•Completed the Rosemont permitting process, acquired the minority joint venture interest and initiated an early works program for Rosemont
•Extended the 777 mine’s reserve life to the second quarter of 2022, and discovered the new zinc-rich 1901 Zone near Lalor
•Delivered a strong operating quarter, which included record mine production at Lalor, record throughput at the Stall concentrator and record copper recovery in the Constancia mill, and made progress on our announced improvement initiatives
•First quarter 2019 results are on track to meet all production, cost and capital spending guidance for 2019
•Operating cash flow before changes in non-cash working capital declined $42.2 million to $89.6 million in the first quarter of 2019 compared to the same quarter of 2018, due to lower realized metal prices and lower sales volumes
•Total liquidity, including cash and available credit facilities, was $940.3 million at March 31, 2019, up from $937.0 million as at December 31, 2018
•Announced a settlement agreement with Waterton that will result in the election of eleven nominees to Hudbay’s Board of Directors

TORONTO, May 06, 2019 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE:HBM) today released its first quarter 2019 financial results. All amounts are in U.S. dollars, unless otherwise noted.

“In the first quarter, Hudbay continued to maximize the potential of our Peru and Manitoba operating assets with record copper recoveries at Constancia and record throughput at both Lalor and our Stall concentrator,” said Alan Hair, President and Chief Executive Officer. “We achieved several de-risking milestones at our Rosemont project in Arizona, including receipt of the federal 404 water permit, receipt of the approved mine plan of operations, initiation of an early works program and consolidation of 100% ownership in Rosemont through the acquisition of the minority joint venture interest. We are pleased to be moving Rosemont forward, one of the best undeveloped copper projects, leveraging our industry-leading project development expertise to generate significant returns for shareholders.”

“Our focus for 2019 is to continue to deliver on a number of near-term catalysts, including advancing our new Lalor gold strategy, completing the early works program and finalizing financing arrangements for Rosemont, developing the high-grade Pampacancha satellite deposit, continuing to maximize throughput and recoveries at Constancia, and advancing both near-mine and greenfield exploration activities,” stated Mr. Hair. “Following the positive new mine plan for Lalor gold announced in February, we are pleased with the recent exploration results in Snow Lake and the potential to unlock further value through resource conversion, Lalor in-mine extension and definition of other known regional deposits to maximize the availability of our base metal and gold concentrators in Snow Lake.”

Operating cash flow before change in non-cash working capital was $89.6 million during the first quarter of 2019, reflecting a decrease of $42.2 million compared to the first quarter of 2018. The decrease in operating cash flow is the result of lower realized prices and lower sales volumes of copper, gold and zinc and higher cash costs, compared to the first quarter of 2018. Copper-equivalent production in the first quarter of 2019 decreased by 6% compared to the same period in 2018, primarily as a result of lower production in Manitoba following the closure of the Reed mine. Cash generated from operating activities decreased to $61.7 million in the first quarter of 2019 from $131.4 million in the same quarter of 2018. The decrease is due lower realized prices and sales volumes for copper, gold and zinc as well as non-cash working capital movements. Net loss and loss per share in the first quarter of 2019 were $13.4 million and $0.05, respectively, compared to a net profit and earnings per share of $41.4 million and $0.16, respectively, in the first quarter of 2018.

Net loss and loss per share in the first quarter of 2019 were affected by, among other things, the following items:
Pre-tax gain (loss) After-tax gain (loss) Per share gain (loss)
($ millions) ($ millions) ($/share)
Non-cash deferred tax adjustments - 3.2 0.01
Deferred revenue adjustment from increased reserves and resources (22.3) (15.9) (0.06)
Pampacancha delivery obligation (7.5) (7.5) (0.03)

In the first quarter of 2019, consolidated cash cost per pound of copper produced1, net of by-product credits, was $1.11, an increase compared to $0.98 in the same period last year. Cash costs per pound of copper produced, net of by–product credits, increased as a result of lower copper and zinc production and lower realized zinc prices. Incorporating sustaining capital, capitalized exploration, royalties, selling, administrative and regional costs, consolidated all-in sustaining cash cost per pound of copper produced1, net of by-product credits, in the first quarter of 2019 was $1.81, which increased from $1.46 in the first quarter of 2018, driven mainly by the decrease in copper and zinc production as well as increases to general and administrative expenses arising primarily from share-based payment expenses.

Net debt1 increased by $26.0 million from December 31, 2018 to $491.5 million at March 31, 2019, primarily due to $27.9 million in working capital movements impacting cash generated. At March 31, 2019, total liquidity, including cash and available credit facilities, was $940.3 million, up from $937.0 million as at December 31, 2018. During the first quarter of 2019, Hudbay recorded a non-cash true up adjustment on its streaming revenues due mainly to a revised, higher estimate of reserves and resources at the 777 mine, as the company extended the mine life by four months to the second quarter of 2022. The reduced deferred revenue drawdown rate for Manitoba which, in accordance with IFRS, is recalculated back to the inception of the stream, resulted in a pre-tax revenue reversal of approximately $16.3 million. There was also a similar non-cash adjustment made to finance costs related to the stream which resulted in increased finance expense of $6.0 million.

Financial Condition ($000s) Mar. 31, 2019 Dec. 31, 2018
Cash and cash equivalents 485,867 515,497
Total long-term debt 977,413 981,030
Net debt1 491,546 465,533
Working capital 502,571 445,228
Total assets 4,713,899 4,685,635
Equity 2,160,898 2,178,856

1 Net debt is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information, please see page 7 of this news
release.

Financial Performance Three months ended
($000s except per share and cash cost amounts) Mar. 31, 2019 Mar. 31, 2018
Revenue 292,258 386,656
Cost of sales 240,446 265,885
(Loss) profit before tax (18,108 ) 73,103
(Loss) profit (13,412 ) 41,445
Basic and diluted (loss) earnings per share (0.05 ) 0.16
Operating cash flow before change in non-cash working capital 89,595
131,791
see & read more on
https://www.hudbayminerals.com/English/Media-Centre/News-Releases/News-Release-Details/2019/Hudbay-Announces-First-Quarter-2019-Results/default.aspx