TORONTO - Shares of Hudbay Minerals Inc . (NYSE: NYSE:HBM) soared in premarket trading today, up 4.29%, after the company reported a solid fourth-quarter earnings and revenue beat, alongside an optimistic outlook for 2024.
The mining company posted adjusted earnings per share of $0.20, surpassing the analyst consensus of $0.16. Quarterly revenue reached $602.2 million, exceeding expectations of $552.75 million.
The company's performance was bolstered by a 19% forecasted increase in consolidated copper production for 2024, expected to reach 156,500 tonnes, thanks to sustained higher grades in Peru and a full year of production from British Columbia operations. Although consolidated gold production is projected to see a slight decrease to 291,000 ounces in 2024, the total gold production in Peru over the 2023 to 2025 period is anticipated to exceed previous guidance.
Hudbay Minerals also provided guidance for 2024, projecting consolidated cash costs, net of by-product credits, to be between $1.05 and $1.25 per pound of copper, which is higher than in 2023 due to lower gold by-product credits and contributions from British Columbia for the full year. Capital expenditures for 2024 are expected to total $335 million, reflecting a strategic shift towards lower expenditures in Peru, Manitoba, and Arizona, offset by increased spending in British Columbia for accelerated stripping activities and a reclassification of costs.
Exploration expenditures are set to rise as the company embarks on its largest-ever exploration program in the Snow Lake region, partially funded by a critical minerals premium flow-through financing completed in the previous quarter. Hudbay Minerals is committed to reducing discretionary spending in 2024, with growth capital expenditures anticipated to be 23% lower than in 2023.
Peter Kukielski, President and Chief Executive Officer, commented on the company's robust end to the year, highlighting the increased copper production, record gold production, and strong financial performance in the fourth quarter. "These 2023 achievements are a testament to our outstanding team, which continues to deliver the plan while always operating safely and efficiently," said Kukielski. "Our commitment to continued financial discipline, together with our resilient operating platform, will allow us to prudently advance and unlock value from our leading organic pipeline of brownfield expansion and greenfield exploration and development opportunities."
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