Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX,
NYSE: HBM) today released its fourth quarter and full year
2024 financial results, and announced 2025 annual production and
cost guidance. All amounts are in U.S. dollars, unless otherwise
noted. All production and cost amounts reflect the Copper Mountain
mine on a 100% basis, with Hudbay owning a 75% interest in the
mine.
"Hudbay delivered record financial performance
and a transformed balance sheet in 2024, driven by the achievement
of consolidated production guidance for all metals with gold
production significantly exceeding the top end of the guidance
range and the outperformance of our twice-improved consolidated
cash cost guidance,” said Peter Kukielski, President and Chief
Executive Officer. “Our enhanced operating platform achieved steady
copper production, record high gold production and industry-leading
cost performance, generating record annual free cash flows in 2024.
The free cash flow generation and the successful equity offering in
May have contributed to the significant $512 million reduction in
net debt in 2024 and the transformation of our balance sheet to be
in the lowest leverage position of our peers. This has put us in an
excellent position to reinvest in our portfolio of high-return
growth projects to unlock significant near-term and long-term value
for our stakeholders. Our near-term brownfield growth projects
include attractive mill improvement projects in British Columbia
and Peru, which are expected to increase mill throughput levels
starting in 2026. Our Copper World project in Arizona is now fully
permitted and we look forward to prudently advancing this
high-quality copper development project towards a construction
sanctioning decision in 2026, and once in production, Copper World
is expected to increase our consolidated copper production by more
than 50% from current levels.”
Delivered Record Annual Results, Led by
Record Gold Production from Manitoba Operations and Record
Revenues; 2024 Consolidated Production and Cost Guidance
Achieved
- Achieved record annual revenue of
$2,021.2 million and record annual adjusted EBITDAi of $822.5
million.
- Enhanced operating platform
achieved 2024 consolidated production guidance for all metals with
record gold production exceeding the top end of the 2024 guidance
range. Full year consolidated copper production of 137,943 tonnes,
gold production of 332,240 ounces and silver production of
3,983,851 ounces increased by 5%, 7% and 11% respectively, compared
to full year 2023.
- Significantly outperformed the
twice-improved 2024 consolidated cash cost guidance. Strong cost
control and meaningful exposure to gold by-product credits resulted
in better-than-expected consolidated 2024 cash costi and sustaining
cash costi per pound of copper produced, net of by-product credits,
of $0.46 and $1.62, respectively, an improvement of 43% and 6%,
respectively, compared to 2023.
- Peru full year copper production
was within the 2024 guidance range while gold production exceeded
the top end of guidance as additional gold benches were prioritized
in the fourth quarter. Peru full year cash costs of $1.18 per pound
outperformed the 2024 annual guidance range.
- Manitoba full year gold production
of 214,225 ounces exceeded the top end of the 2024 guidance range
of 170,000 to 200,000 ounces. Manitoba full year cash costs of $606
per ounce outperformed the lower end of 2024 annual guidance range
of $700 to $900 per ounce.
- British Columbia full year copper
production was below the low end of the 2024 guidance range, as
expected, while full year gold production was in line with the 2024
annual guidance range. Copper production was lower than the
guidance range as a result of lower grades in stockpiled ore and
lower throughput during the ramp-up of stabilization and
optimization efforts throughout the year. British Columbia
continues to advance mill optimization initiatives with the goal to
achieve higher mill throughput in 2025.
- Cash and cash equivalents and
short-term investments increased by $332.0 million to $581.8
million during 2024 due to a successful equity offering and strong
operating cash flows bolstered by higher copper and gold prices,
which enabled a $512.0 million reduction in net debti during
2024.
Delivered Strong Fourth Quarter
Operating and Financial Results
- Fourth quarter consolidated copper
production of 43,262 tonnes was in line with quarterly production
cadence expectations and increased 38% from the third quarter of
2024. Consolidated gold production of 94,161 ounces significantly
exceeded expectations and represented an increase of 6% from the
strong levels achieved in the third quarter of 2024.
- Strong operating cost performance
with consolidated cash costi and sustaining cash costi per pound of
copper produced, net of by-product credits, in the fourth quarter
of 2024 of $0.45 and $1.37, respectively, representing another
quarter of industry-leading cost performance.
- Peru operations continued to
benefit from strong and consistent mill throughput, achieving
averages of approximately 87,000 tonnes per day in the fourth
quarter, despite a planned semi-annual mill maintenance shutdown.
The on-time completion of the Pampacancha stripping program
contributed to higher grade ore during the fourth quarter. Peru
operations produced 33,988 tonnes of copper and 38,079 ounces of
gold in the fourth quarter of 2024, in line with quarterly cadence
expectations. Peru cash costi per pound of copper produced, net of
by-product credits, was $1.00 in the fourth quarter, demonstrating
continued strong cost performance.
- Manitoba operations produced 51,438
ounces of gold in the fourth quarter of 2024, significantly
exceeding management's expectations in both production and
efficiency. Manitoba cash costi per ounce of gold produced, net of
by-product credits, was $607 during the fourth quarter, reflecting
better-than-expected operating performance and continued strong
operating cost margins.
- British Columbia operations
produced 5,927 tonnes of copper at a cash costi per pound of copper
produced, net of by-product credits, of $3.00 in the fourth quarter
of 2024, reflecting reduced mill throughput versus the third
quarter of 2024 as a result of ramp-up periods following mill
maintenance shutdowns during the quarter.Achieved revenue of $584.9
million and operating cash flow before change in non-cash working
capital of $231.5 million in the fourth quarter of 2024, a 20% and
24% increase, respectively, from the third quarter of 2024. Strong
financial results were driven by higher realized gold prices as
well as strong copper production in Peru, while delivering on
higher grades, throughput and cost control initiatives across all
business units.
- Achieved revenue of $584.9 million
and operating cash flow before change in non-cash working capital
of $231.5 million in the fourth quarter of 2024, a 20% and 24%
increase, respectively, from the third quarter of 2024. Strong
financial results were driven by higher realized gold prices as
well as strong copper production in Peru, while delivering on
higher grades, throughput and cost control initiatives across all
business units.
- Fourth quarter net earnings
attributable to owners and earnings per share attributable to
owners were $21.2 million and $0.05, respectively. After adjusting
for items on a pre-tax basis such as a non-cash $17.4 million
foreign exchange loss, a $14.1 million write-down of PP&E, a
$10.3 million mark-to-market revaluation gain on various
instruments such as unrealized strategic copper hedges, investments
and share-based compensation, and a non-cash loss of $2.5 million
related to a quarterly revaluation of closed site environmental
reclamation provision, among other items, fourth quarter adjusted
earningsi per share attributable to owners was $0.18.
- Adjusted EBITDAi was $257.3 million
during the fourth quarter of 2024, a 25% increase compared to the
third quarter of 2024.
- Financial results in the fourth
quarter would have been even higher if excess copper inventory in
Peru at the end of December 2024 was sold. A total of approximately
30,000 wet metric tonnes of copper concentrate was unsold at the
end of December, compared to normal levels of 15,000 wet metric
tonnes. The excess copper concentrate inventory in Peru is expected
to be sold in the first quarter of 2025.
Achieved Significant Debt Reduction and
Transformed Balance Sheet
- Hudbay's unique copper and gold
diversification in Peru and Canada provides exposure to higher
copper and gold prices and attractive free cash flow
generation.
- While the majority of revenues
continue to be derived from copper production, gold represented an
increasing portion of total revenues at 35% in 2024 compared to 29%
in 2023, which was driven by high gold prices and record gold
production in Manitoba.
- Impressive operating cash flow and
free cash flow generation in 2024 reflects continued strong copper
and gold production in Peru and higher gold production from
Manitoba following the full repayment of the gold prepayment
liability in August 2024, as well as operating cash flow
contributions from British Columbia.
- Strong operating cash flow
generation and the net proceeds from the equity offering in May
2024 allowed the company to significantly deleverage and transform
the balance sheet with $245 million of combined debt repayments and
gold prepayment liability reductions in 2024.
- Further reduced net debti to $525.7
million in the fourth quarter of 2024, representing the fourth
consecutive quarter of lower net debt as a result of deleveraging
efforts and capitalizing on strong operating cash flow
generation.
- Record annual adjusted EBITDAi of
$822.5 million in 2024 was a substantial increase from $647.8
million in 2023.
- The increase in cash and reduction
in long-term debt significantly reduced the company’s net debt to
adjusted EBITDA ratioi to 0.6x at the end of 2024 compared to 1.6x
at the end of 2023, well within the targeted 1.2x net debt to
adjusted EBITDA ratio outlined in the three prerequisites plan (the
"3-P plan") for advancing Copper World, and transforming Hudbay
from one of the highest leverage positions to the lowest leverage
position among industry peers.
- In November 2024, further improved
long-term balance sheet resilience with a proactive three-year
extension of the company’s senior secured revolving credit
facilities from October 2025 to November 2028. The extended credit
facilities provide increased financial flexibility to accretively
maintain the 4.50% coupon 2026 senior unsecured notes outstanding
to maturity and advance Copper World towards a sanctioning decision
in accordance with the 3-P plan. The $450 million revolving credit
facilities include an improved pricing grid reflecting the enhanced
financial position of Hudbay and feature an opportunity to increase
the facility by an additional $150 million at Hudbay’s discretion
during the four-year tenor, providing additional financial
flexibility.
- Total liquidity substantially
increased by 76% to $1,007.8 million at the end of 2024 from $573.7
million at the end of 2023.
Advancing Growth Initiatives to Further
Enhance Copper and Gold Exposure
- Received all major permits required
for the development and operation of Copper World with the receipt
of the Air Quality Permit in January 2025 and the Aquifer
Protection Permit in August 2024. Copper World is now the highest
grade and lowest capital intensity fully permitted copper project
in the Americas.
- Continuing to progress the 3-P plan
for Copper World in 2025 with definitive feasibility study
activities and minority joint venture partner process
underway.
- The successful completion of the
planned stripping program at Pampacancha in September unlocked
significantly higher copper and gold grades in the fourth quarter
of 2024, which together with maintaining strong operating
performance at Constancia has generated meaningful free cash flow
in Peru.
- The New Britannia mill continued to
exceed throughput expectations, driving continued strong gold
production and free cash flow generation in Manitoba. The New
Britannia mill achieved throughput levels of approximately 2,020
tonnes per day in the fourth quarter, exceeding its original design
capacity of 1,500 tonnes per day and its 2024 budgeted capacity of
1,800 tonnes per day due to the successful implementation of
process improvement initiatives and effective preventative
maintenance measures. After three years of operations, a
post-project review of the New Britannia refurbishment investment
has increased the unlevered IRR to 36% from 19% at project sanction
in 2020.
- Hudbay has successfully implemented
post-acquisition plans to stabilize the Copper Mountain operations
through mining fleet ramp-up activities and increased mill
reliability and performance. Efforts are now focused on optimizing
the operations in 2025 through execution of the planned accelerated
stripping program and mill throughput improvement projects.
- Drill permitting for highly
prospective Maria Reyna and Caballito properties near Constancia
continues to advance through the multi-step regulatory process with
the conclusion of the process expected in 2025.
- The development of an access drift
to the 1901 deposit in Snow Lake is progressing well and first ore
mining is expected in the second quarter of 2025 to enable
confirmation of the optimal mining method for the deposit.
Underground step-out drilling to-date has intersected copper-gold
mineralization and additional drilling is planned for 2025. The
development of an adjacent haulage drift has been initiated to
de-risk planned full production in 2027.
- Large 2024 exploration program in
Snow Lake continued testing targets near Lalor and regional
satellite properties throughout the winter months with encouraging
results. 2025 exploration plans include a large geophysics program
and follow-up drilling at Lalor Northwest located 400 metres from
Lalor's underground infrastructure, along with the testing of a
deep geophysical target at the Cook Lake North property.
- Continuing to advance Flin Flon
tailings reprocessing opportunities through metallurgical test work
and early economic evaluation to assess the possibility of
producing critical minerals and precious metals while reducing the
environmental footprint.
2025 Guidance Reflects Stable Copper and
Gold Production at Industry-leading Margins
- Consolidated copper production of
133,000 tonnes, based on the midpoint of the 2025 guidance range,
is expected to remain stable with 2024 levels, reflecting higher
expected production in British Columbia as mill throughput
optimization plans are implemented, offset by a lower portion of
ore feed from the high-grade Pampacancha satellite deposit in
Peru.
- Consolidated gold production of
277,750 ounces, based on the midpoint of the 2025 guidance range,
is expected to be lower than 2024 production, reflecting a lower
portion of ore feed from Pampacancha in 2025 and the accelerated
mining of high-grade gold benches in late 2024, partially offset by
continued strong gold production in Manitoba.
- Consolidated cash costi, net of
by-product credits, in 2025 is expected to be within $0.80 to $1.00
per pound as the company continues to focus on maintaining strong
cost control across the business, driving industry-leading
margins.
- Total sustaining capital
expenditures are expected to be $365 million in 2025, reflecting
some deferrals from 2024 and higher sustaining spending at the
operations.
- Total growth capital expenditures
are expected to be $205 million in 2025 as Hudbay reinvests in
several high-return growth projects in 2025 to deliver increased
copper exposure. This includes $55 million for mill throughput
improvement projects in British Columbia, $25 million for mill
throughput improvement projects in Peru and $65 million for Copper
World de-risking activities and feasibility studies.
- Exploration expenditures are
expected to total $40 million in 2025 as the company continues to
execute the large multi-year exploration program in the Snow Lake
region, which continues to be partially funded by critical minerals
premium flow-through financing that was completed in the fourth
quarter.
Summary of Fourth Quarter
Results
Consolidated copper production of 43,262 tonnes
in the fourth quarter of 2024 was in line with quarterly production
cadence and represented a significant increase of 38% from the
third quarter of 2024. Consolidated gold production of 94,161
ounces significantly exceeded expectations and represented an
increase of 6% from the third quarter of 2024. Consolidated silver
production was 1,311,658 ounces in the quarter, a 33% increase from
the third quarter of 2024, while consolidated zinc production was
8,385 tonnes, in line with the prior quarter. The increase in
production was primarily due to higher grades in Peru and continued
strong gold production in Manitoba.
Cash generated from operating activities of
$238.1 million increased by $91.9 million in the fourth quarter of
2024 compared to the third quarter of 2024. Operating cash flow
before change in non-cash working capital was $231.5 million during
the fourth quarter of 2024, reflecting an increase of $45.2 million
from the third quarter of 2024. This increase reflects higher
copper and gold sales volumes driven by higher grades in Peru and
continued strong gold production in Manitoba.
Net earnings attributable to owners in the
fourth quarter of 2024 was $21.2 million, or $0.05 per share,
compared to $49.8 million, or $0.13 per share in the third quarter
of 2024. The fourth quarter of 2024 was impacted by various
non-cash charges for foreign exchange losses, write-offs of
previously capitalized PP&E and revaluation of share-based
compensation due to a higher share price.
Adjusted net earnings attributable to ownersi
and adjusted net earnings per share attributable to ownersi were
$70.3 million and $0.18 per share, respectively, in the fourth
quarter of 2024, after adjusting for items on a pre-tax basis such
as a non-cash $17.4 million foreign exchange loss, a $14.1 million
write-down of PP&E, a $10.3 million mark-to-market revaluation
gain on various instruments such as unrealized strategic copper
hedges, investments and stock based compensation, and a non-cash
loss of $2.5 million related to a quarterly revaluation of a closed
site environmental reclamation provision, among other items. This
compares to adjusted net earnings attributable to ownersi of $50.3
million, or $0.13 per share, in the third quarter of 2024.
In the fourth quarter, adjusted EBITDAi was
$257.3 million, a 25% increase compared to $206.2 million in the
third quarter of 2024 as higher copper and gold grades led to
increased sales volumes. Sales volumes would have been even higher
in the fourth quarter of 2024 if excess copper concentrate in Peru
was sold. Copper concentrate inventory levels totaled approximately
30,000 wet metric tonnes in Peru at the end of the quarter, higher
than normal levels of 15,000 wet metric tonnes because of the
strong production ramp-up late in the year. The excess copper
concentrate in Peru is expected to be sold in the first quarter of
2025.
In the fourth quarter of 2024, consolidated cash
costi per pound of copper produced, net of by-product credits, was
$0.45 compared to $0.18 in the third quarter of 2024, as higher
copper production more than offset higher mining, milling and
general and administrative (“G&A”) costs in the fourth quarter,
but by-product credits were lower on a per pound basis.
Consolidated sustaining cash costi per pound of copper produced,
net of by-product credits, was $1.37 in the fourth quarter of 2024
compared to $1.71 in the third quarter of 2024, with the decrease
driven by strong cost control and lower sustaining capital
expenditures in the fourth quarter.
Consolidated all-in sustaining cash costi per
pound of copper produced, net of by-product credits, was $1.53 in
the fourth quarter of 2024, lower than $1.95 in the third quarter
of 2024 mainly due to the same reason outlined above as well as
lower corporate G&A and regional cost in the fourth
quarter.
As at December 31, 2024, total liquidity was
$1,007.8 million, including $541.8 million in cash and cash
equivalents, $40.0 million in short-term investments as well as
undrawn availability of $426.0 million under the company’s
revolving credit facilities. Net debti declined to $525.7 million
at the end of 2024 compared to $1,037.7 million at the end of
2023.
Summary of Full Year
Results
Hudbay achieved its 2024 consolidated production
guidance for all metals and significantly exceeded the 2024
production guidance for gold. On a business unit stand-alone basis,
Peru exceeded the top end of the gold production guidance and
achieved the guidance ranges for all other metals. Manitoba
exceeded the top end of the gold and copper guidance ranges and
achieved the guidance ranges for all other metals. In British
Columbia, production of gold was within the guidance range, whereas
copper production was below the low end of guidance range as a
result of lower grades in stockpiled ore and reduced throughput
during the mill stabilization period.
Consolidated copper, gold and silver production
for the full year 2024 increased by 5%, 7% and 11%, respectively,
compared to the same period in 2023 primarily due to the
incremental production from Copper Mountain and higher throughput
and operating performance in Manitoba.
Cash generated from operating activities
increased to $666.2 million in 2024 from $476.9 million in 2023.
Operating cash flow before change in non-cash working capital
increased to a record $691.1 million in 2024 from $570.0 million in
2023. The increase in operating cash flow before changes in working
capital was primarily the result of higher metal prices and gold
sales volumes, as well as the incremental contribution margin from
the Copper Mountain mine. This was partially offset by a
significant increase in cash taxes paid of $132.5 million in 2024,
compared to $54.8 million in 2023, mainly at the Peru
operations.
Net earnings attributable to owners for 2024 was
$76.7 million, or $0.20 per share, compared to $66.4 million, or
$0.22 per share, in 2023. Full year 2024 net earnings were
positively impacted by increases in sales volumes and higher
realized prices for all metals partially offset by various non-cash
charges related to foreign exchange losses, write-offs of
previously capitalized PP&E, mark-to-market revaluation losses
on various instruments such as unrealized strategic copper hedges,
investments and share-based compensation and higher mining and
income tax expenses.
Adjusted net earnings attributable to ownersi
and adjusted net earnings per share attributable to ownersi for
2024 were $181.4 million and $0.48 per share, respectively, after
adjusting for items on a pre-tax basis such as a $27.4 million
write-down of PP&E, a $27.1 million mark-to-market revaluation
loss on various instruments such as the gold prepayment liability,
unrealized strategic copper and gold hedges, investments and stock
based compensation, a non-cash $21.0 million foreign exchange loss
and a non-cash gain of $3.5 million related to the revaluation of a
closed site environmental reclamation provision, among other items.
This compares to adjusted net earnings attributable to ownersi and
net earnings per share attributable to ownersi of $69.0 million and
$0.23 per share in 2023.
Adjusted EBITDAi was $822.5 million in 2024, a
27% increase compared to $647.8 million in 2023. The increase is
the result of higher realized metal prices and higher sales volumes
during the year.
Consolidated cash costi per pound of copper
produced, net of by-product credits, was $0.46, compared to $0.80
in 2023, which outperformed the twice-improved 2024 annual cost
guidance. The improvement was mainly the result of higher copper
production and higher gold by-product credits, partially offset by
higher mining, milling and G&A costs. Consolidated sustaining
cash costi per pound of copper produced, net of by-product credits,
of $1.62 in 2024 decreased from $1.72 in 2023 due to the same
reasons outlined above partially offset by higher cash sustaining
capital expenditures.
Consolidated all-in sustaining cash costi per
pound of copper produced, net of by-product credits, was $1.88 in
2024, slightly lower than $1.92 in 2023 as a result of the same
reasons outlined above, partially offset by higher corporate
selling and administrative costs primarily due to a revaluation of
share-based compensation associated with a higher share price.
Consolidated Financial Condition (in $ millions,
except net debt to adjusted EBITDA ratio) |
Dec. 31, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Cash and cash equivalents and short-term investments |
581.8 |
483.3 |
249.8 |
Total long-term debt |
1,107.5 |
1,108.9 |
1,287.5 |
Net debt1 |
525.7 |
625.6 |
1,037.7 |
Working capital2 |
511.3 |
434.3 |
135.8 |
Total assets |
5,487.6 |
5,508.1 |
5,312.6 |
Equity3 |
2,553.2 |
2,537.8 |
2,096.8 |
Net debt to adjusted EBITDA1,4 |
0.6 |
0.7 |
1.6 |
1 Net debt and net debit to adjusted EBITDA are non-GAAP financial
performance measures with no standardized definition under IFRS.
For further information, please see the "Non-GAAP Financial
Performance Measures" section of this news release. |
2 Working capital is determined as total current assets less total
current liabilities as defined under IFRS and disclosed on the
consolidated financial statements. |
3 Equity attributable to owners of the company. |
4 Net debt to adjusted EBITDA for the 12 month period. |
|
Consolidated Financial Performance |
Three Months Ended |
Year Ended |
(in $ millions) |
Dec. 31,2024 |
Sep. 30,2024 |
Dec. 31,2023 |
Dec. 31,2024 |
Dec. 31,2023 |
Revenue |
584.9 |
485.8 |
602.2 |
2,021.2 |
1,690.0 |
Cost of sales |
400.5 |
346.0 |
405.4 |
1,467.4 |
1,297.5 |
Earnings before tax |
103.7 |
79.7 |
81.0 |
251.6 |
151.8 |
Net earnings |
19.3 |
50.4 |
33.5 |
67.8 |
69.5 |
Net earnings attributable to owners |
21.2 |
49.8 |
30.7 |
76.7 |
66.4 |
Basic and diluted attributable earnings per share |
0.05 |
0.13 |
0.10 |
0.20 |
0.22 |
Adjusted earnings attributable per share1 |
0.18 |
0.13 |
0.20 |
0.48 |
0.23 |
Operating cash flow before change in non-cash working capital |
231.5 |
186.3 |
246.5 |
691.1 |
570.0 |
Adjusted EBITDA1 |
257.3 |
206.2 |
274.4 |
822.5 |
647.8 |
1 Adjusted earnings attributable per share and adjusted EBITDA are
non-GAAP financial performance measures with no standardized
definition under IFRS. For further information, please see the
“Non-GAAP Financial Performance Measures” section. |
|
Consolidated Production and Cost
Performance5 |
Three Months Ended |
Year Ended |
|
Dec. 31,2024 |
Sep. 30, 2024 |
Dec. 31,2023 |
Dec. 31,2024 |
Dec. 31,20234 |
Contained metal in concentrate and doré
produced1 |
|
|
Copper |
tonnes |
43,262 |
31,354 |
45,450 |
137,943 |
131,691 |
Gold |
ounces |
94,161 |
89,073 |
112,776 |
332,240 |
310,429 |
Silver |
ounces |
1,311,658 |
985,569 |
1,197,082 |
3,983,851 |
3,575,234 |
Zinc |
tonnes |
8,385 |
8,069 |
5,747 |
33,339 |
34,642 |
Molybdenum |
tonnes |
195 |
362 |
397 |
1,323 |
1,566 |
Payable metal sold |
|
|
Copper |
tonnes |
37,927 |
27,760 |
44,006 |
125,094 |
124,996 |
Gold2 |
ounces |
92,734 |
73,232 |
104,840 |
335,342 |
276,893 |
Silver2 |
ounces |
1,150,518 |
663,413 |
1,048,877 |
3,549,816 |
3,145,166 |
Zinc |
tonnes |
5,261 |
8,607 |
7,385 |
25,120 |
28,799 |
Molybdenum |
tonnes |
182 |
343 |
468 |
1,287 |
1,462 |
Consolidated cash cost per pound of copper
produced3 |
|
Cash cost |
$/lb |
0.45 |
0.18 |
0.16 |
0.46 |
0.8 |
Sustaining cash cost |
$/lb |
1.37 |
1.71 |
1.09 |
1.62 |
1.72 |
All-in sustaining cash cost |
$/lb |
1.53 |
1.95 |
1.31 |
1.88 |
1.92 |
1 Metal reported in concentrate is prior to deductions associated
with smelter contract terms. |
2 Includes total payable gold and silver in concentrate and in doré
sold. |
3 Cash cost, sustaining cash cost and all-in sustaining cash cost
per pound of copper produced, net of by-product credits, gold cash
cost, sustaining cash cost per ounce of gold produced, net of
by-product credits, are non-GAAP financial performance measures
with no standardized definition under IFRS. For further
information, please see the “Non-GAAP Financial Performance
Measures” section of this news release. |
4 As Copper Mountain was acquired on June 20, 2023, the production
from the Copper Mountain mine included in these consolidated
figures for the year ended December 31, 2023, represents the period
from acquisition date, June 20, 2023, through to year end December
31, 2023. |
5 Includes 100% of Copper Mountain mine production. Hudbay owns 75%
of Copper Mountain mine. |
|
Peru Operations Review
Peru Operations |
Three Months Ended |
Year Ended |
|
|
Dec. 31,2024 |
Sep. 30,2024 |
Dec. 31,2023 |
Dec. 31,2024 |
Dec. 31,2023 |
Constancia ore mined1 |
tonnes |
4,186,058 |
3,022,931 |
973,176 |
15,046,190 |
9,265,954 |
Copper |
% |
0.40 |
0.36 |
0.30 |
0.34 |
0.32 |
Gold |
g/tonne |
0.04 |
0.04 |
0.04 |
0.04 |
0.04 |
Silver |
g/tonne |
3.88 |
3.20 |
2.26 |
3.08 |
2.53 |
Molybdenum |
% |
0.02 |
0.02 |
0.01 |
0.01 |
0.01 |
Pampacancha ore mined1 |
tonnes |
4,037,264 |
1,777,092 |
5,556,613 |
9,317,499 |
14,756,416 |
Copper |
% |
0.63 |
0.48 |
0.56 |
0.55 |
0.51 |
Gold |
g/tonne |
0.38 |
0.27 |
0.32 |
0.32 |
0.33 |
Silver |
g/tonne |
6.43 |
6.23 |
4.84 |
5.61 |
4.28 |
Molybdenum |
% |
0.00 |
0.01 |
0.01 |
0.01 |
0.01 |
Total ore
mined |
tonnes |
8,223,322 |
4,800,023 |
6,529,789 |
24,363,689 |
24,022,370 |
Strip ratio2 |
|
1.22 |
2.62 |
1.26 |
1.78 |
1.51 |
Ore milled |
tonnes |
7,999,453 |
8,137,248 |
7,939,044 |
31,933,624 |
30,720,929 |
Copper |
% |
0.48 |
0.32 |
0.48 |
0.36 |
0.39 |
Gold |
g/tonne |
0.20 |
0.11 |
0.25 |
0.14 |
0.16 |
Silver |
g/tonne |
5.28 |
3.70 |
4.20 |
3.84 |
3.62 |
Molybdenum |
% |
0.01 |
0.01 |
0.01 |
0.01 |
0.01 |
Copper recovery |
% |
87.8 |
82.6 |
87.4 |
85.0 |
84.2 |
Gold
recovery |
% |
73.3 |
68.1 |
77.6 |
70.7 |
71.8 |
Silver
recovery |
% |
71.4 |
67.0 |
78.0 |
68.8 |
70.0 |
Molybdenum recovery |
% |
37.1 |
39.0 |
33.6 |
41.7 |
35.8 |
Contained metal in concentrate |
|
|
|
|
|
Copper |
tonnes |
33,988 |
21,220 |
33,207 |
99,001 |
100,487 |
Gold |
ounces |
38,079 |
20,331 |
49,418 |
98,226 |
114,218 |
Silver |
ounces |
969,502 |
648,209 |
836,208 |
2,708,262 |
2,505,229 |
Molybdenum |
tonnes |
195 |
362 |
397 |
1,323 |
1,566 |
Payable metal sold |
|
|
|
|
|
Copper |
tonnes |
28,775 |
18,803 |
31,200 |
88,138 |
96,213 |
Gold |
ounces |
37,459 |
9,795 |
38,114 |
103,364 |
97,176 |
Silver |
ounces |
824,613 |
365,198 |
703,679 |
2,343,820 |
2,227,419 |
Molybdenum |
tonnes |
182 |
343 |
468 |
1,287 |
1,462 |
Combined unit operating cost3,4 |
$/tonne |
15.25 |
12.78 |
12.24 |
12.91 |
12.47 |
Cash cost4 |
$/lb |
1.00 |
1.80 |
0.54 |
1.18 |
1.07 |
Sustaining cash cost4 |
$/lb |
1.48 |
2.78 |
1.21 |
1.86 |
1.81 |
1 Reported tonnes and grade for ore mined are estimates based on
mine plan assumptions and may not reconcile fully to ore
milled. |
2 Strip ratio is calculated as waste mined divided by ore
mined. |
3 Reflects combined mine, mill and G&A costs per tonne of ore
milled. Reflects the deduction of expected capitalized stripping
costs. |
4 Combined unit operating cost, cash cost and sustaining cash cost
per pound of copper produced, net of by-product credits, are
non-GAAP financial performance measures with no standardized
definition under IFRS. For further information, please see the
“Non-GAAP Financial Performance Measures” section of this news
release. |
|
During the fourth quarter of 2024, the Peru
operations produced 33,988 tonnes of copper, 38,079 ounces of gold,
969,502 ounces of silver and 195 tonnes of molybdenum. Production
of copper, gold and silver significantly increased by 60%, 87% and
50%, respectively, compared to the third quarter of 2024. This
significant increase was a result of higher grades from Pampacancha
as the planned stripping program was successfully completed in the
third quarter, as well as a larger portion of ore mill feed coming
from Pampacancha.
Full year copper, silver and molybdenum
production in 2024 achieved the annual guidance ranges, and gold
production exceeded the upper end of the guidance range by 6%. Full
year production of copper, gold and molybdenum in 2024 was 99,001
tonnes, 98,226 ounces, and 1,323 tonnes, respectively, representing
a decrease of 1%, 14% and 16%, respectively, from 2023 primarily
due to lower grades since more material was mined from Constancia
and reclaimed from the stockpile compared with the prior year,
partially offset by higher throughput. Production of silver was
2,708,262 ounces, representing an increase of 8% from the
comparative 2023 period due to higher silver grades from
Pampacancha.
Total ore mined in the fourth quarter of 2024
increased 71% compared to the third quarter of 2024, in line with
the mine plan as the team completed the planned stripping program
at Pampacancha in late September. Ore mined from Pampacancha
increased to 4.0 million tonnes in the fourth quarter of 2024
following the stripping program to enable access to higher copper
and gold grade ore of 0.63% and 0.38 grams per tonne, respectively.
Full year ore mined in 2024 was slightly higher than 2023 despite
periods of intensive stripping in 2024, primarily as a result of
the effective use of mobile equipment and higher fleet
availability.
Peru operations continued to benefit from strong
and consistent mill throughput in 2024, averaging approximately
87,000 tonnes processed per day in the fourth quarter and full year
of 2024. Ore milled during the fourth quarter of 2024 was 2% lower
than the third quarter, mainly due to a planned semi-annual mill
maintenance shutdown in the fourth quarter. Milled copper, gold and
silver grades increased by 50%, 82% and 43%, respectively, in the
fourth quarter compared to the third quarter of 2024, as a result
of the higher-grade ore feed from Pampacancha. Milled gold grades
were better than expected as additional gold benches in the
Pampacancha pit were mined during the fourth quarter of 2024, ahead
of schedule.
The Constancia mill achieved record copper
recoveries of 88% in the fourth quarter of 2024, higher than the
previous record of 87% achieved in the fourth quarter of 2023.
Recoveries of gold and silver during the fourth quarter of 2024
were 73% and 71%, respectively, representing an increase of 8% and
7%, respectively, compared to the third quarter of 2024 and
remained in line with the metallurgical models for the ore types
that were being processed.
Combined mine, mill and G&A unit operating
costi in the fourth quarter of 2024 was $15.25 per tonne, 19%
higher than the third quarter primarily due to higher mining and
milling costs and higher G&A costs including profit sharing, in
addition to lower tonnes processed with the planned semi-annual
mill maintenance shutdown in the fourth quarter. Combined mine,
mill and G&A unit operating costs for the full year were $12.91
per tonne, compared to $12.47 per tonne in 2023, as higher mining
and G&A costs were partially offset by higher throughput and
slightly lower milling costs.
Cash costi per pound of copper produced, net of
by-product credits, in the fourth quarter of 2024 was $1.00, a 44%
decrease compared to $1.80 in the third quarter of 2024 as a result
of higher copper production and higher by-product credits,
partially offset by higher mining, milling and G&A costs. Full
year 2024 cash costi per pound of copper produced, net of
by-product credits, of $1.18 better than expected and outperformed
the low end of the cost guidance range by 6%.
Sustaining cash costi per pound of copper
produced, net of by-product credits, was $1.48 in the fourth
quarter of 2024, a 47% decrease compared to $2.78 in the third
quarter as a result of similar factors affecting cash cost and
lower sustaining capital expenditures. On a full year basis,
sustaining cash costi per pound of copper produced, net of
by-products credits, was $1.86, marginally above $1.81 in 2023, due
to the same reasons described for the cash cost variance over the
full year period.
Approximately 30,000 wet metric tonnes of copper
concentrate in Peru were unsold as of December 31, 2024, which is
approximately 15,000 wet metric tonnes above normal levels and
resulted from the strong production ramp-up that occurred late in
the quarter. The excess copper concentrate is expected to be sold
in the first quarter of 2025.
The company continues to evaluate opportunities
to further increase mill throughput after the Peruvian Ministry of
Energy and Mines approved a regulatory change in June 2024 to allow
mining companies in Peru to increase throughput by up to 10% above
permitted levels.
Manitoba Operations Review
Manitoba Operations |
Three Months Ended |
Year Ended |
|
|
Dec. 31, 2024 |
Sep. 30,2024 |
Dec. 31,2023 |
Dec. 31,2024 |
Dec. 31,2023 |
Lalor |
|
|
|
|
|
|
Ore
mined |
tonnes |
422,454 |
411,295 |
372,384 |
1,626,935 |
1,526,729 |
Gold |
g/tonne |
4.61 |
5.45 |
5.92 |
4.68 |
4.74 |
Copper |
% |
0.95 |
0.91 |
1.04 |
0.85 |
0.86 |
Zinc |
% |
2.95 |
2.73 |
2.20 |
2.84 |
3.00 |
Silver |
g/tonne |
31.91 |
30.45 |
28.92 |
27.14 |
24.51 |
New Britannia |
|
|
|
|
|
Ore milled |
tonnes |
185,592 |
191,298 |
165,038 |
715,198 |
596,912 |
Gold |
g/tonne |
5.99 |
6.77 |
8.03 |
6.29 |
6.76 |
Copper |
% |
1.17 |
0.93 |
1.46 |
1.04 |
1.03 |
Zinc |
% |
1.08 |
1.12 |
0.85 |
0.99 |
0.84 |
Silver |
g/tonne |
33.97 |
30.24 |
27.97 |
27.78 |
25.11 |
Gold recovery1 |
% |
90.2 |
90.0 |
89.0 |
89.7 |
88.6 |
Copper recovery |
% |
91.3 |
92.8 |
91.6 |
93.6 |
93.3 |
Silver recovery1 |
% |
79.6 |
79.9 |
83.2 |
80.9 |
81.5 |
Stall Concentrator |
|
|
|
|
|
Ore milled |
tonnes |
222,004 |
222,621 |
228,799 |
893,510 |
965,567 |
Gold |
g/tonne |
3.36 |
4.23 |
4.22 |
3.42 |
3.45 |
Copper |
% |
0.73 |
0.89 |
0.73 |
0.71 |
0.74 |
Zinc |
% |
4.62 |
4.12 |
3.20 |
4.33 |
4.36 |
Silver |
g/tonne |
29.90 |
30.20 |
28.63 |
26.54 |
24.19 |
Gold recovery |
% |
69.6 |
70.5 |
67.5 |
68.6 |
64.8 |
Copper recovery |
% |
84.4 |
88.3 |
92.0 |
87.4 |
90.4 |
Zinc recovery |
% |
81.7 |
88.1 |
78.5 |
86.2 |
82.2 |
Silver recovery |
% |
55.1 |
57.8 |
61.8 |
56.8 |
61.4 |
Total contained metal in concentrate and
doré2 |
|
|
Gold |
ounces |
51,438 |
62,468 |
59,863 |
214,225 |
187,363 |
Copper |
tonnes |
3,347 |
3,398 |
3,735 |
12,536 |
12,154 |
Zinc |
tonnes |
8,385 |
8,069 |
5,747 |
33,339 |
34,642 |
Silver |
ounces |
283,223 |
281,397 |
255,579 |
995,090 |
851,723 |
Total payable metal sold |
|
|
|
|
|
Gold |
ounces |
50,239 |
57,238 |
63,635 |
212,243 |
171,297 |
Copper |
tonnes |
3,321 |
2,931 |
3,687 |
11,602 |
10,708 |
Zinc |
tonnes |
5,261 |
8,607 |
7,385 |
25,120 |
28,779 |
Silver |
ounces |
282,158 |
244,974 |
246,757 |
956,460 |
728,304 |
Combined unit operating cost3,4 |
C$/tonne |
233 |
211 |
216 |
226 |
217 |
Gold cash cost4 |
$/oz |
607 |
372 |
434 |
606 |
727 |
Gold sustaining cash cost4 |
$/oz |
908 |
553 |
788 |
868 |
1,077 |
1 Gold and silver
recovery includes total recovery from concentrate and doré. |
2 Metal reported
in concentrate is prior to deductions associated with smelter
terms. |
3 Reflects
combined mine, mill and G&A costs per tonne of ore milled. |
4 Combined unit
operating cost, cash cost and sustaining cash cost per ounce of
gold produced, net of by-product credits, are non-GAAP financial
performance measures with no standardized definition under IFRS.
For further information, please see the “Non-GAAP Financial
Performance Measures” section of this news release. |
|
The Snow Lake operations continued to deliver
strong operational performance during the fourth quarter of 2024,
exceeding expectations in both production and efficiency. Record
annual gold production of 214,225 ounces in 2024 was achieved
through a combination of higher metallurgical recoveries at the New
Britannia and Stall mills, despite processing lower gold grades
year-over-year, and the strategic allocation of more gold ore feed
to the New Britannia mill. This success reflects the positive
impact of ongoing continuous improvement initiatives.
The Manitoba operations produced 51,438 ounces
of gold, 3,347 tonnes of copper, 8,385 tonnes of zinc and 283,223
ounces of silver during the fourth quarter of 2024. Compared to the
third quarter of 2024, zinc and silver increased by 4% and 1%,
respectively, while production of gold and copper declined by 18%
and 2%, respectively, from the record levels achieved in the third
quarter. For the full year 2024, production of gold, copper and
silver increased by 14%, 3% and 17%, respectively, compared to 2023
mainly due to higher production from gold and copper-gold zones and
better than expected gold grades. Zinc production in 2024 decreased
by 4%, aligned with forecasted production and the strategy to mine
more gold ore at Lalor. Full year 2024 gold and copper production
both exceeded the upper end of the guidance range by 7% and 4%,
respectively. Zinc production was in line with the annual guidance
range, whereas silver production was at the top end of guidance
range.
The Lalor mine achieved strong production
results in the fourth quarter, achieving an average of 4,600 tonnes
per day, marking the highest quarterly ore production in 2024.
Total ore mined in the fourth quarter of 2024 was 3% higher than
the third quarter of 2024, and total ore mined in the full year
2024 was 7% higher than the prior year. The operations saw
significant improvements in ore production and precious metal grade
quality throughout 2024. These changes align with improvements in
mining techniques, most notably in longhole muck fragmentation, and
anticipated higher grade precious metal sequences. Gold grades of
4.61 grams per tonne in the fourth quarter of 2024 and 4.68 grams
per tonne in the full year 2024 were better than expected.
The New Britannia mill had another quarter of
exceptional performance with the mill operating consistently above
nameplate capacity, achieving an average throughput of
approximately 2,020 tonnes per day in the fourth quarter of 2024.
Plant availability remained strong, supported by ongoing
low-capital projects aimed at further increasing throughput while
maintaining targeted gold recoveries of 90%. New Britannia
recoveries of gold and silver in the fourth quarter of 2024 were
90% and 80%, respectively, consistent with the prior quarter.
Copper recovery in the fourth quarter of 2024 was 91%, slightly
lower than the copper recoveries in the third quarter of 2024 with
lower copper grade feed directed to New Britannia. Full year 2024
total ore milled at New Britannia was 20% higher than 2023,
reflecting the consistently strong performance throughout 2024 as a
result of continuous improvement efforts.
At the Stall mill, there was a slight reduction
in throughput as more ore was diverted to New Britannia. Benefits
from recent recovery improvement programs continue to be realized
with gold recoveries exceeding prior year figures. The lower
throughput at Stall is aligned with the company’s strategy to
allocate more Lalor ore feed to New Britannia, as noted above. The
Stall mill achieved gold recoveries of 70% in the fourth quarter,
reflecting benefits from recent recovery improvement programs, and
consistent with the third quarter of 2024.
Combined mine, mill and G&A unit operating
costi was C$233 per tonne in the fourth quarter of 2024 and C$226
per tonne in the full year 2024, which increased by 4% compared to
2023. The marginal increase in operating costs year-over-year was
largely the result of more tonnes being processed at New Britannia
compared to Stall which operates at a lower cost per unit.
Manitoba’s cash costi per ounce of gold
produced, net of by-product credits, in the fourth quarter of 2024
was $607, an increase compared to the third quarter of 2024,
primarily due to lower gold production and higher profit sharing
costs but remained better than expected as a result of continued
operating efficiencies and focus on strong cost control. Cash costi
per ounce of gold produced, net of by-product credits, for the full
year 2024 was $606 per ounce, a 17% decrease from 2023 primarily
due to higher gold production and by-product credits, partially
offset by higher mining, milling and G&A costs resulting from
higher employee profit sharing costs.
Sustaining cash costi per ounce of gold
produced, net of by-product credits, in the fourth quarter of 2024
was $908, an increase from the third quarter of 2024, primarily due
to the same factors affecting cash cost and higher sustaining
capital costs during the quarter. Annual sustaining cash costi per
ounce of gold produced, net of by-product credits, was $868 per
ounce in 2024, a decrease of 19% from 2023 primarily due to the
same factors affecting cash cost, together with lower sustaining
capital expenditures compared to the prior year.
Progress on the 1901 deposit continued via the
exploration drift and the recently started haulage drift, which
achieved high advance rates in the fourth quarter of 2024, laying
the groundwork to support full production from the 1901 deposit by
2027. With the drifts performing well, mining of first ore is
scheduled for the second quarter of 2025.
The Manitoba business unit continues to
prioritize strong relationships with Indigenous communities.
Several meetings with Indigenous Nations were held to discuss
future exploration and geophysical programs within their
Traditional Territories. To date, Hudbay has received letters of
support for geophysical programs, and positive progress is being
made in negotiating exploration agreements. In February 2025,
Hudbay signed its first-ever exploration agreement with the
Kiciwapa Cree Nation.
British Columbia Operations
Review
British Columbia
Operations5
|
Three Months Ended |
Year Ended5 |
|
|
Dec. 31,2024 |
Sep. 30,2024 |
Dec. 31,2023 |
Dec. 31,2024 |
Dec. 31,2023 |
Ore mined1 |
tonnes |
2,374,044 |
3,098,863 |
2,627,398 |
11,360,125 |
6,975,389 |
Strip ratio2 |
|
7.36 |
6.05 |
5.34 |
5.98 |
3.82 |
Ore milled |
tonnes |
2,880,927 |
3,363,176 |
3,261,891 |
12,656,679 |
6,862,152 |
Copper |
% |
0.26 |
0.24 |
0.33 |
0.25 |
0.35 |
Gold |
g/tonne |
0.09 |
0.09 |
0.06 |
0.08 |
0.07 |
Silver |
g/tonne |
0.92 |
0.73 |
1.36 |
0.96 |
1.36 |
Copper recovery |
% |
79.5 |
84.1 |
78.8 |
82.4 |
79.7 |
Gold recovery |
% |
55.8 |
67.3 |
54.1 |
60.5 |
55.9 |
Silver recovery |
% |
69.0 |
71.2 |
73.8 |
71.8 |
73.0 |
Total contained metal in concentrate |
|
|
|
|
Copper |
tonnes |
5,927 |
6,736 |
8,508 |
26,406 |
19,050 |
Gold |
ounces |
4,644 |
6,274 |
3,495 |
19,789 |
8,848 |
Silver |
ounces |
58,933 |
55,963 |
105,295 |
280,499 |
218,282 |
Total payable metal sold |
|
|
|
|
|
Copper |
tonnes |
5,831 |
6,026 |
9,119 |
25,354 |
18,075 |
Gold |
ounces |
5,036 |
6,199 |
3,091 |
19,735 |
8,420 |
Silver |
ounces |
43,747 |
53,241 |
98,441 |
249,536 |
189,443 |
Combined unit operating cost3,4 |
C$/tonne |
23.22 |
15.58 |
20.90 |
20.39 |
21.38 |
Cash cost4 |
$/lb |
3.00 |
1.81 |
2.67 |
2.74 |
2.49 |
Sustaining cash cost4 |
$/lb |
5.76 |
5.06 |
3.93 |
5.29 |
3.41 |
1 Reported tonnes
and grade for ore mined are estimates based on mine plan
assumptions and may not reconcile fully to ore milled. |
2 Strip ratio is
calculated as waste mined divided by ore mined. |
3 Reflects
combined mine, mill and G&A costs per tonne of ore milled.
Reflects the deduction of expected capitalized stripping
costs. |
4 Combined unit
operating cost, cash cost and sustaining cash cost per pound of
copper produced, net of by-product credits, are non-GAAP financial
performance measures with no standardized definition under IFRS.
For further information, please see the “Non-GAAP Financial
Performance Measures” section of this news release. |
5 Includes 100%
of Copper Mountain mine production, Hudbay owns 75% of Copper
Mountain mine. As Copper Mountain was acquired on June 20, 2023,
the December 31, 2023 annual figures in the table above represents
the period from the acquisition date, through to the end of the
fourth quarter of 2023. |
|
Since acquiring Copper Mountain in June 2023,
Hudbay has been focused on advancing operational stabilization
plans, including opening up the mine by re-activating the full
mining fleet, adding additional haul trucks, adding additional
mining faces, optimizing the ore feed to the plant and implementing
plant improvement initiatives that mirror Hudbay's successful
processes at Constancia. These stabilization plans have
successfully increased the total tonnes moved and resulted in
stronger mill performance as demonstrated by high mill availability
of 92% and copper recoveries of 82% in 2024, compared to 85% and
80%, respectively, in 2023.
During the fourth quarter of 2024, the British
Columbia operations produced 5,927 tonnes of copper, 4,644 ounces
of gold and 58,933 ounces of silver. Copper and gold production
declined by 12% and 26% respectively, while silver production
increased 5% compared to the third quarter of 2024, impacted by
lower mill throughput as a result of planned and unplanned
maintenance shutdowns. For the full year 2024, production of
copper, gold and silver was 26,406 tonnes, 19,789 ounces and
280,499 ounces, respectively. Full year 2024 gold production was in
line with the annual guidance range, whereas copper and silver
production were below the guidance ranges for each metal primarily
as a result of lower grades in stockpiled ore and lower throughput
during the ramp-up of stabilization and optimization efforts
throughout the year.
Total ore mined at Copper Mountain in the fourth
quarter of 2024 was 2.4 million tonnes, a decrease of 23% compared
to the third quarter of 2024 as ore stockpiles were utilized as ore
feed to the mill while the mine operation team increased waste
stripping activities. Total material moved of 21.4 million tonnes
in the quarter, continues to be at elevated levels with the
execution of the three-year accelerated stripping program to access
higher head grades. The focus in the fourth quarter of 2024 was on
mining efficiencies and operator recruitment to effectively utilize
the available haul truck fleet. As a result, total material moved
is expected to increase in 2025 as per the mine plan.
The mill processed 2.9 million and 12.7 million
tonnes of ore during the fourth quarter and the year ended December
31, 2024, respectively. Ore processed in the fourth quarter of 2024
was 14% lower than the third quarter of 2024, limited by both
planned and unplanned maintenance in the fourth quarter as well as
elevated clay material impacting the secondary crushing circuit. In
the fourth quarter of 2024, a number of initiatives were advanced
to address these issues and other identified constraints to improve
throughput to targeted levels. Several mill initiatives have been
implemented in 2024, including, recovery improvements,
reprogramming the mill expert system, installation of advanced
semi-autogenous grinding control instrumentation, redesigned SAG
liner package and updated operational procedures intended to remove
magnetite from the pebble stream. Progressive improvements are
expected to continue through 2025.
Milled copper grades during the fourth quarter
of 2024 were higher than the third quarter of 2024 but were
impacted by the operation continuing to draw on lower grade
stockpiled ore. Copper recoveries of 79.5% were slightly lower than
the prior quarter, impacted by the ramp-up periods following the
planned and unplanned maintenance shutdowns. Full year 2024 copper
recoveries of 82.4% were higher than 2023 and exceeded the mine
plan expectations, despite processing lower grades, as the
operations improved the regrind circuit constraint and implemented
the flotation operational strategy improvements, including reagent
selection and dose modification.
Combined mine, mill and G&A unit operating
costi in the fourth quarter of 2024 was C$23.22 per tonne milled,
higher than in the third quarter of 2024 primarily due to lower ore
milled as a result of the previously mentioned planned and
unplanned maintenance activities. For the full year 2024, combined
mine, mill and G&A unit operating costi was C$20.39 per tonne
milled, an improvement from C$21.38 per tonne milled in the second
half of 2023.
Cash costi and sustaining cash costi per pound
of copper produced, net of by-product credits, in the fourth
quarter of 2024 were $3.00 and $5.76, respectively, higher than the
third quarter of 2024 largely due to lower copper production and
higher mining and milling costs. Full year cash costi and
sustaining cash costi per pound of copper produced, net of
by-product credits, was $2.74 and $5.29, respectively in 2024. Full
year cash cost was above the higher end of the cost guidance range
driven by lower copper production as mentioned above.
At Copper Mountain in 2025, efforts will be
focused on optimizing the operation. Mining activities will
continue to execute the three-year accelerated stripping program
intended to bring higher grade ore into the mine plan. In January,
the company completed feasibility engineering to debottleneck and
increase the nominal plant capacity to its permitted capacity of
50,000 tonnes per day earlier than contemplated in the most recent
technical report. Further details on 2025 plans are outlined in the
annual guidance section below.
Significant Debt Reduction and
Transformed Balance Sheet
The company took several prudent measures in
2024 to significantly improve the strength of the balance sheet and
improve financial flexibility, including a total of $245 million of
combined debt repayments and gold prepayment liability
reductions:
- In May 2024, Hudbay completed a
successful equity offering issuing common shares for gross proceeds
of $402.5 million, resulting in net proceeds of $386.2 million
after transaction costs.
- Repurchased and retired a total of
$82.6 million of senior unsecured notes during the year.
- Repaid $100 million of prior
drawdowns under the revolving credit facilities during the
year.
- Fully repaid the gold prepay
facility, with $62.3 million in gold deliveries in 2024 and the
final payment completed in August.
- In November, the company
proactively extended its senior secured revolving credit facilities
by three years from October 2025 to November 2028 and negotiated
the flexibility to leave the 4.50% 2026 senior unsecured notes
outstanding to maturity as Copper World advances towards a
sanctioning decision in accordance with the 3-P plan. The newly
extended $450 million revolving credit facilities include an
improved pricing grid reflecting the enhanced financial position of
Hudbay and feature an opportunity to increase the facility by an
additional $150 million at its discretion during the four-year
tenor, providing additional financial flexibility.
Hudbay has successfully delivered six
consecutive quarters of meaningful free cash flow generation as a
result of recent brownfield investments, continuous operational
improvement efforts and steady cost control across the business. As
a result of the continued cash flow generation and the deleveraging
efforts, the company has substantially reduced net debt to $525.7
million as of December 31, 2024, as compared to $1,037.7 million at
the end of 2023. The net debt reduction, together with higher
levels of adjusted EBITDAi over the last twelve months, has
significantly improved the company’s net debt to adjusted EBITDA
ratioi to 0.6x compared to 1.6x at the end of 2023.
Copper World Permitting
Completed
On January 2, 2025, Hudbay received the Air
Quality Permit for the Copper World project from the Arizona
Department of Environmental Quality (“ADEQ”). The issuance of this
permit is a significant milestone in the advancement of the project
as it is the final major permit required for the development and
operation of Copper World. Copper World is expected to produce
85,000 tonnes of copper per year over an initial 20-year mine
life.
Hudbay has now received all three key state
permits required for Copper World development and operation:
- Mined Land Reclamation Plan
– Completed – the Mined Land Reclamation Plan was
initially approved by the Arizona State Mine Inspector in October
2021 and was subsequently amended and approved to reflect a larger
private land project footprint. This approval was challenged in
state court, but the challenge was dismissed in May 2023.
- Aquifer Protection Permit –
Completed – the Aquifer Protection Permit was received on
August 29, 2024 from the ADEQ following a robust process that
included detailed analysis by the agency and Hudbay, along with a
public comment period that was completed in the second quarter of
2024.
- Air Quality Permit –
Completed – the Air Quality Permit was received on January
2, 2025 from the ADEQ following a similarly robust process,
including a public comment period that concluded in the third
quarter of 2024. An administrative appeal was filed by certain
opponents in late January, as expected, and the company is
confident the permit will be upheld, similar to the project’s other
state-level permits.
Hudbay received the Aquifer Protection Permit
and Air Quality Permit on schedule after a thorough public
consultation process, and it is pleased with the level of local
support it has received. The company looks forward to providing
significant benefits for the community and local economy in
Arizona. Once in production, Copper World is expected to be a
meaningful copper producer in the U.S. domestic copper supply
chain, which will be required to help secure growing U.S. metal
demand related to increased manufacturing capacity, infrastructure
development, increased energy independence, domestic battery supply
chain and strengthening the nation's security.
Now that the major permits for Copper World have
been received, Hudbay commenced a minority joint venture partner
process early in 2025. It is anticipated that any minority joint
venture partner would participate in the funding of definitive
feasibility study activities in 2025 as well as in the final
project design and construction for Copper World.
The sanctioning of Copper World is not expected
until 2026 based on current estimated timelines.
Bolstering Technical
Capabilities
As Hudbay advances its numerous brownfield and
greenfield growth opportunities within its portfolio, the company
has enhanced the senior management team with additional technical
expertise and expanded the U.S. team to build bench strength and
establish key leadership positions.
Hudbay’s Senior Vice President of the U.S.
Business Unit, Javier Del Rio, has been focusing his time solely on
leading the Copper World project, leveraging his project
development and operational expertise as the former head of
Hudbay’s South America Business Unit where he oversaw the
development and operation of the company’s flagship Constancia mine
in Peru. In addition, Warren Flannery, Hudbay’s Vice President of
Business Planning and Reclamation, relocated to Arizona in
September 2024 to take on the role of Vice President of Copper
World. In his new role, Mr. Flannery is leading the operational
readiness of Copper World as the company advances through
definitive feasibility study activities in 2025.
Adding to the U.S. expertise, in August 2024,
Hudbay hired Robert Comer as Executive Director, External Affairs
& Legal in Arizona. As an experienced attorney, Mr. Comer
brings more than 30 years of U.S. permitting and mining law
expertise. During his career, Mr. Comer has held senior leadership
positions with businesses and the federal government and has
successfully advanced numerous resource projects, including through
environmental and land use compliance, defending permits through
litigation, NEPA permitting and government relations. He is a
significant asset to Copper World as Hudbay continues to advance
towards a sanctioning decision in 2026.
After receiving all key permits and with
feasibility study activities underway, in February 2025, Hudbay
added to its U.S. team’s project development expertise with the
appointment of Kim Hackney as Project Director of Copper World. Mr.
Hackney is a project professional with over 40 years of extensive
experience in the mining industry having held several roles in
project and construction management, including managing owners
teams, EPCM projects and self-perform projects. He is recognized in
the industry for bringing projects online within budget and on
schedule, and his in-depth expertise includes global base and
precious metals projects located in North, Central and South
America, Canada, Africa, Australia, Indonesia, and Uzbekistan.
Hudbay also appointed John O’Shaughnessy as Vice
President, Business Development in February 2025 to provide expert
oversight and strategic leadership of the global mine planning
process. Mr. O’Shaughnessy has 25 years of mining expertise,
including numerous progressive engineering, operational and
leadership roles at Vale’s mining operations in Ontario and
Newfoundland and Labrador. He was most recently the North Atlantic
Lead for Vale’s Base Metals division where he led and deployed
strategic initiatives for the North Atlantic region. His broad
technical expertise further augments Hudbay’s technical bench
strength.
Hudbay Celebrates Major Milestone with
Millionth Ounce of Gold Recovered from Lalor Mine
At the end of 2024, Hudbay surpassed a total of
one million ounces of gold produced at the Lalor mine in Snow Lake,
Manitoba. This milestone reinforces the significant value the
company has unlocked by combining its exploration expertise,
processing infrastructure and operating efficiency to maximize gold
production at the Snow Lake operations. In 2024, the Snow Lake
operations achieved record annual gold production, exceeding the
top end of the gold production guidance range with 214,225 ounces
produced.
With approximately two million ounces of
contained gold in current mineral reserve estimates and another 1.4
million ounces of contained gold in inferred mineral resources,
Hudbay expects to continue to unlock significant value in Snow Lake
and looks forward to further growing the mineral resource base
through regional exploration as it continues to execute one of the
largest exploration programs in Snow Lake operating history.
Exploration Update
Large Exploration Drill Program Continues in
Snow Lake
In 2024, Hudbay completed the largest
exploration program in its history with the goal of extending known
mineralization near the Lalor deposit to further extend mine life
as well as to find a new anchor deposit within trucking distance of
the Snow Lake processing infrastructure. The 2024 program included
the largest geophysical program in Hudbay's history in Snow Lake,
with surface electromagnetic surveys detecting targets at more than
1,000 metres below surface and covering a 25 square-kilometre area
including the Cook Lake claims that had been previously untested by
modern deep geophysics.
At Lalor Northwest, follow-up drilling in the
second half of 2024 confirmed the potential for a new gold-copper
discovery located approximately 400 metres from the existing Lalor
underground infrastructure. Several new intersections have helped
establish the geometry of this new discovery, and we plan to
continue to drill Lalor Northwest in 2025.
At the regional Rail property, which was
acquired through the Rockcliff acquisition in 2023, the 2024 drill
program yielded new intersections of high-grade copper-gold
mineralization. These results will be combined with historical
drilling results on the property to update the geological model and
assess its economic potential.
2024 drilling at the 1901 deposit from the
exploration drift targeted down plunge extensions of the ore body.
Five step-out holes were drilled beyond the known extent of the
mineralization and all five holes have intersected visible
copper-gold mineralization. Additional planned drilling at 1901 in
2025 is expected to confirm and potentially extend the orebody
geometry and to convert inferred mineral resources in the gold
lenses to mineral reserves.
Hudbay continues to test a very strong deep
geophysical anomaly located at Cook Lake North, approximately six
kilometres from Lalor with drilling activities continuing
throughout the winter season.
Signed Exploration Agreement with First Nations
in Manitoba
In February 2025, Hudbay signed its first-ever
exploration agreement with the Kiciwapa Cree Nation, reflecting the
Company’s commitment to meaningful collaboration as the company
explores for new mineral resources in the Snow Lake and Flin Flon
regions.
Advancing Engineering Work for Flin Flon
Tailings Reprocessing
- Zinc Plant Tailings
– Metallurgical test work continues following positive
results from the initial confirmatory drill program completed in
2024 in the section of the tailings facility that was utilized by
the zinc plant for 25 years. The results confirmed the grades of
precious metals and critical minerals previously estimated from
historical zinc plant records. An early economic study to evaluate
the opportunity to reprocess the zinc plant tailings has confirmed
the potential for a technically viable reprocessing alternative,
and further engineering work is underway.
- Mill Tailings –
The company continues to advance metallurgical test work on the
opportunity to reprocess Flin Flon mill tailings where 100 million
tonnes of tailings were deposited over 90 years. An early economic
study on the mill tailings is planned.
Maria Reyna and Caballito Drill Permits Expected
in 2025
Hudbay controls a large, contiguous block of
mineral rights with the potential to host mineral deposits in close
proximity to the Constancia processing facility, including the past
producing Caballito property and the highly prospective Maria Reyna
property. The Company commenced early exploration activities at
Maria Reyna and Caballito after completing a surface rights
exploration agreement with the community of Uchucarcco in August
2022. As part of the drill permitting process, environmental impact
assessment applications were submitted for the Maria Reyna property
in November 2023 and for the Caballito property in April 2024. The
environmental impact assessment (EIA) for Maria Reyna was approved
by the government in June 2024 and the Caballito EIA was approved
in September 2024. This represents one of several steps in the
drill permitting process, which is expected to be completed in
2025.
New Britannia Demonstrates Successful
Capital Allocation to Maximize Risk-adjusted Returns
Hudbay has a proven track record of prudently
allocating capital to generate the highest risk-adjusted returns as
the company executes its growth strategy and advances its
world-class asset portfolio. As an example of this success, the
company has completed a post-project review of the brownfield
investment in the New Britannia mill refurbishment project in 2020
and 2021.
Hudbay acquired the New Britannia mill in 2015
for $12 million as a potential gold processing solution for the
high-grade Lalor gold and copper-gold ores by providing additional
processing capacity at the Snow Lake operations and allowing the
company to achieve higher gold recoveries of approximately 90%,
compared to 55% at the existing mill. After completing several
economic studies, the refurbishment project construction commenced
in early 2020 with an initial capital cost of $115 million and an
estimated unlevered IRR of 19%. The initial capital investment was
funded by a $115 million low-cost gold prepay facility entered into
in May 2020. Project construction was completed on time with mill
ramp-up and commissioning achieved in the fourth quarter of 2021.
The mill was refurbished with a nameplate design capacity of 1,500
tonnes per day, and has been consistently exceeding performance
expectations, achieving throughput levels of 1,650 tonnes per day
in 2023 and reaching record throughput levels of over 2,000 tonnes
per day in 2024. The project payback was achieved after 2.5 years,
and in August 2024, the gold prepay facility was fully repaid,
which has increased exposure to the current high gold price
environment and further improved cash flows. After three years of
operations, the unlevered IRR for the New Britannia gold mill
refurbishment project has now increased to 36% after adjusting for
the higher production rates, stronger gold prices and current
capital and operating costs.
2025 Guidance Reflects Stable Copper and
Gold Production, Leading Margins and the Advancement of Many
High-return Growth Opportunities
Hudbay’s key objectives for 2025 are to:
- Deliver strong copper and gold
production levels from diversified operating platform;
- Maintain strong operating cost
performance, achieving industry-leading margins;
- Generate strong cash flow to
further enhance Hudbay’s financial position to reinvest in
high-return brownfield projects and unlock industry-leading copper
growth pipeline;
- Maintain focus on financial
discipline with stringent capital allocation criteria to guide
discretionary spending and generate strong returns on invested
capital;
- Maintain record performance at the
New Britannia mill and continuous improvement initiatives
throughout the Snow Lake operations;
- Implement mill optimization
projects at Copper Mountain to drive improved operating
performance;
- Evaluate the potential to increase
mill throughput at Constancia with the installation of a pebble
crusher;
- Advance the Copper World project
through definitive feasibility studies and the remaining elements
of the 3-P plan required for sanctioning, including a potential
joint venture partnership;
- Drill the 1901 deposit from the new
underground access drift to test for gold and copper extensions and
upgrade resources;
- Advance plans to drill the
prospective Maria Reyna and Caballito properties near
Constancia;
- Execute extensive exploration
program on the large land package in Snow Lake to target new
discoveries to utilize excess capacity at the Stall mill and
further enhance production;
- Advance economic studies for the
reprocessing of Flin Flon tailings;
- Explore for new discoveries within
trucking distance of the Flin Flon processing facilities as part of
the exploration partnership with Marubeni;
- Continue to identify and evaluate
opportunities to further reduce greenhouse gas emissions and update
corporate targets based on further studies and the Copper Mountain
acquisition;
- Assess growth opportunities that
meet the company’s stringent strategic criteria and allocate
capital to pursue those opportunities that create sustainable value
for the company and its stakeholders; and
- As always, continue to operate
safely and sustainably, aligned with Hudbay’s purpose to ensure
that the company’s activities have a positive impact on its people,
its communities and its planet.
Hudbay’s annual production and operating cost
guidance, along with its annual capital and exploration expenditure
forecasts are discussed in detail below.
Production Guidance
Contained Metal in Concentrate and
Doré1 |
2025 Guidance |
Year Ended Dec. 31, 2024 |
2024 Guidance |
Peru |
|
|
|
|
Copper |
tonnes |
80,000 - 97,000 |
99,001 |
98,000 - 120,000 |
Gold |
ounces |
49,000 - 60,000 |
98,226 |
76,000 - 93,000 |
Silver |
ounces |
2,475,000 - 3,025,000 |
2,708,262 |
2,500,000 - 3,000,000 |
Molybdenum |
tonnes |
1,300 - 1,500 |
1,323 |
1,250 - 1,500 |
|
|
|
|
|
Manitoba |
|
|
|
|
Gold |
ounces |
180,000 - 220,000 |
214,225 |
170,000 - 200,000 |
Zinc |
tonnes |
21,000 - 27,000 |
33,339 |
27,000 - 35,000 |
Copper |
tonnes |
9,000 - 11,000 |
12,536 |
9,000 - 12,000 |
Silver |
ounces |
800,000 - 1,000,000 |
995,090 |
750,000 - 1,000,000 |
|
|
|
|
|
British Columbia2 |
|
|
|
|
Copper |
tonnes |
28,000 - 41,000 |
26,406 |
30,000 - 44,000 |
Gold |
ounces |
18,500 - 28,000 |
19,789 |
17,000 - 26,000 |
Silver |
ounces |
245,000 - 365,000 |
280,499 |
300,000 - 455,000 |
|
|
|
|
|
Total |
|
|
|
|
Copper |
tonnes |
117,000 - 149,000 |
137,943 |
137,000 - 176,000 |
Gold |
ounces |
247,500 - 308,000 |
332,240 |
263,000 - 319,000 |
Zinc |
tonnes |
21,000 - 27,000 |
33,339 |
27,000 - 35,000 |
Silver |
ounces |
3,520,000 - 4,390,000 |
3,983,851 |
3,550,000 - 4,455,000 |
Molybdenum |
tonnes |
1,300 - 1,500 |
1,323 |
1,250 - 1,500 |
1 Metal reported in concentrate and doré is prior to refining
losses or deductions associated with smelter terms. |
2 Represents 100% of the production from the Copper Mountain mine.
Hudbay holds a 75% interest in the Copper Mountain mine. |
|
On a consolidated basis, Hudbay successfully
achieved its 2024 production guidance for all metals. On a business
unit stand-alone basis, Peru exceeded the top end of the gold
production guidance range and achieved the guidance ranges for all
other metals. Manitoba exceeded the top end of the gold and copper
production guidance ranges and achieved the guidance ranges for all
other metals. In British Columbia, copper production was below the
low end of the guidance range as a result of lower grades in
stockpiled ore and reduced throughput during the mill stabilization
period, while gold production was within the guidance range.
In 2025, consolidated copper production is
forecasted to remain stable with 2024 levels at 133,000 tonnesii.
This is a result of slightly lower grades in Peru with a lower
portion of ore feed from Pampacancha as it depletes at the end of
2025, offset by higher expected production in British Columbia as a
result of mill throughput ramp-up throughout the year and higher
expected grades from the accelerated stripping schedule.
Consolidated gold production in 2025 is expected to decrease by 16%
to 277,750 ouncesii due to the accelerated mining of high-grade
gold benches at Pampacancha in 2024 and a focus on high grade gold
zones at Lalor in 2024, which resulted in both Peru and Manitoba
exceeding the top end of the 2024 gold production guidance
ranges.
In Peru, 2025 copper production is expected to
be 88,500 tonnesii, a decrease of 11% from 2024 with less mill ore
feed coming from Pampacancha in 2025. Gold production is expected
to be 54,500 ouncesii, lower than 2024 levels as additional high
grade gold benches were mined in late 2024, ahead of schedule,
resulting in gold production exceeding 2024 guidance levels. The
Pampacancha deposit is now expected to be depleted in early
December 2025 as opposed to October 2025, as the mine plan has
smoothed Pampacancha production throughout the year. Total mill ore
feed from Pampacancha is expected to be approximately 25% in 2025,
lower than the typical one-third in prior years as Pampacancha
approaches depletion. Peru’s 2025 production guidance reflects a
period of higher stripping activities at Pampacancha from January
until April, as well as regularly scheduled semi-annual mill
maintenance shutdowns at Constancia during the second and fourth
quarters of 2025.
In Manitoba, 2025 gold production is anticipated
to be 200,000 ouncesii, a decrease of 7% from the record levels
achieved in 2024. The impressive operating performance is expected
to continue into 2025, resulting in new 2025 gold production
guidance to be 8% higher than the previous 2025 guidance of 185,000
ouncesii. The production guidance anticipates Lalor operating at
4,500 tonnes per day supplemented by 45,000 tonnes of ore feed from
the 1901 deposit in 2025 as the company confirms the optimal mining
method. New Britannia mill throughput is expected to continue to
exceed expectations and operate at 2,000 tonnes per day in 2025,
far exceeding its original design capacity of 1,500 tonnes per day.
Zinc production for 2025 is expected to be 24,000 tonnesii, a 28%
decline from 2024 due to a lower grade base metal mining sequence
at Lalor.
In British Columbia, 2025 copper production is
expected to be 34,500 tonnesii, a 31% increase from 2024 as a
result of mill throughput ramp-up in the second half of the year
from several mill initiatives, including the planned conversion of
the third ball mill to a second SAG mill, and higher grades from
the accelerated stripping schedule. The mill throughput ramp-up
reflects the first half of 2025 at similar throughput levels seen
in 2024 with a significant increase in throughput in the second
half of 2025 concurrent with the completion of second SAG mill
project, ramping up towards 50,000 tonnes per day in 2026.
The company will release updated three-year
production outlook together with its annual mineral reserve and
resource update in March 2025.
Cash Cost Guidance
Copper remains the primary revenue contributor
on a consolidated basis, and therefore, consolidated cost guidance
has been presented as cash cost per pound of copper produced, net
of by-product credits. The company has also provided cash cost
guidance for each of its operations based on their respective
primary metal contributors.
Cash cost1 |
|
2025Guidance |
Year EndedDec. 31, 2024 |
2024Guidance |
Peru cash
cost per pound of copper2 |
$/lb |
1.35 - 1.65 |
1.18 |
1.25 - 1.60 |
Manitoba
cash cost per ounce of gold3 |
$/oz |
650 - 850 |
606 |
700 - 900 |
British Columbia cash cost per pound of copper4 |
$/lb |
2.45 - 3.45 |
2.74 |
2.00 - 2.50 |
Consolidated cash cost per pound of copper |
$/lb |
0.80 - 1.00 |
0.46 |
0.65 - 0.85Original (1.05-1.25) |
Consolidated sustaining cash cost per pound of copper |
$/lb |
2.25 - 2.65 |
1.62 |
1.75 – 2.20Original (2.00-2.45) |
1 Cash cost and
sustaining cash cost per pound of copper produced, net of
by-product credits, and cash cost per ounce of gold produced, net
of by-product credits, are non-GAAP financial performance measures
with no standardized definition under IFRS. For further
information, please see the “Non-GAAP Financial Performance
Measures” section of this news release. |
2 Peru cash cost
per pound of copper produced, net of by-product credits, assumes
by-product credits are calculated using the gold and silver
deferred revenue drawdown rates for the streamed ounces in effect
on December 31, 2024 and the following commodity prices for 2025:
$2,500 per ounce gold, $26.00 per ounce silver and $18.00 per pound
molybdenum. |
3 Manitoba cash
cost per ounce of gold produced, net of by-product credits, assumes
by-product credits are calculated using the following commodity
prices for 2025: $4.10 per pound copper, $1.20 per pound zinc,
$26.00 per ounce silver and an exchange rate of 1.35 C$/US$. |
4 British Columbia
cash cost per pound of copper produced, net of by-product credits,
assumes by-product credits are calculated using the following
commodity prices for 2025: $2,500 per ounce gold, $26.00 per ounce
silver and an exchange rate of 1.35 C$/US$. |
|
Consolidated cash cost in 2025 is expected to be
within $0.80 to $1.00 per pound of copper, net of by-product
credits, as the company continues to focus on maintaining strong
cost control across the business, driving industry-leading margins.
Sustaining cash cost in 2025 is expected to be within $2.25 to
$2.65 per pound of copper, net of by-product credits, reflecting
slightly lower copper production, lower by-product credits and
higher sustaining capital expenditures compared to 2024.
Copper cash cost in Peru is expected to be
between $1.35 to $1.65 per pound in 2025, reflecting steady unit
operating cost performance, offset by lower copper production and
by-product credits compared to 2024.
Gold cash cost in Manitoba is expected to be
between $650 to $850 per ounce in 2025, an increase compared to
2024 as a result of lower by-product credits and slightly lower
gold production but remains at industry-low levels driving strong
margins compared to current gold prices.
Copper cash cost in British Columbia is expected
to be between $2.45 to $3.45 per pound in 2025, an increase from
2024 due to higher mining costs related to more material moved as
the company executes the planned accelerated stripping program and
higher milling costs as it implements the mill improvement projects
this year, partially offset by higher copper production.
Capital Expenditure Guidance
Capital Expenditures1(in $ millions) |
2025 Guidance5 |
Year EndedDec. 31, 2024 |
2024 Guidance |
Sustaining capital2 |
|
|
|
Peru3 |
170.0 |
124.4 |
130.0 |
Manitoba |
60.0 |
45.6 |
55.0 |
British
Columbia – sustaining capital |
50.0 |
51.5 |
35.0 |
British Columbia – capitalized stripping3 |
85.0 |
71.6 |
70.0 |
Total sustaining capital |
365.0 |
293.1 |
290.0 |
Growth capital |
|
|
|
Peru |
25.0 |
0.8 |
2.0 |
Manitoba4 |
15.0 |
7.0 |
10.0 |
British
Columbia |
75.0 |
8.1 |
5.0 |
Arizona6 |
90.0 |
28.9 |
45.0 |
Total growth capital |
205.0 |
44.8 |
62.0 |
Capitalized exploration |
10.0 |
12.2 |
8.0 |
Total |
580.0 |
350.1 |
360.0 |
1 Excludes
capitalized costs not considered to be sustaining or growth capital
expenditures. |
2 Sustaining
capital guidance excludes right-of-use lease additions, additions
as a result of equipment financing arrangements and non-cash
deferred stripping. |
3 Includes
capitalized stripping and development costs. |
4 2025 Manitoba
growth capital partially funded by approximately $5 million in
Canadian Development Expense flow-through financing proceeds (2024
- $3 million). |
5 2025 Canadian
capital expenditures guidance is converted into U.S. dollars using
an exchange rate of 1.35 C$/US$. |
6 2024 Arizona
growth capital guidance was increased by an additional $25 million,
compared to the original 2024 guidance of $20 million, related to
early feasibility study work after receipt of the Aquifer
Protection Permit in August 2024. |
|
2024 total capital expenditures were $10 million
lower than the full year guidance of $360 million as lower growth
capital and certain sustaining capital deferrals were partially
offset by higher sustaining capital in British Columbia.
2025 total capital expenditures are expected to
be $580 million, reflecting an increase in growth capital spend as
the company reinvests in several high-return growth projects as
well as higher sustaining capital at the operations, including some
deferrals from 2024, as discussed below.
Peru 2025 sustaining capital expenditures are
expected to increase to $170 million as a result of higher
capitalized stripping, mine equipment purchases and capital
deferrals from 2024. Peru 2025 growth capital expenditures of $25
million in 2025 relates primarily to the installation of a pebble
crusher to increase mill throughput starting in 2026 and other mill
optimization initiatives.
Manitoba 2025 sustaining capital expenditures
are expected to increase to $60 million primarily as a result of
additional underground capitalized development costs. Manitoba 2025
growth capital spending of $15 million relates to the development
of the exploration and haulage drifts at the 1901 deposit. The 1901
growth expenditures will be partially funded by $5 million in
proceeds from a Canadian Development Expense premium flow-through
financing in December 2024. Manitoba spending guidance excludes
approximately $15 million of annual care and maintenance costs
related to the Flin Flon facilities in 2025, which are expected to
be recorded as other operating expenses.
British Columbia 2025 sustaining capital
expenditures are expected to remain consistent with 2024 at $50
million for mine and mill equipment capital. In addition, Hudbay
expects to spend approximately $85 million for capitalized
stripping costs in 2025 related to continued accelerated stripping
as part of the three-year stabilization and optimization plan at
Copper Mountain. British Columbia 2025 growth capital spending of
$75 million includes approximately $55 million for the conversion
of the third ball mill to a second SAG mill to increase throughput
rates starting in the second half of 2025 and ramping up to 50,000
tonnes per day in 2026.
Arizona 2025 growth capital spending of $90
million includes approximately $65 million in costs related to
de-risking activities and definitive feasibility studies for Copper
World and approximately $25 million of typical annual holding
costs.
Exploration Guidance
Exploration Expenditures(in $ millions) |
2025 Guidance |
Year EndedDec. 31, 2024 |
2024 Guidance |
Peru1 |
19.0 |
19.8 |
17.0 |
Manitoba2 |
30.0 |
26.4 |
23.0 |
British
Columbia |
1.0 |
1.6 |
2.0 |
Arizona and other |
— |
1.8 |
1.0 |
Total exploration expenditures |
50.0 |
49.6 |
43.0 |
Capitalized spending |
(10.0) |
(12.2) |
(8.0) |
Total exploration expense |
40.0 |
37.4 |
35.0 |
1 Peru exploration
expenditures exclude approximately $5 million of non-cash
amortization of community agreements for exploration
properties. |
2 Manitoba
exploration partially funded by approximately $7 million in
Canadian Exploration Expense flow-through financing proceeds for
2025 (2024 - $11 million). |
|
2025 exploration expenditures are expected to
total $40 million, in line with 2024 exploration spending as the
company continues to execute a multi-year extensive geophysics and
drilling program in Snow Lake to extend mine life and explore for
new discoveries, as described below.
In Manitoba, 2025 exploration activities will
focus on completing the largest geophysics program in Hudbay’s
history, including 800 kilometres of ground electromagnetic surveys
and an extensive airborne geophysics survey. The company plans to
complete underground and surface drilling at Lalor to increase
mineral resource and reserve estimates, including follow-up
drilling at the new Lalor Northwest discovery. Underground drilling
is planned for 1901 from the new exploration drift to upgrade and
expand the mineral reserve and resource estimates. In addition,
Hudbay plans to continue drilling activities at several regional
targets in 2025, including the Cook Lake properties, following up
on encouraging results in 2024. A portion of the 2025 Manitoba
exploration program will be funded by $7 million in proceeds from a
critical minerals premium flow-through financing completed in
December 2024. Hudbay issued 476,200 Canadian Exploration Expense
flow-through common shares at a price of C$22.05 per share,
representing a premium of approximately 65%.
In Peru, 2025 exploration activities will
continue to focus on final permitting and drill preparation for the
Maria Reyna and Caballito properties near Constancia.
Board Chair Transition
Effective January 1, 2025, Stephen A. Lang
stepped down as Chair of Hudbay's Board of Directors due to health
reasons. David S. Smith, current independent director, has been
appointed Chair of the Board. Mr. Lang, who was appointed Chair in
October 2019, will remain on the Board as an independent director.
Mr. Smith joined the Board as an independent director in May 2019,
bringing nearly 40 years of financial and executive leadership
experience in the mining sector. Mr. Smith is a corporate director
who has had a career on both the finance and the supply sides of
the mining business, with extensive international experience in the
acquisition, sale, development, financing and operations of base
and precious metal operations.
Dividend Declared
A semi-annual dividend of C$0.01 per share was
declared on February 18, 2025. The dividend will be paid out on
March 21, 2025 to shareholders of record as of close of business on
March 4, 2025.
Website Links
Hudbay: www.hudbay.com
Management’s Discussion and Analysis:
https://www.hudbayminerals.com/MDA225
Financial Statements:
https://www.hudbayminerals.com/FS225
Conference Call and Webcast
Date: |
Wednesday, February 19, 2025 |
Time: |
11:00 a.m. ET |
Webcast: |
www.hudbay.com |
Dial
in: |
647-484-8814 or
1-844-763-8274 |
|
Qualified Person and NI 43-101
The technical and scientific information in this
news release related to the company’s material mineral projects has
been approved by Olivier Tavchandjian, P. Geo, Senior Vice
President, Exploration and Technical Services. Mr. Tavchandjian is
a qualified person pursuant to National Instrument 43-101 –
Standards of Disclosure for Mineral Projects (“NI 43-101”).
For a description of the key assumptions,
parameters and methods used to estimate mineral reserves and
resources at Hudbay's material mineral properties, as well as data
verification procedures and a general discussion of the extent to
which the estimates of scientific and technical information may be
affected by any known environmental, permitting, legal title,
taxation, sociopolitical, marketing or other relevant factors,
please see the technical reports for the company’s material
properties as filed by Hudbay on SEDAR+ at www.sedarplus.ca and
EDGAR at www.sec.gov.
Non-GAAP Financial Performance
Measures
Adjusted net earnings (loss) attributable to
owners, adjusted net earnings (loss) per share attributable to
owners, adjusted EBITDA, net debt, cash cost, sustaining and all-in
sustaining cash cost per pound of copper produced, cash cost and
sustaining cash cost per ounce of gold produced, combined unit cost
and ratios based on these measures are non-GAAP performance
measures. These measures do not have a meaning prescribed by IFRS
and are therefore unlikely to be comparable to similar measures
presented by other issuers. These measures should not be considered
in isolation or as a substitute for measures prepared in accordance
with IFRS and are not necessarily indicative of operating profit or
cash flow from operations as determined under IFRS. Other companies
may calculate these measures differently.
Management believes adjusted net earnings (loss)
attributable to owners and adjusted net earnings (loss) per share
attributable to owners provides an alternate measure of the
company’s performance for the current period and gives insight into
its expected performance in future periods. These measures are used
internally by the company to evaluate the performance of its
underlying operations and to assist with its planning and
forecasting of future operating results. As such, the company
believes these measures are useful to investors in assessing the
company’s underlying performance. Hudbay provides adjusted EBITDA
to help users analyze the company’s results and to provide
additional information about its ongoing cash generating potential
in order to assess its capacity to service and repay debt, carry
out investments and cover working capital needs. Net debt is shown
because it is a performance measure used by the company to assess
its financial position. Net debt to adjusted EBITDA is shown
because it is a performance measure used by the company to assess
its financial leverage and debt capacity. Cash cost, sustaining and
all-in sustaining cash cost per pound of copper produced are shown
because the company believes they help investors and management
assess the performance of its operations, including the margin
generated by the operations and the company. Cash cost and
sustaining cash cost per ounce of gold produced are shown because
the company believes they help investors and management assess the
performance of its Manitoba operations. Combined unit cost is shown
because Hudbay believes it helps investors and management assess
the company’s cost structure and margins that are not impacted by
variability in by-product commodity prices.
The following tables provide detailed
reconciliations to the most comparable IFRS measures.
Adjusted Net Earnings (Loss) Reconciliation
|
Three Months Ended |
Year Ended |
(in $ millions) |
Dec. 31,2024 |
|
Sep. 30,2024 |
|
Dec. 31,2023 |
|
Dec. 31,2024 |
|
Dec. 31,2023 |
|
Net earnings for the period |
19.3 |
|
50.4 |
|
33.5 |
|
67.8 |
|
69.5 |
|
Tax expense |
84.4 |
|
29.3 |
|
47.5 |
|
183.8 |
|
82.3 |
|
Earnings before tax |
103.7 |
|
79.7 |
|
81.0 |
|
251.6 |
|
151.8 |
|
Adjusting items: |
|
|
|
|
|
|
|
|
|
|
Mark-to-market adjustments1 |
(10.3) |
|
5.2 |
|
12.7 |
|
27.1 |
|
22.1 |
|
Foreign exchange loss (gain) |
17.4 |
|
(3.3) |
|
4.2 |
|
21.0 |
|
5.3 |
|
Variable consideration adjustment - stream revenue and
accretion |
— |
|
— |
|
— |
|
4.0 |
|
(5.0) |
|
Acquisition related costs |
— |
|
— |
|
— |
|
— |
|
6.9 |
|
Premium paid on redemption of notes |
— |
|
— |
|
2.2 |
|
— |
|
2.2 |
|
Re-evaluation adjustment - environmental provision |
2.5 |
|
2.0 |
|
34.0 |
|
(3.5) |
|
(11.4) |
|
Inventory adjustments |
1.3 |
|
1.6 |
|
1.4 |
|
2.9 |
|
2.3 |
|
Insurance recovery |
— |
|
— |
|
(4.2) |
|
— |
|
(4.2) |
|
Value-added-tax recovery |
— |
|
— |
|
(3.9) |
|
— |
|
(3.9) |
|
Write off fair value of the Copper Mountain Bonds |
— |
|
— |
|
(1.0) |
|
— |
|
(1.0) |
|
Reduction of obligation to renounce flow-through share
expenditures, net of provisions |
1.0 |
|
(2.0) |
|
— |
|
(2.0) |
|
— |
|
Restructuring charges |
— |
|
— |
|
0.6 |
|
1.2 |
|
2.9 |
|
Write-down/loss on disposal of PP&E |
14.1 |
|
2.2 |
|
6.6 |
|
27.4 |
|
7.4 |
|
Adjusted earnings before income taxes |
129.7 |
|
85.4 |
|
133.6) |
|
329.7 |
|
175.4 |
|
Tax
expense |
(84.4) |
|
(29.3) |
|
(47.5) |
|
(183.8) |
|
(82.3) |
|
Tax impact on adjusting items |
23.4 |
|
(5.2) |
|
(14.8) |
|
30.8 |
|
(20.6) |
|
Adjusted net earnings |
68.7 |
|
50.9 |
|
71.3 |
|
176.7 |
|
72.5 |
|
Adjusted net earnings attributable to non-controlling
interest: |
|
|
|
|
|
|
|
|
|
|
Net loss
(earnings) for the period |
1.9 |
|
(0.6) |
|
(2.8) |
|
8.9 |
|
(3.2) |
|
Adjusting items, including tax impact |
(0.3) |
|
— |
|
0.4 |
|
(4.2) |
|
(0.3) |
|
Adjusted net earnings - attributable to
owners |
70.3 |
|
50.3 |
|
68.9 |
|
181.4 |
|
69.0 |
|
Adjusted net earnings ($/share) - attributable to
owners |
0.18 |
|
0.13 |
|
0.20 |
|
0.48 |
|
0.23 |
|
Basic weighted average number of common shares outstanding
(millions) |
394.0 |
|
393.6 |
|
349.1 |
|
376.8 |
|
310.8 |
|
1 Includes
changes in fair value of the gold prepayment liability, Canadian
junior mining investments, other financial assets and liabilities
at fair value through profit or loss and share-based compensation
expenses (recoveries). Also includes gains and losses on
disposition of investments. |
|
Adjusted EBITDA Reconciliation
|
Three Months Ended |
Year Ended |
(in $ millions) |
Dec. 31,2024 |
|
Sep. 30,2024 |
|
Dec. 31,2023 |
|
Dec. 31,2024 |
|
Dec. 31,2023 |
|
Net earnings for the period |
19.3 |
|
50.4 |
|
33.5 |
|
67.8 |
|
69.5 |
|
Add back: |
|
|
|
|
|
Tax expense |
84.4 |
|
29.3 |
|
47.5 |
|
183.8 |
|
82.3 |
|
Net finance expense |
34.4 |
|
26.0 |
|
48.9 |
|
148.7 |
|
145.3 |
|
Other expense |
22.1 |
|
7.9 |
|
10.6 |
|
57.4 |
|
38.3 |
|
Depreciation and amortization |
122.2 |
|
97.5 |
|
121.9 |
|
426.6 |
|
391.7 |
|
Amortization of deferred revenue and variable consideration
adjustment |
(26.2) |
|
(9.5) |
|
(26.5) |
|
(70.5) |
|
(77.3) |
|
Adjusting items (pre-tax): |
|
|
|
|
|
Re-evaluation adjustment - environmental provision |
2.5 |
|
2.0 |
|
34.0 |
|
(3.5) |
|
(11.4) |
|
Inventory adjustments |
1.3 |
|
1.6 |
|
1.4 |
|
2.9 |
|
2.3 |
|
Option agreement proceeds (Marubeni) |
— |
|
— |
|
— |
|
(0.4) |
|
— |
|
Realized loss on non-QP hedges |
(4.2) |
|
(2.1) |
|
— |
|
(8.9) |
|
— |
|
Share-based compensation expense 1 |
1.5 |
|
3.1 |
|
3.1 |
|
18.6 |
|
7.1 |
|
Adjusted EBITDA |
257.3 |
|
206.2 |
|
274.4 |
|
822.5 |
|
647.8 |
|
1 Share-based compensation expenses reflected in cost of sales and
selling and administrative expenses. |
|
Net Debt Reconciliation
(in $ millions) |
|
|
Dec. 31, 2024 |
|
Sep. 30, 2024 |
|
Dec. 31, 2023 |
|
Total long-term debt |
1,107.5 |
|
1,108.9 |
|
1,287.5 |
|
Less:
Cash and cash equivalents |
(541.8) |
|
(443.3) |
|
(249.8) |
|
Less: Short-term investments |
(40.0) |
|
(40.0) |
|
— |
|
Net debt |
525.7 |
|
625.6 |
|
1,037.7 |
|
(in $ millions, except net debt to adjusted EBITDA ratio) |
|
|
|
Net
debt |
525.7 |
|
625.6 |
|
1,037.7 |
|
Adjusted EBITDA (12 month period) |
822.5 |
|
839.8 |
|
647.8 |
|
Net debt to adjusted EBITDA |
0.6 |
|
0.7 |
|
1.6 |
|
|
Trailing Adjusted EBITDA |
Three Months Ended |
(in $ millions) |
Dec. 31, 2024 |
|
Sep. 30, 2024 |
|
Jun. 30, 2024 |
|
Mar. 31, 2024 |
|
Dec. 31, 2023 |
|
Profit
(loss) for the period |
19.3 |
|
50.4 |
|
(20.4) |
|
18.5 |
|
33.5 |
|
Add
back: |
|
|
|
|
|
Tax expense |
84.4 |
|
29.3 |
|
20.8 |
|
49.3 |
|
47.5 |
|
Net finance expense |
34.4 |
|
26.0 |
|
44.3 |
|
44.0 |
|
48.9 |
|
Other expenses |
22.1 |
|
7.9 |
|
11.2 |
|
16.3 |
|
10.6 |
|
Depreciation and amortization |
122.2 |
|
97.5 |
|
97.6 |
|
109.3 |
|
121.9 |
|
Amortization of deferred revenue and variable consideration
adjustment |
(26.2) |
|
(9.5) |
|
(11.5) |
|
(23.2) |
|
(26.5) |
|
Adjusting
items (pre-tax): |
|
|
|
|
|
Re-evaluation adjustment - environmental provision |
2.5 |
|
2.0 |
|
(2.7) |
|
(5.3) |
|
34.0 |
|
Inventory adjustments |
1.3 |
|
1.6 |
|
— |
|
— |
|
1.4 |
|
Realized loss on non-QP hedges |
(4.2) |
|
(2.1) |
|
(2.6) |
|
— |
|
— |
|
Post-employment plan curtailment |
— |
|
— |
|
— |
|
(0.4) |
|
— |
|
Share-based compensation expenses1 |
1.5 |
|
3.1 |
|
8.3 |
|
5.7 |
|
3.1 |
|
Adjusted EBITDA |
257.3 |
|
206.2 |
|
145.0 |
|
214.2 |
|
274.4 |
|
LTM2 |
822.5 |
|
839.8 |
|
|
|
|
1 Share-based compensation expense reflected in cost of sales and
administrative expenses. |
2 LTM (last twelve months) as of December 31, 2024 and September
30, 2024. Annual consolidated results may not be calculated based
on the amounts presented in this table due to rounding. |
|
Copper Cash Cost Reconciliation
Consolidated |
Three Months Ended |
Year Ended |
Net pounds of copper produced1 |
|
|
(in thousands) |
Dec. 31,2024 |
|
Sep. 30,2024 |
|
Dec. 31,2023 |
|
Dec. 31,2024 |
|
Dec. 31,2023 |
|
Peru |
74,931 |
|
46,782 |
|
73,209 |
|
218,260 |
|
221,536 |
|
Manitoba |
7,379 |
|
7,491 |
|
8,234 |
|
27,637 |
|
26,795 |
|
British Columbia2 |
13,067 |
|
14,850 |
|
18,755 |
|
58,215 |
|
41,995 |
|
Net pounds of copper produced |
95,377 |
|
69,123 |
|
100,198 |
|
304,112 |
|
290,326 |
|
1 Contained copper in concentrate. |
2 Includes 100% of Copper Mountain mine production, Hudbay owns 75%
of Copper Mountain mine. As Copper Mountain was acquired on June
20, 2023, the year ended December 31, 2023 includes production from
acquisition date. |
|
Consolidated |
Three Months Ended |
|
Dec. 31, 2024 |
|
Sep. 30, 2024 |
|
Dec. 31, 2023 |
|
Cash cost per pound of copper produced |
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
Mining |
108.1 |
|
1.13 |
|
90.7 |
|
1.31 |
|
89.7 |
|
0.89 |
|
Milling |
95.4 |
|
1.00 |
|
85.2 |
|
1.23 |
|
90.7 |
|
0.91 |
|
G&A |
50.6 |
|
0.53 |
|
38.0 |
|
0.55 |
|
38.8 |
|
0.39 |
|
Onsite
costs |
254.1 |
|
2.66 |
|
213.9 |
|
3.09 |
|
219.2 |
|
2.19 |
|
Treatment
& refining |
25.9 |
|
0.27 |
|
21.2 |
|
0.31 |
|
35.7 |
|
0.36 |
|
Freight & other |
28.6 |
|
0.30 |
|
24.4 |
|
0.35 |
|
32.3 |
|
0.32 |
|
Cash
cost, before by-product credits |
308.6 |
|
3.23 |
|
259.5 |
|
3.75 |
|
287.2 |
|
2.87 |
|
By-product credits |
(265.5) |
|
(2.78) |
|
(246.7) |
|
(3.57) |
|
(271.8) |
|
(2.71) |
|
Cash cost, net of by-product credits |
43.1 |
|
0.45 |
|
12.8 |
|
0.18 |
|
15.4 |
|
0.16 |
|
|
Year Ended |
|
Dec. 31, 2024 |
|
Dec. 31, 2023 |
|
Cash cost per pound of copper produced |
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
Mining |
394.0 |
|
1.30 |
|
332.0 |
|
1.14 |
|
Milling |
352.1 |
|
1.16 |
|
309.7 |
|
1.07 |
|
G&A |
162.8 |
|
0.53 |
|
122.6 |
|
0.42 |
|
Onsite
costs |
908.9 |
|
2.99 |
|
764.3 |
|
2.63 |
|
Treatment
& refining |
97.3 |
|
0.31 |
|
113.7 |
|
0.39 |
|
Freight & other |
101.1 |
|
0.34 |
|
94.7 |
|
0.33 |
|
Cash
cost, before by-product credits |
1,107.3 |
|
3.64 |
|
972.7 |
|
3.35 |
|
By-product credits |
(967.4) |
|
(3.18) |
|
(741.3) |
|
(2.55) |
|
Cash cost, net of by-product credits |
139.9 |
|
0.46 |
|
231.4 |
|
0.80 |
|
|
Consolidated |
Three Months Ended |
|
Dec. 31, 2024 |
|
Sep. 30, 2024 |
|
Dec. 31, 2023 |
|
Supplementary cash cost information |
$ millions |
|
$/lb1 |
|
$ millions |
|
$/lb1 |
|
$ millions |
|
$/lb1 |
|
By-product credits2: |
|
|
|
|
|
|
|
|
|
Zinc |
16.1 |
|
0.17 |
|
24.3 |
|
0.35 |
|
18.6 |
|
0.18 |
|
Gold3 |
212.9 |
|
2.23 |
|
189.0 |
|
2.73 |
|
216.2 |
|
2.16 |
|
Silver3 |
26.6 |
|
0.28 |
|
18.3 |
|
0.27 |
|
22.7 |
|
0.23 |
|
Molybdenum & other |
9.9 |
|
0.10 |
|
15.1 |
|
0.22 |
|
14.3 |
|
0.14 |
|
Total by-product credits |
265.5 |
|
2.78 |
|
246.7 |
|
3.57 |
|
271.8 |
|
2.71 |
|
Reconciliation to IFRS: |
|
|
|
|
|
|
|
|
|
Cash cost, net of by-product credits |
43.1 |
|
|
|
12.8 |
|
|
|
15.4 |
|
|
|
By-product credits |
265.5 |
|
|
|
246.7 |
|
|
|
271.8 |
|
|
|
Treatment and refining charges |
(25.9) |
|
|
|
(21.2) |
|
|
|
(35.7) |
|
|
|
Share-based compensation expense |
0.7 |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
Inventory adjustments |
1.3 |
|
|
|
1.6 |
|
|
|
1.4 |
|
|
|
Past service costs |
1.5 |
|
|
|
2.8 |
|
|
|
— |
|
|
|
Change in product inventory |
(10.0) |
|
|
|
1.8 |
|
|
|
29.3 |
|
|
|
Royalties |
2.1 |
|
|
|
3.7 |
|
|
|
1.1 |
|
|
|
Depreciation and amortization4 |
122.2 |
|
|
|
97.5 |
|
|
|
121.8 |
|
|
|
Cost of sales5 |
400.5 |
|
|
|
346.0 |
|
|
|
405.4 |
|
|
|
|
Year Ended |
|
Dec. 31, 2024 |
Dec. 31, 2023 |
Supplementary cash cost information |
|
$ millions |
|
$/lb1 |
|
$ millions |
|
$/lb1 |
|
By-product credits2: |
|
|
|
|
|
|
|
$/lb1 |
|
Zinc |
|
69.9 |
|
0.23 |
|
74.9 |
|
0.26 |
|
Gold3 |
|
747.8 |
|
2.46 |
|
525.6 |
|
1.80 |
|
Silver3 |
|
86.0 |
|
0.28 |
|
68.7 |
|
0.24 |
|
Molybdenum & other |
|
63.7 |
|
3.18 |
|
72.1 |
|
0.25 |
|
Total
by-product credits |
|
967.4 |
|
3.18 |
|
741.3 |
|
2.55 |
|
Reconciliation to IFRS: |
|
|
|
|
|
|
|
|
|
Cash cost, net of by-product credits |
|
139.9 |
|
|
|
231.4 |
|
|
|
By-product credits |
|
967.4 |
|
|
|
741.3 |
|
|
|
Treatment and refining charges |
|
(97.3) |
|
|
|
(113.7) |
|
|
|
Share-based compensation expense |
|
1.9 |
|
|
|
0.6 |
|
|
|
Inventory adjustments |
|
2.9 |
|
|
|
2.3 |
|
|
|
Past service costs |
|
4.3 |
|
|
|
— |
|
|
|
Change in product inventory |
|
11.4 |
|
|
|
38.4 |
|
|
|
Royalties |
|
10.3 |
|
|
|
5.5 |
|
|
|
Depreciation and amortization4 |
|
426.6 |
|
|
|
391.7 |
|
|
|
Cost of sales5 |
|
1,467.4 |
|
|
|
1,297.5 |
|
|
|
1 Per pound of copper produced. |
2 By-product credits are computed as revenue per consolidated
financial statements, including amortization of deferred revenue
and pricing and volume adjustments. |
3 Gold and silver by-product credits do not include variable
consideration adjustments with respect to stream arrangements.
Variable consideration adjustments are cumulative adjustments to
gold and silver stream deferred revenue primarily associated with
the net change in mineral reserves and resources or amendments to
the mine plan that would change the total expected deliverable
ounces under the precious metal streaming arrangement. For the year
ended December 31, 2024 the variable consideration adjustments
amounted loss of $3.8 million (year ended December 31, 2023 -
income of $4.9 million). |
4 Depreciation is based on concentrate sold. |
5 As per consolidated financial statements. |
|
Peru |
Three Months Ended |
Year Ended |
(in thousands) |
Dec. 31, 2024 |
|
Sep. 30, 2024 |
|
Dec. 31, 2023 |
|
Dec. 31, 2024 |
|
Dec. 31, 2023 |
|
Net pounds of copper produced1 |
74,931 |
|
46,782 |
|
73,209 |
|
218,260 |
|
221,536 |
|
1 Contained copper in concentrate. |
|
Peru |
Three Months Ended |
|
Dec. 31, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Cash cost per pound of copper produced |
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
Mining |
47.3 |
|
0.63 |
|
37.6 |
|
0.81 |
|
30.4 |
|
0.41 |
|
Milling |
53.6 |
|
0.72 |
|
48.5 |
|
1.04 |
|
50.2 |
|
0.69 |
|
G&A |
33.2 |
|
0.44 |
|
19.9 |
|
0.42 |
|
24.8 |
|
0.34 |
|
Onsite costs |
134.1 |
|
1.79 |
|
106.0 |
|
2.27 |
|
105.4 |
|
1.44 |
|
Treatment & refining |
16.0 |
|
0.21 |
|
11.4 |
|
0.24 |
|
19.6 |
|
0.27 |
|
Freight & other |
19.2 |
|
0.25 |
|
14.1 |
|
0.30 |
|
20.8 |
|
0.28 |
|
Cash cost, before by-product credits |
169.3 |
|
2.25 |
|
131.5 |
|
2.81 |
|
145.8 |
|
1.99 |
|
By-product credits |
(94.0) |
|
(1.25) |
|
(47.2) |
|
(1.01) |
|
(106.1) |
|
(1.45) |
|
Cash cost, net of by-product credits |
75.3 |
|
1.00 |
|
84.3 |
|
1.80 |
|
39.7 |
|
0.54 |
|
|
Year Ended |
|
Dec. 31, 2024 |
Dec. 31, 2023 |
Cash cost per pound of copper produced |
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
Mining |
145.5 |
|
0.67 |
|
122.6 |
|
0.55 |
|
Milling |
197.1 |
|
0.90 |
|
198.1 |
|
0.90 |
|
G&A |
95.5 |
|
0.44 |
|
77.2 |
|
0.35 |
|
Onsite costs |
438.1 |
|
2.01 |
|
397.9 |
|
1.80 |
|
Treatment & refining |
53.4 |
|
0.24 |
|
66.4 |
|
0.30 |
|
Freight & other |
62.5 |
|
0.29 |
|
62.7 |
|
0.28 |
|
Cash cost, before by-product credits |
554.0 |
|
2.54 |
|
527.0 |
|
2.38 |
|
By-product credits |
(295.8) |
|
(1.36) |
|
(289.1) |
|
(1.31) |
|
Cash cost, net of by-product credits |
258.2 |
|
1.18 |
|
237.9 |
|
1.07 |
|
|
Peru |
Three Months Ended |
|
Dec. 31, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
|
Supplementary cash cost information |
$ millions |
|
$/lb1 |
|
$ millions |
|
$/lb1 |
|
$ millions |
|
$/lb1 |
|
By-product credits2: |
|
|
|
|
|
|
|
|
|
|
|
|
Gold3 |
68.5 |
|
0.91 |
|
22.9 |
|
0.49 |
|
77.5 |
|
1.05 |
|
Silver3 |
16.8 |
|
0.22 |
|
9.2 |
|
0.20 |
|
14.3 |
|
0.20 |
|
Molybdenum |
8.7 |
|
0.12 |
|
15.1 |
|
0.32 |
|
14.3 |
|
0.20 |
|
Total
by-product credits |
94.0 |
|
1.25 |
|
47.2 |
|
1.01 |
|
106.1 |
|
1.45 |
|
Reconciliation to IFRS: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost, net of by-product credits |
75.3 |
|
|
|
84.3 |
|
|
|
39.7 |
|
|
|
By-product credits |
94.0 |
|
|
|
47.3 |
|
|
|
106.1 |
|
|
|
Treatment and refining charges |
(16.0) |
|
|
|
(11.4) |
|
|
|
(19.6) |
|
|
|
Inventory adjustments |
(0.2) |
|
|
|
0.2 |
|
|
|
— |
|
|
|
Share-based compensation expenses |
0.1 |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
Change in product inventory |
(6.7) |
|
|
|
1.1 |
|
|
|
8.0 |
|
|
|
Royalties |
1.5 |
|
|
|
2.1 |
|
|
|
1.5 |
|
|
|
Depreciation and amortization4 |
83.2 |
|
|
|
57.2 |
|
|
|
85.7 |
|
|
|
Cost of sales5 |
231.2 |
|
|
|
180.9 |
|
|
|
221.5 |
|
|
|
|
Year Ended |
|
Dec. 31, 2024 |
Dec. 31, 2023 |
Supplementary cash cost information |
$ millions |
|
$/lb1 |
|
$ millions |
|
$/lb1 |
|
By-product credits2: |
|
|
|
|
|
|
|
|
Gold3 |
182.5 |
|
0.84 |
|
169.9 |
|
0.77 |
|
Silver3 |
51.3 |
|
0.24 |
|
47.3 |
|
0.21 |
|
Molybdenum |
62.0 |
|
0.28 |
|
71.9 |
|
0.33 |
|
Total
by-product credits |
295.8 |
|
1.36 |
|
289.1 |
|
1.31 |
|
Reconciliation to IFRS: |
|
|
|
|
|
|
|
|
Cash cost, net of by-product credits |
258.2 |
|
|
|
237.9 |
|
|
|
By-product credits |
295.8 |
|
|
|
289.1 |
|
|
|
Treatment and refining charges |
(53.4) |
|
|
|
(66.4) |
|
|
|
Share-based compensation expenses |
0.5 |
|
|
|
0.1 |
|
|
|
Change in product inventory |
9.6 |
|
|
|
28.1 |
|
|
|
Royalties |
6.7 |
|
|
|
5.6 |
|
|
|
Depreciation and amortization4 |
270.3 |
|
|
|
275.7 |
|
|
|
Cost of sales5 |
787.7 |
|
|
|
770.1 |
|
|
|
1 Per pound of copper produced. |
2 By-product
credits are computed as revenue per consolidated financial
statements, including amortization of deferred revenue and pricing
and volume adjustments. |
3 Gold and silver
by-product credits do not include variable consideration
adjustments with respect to stream arrangements. |
4 Depreciation is
based on concentrate sold. |
5 As per the
consolidated financial statements. |
|
British Columbia |
Three Months Ended |
Year Ended |
(in thousands) |
Dec. 31, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Net pounds of copper produced1 |
13,067 |
14,850 |
18,755 |
58,215 |
41,995 |
1 Contained copper
in concentrate. |
|
British Columbia |
Three Months Ended |
|
Dec. 31, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Cash cost per pound of copper produced |
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
Mining |
18.2 |
|
1.39 |
|
12.9 |
|
0.87 |
|
19.0 |
|
1.01 |
|
Milling |
25.2 |
|
1.93 |
|
19.7 |
|
1.33 |
|
25.2 |
|
1.35 |
|
G&A |
4.6 |
|
0.35 |
|
5.8 |
|
0.39 |
|
5.6 |
|
0.30 |
|
Onsite
costs |
48.0 |
|
3.67 |
|
38.4 |
|
2.59 |
|
49.8 |
|
2.66 |
|
Treatment
& refining |
3.4 |
|
0.26 |
|
3.3 |
|
0.22 |
|
4.9 |
|
0.26 |
|
Freight & other |
2.4 |
|
0.19 |
|
3.0 |
|
0.20 |
|
4.7 |
|
0.25 |
|
Cash
cost, before by-product credits |
53.8 |
|
4.12 |
|
44.7 |
|
3.01 |
|
59.4 |
|
3.17 |
|
By-product credits |
(14.6) |
|
(1.12) |
|
(17.9) |
|
(1.20) |
|
(9.3) |
|
(0.50) |
|
Cash cost, net of by-product credits |
39.2 |
|
3.00 |
|
26.8 |
|
1.81 |
|
50.1 |
|
2.67 |
|
|
|
|
Year Ended |
|
|
|
Dec. 31, 2024 |
Dec. 31, 2023 |
Cash cost per pound of copper produced |
|
|
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
Mining |
|
|
79.1 |
|
1.36 |
|
48.3 |
|
1.15 |
|
Milling |
|
|
89.8 |
|
1.54 |
|
49.3 |
|
1.17 |
|
G&A |
|
|
19.6 |
|
0.34 |
|
10.7 |
|
0.25 |
|
Onsite
costs |
|
|
188.5 |
|
3.24 |
|
108.3 |
|
2.57 |
|
Treatment
& refining |
|
|
14.4 |
|
0.25 |
|
9.8 |
|
0.23 |
|
Freight & other |
|
|
13.2 |
|
0.22 |
|
8.4 |
|
0.20 |
|
Cash
cost, before by-product credits |
|
|
216.1 |
|
3.71 |
|
126.5 |
|
3.00 |
|
By-product credits |
|
|
(56.5) |
|
(0.97) |
|
(21.5) |
|
(0.51) |
|
Cash cost, net of by-product credits |
|
|
159.6 |
|
2.74 |
|
105.0 |
|
2.49 |
|
|
British Columbia |
Three Months Ended |
Year Ended |
|
Dec. 31, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Supplementary cash cost information |
$ millions |
|
$/lb1 |
|
$ millions |
|
$/lb1 |
|
$ millions |
|
$/lb1 |
|
$ millions |
|
$/lb1 |
|
$ millions |
|
$/lb1 |
|
By-product credits2: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold |
13.3 |
|
1.02 |
|
16.3 |
|
1.09 |
|
6.9 |
|
0.37 |
|
49.3 |
|
0.85 |
|
17.0 |
|
0.40 |
|
Silver |
1.3 |
|
0.10 |
|
1.6 |
|
0.11 |
|
2.4 |
|
0.13 |
|
7.2 |
|
0.12 |
|
4.5 |
|
0.11 |
|
Total
by-product credits |
14.6 |
|
1.12 |
|
17.9 |
|
1.20 |
|
9.3 |
|
0.50 |
|
56.5 |
|
0.97 |
|
21.5 |
|
0.51 |
|
Reconciliation to IFRS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash cost, net of by-product credits |
39.2 |
|
|
|
26.8 |
|
|
|
50.1 |
|
|
|
159.6 |
|
|
|
105.0 |
|
|
|
By-product credits |
14.6 |
|
|
|
17.9 |
|
|
|
9.3 |
|
|
|
56.5 |
|
|
|
21.5 |
|
|
|
Treatment and refining charges |
(3.4) |
|
|
|
(3.3) |
|
|
|
(4.9) |
|
|
|
(14.4) |
|
|
|
(9.8) |
|
|
|
Share based payment |
0.4 |
|
|
|
— |
|
|
|
— |
|
|
|
0.4 |
|
|
|
— |
|
|
|
Change in product inventory |
(3.0) |
|
|
|
(0.5) |
|
|
|
8.5 |
|
|
|
3.8 |
|
|
|
8.5 |
|
|
|
Inventory adjustments |
1.2 |
|
|
|
— |
|
|
|
— |
|
|
|
1.2 |
|
|
|
— |
|
|
|
Royalties |
0.6 |
|
|
|
1.6 |
|
|
|
(0.4) |
|
|
|
3.6 |
|
|
|
(0.2) |
|
|
|
Depreciation and amortization3 |
11.8 |
|
|
|
12.5 |
|
|
|
5.5 |
|
|
|
50.1 |
|
|
|
11.7 |
|
|
|
Cost of sales4 |
61.4 |
|
|
|
55.0 |
|
|
|
68.1 |
|
|
|
260.8 |
|
|
|
136.7 |
|
|
|
1 Per pound of
copper produced. |
2 By-product
credits are computed as revenue per consolidated financial
statements, including amortization of deferred revenue and pricing
and volume adjustments. |
3 Depreciation is
based on concentrate sold. |
4 As per
consolidated financial statements. |
|
Sustaining and All-in Sustaining Cash Cost
Reconciliation
Consolidated |
Three Months Ended |
|
Dec. 31, 2024 |
|
Sep. 30, 2024 |
|
Dec. 31, 2023 |
|
All-in sustaining cash cost per pound of copper
produced |
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
Cash cost, net of by-product credits |
43.1 |
|
0.45 |
|
12.7 |
|
0.18 |
|
15.4 |
|
0.16 |
|
Cash sustaining capital expenditures |
85.3 |
|
0.89 |
|
101.6 |
|
1.47 |
|
87.6 |
|
0.87 |
|
Capitalized exploration |
— |
|
— |
|
— |
|
— |
|
5.2 |
|
0.05 |
|
Royalties |
2.1 |
|
0.03 |
|
3.8 |
|
0.06 |
|
1.1 |
|
0.01 |
|
Sustaining cash cost, net of by-product
credits |
130.5 |
|
1.37 |
|
118.1 |
|
1.71 |
|
109.3 |
|
1.09 |
|
Corporate selling and administrative expenses & regional
costs |
11.6 |
|
0.12 |
|
12.9 |
|
0.18 |
|
12.7 |
|
0.13 |
|
Accretion and amortization of decommissioning and community
agreements1 |
3.7 |
|
0.04 |
|
3.9 |
|
0.06 |
|
9.0 |
|
0.09 |
|
All-in sustaining cash cost, net of by-product
credits |
145.8 |
|
1.53 |
|
134.9 |
|
1.95 |
|
131.0 |
|
1.31 |
|
Reconciliation to property, plant and equipment
additions |
|
|
|
|
|
|
|
|
|
|
|
|
Property,
plant and equipment additions |
127.6 |
|
|
|
76.7 |
|
|
|
54.0 |
|
|
|
Capitalized stripping net additions |
35.8 |
|
|
|
49.3 |
|
|
|
40.9 |
|
|
|
Total accrued capital additions |
163.4 |
|
|
|
126.0 |
|
|
|
94.9 |
|
|
|
Less other non-sustaining capital costs2 |
91.8 |
|
|
|
36.6 |
|
|
|
19.9 |
|
|
|
Total sustaining capital costs |
71.6 |
|
|
|
89.4 |
|
|
|
75.0 |
|
|
|
Capitalized lease & equipment financing cash payments -
operating sites |
10.3 |
|
|
|
10.2 |
|
|
|
8.7 |
|
|
|
Community
agreement cash payments3 |
0.7 |
|
|
|
0.3 |
|
|
|
2.3 |
|
|
|
Accretion and amortization of decommissioning and restoration
obligations4 |
2.7 |
|
|
|
1.7 |
|
|
|
1.6 |
|
|
|
Cash sustaining capital expenditures |
85.3 |
|
|
|
101.6 |
|
|
|
87.6 |
|
|
|
1 Includes
accretion of decommissioning relating to non-productive sites, and
accretion and amortization of current community agreements. |
2 Other
non-sustaining capital costs include Arizona capitalized costs,
capitalized interest, capitalized exploration, right-of-use lease
asset additions, equipment financing asset additions, growth
capital expenditures and reclassification related to capital
spares. |
3 Amortization
for community agreements relating to current operations. |
4 Includes
amortization of decommissioning and restoration PP&E assets and
accretion of decommissioning and restoration liabilities related to
producing sites. |
|
Consolidated |
Year Ended |
|
Dec. 31, 2024 |
|
Dec. 31, 2023 |
|
All-in sustaining cash cost per pound of copper
produced |
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
Cash
cost, net of by-product credits |
139.9 |
|
0.46 |
|
231.4 |
|
0.80 |
|
Cash
sustaining capital expenditures |
342.2 |
|
1.13 |
|
255.9 |
|
0.88 |
|
Capitalized exploration |
— |
|
— |
|
5.2 |
|
0.02 |
|
Royalties |
10.3 |
|
0.03 |
|
5.5 |
|
0.02 |
|
Sustaining cash cost, net of by-product
credits |
492.4 |
|
1.62 |
|
498.0 |
|
1.72 |
|
Corporate
selling and administrative expenses & regional costs |
62.4 |
|
0.20 |
|
43.5 |
|
0.14 |
|
Accretion and amortization of decommissioning and community
agreements1 |
17.3 |
|
0.06 |
|
16.0 |
|
0.06 |
|
All-in sustaining cash cost, net of by-product
credits |
572.1 |
|
1.88 |
|
557.5 |
|
1.92 |
|
Reconciliation to property, plant and equipment additions: |
|
|
|
|
|
|
|
|
Property,
plant and equipment additions |
325.7 |
|
|
|
212.6 |
|
|
|
Capitalized stripping net additions |
160.5 |
|
|
|
111.2 |
|
|
|
Total
accrued capital additions |
486.2 |
|
|
|
323.8 |
|
|
|
Less other non-sustaining capital costs2 |
193.1 |
|
|
|
105.7 |
|
|
|
Total
sustaining capital costs |
293.1 |
|
|
|
218.1 |
|
|
|
Capitalized lease & equipment financing cash payments -
operating sites |
38.4 |
|
|
|
25.0 |
|
|
|
Community
agreement cash payments3 |
2.5 |
|
|
|
6.7 |
|
|
|
Accretion and amortization of decommissioning and restoration
obligations4 |
8.2 |
|
|
|
6.1 |
|
|
|
Cash sustaining capital expenditures |
342.2 |
|
|
|
255.9 |
|
|
|
1 Includes
accretion of decommissioning relating to non-productive sites, and
accretion and amortization of community agreements capitalized to
Other assets. |
2 Other
non-sustaining capital costs include Arizona capitalized costs,
capitalized interest, capitalized exploration, right-of-use lease
asset additions, equipment financing asset additions, growth
capital expenditures and reclassification related to capital
spares. |
3 Amortization
for community agreements relating to current operations. |
4 Includes
amortization of decommissioning and restoration PP&E assets and
accretion of decommissioning and restoration liabilities related to
producing sites. |
|
Peru |
Three Months Ended |
Year Ended |
|
Dec. 31, 2024 |
Sep. 30, 2024 |
|
Dec. 31, 2023 |
|
Dec. 31, 2024 |
Dec. 31, 2023 |
Sustaining cash cost per pound of copper
produced |
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
Cash
cost, net of by-product credits |
75.3 |
|
1.00 |
|
84.3 |
|
1.80 |
|
39.7 |
|
0.54 |
|
258.2 |
|
1.18 |
|
237.9 |
|
1.07 |
|
Cash
sustaining capital expenditures |
34.3 |
|
0.46 |
|
43.7 |
|
0.93 |
|
42.3 |
|
0.58 |
|
141.6 |
|
0.65 |
|
152.0 |
|
0.69 |
|
Capitalized exploration |
— |
|
— |
|
— |
|
— |
|
5.2 |
|
0.07 |
|
— |
|
— |
|
5.2 |
|
0.02 |
|
Royalties |
1.5 |
|
0.02 |
|
2.1 |
|
0.05 |
|
1.5 |
|
0.02 |
|
6.7 |
|
0.03 |
|
5.6 |
|
0.03 |
|
Sustaining cash cost per pound of copper
produced |
111.1 |
|
1.48 |
|
130.1 |
|
2.78 |
|
88.7 |
|
1.21 |
|
406.5 |
|
1.86 |
|
400.7 |
|
1.81 |
|
|
British Columbia |
Three Months Ended |
Year Ended |
|
Dec. 31, 2024 |
|
Sep. 30, 2024 |
|
Dec. 31, 2023 |
|
Dec. 31, 2024 |
|
Dec. 31, 2023 |
|
Sustaining cash cost per pound of copper
produced |
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
$ millions |
|
$/lb |
|
Cash cost, net of by-product credits |
39.2 |
|
3.00 |
|
26.8 |
|
1.81 |
|
50.1 |
|
2.67 |
|
159.6 |
|
2.74 |
|
105.0 |
|
2.49 |
|
Cash
sustaining capital expenditures |
35.4 |
|
2.71 |
|
46.6 |
|
3.14 |
|
24.1 |
|
1.28 |
|
144.5 |
|
2.48 |
|
38.5 |
|
0.92 |
|
Royalties |
0.6 |
|
0.05 |
|
1.7 |
|
0.11 |
|
(0.4) |
|
(0.02) |
|
3.6 |
|
0.07 |
|
(0.2) |
|
— |
|
Sustaining cash cost per pound of copper
produced |
75.2 |
|
5.76 |
|
75.1 |
|
5.06 |
|
73.8 |
|
3.93 |
|
307.7 |
|
5.29 |
|
143.3 |
|
3.41 |
|
|
Gold Cash Cost and Sustaining Cash Cost Reconciliation
Manitoba |
Three Months Ended |
Year Ended |
(in thousands) |
Dec. 31, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Net ounces of gold produced1 |
51,438 |
62,468 |
59,863 |
214,225 |
187,363 |
1 Contained gold in concentrate and doré. |
|
Manitoba |
Three Months Ended |
|
Dec. 31, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Cash cost per ounce of gold produced |
$ millions |
|
$/oz |
|
$ millions |
|
$/oz |
|
$ millions |
|
$/oz |
|
Mining |
42.6 |
|
828 |
|
40.1 |
|
642 |
|
40.3 |
|
673 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Milling |
16.6 |
|
323 |
|
16.9 |
|
271 |
|
15.3 |
|
256 |
|
G&A |
12.8 |
|
249 |
|
12.4 |
|
198 |
|
8.4 |
|
140 |
|
Onsite
costs |
72.0 |
|
1,400 |
|
69.4 |
|
1,111 |
|
64.0 |
|
1,069 |
|
Treatment
& refining |
6.5 |
|
126 |
|
6.5 |
|
104 |
|
11.1 |
|
186 |
|
Freight
& other |
7.0 |
|
136 |
|
7.3 |
|
117 |
|
6.8 |
|
113 |
|
Cash cost, before by-product credits |
85.5 |
|
1,662 |
|
83.2 |
|
1,332 |
|
81.9 |
|
1,368 |
|
By-product credits |
(54.3) |
|
(1,055) |
|
(60.0) |
|
(960) |
|
(56.0) |
|
(934) |
|
Gold cash cost, net of by-product credits |
31.2 |
|
607 |
|
23.2 |
|
372 |
|
25.9 |
|
434 |
|
|
Year Ended |
|
Dec. 31, 2024 |
Dec. 31, 2023 |
Cash cost per ounce of gold produced |
$ millions |
|
$/oz |
|
$ millions |
|
$/oz |
|
Mining |
169.4 |
|
791 |
|
161.1 |
|
860 |
|
Milling |
65.2 |
|
304 |
|
62.3 |
|
333 |
|
G&A |
47.7 |
|
223 |
|
34.7 |
|
185 |
|
Onsite
costs |
282.3 |
|
1,318 |
|
258.1 |
|
1,378 |
|
Treatment
& refining |
29.5 |
|
137 |
|
37.5 |
|
200 |
|
Freight
& other |
25.4 |
|
119 |
|
23.6 |
|
126 |
|
Cash cost, before by-product credits |
337.2 |
|
1,574 |
|
319.2 |
|
1,704 |
|
By-product credits |
(207.3) |
|
(968) |
|
(183.1) |
|
(977) |
|
Gold cash cost, net of by-product credits |
129.9 |
|
606 |
|
136.1 |
|
727 |
|
|
Manitoba |
Three Months Ended |
|
Dec. 31, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Supplementary cash cost information |
$ millions |
|
$/oz1 |
|
$ millions |
|
$/oz1 |
|
$ millions |
|
$/oz1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By-product credits2: |
|
|
|
|
|
|
|
|
|
Copper |
28.5 |
|
554 |
|
28.2 |
|
451 |
|
31.4 |
|
526 |
|
Zinc |
16.1 |
|
313 |
|
24.3 |
|
389 |
|
18.6 |
|
308 |
|
Silver |
8.5 |
|
165 |
|
7.5 |
|
120 |
|
6.0 |
|
100 |
|
Other |
1.2 |
|
23 |
|
— |
|
— |
|
— |
|
— |
|
Total
by-product credits |
54.3 |
|
1,055 |
|
60.0 |
|
960 |
|
56.0 |
|
934 |
|
Reconciliation to IFRS: |
|
|
|
|
|
|
|
|
|
Cash cost, net of by-product credits |
31.2 |
|
|
|
23.2 |
|
|
|
25.9 |
|
|
|
By-product credits |
54.3 |
|
|
|
60.0 |
|
|
|
56.0 |
|
|
|
Treatment and refining charges |
(6.5) |
|
|
|
(6.5) |
|
|
|
(11.1) |
|
|
|
Inventory adjustments |
0.3 |
|
|
|
2.8 |
|
|
|
1.4 |
|
|
|
Share-based compensation expenses |
0.2 |
|
|
|
1.4 |
|
|
|
0.2 |
|
|
|
Past service cost |
1.5 |
|
|
|
0.2 |
|
|
|
— |
|
|
|
Change in product inventory |
(0.3) |
|
|
|
1.2 |
|
|
|
12.8 |
|
|
|
Royalties |
— |
|
|
|
— |
|
|
|
— |
|
|
|
Depreciation and amortization3 |
27.2 |
|
|
|
27.7 |
|
|
|
30.6 |
|
|
|
Cost of sales4 |
107.9 |
|
|
|
110.0 |
|
|
|
115.8 |
|
|
|
|
|
Year Ended |
|
Dec. 31, 2024 |
Dec. 31, 2023 |
Supplementary cash cost information |
$millions |
|
$/oz1 |
|
$millions |
|
$/oz1 |
|
By-product credits2: |
|
|
|
|
|
|
Copper |
108.2 |
|
505 |
|
91.1 |
|
487 |
|
Zinc |
69.9 |
|
326 |
|
74.9 |
|
399 |
|
Silver |
27.5 |
|
128 |
|
16.9 |
|
90 |
|
Other |
1.7 |
|
9 |
|
0.2 |
|
1 |
|
Total
by-product credits |
207.3 |
|
968 |
|
183.1 |
|
977 |
|
Reconciliation to IFRS: |
|
|
|
|
|
|
Cash cost, net of by-product credits |
129.9 |
|
|
|
136.1 |
|
|
|
By-product credits |
207.3 |
|
|
|
183.1 |
|
|
|
Treatment and refining charges |
(29.5) |
|
|
|
(37.5) |
|
|
|
Inventory adjustments |
1.7 |
|
|
|
2.3 |
|
|
|
Share-based compensation expenses |
1.0 |
|
|
|
0.5 |
|
|
|
Past service cost |
4.3 |
|
|
|
— |
|
|
|
Change in product inventory |
(2.0) |
|
|
|
1.8 |
|
|
|
Royalties |
— |
|
|
|
0.1 |
|
|
|
Depreciation and amortization3 |
106.2 |
|
|
|
104.3 |
|
|
|
Cost of sales4 |
418.9 |
|
|
|
390.7 |
|
|
|
1 Per ounce of
gold produced. |
2 By-product
credits are computed as revenue per consolidated financial
statements, amortization of deferred revenue, pricing and volume
adjustments. |
3 Depreciation is
based on concentrate sold. |
4 As per
consolidated financial statements. |
|
Manitoba |
Three Months Ended |
Year Ended |
|
Dec. 31, 2024 |
Sep. 30, 2024 |
Dec. 31, 2023 |
Dec. 31, 2024 |
Dec. 31, 2023 |
Sustaining cash cost per ounce of gold
produced |
$ millions |
$/oz |
$ millions |
$/oz |
$ millions |
$/oz |
$ millions |
$/oz |
$ millions |
$/oz |
Gold cash
cost, net of by-product credits |
31.2 |
607 |
23.2 |
372 |
25.9 |
434 |
129.9 |
606 |
136.1 |
727 |
Cash
sustaining capital expenditures |
15.5 |
301 |
11.3 |
181 |
21.2 |
354 |
56.1 |
262 |
65.4 |
349 |
Royalties |
— |
— |
— |
— |
— |
— |
— |
— |
0.1 |
1 |
Sustaining cash cost per ounce of gold
produced |
46.7 |
908 |
34.5 |
553 |
47.1 |
788 |
186.0 |
868 |
201.6 |
1,077 |
|
Combined Unit Cost Reconciliation
Peru |
Three Months Ended |
Year Ended |
(in millions except ore tonnes milled and unit cost per tonne) |
|
|
Combined unit cost per tonne processed |
Dec. 31, 2024 |
|
Sep. 30, 2024 |
|
Dec. 31, 2023 |
|
Dec. 31, 2024 |
|
Dec. 31, 2023 |
|
Mining |
47.3 |
|
37.6 |
|
30.4 |
|
145.5 |
|
122.6 |
|
Milling |
53.6 |
|
48.5 |
|
50.2 |
|
197.1 |
|
198.1 |
|
G&A1 |
33.2 |
|
19.9 |
|
24.8 |
|
95.5 |
|
77.2 |
|
Other G&A2 |
(12.1) |
|
(2.0) |
|
(8.2) |
|
(25.9) |
|
(14.9) |
|
Unit
cost |
122.0 |
|
104.0 |
|
97.2 |
|
412.2 |
|
383.0 |
|
Tonnes ore milled |
7,999 |
|
8,137 |
|
7,939 |
|
31,934 |
|
30,721 |
|
Combined unit cost per tonne |
15.25 |
|
12.78 |
|
12.24 |
|
12.91 |
|
12.47 |
|
Reconciliation to IFRS |
|
|
|
|
|
Unit cost |
122.0 |
|
104.0 |
|
97.2 |
|
412.2 |
|
383.0 |
|
Freight & other |
19.2 |
|
14.1 |
|
20.8 |
|
62.5 |
|
62.7 |
|
Inventory adjustments |
(0.2) |
|
0.2 |
|
— |
|
— |
|
— |
|
Other G&A |
12.1 |
|
2.1 |
|
8.2 |
|
25.9 |
|
14.9 |
|
Share-based compensation expenses |
0.1 |
|
0.1 |
|
0.1 |
|
0.5 |
|
0.1 |
|
Change in product inventory |
(6.7) |
|
1.1 |
|
8.0 |
|
9.6 |
|
28.1 |
|
Royalties |
1.5 |
|
2.1 |
|
1.5 |
|
6.7 |
|
5.6 |
|
Depreciation and amortization |
83.2 |
|
57.2 |
|
85.7 |
|
270.3 |
|
275.7 |
|
Cost of sales3 |
231.2 |
|
180.9 |
|
221.5 |
|
787.7 |
|
770.1 |
|
1 G&A as per
cash cost reconciliation above. |
2 Other G&A
primarily includes profit sharing costs. |
3 As per
consolidated financial statements. |
|
British Columbia |
Three Months Ended |
Year Ended |
(in
millions except unit cost per tonne) |
|
|
Combined unit cost per tonne processed |
Dec. 31, 2024 |
|
Sep. 30, 2024 |
|
Dec. 31, 2023 |
|
Dec. 31, 2024 |
|
Dec. 31, 2023 |
|
Mining |
18.2 |
|
12.9 |
|
19.0 |
|
79.1 |
|
48.3 |
|
Milling |
25.2 |
|
19.7 |
|
25.2 |
|
89.8 |
|
49.3 |
|
G&A1 |
4.6 |
|
5.8 |
|
5.6 |
|
19.6 |
|
10.7 |
|
Unit cost |
48.0 |
|
38.4 |
|
49.8 |
|
188.5 |
|
108.3 |
|
USD/CAD implicit exchange rate |
1.38 |
|
1.35 |
|
1.37 |
|
1.37 |
|
1.36 |
|
Unit cost - C$ |
66.9 |
|
52.4 |
|
68.2 |
|
258.1 |
|
146.7 |
|
Tonnes ore milled |
2,881 |
|
3,363 |
|
3,262 |
|
12,657 |
|
6,862 |
|
Combined unit cost per tonne - C$ |
23.22 |
|
15.58 |
|
20.90 |
|
20.39 |
|
21.38 |
|
Reconciliation to IFRS: |
|
|
|
|
|
|
Unit cost |
48.0 |
|
38.4 |
|
49.8 |
|
188.5 |
|
108.3 |
|
Freight & other |
2.4 |
|
3.0 |
|
4.7 |
|
13.2 |
|
8.4 |
|
Share-based compensation expenses |
0.4 |
|
— |
|
— |
|
0.4 |
|
— |
|
Change in product inventory |
(3.0 |
) |
(0.5 |
) |
8.5 |
|
3.8 |
|
8.5 |
|
Inventory adjustments |
1.2 |
|
— |
|
— |
|
1.2 |
|
— |
|
Royalties |
0.6 |
|
1.6 |
|
(0.4 |
) |
3.6 |
|
(0.2 |
) |
Depreciation and amortization |
11.8 |
|
12.5 |
|
5.5 |
|
50.1 |
|
11.7 |
|
Cost of sales2 |
61.4 |
|
55.0 |
|
68.1 |
|
260.8 |
|
136.7 |
|
1 G&A as per cash cost reconciliation above |
2 As per consolidated financial statements. |
|
Manitoba |
|
Three Months Ended |
Year Ended |
(in millions except tonnes ore milled and unit cost per tonne) |
|
Combined unit cost per tonne processed |
|
Dec. 31,2024 |
|
Sep. 30,2024 |
|
Dec. 31,2023 |
|
Dec. 31,2024 |
|
Dec. 31,2023 |
|
Mining |
42.6 |
|
40.1 |
|
40.3 |
|
169.4 |
|
161.1 |
|
Milling |
16.6 |
|
16.9 |
|
15.3 |
|
65.2 |
|
62.3 |
|
G&A1 |
12.8 |
|
12.4 |
|
8.4 |
|
47.7 |
|
34.7 |
|
Less: Other G&A related to profit sharing costs |
(4.0 |
) |
(5.4 |
) |
(1.5 |
) |
(17.0 |
) |
(6.7 |
) |
Unit cost |
68.0 |
|
64.0 |
|
62.5 |
|
265.3 |
|
251.4 |
|
USD/CAD implicit exchange rate |
1.39 |
|
1.36 |
|
1.36 |
|
1.37 |
|
1.35 |
|
Unit cost - C$ |
95.0 |
|
87.4 |
|
85.0 |
|
363.5 |
|
339.2 |
|
Tonnes ore milled |
407,596 |
|
413,919 |
|
393,837 |
|
1,608,708 |
|
1,562,479 |
|
Combined unit cost per tonne - C$ |
233 |
|
211 |
|
216 |
|
226 |
|
217 |
|
Reconciliation to IFRS: |
|
|
|
|
|
Unit cost |
68.0 |
|
64.0 |
|
62.5 |
|
265.3 |
|
251.4 |
|
Freight & other |
7.0 |
|
7.3 |
|
6.8 |
|
25.4 |
|
23.6 |
|
Other G&A related to profit sharing |
4.0 |
|
5.4 |
|
1.5 |
|
17.0 |
|
6.7 |
|
Share-based compensation expenses |
0.2 |
|
0.2 |
|
0.2 |
|
1.0 |
|
0.5 |
|
Inventory adjustments |
0.3 |
|
1.4 |
|
1.4 |
|
1.7 |
|
2.3 |
|
Past service cost |
1.5 |
|
2.8 |
|
— |
|
4.3 |
|
— |
|
Change in product inventory |
(0.3 |
) |
1.2 |
|
12.8 |
|
(2.0 |
) |
1.8 |
|
Royalties |
— |
|
— |
|
— |
|
— |
|
0.1 |
|
Depreciation and amortization |
27.2 |
|
27.7 |
|
30.6 |
|
106.2 |
|
104.3 |
|
Cost of sales2 |
107.9 |
|
110.0 |
|
115.8 |
|
418.9 |
|
390.7 |
|
1 G&A as per cash cost reconciliation above. |
2 As per consolidated financial statements. |
|
Forward-Looking
Information
This news release contains forward-looking information within the
meaning of applicable Canadian and United States securities
legislation. All information contained in this news release, other
than statements of current and historical fact, is forward-looking
information. Often, but not always, forward-looking information can
be identified by the use of words such as “plans”, “expects”,
“budget”, “guidance”, “scheduled”, “estimates”, “forecasts”,
“strategy”, “target”, “intends”, “objective”, “goal”,
“understands”, “anticipates” and “believes” (and variations of
these or similar words) and statements that certain actions, events
or results “may”, “could”, “would”, “should”, “might” “occur” or
“be achieved” or “will be taken” (and variations of these or
similar expressions). All of the forward-looking information in
this news release is qualified by this cautionary note.
Forward-looking information includes, but is not
limited to, statements with respect to the company’s production,
cost and capital and exploration expenditure guidance, expectations
regarding reductions in discretionary spending and capital
expenditures, the ability of the company to stabilize and optimize
the Copper Mountain mine operation, the implementation of stripping
strategies and the expected benefits therefrom, the estimated
timelines and pre-requisites for sanctioning the Copper World
project and the pursuit of a potential minority joint venture
partner, the possibility of and expectations regarding the results
of any challenges to the permits for the Copper World project, the
expected benefits of the sanctioning of the Copper World project,
the expected benefits of Manitoba growth initiatives, including the
use of the exploration drift at the 1901 deposit, the potential
utilization of excess capacity at the Stall mill, and the
advancement of the company’s exploration partnership with Marubeni,
the anticipated use of proceeds from the flow-through financing
completed during the fourth quarter of 2024, the company’s future
deleveraging strategies and the company’s ability to deleverage and
repay debt as needed, expectations regarding the company’s cash
balance and liquidity, expectations regarding the ability to
conduct exploration work and execute on exploration programs on its
properties and to advance related drill plans, including the
advancement of the exploration program at Maria Reyna and Caballito
and the status of the related drill permit application process, the
ability to continue mining higher-grade ore in the Pampacancha pit
and the company’s expectations resulting therefrom, expectations
regarding the ability for the company to further reduce greenhouse
gas emissions, the company’s evaluation and assessment of
opportunities to reprocess tailings using various metallurgical
technologies, expectations regarding the prospective nature of the
Maria Reyna and Caballito properties, the anticipated impact of
brownfield and greenfield growth projects on the company’s
performance, anticipated expansion opportunities and extension of
mine life in Snow Lake and the ability for Hudbay to find a new
anchor deposit near the company’s Snow Lake operations, anticipated
future drill programs and exploration activities and any results
expected therefrom, anticipated mine plans, anticipated metals
prices and the anticipated sensitivity of the company’s financial
performance to metals prices, events that may affect its operations
and development projects, anticipated cash flows from operations
and related liquidity requirements, the anticipated effect of
external factors on revenue, such as commodity prices, estimation
of mineral reserves and resources, mine life projections,
reclamation costs, economic outlook, government regulation of
mining operations, and business and acquisition strategies.
Forward-looking information is not, and cannot be, a guarantee of
future results or events. Forward-looking information is based on,
among other things, opinions, assumptions, estimates and analyses
that, while considered reasonable by the company at the date the
forward-looking information is provided, inherently are subject to
significant risks, uncertainties, contingencies and other factors
that may cause actual results and events to be materially different
from those expressed or implied by the forward-looking
information.
The material factors or assumptions that Hudbay
has identified and were applied in drawing conclusions or making
forecasts or projections set out in the forward-looking information
include, but are not limited to:
- the ability to achieve production, cost and capital and
exploration expenditure guidance;
- no significant interruptions to operations due to social or
political unrest in the regions Hudbay operates, including the
navigation of the complex political and social environment in
Peru;
- no interruptions to the company’s plans for advancing the
Copper World project, including those that may be caused by any
successful challenges to the Copper World permits and/or the
pursuit of a potential minority joint venture partner;
- the ability for the company to successfully complete the
stabilization and optimization of the Copper Mountain operations,
obtain required permits and develop and maintain good relations
with key stakeholders;
- the ability to execute on its exploration plans and to advance
related drill plans;
- the ability to advance the exploration program at the Maria
Reyna and Caballito properties;
- the success of mining, processing, exploration and development
activities;
- the scheduled maintenance and availability of the company’s
processing facilities;
- the accuracy of geological, mining and metallurgical
estimates;
- anticipated metals prices and the costs of production;
- the supply and demand for metals the company produces;
- the supply and availability of all forms of energy and fuels at
reasonable prices;
- no significant unanticipated operational or technical
difficulties;
- the execution of the company’s business and growth strategies,
including the success of its strategic investments and
initiatives;
- the availability of additional financing, if needed;
- the company’s ability to deleverage and repay debt as
needed;
- the ability to complete project targets on time and on budget
and other events that may affect the company’s ability to develop
its projects;
- the timing and receipt of various regulatory and governmental
approvals;
- the availability of personnel for the company’s exploration,
development and operational projects and ongoing employee
relations;
- maintaining good relations with the employees at the company’s
operations;
- maintaining good relations with the labour unions that
represent certain of the company’s employees in Manitoba and
Peru;
- maintaining good relations with the communities in which the
company operates, including the neighbouring Indigenous communities
and local governments;
- no significant unanticipated challenges with stakeholders at
the company’s various projects;
- no significant unanticipated events or changes relating to
regulatory, environmental, health and safety matters;
- no contests over title to the company’s properties, including
as a result of rights or claimed rights of Indigenous peoples or
challenges to the validity of the company’s unpatented mining
claims;
- the timing and possible outcome of pending litigation and no
significant unanticipated litigation;
- certain tax matters, including, but not limited to current tax
laws and regulations, changes in taxation policies and the refund
of certain value added taxes from the Canadian and Peruvian
governments; and
- no significant and continuing adverse changes in general
economic conditions or conditions in the financial markets
(including commodity prices and foreign exchange rates).
The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to, risks related to the failure
to effectively complete the stabilization, optimization and
expansion of the Copper Mountain mine operations, political and
social risks in the regions Hudbay operates, including the
navigation of the complex political and social environment in Peru,
risks generally associated with the mining industry and the current
geopolitical environment, including future commodity prices, the
potential implementation or expansion of tariffs, currency and
interest rate fluctuations, energy and consumable prices, supply
chain constraints and general cost escalation in the current
inflationary environment, uncertainties related to the development
and operation of the company’s projects, the risk of an indicator
of impairment or impairment reversal relating to a material mineral
property, risks related to the Copper World project, including in
relation to project delivery and financing risks, risks related to
the Lalor mine plan, including the ability to convert inferred
mineral resource estimates to higher confidence categories,
dependence on key personnel and employee and union relations, risks
related to political or social instability, unrest or change, risks
in respect of Indigenous and community relations, rights and title
claims, operational risks and hazards, including the cost of
maintaining and upgrading the company's tailings management
facilities and any unanticipated environmental, industrial and
geological events and developments and the inability to insure
against all risks, failure of plant, equipment, processes,
transportation and other infrastructure to operate as anticipated,
compliance with government and environmental regulations, including
permitting requirements and anti-bribery legislation, depletion of
the company’s reserves, volatile financial markets and interest
rates that may affect the company’s ability to obtain additional
financing on acceptable terms, the failure to obtain required
approvals or clearances from government authorities on a timely
basis, uncertainties related to the geology, continuity, grade and
estimates of mineral reserves and resources, and the potential for
variations in grade and recovery rates, uncertain costs of
reclamation activities, the company’s ability to comply with its
pension and other post-retirement obligations, the company’s
ability to abide by the covenants in its debt instruments and other
material contracts, tax refunds, hedging transactions, as well as
the risks discussed under the heading “Risk Factors” in the
company’s most recent Annual Information Form and under the heading
“Financial Risk Management” in the company’s most recent
management’s discussion and analysis, each of which is available on
the company’s SEDAR+ profile at www.sedarplus.ca and the company’s
EDGAR profile at www.sec.gov.
Should one or more risk, uncertainty,
contingency or other factor materialize or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, you should not place undue reliance on forward-looking
information. Hudbay does not assume any obligation to update or
revise any forward-looking information after the date of this news
release or to explain any material difference between subsequent
actual events and any forward-looking information, except as
required by applicable law.
Note to United States
Investors
This news release has been prepared in
accordance with the requirements of the securities laws in effect
in Canada, which may differ materially from the requirements of
United States securities laws applicable to U.S. issuers.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a copper-focused
critical minerals company with three long-life operations and a
world-class pipeline of copper growth projects in tier-one mining
jurisdictions of Canada, Peru and the United States.
Hudbay’s operating portfolio includes the
Constancia mine in Cusco (Peru), the Snow Lake operations in
Manitoba (Canada) and the Copper Mountain mine in British Columbia
(Canada). Copper is the primary metal produced by the company,
which is complemented by meaningful gold production and by-product
zinc, silver and molybdenum. Hudbay’s growth pipeline includes the
Copper World project in Arizona (United States), the Mason project
in Nevada (United States), the Llaguen project in La Libertad
(Peru) and several expansion and exploration opportunities near its
existing operations.
The value Hudbay creates and the impact it has
is embodied in its purpose statement: “We care about our people,
our communities and our planet. Hudbay provides the metals the
world needs. We work sustainably, transform lives and create better
futures for communities.” Hudbay’s mission is to create sustainable
value and strong returns by leveraging its core strengths in
community relations, focused exploration, mine development and
efficient operations.
For further information, please contact:
Candace BrûléVice President, Investor Relations, Financial
Analysis and External Communications
(416) 814-4387investor.relations@hudbay.com
____________________
i Adjusted net earnings (loss) - attributable to owners and
adjusted net earnings (loss) per share - attributable to owners,
adjusted EBITDA, cash cost, sustaining cash cost, all-in sustaining
cash cost per pound of copper produced, net of by-product credits,
cash cost, sustaining cash cost per ounce of gold produced, net of
by-product credits, combined unit cost, net debt and net debt to
adjusted EBITDA ratio are non-GAAP financial performance measures
with no standardized definition under IFRS. For further information
and a detailed reconciliation, please see the discussion under the
“Non-GAAP Financial Performance Measures” section of this news
release. |
ii Calculated using the midpoint of the guidance range. |
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