Segmented information

12 Months Ended

Dec. 31, 2020

Disclosure of operating segments [abstract]

Segmented information [Text Block]

31. Segmented information

Hudbay is an integrated metals producer. When making decisions on expansions, opening or closing mines, as well as day to day operations, management evaluates the profitability of the overall operation of the Company. Hudbay's main mining operations are located in Manitoba and Saskatchewan (Canada) and Cusco (Peru) and are included in the Manitoba segment and Peru segment, respectively. The Manitoba and Peru segments generate Hudbay's revenue. The Manitoba segment sells copper concentrate (containing copper, gold and silver), zinc metal and other products. The Peru segment consists of Hudbay's Constancia operation and sells copper concentrate and molybdenum concentrate. Hudbay's Arizona segment consists of the  Rosemont project located in Arizona. Corporate and other activities include the Company's exploration activities in Chile, and Nevada. The exploration entities are not individually significant, as they do not meet the minimum quantitative thresholds. Corporate activities are not considered a segment and are included as a reconciliation to total consolidated results. Accounting policies for each reported segment are the same as those of the Company. Results from operating activities represents the profit earned by each segment without allocation of corporate costs. This is the measure reported to the chief operating decision-maker, Hudbay's President and Chief Executive Officer, for the purposes of resource allocation and the assessment of segment performance. Total assets and liabilities do not reflect intercompany balances, which have been eliminated on consolidation.

Year ended December 31, 2020
		Manitoba		Peru			Arizona			Corporate and other activities			Total
Revenue from external customers	$	615,699	$	476,719		$	—		$	—		$	1,092,418
Cost of sales
Mine operating costs		391,504		300,087			—			—			691,591
Depreciation and amortization		177,552		184,275			—			—			361,827
Gross profit (loss)		46,643		(7,643	)		—			—			39,000
Selling and administrative expenses		—		—			—			41,408			41,408
Exploration and evaluation expenses		6,491		6,295			3,870			540			17,196
Other expenses		8,382		4,901			2,066			2,234			17,583
Results from operating activities	$	31,770	$	(18,839	)	$	(5,936	)	$	(44,182	)	$	(37,187	)
Net interest expense on long term debt													82,712
Accretion on streaming arrangements													56,670
Change in fair value of financial instruments													(29,370	)
Other net finance costs													31,890
Loss before tax													(179,089	)
Tax recovery													(34,505	)
Loss for the year												$	(144,584	)

 

 

Year ended December 31, 2019
		Manitoba			Peru		Arizona			Corporate and other activities			Total
Revenue from external customers	$	537,421		$	700,018	$	—		$	—		$	1,237,439
Cost of sales
Mine operating costs		385,159			356,183		—			—			741,342
Depreciation and amortization		135,429			209,126		—			—			344,555
Gross profit		16,833			134,709		—			—			151,542
Selling and administrative expenses		—			—		—			36,170			36,170
Exploration and evaluation expenses		18,476			5,804		—			6,494			30,774
Other expenses		8,201			14,022		28,149			744			51,116
Impairment loss		—			—		322,249			—			322,249
Results from operating activities	$	(9,844	)	$	114,883	$	(350,398	)	$	(43,408	)	$	(288,767	)
Net interest expense on long term debt													68,375
Accretion on streaming arrangements													69,772
Change in fair value of financial instruments													8,247
Other net finance costs													17,602
Loss before tax													(452,763	)
Tax recovery													(108,953	)
Loss for the year												$	(343,810	)

December 31, 2020
		Manitoba		Peru		Arizona		Corporate and other activities		Total
Total assets	$	801,691	$	2,535,939	$	718,982	$	610,033	$	4,666,645
Total liabilities		562,013		973,756		76,926		1,354,144		2,966,839
Property, plant and equipment1		699,884		2,290,097		709,939		31,735		3,731,655
1Included in Corporate and Other activities is $27.5 million of property, plant and equipment that is located in Nevada.

December 31, 2020
		Manitoba		Peru		Arizona		Corporate and other activities		Total
Additions to property, plant and equipment	$	159,313	$	208,805	$	18,640	$	32	$	386,790

 

December 31, 2019
		Manitoba		Peru		Arizona		Corporate and other activities		Total
Total assets	$	779,896	$	2,556,895	$	700,799	$	423,467	$	4,461,057
Total liabilities		556,267		926,642		78,988		1,051,037		2,612,934
Property, plant and equipment1		684,679		2,253,404		691,538		32,938		3,662,559

¹Included in Corporate and Other activities is $27.3 million of property, plant and equipment that is located in Nevada

December 31, 2019
		Manitoba		Peru		Arizona		Corporate and other activities		Total
Additions to property, plant and equipment	$	143,418	$	101,717	$	38,923	$	905	$	284,963

Geographical Segments

The following tables represent revenue information regarding the Group's geographical segments for the years ended December 31:

		2020		2019
Revenue by customer location 1
Canada	$	422,403	$	418,636
China		215,278		158,795
United States		206,906		209,382
Philippines		77,575		71,506
Peru		56,437		110,411
Switzerland		55,703		162,167
Singapore		29,314		71,506
Germany		11,725		10,731
Other		17,077		24,305
	$	1,092,418	$	1,237,439

¹ Presented based on the ultimate destination of the product if known. If the eventual destination of the product sold through traders is not known then revenue is allocated to the location of the customer's business office and not the ultimate destination of the product.

During the year ended December 31, 2020, eight customers accounted for approximately 36%, 17%, 13%, 7%, 7%, 5%, 5%, and 5% respectively, of total revenue during the year. Revenue from these customers has been presented in the Manitoba and Peru operating segments.

During the year ended December 31, 2019, six customers accounted for approximately 24%, 9%, 9%, 8%, 5% and 5%, respectively, of total revenue during the year. Revenue from these customers has been presented in the Manitoba and Peru operating segments.