Hudbay Minerals’ share price was up after the company released its annual report and an updated mine plan for Lalor, which is set to double the Manitoba gold-copper-zinc mine’s annual gold production and give the mine a 10-year life.

The company’s results came a day after its activist shareholder Waterton Global Resource Management, ramped up its efforts to replace the miner’s board and CEO.

Hudbay’s mine plan for Lalor will involve refurbishing the New Britannia mill at a cost of US$95 million, which it said will allow it to increase gold production to 140,000 ounces per year in the first five years, at a sustaining cash cost, net of by-product credits, of US$450/ounce.

“That will make Lalor one of the lowest-cost gold mines in Canada,” Hudbay CEO Alan Hair said in an conference call with analysts. “The work completed at Lalor is another example of our ability to add value through exploration.”

The company also announced increased mineral reserves and resources for the mine. Lalor now has total proven and probable reserves of 13, 675,000 tonnes at 3.78 grams per tonne gold, 4.46 per cent zinc, 0.7 per cent copper, and 26.11 g/t silver. Hudbay also boosted its inferred reserves to 5,901,000 tonnes at 4.41 g/t gold, 0.81 per cent zinc, 0.99 per cent copper and 25.85 g/t silver.

Hudbay reported that its consolidated copper production exceeded the mid-point of its guidance for 2018 by 14 per cent, producing 154,550 tonnes for the year. For the fourth quarter, however, its copper production had decreased 14 per cent from the same period last year, due to the closure of its Reed mine in Manitoba. The company’s Constancia mine in Peru exceeded the top end of its 2018 guidance, and its Manitoba mines hit the top end of their guidance range. Both Hudbay’s zinc and precious metal production for the year were within the annual guidance ranges.

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It reported US$137.3 million generated from operations in the fourth quarter, and US$479.6 million for the full year, and reduced its net debt to $465.5 million as of Dec. 31.

The company also used its annual results to dispute the allegations of activist shareholder Waterton.

In a press release, Hudbay asserted that its board and management team have a “proven track record of successful new mine development and expertise in both open pit and underground mine development,” and that they remain committed to “driving long-term and sustainable value creation.”

Waterton, which on Tuesday launched a website and released an investor presentation detailing a strategy for Hudbay and highlighting its proposed eight board members and replacement CEO, former Nevsun CEO Peter Kukielski, has accused the company’s board and management team of “making a mess out of a portfolio of world class assets.”

In its investor presentation, Waterton said Hudbay could be worth up $19 per share with a new leadership team and improved capital allocation. It said Hudbay had spent more than US$4.8 billion since 2010 on capital projects, without much results.

Waterton has been steadily increasing its ownership of Hudbay. It currently owns 12 per cent of the company’s issued and outstanding shares, up from 10 per cent in December and seven per cent in late October.

Hair said in the conference call that the company would provide a “fulsome response” to Waterton’s allegations in due course, but used the call to highlight several company successes. He drew attention to Constancia’s mine development and ramp-up costs in relation to peers like Imperial Metals’ Red Chris and Centerra Gold's Mount Milligan; Hudbay having received permits at Rosemont in Arizona and its success in five lawsuits related to them; and its exploration work at Lalor.

“We are pleased with our financial and operating performance,” Hair said.