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.

• Enhanced operational and financial performance across all sites, reaffirming 2024 production guidance and improving cost guidance.

• Delivered five consecutive quarters of positive free cash flow, supporting growth initiatives and deleveraging.

• Accelerated deleveraging, reducing net debt by $506M year-over-year and improving balance sheet flexibility.

• Continued operational excellence in Peru and British Columbia, with Manitoba gold production expected to exceed guidance.

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 was $840 million.

• Adjusted EPS was $0.13 per share; net earnings attributable to owners were $49.8 million.

• Free cash flow of $86 million 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 the lower end, gold at the higher end of guidance.

• Full-year cash cost guidance improved to $0.65–$0.85/lb copper; sustaining cash cost guidance improved to $1.75–$2.20/lb.

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

• Fourth quarter expected to be strongest in Peru.