Hudbay Minerals Inc. (“Hudbay” or the “company”)
(TSX:HBM) (NYSE:HBM) today released its third quarter 2017
financial results. All amounts are in U.S. dollars, unless
otherwise noted.
Summary:
- Operating cash flow1 of $154 million, a 24% increase from the
second quarter 2017
- Consolidated copper production of 40,445 tonnes, essentially
unchanged from the second quarter 2017
- Consolidated zinc production of 36,635 tonnes, a 5% increase
from the second quarter 2017
- Consolidated cash cost2, net of by-product credits, of $0.86
per pound of copper, a 1% increase from the second quarter
2017
- Consolidated all-in sustaining cash cost2, net of by-product
credits, of $1.64 per pound of copper, a 10% increase from the
second quarter 2017
- Completed equity offering of 24 million common shares for gross
proceeds of C$242 million
- Continued reduction of net debt2 to $650 million from June 30,
2017 net debt levels of $950 million
- Fully repaid remaining cash borrowings on senior secured credit
facilities; total available liquidity of $750 million,
including $329 million in cash, at September 30, 2017
- Peru operations on track to meet production, operating cost and
capital cost guidance for 2017
- Manitoba operations on track to meet production guidance for
2017, at moderately higher operating costs relative to
guidance
________________________________1 Operating cash flow before change
in non-cash working capital.2 Cash cost and all-in sustaining cash
cost per pound, net of by-product credits, and net debt are not
recognized under IFRS. For a detailed description of each of these
non-IFRS financial performance measures used in this news release,
please see the discussion under “Non-IFRS Financial Performance
Measures” beginning on page 6 of this news release. |
Net profit and earnings per share in the third
quarter of 2017 were $40.9 million and $0.17, respectively,
compared to a net profit and earnings per share of $33.6 million
and $0.14, respectively, in the third quarter of 2016.
In the third quarter of 2017, operating cash
flow before change in non‑cash working capital increased to $153.9
million from $124.1 million in the second quarter of 2017. The
increase in operating cash flow is the result of growth in sales
volumes of zinc and gold and higher realized copper and zinc
prices, partially offset by decreases in the sales volumes of
copper.
“We continued to generate growing positive free
cash flow and we significantly reduced our debt balances during the
quarter,” said Alan Hair, president and chief executive officer.
“We remain committed to delivering on our operating targets and
advancing the in-house brownfield opportunities at Lalor and
Pampacancha, while continuing to progress the Rosemont
project.”
Net profit and earnings per share in the third
quarter of 2017 were affected by, among other things, the following
items:
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Pre-tax gain (loss) |
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After-tax gain (loss) |
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Per share gain (loss) |
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($ millions) |
($ millions) |
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($/share) |
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Foreign
exchange loss |
(6.5) |
|
(6.0) |
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(0.02) |
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Mark-to-market adjustments of various items |
(9.4) |
|
(8.4) |
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(0.04) |
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Transaction
costs written-off due to debt refinancing |
(3.6) |
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(2.4) |
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(0.01) |
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Recovery
for damages during commissioning of Constancia mill |
4.2 |
|
2.7 |
|
0.01 |
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Non-cash
deferred tax adjustments |
- |
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4.2 |
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0.02 |
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Compared to the same quarter of 2016, production
of zinc in concentrate increased as a result of higher zinc grades
in Manitoba, while copper production declined due to expected lower
copper grades in Peru.
In the third quarter of 2017, consolidated cash
cost per pound of copper produced, net of by-product credits, was
$0.86, a decrease compared to $0.91 in the same period of last
year. Incorporating sustaining capital, capitalized exploration,
royalties and corporate selling and administrative expenses,
consolidated all-in sustaining cash cost per pound of copper
produced, net of by-product credits, in the third quarter of 2017
was $1.64, up from $1.46 in the third quarter of 2016. The increase
in all-in sustaining cash cost was driven by higher planned
sustaining capital expenditures in Peru and lower copper production
compared to the third quarter of 2016.
Cash and cash equivalents increased by $176.3
million in the third quarter to $328.9 million compared to June 30,
2017. This increase was a result of cash generated from operating
activities of $167.9 million, net proceeds from an equity issuance
of $187.4 million, and gross proceeds from a sale and leaseback
equipment refinancing of $67.3 million. These inflows were partly
offset by $69.9 million of capital investments primarily at
Hudbay’s Peru and Manitoba operations, debt repayments net of
borrowings of $125.2 million and interest payments of $36.9
million.
Net debt declined by $300.2 million from June
30, 2017 to $649.6 million at September 30, 2017, as a result of
cash flow from Hudbay’s operations and $187.4 million of net
proceeds from the equity issuance. At September 30, 2017, total
liquidity, including cash and available credit facilities, was
$749.9 million, up from $496.8 million at June 30, 2017.
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Financial Condition ($000s) |
Sep. 30, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
|
Cash and cash
equivalents |
328,927 |
152,672 |
146,864 |
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Total long-term
debt |
978,494 |
1,102,426 |
1,232,164 |
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Net debt1 |
649,567 |
949,754 |
1,085,300 |
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Working capital |
260,305 |
86,112 |
121,539 |
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Total assets |
4,591,631 |
4,359,827 |
4,456,556 |
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Equity |
2,047,615 |
1,794,305 |
1,763,212 |
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1 Net debt
is a non-IFRS financial performance measure with no standardized
definition under IFRS. For further information, please see page 6
of this news release. |
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Financial Performance |
Three months ended |
Nine months ended |
($000s except per share and cash cost
amounts) |
Sep. 30 |
Sep. 30 |
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2017 |
2016 |
2017 |
2016 |
Revenue |
370,356 |
311,424 |
948,410 |
812,024 |
Cost of sales |
259,391 |
242,965 |
710,317 |
667,351 |
Profit before tax |
58,681 |
42,001 |
113,188 |
31,670 |
Profit |
40,942 |
33,571 |
64,223 |
12,080 |
Basic and diluted earnings per share |
0.17 |
0.14 |
0.27 |
0.05 |
Operating cash flow before change in
non-cash |
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working capital |
|
153,943 |
124,236 |
358,662 |
265,611 |
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Production and Cost
Performance |
Three months ended |
Three months ended |
|
Sep. 30, 2017 |
Sep. 30, 2016 |
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Peru |
Manitoba |
Total |
Peru |
Manitoba |
Total |
Contained metal in concentrate
produced1 |
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Copper |
tonnes |
30,936 |
9,509 |
40,445 |
35,604 |
10,333 |
45,937 |
|
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Gold |
oz |
4,702 |
23,975 |
28,677 |
6,867 |
22,998 |
29,865 |
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Silver |
oz |
617,959 |
317,567 |
935,526 |
749,498 |
294,293 |
1,043,791 |
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Zinc |
tonnes |
- |
36,635 |
36,635 |
- |
31,606 |
31,606 |
Payable metal in
concentrate sold |
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Copper |
tonnes |
30,128 |
11,384 |
41,512 |
38,859 |
9,647 |
48,506 |
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Gold |
oz |
3,103 |
24,526 |
27,629 |
6,479 |
19,235 |
25,714 |
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Silver |
oz |
465,251 |
292,261 |
757,512 |
573,097 |
207,156 |
780,253 |
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Zinc2 |
tonnes |
- |
27,804 |
27,804 |
- |
26,211 |
26,211 |
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Cash cost3 |
$/lb |
1.19 |
(0.20) |
0.86 |
1.13 |
0.18 |
0.91 |
Sustaining cash cost3 |
$/lb |
1.80 |
0.59 |
|
1.60 |
0.69 |
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All-in sustaining cash cost3 |
$/lb |
|
|
1.64 |
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|
1.46 |
Realized copper price4 |
$/lb |
|
|
2.88 |
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|
2.20 |
|
Nine months ended |
Nine months ended |
|
Sep. 30, 2017 |
Sep. 30, 2016 |
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Peru |
Manitoba |
Total |
Peru |
Manitoba |
Total |
Contained metal in concentrate
produced1 |
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Copper |
tonnes |
87,944 |
28,073 |
116,017 |
99,446 |
31,262 |
130,708 |
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Gold |
oz |
12,440 |
63,625 |
76,065 |
21,243 |
65,571 |
86,814 |
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Silver |
oz |
1,703,789 |
779,978 |
2,483,767 |
2,036,940 |
726,278 |
2,763,218 |
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Zinc |
tonnes |
- |
102,101 |
102,101 |
- |
81,438 |
81,438 |
Payable metal in concentrate
sold |
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Copper |
tonnes |
77,175 |
30,001 |
107,176 |
96,694 |
30,565 |
127,259 |
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Gold |
oz |
8,022 |
70,527 |
78,549 |
18,016 |
52,170 |
70,186 |
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Silver |
oz |
1,407,130 |
817,653 |
2,224,783 |
1,721,512 |
548,923 |
2,270,435 |
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Zinc2 |
tonnes |
- |
84,059 |
84,059 |
- |
75,359 |
75,359 |
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Cash cost3 |
$/lb |
1.24 |
(0.31) |
0.86 |
1.08 |
0.55 |
0.95 |
Sustaining cash cost3 |
$/lb |
1.74 |
0.42 |
|
1.49 |
1.34 |
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All-in sustaining cash cost3 |
$/lb |
|
|
1.53 |
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|
1.54 |
Realized copper price4 |
$/lb |
|
|
2.70 |
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|
2.16 |
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1 Metal
reported in concentrate is prior to deductions associated with
smelter contract terms.2 Includes refined zinc metal sold and
payable zinc in concentrate sold.3 Cash cost, sustaining cash cost
and all-in sustaining cash cost per pound of copper produced, net
of by-product credits, are non-IFRS financial performance measures
with no standardized definition under IFRS. For further
information, please see page 6 of this news release.4 Realized
prices exclude refining and treatment charges and are on the sale
of finished metal or metal in concentrate. Realized prices include
the effect of provisional pricing adjustments on prior period
sales. |
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Peru Operations Review
During the third quarter of 2017, the Peru
operations produced 30,936 tonnes of copper, which was
approximately 4% higher than production in the second quarter of
2017 as a result of improved mill throughput, but lower than
production in the same quarter of 2016 due to expected grade
decline as per the mine plan. Production in Peru is expected to be
within guidance ranges for 2017.
Ore mined at Constancia during the third quarter
of 2017 increased by 18% compared to the same period in 2016 as the
company continues to increase stockpiles to improve its ability to
blend ore at the processing plant. As expected, milled copper
grades in the third quarter were approximately 21% lower than the
same period in 2016 as Constancia entered lower grade phases of the
mine plan. Mill throughput significantly improved due to increased
plant availability as well as plant optimization initiatives during
the third quarter of 2017.
Recoveries of copper and silver were lower in
the third quarter of 2017, compared to the same period in 2016
primarily due to expected lower head grades and normal ore type
variability. Optimization in process recoveries continues to be
implemented and evaluated along with consistent positive grade
reconciliations.
Combined mine, mill and G&A unit operating
costs in the third quarter of 2017 were 14% lower than the same
period in 2016 as a result of increased throughput and lower
operating costs. Combined unit operating costs in Peru are expected
to be within the guidance range for 2017.
Cash cost per pound of copper produced, net of
by-product credits, for the three months ended September 30, 2017
was $1.19, an increase of 5% from the same period in 2016 mainly as
a result of decreased copper grades.
Sustaining cash cost per pound of copper
produced, net of by-product credits, for the three months ended
September 30, 2017 was $1.80, an increase of 13% from the same
period in 2016 as a result of the factors noted above, as well as
expected higher sustaining capital expenditures.
Manitoba Operations Review
During the third quarter of 2017, the Manitoba
operations produced 36,635 tonnes of zinc, 9,509 tonnes of copper
and 28,512 ounces of gold-equivalent precious metals. Production of
zinc and precious metals was higher than the same quarter in 2016
by approximately 16% and 5%, respectively, as a result of higher
grades at 777 and Lalor as well as higher production at Lalor.
Production of copper during the quarter decreased by approximately
8% from the same period in 2016 because of lower production at 777.
Due to increased Lalor mine throughput and higher zinc grades at
777, zinc concentrate production is exceeding the processing
capacity of the Flin Flon zinc plant. As a result, sales of excess
zinc concentrate inventory began in the second quarter of 2017 and
will continue as long as concentrate production exceeds zinc plant
processing capacity. Production in Manitoba is expected to be
within guidance ranges for 2017.
Ore mined at Hudbay’s Manitoba operations during
the third quarter of 2017 was consistent with ore mined in the same
period in 2016. Increased production at the Lalor and Reed mines
was partially offset by decreased production at the 777 mine.
Overall, copper, zinc, gold and silver grades were 3%, 20%, 9% and
10% higher, respectively, in the third quarter of 2017 compared to
the same period of 2016. Grade variances were due to planned stope
sequencing, including the re-sequencing of the 777 mine plan to
prioritize higher grade zinc stopes in 2017.
Unit operating costs for all Manitoba mines for
the third quarter of 2017 increased by 33% compared to the same
period in 2016. Hudbay ceased capitalizing Reed development costs
in the third quarter of 2017 as a result of the mine’s expected
closure in the third quarter of 2018, resulting in higher Reed unit
operating costs compared to prior periods. The 777 mine experienced
a plugged paste backfill line at the start of the third quarter of
2017, which has since been restored; however, the lack of paste
backfill reduced the number of production stopes in the quarter,
and 777 costs were affected by the cleaning and re-drilling of
backfill holes and the cost of cemented rock fill to mitigate the
lack of paste. The impact on production rates is expected to
continue into the fourth quarter of 2017, with the mine expected to
return to normal production rates and expected costs towards the
end of the year. Consistent with our revised mine plan, Lalor’s
unit costs reflect increased cement rock filling costs as well as
substantial operating and capital development work that was
undertaken to increase Lalor’s production rate to 4,500 tonnes per
day. The strong ramp up of ore production from the Lalor mine in
2017 has resulted in the accumulation of an ore stockpile as
Lalor’s mine production has exceeded the Stall concentrator’s
current milling capacity. The company intends to take advantage of
higher metals prices and increase revenues at a slightly higher
unit cost by trucking excess Lalor ore to the Flin Flon mill for
processing for the remainder of the year.
Ore processed in Flin Flon in the third quarter
of 2017 was 10% lower than the same period in 2016 as a result of
lower production at the 777 mine, which was partially offset by
processing 63,936 tonnes of ore from the Lalor mine. Copper
recovery in the third quarter of 2017 was consistent with the same
period in 2016, while zinc, gold, and silver recoveries were 6%,
7%, and 8% higher, respectively, due to higher head grades. Unit
operating costs at the Flin Flon concentrator were 20% lower in the
third quarter of 2017 compared to the same period in 2016 as a
result of lower maintenance expenditures. Ore processed and
recoveries at the Stall concentrator in the third quarter of 2017
were consistent with the same period in 2016. Unit operating costs
at the Stall concentrator were 12% higher in the third quarter of
2017 compared to the same period in 2016 as a result of higher
maintenance expenditures.
Manitoba combined mine, mill and G&A unit
operating costs in the third quarter were 30% higher than in the
same period in 2016 for the reasons outlined above. In addition,
the stockpiling of Lalor ore described above increased combined
mine/mill unit costs as that metric is expressed as total costs
during the period (irrespective of inventory changes), divided by
the tonnes of ore milled. This factor should reverse as stockpiles
reduce, although future costs will be affected by higher Reed mine
unit costs as the capitalization of development costs has ceased,
and additional costs will be incurred to truck Lalor ore to the
Flin Flon mill. Processing the additional Lalor production in Flin
Flon is expected to drive economies of scale and additional
revenues through a faster ramp up. Combined unit operating costs in
Manitoba for the full year 2017 are expected to be moderately
higher than the guidance range of C$88-108 per tonne.
Cash cost, net of by-product credits, in the
third quarter of 2017 was negative $0.20 per pound of copper
produced compared to $0.18 in the third quarter of 2016. The
decrease is primarily a result of significantly increased
by-product credits for all metals, which were partially offset by
expected higher costs at the 777 and Reed mines during this part of
their mine lives.
Sustaining cash cost, net of by-product credits, in the third
quarter of 2017 decreased to $0.59 per pound of copper produced
compared to $0.69 in the third quarter of 2016 as a result of the
same factors described above which were partially offset by planned
increased capital spending.
Rosemont Developments
Work continues with the U.S. Forest Service on
the draft Mine Plan of Operations, which is progressing as planned.
The remaining key federal permit outstanding is the Section 404
Water Permit from the U.S. Army Corps of Engineers.
On September 25, 2017, an opponent of the
Rosemont project filed a lawsuit against the U.S. Fish and Wildlife
Service and U.S. Forest Service challenging, among other things,
the issuance of the Final Record of Decision in respect of
Rosemont. This lawsuit is one of many challenges against the
Rosemont permitting process and Hudbay is confident the permits
will be upheld.
Equity Issuance
On September 27, 2017, Hudbay completed an
equity offering of 24,000,000 common shares at a price
of C$10.10 per share, for gross proceeds of C$242.4
million ($195.3 million).
Hudbay intends to use the net proceeds of the
offering to advance its current growth projects, enhance its
financial flexibility to pursue other growth opportunities, reduce
debt and for general corporate purposes.
Non-IFRS Financial Performance
Measures
Net debt is shown in this news release because
it is a performance measure used by the company to assess its
financial position. Cash cost, sustaining and all-in sustaining
cash cost per pound of copper produced are shown because the
company believes they help investors and management assess the
performance of its operations, including the margin generated by
the operations and the company. These measures do not have a
meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other issuers. These
measures should not be considered in isolation or as a substitute
for measures prepared in accordance with IFRS and are not
necessarily indicative of operating profit or cash flow from
operations as determined under IFRS. Other companies may calculate
these measures differently. For further details on these measures,
including reconciliations to the most comparable IFRS measures,
please refer to page 29 of Hudbay’s management’s discussion and
analysis for the three and nine months ended September 30, 2017
available on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Website Links
Hudbay:
www.hudbay.com
Management’s Discussion and Analysis:
http://www.hudbayminerals.com/files/doc_financials/2017/Q3/MDA317.pdf
Financial Statements:
http://www.hudbayminerals.com/files/doc_financials/2017/Q3/FS317.pdf
Conference Call and Webcast
Date: |
Thursday, November 2,
2017 |
Time: |
10 a.m. ET |
Webcast: |
www.hudbay.com |
Dial in: |
416-849-1847 or
1-866-530-1554 |
|
|
Qualified Person
The technical and scientific information in this
news release related to the Constancia mine and Rosemont project
has been approved by Cashel Meagher, P. Geo, Hudbay’s Senior Vice
President and Chief Operating Officer. The technical and scientific
information related to the Manitoba sites and projects contained in
this news release has been approved by Robert Carter, P. Eng,
Hudbay’s Lalor Mine Manager. Messrs. Meagher and Carter are
qualified persons pursuant to NI 43‑101. For a description of the
key assumptions, parameters and methods used to estimate mineral
reserves and resources, as well as data verification procedures and
a general discussion of the extent to which the estimates of
scientific and technical information may be affected by any known
environmental, permitting, legal title, taxation, sociopolitical,
marketing or other relevant factors, please see the Technical
Reports for the company’s material properties as filed by Hudbay on
SEDAR at www.sedar.com.
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, cost and capital and exploration
expenditure guidance, anticipated production at Hudbay’s mines and
processing facilities, the anticipated timing, cost and benefits of
developing the Rosemont project, Pampacancha deposit and Lalor
growth projects, anticipated exploration plans, anticipated mine
plans, anticipated metals prices and the anticipated sensitivity of
the company’s financial performance to metals prices, the
anticipated use of proceeds from the recent common equity offering,
events that may affect its operations and development projects, the
permitting, development and financing of the Rosemont project, the
potential to increase throughput at the Stall mill and to refurbish
the New Britannia mill, anticipated cash flows from operations and
related liquidity requirements, the anticipated effect of external
factors on revenue, such as commodity prices, estimation of mineral
reserves and resources, mine life projections, reclamation costs,
economic outlook, government regulation of mining operations, and
business and acquisition strategies. 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 sustainability and success of Hudbay’s cost reduction
initiatives;
- 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 and Rosemont project and First Nations communities
surrounding the Lalor and Reed mines;
- 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 (including risks associated
with the permitting, development and economics of the Rosemont
project and related legal challenges), risks related to the
maturing nature of the 777 and Reed mines and their impact on the
related Flin Flon metallurgical complex, 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), risks related
to the cost, schedule and economics of the capital projects
intended to increase processing capacity for Lalor ore, 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 primarily producing copper concentrate (containing
copper, gold and silver), zinc concentrate 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.
Directly and 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’s growth strategy is focused on the exploration and
development of properties it already controls, as well as other
mineral assets it may acquire that fit its strategic criteria.
Hudbay’s vision is to become a top-tier operator of long-life,
low-cost mines in the Americas. Hudbay’s mission is to create
sustainable value through the acquisition, development and
operation of high-quality and growing long-life deposits in
mining-friendly jurisdictions. 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.
For further information, please
contact:
Carla NawrockiDirector, Investor Relations(416)
362-7362carla.nawrocki@hudbay.com
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