In 2021, key investments and achievements positioned Hudbay for sustained growth driven by holdings within our existing portfolio. As the demand for copper, gold, zinc and the other metals we mine continues to grow, we can look forward to creating value through our assets and our proven capabilities as a high-performance, low-cost miner.
2021 Financial Performance
2021 was a year of investment and delivery for Hudbay, as we successfully completed our short-payback, high-return investments at Pampacancha and New Britannia. These and other achievements have placed Hudbay at an inflection point, and we are positioned to provide our stakeholders with significant value in the coming years.
Financial Highlights
Consolidated copper production of 99,470 tonnes and consolidated gold production of 193,783 ounces represented an increase of 4% and 55%, respectively, in 2021 as compared to 2020.
Achieved 2021 consolidated copper, gold and silver production guidance, while zinc production fell short of the 2021 guidance range.
Peru gold production reached record annual levels and exceeded the top end of the guidance range in 2021 with the successful ramp-up of the Pampacancha mine.
Manitoba gold production benefited from the completion of the New Britannia gold mill refurbishment, with the first gold pour achieved in August 2021, followed by the completion of the new copper flotation circuit in October 2021, ahead of the original timelines.
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Operations Summary
For the years ended December 31
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| Production (contained metal in concentrate and doré)1,2 | 2021 | 2020 |
| Copper (000 tonnes) | 99.5 | 95.3 |
| Gold (000 ounces) | 193.8 | 124.6 |
| Silver (000 ounces) | 3,045.5 | 2,750.8 |
| Zinc (000 tonnes) | 93.5 | 118.1 |
| Molybdenum (000 tonnes) | 1.1 | 1.2 |
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Financial Summary
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| Financial Condition (in $000s) | Dec. 31, 2021 | Dec. 31, 2020 |
| Cash | $270,989 | $439,135 |
| Working capital3 | 147,512 | 306,888 |
| Total assets | 4,616,231 | 4,666,645 |
| Total long-term debt | 1,180,274 | 1,135,675 |
| Equity | 1,476,828 | 1,699,806 |
| Financial Performance (in $000s, except per share and cash cost amounts) | Dec. 31, 2021 | Dec. 31, 2020 |
| Revenue | $1,501,998 | $1,092,418 |
| Profit (loss) before tax4 | (202,751) | (179,089) |
| Basic and diluted earnings (loss) per share4 | (0.93) | (0.55) |
| Profit (loss) | (244,358) | (144,584) |
| Operating cash flow before precious metals stream deposit and change in non-cash working capital | 483,862 | 241,863 |
| Production | ||
| Contained metal in concentrate and doré5 | ||
| Copper (tonnes) | 99,470 | 95,333 |
| Gold (ounces) | 193,783 | 124,622 |
| Silver (ounces) | 3,045,481 | 2,750,873 |
| Zinc (tonnes) | 93,529 | 118,130 |
| Molybdenum (tonnes) | 1,146 | 1,204 |
| Metal sold | ||
| Payable in metal in concentrate and doré5 | ||
| Copper (tonnes) | 92,200 | 88,888 |
| Gold6 (ounces) | 168,358 | 122,949 |
| Silver6 (ounces) | 2,427,508 | 2,585,586 |
| Refined zinc7 (tonnes) | 96,435 | 109,347 |
| Molybdenum (tonnes) | 1,098 | 1,321 |
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1 Metal reported in concentrate and doré are 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 Working capital is determined as total current assets less total current liabilities as defined under IFRS and disclosed on the consolidated financial statements. 4 Net loss for 2021 was negatively impacted by an impairment charge of $193.5 million related to an updated closure plan for our Flin Flon operations. We aim to update our closure plan every five years, and this increase largely reflects higher long-term water treatment costs in Flin Flon. We are committed to our closure plans and to satisfying our obligations. 5 Metal reported in concentrate and doré are prior to deductions associated with smelter contract terms. 6 Includes total payable gold and silver in concentrate and in doré sold. 7 Includes refined zinc metal sold and payable zinc in concentrate sold. |
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