Business
Hudbay Minerals Announces Second Quarter 2020 Results
TORONTO, Aug. 11, 2020 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE:HBM) today released its second quarter 2020 financial res
About this update from Hudbay Minerals Inc
[{"type":"text","content":" TORONTO, Aug. 11, 2020 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE:HBM) today released its second quarter 2020 financial results. All amounts are in U.S. dollars, unless otherwise noted. Second Quarter Results Boosted by Strong Manitoba Operations Strong production and cost performance from the Manitoba operations during the quarter; an increase in production of all metals over the first quarter and record gold production driven by increasing Lalor gold grades and record gold recoveries at Stall. Successfully achieved efficient restart of operations at Constancia in mid-May with increased government-supported COVID-19 health and safety protocols in place. Second quarter net loss was $51.9 million or $0.20 per share. Second quarter adjusted net lossi per share was $0.15 and adjusted EBITDAi was $49.1 million after adjusting for the impact of the Peru temporary suspension costs and a partial reversal of the Peru inventory write-down from last quarter. Operating cash flow before change in non-cash working capital decreased to $29.5 million in the second quarter of 2020 from $42.0 million in the first quarter of 2020 due to lower revenues from the Peru operations, offset by higher realized gold prices and higher gold sales in Manitoba. Cash and cash equivalents increased during the second quarter to $391.1 million as at June 30, 2020 as a result of the previously announced $115.0 million gold prepay transaction and cash generated from operations, partially offset by capital investments on the New Britannia refurbishment project. On Track to Achieve Manitoba Guidance; Updated Peru Guidance Owing to the outstanding performance from the Manitoba operations in the first half of 2020, and the ability to achieve safe and continuous operations despite COVID-19 operating challenges, Hudbay is on track to meet all Manitoba production and cost guidance for 2020. COVID-19 in Peru had a significant impact on Hudbay’s business in the second quarter and continues to be a risk the company is actively managing. A government declared state of emergency in mid-March required the suspension of operations at Constancia for a period of eight weeks. The Constancia mill resumed full operation on May 18 processing stockpiled ore, and mining activities returned to normal levels in early July under a successful phased res...