TORONTO - Shares of Hudbay Minerals (NYSE:HBM) fell 4.8% in premarket trading on Tuesday after the copper miner reported second quarter earnings that missed analyst expectations.
The company posted adjusted earnings per share of $0.00, falling short of the $0.07 per share analysts were expecting. Revenue of $425.52 million also came in below the consensus estimate of $461.9 million.
Hudbay produced 28,578 tonnes of copper and 58,614 ounces of gold in the second quarter, down from 34,749 tonnes of copper and 90,392 ounces of gold in the first quarter. The company said production was impacted by lower planned grades in Peru and Manitoba, as well as planned stripping programs at its Pampacancha and Copper Mountain mines to access higher grades later this year.
"The continued execution of our operational plans in the second quarter has positioned us well to achieve our 2024 production guidance," said Peter Kukielski, President and CEO. He noted the company's exposure to gold by-products and strong cost control allowed it to improve its 2024 cash cost guidance.
Hudbay reaffirmed its full year 2024 production guidance for all metals, including 137,000 to 176,000 tonnes of copper and 263,000 to 319,000 ounces of gold. The company expects stronger production in the second half of 2024 as it accesses higher grades.
Despite the earnings miss, Hudbay highlighted its progress on deleveraging, reducing net debt by $405.9 million in the first half of 2024 to $631.8 million. The company said it is well-positioned to continue advancing growth initiatives to enhance its copper and gold exposure.
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