TORONTO - Hudbay Minerals Inc . (NYSE:HBM) shares jumped 5.6% in premarket trading Wednesday after the copper miner reported better-than-expected third quarter results and improved its full-year cost guidance.
The company posted adjusted earnings of $0.13 per share, significantly beating analyst estimates of $0.04 per share. Revenue came in at $485.8 million, also topping expectations of $454.47 million.
Hudbay's strong performance was driven by record gold production in Manitoba and robust cost control across its operations. The company produced 31,354 tonnes of copper and 89,073 ounces of gold in Q3, representing increases of 10% and 52% respectively from the previous quarter.
"Our enhanced operating platform delivered strong operating and financial results with record gold production in Manitoba and robust cost control across the business leading to expanded margins," said Peter Kukielski, President and CEO of Hudbay.
The company further improved its 2024 cost guidance, lowering its consolidated cash cost range to $0.65-$0.85 per pound of copper from the previous $0.90-$1.10. It also reduced its sustaining cash cost guidance to $1.75-$2.20 per pound from $2.00-$2.45 previously.
Hudbay attributed the improved outlook to increased gold by-product credits and continued strong cost management. The company reaffirmed its production guidance for all metals in 2024.
Cash and cash equivalents increased by $233.5 million to $483.3 million during the first nine months of 2024, allowing Hudbay to reduce its net debt by $412.1 million over that period.
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