Hudbay reports their net loss in the third quarter this year was 11.8 million U.S. dollars compared to net savings of 46.2 million in the third quarter of last year. President David Garofalo says Constancia in Peru together with their Manitoba operations enabled them to achieve significantly higher production rates in all their metals. He explains operating cash flow increased 559 percent to approximately 80 million dollars compared to the third quarter of 2014 due to significant growth in production and sales of most metals at a low cash cost. He says cash flow would have been even higher if they’d sold all of the metal produced in the quarter but at the end of the third quarter they had approximately 100 thousand tons of copper concentrate in inventory between Manitoba and Peru.
Garofalo adds the operating cash flow was partly offset by lower realized prices for all metals and net earnings decreased by 58 million primarily as a result of a 34.5 million dollar impairment charge associated with equipment inherited in the acquisition of Augusta Corporation.