Hudbay Minerals Inc.
Hudbay Minerals Inc.
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Australian-based global engineer Ausenco is beginning definitive feasibility study work on Hudbay Minerals’ Rosemont openpit copper-molybdenum-silver project in Arizona, USA in preparation for full development of processing facilities, site and tailings infrastructure.
Ausenco says the EPCM contract award builds on the strong relationship it built with Hudbay on the Constancia copper project in Peru, which achieved commercial production in April.
X2 Resources, headed by former Xstrata boss Mick Davis, has reportedly been outbid for a stake of up to 50% in Barrick’s Zaldivar copper mine in Chile.
Reuters quotes a London-based banking source that there were seven bids higher than X2. The reported deadline for second round bids is early July, with other bidders likely to include Teck Resources, HudBay Minerals and Minera Escondida, Zaldivar’s neighbouring miner owned by BHP, Rio Tinto and a Japanese consortium.
With copper-gold-silver-zinc sales well under Q1 Mar 2015 qtr (Q1 2015) production and its 100%-owned Constancia mine in Peru hitting commercial production on Apr 30, HudBay Minerals is looking to quickly turnaround its $C23.7M Q1 net loss from Q1 2014’s $27.2M loss after revenue up to $160.6M from $106.7M.
Commercial prodn from the Constancia mine and more sales from Q1’s residual production sees Hudbay well set for FY2015
Despite record attributable Mar 2015 qtr (Q1 2015) silver equivalent production of 10.4Moz (6.3Moz silver and 55,100oz gold), up 15% on Q1 2014, the world’s largest pure precious metals streaming company Silver Wheaton has seen its net earnings plunge 38% to $US49.4M on revenues down 21% to $130.5M.
Q1 silver-gold sales down for a 38% net earnings plunge to $50M, “just a timing issue” for Silver Wheaton
After reaching commercial production in April 2014 and producing 415,736t at 2.50% copper, 1.58% zinc, 0.74g/t gold and 9.04g/t silver in FY/CY2014, the Reed mine near Flin Flon in Manitoba, Canada, has updated proven/probable reserves of 1.56Mt at 3.80% Cu, 0.41% Zn, 0.38g/t gold and 4.91g/t Ag.
The 70% Hudbay/30% VMS Ventures project also has inferred resources of 205,000t at 4.80% Cu, 0.53% Zn, 0.41g/t Au and 5.1g/t Ag.
Miner HudBay Minerals has closed its substantially increased $US300M corporate revolving credit facility after increasing it from $100M to $250M then to $300M.
The facility is to provide the company with additional liquidity as its Constancia Copper Project in Peru ramps up to commercial production expected in Q2 2015 for 100,000t-125,000t this year, lifting Hudbay’s FY/CY2015 copper production more than 270% to 140,000t-175,000t from 37,644t. The new credit facility matures in Mar 2018.
Hudbay Minerals’ roll into big production increases in FY/CY2015 has been paved with a $C180M+ loss-to-profit turnaround for a FY2014 profit of $71.86M on the previous year’s $109.27M loss.
Hudbay Minerals has underpinned a forecast big surge in current year production with a FY2014 $72M profit