Hudbay Peru hits Cu, Mo records in 2018

Hudbay Minerals achieved record copper processing and molybdenum production at its Constancia mine in Peru,exceeding its copper production guidance for 2018.

The Toronto-based company's Constancia operations, which expanded in 2015, achieved record copper recovery and mill throughput in 2018, contributing to higher-than-expected copper output at 122,178t compared to guidance of 95-000-115,000t.

Molybdenum production in Peru hit a record high of 904t in 2018, double 2017 levels as a result of higher-than-expected plant operation. Molybdenum production is expected to rise further in 2019 to 1,100-1,200t.

Total production of copper in concentrate was down by 3pc on the year to 154,550t from 2017 while still exceeding its annual guidance of 122,000-147,500t. Total Hudbay copper output was down by 14pc in the fourth quarter of 2018 to 37,238t from the same quarter a year prior, reflecting the closure of the Reed copper mine in Manitoba at the end of July.

Hudbay expects lower copper production in 2019 at 122,000-150,000t.

Total production of zinc in concentrate dropped by 15pc on the year to 115,588t from 2017 on expected lower grades at its Manitoba operations. Zinc output was down by 17pc in the fourth quarter of 2018 to 27,408t from the fourth quarter of 2017.

The miner also expects zinc production to edge lower in 2019 at 100,000-115,000t.

The company reported a 5pc increase in revenue to $1.5bn from in 2017. Quarterly revenue increased by 26pc year overyear to $352mn.

Hudbay's proposed Rosemont mine in Arizona remains in the permitting phase. The Rosemont mine would be the third-largest copper mine in the US at 112,000 t/yr estimated production and could account for 10pc of domestic annual copper production, according to Hudbay.

Hudbay also completed its acquisition of Mason Resources in December 2018, including its Ann Mason greenfield copper deposit in Nevada. Hudbay plans to test drill-ready targets at the site in 2019.