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

Canada-based miner, Hudbay Minerals revised its 2020 copper production guidance down by approximately 15,000-20,000mt to a total of 83,000-97,000mt. Zinc production guidance stands between 105,000-125,000mt for 2020, unchanged from previous expectations. 


Copper’s production guidance was reduced as Hudbay’s Peruvian mine was shut for eight weeks. Copper production fell by 11pc to 18,026mt from the prior year and 27pc from the prior quarter. Copper sales dipped 52pc to 15,951mt in Q2 from the prior year and down 34pc from the previous quarter. 


Zinc output remains unchanged as its Canadian mine is on track for anticipated production levels. Zinc production in June quarter (Q2) was down by 2pc from the prior year to 31,222mt but up 2pc from the previous quarter. Zinc sales increased 14pc from the prior year to 27,604mt and up 3pc from the prior quarter. 


Minor metal, molybdenum production and sales declined in Q2. Production dipped to 124mt in Q2 by 63pc from the prior year and 65pc from the previous quarter while sales declined 71pc to 120mt from prior year and down 72pc from the preceding quarter. 


The Manitoba operations achieved higher quarterly production levels in the second quarter of 2020 compared to the first quarter, said the company release, reporting good results for zinc.

Hudbay Minerals Q2 operational resultsJune Qtr 2020June Qtr 2019YoY %Mar Qtr 2019QoQ %
Metal in concentrates produced (mt)Zinc31,22231838-2%304952%
Payable metals sold (mt)Zinc276042422414%267293%

The company in Q2 posted its revenues at $208mn, down by 37pc, while loss widened to $74mn from a loss of $43mn posted in the prior year. Loss has however narrowed from the previous quarter. 

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