2020 Financial Performance

2020 was an unprecedented year, but Hudbay still achieved its revised production and operating cost targets, maintaining a record of strong operating and financial performance. In Manitoba and Peru, our teams demonstrated exceptional resilience in creating value for stakeholders in the face of the pandemic challenge. Across our operations, we made key investments to drive future production, and we look forward to an exciting period of sustained growth.

Financial Highlights

Over the course of 2020, Hudbay took steps to establish a foundation for lasting growth, which included successfully completing the Consulta Previa process for Pampacancha in Peru, and receiving the final permit required to begin the mine’s development and operations. In Manitoba, we made rapid progress in refurbishing the New Britannia mill, which is on track for its first gold pour in the summer of 2021. We expect to see benefits as we grow production through Pampacancha and New Britannia. These and other initiatives and achievements throughout the year, coupled with strong prices for all of our metals, show that Hudbay is well positioned to return significant value to its stakeholders.

Cash and cash equivalents of $439.1 million as at December 31, 2020 show that the Company is well placed to capitalize on the investments it made over the year and to deliver growing returns in the future.

Completed a surface rights agreement with the community of Chilloroya for the Pampacancha satellite deposit near Constancia.

Manitoba annual gold sales volumes increased by 24% in 2020 compared to the prior year.

Consolidated 2021 production guidance of between 92,000 and 112,000 tonnes of copper and between 190,000 and 215,000 ounces of gold.

Operations Summary
For the years ended December 31
Production (contained metal in concentrate)1,2 2020 2019
Copper (000 tonnes) 95.3 137.2
Gold (000 ounces) 124.6 114.7
Silver (000 ounces) 2,750.9 3,585.3
Zinc (000 tonnes) 118.1 119.1
Molybdenum (000 tonnes) 1.2 1.3
Financial Summary
Financial Condition (in $000s) Dec. 31, 2020 Dec. 31, 2019
Cash and cash equivalents $439,135 $396,146
Working capital 306,888 271,284
Total assets 4,666,645 4,461,057
Total long-term debt 1,135,675 985,255
Equity 1,699,806 1,848,123
Financial Performance (in $000s, except per share and cash cost amounts) Dec. 31, 2020 Dec. 31, 2019
Revenue $1,092,418 $1,237,439
Profit before tax (179,089) (452,763)
Basic and diluted earnings (loss) per share (0.55) (1.32)
Profit (loss) (144,584) (343,810)
Operating cash flows before change in non-cash working capital 241,863 307,284
Contained metal in concentrate3
Copper (tonnes) 95,333 137,179
Gold (ounces) 124,622 114,692
Silver (ounces) 2,750,873 3,585,330
Zinc (tonnes) 118,130 119,106
Molybdenum (tonnes) 1,204 1,272
Metal sold
Payable in metal in concentrate2,3
Copper (tonnes) 88,888 128,519
Gold (ounces) 122,949 108,999
Silver (ounces) 2,585,586 3,452,926
Refined zinc (tonnes) 109,347 104,319
Molybdenum (tonnes) 1,321 1,186

1 Metal reported in concentrate is prior to refining losses or deductions associated with smelter contract terms.

2 2020 copper production was impacted by the government of Peru’s mandated eight-week shutdown of the Constancia mine at the outset of the pandemic.

3 Metal reported in concentrate is prior to deductions associated with smelter contract terms.