Hudbay’s New Britannia expects first gold by Q3 2021

Hudbay Minerals (TSX, NYSE: HBM) said on Tuesday that first gold production from its New Britannia mill in Manitoba is expected in the third quarter of next year.

According to the miner, New Britannia refurbishment is about 64% complete and commissioning of the gold plant is expected in mid-2021, three months earlier than originally planned.

New Britannia is the processing plant for the Lalor mine, in the Snow Lake region. The refurbishment will more than double gold production from Lalor to 150 000 oz/y by 2022, at cash costs and sustaining cash costs, net of by-product credits, of about $480/oz and $655/oz, respectively, during the first eight years of the gold plant’s operation.

Hudbay released its Q3 2020 financial results, reporting copper production of 25,395 tonnes in the quarter, a 41% increase from the second quarter of 2020, primarily as a result of the successful ramp up at Constancia mine in Peru after the eight-week temporary suspension from mid-March to mid-May due to covid-19 restrictions.

Consolidated gold production decreased by 10% compared to the second quarter of 2020 to 29,277 ounces, due to lower production from Manitoba as a result of a planned maintenance at the Lalor mine. Consolidated zinc production in the third quarter was in line with the second quarter of 2020, at 30,570 tonnes.

The company net loss and loss per share in Q3 were $24.0 million and $0.09, respectively, compared to a net loss and loss per share of $51.9 million and $0.20, respectively, in the second quarter of 2020.

Adjusted net loss and adjusted EBITDA in the third quarter of 2020 were $25.4 million, or $0.10 per share, and $96.1 million, respectively.

Last week, Hudbay resumed underground mining at its 777 mine in Flin Flon, Manitoba, two weeks after a hoist rope detached from the skip at the operation, causing the skip to fall to the bottom of the shaft. There were no injuries during the incident.