VANCOUVER (miningweekly.com) – Base metals producer Hudbay Minerals has narrowed its first-quarter net loss to $2.3-million, or $0.01 a share, thanks in part to rising copper and zinc prices, but offset by lower copper sales volumes owing to a shipping delay.

This compares with a net loss of $15.8-million, or $0.07 a share, in the first quarter of 2016.

Toronto-based Hudbay reported that operating cash flow, before change in noncash working capital, increased to $80.6-million, as compared with $71.9-million in the first quarter of 2016, mainly because of higher copper and zinc prices, partially offset by lower copper sales volumes.

"We had another quarter of positive free cash flow generation, allowing further debt repayment during the quarter, despite shipment timing and mill maintenance that negatively impacted our first-quarter results. Our focus for 2017 remains on delivering on our operating targets, debt reduction and advancing the high-return, in-house brownfield opportunities at Lalor and Pampacancha, and we are well on-track to deliver on these objectives," commented president and CEO Alan Hair.

Total revenue for the period was $253.2-million, $400 000 lower than the comparable period a year earlier, on lower copper sales volumes compared to the first quarter of 2016, which was partially offset by higher prices for copper and zinc and the effect of lower treatment and refining charges weighed.

Consolidated all-in sustaining cash cost per pound of copper produced, net of by-product credits, declined to $1.46 from $1.80 in the comparable quarter of 2016, driven lower by higher by-product credits and lower sustaining capital expenditures.

Copper output in the first quarter fell 30% year-on-year to 27 211 t, mainly owing to planned falling grades at Constancia, in Peru, and reduced mill throughput in both the company’s Peru and Manitoba operations, owing to planned and unplanned maintenance undertaken in the first quarter.

Net debt declined by $49.8-million to $1.04-billion in the period following a $60-million repayment in drawings under the company’s revolving credit facilities. At March 31, total liquidity, including cash and available credit facilities was $432.9-million, up from $390.8-million at December 31.

For 2017, Hudbay expects to produce less copper, in the range of 132 500 t to 157 500 t, compared with 2016 output of 174 491 t, while zinc output is expected to expand to between 125 000 t and 150 000 t, compared with 2016 output of 110 582 t. Precious metals production will total about 145 000 t to 175 000 t, compared with the 2016 total of 167 951 oz of gold equivalent, based on a silver-to-gold conversion ratio of 70:1.