a $405.9 million reduction in net debt, which now stands at $631.8 million. Total liquidity increased to $948.5 million.
Engine Capital LP, a significant shareholder of C&C Group Plc, has nominated two candidates for election to the company's Board of Directors at the 2024 Annual General Meeting. This decision comes after years of underperformance by C&C Group, including succession missteps, strategic mistakes, and financial disappointments. Engine Capital cites the company's consistent underperformance compared to the FTSE 250 Index and peer group averages across various timeframes.
The nominated candidates are Ryan Dubin, an investment professional with experience in finance and M&A, and Alan Hibben, a corporate director with expertise in capital allocation and corporate governance. Engine Capital believes these additions will bring necessary financial skills and a shareholder mindset to the board, addressing concerns about the current directors' lack of urgency and minimal share ownership.
Hudbay Minerals Inc. (TSX, NYSE: HBM) has announced a conference call scheduled for Tuesday, August 13, 2024, at 11:00 a.m. ET to discuss the company's second quarter 2024 results. The company plans to release its Q2 2024 results before the market opens on the same day. Interested parties can join the call via webcast at www.hudbay.com or by dialing 1-844-763-8274 or 647-484-8814. An archived audio webcast will be available on Hudbay's website following the call, providing investors and analysts with an opportunity to review and discuss the company's financial performance for the quarter.
Hudbay Minerals (TSX, NYSE: HBM) released its 2023 Integrated Annual and Sustainability Report, detailing business achievements and sustainability goals. CEO Peter Kukielski highlighted advancements in purpose, culture, and sustainability. Important milestones include completing brownfield investments in Peru and Manitoba, acquiring Copper Mountain, and reducing GHG emissions intensity by 8%. The company sourced 55% of its energy from renewables, with significant reductions in water usage. Hudbay achieved high ratings in the Mining Association of Canada’s TSM program and signed a renewable energy agreement for its Peru operations. Key initiatives also include workplace safety programs and enhanced community engagement.
Hudbay and several labor unions have signed a Letter of Intent for a Project Labor Agreement to build the Copper World Mine in Pima County, Arizona. The unions involved include the International Brotherhood of Boilermakers Local 627, Laborers International Union of North America Local 1184, and United Brotherhood of Carpenters and Joiners of America Local 1912.
The Copper World Mine, located 19 miles south of Tucson, is one of Arizona's largest construction projects. Over its 20-year lifespan, the mine is expected to contribute over $850 million in U.S. taxes, including $170 million to Arizona, and generate 400 direct and up to 3,000 indirect jobs. The project will offer competitive wages and benefits, and focus on local workforce training.
Additionally, Copper World plans to produce copper cathode domestically by the fourth year, reducing energy requirements and emissions. The project aims to support Arizona's green economy and provide significant economic benefits to the local community.
Hudbay Minerals (TSX, NYSE: HBM) has successfully closed its public offering of 42,366,000 common shares, raising US$402,477,000. This includes 5,526,000 shares from the full exercise of the over-allotment option. The shares were priced at US$9.50 each. The joint bookrunners of the deal were RBC Capital Markets and BMO Capital Markets, with several other financial institutions co-managing. The funds will support growth initiatives, debt repayments, and general corporate purposes, specifically enhancing operations at Copper Mountain and evaluating projects at Constancia and New Britannia.