Canadian miner Hudbay Minerals delivered strong operating and financial results in the third quarter, with record gold production in Manitoba and robust cost controls across the business, says CEO Peter Kukielski.

The miner achieved consolidated third-quarter copper production of 31 354 t, in line with its production guidance, and gold output of 89 073 oz, beating expectations. The performance represents an increase of 10% and 52%, respectively, from the second quarter of 2024.

"New quarterly record throughput levels were achieved at the New Britannia mill, higher throughput rates were realised at Constancia, and Copper Mountain delivered record high copper recoveries," reported Kukielski.

The Manitoba operations produced a record 62 468 oz in the September quarter, with the New Britannia mill operating above nameplate throughput level, while the Lalor mine yielded better-than-expected gold grades.

Manitoba cash cost per ounce of gold produced, net of by-product credits, was $372 during the third quarter of 2024, a decrease of 52% compared with the second quarter of 2024.

For the full year, Manitoba’s gold production is expected to exceed the top end of the 2024 guidance range. Overall, the company’s full-year gold production will be at the higher end of its guidance, while copper output will trend towards the lower-end of the target range. Hudbay reduced its cash cost guidance range to between $0.65/lb and $0.85/lb, an additional improvement from the previously updated guidance of $0.90/lb to $1.10/lb.

“The third quarter demonstrated Hudbay’s unique copper and gold diversification, providing attractive free cash flow generation and strong leverage to higher metal prices,” said Kukielski.

The company posted net earnings of $49.8-million, or $0.13 a share, compared with a net loss attributable of $16.6-million, or $0.05 a share, in the second quarter that was impacted by various non-cash charges.

Adjusted net earnings were $50.3-million, or $0.13 a share, in the quarter under review.

Kukielski said Hudbay had delivered five consecutive quarters of meaningful free cash flow generation, positioning the company to continue advancing its growth initiatives and unlocking value in its pipeline to further enhance its copper exposure.