Hudbay Minerals (HBM) Q2 2024 earnings summary

Executive summary

• Operations executed on plan in Q2 2024, with strong copper and gold production growth, improved cost guidance, and accelerated deleveraging.

• Adjusted EBITDA reached $145M in Q2 2024, with free cash flow of $30M–$31M and revenue of $425.5M.

• Net debt reduced by over $405.9M in H1 2024, supported by a $402.5M equity offering and significant debt repayments.

• Maintained strong liquidity with $524M in cash and equivalents and $949M in available liquidity at quarter-end.

• Advanced key growth projects and exploration, including Copper World, Manitoba, and Lalor Northwest.

Financial highlights

• Q2 2024 copper production: 29,000–29,217 tonnes; gold: 58,614–59,000 ounces; silver: 738,700 ounces; zinc: 8,100 tonnes.

• Q2 cash cost: $1.14/lb copper, down from $1.60/lb in Q2 2023; 2024 guidance improved to $0.90–$1.10/lb.

• Adjusted EBITDA: $145M in Q2; trailing 12-month adjusted EBITDA: $824M, up from $407M a year ago.

• Operating cash flow before working capital: $122M; net loss attributable to owners: $16.6M; adjusted EPS: $0.00.

• Free cash flow: $30M–$31M in Q2; nearly $400M generated over the last 12 months.

Outlook and guidance

• 2024 consolidated production guidance reaffirmed for all metals.

• Copper production expected below midpoint of guidance; gold production above midpoint due to grade and timing impacts.

• Stronger production anticipated in H2 2024 as higher grades are accessed in Peru and British Columbia.

• Improved annual consolidated cash cost guidance to $0.90–$1.10/lb copper.