 | Hudbay Minerals- HBM.t is a Canadian integrated mining company with operations, development properties and exploration activities across the Americas. The company has operations in Manitoba and Peru. |  |
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Summary:
- Over 150% growth in copper production compared to the first quarter of 2015
- Continued ongoing cost reduction efforts and economies of scale resulting in consolidated cash cost, net of by-product credits, of
$1.15 per pound and all-in sustaining cash cost, net of by-product credits, of$1.80 per pound1 - Operating cash flow before changes in non-cash working capital increased to
$71.9 million , or$0.31 per share, from$16.9 million , or$0.07 per share, in the first quarter of 20151 - Planned replacement of trunnions on one of the two Constancia grinding circuits completed ahead of schedule during
March 2016 and both circuits now operating at full capacity
The net loss and loss per share in the first quarter of 2016 were $15.8 million and $0.07 , respectively, compared to a net loss and loss per share of $19.8 million and $0.08 , respectively, in the first quarter of 2015. The current period's loss reflects $23.0 million in interest expense that is no longer capitalized following the achievement of commercial production at Constancia on April 30, 2015 .
"Since achieving commercial production last year, Constancia's operating performance, coupled with our stable Manitoba operations, have enabled us to generate increasing cash flows, despite the sharp declines in metals prices," said Alan Hair , president and chief executive officer. "Based on our operating and cost performance to date, we are on track to meet the cost reduction targets of over $100 million we announced last quarter, as well as our production, operating and capital cost guidance."
Notwithstanding lower metals prices, revenues nearly doubled in the first quarter of 2016 to $253.6 million , $124.9 million higher than the same period in 2015. This increase was primarily due to higher sales volumes compared to the first quarter of 2015 as a result of commercial production being achieved at Constancia. Higher sales volumes were partially offset by lower prices for copper and zinc.
As a result of the ramp-up of production at Constancia and ongoing cost reduction initiatives, consolidated cash cost, net of by-product credits, declined to$1.15 per pound in the first quarter of 2016 from $1.44 per pound in the first quarter of 2015. Similarly, incorporating sustaining capital, royalties and corporate general and administrative ("G&A") costs, consolidated all-in sustaining cash cost, net of by-product credits, declined to $1.80 per pound in the first quarter of 2016 from $2.67 per pound in the first quarter of 2015.
In the first quarter of 2016, operating cash flow before change in non-cash working capital increased to $71.9 million from $16.9 million in the first quarter of 2015. The increase in sales volumes and associated economies of scale more than offset the sharp decline in realized sales prices of copper and zinc metals compared to the same quarter last year.
The cost reduction initiatives announced on February 24, 2016 are on track to meet Hudbay's targets for 2016. Based on these efforts and operating results to date, the company expects to meet all of its production, operating and capital cost guidance.
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http://canadastockjournal.blogspot.com/2016/04/hudbay-minerals-hbmt.html
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