Executive Summary
Hudbay Minerals reported QQ2 2024 revenue of $425.5 million, up 36.3% year over year, but QoQ revenue declined 18.95% as quarterly momentum moderated. EBITDA reached $122.3 million and operating income was $33.4 million, yet the company posted a net loss of $16.6 million driven by substantial depreciation and amortization ($100.6 million) and a notable negative swing in total other income/expenses (-$44.3 million). The quarter generated solid operating cash flow of $103.9 million and free cash flow of $14.6 million, supporting a cash balance of about $483.8 million. Hudbayโs balance sheet shows total assets of $5.44 billion and total liabilities of $2.86 billion, with net debt of $0.76 billion and a debt-to-capitalization ratio of roughly 0.34, indicating moderate leverage against a backdrop of strong asset coverage but a heavy depreciation burden that compresses reported profitability.
Near term, results reflect sensitivity to commodity pricing, production volumes, and capex intensity. Management did not issue explicit QQ2 forward guidance in the provided materials; however, the company continues capital investment on its polymetallic asset base, which should support longer-term cash generation if commodity prices stabilize or improve. Investors should monitor copper and zinc price cycles, mine throughput, capex execution, and debt reduction momentum as key variables governing Hudbayโs earnings trajectory and liquidity profile.
Key Performance Indicators
Revenue
425.52M
QoQ: -18.95% | YoY:36.31%
Gross Profit
77.63M
18.24% margin
QoQ: -48.93% | YoY:239.09%
Operating Income
33.39M
QoQ: -66.89% | YoY:14 743.86%
Net Income
-16.58M
QoQ: -174.17% | YoY:-11.06%
EPS
-0.05
QoQ: -183.33% | YoY:8.93%
Revenue Trend
Margin Analysis
Key Insights
- Revenue: $425.52 million; YoY +36.31%; QoQ -18.95%.
- Gross profit: $77.63 million; gross margin ~18.24% (based on revenue).
- Operating income: $33.39 million; operating margin ~7.85%.
- EBITDA: $122.30 million; EBITDA margin ~28.74%.
- Net income: -$16.58 million; net margin -3.90%; YoY: -11.06% (net income); QoQ: -174.17%.