"As a result of a number of factors, including cold weather in the first quarter, higher costs at the 777 mine and the impact of a fan outage at the Lalor mine, Hudbay expects Manitoba combined mine/mill unit operating costs to be between C$125 and C$135 per tonne in 2018," the company said.

It had previously forecast C$110-$123/t. 

The company said its Peru operations remained on track to meet production, capital cost and unit cost guidance, of US$7.50-$9.20/t, for 2018.

Hudbay declared a C1c semi-annual dividend which will be paid on September 28.

The company  reported increased net profit of US$25 million for the June quarter, up from $19 million in the previous corresponding period.

Consolidated cash costs were 13% higher at $0.96 per pound of copper but all-in sustaining costs, net of by-product credits, were down 1c to $1.48/lb.

Operating cash flow (before change in non-cash working capital) increased from $124.1 million in the June 2017 quarter to $131.6 million, due to higher realised prices for copper, zinc and precious metals, partially offset by decreased sales volumes and higher mine operating costs.

"Our focus for the remainder of the year is to deliver on our operating targets, complete the ramp-up of ore production at Lalor and move Rosemount through the permitting process into development," president and CEO Alan Hair said.

The company reduced net debt during the quarter to $536.2 million and had cash and available credit of $859.2 million at June 30.

Hudbay shares touched a 52-week low intraday of C$6.62 yesterday but closed up 1.8% to $6.77, almost half the peak of $12.65 reached in January on solid 2017 results.