Q2 2024 Hudbay Minerals Inc Earnings Call Transcript
Key Points
- Hudbay Minerals Inc (HBM) achieved consolidated copper production of 29,000 tonnes and gold production of 59,000 ounces in Q2 2024, aligning with their production cadence expectations.
- The company improved its 2024 consolidated cash cost guidance to a range of $0.9 to $1.10 per pound of copper, down from the previous range of $1.5 to $1.25 per pound.
- Hudbay Minerals Inc (HBM) generated $30 million in free cash flow in Q2 2024, continuing a trend of positive free cash flow over the last 12 months.
- The company successfully completed a $400 million equity offering, which was oversubscribed and upsized, adding $386 million of net proceeds to their cash balance.
- Hudbay Minerals Inc (HBM) reduced its net debt by more than $550 million over the past 12 months, bringing the net debt to adjusted EBITDA ratio to 0.8 times.
- Consolidated copper production is expected to be below the midpoint of the 2024 guidance range due to lower than expected grades and timing impacts from heavy rains in Peru.
- Operating cash flow before changes in non-cash working capital was $122 million, lower than the first quarter due to planned lower production levels.
- Adjusted EBITDA of $145 million in Q2 2024 was lower than the first quarter, impacted by lower copper and zinc sales volumes due to shipment timing.
- The company faced challenges in Manitoba, including forest fires and temporary production interruptions at the Lalor mine, affecting quarterly production.
- Copper production at the Copper Mountain Mine in British Columbia was slightly lower than the first quarter, primarily due to lower head grades from processing stockpiled ore.
Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Hudbay Minerals Inc. second-quarter 2024 results conference call. (Operator Instructions) I would like to remind everyone that this conference call is being recorded today August 13, 2024 at 11:00 AM, Eastern time. I will now turn the conference over to Candace Brule Lake, Vice President, Investor Relations. Please go ahead.
Thank you, operator. Good morning, and welcome to Hudbay's 2024 second quarter results conference call. Hudbay's financial results were issued this morning and are available on our website at www.hudbay.com. A corresponding PowerPoint presentation is available on the Investors section of our website, and we encourage you to refer to it during this call.
Our presenter today is Peter Kukielski, Hudbay's President and Chief Executive Officer. Accompanying Peter for the Q&A portion of the call will be Eugene Lee, our Chief
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