Buoyant Gold Output Boosted Hudbay Minerals Q2 Results

SEATTLE (Scrap Monster): Hudbay Minerals Inc. released its second quarter 2020 financial results.

The company reported increased production of all metals during the quarter, compared with the prior quarter. Increasing gold grades at Lalor and record gold recoveries at Stall led to record gold production in Q2.

Hudbay Minerals reported net loss of $51.9 million or $0.20 per share in Q2. The adjusted net loss per share was $0.15 and adjusted EBITDA was $49.1 million. The comparatively lower revenues from the Peru operations impacted the operating cash flow, which witnessed a drop from $42 million to $29.5 million over the quarter. The cash and cash equivalents surged higher during the quarter to $391.1 million as at June 30, 2020.

The copper production targets for its Peruvian operations were revised downwards to 65,000-75,000 tonnes from the earlier forecast of 80,000-95,000 tonnes. Also, the gold production target for 2020 has been lowered from previously announced 45,000-55,000 ounces to 25,000-35,000 ounces. In addition, the Pampacancha production start date has been further pushed from H2 2020 to early 2021.

Hudbay Minerals noted that Covid-19 pandemic had significant impact on its Peru business in Q2. The Constancia mill, which had to suspend operations on account of nationwide emergency, has resumed full operations on May 18^th.

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