Hudbay Minerals Inc (HBM) Q3 2024 Earnings Call Highlights: Record Gold Production and Strong ...

In This Article:

  • Consolidated Copper Production: 31,000 tons in Q3 2024.

  • Consolidated Gold Production: 89,000 ounces, a 52% increase from Q2 2024.

  • Consolidated Cash Costs: $0.18 per pound of copper in Q3 2024, improved from $1.14 in Q2 2024.

  • Consolidated Sustaining Cash Costs: $1.71 per pound.

  • All-in Sustaining Cash Costs: $1.95 per pound.

  • Operating Cash Flow: $186 million, a 53% increase from Q2 2024.

  • Adjusted EBITDA: $206 million, a 42% increase from $145 million in Q2 2024.

  • Adjusted Earnings Per Share: $0.13 in Q3 2024.

  • Free Cash Flow Generation: $86 million in Q3 2024.

  • Debt Reduction: Over $65 million of debt and gold prepay liabilities paid back in Q3 2024.

  • Net Debt Reduction: More than $500 million over the past 12 months.

  • Net Debt-to-Adjusted EBITDA Ratio: 0.7x compared to 1.6x at the end of 2023.

  • Peru Copper Production: 21,000 tons in Q3 2024.

  • Peru Gold Production: 20,000 ounces in Q3 2024.

  • Manitoba Gold Production: 62,000 ounces, a 44% increase from Q2 2024.

  • Manitoba Gold Cash Costs: $372 per ounce, a 52% decrease from the prior quarter.

  • British Columbia Copper Production: 6,700 tons in Q3 2024.

  • British Columbia Gold Production: 6,300 ounces in Q3 2024.

  • British Columbia Cash Costs: $1.81 per pound, 32% lower than the prior quarter.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Hudbay Minerals Inc (NYSE:HBM) reported strong operational and financial performance in Q3 2024, with steady free cash flow generation and continued debt reduction.

  • Record gold production was achieved in Manitoba, driven by new quarterly record throughput levels at the New Britannia mill.

  • The company improved its full-year 2024 consolidated cash cost guidance to a range of $0.65 to $0.85 per pound of copper, down from the previously announced range.

  • Hudbay Minerals Inc (NYSE:HBM) reduced net debt by more than $500 million over the past 12 months, significantly improving its balance sheet flexibility.

  • The company achieved a 42% increase in adjusted EBITDA compared to the previous quarter, reaching $206 million.

Negative Points

  • Consolidated copper production is expected to trend towards the lower end of the guidance range for 2024.

  • Copper production in British Columbia is expected to be slightly below the low end of the 2024 guidance range due to lower grades in stockpiled ore.

  • The stabilization phase at Copper Mountain is ongoing, with a long timeline to reach steady state operations.

  • Hudbay Minerals Inc (NYSE:HBM) faces uncertainties related to the permitting process for its Copper World project, which could impact timelines.

  • The company is experiencing higher mining and freight costs in Peru, which could affect overall cost performance.

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