The following is a summary of the Hudbay Minerals Inc. (HBM) Q1 2024 Earnings Call Transcript:
Financial Performance:
Hudbay Minerals posted Q1 revenue of $525 million, largely driven by gold production that exceeded expectations.
The company reported consolidated Q1 copper production of 35,000 tonnes and gold production of 90,000 ounces with consistent cash costs of $0.16 per pound of copper.
The company's adjusted EBITDA for the quarter was $214 million with adjusted net earnings of $0.16 per share, generating an operating cash flow of $148 billion.
After certain deductions, Hudbay generated $87 million in free cash flow for Q1 and has generated over $350 million in free cash flow in the past 12 months.
Business Progress:
Third quarter production in Peru was high due to mining at the Pampacancha deposit, which yields high copper and gold grades. The company is on track to meet the established production guidance for all metals in Peru.
First quarter production in Manitoba exceeded expectations due to operational improvements and a performance record from the New Britannia mill achieving highest quarterly throughput.
Operational stabilization plans are being advanced in British Columbia and have resulted in quarterly copper recoveries reaching a 10-year high of 83.4% in Q1 2024.
The company's copper production has been profitable at Constancia with low costs of $11 per ton. Potential for future copper production after depletion of the Pampacancha deposit in 2025 is being discussed.
Discussions with Peru authorities about regulating increased copper production are underway and additional options to increase production by improving existing processes are being considered.
More details: Hudbay Minerals IR
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