Hudbay Minerals (TSX: HBM; NYSE: HBM) reported record quarterly and annual revenue of $602.2 million and $1.7 billion, respectively, on Friday, pushing its shares up by as much as 7.7% in afternoon trading.
The miner reported copper production of 45,450 tonnes and record consolidated gold production of 112,776 oz. in the fourth quarter. This was attributed to sustained higher grades at the Pampacancha deposit in Peru and the Lalor mine in Manitoba, along with contributions from the newly acquired Copper Mountain mine in British Columbia.
Hudbay reported operating cash flow before changes in non-cash working capital of $246.5 million in the fourth quarter, marking a 35% increase compared to $182 million in the third quarter.
BMO mining analyst Jackie Przybylowski said in a note to clients that it was a “terrific” quarter for the company and singled out the performance of its Manitoba operations.
“Hudbay exceeded all expectations with strong production, notably including gold production from Manitoba, which contributed to adjusted EPS US$0.20 — well ahead of our US$0.07 and the consensus US$0.12-0.14 estimates,” she wrote.
The company achieved its 2023 consolidated production guidance for all metals.
In full-year 2023, copper production reached 131,691 tonnes, gold production totalled 310,429 oz, and silver production amounted to 3.6 million ounces. These figures represented increases of 26%, 41%, and 13%, respectively, compared to 2022.
Hudbay’s Peru operations benefited from sustained higher grades at the Pampacancha satellite pit, resulting in 33,207 tonnes of copper production and 49,418 oz. of gold production in the fourth quarter. Meanwhile, Manitoba operations achieved a quarterly record of 59,863 oz. of gold, as higher-grade gold and copper zones were mined at Lalor, and the New Britannia mill processed significantly more gold ore. British Columbia operations produced 8,508 tonnes of copper.
Shares of Hudbay Minerals were up 4.6% for the day in late afternoon in Toronto at $7.54. The miner has a market capitalization of $2.6 billion.
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