First Gold Production from New Britannia Mill Scheduled

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

The company announced that it expects first gold production from its New Britannia mill in Manitoba by third quarter next year. The refurbishment works at the mill is almost 64% complete. It plans to commission the gold plant in mid-2021, nearly three months ahead of schedule. The refurbishment is expected to more than double the gold production from Lalor mine in the Snow Lake region, during the initial eight years of the plant’s operation.

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Hudbay Minerals delivered a solid operating quarter with steady production and cost performance from the Manitoba and Peru operations. The increased gold grades at Lalor resulted in strong gold production during the quarter. However, the consolidated gold production, at 29,277 ounces, registered nearly 10% decline from the prior quarter.

It posted a net loss of $24 million in Q3 this year. The adjusted net loss during the quarter was $25.4 million. The adjusted EBITDA stood at $96.1 million.

The Q4 production and sales volume in Manitoba are likely to be impacted by production interruption at the 777 mine. However, the company expects to meet all production and cost guidance for the full year 2020, despite challenged posed by Covid-19 pandemic.