Hudbay Minerals (HBM) Q3 2024 earnings summary

Executive summary

• Achieved record gold production in Manitoba and strong consolidated copper output in Q3 2024, with gold up 52% and copper up 10% sequentially from Q2 2024.

• Maintained steady free cash flow generation and continued significant debt reduction, with net debt reduced by $506M year-over-year and improved balance sheet flexibility.

• Enhanced operating platform enabled reaffirmation of 2024 consolidated production guidance and further improvement in cash cost guidance.

• Operational excellence continued across Peru, Manitoba, and British Columbia, supporting growth initiatives and deleveraging.

• Delivered five consecutive quarters of meaningful free cash flow.

Financial highlights

• Q3 2024 revenue was $485.8 million, up from $425.5 million in Q2 2024.

• Adjusted EBITDA reached $206.2 million, a 42% increase from Q2 2024; trailing 12-month adjusted EBITDA: $840M.

• Net earnings attributable to owners were $49.8 million ($0.13/share) versus a net loss of $16.6 million ($0.05/share) in Q2 2024.

• Free cash flow of $86M in Q3 2024, marking five consecutive quarters of positive free cash flow.

• Net debt reduced to $625.6 million, with net debt to adjusted EBITDA at 0.7x, down from 1.6x at end-2023.

Outlook and guidance

• 2024 consolidated production guidance reaffirmed for all metals; copper production expected at lower end, gold at top end of guidance range.

• Full-year consolidated cash cost guidance improved to $0.65–$0.85/lb copper (from $0.90–$1.10 previously); sustaining cash cost guidance lowered to $1.75–$2.20/lb.

• Manitoba gold production expected to exceed top end of guidance; Peru and BC to meet or be near guidance.