Business
Hudbay Minerals Announces Q1 2020 Results
TORONTO, May 14, 2020 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE:HBM) today released its first quarter 2020 financial resul
About this update from Hudbay Minerals Inc
[{"type":"text","content":" TORONTO, May 14, 2020 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE:HBM) today released its first quarter 2020 financial results. All amounts are in U.S. dollars, unless otherwise noted. First Quarter Operating and Financial Results Delivered a solid operating quarter in Manitoba, which included record mine production at Lalor and record throughput at the Stall concentrator. Lalor ore mined and Stall concentrator throughput increased by 8% and 19%, respectively, in the first quarter of 2020 compared to the fourth quarter of 2019. Constancia achieved target mill throughput and operating unit costs during the quarter prior to its temporary shutdown. Net loss of $76.1 million or $0.29 per share for the first quarter of 2020 reflects lower realized base metal prices, lower Constancia grades in line with the mine plan and higher cost of sales in Peru as a result of the temporary suspension of Constancia and certain inventory valuation adjustments versus the previous quarter. Cash generated from operating activities decreased to $9.1 million in the first quarter of 2020 from $98.7 million in the fourth quarter of 2019, while operating cash flow before change in non-cash working capital decreased to $42.0 million in the first quarter from $69.1 million in the previous quarter due to lower realized base metal prices and lower Constancia grades. Cash and cash equivalents of $306.0 million as at March 31, 2020 continued to provide the company with financial flexibility during the temporary production disruption at Constancia and the current low base metal price environment and have since been bolstered by the gold prepay proceeds described below. COVID-19 and Annual Guidance The COVID-19 global pandemic has had a significant impact on Hudbay and the prices of the products it produces. The company experienced operational and supply chain disruptions, including a temporary suspension of operations at Constancia for a period of approximately eight weeks as a result of a government declared state of emergency in March. Operations continued in Manitoba without any impact to production or the ability to ship concentrate and zinc metal. Hudbay is affirming 2020 Manitoba production, operating cost and capital expenditure guidance. Peru guidance has been suspended due to the ongoing uncertainty surrounding COVID-...