Hudbay Minerals Inc. (“Hudbay” or the “company”)
(TSX:HBM) (NYSE:HBM) today released its fourth quarter and full
year 2017 financial results. All amounts are in U.S. dollars,
unless otherwise noted.
Summary:
- On a consolidated basis, full year metals production met or
exceeded 2017 guidance ranges
- Net profit of $99.7 million and basic and diluted earnings per
share of $0.38 in the fourth quarter of 2017, compared to a net
loss of $47.3 million and loss per share of $0.20 in the fourth
quarter of 2016
- Operating cash flow1 of $172 million in the fourth quarter of
2017, a 41% increase from the fourth quarter of 2016, and $531
million for the full year 2017, a 37% increase from 2016
- Reduced net debt2 position by $462 million and improved
liquidity during 2017; as at December 31, 2017, Hudbay had net debt
of $623 million and total available liquidity of $778 million,
including $356 million in cash
- Consolidated cash cost2, net of by-product credits, of $0.77
per pound of copper, a 9% decrease from the fourth quarter of
2016
- Consolidated all-in sustaining cash cost2, net of by-product
credits, of $1.49 per pound of copper in the fourth quarter of
2017, up 2% from $1.46 in the fourth quarter of 2016
- Full year combined unit operating costs at Manitoba and Peru
exceeded 2017 guidance ranges, primarily due to increased operating
costs and lower than expected mill throughput; zinc unit operating
costs were within the guidance range
Net profit and basic and diluted earnings per
share in the fourth quarter of 2017 were $99.7 million and $0.38,
respectively, compared to a net loss and loss per share of $47.3
million and $0.20, respectively, in the fourth quarter of 2016.
In the fourth quarter of 2017, operating cash
flow before change in non‑cash working capital was
$171.9 million, compared to $122.3 million in the fourth
quarter of 2016. The increase in operating cash flow is the result
of higher realized copper and zinc prices, while higher zinc sales
and precious metals sales offset lower copper sales.
“We ended 2017 on a positive note by achieving
or exceeding production guidance and continuing to grow positive
free cash flow while reducing debt,” said Alan Hair, president and
chief executive officer. “Our focus for 2018 is delivering on this
year’s operating targets and completing the ramp-up of base metal
ore production at Lalor, commencing production from the Lalor gold
zones and Pampacancha, and moving Rosemont through the permitting
process into development.”
_____________________________
1 Operating cash flow before change in non-cash working
capital.
2 Cash cost and all-in sustaining cash cost per pound, net of
by-product credits and net debt are not recognized under IFRS. For
a detailed description of each of these non-IFRS financial
performance measures, please see the discussion under “Non-IFRS
Financial Performance Measures” beginning on page 6 of this news
release.
Net profit and earnings per share in the fourth
quarter of 2017 were affected by, among other things, the following
items:
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax gain (loss) |
|
After-tax gain (loss) |
|
Per share gain (loss) |
|
|
|
|
($ millions) |
($ millions) |
|
($/share) |
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market adjustments of various items |
(5.6) |
|
(4.3) |
|
(0.02) |
|
|
Past
service pension costs |
(10.4) |
|
(6.9) |
|
(0.03) |
|
|
Gain on
contingent consideration from Balmat sale |
6.4 |
|
6.4 |
|
0.03 |
|
|
Asset
impairment |
(11.3) |
|
(7.5) |
|
(0.03) |
|
|
Non-cash
deferred tax adjustments |
- |
|
45.4 |
|
0.17 |
|
|
|
|
|
|
|
|
|
|
Compared to the fourth quarter of 2016,
production of zinc, gold and silver in concentrate increased due to
increased Lalor mine throughput and higher zinc grades at 777,
while copper production remained consistent.
In the fourth quarter of 2017, consolidated cash
cost per pound of copper produced, net of by-product credits, was
$0.77, a decrease compared to $0.85 in the same period of last
year. Incorporating sustaining capital, capitalized exploration,
royalties and corporate selling and administrative expenses,
consolidated all-in sustaining cash cost per pound of copper
produced, net of by-product credits, in the fourth quarter of 2017
was $1.49, up from $1.46 in the fourth quarter of 2016. The
increase in all-in sustaining cash cost was driven by higher
planned sustaining capital expenditures in Manitoba.
Cash and cash equivalents increased by $27.6
million in the fourth quarter of 2017 to $356.5 million at December
31, 2017. This increase was mainly a result of operating cash flow
of $129.4 million, partly offset by $88.0 million of capital
expenditures and $9.5 million in expenditures related to financing
activities.
Net debt declined to $623.1 million at December
31, 2017 from $649.6 million at September 30, 2017, as a result of
cash flow from Hudbay’s operations. At December 31, 2017, total
liquidity, including cash and available credit facilities, was
$777.9 million, up from $749.9 million at September 30, 2017. Over
the course of 2017, net debt declined from $1,085.3 million to
$623.1 million.
During the fourth quarter, Hudbay recognized a
pre-tax expense of $10.4 million for past service pension costs
arising from new collective bargaining agreements in the Manitoba
business unit. The company also recognized an asset impairment
charge of $11.3 million related to equipment purchased to build a
new concentrator in Snow Lake, Manitoba, that the company no longer
expects to be usable in its operations. Hudbay realized a gain of
$6.4 million upon receipt of deferred consideration from the sale
of the Balmat mine, which followed the completion of certain
milestones.
Financial Condition ($000s) |
Dec. 31, 2017 |
Dec. 31, 2016 |
Cash and cash equivalents |
356,499 |
146,864 |
Total long-term debt |
979,575 |
1,232,164 |
Net debt1 |
623,076 |
1,085,300 |
Working capital |
308,675 |
121,539 |
Total assets |
4,648,729 |
4,456,556 |
Equity |
2,144,255 |
1,763,212 |
1 Net debt is a non-IFRS financial performance measure with no
standardized definition under IFRS. For further information, please
see page 6 of this news release.
Financial Performance |
Three months ended |
Year ended |
($000s except per share and cash cost
amounts) |
Dec. 31 |
Dec. 31 |
|
|
2017 |
2016 |
2017 |
2016 |
Revenue |
414,143 |
316,654 |
1,362,553 |
1,128,678 |
Cost of sales |
278,291 |
238,449 |
988,608 |
905,800 |
Profit (loss) before tax |
85,540 |
(26,065) |
198,728 |
5,605 |
Profit (loss) |
99,676 |
(47,273) |
163,899 |
(35,193) |
Basic and diluted earnings (loss) per
share |
0.38 |
(0.20) |
0.67 |
(0.15) |
Operating cash flow before change in
non-cash |
|
|
|
|
working capital |
171,904 |
122,257 |
530,561 |
387,868 |
|
Production and Cost
Performance |
Three months ended |
Three months ended |
|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
|
Peru |
Manitoba |
Total |
Peru |
Manitoba |
Total |
Contained metal in concentrate
produced1 |
|
|
|
|
|
|
Copper |
tonnes |
33,837 |
9,338 |
43,175 |
33,986 |
9,797 |
43,783 |
|
Gold |
oz |
5,139 |
27,389 |
32,528 |
5,033 |
22,449 |
27,482 |
|
Silver |
oz |
670,219 |
333,272 |
1,003,491 |
723,392 |
269,286 |
992,678 |
|
Zinc |
tonnes |
- |
33,055 |
33,055 |
- |
29,144 |
29,144 |
Payable metal in
concentrate sold |
|
|
|
|
|
|
|
Copper |
tonnes |
34,227 |
7,252 |
41,479 |
35,969 |
8,223 |
44,192 |
|
Gold |
oz |
4,442 |
26,779 |
31,221 |
6,183 |
19,158 |
25,341 |
|
Silver |
oz |
543,763 |
291,723 |
835,486 |
701,654 |
209,671 |
911,325 |
|
Zinc2 |
tonnes |
- |
32,318 |
32,318 |
- |
28,094 |
28,094 |
|
Cash cost3 |
$/lb |
1.38 |
(1.42) |
0.77 |
1.11 |
(0.06) |
0.85 |
Sustaining cash cost3 |
$/lb |
1.81 |
(0.35) |
|
1.54 |
0.58 |
|
All-in sustaining cash cost3 |
$/lb |
|
|
1.49 |
|
|
1.46 |
Realized copper price4 |
$/lb |
|
|
3.13 |
|
|
2.37 |
|
Year ended |
Year ended |
|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
|
Peru |
Manitoba |
Total |
Peru |
Manitoba |
Total |
Contained metal in concentrate
produced1 |
|
|
|
|
|
|
Copper |
tonnes |
121,781 |
37,411 |
159,192 |
133,432 |
41,059 |
174,491 |
|
Gold |
oz |
17,579 |
91,014 |
108,593 |
26,276 |
88,020 |
114,296 |
|
Silver |
oz |
2,374,008 |
1,113,250 |
3,487,258 |
2,760,332 |
995,564 |
3,755,896 |
|
Zinc |
tonnes |
- |
135,156 |
135,156 |
- |
110,582 |
110,582 |
Payable metal in concentrate
sold |
|
|
|
|
|
|
|
Copper |
tonnes |
111,402 |
37,253 |
148,655 |
132,663 |
38,788 |
171,451 |
|
Gold |
oz |
12,464 |
97,306 |
109,770 |
24,199 |
71,328 |
95,527 |
|
Silver |
oz |
1,950,893 |
1,109,376 |
3,060,269 |
2,423,165 |
758,594 |
3,181,759 |
|
Zinc2 |
tonnes |
- |
116,377 |
116,377 |
- |
103,453 |
103,453 |
|
Cash cost3 |
$/lb |
1.28 |
(0.59) |
0.84 |
1.09 |
0.41 |
0.93 |
Sustaining cash cost3 |
$/lb |
1.76 |
0.23 |
|
1.51 |
1.16 |
|
All-in sustaining cash cost3 |
$/lb |
|
|
1.52 |
|
|
1.52 |
Realized copper price4 |
$/lb |
|
|
2.82 |
|
|
2.21 |
1 Metal
reported in concentrate is prior to deductions associated with
smelter contract terms.2 Includes refined zinc metal sold and
payable zinc in concentrate sold.3 Cash cost, sustaining cash cost
and all-in sustaining cash cost per pound of copper produced, net
of by-product credits, are non-IFRS financial performance measures
with no standardized definition under IFRS. For further
information, please see page 6 of this news release.4 Realized
prices exclude refining and treatment charges and are on the sale
of finished metal or metal in concentrate. Realized prices include
the effect of provisional pricing adjustments on prior period
sales. |
Peru Operations Review
During the fourth quarter of 2017, the Peru
operations produced 33,837 tonnes of copper, which was
approximately 9% higher than production in the third quarter of
2017 as a result of improved copper head grade and copper
recoveries, and consistent with the same quarter of 2016 as
expected grade decline was offset by improved mill throughput. In
2017, copper production at Constancia exceeded the guidance ranges,
while precious metals production was slightly below the lower end
of the guidance range.
Recoveries of copper, gold and silver were
higher in the fourth quarter of 2017, compared to the same period
in 2016. Optimization of plant performance continues to be a focus
at Constancia.
Combined mine, mill and G&A unit operating
costs in the fourth quarter of 2017 were 22% higher than the same
period in 2016. The higher combined unit costs are mostly related
to decreased capitalized stripping, higher utility prices and
higher overall operating costs due to increased molybdenum
production during the period. Additionally, increased plant
maintenance costs were incurred during a significant scheduled
plant shutdown. Full year 2017 unit operating costs were higher
than guidance expectations due to lower than expected mill
throughput in the first half of the year combined with factors
affecting the fourth quarter costs described above.
Cash cost per pound of copper produced, net of
by-product credits, for the three months ended December 31, 2017
was $1.38, an increase of 24% from the same period in 2016 mainly
as a result of lower deferred stripping, increased plant cash costs
and profit sharing.
Sustaining cash cost per pound of copper
produced, net of by-product credits, for the three months ended
December 31, 2017 was $1.81, an increase of 18% from the same
period in 2016 as a result of the factors noted above.
Negotiations to secure surface rights over the
Pampacancha deposit are ongoing. The community has provided Hudbay
with access to the land to carry out early-works activities and
Hudbay expects to begin ore production later this year. In the
event that the commencement of mining at Pampacancha is
unexpectedly delayed beyond 2018, Hudbay expects to mine material
from the Constancia pit instead, which would not impact copper
production guidance, but would reduce 2018 Peru precious metals
production guidance by approximately 25%.
Twin hole drilling in the Constancia pit has
indicated that the positive copper grade bias versus resource
grades that has been experienced since the start of Constancia’s
production is expected to persist through the life of the deposit,
although the extent of the bias is expected to be less than what
has been experienced to date. 2018 Peru copper guidance partially
reflects the anticipated grade bias; work is ongoing to develop a
revised mine plan and updated reserves, which are expected to be
released by April 2018.
Manitoba Operations Review
During the fourth quarter of 2017, the Manitoba
operations produced 33,055 tonnes of zinc, 9,338 tonnes of copper
and 32,150 ounces of gold-equivalent precious metals. Production of
zinc and precious metals was higher than the same quarter in 2016
by approximately 13% and 22%, respectively, as a result of higher
grades at all mines as well as higher ore production at Lalor.
Production of all metals in Manitoba for full year 2017 was within
the guidance ranges.
Ore mined at Hudbay’s Manitoba operations during
the fourth quarter of 2017 decreased by 5% compared to the same
period in 2016 primarily as a result of lower production at the 777
mine. Ore mined at the 777 mine declined as ground conditions
necessitated the implementation of a more conservative stope
sequence in order to adapt to more challenging operating conditions
as the mine ages. Lower than planned equipment availability and
delays in the mine sequence resulting from a plugged paste backfill
line in the third quarter also impacted fourth quarter 777
production rates. Overall copper, zinc, gold and silver grades were
higher in the fourth quarter of 2017 compared to the same period in
2016 by 9%, 17%, 25% and 26%, respectively, as a result of higher
grades at all mines. Unit operating costs in the fourth quarter of
2017 were 44% higher compared to the same period in 2016.
Hudbay ceased capitalizing Reed development
costs in the third quarter of 2017 as a result of the mine’s
expected closure in the third quarter of 2018, resulting in higher
Reed unit operating costs compared to prior periods. The 777
mine’s unit costs were negatively impacted by lower production as a
result of the items noted above. Consistent with Hudbay’s revised
mine plan, Lalor’s unit costs reflect increased cement rock filling
costs as well as substantial operating and capital development work
that was undertaken to increase Lalor’s production rate to 4,500
tonnes per day by the third quarter of 2018. The successful
ramp up of ore production from the Lalor mine has resulted in the
accumulation of an ore stockpile which exceeds the Stall
concentrator’s current milling capacity. With the intention to take
advantage of higher metal prices and increase Hudbay’s revenues,
excess Lalor ore was trucked to the Flin Flon mill for processing,
which contributed to the increased unit costs for Lalor.
Ore processed in Flin Flon in the fourth quarter
of 2017 was 13% lower than the same period in 2016 primarily as a
result of lower mine production, and challenges in primary crushing
due to frozen blocks of ore feed recovered from stockpiles. Copper
and precious metals recoveries were higher in the fourth quarter of
2017 compared to the same period in 2016 as a result of higher head
grades, and improvements made to the mill. Unit operating costs at
the Flin Flon concentrator were 12% higher in the fourth quarter of
2017 compared to the same period in 2016 as a result of higher
maintenance expenditures and reduced production. Ore processed at
the Stall concentrator in the fourth quarter of 2017 was 4% higher
than the same period in 2016. Unit operating costs at the Stall
concentrator were 5% higher in the fourth quarter of 2017 compared
to the same period in 2016 as a result of higher maintenance
expenditures resulting from unplanned repairs.
Manitoba combined mine, mill and G&A unit
operating costs in the fourth quarter and full year in 2017 were
29% and 27% higher, respectively, than in the same periods in 2016
due to the factors described above. In addition, the stockpiling of
Lalor ore increased combined mine/mill unit costs, as that metric
is expressed as total costs during the period (irrespective of
inventory changes) divided by the tonnes of ore milled. Processing
the additional Lalor production in Flin Flon is expected to drive
economies of scale and additional revenues through a faster ramp
up. Combined mine/mill unit operating costs in Manitoba exceeded
the guidance range for the reasons noted above. Zinc plant
production and unit operating costs were within the guidance ranges
for 2017.
Cash cost per pound of copper produced, net of
by-product credits, in the fourth quarter of 2017 and full year
were negative $1.42 and negative $0.59 per pound of copper
produced, respectively. These were lower compared to the same
periods in 2016 due primarily to significantly increased by-product
credits for all metals, which were partially offset by expected
higher costs at Hudbay’s 777 and Reed mines during this part of
their mine
lives.
Sustaining cash cost per pound of copper produced, net of
by-product credits, in the fourth quarter of 2017 and full year
were negative $0.35 and $0.23 per pound of copper produced,
respectively, compared to $0.58 and $1.16 in the prior year as a
result of the same factors described above, which were partially
offset by planned increased capital spending.
Rosemont Developments
Work continues with the U.S. Forest Service on
the draft Mine Plan of Operations, which is progressing as planned.
The remaining key federal permit outstanding is the Section 404
Water Permit from the U.S. Army Corps of Engineers.
On November 27, 2017, opponents of the Rosemont
project filed a lawsuit against the U.S. Forest Service
challenging, among other things, the issuance of the Final Record
of Decision in respect of Rosemont. This is one of two active
lawsuits challenging the Final Record of Decision and is one of the
many legal challenges that have been advanced against the Rosemont
permitting process. Hudbay is confident that Rosemont’s permits
will continue to be upheld.
Collective Bargaining
Agreements
Three-year collective bargaining agreements have
been entered into with Hudbay’s unionized workforces at each of
its Manitoba and Peru operations, providing
labour stability.
Dividend Declared
Hudbay declared a semi-annual dividend of C$0.01
per share on February 21, 2018. The dividend will be paid on March
29, 2018 to shareholders of record as of March 9, 2018.
Outlook
Production, capital expenditure, exploration and
unit cost guidance for 2018 remains unchanged from that provided on
January 17, 2018.
Non-IFRS Financial Performance
Measures
Net debt is shown in this news release because
it is a performance measure used by the company to assess its
financial position. 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. 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. For further details on these measures,
including reconciliations to the most comparable IFRS measures,
please refer to page 39 of Hudbay’s management’s discussion
and analysis for the three months and year ended December 31, 2017
available on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Website Links
Hudbay:
www.hudbay.com
Management’s Discussion and Analysis:
http://www.hudbayminerals.com/files/doc_financials/2017/Q4/MDA174.pdf
Financial Statements:
http://www.hudbayminerals.com/files/doc_financials/2017/Q4/FS174.pdf
Conference Call and Webcast
Date: |
Thursday, February 22,
2018 |
Time: |
10 a.m. ET |
Webcast: |
www.hudbay.com |
Dial in: |
416-849-1847 or
1-866-530-1554 |
Qualified Person
The technical and scientific information in this
news release related to the Constancia mine and Rosemont project
has been approved by Cashel Meagher, P. Geo, Hudbay’s Senior Vice
President and Chief Operating Officer. The technical and scientific
information related to the Manitoba sites and projects contained in
this news release has been approved by Robert Carter, P. Eng,
Hudbay’s General Manager Mining Operations, Manitoba Business Unit.
Messrs. Meagher and Carter are qualified persons pursuant to NI
43‑101. For a description of the key assumptions, parameters and
methods used to estimate mineral reserves and resources, 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.sedar.com.
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, production, cost and capital and exploration
expenditure guidance, anticipated production at Hudbay’s mines and
processing facilities, the anticipated timing, cost and benefits of
developing the Rosemont project, Pampacancha deposit and Lalor
growth projects, the anticipated impact of any delays to the start
of mining the Pampacancha deposit, the anticipated results of
litigation challenging the Rosemont permitting process, Hudbay’s
expectations regarding the persistence of the positive grade
reconciliation at Constancia and a restatement of the mineral
reserves, anticipated exploration plans, 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, the permitting,
development and financing of the Rosemont project, the potential to
optimize the scale of production at Lalor and to efficiently
process the excess base metals ore and initial gold zone ore
production at the Flin Flon mill, 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
identified and were applied by the company in drawing conclusions
or making forecasts or projections set out in the forward-looking
information include, but are not limited to:
- the success of mining, processing, exploration and development
activities;
- the scheduled maintenance and availability of the 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 Hudbay’s business and growth strategies,
including the success of its strategic investments and
initiatives;
- the availability of additional financing, if 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, governmental and
joint venture partner approvals;
- the availability of personnel for the exploration, development
and operational projects and ongoing employee relations;
- the ability to secure required land rights to develop the
Pampacancha deposit;
- maintaining good relations with the communities in which the
company operates, including the communities surrounding the
Constancia mine and Rosemont project and First Nations communities
surrounding the Lalor and Reed mines;
- 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 aboriginal peoples;
- 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 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 generally associated
with the mining industry, such as economic factors (including
future commodity prices, currency fluctuations, energy prices and
general cost escalation), uncertainties related to the development
and operation of the company’s projects (including risks associated
with the permitting, development and economics of the Rosemont
project and related legal challenges), risks related to the
maturing nature of the 777 mine and the pending closure of the Reed
mine and their impact on the related Flin Flon metallurgical
complex, dependence on key personnel and employee and union
relations, risks related to the schedule for mining the Pampacancha
deposit (including the timing and cost of acquiring the required
surface rights and the impact of any schedule delays), risks
related to the cost, schedule and economics of the capital projects
intended to increase processing capacity for Lalor ore, risks
related to political or social unrest or change, risks in respect
of aboriginal and community relations, rights and title claims,
operational risks and hazards, including 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 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
Hudbay’s most recent Annual Information Form.
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:HBM) (NYSE:HBM) is an integrated
mining company primarily producing copper concentrate (containing
copper, gold and silver), zinc concentrate and zinc metal. With
assets in North and South America, the company is focused on the
discovery, production and marketing of base and precious metals.
Directly and through its subsidiaries, Hudbay owns four
polymetallic mines, four ore concentrators and a zinc production
facility in northern Manitoba and Saskatchewan (Canada) and Cusco
(Peru), and a copper project in Arizona (United States). The
company’s growth strategy is focused on the exploration and
development of properties it already controls, as well as other
mineral assets it may acquire that fit its strategic criteria.
Hudbay’s vision is to be a responsible, top-tier operator of
long-life, low-cost mines in the Americas. Hudbay’s mission is to
create sustainable value through the acquisition, development and
operation of high-quality, long-life deposits with exploration
potential in jurisdictions that support responsible mining, and to
see the regions and communities in which the company operates
benefit from its presence. The company is governed by the Canada
Business Corporations Act and its shares are listed under the
symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange
and Bolsa de Valores de Lima. Hudbay also has warrants listed under
the symbol “HBM.WT” on the Toronto Stock Exchange and “HBM/WS” on
the New York Stock Exchange.
For further information, please contact:
Carla NawrockiDirector, Investor Relations(416)
362-7362carla.nawrocki@hudbay.com
HudBay Minerals (NYSE:HBM)
Historical Stock Chart
From Aug 2024 to Sep 2024
HudBay Minerals (NYSE:HBM)
Historical Stock Chart
From Sep 2023 to Sep 2024