10:36 AM EDT, 08/13/2024 (MT Newswires) -- Hudbay Minerals ( HBM ) was down 3.5% on Tuesday after second quarter adjusted earnings missed forecast. National Bank said the impact was "negative" and it kept an Outperform rating, Speculative risk rating and C$17 target on the stock.

Second-quarter adjusted earnings was nil per share, swinging from a loss of US$0.07 per share. The result missed the S&P Capital IQ consensus normalized EPS estimate of US$0.06 for the quarter. Net loss attributable to owners came in at US$16.6 million, widening from a loss of US$14.9 million.

Revenue rose to US$425.5 million from US$312.2 million. Adjusted EBITDA also increased to US$145 million from US$81.2 million.

The company produced 28,578 tonnes of copper and 58,614 ounces of gold, both increasing from 21,715 tonnes of copper and 48,996 ounces of gold.

Silver production rose to 738,707 ounces from 612,310 ounces. Zinc output fell to 8,087 tonnes from 8,758 tonnes. Molybdenum production also decreased to 369 tonnes from 414 tonnes.

Hudbay reaffirmed its full year 2024 consolidated production guidance for all metals, including 137,000 to 176,000 tonnes of copper and 263,000 to 319,000 ounces of gold.

The company expects 2024 consolidated copper production to be below the midpoint of the guidance range, while 2024 consolidated gold production is expected to be above the midpoint of the guidance range.

Hudbay raised its 2024 annual consolidated cash cost guidance range to $0.90 to $1.10 per pound from the original guidance range of $1.05 to $1.25 per pound.

Hudbay kept its Outperform rating and C$17 price target from National Bank of Canada following the news.

Hudbay's adjusted EPS missed the bank's and consensus forecast of US$0.06 while its adjusted EBITDA was below the bank's estimate of US$159 million.

The bank expects Hudbay to trade below peers today given the softer headline results. But it said with an improved cost outlook and unchanged production guidance, National continues to anticipate stronger operational performance throughout the latter half of the year.

It added: "HBM remains one of the more leveraged names to copper prices in our Coverage Universe, which until recently helped to support improved underlying financial results. We anticipate strong operational results to close out the year, an improving near-term growth outlook with expansion initiatives at Copper Mountain and Constancia, upcoming catalysts at Copper World and a discounted valuation all supportive of our Outperform rating."

Hudbay's share price fell 3% at last look to $9.81 on the TSX.

Price: 9.82, Change: -0.30, Percent Change: -2.96