Hudbay has released its third quarter 2017 financial results. The net profit in the quarter was 40.9 million dollars compared to a net profit of 33.6 million in the third quarter last year. President Alan Hair says they benefited from higher metal prices. He reports they continued to generate growing positive free cash flow during the third quarter as they delivered on their operational targets while realizing higher metal prices. He says a strong cash flow generation helped to significantly reduce their debt balance this quarter. They also applied part of the proceeds from their equity offering in late September to fast track debt reduction and have fully repaid the remaining cash borrowing under a senior secured credit facility. Hair adds net debt declined by 300 million dollars from the end of the second quarter to 650 million dollars and with the reduction of debt over several quarters they are now well positioned to fund the development of their growth pipeline.
Hudbay reported an increase of 24 percent in operating cash flow from the second quarter as a result of growth in sales volumes of zinc and gold and higher realized copper and zinc prices partially offset by decreases in the sales volumes of copper.