Mining News

Hudbay Minerals replaced nearly all mining depletion in 2021

Shares in Hudbay Minerals (TSX, NYSE: HBM) were up in both Toronto and New York on Tuesday after the company announced late on Monday it had replaced its 2021 mineral reserves depletion by nearly 100% and extended the productive life of two key operations.

In its annual reserve and resource update, the Canadian miner said the productive life of both its Constancia copper mine in Peru and its Snow Lake gold mine in Canada have been increased by a year to 2038.

Hudbay expects annual copper production from Constancia to average 105,000 tonnes over the next seven years, 35% above 2021 levels. Gold output from Snow Lake is slated to reach 180,000 ounces a year during the next six years, up 55% from 2021’s levels.

“While we already have a solid production growth prole for many years to come, our exploration efforts over the past year 1 have been successful in replacing what we have mined, adding reserves to our life of mine plans and expanding our resource base to position us for additional long-term reserves growth,” president and chief executive officer Peter Kukielski said in the statement.

The company noted it has been experiencing limited railcar availability in Manitoba due to weather-related impacts, which likely will affect sales volume from the province, in the first quarter of the year.

It added that any resulting excess copper concentrate and refined zinc inventory buildup should to normalize during the second quarter of the year.

The company said expected closure of its 777 operation (copper, zinc, gold, silver) in Flin Flon, Canada, would happen in the first half of the year, with the zinc plant closing in May and the mine in June.

Last year, Hudbay produced 99,470 tonnes of copper and 193,783 ounces of gold, a 4% and 5% increase respectively.

Shares in the company were up 2.7% in Toronto to C$10.01 a piece mid-morning and 2.8% in New York to $8.01 each, leaving the miner with a market capitalization of C$2.58 billion ($2.06bn).

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