What happened Shares of Hudbay Minerals (NYSE: HBM) had surged more than 10% by 10:45 a.m. EDT on Wednesday. Driving up the mining stock was its stronger-than-expected second-quarter results. So what Hudbay Minerals reported an adjusted loss of $0.15 per share, a $0.05 per share improvement from what analysts expected. Several factors drove the narrower loss, including strong production and cost performance at its operations in Manitoba, and rising production of all other metals elsewhere, including record gold output. That strong gold production came at an ideal time as prices soared during the period. Image source: Getty Images. The mining company's excellent performance in Manitoba during the first half of the year has it on track to achieve its full-year production and cost guidance for those operations despite the impact of COVID-19. But the company did warn that the pandemic had a significant effect on its operations in Peru, where the government required it to suspend work in mid-March. While the company resumed operations at its Constancia mill in mid-May and returned to normal levels by early July, it had to cut its 2020 production forecast for Peru. That's because of the Constancia suspension and pushing back the start of mining at Pampacancha until early next year. Now what Hudbay Minerals' operations in Manitoba helped offset some of the weakness in Peru during the quarter. But that country will become increasingly important as the company starts mining at Pampacancha early next year. That project, when combined with the planned restart of the New Britannia gold mill in Manitoba, will put the company on track to begin generating significant free cash, assuming metals prices cooperate. 10 stocks we like better than HudBay MineralsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and HudBay Minerals wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of August 1, 2020 Matthew DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source