Hudbay released its 4th quarter 2015 financial results yesterday. They report a net loss of 255.5 million dollars compared to a net profit of 43.6 million in the 4th quarter of 2014 adding higher sales volumes were partially offset by lower prices for all materials and the effect of higher treatment and refining charges. President Alan Hair says changes were made coming into this year. He says following last year’s ramp up at Constancia and Lalor they began reviewing Company wide efficiency and improvements. To date he says they have identified more than 100 million dollars of spending reduction compared to 2016 estimates while maintaining their production guidance. Hair says operating cost savings have been identified which are expected to reduce 2016 operating and general administrative costs by approximately 55 million dollars noting all of these operating cost reductions are considered sustainable assuming the input prices remain near current levels.
Hair adds he believes Hudbay is positioned to both ride out the current commodity price environment and will be ready to focus on growth when conditions improve.
