2023
Financial
Performance
2023 was an outstanding year for Hudbay. In both Manitoba and Peru, we began seeing the significant benefits of our $250 million brownfield investment program. We achieved record gold production at our Lalor mine and realized higher copper grades at Constancia. We were also able to capitalize on an opportunity with the acquisition and integration of the Copper Mountain mine, adding diversity and production to our strong operating portfolio. At the same time, we took measures to strengthen our balance sheet, lay the foundation for a high-potential exploration program and further de-risk our Copper World project.
Financial Highlights
In 2023, Hudbay delivered, ending the year with increased copper production, record gold production and record financial performance in the successful achievement of our annual guidance metrics. We expanded our operating portfolio with the acquisition of Copper Mountain, continued to de-risk Copper World and initiated exploration projects in highly prospective regions near our Lalor and Constancia mines.
Achieved 2023 consolidated production guidance for all metals. Full-year 2023 copper production of 131,691 tonnes, gold production of 310,429 ounces and silver production of 3,575,234 ounces increased by 26%, 41% and 13%, respectively, compared to 2022.
Total capital expenditures for 2023 (excluding Copper Mountain) of approximately $243 million were $57 million lower than original guidance levels, a further decrease from the $30 million in reductions announced in the third quarter.
Enhanced our position to deliver a leading copper growth pipeline through copper production growth while maintaining strong gold production from a diversified platform with strong cash flow generation in 2024.
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Operations Summary
For the years ended December 31
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| Operating Performance (metal in concentrate and doré) | ||
| Production1 | 2023 | 2022 |
| Copper (tonnes) | 131,691 | 104,173 |
| Gold (ounces) | 310,429 | 219,700 |
| Silver (ounces) | 3,575,234 | 3,161,294 |
| Zinc (tonnes) | 34,642 | 55,381 |
| Molybdenum (tonnes) | 1,566 | 1,377 |
| Payable Metal Sold | ||
| Copper (tonnes) | 124,996 | 94,473 |
| Gold2 (ounces) | 276,893 | 213,415 |
| Silver2 (ounces) | 3,145,166 | 2,978,485 |
| Zinc3 (tonnes) | 28,779 | 59,043 |
| Molybdenum (tonnes) | 1,462 | 1,352 |
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Financial Summary
For the years ended December 31
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| Financial Performance (in $000s, except per share amounts) | 2023 | 2022 |
| Revenue | $1,690,030 | $1,461,440 |
| Earnings before tax | 151,830 | 95,815 |
| Basic earnings per share | 0.22 | 0.27 |
| Net earnings | 69,543 | 70,382 |
| Operating cash flows before precious metals stream deposit and change in non-cash working capital | 569,994 | 391,729 |
| Financial Condition4 (in $000s) | ||
| Cash and cash equivalents | $249,794 | $225,655 |
| Working capital5 | 135,913 | 76,534 |
| Total assets | 5,312,634 | 4,325,943 |
| Total long-term debt | 1,287,536 | 1,184,162 |
| Equity | 2,069,811 | 1,571,809 |
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1 Metal reported in concentrate and doré are prior to deductions associated with smelter contract terms. 2 Includes total payable gold and silver in concentrate and in doré sold. 3 Includes refined zinc metal sold and payable zinc in concentrate sold. 4 Following completion of the Copper Mountain acquisition on June 20, 2023, the Company’s financial condition as at December 31, 2023 includes Copper Mountain, and accordingly there is no comparable period information. 5 Working capital is determined as total current assets less total current liabilities as defined under IFRS and disclosed on the consolidated financial statements. |
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