Along with the update on its Manitoba operations we reported yesterday Hudbay released in its first quarter 2015 financial results that its Constancia mine in Peru achieved commercial production on April 30th. Company President David Garofalo calls this a major milestone that strengthens their position as a low cost high quality copper and zinc producer.
Hudbay reports the net loss in the first quarter was 23.7 million dollars. Cash flows from operations and net earnings were positively impacted by increased revenue as a result of significant increases in production of all metals as the Reed and Lalor mines near Snow Lake achieved commercial production in 2014. They add while substantially improved when compared to the prior year cash flow from operations, net earnings and cash cost per pound of copper were all negatively impacted by unsold copper and gold during the quarter.
The report adds in the second quarter Hudbay expects to commence realizing substantial cash flow from the sale of copper concentrates from Constancia.