Hudbay reports quarterly net loss, sheds more light on 777 transition plan

More information surrounding the pending shutdown of Hudbay’s Flin Flon facilities has been released by the company during its recent first quarter report.

Mine reserves at 777 will be depleted in the second quarter of 2022, according to Hudbay’s most recent estimates, an increase from the late 2021 shutdown date previously announced by the company. The mill and tailings facilities will be placed on care and maintenance after mining operations end.

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The zinc plant is expected to remain open until mid-2022 as part of the extension of 777’s lifespan announced earlier this year. Hudbay estimates 770 people will be needed to support the Lalor mine, Stall concentrator and the New Britannia facility.

Transition plans for the Flin Flon facilities will continue according to the fate of the 1901 Zone, a new Hudbay project announced earlier this year located near the Lalor mine and former Chisel North mine facilities.

As far as Hudbay’s finances go, the company reported a $13.4 million net loss in the first quarter of 2019, compared to a net profit of $41 million during the same period last year. The loss was blamed on lower copper sales volumes, a deferred revenue adjustment from changes to the company’s reserves and resources, and a delivery obligation with the company’s Pampacancha deposit located in Peru.

Hudbay reported $292.3 million in overall revenue, down from $386.7 million one year ago.

Ore mined by Hudbay operations in Manitoba increased by 19 per cent over the first quarter of 2019, due in large part to the ramping-up production at Lalor mine to 4500 tonnes per day and higher production volumes at 777 mine.

The company provided updates on several ongoing projects, mentioning the February release of the updated Lalor mine plan in Snow Lake and the discovery and exploration at the 1901 Zone. Updates with Hudbay’s Rosemont project in Arizona were also provided, mentioning the U.S. government’s final approval for a mine on the site was received earlier this year. At the company’s Constancia mine in Peru, Hudbay reported higher than ever copper recoveries.

Hudbay also confirmed the membership of its board at its annual shareholder meeting May 7, seeing new faces Richard Howes, Peter Kukielski, David Smith and Daniel Muniz Quintanilla join incumbent members Carol Banducci, Igor Gonzales, Alan Hair, Alan Hibben, Sarah Kavanagh, Carin Knickel and Colin Osborne. The four new members were appointed following an agreement with investor Waterton Global Resource Management, which put to rest a months-long dispute between the two parties over the future of Hudbay and its priorities that culminated with Waterton filing suit against Hudbay.

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