HBM:CC - Hudbay Minerals reports Q4 earnings miss; initiates FY23 outlook

• Hudbay Minerals press release ( NYSE: HBM ): Q4 Non-GAAP EPS of $0.01 misses by $0.03 .
• Revenue of $321.2M (-24.5% Y/Y) misses by $74.43M .
• Consolidated copper production in the fourth quarter of 2022 was 29,305 tonnes, an increase of 20% compared to the third quarter of 2022, primarily due to higher copper grades in Peru.
• Consolidated gold production in the fourth quarter of 2022 was 53,920 ounces, a slight increase from the third quarter of 2022 as higher gold grades in Peru partially offset lower Lalor gold grades in Manitoba.
• Operating cash flow before change in non-cash working capital was $109.1 million and adjusted EBITDA was $124.7 million in the fourth quarter, an increase of 34% and 26%, respectively.
• 2023 Annual Guidance and Outlook : Consolidated copper production is forecast to increase by 10% to 114,000 tonnes in 2023, compared to 2022, with higher grades from the Pampacancha deposit in Peru.
• Consolidated gold production is forecast to increase by 30% to 285,500 ounces, compared to 2022, due to significantly higher gold production in Peru and Manitoba.
• Consolidated copper and gold production is expected to further increase in 2024, similar to the previously issued guidance, and 2025 copper and gold production is expected to benefit from an extension of mining activities at Pampacancha into the first half of 2025.
• Consolidated cash cost, net of by-product credits, in 2023 is expected to decline by 30% and be within a range of $0.40 and $0.80 per pound of copper as a result of higher copper production and gold by-product credits.
• Approximately $65 million reduction in growth capital expenditures and exploration spending is expected in 2023 compared to 2022.
• Total capital expenditures are expected to decline by 13% year-over-year to $300 million in 2023.
• Exploration expenditures are expected to decline by 61% in 2023 as activities are focused on areas with high potential for new discovery and mineral reserve and resource expansion.

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