RBC Capital & Credit Suisse
1:41 AM EST, 02/19/2021 (MT Newswires) -- RBC Capital Markets on Friday reiterated its sector perform rating on the shares of Hudbay Minerals (HBM.TO) after the miner reported fourth-quarter results that included guidance showing higher spending this year and lower production.
"We expect a negative reaction to Hudbay's Q4 results, which included a 2021 guidance update that calls for lower copper (5% below our estimate) and zinc production (20% lower) and higher operating costs and capex in 2021. As an offset, precious metals production guidance was 7% above our estimate due to the progress at New Britannia ... Q4 financial results were slightly better than estimated, but we expect the focus to be on the guidance update," the investment bank noted.
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11:06 AM EST, 02/19/2021 (MT Newswires) -- Credit Suisse on Friday Reiterated its outperform rating on the shares of Hudbay Minerals (HBM.TO) with a C$11 target price after the miner reported fourth quarter results that topped expectations, but surprised with guidance showing higher costs and spending.
“On Feb. 18, HBM reported Q4/20 adj. EPS of $(0.06) (reported EPS of $0.03), a beat vs. $(0.07) consensus and $(0.08) CSe. Q4 adj. CFPS was $0.33, below $0.34 consensus and $0.36 CSe," the investment bank said in a note.“ ”The EPS beat against our model was driven mainly by higher revenue (production), partially offset by higher opex. We expect a negative stock reaction to the higher than expected 2021 cost and capex guidance ... 2021 copper production is expected to be 102kt (assumes Pampacancha mining begins in Q2/21), in-line with CSe. 2021 gold production is expected to be 202.5koz, also in-line with CSe. 2021 zinc production is expected to be 101.5kt, 11% below 113.8kt CSe. 2021 Manitoba combined unit costs are expected to be C$150/t, 7% above C$140/t CSe, Peru costs of $9.90/t, 13% above $8.78/t CSe, and Flin Flon costs of C$0.525/lb, 35% above C$0.39/lb CSe. So overall cost guidance is meaningfully higher than what we were modeling. 2021 capex guidance is $340M, 29% higher vs. $264M consensus and 21% higher vs. $280M CSe.”