Hudbay Minerals Shares Crash On Q4 2024 Results

Hudbay Minerals (TSX: HBM) released its fourth-quarter and full-year 2024 financial results, with annual revenue of $2.02 billion, up from $1.69 billion in 2023, primarily driven by strong copper and gold prices, coupled with record gold output.

Quarterly revenue totaled $584.9 million, slightly below the $602.2 million reported in the same period of 2023 but significantly higher than the $485.8 million recorded in the third quarter of 2024.

Net earnings for 2024 came in at $76.7 million, or $0.20 per share, compared to $66.4 million, or $0.22 per share, in 2023. For Q4, the figure came in at $21.2 million (or $0.05 per share), down from $30.7 million (or $0.10 per share) in the comparable quarter of 2023. This softer quarterly decline is tied to non-cash items, including foreign exchange losses and write-downs of property, plant, and equipment.

Adjusted EBITDA for the year rose to $822.5 million, a 27% jump from $647.8 million in 2023. Adjusted EBITDA in Q4 reached $257.3 million, marginally below the $274.4 million in Q4 2023, but up 25% from the $206.2 million posted in the Q3 2024.

Operating cash flow jumped to $691.1 million for the full year, representing an increase from $570.0 million in 2023, still due to higher realized prices for copper and gold. The company did, however, see its cash taxes climb significantly to $132.5 million from $54.8 million in the prior year, reflecting stronger profitability in Peru. For the quarter, operating cash flow was $231.5 million, also up from $186.3 million in the third quarter of 2024.

Hudbay ended 2024 with $581.8 million in cash, cash equivalents, and short-term investments, a considerable increase from $249.8 million at the end of 2023. Total long-term debt dropped to $1.10 billion from $1.29 billion a year earlier, and net debt declined to $525.7 million at year-end, down sharply from $1.04 billion in 2023.

Hudbay touts that it surpassed its consolidated production guidance for every metal for 2024, including a record 332,240 ounces of gold (7% higher than 2023). Consolidated copper output reached 137,943 tonnes, a 5% rise year over year, supported by stable performance in Peru and strong results in Manitoba. Silver production stood at 3,983,851 ounces (up 11% year over year), while zinc production ended at 33,339 tonnes (a slight 4% decrease from 34,642 tonnes in 2023).

Consolidated copper production for Q4 2024 hit 43,262 tonnes, 38% higher than the previous quarter at 31,354 tonnes but slightly below the 45,450 tonnes reported in the final quarter of 2023. Gold output reached 94,161 ounces, down from 112,776 ounces in the Q4 2023 yet above the 89,073 ounces in the Q3 2024.

Hudbay projects consolidated copper production of around 133,000 tonnes for 2025, close to 2024’s record levels. However, consolidated gold production is expected to moderate to approximately 277,750 ounces, a 16% drop from 2024.

Cash costs are forecast within $0.80 to $1.00 per pound of copper produced, up from 2024’s low $0.46 level. Sustaining cash costs are expected to land between $2.25 and $2.65 per pound, up from $1.62 in 2024.

Hudbay also plans to boost total capital expenditures to $580 million in 2025, significantly above the $350.1 million spent in 2024. Roughly $365 million is earmarked for sustaining capital across Peru, Manitoba, and British Columbia, while $205 million in growth capital focuses on ramping up mill throughput in both British Columbia and Peru, along with the further development of the Copper World project in Arizona.

Exploration spending will remain steady at $40 million, with major programs continuing in the Snow Lake region to expand mine life and target new discoveries.

Hudbay Minerals last traded at $11.05 on the TSX.

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