Hudbay Delivers Strong Fourth Quarter and Record Full Year 2024 Results; Achieves 2024 Consolidated Production and Cost Guidance and Provides 2025 Annual Guidance

Core Insights - Hudbay Minerals Inc. achieved record financial performance in 2024, with significant improvements in production and cost management, leading to a transformed balance sheet and reduced net debt [2][5][26] Financial Performance - The company reported record annual revenue of $2,021.2 million and adjusted EBITDA of$822.5 million, a 27% increase from 2023 [5][26] - Full year consolidated copper production reached 137,943 tonnes, gold production was 332,240 ounces, and silver production totaled 3,983,851 ounces, representing increases of 5%, 7%, and 11% respectively compared to 2023 [5][22] - The consolidated cash cost per pound of copper produced was $0.46, a 43$1.62, down from $1.72 [27][48] Production Highlights - Gold production in Manitoba exceeded guidance, achieving 214,225 ounces against a target of 170,000 to 200,000 ounces [5][21] - Peru operations produced 33,988 tonnes of copper and 38,079 ounces of gold in Q4 2024, with cash costs of$1.00 per pound for copper, demonstrating strong cost performance [8][40] - The fourth quarter saw consolidated copper production of 43,262 tonnes, a 38% increase from Q3 2024, and gold production of 94,161 ounces, a 6% increase [13][17] Debt and Liquidity - The company reduced net debt by $512 million in 2024, ending the year with net debt of$525.7 million, significantly lower than $1,037.7 million at the end of 2023 [2][20] - Total liquidity increased by 76$1,007.8 million at the end of 2024, providing financial flexibility for future projects [11][20] Growth Initiatives - Hudbay is advancing several growth projects, including the Copper World project in Arizona, which is fully permitted and expected to increase copper production by over 50% once operational [2][10] - The company plans to invest $205 million in growth capital expenditures in 2025, focusing on high-return projects and mill throughput improvements [10][18] Operational Efficiency - The New Britannia mill in Manitoba exceeded throughput expectations, achieving approximately 2,020 tonnes per day in Q4 2024, significantly above its design capacity [11][9] - The company continues to optimize operations in British Columbia and Peru, with ongoing initiatives to enhance mill throughput and reduce costs [12][50]