- In December, Hudbay Minerals (TSX:HBM) surpassed one million ounces of gold produced at its Lalor mine in Snow Lake, Manitoba
- Management attributes the achievement to the company’s optimum mix of exploration expertise, processing infrastructure and operating efficiency
- Hudbay is a copper-focused critical minerals mining stock with three long-life operations and a world-class pipeline of copper growth projects in tier-one jurisdictions, including Canada, Peru and the United States
- Hudbay Minerals stock has added 72.80 per cent year-over-year and 155.17 per cent since 2020
In December, Hudbay Minerals (TSX:HBM) surpassed one million ounces of gold produced at its Lalor mine in Snow Lake, Manitoba, a feat management chalks up to the company’s optimum mix of exploration expertise, processing infrastructure and operating efficiency.
Hudbay discovered the deposit in 2007, including a notable zinc zone, with additional copper and gold mineralization discovered thereafter justifying construction in 2010 and commercial production in 2014.
Resources were upgraded between 2016 and 2018, followed by recovery and processing optimizations in 2019 and the re-start of the New Brittania mill in 2021, the latter leading to a 90 per cent increase in gold production from 77,376 ounces in 2020 to 146,449 ounces in 2022.
Production reached 187,363 ounces in 2023 and hit a quarterly record in Q3 2024, with management expecting gold production to exceed 200,000 ounces for the year, the top end of 2024 production guidance.
Lalor’s current gold reserves stand at two million ounces, in addition to 1.4 million ounces inferred, but Hudbay sees ample potential for value creation into the future, as evidenced by the property currently undergoing one of the largest exploration programs in its history.
From a company-wide perspective, Hudbay has been net income profitable over the past two fiscal years, taking in US$70.38 million in 2022 and US$66.37 million in 2023, lending credence to revenue growth from US$1.09 billion in 2020 to US$1.69 billion in 2023. Revenue is trending higher in 2024 with net income positive through three quarters.
Leadership insights
“We are so pleased with the dedication and hard work of the Manitoba operating team that has led to this outstanding achievement,” Peter Kukielski, Hudbay Minerals’ president and chief executive officer, said in a statement. “This milestone underscores Lalor’s robust performance and is the result of strategic investments, continuous operational improvements and exploration success, along with the team’s focus on building a long-term sustainable business. Hudbay’s long-standing history in Manitoba and significant future exploration initiatives will continue to drive prosperity in the region and generate significant future cash flows for the business.”
“Reaching one million ounces of gold recovered from Lalor is a momentous achievement,” added Rob Carter, vice president of Hudbay’s Manitoba business unit. “This milestone reflects the dedication, hard work and innovative spirit of our entire team and I am incredibly proud of their accomplishments. This achievement sets the stage for continued success, demonstrating the enduring value of the Lalor deposit and propelling us towards continued growth and success through innovative and efficient mining and milling solutions.”
About Hudbay Minerals
Hudbay is a copper-focused critical minerals mining stock with three long-life operations and a world-class pipeline of copper growth projects in tier-one jurisdictions, including Canada, Peru and the United States.
Hudbay Minerals stock (TSX:HBM) is up by 0.08 per cent trading at C$12.58 per share as of 9:40 am ET. The stock has added 72.80 per cent year-over-year and 155.17 per cent since 2020.
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(Top photo of Hudbay’s Lalor mine in Manitoba: Hudbay Minerals)
