HudBay Minerals Q2 Earnings Call Highlights

Hudbay Minerals NYSE: HBM reported second-quarter results marked by steady operating performance, record trailing-12-month adjusted EBITDA and continued progress on its copper growth pipeline, including projects in Arizona and British Columbia.

The company generated $631 million in revenue and $321 million in adjusted EBITDA during the quarter.

Adjusted net earnings attributable to owners totaled $114 million, or $0.28 per share, while operating cash flow before changes in non-cash working capital was $210 million.

Chief Executive Officer Peter Kukielski said Hudbay produced 28,000 tonnes of copper and 51,000 ounces of gold in the quarter and remains on track to meet full-year production guidance for all metals.

Consolidated cash costs were negative $0.40 per pound of copper, while sustaining cash costs were $1.39 per pound.

“We achieved record trailing 12-month adjusted EBITDA of $1.3 billion,” Kukielski said, citing the company’s copper and gold diversification and cost-control efforts.

Gold represented 38% of Hudbay’s gross revenue during the second quarter.

After sustaining capital expenditures but before growth investments, Hudbay generated more than $100 million in free cash flow, similar to the first quarter.

Over the past 12 months, the company generated more than $400 million in free cash flow.

As of June 30, Hudbay had more than $1 billion in liquidity, including $890 million in cash and cash equivalents, and reported a net cash position of $80 million.

Hudbay also announced executive changes.

Eugene Lei was appointed President and Chief Financial Officer, while Rob Carter was named Chief Operating Officer.

Carter will succeed Andre Lauzon, who plans to retire at the end of September.

Kukielski said Lei had been instrumental in the company’s transformation since becoming CFO in 2022, including efforts to strengthen the balance sheet, advance Copper World and establish a capital-allocation framework.

He credited Carter with helping revitalize Manitoba operations and bringing operational practices to the company’s Copper Mountain operation in British Columbia.

At Constancia in Peru, Hudbay produced 19,000 tonnes of copper, 5,000 ounces of gold, 565,000 ounces of silver and 277 tonnes of molybdenum.

Production was modestly lower than the prior quarter because of a planned semiannual plant maintenance shutdown. T...