Profits are up for Hudbay Minerals over the second quarter of 2018.
The company announced a net profit of $25 million during its second quarter release on July 31, up from the $19 million net profit reported in the second quarter of 2017.
At the same time, Hudbay reduced its debt position by $49 million, cutting the company’s net debt to $536 million.
In an information package obtained by The Reminder, Hudbay officials state the company is well on the way to meeting expectations for production and capital expenditure. However, some unforeseen circumstances, including a fan outage at the Lalor mine, colder than expected weather and an increase in costs at 777 mine, will lead to Manitoba mine and mill unit operating costs to be between $125 and $135 per tonne this year. The costs will be between 10 and 15 per cent higher than 2017, due in part to higher mining costs at 777 and Lalor, maintenance of the Flin Flon mill and the shutdown of Reed mine.
Manitoba mines owned by Hudbay saw around 44,000 tonnes of valuable material pulled out of the ground, including 33,170 tonnes of zinc, 10,807 tonnes of copper and 32,363 ounces of gold-equivalent precious metals. That represents a seven per cent decline from the same time period one year ago, with increased production at the now-shut down Reed mine site countered by decreased activity at 777.
Zinc production dropped by five per cent, due in part to lower zinc grades from Lalor mine. Precious metal production saw a sharp increase over the second quarter of 2017, with gold production going up 19 per cent and silver increasing by 34 per cent.
Hudbay operations in Peru did not produce as much copper as last year. The Constancia copper project produced just over 26,000 tonnes of copper during the second quarter, about 10 per cent lower than in the second quarter of 2017. The company said the change was due to a decline in mine grades and was expected and in accordance with the mine plan.
