VANCOUVER (miningweekly.com) – Canadian base metals producer Hudbay Minerals has reported a loss of $47.3-million, or $0.20 a share, for the three months to December 31, compared with a loss of $255.5-million for the comparable period a year earlier.

For the full 2016, its loss narrowed to $35.2-million, $0.15 a share, compared with a loss of $331.4-million in 2015.

Total revenue for the fourth quarter was $316.7-million, $19.9-million lower than the same period in 2015, mainly owing to lower year-over-year copper and gold sales volumes. The lower sales were partially offset by higher prices for all metals and the effect of lower treatment and refining charges, the company advised.

For the full year, revenue was $1.13-billion, some $242.6-million higher than in 2015, owing to higher sales volumes at Constancia, in Peru, and lower preproduction revenue, which was capitalised.

Consolidated all-in sustaining cash costs per pound of copper produced, net of by-product credits, in the fourth quarter declined to $1.46/lb, down from $2/lb in the fourth quarter of 2015. The decline was driven by substantial reductions in sustaining capital expenditures.

Cash generated from operating activities came to $140.1-million for the fourth quarter, an increase of $69.4-million, compared with the same period last year.

Cash and cash equivalents increased by $93-million from December 31, 2015, to $146.9-million as at December 31.

Hudbay said it expects to lift zinc output by 25% this year, to take advantage of rising prices, while copper and precious metals output is expected to fall 17% and 5% respectively over 2016 production.

The Toronto-headquartered company forecast zinc output to be in the range of 125 000 t to 150 000 t, reflecting the continued ramp-up in Lalor ore output and the resequencing of the mine plan at 777 to prioritise stopes containing higher zinc grades.

Zinc output for 2016 reached 110 582 t, up from 103 000 t in 2015.

Copper and precious metals production in 2017 is expected to fall on the back of lower copper grades at Constancia, as well as reduced mining rates and lower copper grades at the 777 mine. Declining output at the 777 mine reflects more challenging operating conditions as the mine ages. Lower expected copper grades at the 777 mine are owing to the resequencing of the mine plan to prioritise stopes containing higher zinc grades and this is expected to result in improved overall economics per tonne at 777, Hudbay advised.

Hudbay expects total copper output to fall to a midpoint in the guidance range of 145 000 t for 2017, with gold-equivalent ounces (calculated at a ratio of 70:1 silver to gold) expected to total 160 000 oz at the midpoint, down from the 167 951 oz produced by that point in 2016.

Hudbay’s NYSE-listed stock fell 4.82% in after-market trading to $7.90 a share.