TORONTO - In a recent transition within Hudbay Minerals Inc . (TSX, NYSE: NYSE:HBM), the mining company has announced the appointment of David S. Smith as the new Chair of the Board, effective January 1, 2025. This change comes as Stephen A. Lang steps down from his role due to health reasons, though he will continue to serve as an independent director. The company, currently valued at $3.2 billion, has demonstrated robust financial health with a "GREAT" rating according to InvestingPro analysis.
Lang, who has been Chair since October 2019, is recognized for his leadership during a significant period of growth for Hudbay. His tenure saw the company through substantial developments, including the acquisition of the Copper Mountain mine and progress on the Copper World project. Carin S. Knickel, Chair of Hudbay’s Corporate Governance and Nominating Committee, expressed gratitude for Lang’s contributions and support for the succession planning process.
Smith, who joined Hudbay’s Board as an independent director in May 2019, brings nearly four decades of financial and executive leadership experience in the mining industry. His background includes roles as Chief Financial Officer and Executive Vice President at Finning International Inc (TSX:FTT)., and senior positions at Placer Dome Inc. and PriceWaterhouseCoopers. Additionally, Smith serves as a director and Chair of the Board of IAMGOLD (NYSE:IAG) Corporation.
Hudbay Minerals, a copper-focused mining company, operates in Canada, Peru, and the United States with a portfolio that includes the Constancia mine in Peru, Snow Lake operations in Manitoba, and the Copper Mountain mine in British Columbia. The company’s growth initiatives feature projects like Copper World in Arizona and Mason in Nevada, as well as further exploratory and expansion prospects near existing operations.
The company’s mission emphasizes sustainable value creation and strong returns, with a commitment to community relations, exploration, development, and efficient operations. Hudbay prides itself on providing essential metals while maintaining a focus on sustainability and community impact. According to InvestingPro analysis, which offers comprehensive research reports on over 1,400 stocks, the company appears undervalued based on its Fair Value assessment, with analysts maintaining a Strong Buy consensus.
This leadership change is based on a press release statement from Hudbay Minerals Inc.
In other recent news, Hudbay Minerals Inc. reported a strong performance in its Q3 2024 results. The company saw a significant increase in copper and gold production, improved cash costs, and a substantial reduction in debt. The copper production stood at 31,000 tons and gold production at 89,000 ounces, marking a 52% increase in gold output from the previous quarter. Cash costs per pound of copper dropped significantly to $0.18, contributing to operating cash flow reaching $186 million and adjusted EBITDA climbing by 42% to $206 million.
Hudbay’s strategic initiatives have positioned the company for growth, particularly in the copper and gold sectors. The Copper World project, expected to start production in 2026, is anticipated to be the third largest copper cathode producer in the U.S. In other developments, the company extended its revolving credit facility to November 2028, enhancing its financial flexibility and reducing its debt by nearly $300 million over the past year.
Despite lower stockpiled ore grades possibly resulting in slightly underperforming copper production guidance for 2024, Hudbay expects to exceed its 2024 gold production guidance due to strong performance at New Britannia and higher grades from Lalor. The company is also exploring options to enhance throughput at the Constancia mine, with trials for pebble rejection underway. These are recent developments that continue to shape the company’s trajectory.
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