Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Canada-based Hudbay Minerals produced 25,395mt of copper in the September quarter (Q3), down by 30pc from the prior-year Q3 while zinc production rose 7pc to 30,570mt.


Copper production, however, increased from the two preceding quarters, said the company. From Q2, output rose by 41pc driven by steady production at Manitoba and Peru units. Successful ramp up at Constancia also lifted copper production in Q3.


Hudbay states its operations are on track to meet production guidance set for 2020, aided by a strong performance by the Manitoba unit in the first three quarters of 2020. Constancia operations are also expected to lend a hand with a steady performance since its resumption after the COVID-19 related suspension for eight weeks.


Sales of copper and zinc both fell in Q3 by 8pc and 9pc, respectively. Copper sales stood at 4,249mt and zinc sales at 26,520mt. Compared to the previous quarter, sales declined by 39pc for copper and 4pc for zinc.


Peru currently ranks in the top fifteen countries with a high tally of the total number of infections. The workforce at Constancia, which resides mainly in Arequipa and Cusco, continues to see a high COVID-19 case count. The Manitoba province is also witnessing a surge in the number of COVID-19 cases. The scenario, therefore, could turn worrisome for the company.  


Hudbay posted revenue of $316mn, up 9pc from the prior quarter. The company’s loss in Q3 has narrowed to $23mn from $274mn in Q3, 2019.

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