TORONTO (miningweekly.com) – Canadian base metals miner Hudbay Minerals has reported a fourth-quarter net profit on the back of recognising temporary tax recovery differences in Peru and Manitoba, in Canada.
The Toronto-based firm reported an after-tax profit of C$49.6-million, or C$0.21 a share, compared with a loss of C$61.5-million, or C$0.32 a share, in the comparable quarter of 2013.
Dual-listed Hudbay late on Thursday reported operating cash flow a share of C$0.01, missing average analyst forecasts of earning C$0.01 a share on revenues of C$166-million.
Revenues fell 6% to C$128.41-million, mainly owing to lower copper prices and lower copper, gold and silver sales volumes compared with the fourth quarter of 2013, which was a result of an unscheduled two-week shutdown of the 777 shaft in Manitoba and about 40% of copper bought during the quarter being either in-transit or unsold.
Revenue for the full year was C$560-million, up 8% year-over-year from C$516.8-million in 2013.
"2014 represented a turning point for Hudbay with the construction of three new mines [completed] and the delivery of an initial 26% year-over-year increase in copper production. In 2015, we remain on track to achieve our target of at least a further 270% year-over-year increase in copper production and to improve our unit operating costs significantly through further economies of scale,” president and CEO David Garofalo said.
Hudbay forecast 2015 output at 140 000 t to 175 000 t of copper, 95 000 t to 120 000 t of zinc and 135 000 oz to 170 000 oz of precious metals.
For 2014, the company reported output of about 37 644 t of copper, below the 41 000 t bottom-end of its full-year target. This was mainly ascribed to “nominal” copper concentrate output at Peru-based Constancia late last year.
Hudbay planned to lower its capital budget to about C$425-million in 2015, down about 60% from 2014.
The base metals miner also announced that it had received commitments from a syndicate of Canadian banks, including its current lenders, to lift the size of the company's corporate revolving credit facility from $100-million to $250-million, intended to provide additional liquidity as the Constancia copper project ramped up to commercial production.
The board had declared a semi-annual dividend of C$0.01 a share.