The following is a summary of the Hudbay Minerals Inc. (HBM) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Hudbay Minerals reported a strong Q2, executing well on production plans and achieving a consolidated copper production of 29,000 tons and gold production of 59,000 ounces.

• Consolidated cash costs improved to $1.14 per pound of copper.

• Operating cash flow before changes in working capital was $122 million, with $139 million generated from operating activities.

• Adjusted EBITDA for Q2 was $145 million, and free cash flow generation continued with approximately $30 million this quarter.

• A successful equity offering added $386 million net to cash, helping reduce net debt by over $550 million in the past 12 months, leading to a net debt to adjusted EBITDA ratio of 0.8x.

Business Progress:

• Hudbay continues its strategic mine development and optimization in various regions, emphasizing operational efficiency and cost control.

• The company is executing a stripping program in British Columbia and Peru to access higher ore grades and anticipates stronger production in H2 2024.

• Hudbay successfully reduced its gold prepay liabilities and improved its balance sheet significantly through measures such as debt repayment and equity offerings.

Opportunities:

• Potential to increase future production at Constancia due to a regulatory change in Peru allowing mining companies to expand throughput.

• Prospective joint venture opportunities for the Copper World project post-permitting, aiming to enhance copper extraction and meet growing demand.

Risks:

• Operative risks remain due to factors such as lower-than-expected ore grades at some mines and various logistical challenges, including the impact of heavy rains in Peru earlier in the year.

More details: Hudbay Minerals IR

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