Intel stock extends gains after report of possible U.S. government stake
Investing.com - Hudbay Minerals Inc. (NYSE:HBM) shares surged 3.2% after the diversified miner reported second-quarter earnings that significantly exceeded analyst expectations, driven by strong margins from its copper and gold operations despite temporary wildfire disruptions in Manitoba.
The company reported adjusted earnings of $0.19 per share for the quarter, handily beating the analyst consensus of $0.11.
Revenue reached $536.4 million, slightly above estimates of $534.39 million, as the company benefited from its diversified commodity exposure with gold representing over 36% of total revenues.
Hudbay delivered consolidated copper production of 29,956 tonnes and gold production of 56,271 ounces during the quarter, despite a 13-day temporary shutdown at its Manitoba operations due to wildfire evacuation orders.
The company maintained industry-leading cost performance with consolidated cash cost per pound of copper produced at -$0.02, net of by-product credits.
"We delivered another quarter of significant free cash flow generation driven by continued industry-leading cost margins and diversified exposure to copper and gold," said Peter Kukielski, President and Chief Executive Officer.
"Our strong financial performance enabled us to further reduce long-term debt, invest in our many high-return growth projects and further strengthen our balance sheet to its best position in over a decade."
The company generated $87.8 million in free cash flow during the quarter, marking its eighth consecutive quarter of meaningful free cash flow generation.
This allowed Hudbay to repurchase and retire an additional $50 million of senior unsecured notes at a discount to par, reducing total principal debt to $1.07 billion.
Hudbay reaffirmed its full-year 2025 consolidated production guidance of 117,000 to 149,000 tonnes of copper and 247,500 to 308,000 ounces of gold, while improving its consolidated cash cost guidance to $0.65 to $0.85 per pound from the previous range of $0.80 to $1.00 per pound.
The company also announced a $600 million joint venture transaction with Mitsubishi Corporation for a 30% minority interest in its Copper World project, significantly reducing Hudbay’s funding requirements for the project’s development.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.