 Figure 1: 1901 Deposit Underground Location 3D view of resource location versus Lalor and Chisel infrastructures Figure 2: 1901 Deposit Lenses The 2020 infill drilling program has confirmed the presence of both zinc-rich and gold-rich lenses Figure 3: 1901 Deposit Resource Estimate Stope Optimization Envelope 3D view of the stope optimization envelope with economic potential at the 1901 deposit that was used as part of the conservative resource estimation methodology Figure 4: 1901 Deposit Remains Open Plan view showing mineralization remains open to the north base metal and to the east gold and copper-gold of the 1901 deposit Figure 5: 1901 Deposit Cu-Au Intersections Several high-grade copper-gold zones have been intersected and have not been included in the current resource estimate for the 1901 depositTORONTO, Aug. 11, 2020 GLOBE NEWSWIRE -- Hudbay Minerals Inc. Hudbay or the company TSX, NYSE:HBM today released its second quarter 2020 financial results. All amounts are in U.S. dollars, unless otherwise noted. Second Quarter Results Boosted by Strong Manitoba Operations Strong production and cost performance from the Manitoba operations during the quarter; an increase in production of all metals over the first quarter and record gold production driven by increasing Lalor gold grades and record gold recoveries at Stall. Successfully achieved efficient restart of operations at Constancia in mid-May with increased government-supported COVID-19 health and safety protocols in place. Second quarter net loss was 51.9 million or 0.20 per share. Second quarter adjusted net lossi per share was 0.15 and adjusted EBITDAi was 49.1 million after adjusting for the impact of the Peru temporary suspension costs and a partial reversal of the Peru inventory write-down from last quarter. Operating cash flow before change in non-cash working capital decreased to 29.5 million in the second quarter of 2020 from 42.0 million in the first quarter of 2020 due to lower revenues from the Peru operations, offset by higher realized gold prices and higher gold sales in Manitoba. Cash and cash equivalents increased during the second quarter to 391.1 million as at June 30, 2020 as a result of the previously announced 115.0 million gold prepay transaction and cash generated from operations, partially offset by capital investments on the New Britannia refurbishment project.On Track to Achieve Manitoba Guidance; Updated Peru Guidance Owing to the outstanding performance from the Manitoba operations in the first half of 2020, and the ability to achieve safe and continuous operations despite COVID-19 operating challenges, Hudbay is on track to meet all Manitoba production and cost guidance for 2020. COVID-19 in Peru had a significant impact on Hudbays business in the second quarter and continues to be a risk the company is actively managing. A government declared state of emergency in mid-March required the suspension of operations at Constancia for a period of eight weeks. The Constancia mill resumed full operation on May 18 processing stockpiled ore, and mining activities returned to normal levels in early July under a successful phased restart plan. Updated 2020 Peru production guidance of 65,000 to 75,000 tonnes of copper and 25,000 to 35,000 ounces of precious metals reflects the Constancia suspension period and the expected start of mining at Pampacancha in early 2021.Executing on Growth Initiatives Fully-funded New Britannia gold mill refurbishment project remains on schedule and within budget, with detailed engineering approximately 90 complete and construction activities approximately 25 complete. Early mining of the gold zone at Lalor is well-underway, which is expected to result in gold production of 74,000 ounces in 2020 and 102,000 ounces in 2021. This is in preparation for the restart of the New Britannia gold mill, which is expected to increase annual gold production from Lalor to over 150,000 ounces by 2022. Successfully advanced Pampacancha with individual land-user agreements in place covering approximately two-thirds of the land, and land clearing activities are underway. Filed initial briefs with the U.S. Court of Appeals for the Ninth Circuit in June to advance the appeal of the July 2019 Rosemont court decision, which revoked the U.S. Forest Services issuance of the Final Record of Decision for Rosemont. Restructured revolving credit facilities in the wake of COVID-19 to right-size the facilities and further enhance financial flexibility during the development of the New Britannia and Pampacancha projects. Updated National Instrument NI 43-101 resource estimate for the 1901 deposit near Lalor includes a larger base metal resource estimate and a new gold-rich inferred resource estimate of 500,000 tonnes grading 6.8 grams per tonne of gold.We continue to be extremely proud of our teams ability to adapt to the COVID-19 protocols to achieve a safe working environment while remaining focused on delivering strong operational performance, said Peter Kukielski, President and Chief Executive Officer. Our Manitoba operations continue to impress with record gold production this quarter and a significant increase in revenues over the first quarter. Our Constancia operations in Peru achieved a quick and efficient ramp up in mid-May after having been temporarily suspended due to COVID-19. Now that Constancia is fully operational, we have reissued production and cost guidance for Peru and are continuing to advance Pampacancha, with land clearing activities underway. The New Britannia gold mill refurbishment activities continue on budget and on schedule to increase Lalors annual gold production to over 150,000 ounces by 2022. We are also pleased to announce an update to the resource estimates for the 1901 deposit which increases the total size of the deposit and demonstrates the gold potential in the Snow Lake camp through significantly increasing the gold content of the base metal zones while adding a new gold-rich zone to the resource estimate.We were pleased to further enhance our quarterly financial disclosure through the introduction of adjusted earnings and adjusted EBITDA metrics this quarter, said Steve Douglas, Senior Vice President and Chief Financial Officer. The strong performance from the Manitoba business this quarter helped offset the reduced contribution from the Peru operations resulting in second quarter adjusted earnings unchanged from first quarter levels, while adjusted EBITDA was only slightly below first quarter levels. Our liquidity remains more than sufficient to pursue our low-risk high-return capital projects, with almost 400 million of cash at the end of the quarter, renewed credit facilities of 400 million and no meaningful debt maturities for two years, coinciding with delivery of our fully-funded growth projects in 2021, which are expected to generate significant free cash flow.Summary of Second Quarter ResultsConsolidated copper production in the second quarter of 2020 was 18,026 tonnes, a 27 decrease from the first quarter of 2020 primarily as a result of the temporary suspension of operations at Constancia until mid-May. Consolidated gold production increased by 7 compared to the first quarter of 2020 due to higher production from Manitoba as a result of higher gold grades and record quarterly gold recoveries at the Stall mill. Consolidated zinc production in the second quarter of 2020 was in line with the first quarter of 2020.In the second quarter of 2020, consolidated cash cost per pound of copper produced, net of by-product credits, was 0.64, a 47 improvement over the first quarter of 2020. Given the significant reduction in Constancia production in the second quarter, this measure is more heavily impacted by Manitoba production which contains meaningful zinc and gold by-product revenue components, and is not indicative of future consolidated cash costs. Incorporating sustaining capital, capitalized exploration, royalties, selling, administrative and regional costs, consolidated all-in sustaining cash cost per pound of copper produced, net of by-product creditsi, in the second quarter of 2020 was 2.26, which improved from 2.40 in the first quarter of 2020, driven mainly by same factors noted above, and reduced sustaining capital expenditures due to reduced activity from the temporary suspension of operations at Constancia.Cash generated from operating activities in the second quarter of 2020 increased to 31.4 million compared to 9.1 million in the first quarter of 2020. Operating cash flow before change in non-cash working capital was 29.5 million during the second quarter of 2020, reflecting a decrease of 12.5 million compared to the first quarter of 2020. The decrease in operating cash flow is primarily the result of lower Constancia production and sales due to the temporary suspension of mine operations. This decrease was partially offset by higher gold production and sales in Manitoba as well as higher realized gold prices.Net loss and loss per share in the second quarter of 2020 were 51.9 million and 0.20, respectively, compared to a net loss and loss per share of 76.1 million and 0.29, respectively, in the first quarter of 2020. The increase in earnings quarter-over-quarter was primarily due to higher sales volumes in Manitoba offset by the temporary suspension of Constancia mine operations. In addition, the temporary suspension at Constancia resulted in fixed overhead production costs of 25.6 million during the second quarter, and 31.9 million year-to-date, that would normally be capitalized to inventories and property, plant, and equipment, to be immediately expensed as part of cost of sales. This was partially offset by a 8. 