Hudbay Minerals Inc. (“Hudbay” or the “company”)
(TSX:HBM) (NYSE:HBM) announced today that it is hosting a site
visit by analysts and investors to its Constancia mine in Peru on
July 17-18, 2018. A copy of the site visit presentation,
which contains operational and other updates, is available on
Hudbay’s website at www.hudbay.com.
Hudbay also today released its second quarter
2018 production results for its Peru operations. All amounts are in
US dollars, unless otherwise noted:
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Three months ended |
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Six months ended |
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Peru Production Performance |
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Jun. 30, |
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Jun. 30, |
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Jun. 30, |
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Jun. 30, |
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2018 |
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2017 |
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2018 |
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2017 |
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Ore
mined1 |
tonnes |
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8,744,200 |
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7,337,531 |
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18,233,969 |
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14,550,731 |
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Copper |
% |
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0.47 |
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0.55 |
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0.49 |
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0.55 |
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Gold |
g/tonne
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0.05 |
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0.04 |
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0.05 |
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0.04 |
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Silver |
g/tonne |
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4.03 |
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3.81 |
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4.11 |
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3.92 |
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Ore
milled |
tonnes |
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7,726,606 |
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6,931,690 |
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15,577,775 |
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13,249,299 |
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Copper |
% |
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0.44 |
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0.53 |
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0.47 |
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0.54 |
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Gold |
g/tonne |
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0.05 |
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0.04 |
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0.05 |
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0.04 |
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Silver |
g/tonne |
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3.92 |
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3.91 |
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4.01 |
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4.08 |
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Copper concentrate |
tonnes |
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113,739 |
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118,586 |
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242,286 |
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227,122 |
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Concentrate grade |
% Cu |
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23.58 |
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25.13 |
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24.09 |
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25.10 |
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Copper recovery |
% |
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79.7 |
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80.6 |
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80.3 |
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80.4 |
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Gold recovery |
% |
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44.8 |
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44.8 |
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44.9 |
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44.7 |
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Silver recovery |
% |
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61.2 |
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62.6 |
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61.9 |
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62.4 |
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1 |
Reported tonnes and grade for ore mined are estimates
based on mine plan assumptions and may not reconcile fully to ore
milled. |
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Three months ended |
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Six months ended |
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Guidance |
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Contained metal in |
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Jun. 30, |
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Jun. 30, |
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Jun. 30, |
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Jun. 30, |
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Annual |
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concentrate produced |
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2018 |
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2017 |
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2018 |
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2017 |
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2018 |
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Copper |
tonnes |
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26,817 |
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29,798 |
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58,369 |
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57,009 |
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95,000 - 115,000 |
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Gold |
oz |
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5,190 |
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3,802 |
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10,608 |
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7,737 |
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Silver |
oz |
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596,571 |
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546,295 |
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1,242,456 |
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1,085,830 |
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Precious metals1 |
oz |
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13,713 |
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11,606 |
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28,357 |
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23,249 |
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50,000 - 70,0002 |
1 |
Precious metals production includes gold and silver
production on a gold-equivalent basis. Silver is converted to gold
at a ratio of 70:1. |
2 |
Initial 2018 guidance for Constancia precious
metals production was 65,000 to 85,000 ounces. |
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Peru Production Review
During the second quarter of 2018, the Peru
operations produced 26,817 tonnes of copper, which was
approximately 10% lower than production in the second quarter of
2017 as a result of lower copper head grade in accordance with the
mine plan, offset in part by higher mill throughput.
Recoveries of copper and silver were slightly
lower in the second quarter of 2018, compared to the same period in
2017, while gold recoveries remain unchanged over the same period.
Several metallurgical initiatives are being implemented by Hudbay
with the intention of increasing copper recoveries as anticipated
in the recently filed 2018 Technical Report for Constancia.
Forward-Looking
Information
This news release contains forward-looking information within the
meaning of applicable Canadian and United States securities
legislation. All information contained in this news release, other
than statements of current and historical fact, is forward-looking
information. Often, but not always, forward-looking information can
be identified by the use of words such as “plans”, “expects”,
“budget”, “guidance”, “scheduled”, “estimates”, “forecasts”,
“strategy”, “target”, “intends”, “objective”, “goal”,
“understands”, “anticipates” and “believes” (and variations of
these or similar words) and statements that certain actions, events
or results “may”, “could”, “would”, “should”, “might” “occur” or
“be achieved” or “will be taken” (and variations of these or
similar expressions). All of the forward-looking information in
this news release is qualified by this cautionary note.
Forward-looking information includes, but is not
limited to, production guidance for Constancia and the planned
metallurgical initiatives that are being implemented at Constancia
with the intention of increasing copper recoveries. Forward-looking
information is not, and cannot be, a guarantee of future results or
events. Forward-looking information is based on, among other
things, opinions, assumptions, estimates and analyses that, while
considered reasonable by the company at the date the
forward-looking information is provided, inherently are subject to
significant risks, uncertainties, contingencies and other factors
that may cause actual results and events to be materially different
from those expressed or implied by the forward-looking
information.
The material factors or assumptions that Hudbay
identified and were applied by the company in drawing conclusions
or making forecasts or projections set out in the forward-looking
information include, but are not limited to:
- the success of mining, processing, exploration and development
activities;
- the scheduled maintenance and availability of the processing
facilities;
- the accuracy of geological, mining and metallurgical
estimates;
- anticipated metals prices and the costs of production;
- the supply and demand for metals the company produces;
- the supply and availability of all forms of energy and fuels at
reasonable prices;
- no significant unanticipated operational or technical
difficulties;
- the execution of Hudbay’s business and growth strategies,
including the success of its strategic investments and
initiatives;
- the availability of additional financing, if needed;
- the ability to complete project targets on time and on budget
and other events that may affect the company’s ability to develop
its projects;
- the timing and receipt of various regulatory, governmental and
joint venture partner approvals;
- the availability of personnel for the exploration, development
and operational projects and ongoing employee relations;
- the ability to secure required land rights to develop the
Pampacancha deposit;
- maintaining good relations with the communities in which the
company operates, including the communities surrounding the
Constancia mine;
- no significant unanticipated challenges with stakeholders at
the company’s various projects;
- no significant unanticipated events or changes relating to
regulatory, environmental, health and safety matters;
- no contests over title to the company’s properties, including
as a result of rights or claimed rights of aboriginal peoples;
- the timing and possible outcome of pending litigation and no
significant unanticipated litigation;
- certain tax matters, including, but not limited to current tax
laws and regulations and the refund of certain value added taxes
from the Canadian and Peruvian governments; and
- no significant and continuing adverse changes in general
economic conditions or conditions in the financial markets
(including commodity prices and foreign exchange rates).
The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to, risks generally associated
with the mining industry, such as economic factors (including
future commodity prices, currency fluctuations, energy prices and
general cost escalation), uncertainties related to the development
and operation of the company’s projects, dependence on key
personnel and employee and union relations, risks related to the
schedule for mining the Pampacancha deposit (including the timing
and cost of acquiring the required surface rights and the impact of
any schedule delays), risks related to political or social unrest
or change, risks in respect of aboriginal and community relations,
rights and title claims, operational risks and hazards, including
unanticipated environmental, industrial and geological events and
developments and the inability to insure against all risks, failure
of plant, equipment, processes, transportation and other
infrastructure to operate as anticipated, compliance with
government and environmental regulations, including permitting
requirements and anti-bribery legislation, depletion of the
company’s reserves, volatile financial markets that may affect the
company’s ability to obtain additional financing on acceptable
terms, the failure to obtain required approvals or clearances from
government authorities on a timely basis, uncertainties related to
the geology, continuity, grade and estimates of mineral reserves
and resources, and the potential for variations in grade and
recovery rates, uncertain costs of reclamation activities, the
company’s ability to comply with its pension and other
post-retirement obligations, the company’s ability to abide by the
covenants in its debt instruments and other material contracts, tax
refunds, hedging transactions, as well as the risks discussed under
the heading “Risk Factors” in Hudbay’s most recent Annual
Information Form.
Should one or more risk, uncertainty,
contingency or other factor materialize or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, you should not place undue reliance on forward-looking
information. Hudbay does not assume any obligation to update or
revise any forward-looking information after the date of this news
release or to explain any material difference between subsequent
actual events and any forward-looking information, except as
required by applicable law.
Note to United States Investors
This news release has been prepared in
accordance with the requirements of the securities laws in effect
in Canada, which may differ materially from the requirements of
United States securities laws applicable to U.S. issuers.
About Hudbay
Hudbay (TSX:HBM) (NYSE:HBM) is an integrated
mining company producing copper concentrate (containing copper,
gold and silver) and zinc metal. With assets in North and South
America, the company is focused on the discovery, production and
marketing of base and precious metals. Through its subsidiaries,
Hudbay owns four polymetallic mines, four ore concentrators and a
zinc production facility in northern Manitoba and Saskatchewan
(Canada) and Cusco (Peru), and a copper project in Arizona (United
States). The company is governed by the Canada Business
Corporations Act and its shares are listed under the symbol "HBM"
on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de
Valores de Lima. Hudbay also has warrants listed under the symbol
“HBM.WT” on the Toronto Stock Exchange and “HBM/WS” on the New York
Stock Exchange. Further information about Hudbay can be found on
www.hudbay.com.
For further information, please contact:
Carla NawrockiDirector, Investor Relations(416)
362-7362carla.nawrocki@hudbay.com
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