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Hudbay Minerals IN Com Npv (TSE:HBM)
Last Price (CAD)
$ 5.35
Change
▲ 0.38 (7.65%)
Bid 5.33
Ask 5.35
Volume 1,879,811
Day's Range - - 5.55
Click for Detailed Quote Page
Last Trade:15:59:39 EDT Oct-17-08
God Bless
And she could not have acted better today can you say dead cat bounce
Analysts like what they see from HudBay Minerals Inc.'s (HBMFF.PK) C$432-million friendly offer to buy Skye Resources Inc. (SKRZF.PK), despite some dilution for shareholders.
In a note to clients, Desjardins Securities analyst John Hughes wrote:
We believe HudBay's move to diversify its asset portfolio with one of the largest known nickel reserves in the world is an excellent investment of the company's significant cash balance of C$781-million.
He lowered his target on HudBay to C$20.00 a share (from C$22.00) after calculating 27% share dilution from the deal, but maintained a "top pick" rating.
At UBS Securities, analyst Onno Rutten noted the relatively "modest" premium being offered to Skye shareholders relative to other deals in the nickel space. That reflects "the urgency of Skye to find a well-funded partner to proceed on time with development of the Fenix [project]," he wrote. He upgraded HudBay to "buy" from "neutral," but lowered his price target to C$17.50 a share (from C$20.00).
Adam Schatzker of RBC Capital Markets calls it "mission accomplished" for HudBay. He wrote:
HudBay had recently stated that its preferred use for its large cash position is to acquire a project that was pre-development and was facing financing challenges in a difficult market — a perfect description of Skye.
He also upgraded the stock (to "sector perform") while lowering his target (to C$15.50).
None of the analysts think a rival bid for Skye is very likely. That is partly because the company has been effectively shopped for the last two years with no takers, and partly because Vale Inco already has marketing rights to Skye's production.
Neither. It's zinc prices falling out of bed. Hudbay just diversified into nickel though with the purchase of the mine in Guatemala. And it also produces copper, gold and silver. And it has about a third of its market cap in cash. I am comfortable holding on to this one.
Busted here i buy no more. Is it flin flon or flim flam
I do really well mostly as a trader but I am getting killed here so far. Ouch. Hudbay is 1st Class Canada right?
This is great:
Related Quotes
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HBMFF Trade
News 14.99 0
HudBay Minerals and Skye Resources Announce Proposed BusinessCombination
Jun 23, 2008 07:01:06 (ET)
TORONTO, ONTARIO AND VANCOUVER, BRITISH COLUMBIA, Jun 23, 2008 (MARKET WIRE via COMTEX) -- HudBay Minerals Inc. ("HudBay") and
TORONTO, ONTARIO AND VANCOUVER, BRITISH COLUMBIA, Jun 23, 2008 (MARKET WIRE via COMTEX) -- HudBay Minerals Inc. ("HudBay") and Skye Resources Inc. ("Skye") are pleased to announce they have entered into a definitive agreement to combine their respective businesses (the "Transaction"). Skye's principal asset is the world class Fenix Nickel Project (the "Fenix Project") in Guatemala, which includes 41.4 million tonnes of reserves.
The Transaction will be structured as a Plan of Arrangement under the Business Corporations Act (British Columbia) between HudBay and Skye.
Highlights of the Transaction
On completion of the Transaction, all Skye common shares will be automatically exchanged on the basis of 0.61 HudBay common shares for each Skye common share. The consideration to Skye shareholders pursuant to the Plan of Arrangement represents approximately a 35.0% premium over Skye's 20 day volume weighted average trading price based on HudBay's 20 day volume weighted average trading price on the TSX and approximately a 17.0% premium over Skye's closing price as at June 20, 2008.
Upon completion of the Transaction, HudBay will have approximately 160.9 million common shares outstanding, of which current HudBay shareholders will own 79.7% and former Skye shareholders will own 20.3%.
Compelling Base Metals Combination
Skye's Fenix Project will strategically expand HudBay's base metals portfolio to include nickel and add significantly to HudBay's development pipeline, with a world class project that is capable of near term production, has a 30 year mine life and contains significant opportunity for expansion.
Following completion of the Transaction the combined company's profile will include:
- a large increase in reserves and resources;
- a diversified multi-metal resource base;
- an attractive mix of producing, development and exploration assets that provides a solid platform for future growth; and
- a strong balance sheet with a pro-forma cash balance of approximately C$861 million, no debt and solid operating cash flow going forward.
"We believe that this Transaction represents excellent value for our shareholders," said Allen Palmiere, President and CEO of HudBay. "Today's announcement reflects one of the key elements of our strategy -building scale and scope through opportunistic investments to complement HudBay's existing operations."
"This is a tremendous addition to HudBay's development pipeline and provides important diversification to the company's existing portfolio," added Mr. Palmiere. "Our balance sheet strength together with the continuing strong cash flows from our current operations place us in excellent position to bring to production the Fenix Project and continue our aggressive exploration and development activities in the prolific Flin Flon Greenstone Belt. At the same time, we will continue to seek additional opportunities in support of further growth and value creation for shareholders."
Vice Chairman and CEO of Skye, Colin K. Benner said, "The planned combination is a great opportunity for Skye's shareholders and for Guatemala. This agreement merges the world class ferro-nickel Fenix Project with a company with the financial and technical capacity to move it forward rapidly and I encourage Skye shareholders to vote in favor of this transaction. HudBay is a large, exceptionally well-managed and respected Canadian mining company with roots going back over 80 years. We are very pleased to become a significant part of this much larger and stronger enterprise and support their plans for future growth in the pursuit of becoming an international mining house."
Mr. Benner will join HudBay's board as a director. Allen Palmiere said, "We are extremely pleased that Colin will be joining the HudBay board. His proven operating and management expertise will be of great assistance to the company as we move forward to create the next major Canadian base metal company. On a personal note, I have known Colin for many years and am looking forward to working with him."
Private Placement
As part of the Transaction, HudBay will acquire approximately 12,679,266 common shares of Skye at a price of C$7.51 per share in a private placement for total gross proceeds to Skye of approximately C$95,221,285, representing approximately 19.9% of Skye's outstanding common shares on a pro-forma basis. These proceeds will be used to immediately ramp up the full engineering, procurement and construction activities at the Fenix Project, including the purchasing of long lead time equipment orders that are presently suspended. The private placement financing is not conditional on the completion of the Plan of Arrangement but is subject to the approval of the TSX.
Pursuant to the terms of a Share Purchase Master Agreement between Skye and Vale Inco Ltd. ("Vale Inco"), Vale Inco has the right to participate in the financing to maintain its current approximate 11.0% equity interest in Skye. Vale Inco must exercise this right within 24 hours after the announcement of the financing. Should Vale Inco exercise in whole its right to participate in this financing, HudBay's holding in Skye would represent approximately 19.4% of its outstanding common shares on a pro-forma basis.
Board Recommendation
The combination has been unanimously approved by the boards of directors of HudBay and Skye and will be subject to customary conditions, including a favourable vote of 66 2/3% of the Skye common shares voted at a special meeting of shareholders called to approve the transaction and the receipt of court and necessary regulatory approvals. The board of directors of Skye and a special committee of independent directors created by Skye to oversee this process, has determined that the transaction is in the best interest of Skye's shareholders and unanimously recommends that holders of Skye shares vote in favour of the transaction.
The definitive agreement includes a commitment by Skye not to solicit or initiate discussions concerning alternative transactions, including the sale of material assets. Skye has agreed to pay a break fee of C$14 million to HudBay in certain circumstances and has granted HudBay the right to match competing offers.
In addition to the 19.9% ownership to be acquired by HudBay pursuant to the private placement, holders of approximately 27.0% of the outstanding Skye shares before completion of the private placement, including 2 institutional holders and all directors and officers of Skye have agreed to vote in favour of the Transaction.
Advisors and Fairness Opinions
GMP Securities L.P. ("GMP") and CIBC World Markets Inc. are acting as financial advisors to HudBay and GMP has provided an opinion to the board of directors of HudBay that, subject to final documentation, the proposed Transaction is fair, from a financial point of view, to HudBay shareholders. TD Securities Inc. ("TD") and Morgan Stanley & Co. Incorporated are acting as financial advisors to Skye and TD has provided an opinion to the board of directors of Skye that, subject to the assumptions and limitations set out therein, the consideration to be received by the shareholders of Skye (other than HudBay and its affiliates) in connection with the Transaction is fair, from a financial point of view, to such shareholders. Cassels Brock & Blackwell LLP is acting as external legal counsel to HudBay and Fasken Martineau Dumoulin LLP is acting as external legal counsel to Skye.
Closing
The Transaction is subject to Skye obtaining the required shareholder approval at a special shareholders' meeting of Skye and to the receipt of court and all necessary regulatory approvals.
An information circular for the special shareholders' meeting of Skye is expected to be mailed by mid- July 2008 and Skye plans to hold the special meeting to approve the Transaction prior to August 19, 2008. The Transaction is expected to close by late August 2008.
Conference Call
A joint conference call will be hosted by Allen J. Palmiere, HudBay's President and CEO and Colin K. Benner, Skye's Vice Chairman and CEO to discuss this Transaction. Details are as follows:
Date: June 23, 2008
Time: 10:00 am EDT (7:00 am PDT)
Webcast:
http://www.hudbayminerals.com
or
www.skyeresources.com
Dial in: 1-416-644-3418 or Toll Free in Canada and the U.S.
1-800-594-3615
Replay: 1-416-640-1917 or Toll Free in Canada and the U.S.
1-877-289-8525
Replay Passcode: 21275950#
About HudBay Minerals Inc.
HudBay Minerals Inc. is a leading Canadian base metals mining company with a focus on the discovery and production of zinc and copper metal. The company is investing for the future in one of the most ambitious exploration programs in Canada, targeting its 400,000 hectare exploration territory in the Flin Flon Greenstone Belt. As an integrated mining company, HudBay operates mines, concentrators and metal production facilities in northern Manitoba and Saskatchewan, a zinc oxide production facility in Ontario, the White Pine copper refinery in Michigan, and the Balmat zinc mine in New York state. HudBay is a member of the S&P/TSX Composite Index and the S&P/TSX Global Mining Index.
About Skye Resources Inc.
Skye acquired the rights to the Fenix Project in December 2004 and has completed a feasibility study for a ferro-nickel project using proven conventional smelting technology. Environmental and construction permits for the project have been received, basic engineering is complete, detailed engineering is over 50% complete and Skye is preparing to initiate construction.
The Fenix Ferro-Nickel Project is located in eastern Guatemala and is 98.2% owned by subsidiaries of Skye and 1.8% by the Government of Guatemala. The Fenix Project consists of an exploitation license encompassing 248 square kilometres and an exploration license covering 32 square kilometres, together with a pyrometallurgical nickel processing plant and related facilities. Built at a cost of US$238 million in 1977, the plant operated until it was closed in 1980. Since the plant shutdown, no mining activity has taken place on the property, but the plant has been on care and maintenance. Ferro-nickel production is now estimated to commence in the last quarter of 2010. Key assumptions, parameters and methods used to estimate the mineral resources with respect to Skye and the Fenix Project are as set out in the Technical Report on an Update to the Fenix Project, Izabal, Guatemala, dated September 15, 2007 and its Addendum Report dated October 25, 2007 filed at www.sedar.com on September 18, 2007 and October 26, 2007, respectively.
(HBM-G)
Cautionary Notice: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States securities laws. Forward-looking information includes, but is not limited to, information concerning the proposed business combination between HudBay and Skye and matters relating thereto. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Assumptions upon which such forward-looking information is based include, without limitation, that the shareholders of Skye will approve the transaction, that all required third party regulatory and governmental approvals to the transaction will be obtained and all other conditions to completion of the transaction will be satisfied or waived. Many of these assumptions are based on factors and events that are not within the control of HudBay or Skye and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include changes in market conditions, variations in ore grade or recovery rates, risks relating to international operations, fluctuating metal prices and currency exchange rates, changes in project parameters, the possibility of project cost overruns or unanticipated costs and expenses, labour disputes and other risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, the business of the companies not being integrated successfully or such integration proving more difficult, time consuming or costly than expected as well as those risk factors discussed in the Annual Information Form for the year ended December 31, 2007 for each of HudBay and Skye available at www.sedar.com .
Although HudBay and Skye have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. HudBay and Skye undertake no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
HUDBAY MINERALS IN COM NPV (Toronto: HBM.TO) Last Trade: $16.90
Trade Time: 1:41PM ET
Change: Down 0.10 (0.59%)
Prev Close: 17.00
Open: 16.86
Bid: 16.91
Ask: 16.92
1y Target Est: N/A
Day's Range: 16.86 - 17.10
52wk Range: 13.70 - 29.63
Volume: 773,832
God Bless
NY Bob I just got some HBMFF at 16.613. its too cheap here.
Hudbay Minerals IN Com Npv (HBM) $ 17.35
Change: -0.11 (-0.63%)
Volume: 646,396
16:10:05 EDT
Jun-3-08
God Bless
Hudbay Minerals Inc. (HBM:CA) $17.35 $0.65 (+3.89%)
Volume: 673.51 k
2:33 PM EDT Apr 16, 2008
http://investorshub.advfn.com/boards/board.asp?board_id=7206
Hudbay Minerals Inc. (T.HBM) $16.07 -$0.43 (-2.61%)
Volume: 563.7 k
4:38 PM EDT Mar 28, 2008
Hudbay Minerals Inc. (T.HBM) $ 18.52 0.02 (+0.11%)
Volume: 923.38 k
4:10 PM EST Feb 6, 2008
-- Strong Revenue and Cash Flow Continues --
- Revenue of $319.8 million and $1,027.2 million year-to-date
- Operating cash flow(1) of $113.9 million increases cash position to $702.9 million at Sept. 30, 2007
- Cash cost per pound of zinc sold, net of by-product credits "negative" US$0.15
- Earnings before tax of $94.3 million and $333.7 million year-to-date
- Net earnings of $66.5 million and $198.7 million year-to-date
- Significant tax pools continue to shelter cash income taxes
- Significant Lalor Lake discovery - indicative potential of 18-20 million tonnes at 7.7% to 8.8% zinc(2)
WINNIPEG, MANITOBA--(Marketwire - Nov. 8, 2007) - HudBay Minerals Inc. (TSX:HBM) (HudBay or the Company) today announced revenue of $319.8 million for the quarter ended September 30, 2007, compared with $346.2 million in the third quarter of 2006, contributing to net earnings of $66.5 million versus $169.4 million a year earlier. Operating cash flow for the quarter was $113.9 million compared with $166.0 million in the third quarter of 2006. Financial results were strong despite the appreciation of the Canadian dollar, which negatively affected third quarter revenues by an estimated $23 million and earnings before tax by approximately $16.8 million.
FINANCIAL HIGHLIGHTS
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Three months Nine months
ended Sept. 30 ended Sept. 30
($000's except per --------------------------------------------
share amounts) 2007 2006 2007 2006
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Revenue 319,805 346,203 1,027,245 815,893
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Earnings before tax 94,266 151,582 333,734 307,815
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Net Earnings 66,465 169,381 198,680 398,203
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Basic EPS(3) 0.52 1.37 1.57 4.00
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EBITDA(4) 118,414 163,281 411,052 359,870
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Operating cash flow(1) 113,921 165,987 394,081 342,289
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Cash and cash equivalents(5) 702,883 311,011 702,883 311,011
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Total Assets(5) 1,502,107 1,173,651 1,502,107 1,173,651
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The bracketed values that follow denote the comparative figures for the respective periods in 2006.
"Our production performance was strong for the quarter and year to date," said Peter Jones, President & CEO. "We're firmly on track, and our exploration program has delivered the Lalor Lake discovery - which positions HudBay well for the longer term."
(1) Operating cash flow excluding changes in non-cash working capital.
(2) The estimate of potential tonnes and grade of the Lalor Lake potential mineral deposit are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the Lalor Lake deposit being delineated as a mineral resource. Further details are available in HudBay's news release dated October 23, 2007.
(3) Earnings per share
(4) Earnings before interest, taxes, depreciation and amortization, loss/gain on derivative instruments, interest and other income, exploration and other.
(5) At September 30th.
OPERATING HIGHLIGHTS
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Three months ended Nine months ended
Sept. 30 Sept. 30
--------------------------------------------------------------------------
Production 2007 2006 2007 2006
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Zinc(6) tonnes 32,673 34,734 94,886 91,294
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Copper tonnes 22,325 24,279 66,801 65,031
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Gold troy oz. 24,535 24,473 76,365 69,809
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Silver troy oz. 364,994 346,542 1,061,040 1,001,964
--------------------------------------------------------------------------
Metal Sold(7)
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Zinc, including
sales to Zochem(8) tonnes 33,703 29,588 98,681 79,534
--------------------------------------------------------------------------
Copper tonnes 21,218 23,343 68,445 59,494
--------------------------------------------------------------------------
Gold troy oz. 24,755 20,901 78,167 60,809
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Silver troy oz. 329,318 313,117 1,023,714 899,597
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Financial and Operating Results
Earnings
Net earnings were $66.5 million for the quarter, or $0.52 per share ($169.4 million, or $1.37 per share). The lower net earnings are primarily attributable to:
- higher tax expense of $45.6 million, largely due to future tax expense recognized as the Company draws down its future tax asset;
- the effect of the appreciating Canadian dollar, estimated at $16.8 million;
- lower copper sales volumes, offset in part by higher zinc sales volumes, resulting in lower revenues;
- higher volumes of purchased zinc and copper concentrates, which increased operating expenses by $13.2 million;
- lower profit sharing expenses, which decreased operating expenses by $7.3 million;
- higher depreciation and amortization expense, which increased by $7.3 million; and
- higher exploration expense of $6.6 million, as part of HudBay's $45.2 million exploration program for 2007.
During the first nine months of 2007 (year to date) net earnings were $198.7 million or $1.57 per share ($398.2 million or $4.00 per share). The lower net earnings are primarily attributable to:
- higher tax expense of $225.4 million, largely due to future tax expense recognized as the Company draws down its future tax asset;
- the effect of the appreciating Canadian dollar, estimated at $35.2 million;
- higher depreciation and amortization expense, which increased by $21.4 million; and
- higher exploration expense of $17.8 million.
(6) Production includes Balmat payable metal in concentrate shipped, including pre-commercial production in 2006.
(7) Excludes inventory changes at Considar Metal Marketing Inc.
(8) Zinc sales include sales to Zochem and the Balmat payable metal in concentrate shipped (including to HBMS) in 2007.
Partially offsetting these negative impacts were higher revenues from increased year over year sales volumes and metal prices net of increased operating and other costs.
Adding back non-cash tax expense in the quarter of $22.6 million and excluding the unfavourable $16 million impact(9) from the appreciation in the Canadian dollar versus the US dollar, HudBay's Q3 2007 net earnings on this basis were $105 million. Year to date earnings on this basis were $337.3 million. The Company continues to benefit from its significant tax pools, and minimal cash income taxes were paid year to date. The benefit of these tax pools is expected to continue for the balance of 2007, resulting in minimal cash income taxes this year. The Company expects to continue to pay Manitoba mining taxes in 2007.
Revenue
Total revenue for Q3 2007 was $319.8 million ($346.2 million) reflecting the negative $23 million impact of the appreciation in the Canadian dollar versus the US dollar, lower copper sales volumes and marginally lower prices for zinc and copper in Q3 2007. This was partially offset by higher sales volumes for zinc, gold and silver, together with higher realized prices for gold and silver. Total revenue year to date was $1,027.2 million ($815.9 million) reflecting higher metal sales volumes together with higher realized metal prices year to date 2007. This was partially offset by appreciation in the Canadian dollar versus the US dollar.
Through the third quarter, the Company continued to receive attractive prices, which include finished metal premiums that were above LME averages.
Realized Metal Prices(1) and Exchange Rate
---------------------------------------------------------------------------
HudBay Realized Prices (1)
Q3 2007 Three Months Ended Nine Months Ended
----------------------------------------------
Average Sept 30 Sept 30 % Sept 30 Sept 30 %
Prices(2) 2007 2006 Change 2007 2006 Change
---------------------------------------------------------------------------
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Prices in USD
Zinc US$/lb. 1.46 1.56 1.58 (1%) 1.66 1.34 24%
Copper US$/lb. 3.50 3.55 3.58 (1%) 3.28 3.15 4%
Gold US$/troy oz. 681 680 675 1% 664 603 10%
Silver US$/troy oz. 12.70 13.04 12.35 6% 13.28 10.97 21%
Prices in Cdn
Zinc C$/lb. 1.53 1.63 1.67 (2%) 1.83 1.79 2%
Copper C$/lb. 3.66 3.72 4.02 (7%) 3.62 3.55 2%
Gold C$/troy oz. 711 706 766 (8%) 732 664 10%
Silver C$/troy oz. 13.27 13.52 13.85 (2%) 14.64 12.45 18%
---------------------------------------------------------------------------
C$/US$ exchange rate 1.05 1.05 1.12 (6%) 1.10 1.13 (3%)
---------------------------------------------------------------------------
(1) Realized prices are before refining and treatment charges.
(2) London Metals Exchange ("LME") average for zinc, copper and gold prices, London Spot US equivalent for silver prices.
(9) Net of current taxes.
Operating Expenses
Operating expenses for Q3 2007 were $188.8 million ($173.5 million). The Q3 2007 increases are primarily attributable to increased sales volumes and higher costs of production. Sales of zinc, gold and silver were all higher in Q3 2007 while copper sales volumes were somewhat lower. Increased costs of production are from higher volumes for purchased zinc and copper concentrates, commercial production at Balmat as well as generally higher costs for mining and processing operations. The impact of the appreciating Canadian dollar and lower employee profit sharing costs also contributed to the year over year change in operating expenses.
Operating expenses during the first nine months of 2007 were $570.7 million ($434.4 million). The year to date 2007 increases are attributable to significant increases in sales volumes and higher costs of production. Sales of zinc metal were 24% higher and sales of copper metal were 15% higher. Increased costs of production are from higher volumes for purchased zinc and copper concentrates, commercial production at Balmat and generally higher costs for mining and processing operations, net of the impact from the appreciating Canadian dollar.
HudBay's Q3 2007 cash cost per pound of zinc sold, net of by-product credits, was negative US$0.15 (negative US$0.82) and year to date was US$0.26 (negative US$0.52). A reconciliation of this non-GAAP measure is provided in the Company's Q3 2007 MD&A.
Depreciation and amortization increased in Q3 2007 to $23.9 million ($16.6 million) and increased to $69.1 million year to date ($47.7 million). The increases primarily reflect the inclusion of Balmat beginning Q1 2007, increased depreciation and amortization expense at the Trout Lake mine and higher production tonnage at the 777 mine.
Tax Expense
Tax expense in Q3 2007 was $27.8 million compared with a net tax benefit of $17.8 million in Q3 2006. The Q3 2007 tax expense comprises $21.5 million of income tax expense ($28.0 million tax benefit) and $6.3 million of mining tax expense ($10.2 million). Certain previously unrecognized tax losses have been recognized in the quarter, having the effect of increasing the future tax asset and reducing tax expense.
Year to date tax expense was $135.1 million compared with a net tax benefit of $90.4 million in the first nine months of 2006. The year to date tax expense is comprised of $98.9 million of income tax expense ($109.0 million benefit) and $36.2 million of mining tax expense ($18.6 million). Importantly, the income tax portion is largely a non-cash expense due to the draw down of the Company's tax asset, which was recognized in 2006 and is associated with prior losses.
CORPORATE HIGHLIGHTS
2007 Exploration Program Delivering Results
HudBay continues to make excellent progress in the execution of its 2007 exploration program.
1. Significant New Zinc Discovery at Lalor Lake - On October 23, 2007 HudBay announced additional results from its diamond drill program at the Lalor Lake mineral property in the Flin Flon Greenstone Belt. To date 25 drill holes have been completed or are in progress. Based on data from 16 holes that contain widths and mineralization which have been used in the conceptual estimate, indications are potentially 18 to 20 million tonnes at 7.7% to 8.8% zinc(10). Encouraging precious metal assays were not included in the estimate and may provide additional exploration potential. The Lalor Lake deposit is near HudBay's Snow Lake concentrator which has significant additional capacity.(11)
2. First half 2007 Exploration Update -- HudBay's $45.2 million exploration program for 2007 includes drilling of electromagnetic anomalies, known deposits, structural re-interpretations to discover new ore bodies as well as exploration in our operating mines to potentially increase our ore reserves and extend the life of our existing mines. Land holdings now total 422,079 hectares including 381,874 hectares in the Flin Flon Greenstone Belt. Year to date, approximately $31.3 million ($11.4 million) was spent on exploration activities at all locations.
3. NI 43-101 Report Completed on Tom and Jason Deposits -- In July 2007, HudBay completed a National Instrument 43-101 compliant in-situ mineral resource estimate for its Tom and Jason deposits in the Yukon Territory. The mineral resource estimate for the two deposits totalled 6.43 million tonnes of indicated mineral resources grading 6.33% zinc, 5.05% lead and 56.55 grams per tonne silver and 24.55 million tonnes of inferred mineral resources grading 6.71% zinc, 3.48% lead and 33.85 grams per tonne silver. This confirmed the combined deposits as one of the largest undeveloped zinc/lead deposits in North America. The Tom and Jason deposits are located in close proximity to each other on a property of 5,278 hectares, close to the Yukon- Northwest Territories border. The property is approximately 400 km east of Whitehorse where the deposits straddle the North Canol Road and share a common airstrip.(12)
4. VMS Venture Option Agreement -- In August 2007, HudBay announced it had entered into an option agreement with VMS Ventures Inc. (VMS) covering 573 hectares in the Snow Lake area of Manitoba. The agreement builds on HudBay's own $45.2 million exploration program for 2007 and further leverages the Company's exploration opportunities. With the VMS agreement, HudBay now has option agreements in place with six mineral exploration companies in the Flin Flon Greenstone Belt.
Health, Safety, Environment and Product Quality
HudBay's lost time accident frequency rate, based on 200,000 hours worked was 0.9 year to date, unchanged from the same period in 2006. During the third quarter of 2007, the White Pine Copper Refinery received notification after external audit that it was being recommended for certification to OHSAS 18001:1999, ISO 14001:2004 and ISO 9001:2000. There were no significant environmental non-compliances during the quarter.
(10) The estimate of potential tonnes and grade of the Lalor Lake potential mineral deposit are conceptual in nature. The basis upon which the disclosed potential tonnes and grade has been determined is provided in HudBay's news release dated October 23, 2007. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the Lalor Lake deposit being delineated as a mineral resource.
(11) See news release dated October 23, 2007 - "HudBay Announces Significant New Zinc Discovery at Lalor Lake".
(12) See news release dated July 6, 2007 - "HudBay Substantially Increases Mineral Resources".
For further information, please see attached hereto selected financial information for the periods ended September 30, 2007 and 2006. Please also see HudBay's financial statements together with Management's Discussion and Analysis of Operations and Financial Condition for the three and nine months ended September 30, 2007. A copy of HudBay's financial statements for the three and nine months ended September 30, 2007 and September 30, 2006 as well as its MD&A for the three and nine months ended September 30, 2007 are available under the profile of HudBay on SEDAR at www.sedar.com and on the HudBay website at www.hudbayminerals.com.
About HudBay Minerals Inc.
HudBay Minerals Inc. is an integrated mining company operating mines, concentrators and a metal production facility in northern Manitoba and Saskatchewan. HudBay also owns a zinc oxide production facility in Ontario, the White Pine copper refinery in Michigan and the Balmat zinc mine operations in New York state. HudBay is a member of the S&P/TSX Composite Index and the S&P/TSX Global Mining Index.
Forward-Looking Information
This news release contains "forward-looking information", within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to taxation policies and pools, possible results with respect to the Lalor Lake property, HudBay's exploration program and planned expenditures as well as HudBay's future prospects. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "seeks", "expects", "budget" or variations of such words or state that certain actions, events or results "may", "could", "will", "will be", "would be" or "is expected to be". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of HudBay to be materially different from those expressed or implied by such forward-looking information, including risks associated with the mining industry such as economic factors, government regulation and approvals, environmental risks, actual results of exploration activities, future commodity prices, capital expenditures, possible variations in ore reserves, resources, grade or recovery rates, requirements for additional capital, taxation policies, changes in project parameters as plans continue to be refined, conclusions of economic evaluations as well as those factors discussed in the section entitled "Risk Factors" in HudBay's Annual Information Form for the year ended December 31, 2006, available on www.sedar.com. Although HudBay has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. HudBay does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
(HBM-F)
To view the Management's Discussion and Analysis, please click the following link:
http://www.ccnmatthews.com/docs/hbmmdaQ307.pdf
To view the Financial Statements, please click the following link:
http://www.ccnmatthews.com/docs/hbmifsQ307.pdf
HudBay Minerals Inc.
Consolidated Statements of Earnings
Unaudited
(In thousands of Canadian dollars, except share and per share amounts)
Three months ended Nine months ended
September 30 September 30
---------------------------------------------------------------------------
2007 2006 2007 2006
---------------------------------------------------------------------------
Revenue
(note 14) $ 319,805 $ 346,203 $ 1,027,245 $ 815,893
---------------------------------------------------------------------------
Expenses:
Operating 188,817 173,533 570,669 434,362
Depreciation
and amortization 23,919 16,552 69,087 47,743
General and
administrative 3,676 4,431 13,147 12,603
Stock-based
compensation
(note 10e) 3,227 1,221 10,010 5,295
Accretion of
asset retirement
obligation 789 636 2,367 1,955
Foreign
exchange loss 4,882 3,101 20,000 1,808
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225,310 199,474 685,280 503,766
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Operating
earnings 94,495 146,729 341,965 312,127
Exploration (8,583) (1,961) (26,844) (8,966)
Interest and
other income 7,563 5,893 26,371 9,037
Gain (loss) on
derivative
instruments 1,425 4,737 (6,635) 18,289
Interest expense (289) (1,679) (1,104) (9,712)
Other (345) (2,137) (19) (12,960)
---------------------------------------------------------------------------
Earnings
before tax 94,266 151,582 333,734 307,815
Tax expense
(benefit)
(note 9a) 27,801 (17,799) 135,054 (90,388)
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Net earnings
for the period $ 66,465 $ 169,381 $ 198,680 $ 398,203
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Earnings per
share:
Basic $ 0.52 $ 1.37 $ 1.57 $ 4.00
Diluted $ 0.52 $ 1.33 $ 1.55 $ 3.38
Weighted
average
number of
common
shares
outstanding
(note 10f)
Basic 127,265,301 123,318,115 126,690,856 99,487,949
Diluted 128,711,726 127,270,583 128,465,734 117,690,202
See accompanying notes to interim consolidated financial statements.
HudBay Minerals Inc.
Consolidated Statements of Retained Earnings
Unaudited
(In thousands of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
---------------------------------------------------------------------------
2007 2006 2007 2006
---------------------------------------------------------------------------
Retained earnings, beginning
of period $ 773,933 $ 307,554 $ 642,723 $ 78,732
Net earnings for the period 66,465 169,381 198,680 398,203
Transition adjustment -
financial instruments
(note 3a) - - (1,005) -
---------------------------------------------------------------------------
Retained earnings, end of
period $ 840,398 $ 476,935 $ 840,398 $ 476,935
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Consolidated Statements of Comprehensive Income
Unaudited
(In thousands of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
---------------------------------------------------------------------------
2007 2006 2007 2006
---------------------------------------------------------------------------
Net earnings for the period $ 66,465 $ 169,381 $ 198,680 $ 398,203
Other comprehensive income
(loss), net of tax (note 11) (6,751) - (23,125) -
---------------------------------------------------------------------------
Comprehensive income, end of
period $ 59,714 $ 169,381 $ 175,555 $ 398,203
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See accompanying notes to interim consolidated financial statements.
HudBay Minerals Inc.
Consolidated Balance Sheets
Unaudited
(In thousands of Canadian dollars)
September 30, 2007 December 31, 2006
---------------------------------------------------------------------------
Assets:
Current assets:
Cash and cash equivalents $ 702,883 $ 385,864
Accounts receivable 88,785 132,275
Inventories 166,261 163,842
Prepaid expenses 3,702 7,288
Current portion of fair value of
derivatives (note 12b) 5,239 2,579
Future income and mining tax assets
(note 9b) 66,507 154,063
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1,033,377 845,911
Property, plant and equipment (note 4) 453,201 444,044
Other assets (note 5) 15,529 28,560
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$ 1,502,107 $ 1,318,515
---------------------------------------------------------------------------
Liabilities and Shareholders' Equity:
Current liabilities:
Accounts payable and accrued liabilities $ 123,406 $ 139,922
Taxes payable 12,762 30,217
Current portion of other liabilities
(note 6) 36,717 28,087
---------------------------------------------------------------------------
172,885 198,226
Long-term debt (note 7) 3,140 10,214
Pension obligations 39,431 41,675
Other employee future benefits 68,673 65,083
Asset retirement obligations 34,355 33,548
Fair value of derivatives (note 12b) 30,880 -
Obligations under capital leases 2,806 4,979
Future income tax liabilities (note 9b) 582 582
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$ 352,752 $ 354,307
---------------------------------------------------------------------------
Shareholders' equity:
Share capital:
Common shares (note 10b) 311,477 308,441
Warrants (note 10c) 1 3
Contributed surplus (note 10e) 20,193 13,098
Cumulative translation adjustment - (57)
Retained earnings 840,398 642,723
Accumulated other comprehensive income
(loss) (note 11) (22,714) -
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1,149,355 964,208
---------------------------------------------------------------------------
$ 1,502,107 $ 1,318,515
---------------------------------------------------------------------------
See accompanying notes to interim consolidated financial statements.
HudBay Minerals Inc.
Consolidated Statements of Cash Flows
Unaudited
(In thousands of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
---------------------------------------------------------------------------
2007 2006 2007 2006
---------------------------------------------------------------------------
Cash provided by (used in):
Operating activities:
Net earnings for the period $ 66,465 $ 169,381 $ 198,680 $ 398,203
Items not affecting cash:
Depreciation and amortization 23,919 16,552 69,087 47,743
Future tax expense (benefit) 22,616 (28,381) 106,415 (110,024)
Foreign exchange (gain) loss (312) 6,410 8,434 1,067
Accretion expense on asset
retirement obligation 789 636 2,367 1,955
Stock-based compensation 3,227 1,221 10,010 5,295
Change in fair value of
derivatives (2,777) 5,321 3,488 (1,675)
Gain on divestiture of
Scozinc - (1,655) - (1,655)
Other (6) (3,498) (4,400) 1,380
---------------------------------------------------------------------------
113,921 165,987 394,081 342,289
Change in non-cash working
capital (note 13a) 52,386 3,034 11,127 (62,788)
---------------------------------------------------------------------------
166,307 169,021 405,208 279,501
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Financing activities:
Repayment of loans payable - - (4,000) (4,000)
Repayment of senior secured
notes - (13,128) - (124,646)
Repayment of obligations under
capital leases (996) (963) (2,988) (2,849)
Issuance of common shares, net
of cost - (320) - 16,638
Proceeds on exercise of stock
options 1,437 1,077 7,359 4,825
Proceeds on exercise of
warrants - 65,440 10 109,728
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441 52,106 381 (304)
---------------------------------------------------------------------------
Investing activities:
Additions to property, plant
and equipment (28,592) (24,725) (79,082) (92,883)
Acquisition of White Pine
Copper Refinery, Inc.,
net of cash acquired - - - (17,041)
Divestiture of Scozinc - 7,412 - 7,412
Purchase of investments - - (400) -
Additions to environmental
deposits - (1) - 62
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(28,592) (17,314) (79,482) (102,450)
---------------------------------------------------------------------------
Effect of exchange rate
changes on cash and cash
equivalents 42 (6,242) (9,088) (7,396)
---------------------------------------------------------------------------
Change in cash and cash
equivalents 138,198 197,571 317,019 169,351
Cash and cash equivalents,
beginning of
period 564,685 113,440 385,864 141,660
---------------------------------------------------------------------------
Cash and cash equivalents, end
of period $ 702,883 $ 311,011 $ 702,883 $ 311,011
---------------------------------------------------------------------------
Cash and cash equivalents
are comprised of:
Cash on hand and demand
deposits $ 47,819 $ 136,821 $ 47,819 $ 136,821
Money market instruments 655,064 174,190 655,064 174,190
---------------------------------------------------------------------------
$ 702,883 $ 311,011 $ 702,883 $ 311,011
---------------------------------------------------------------------------
See accompanying notes to interim consolidated financial statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
HudBay Minerals Inc.
Brad Woods
Director Investor Relations
(204) 949-4272
Email: brad.woods@hbms.ca
Website: www.hudbayminerals.com
Source: CCN Matthews (November 8, 2007 - 10:47 PM EST)
News by QuoteMedia
www.quotemedia.com
God Bless
Aggressive $45 million program continues -
WINNIPEG, MANITOBA--(Marketwire - Oct. 15, 2007) -
HudBay Minerals Inc. -
(TSX:HBM) (HudBay) announces results from its first half 2007 exploration program(1). Previously released data is available at
http://www.hudbayminerals.com.
During the first half of 2007, approximately 56,430 metres of diamond drilling in 153 surface drill holes was completed. Exploration expenditures including in-mine exploration totaled $20.5 million.
"Exploration is proceeding extremely well," said Peter Jones, President & CEO. "We're taking full advantage to drive organic growth with our $45 million exploration program and surface drilling at 56,430 metres is more than double the same period in 2006."
(1) Lalor Lake deposit data is provided to August 2, 2007.
MINERAL DEPOSIT TARGETS (Flin Flon Greenstone Belt)
Lalor Lake Deposit
The Lalor Lake deposit is approximately 3 km off Highway 395 and 15 km from HudBay's Snow Lake concentrator, which has significant additional capacity.
On August 2, 2007, HudBay provided an update on its ongoing diamond drill program at the Lalor Lake deposit. Mineralization intersections from the first 10 holes at approximately 800 metres from surface indicate a strike length of approximately 550 metres and a width of approximately 700 metres measured in plan view. Based on the 10 holes, the mineralization remains open in at least three directions. The massive sulphide mineralization at the Lalor Lake deposit is coarse-grained and similar to HudBay's nearby Chisel North Mine, and the previously mined Photo Lake and Chisel Mines. These mines had excellent concentrator recoveries and have produced 9.8 million ore tonnes to date, with the Chisel North Mine continuing in production.
The following tabulations are repeated from HudBay's August 2, 2007 news release. Further updates on Lalor Lake are expected to be released prior to October 31, 2007.
Main Zone Intersections
---------------------------------------------------------------------------
Drill Hole Zinc Copper Intersection Intersection (metres)
(%) (%) (metres) From -- To
---------------------------------------------------------------------------
DUB 168 13.26 0.19 23.95 781.74 - 805.69
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DUB 169 2.62 0.22 4.95 828.08 - 833.03
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DUB 170 15.62 0.21 6.09 841.05 - 847.14
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DUB 171 12.76 0.58 3.31 962.31 - 965.62
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DUB 172 9.83 0.53 4.10 930.00 - 934.10
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DUB 173 5.44 3.13 16.55 982.26 - 998.81
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DUB 174 22.59 0.43 3.93 705.18 - 709.11
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DUB 175 1.01 0.14 3.97 915.54 - 919.51
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DUB 176 10.57 0.14 2.58 643.34 - 645.92
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DUB 177 7.79 0.09 7.86 670.77 - 678.63
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Footwall Intersections
---------------------------------------------------------------------------
Drill Hole Zinc Copper Intersection Intersection (metres)
(%) (%) (metres) From -- To
---------------------------------------------------------------------------
DUB 168 10.21 0.27 3.10 881.76 - 884.86
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DUB 169 11.80 0.76 0.79 929.00 - 929.79
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DUB 171 10.55 0.21 0.55 1162.00 - 1162.55
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DUB 174 10.61 0.29 8.23 722. 89 - 731.12
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DUB 174 9.94 0.31 5.93 834. 29 - 840.22
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DUB 174 8.53 0.14 8.15 872.46 - 880.61
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DUB 174 5.90 0.27 2.96 885.96 - 888.92
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DUB 174 8.15 0.14 4.24 901.41 - 905.65
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DUB 174 5.52 0.20 12.10 910.83 - 922.93
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DUB 174 10.37 0.82 0.98 932.57 - 933.55
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DUB 175 0.02 0.43 57.57 936.00 - 993.57
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DUB 176 6.06 0.48 4.29 689.34 - 693.63
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DUB 177 7.96 0.17 1.99 753.37 - 755.36
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Precious Metal Intersections
---------------------------------------------------------------------------
Drill Hole Gold Silver Intersection Intersection (metres)
(g/t) (g/t) (metres) From -- To
---------------------------------------------------------------------------
DUB 168 5.14 31.54 1.03 890.00 - 891.03
---------------------------------------------------------------------------
DUB 169 13.47 41.59 11.30 903.70 - 915.00
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DUB 171 12.90 58.75 3.80 1078.70 - 1082.50
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DUB 172 7.10 137.16 8.47 906.77 - 915.24
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DUB 172 5.20 13.75 26.23 928.17 - 954.40
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DUB 173 2.03 66.79 22.00 1086.00 - 108.00
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DUB 174 4.75 169.99 4.56 718.33 - 722.89
---------------------------------------------------------------------------
DUB 174 16.25 194.06 0.61 739.61 - 740.22
---------------------------------------------------------------------------
DUB 175 11.59 109.37 0.31 985.73 - 986.04
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DUB 177 3.87 106.87 6.42 685.58 - 692.00
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Bur Deposit
The Bur deposit is 22 km from the Snow Lake concentrator. Drilling at the Bur deposit in 2007 continued to improve the definition of the known mineralization. During the first half, 5,881 metres were completed in 19 holes. Notable intersections include:
0.53% Cu, 10.94% Zn over 0.85 metres in drill hole BZS016
0.72% Cu, 17.26% Zn over 0.30 metres in drill hole BZS017
1.43% Cu, 3.46% Zn over 1.28 metres in drill hole BZS018
3.96% Cu, 16.66% Zn over 1.25 metres in drill hole BZS019
0.20% Cu, 3.74% Zn over 0.20 metres in drill hole BZS020
1.41% Cu, 2.85% Zn over 0.64 metres in drill hole BZS021
2.06% Cu, 14.97% Zn over 0.46 metres in drill hole BZS023
1.63% Cu, 4.86% Zn over 1.34 metres in drill hole BZS024
0.93% Cu, 14.25% Zn over 0.20 metres in drill hole BZS025
2.15% Cu, 12.30% Zn over 0.19 metres in drill hole BZS026
2.89% Cu, 8.91% Zn over 0.85 metres in drill hole BZS028
2.21% Cu, 9.44% Zn over 2.02 metres in drill hole BZS029
1.20% Cu, 1.07% Zn over 0.93 metres in drill hole BZS030
1.85% Cu, 15.99% Zn over 0.80 metres in drill hole BZS031
2.58% Cu, 6.44% Zn over 0.60 metres in drill hole BZS032
0.50% Cu, 1.43% Zn over 0.60 metres in drill hole BZS033
3.00% Cu, 5.46% Zn over 0.85 metres in drill hole BZS034
0.17% Cu, 9.47% Zn over 1.07 metres in drill hole BZS035
HudBay expects to complete a feasibility study on the Bur deposit later this year. A production decision will follow a positive feasibility study.
Talbot Lake Deposit
The Talbot Lake deposit is located 83 km from the Snow Lake concentrator. 3,156 metres were drilled in five holes. Notable intersections include:
4.63% Cu, 0.43% Zn over 3.32 metres in drill hole TLS021
HudBay expects to undertake additional drilling in 2008.
Watts River Deposit
The Watts River deposit is located 45 km from the Snow Lake concentrator. 2,737 metres of drilling were completed in four holes. Notable intersections include:
0.78% Cu, 4.36% Zn over 1.76 metres in drill hole WRS017
1.65% Cu, 2.68% Zn over 12.76 metres in drill hole WRS019 and
1.21% Cu, 3.69% Zn over 2.61 metres in drill hole WRS019
3.70% Cu, 0.61% Zn over 2.80 metres in drill hole WRS020
HudBay expects to complete a National Instrument 43-101 compliant resource estimate for the Watts River deposit.
Grassberry Deposit
The Grassberry deposit is located 73 km from the Flin Flon concentrator. A total of 895 metres were completed in three drill holes. Notable intersections include:
4.98% Cu, 12.02% Zn over 1.17 metres in drill hole GBS001
7.53% Cu, 5.10% Zn over 0.98 metres in drill hole GBS002
0.54% Cu, 11.95% Zn over 0.96 metres in drill hole GBS003 and
0.47% Cu, 6.22% Zn over 3.32 metres in drill hole GBS003 and
1.43% Cu, 9.89% Zn over 0.71 metres in drill hole GBS003
Drilling was interrupted due to deteriorating ice conditions. HudBay currently expects to restart drilling in 2008.
Jazz Deposit
The Jazz deposit is located 60 km from the Flin Flon concentrator. 3,578 metres were completed in nine holes. Notable intersections include:
2.42% Cu, 4.63% Zn over 0.58 metres in drill hole JZS005
2.19% Cu, 0.10% Zn over 2.45 metres in drill hole JZS008
2.04% Cu, 0.11% Zn over 2.58 metres in drill hole JZS009
Additional drilling is not currently planned.
Other Deposits
1,147 metres of drilling were completed in three drill holes at the Fenton and Pen-2 deposits. There were no notable intersections.
Additional drilling is not currently planned at the Fenton deposit, but additional drilling is expected at the Pen-2 deposit in 2007.
STRUCTURAL TARGETS (Flin Flon Greenstone Belt)
Chisel Lake
DUB166, which was drilled in 2006, tested a Quantec Titan 24 geophysical anomaly located down dip from the Chisel North Mine. The notable intersection was:
19.12% Cu, 0.81% Zn over 0.13 metres in drill hole DUB166
Additional drilling is not currently planned.
Trout Lake
1,473 metres were drilled in two surface holes near the Trout Lake Mine to test for mineralization along strike and for fold repetitions. There were no notable intersections. HudBay expects to resume drilling in 2007.
STRUCTURAL TARGETS (Balmat Area USA)
In the first half of 2007, three surface drill holes tested the Balmat Mine stratigraphy between the Balmat Mine and the previously mined Hyatt Mine. Notable intersections included:
21.82% Zn over 3.07 metres in drill hole 2355
Drilling is continuing in this area.
GEOPHYSICAL TARGETS (Flin Flon Greenstone Belt)
24,944 metres in 99 holes were drilled to test geophysical targets.
New discoveries of massive sulphide mineralization were made approximately 50 km from the Snow Lake concentrator and 9 km north of Provincial Highway 39. Notable intersections include:
0.42% Cu, 0.46% Zn over 0.40 metres in drill hole KUS308
0.07% Cu, 2.43% Zn over 0.39 metres in drill hole KUS310
2.15% Cu, 0.67% Zn over 0.75 metres in drill hole KUS340
In the area south of Flin Flon drill hole WZS001 tested an electromagnetic anomaly adjacent to HudBay's Windy Lake copper zinc deposit. The notable intersection was:
1.00% Cu, 3.13% Zn over 0.79 metres in drill hole WZS001
Drill testing of geophysical anomalies is expected to continue.
GEOPHYSICAL SURVEYS (Flin Flon Greenstone Belt)
877 km of line cutting, 391 km of horizontal loop electromagnetic survey, 730 km of ground magnetometer surveys and 287 km of Crone fixed loop time domain electromagnetic (FLEM) surveys were completed. Deep penetrating, large loop FLEM surveys continued in the vicinity of the Lalor Lake deposit.
10,539 km of helicopter borne electromagnetic surveys using the Geotech Airborne Survey VTEM system were also completed. These surveys were done to better define targets prior to drill testing and to identify targets in new areas not previously surveyed with the VTEM system.
In conjunction with the Geological Survey of Canada, seismic surveys were in progress in the area of HudBay's Flin Flon and 777 mine properties. These 2D and 3D surveys image stratigraphy at considerable depth.
OPERATING MINES
$2.2 million of underground in-mine exploration was completed in the first half of 2007. Results from this diamond drilling during 2007, will be included in HudBay's mineral reserve and mineral resource estimates for each underground mine as of January 1, 2008.
OPTIONED PROPERTIES (Flin Flon Greenstone Belt)
In the first six months of 2007, HudBay entered into agreements to option exploration land to Rockcliff Resources Inc. and VMS Ventures Inc. In total, HudBay had option agreements in place with six exploration companies at June 30, 2007.
2007 HudBay Procedures
Exploration core drilling was either BQ or NQ size. The core was logged and mineralized intersections were marked for sampling and assaying by geologists and geotechnicians employed by HudBay's subsidiary Hudson Bay Exploration and Development Company Limited (HBED). The marked intersections or intervals were sawn in half by a diamond saw and one half of the core was placed in plastic bags and tagged with unique sample numbers, while the second half was returned to the core box and stored. Each bagged core sample was transported to HudBay's subsidiary Hudson Bay Mining and Smelting Co., Limited's assay laboratory in Flin Flon, Manitoba where it was dried, crushed and pulverized and a 250-gram sample was prepared for assaying. From each 250 gram sample 0.25 grams was removed and leached in aqua regia and analyzed by ICP-AES for Ag, Cu, Zn, As, Pb, Ni and Fe. Also from the 250-gram sample, 15 grams was removed for gold determination by fire assaying with Atomic Absorption finish.
Assaying integrity is monitored internally with a quality control program, which includes the use of assay sample standards, blanks, duplicates and repeats and externally through national and international programs. In addition, within each group of 20 core samples, one core sample has a second 250 gram split collected for check assaying at Acme Analytical Laboratories Ltd. in Vancouver, B.C. This news release provides core lengths and additionally where indicated, horizontal or vertical lengths of mineralization intersected. True widths are not provided. Where metal assays are provided for intersections they are either a single assay of a sample of the entire intersection length or a composite of assays calculated from interval weighted assays over the intersection length. The data herein and the contents of this news release have been reviewed by Kelly Gilmore, B.Sc. P. Geo., Chief Exploration Geologist with HBED, who is a Qualified Person within the meaning of National Instrument 43-101, with the ability and authority to verify the authenticity and validity of the data.
Attached to this news release are tables showing the first half 2007 drill results. Prior period drill results may be found at the HudBay web site, www.hudbayminerals.com.
About HudBay Minerals Inc.
HudBay is an integrated mining company operating mines, concentrators and a metal production facility in northern Manitoba and Saskatchewan. HudBay also owns a zinc oxide production facility in Ontario, the White Pine copper refinery in Michigan and the Balmat zinc mine operations in New York state. HudBay is a member of the S&P/TSX Composite Index and a member of the S&P/TSX Global Mining Index.
(HBM-G)
Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to future exploration plans and expenditures by HudBay. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of HudBay to be materially different from those expressed or implied by such forward-looking information, including risks associated with the mining industry such as economic factors as they effect exploration, future commodity prices, actual results of current exploration activities, government regulation, environmental risks, permitting timelines, capital expenditures, changes in project parameters as plans continue to be refined as well as those factors discussed in the section entitled "Risk Factors" in HudBay's Annual Information Form for the year ended December 31, 2006, available on www.sedar.com. Although HudBay has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. HudBay does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
Please note: To view a table of HudBay's First Half 2007 Drill Hole Locations and Assay Results, please view the following link:
http://www.ccnmatthews.com/docs/1015hbm.pdf
FOR FURTHER INFORMATION PLEASE CONTACT:
HudBay Minerals Inc.
Brad Woods
Director, Investor Relations
(204) 949-4272
Email: brad.woods@hbms.ca
Website:
http://www.hudbayminerals.com
http://investorshub.advfn.com/boards/board.asp?board_id=7206
HudBay Substantially Increases Mineral Resources -
CCN Matthews -
http://biz.yahoo.com/ccn/070706/200707060400986001.html?.v=1
http://www.investorshub.com/boards/board.asp?board_id=7206
HudBay Minerals Inc. (TSX:HBM) will hold its Annual
and Special meeting -
WINNIPEG, MANITOBA--(CCNMatthews - May 23, 2007) -
HudBay Minerals Inc.
(TSX:HBM) will hold its Annual and Special Meeting
of shareholders on Thursday, May 31, 2007.
The proposals to be put before shareholders at the meeting
will include:
- Election of the Board of Directors
- Appointment of auditors and authorization to fix
remuneration for the auditors
- Approval of an amended and restated Shareholder
Rights Plan (the"Plan")
In connection with the proposed Plan previously described
in the Company's management information circular, the
Company has made further minor amendments to the Plan
that strengthen certain key definitions and clarify
interpretative provisions.
Institutional Shareholder Services Canada has deemed
the proposed amended Plan as a "new generation" plan and
is supporting its ratification. A copy of the proposed
amended Plan can be found in the Investors section of
the Company's website at
http://www.hudbayminerals.com.
Shareholders may also contact
Kingsdale Shareholder Services
at 1-800-775-1986 for a copy of the amended Plan.
The meeting will take place at the TSX Broadcast &
Conference Centre, Gallery Room, 130 King Street West,
Toronto, Ontario with proceedings scheduled to begin
at 2:00 p.m. ET. Allen J. Palmiere, Chairman of
the Board of Directors, and Peter R. Jones, President
and Chief Executive Officer, will host the meeting.
For those unable to attend in person, the meeting will
be live webcast at
http://www.hudbayminerals.com
The proceedings will be presented with accompanying
slides, and will also be archived on the site.
Instructions for accessing the live webcast and
archived materials will be provided on the website.
About HudBay Minerals Inc.
HudBay Minerals Inc.
is an integrated mining company operating mines,
concentrators and a metal production facility in
northern Manitoba and Saskatchewan.
HudBay also owns a zinc oxide production facility
in Ontario, the White Pine copper refinery in Michigan
and the Balmat zinc mine operations in New York state.
HudBay is a member of the S&P/TSX Composite Index.
(HBM-G)
FOR FURTHER INFORMATION PLEASE CONTACT:
HudBay Minerals Inc.
Brad Woods
Director Investor Relations
(204) 949-4272
Email: brad.woods@hbms.ca
Website: www.hudbayminerals.com
Source: CCN Matthews (May 23, 2007 - 10:04 PM EDT)
News by QuoteMedia
www.quotemedia.com
http://www.investorshub.com/boards/board.asp?board_id=7206
Record-setting Quarterly Revenue Performance Contributes to Strong Cash flow Generation
- Revenue increases 68% to $349.1 million
- Operating cash flow(1) nearly doubles to $142.5 million
- Cash of $517.8 million at March 31, 2007
- Earnings before tax increases 91% to $117.5 million
- Significant tax pools continue to shelter cash income taxes
- Net earnings of $63.1 million versus $76.0 million in Q1 2006
- 2007 $45.2 million exploration program well underway
- Overall production on plan for quarter; Balmat achieves commercial production Jan. 1, 2007
- Balmat operations certified to ISO 14001:2004 and OHSAS 18001:1999
- Cash cost per pound of zinc sold, net of by-product credits "negative" US$0.33
WINNIPEG, MANITOBA--(CCNMatthews - May 9, 2007) - HudBay Minerals Inc. (TSX:HBM) (HudBay or the Company) today announced a 68% increase in revenue to $349.1 million, compared to the first quarter of 2006 (Q1 2006), contributing to earnings of $63.1 million or $0.50 per share while operating cash flow increased by 83% to $142.5 million, for the quarter ended March 31, 2007 (Q1 2007).
FINANCIAL HIGHLIGHTS
---------------------------------------------------------------------------
Three months ended March 31
($000's except per share amounts) --------------------------------
2007 2006
---------------------------------------------------------------------------
Revenue 349,142 207,963
---------------------------------------------------------------------------
Earnings before tax 117,515 61,643
---------------------------------------------------------------------------
Net Earnings 63,076 75,986
---------------------------------------------------------------------------
Basic EPS(2) 0.50 0.89
---------------------------------------------------------------------------
EBITDA(3) 144,770 77,727
---------------------------------------------------------------------------
Operating cash flow before changes
in working capital 142,500 77,973
---------------------------------------------------------------------------
Cash and cash equivalents 517,772 127,364
---------------------------------------------------------------------------
Total assets(4) 1,391,841 1,318,515
---------------------------------------------------------------------------
(1) Operating cash flow excluding changes in non-cash working capital.
(2) Earnings per share
(3) Earnings before interest, taxes, depreciation and amortization,
loss/gain on derivative instruments, interest and other income and
other.
(4) 2007 at March 31st ; 2006 at December 31st.
The bracketed values that follow denote the comparative figures for Q1 2006.
Results for Q1 were firmly in line with our expectations, said Peter Jones, President & CEO. Production was on plan and higher metal prices and solid sales grew revenue by 68% and operating cash flow by 83% to $142.5 million, compared to Q1 last year.
OPERATING HIGHLIGHTS
---------------------------------------------------------------------------
($000's except per share amounts) Three months ended March 31
---------------------------------------------------------------------------
Production 2007 2006
---------------------------------------------------------------------------
Zinc(5) tonnes 31,408 29,906
---------------------------------------------------------------------------
Copper tonnes 21,724 23,686
---------------------------------------------------------------------------
Gold troy oz. 24,213 26,511
---------------------------------------------------------------------------
Silver troy oz. 352,447 390,230
---------------------------------------------------------------------------
Metal Sold(6)
---------------------------------------------------------------------------
Zinc, including sales to Zochem(7) tonnes 31,857 30,172
---------------------------------------------------------------------------
Copper tonnes 24,662 18,932
---------------------------------------------------------------------------
Gold troy oz. 29,716 14,846
---------------------------------------------------------------------------
Sliver troy oz. 383,919 232,456
---------------------------------------------------------------------------
http://app.quotemedia.com/quotetools/popups/story.jsp
Buyback yes, I hope HBM management is smart enough -
to use extra cash for a buyback -
or Lundin will pick it UP for fiatBucky peanuts -
http://www.hudbayminerals.com
Tia.
http://www.investorshub.com/boards/board.asp?board_id=7206
Buyback yes, I hope HBM management is smart enough -
to use extra cash for a buyback -
or Lundin will pick it UP for fiatBucky peanuts -
http://www.hudbayminerals.com
Tia.
HudBay Minerals Inc. Webcast & Conference Call -
WINNIPEG, MANITOBA --(CCNMatthews - May 2, 2007) -
(TSX:HBM) (HudBay) today announced that Peter Jones, President
and Chief Executive Officer, together with Jeff Swinoga,
Vice-President and Chief Financial Officer, will be hosting
a conference call to discuss HudBay's
first quarter 2007 results on May 10, 2007.
Details are as follows:
First Quarter 2007 Results Conference Call and Webcast
Date: May 10, 2007
Time: 9:00 am (Eastern Time)
Webcast: www.hudbayminerals.com
Dial in: 416-646-3096 or 800-814-4857
Replay: 416-640-1917 or 877-289-8525
Replay Passcode: 21231089#
A news release containing the first quarter 2007 results
will be issued prior to the conference call,
and will also be posted on HudBay's website.
The conference call replay will be available until midnight
(Eastern Time) on Thursday, May 17, 2007.
An archived audio webcast of the call will also be available
on HudBay's website.
About HudBay Minerals Inc.
HudBay Minerals Inc. is an integrated mining company
that operates mines, concentrators and a metal production
complex in northern Manitoba and Saskatchewan.
The company also owns a zinc oxide production facility
in Ontario, the White Pine Copper Refinery in Michigan
and the Balmat zinc mine in New York state.
HudBay is a member of the S&P/TSX Composite Index.
(HBM-G)
FOR FURTHER INFORMATION PLEASE CONTACT:
HudBay Minerals Inc.
Brad Woods
Director, Investor Relations
(204) 949-4272
Email: Brad.woods@hbms.ca
Website: www.hudbayminerals.com
http://www.investorshub.com/boards/board.asp?board_id=7206
Hudson Bay Mining and Smelting Co. Limited -
which began mining and smelting operations at -
Flin Flon, Manitoba in 1927.
http://www.zochem.com/
Hudson Bay Mining and Smelting Co. Limited -
is wholly owned by -
HudBay Minerals Inc.
I have been a shareholder for so long -
I can't even remember when I bought it? -
Lundin should join up -
it will be good for all -
http://www.investorshub.com/boards/board.asp?board_id=7206
HudBay Renews Shareholder Rights Plan - CCN Matthews
HudBay Minerals Inc.
WINNIPEG, MANITOBA--(CCNMatthews - May 1, 2007) -
(TSX:HBM) ("HudBay") today announced that it has renewed its
shareholder rights plan (the "Plan"), subject to
shareholder approval.
Shareholders will be asked to approve the Plan at HudBay's
annual and special meeting scheduled for May 31, 2007.
HudBay's current shareholder rights plan
(the "Prior Plan") is otherwise scheduled to expire at
the end of its three-year term on November 9, 2007.
The Plan is generally consistent with the terms of the
Prior Plan. A description of the Plan is set out in
HudBay's management information circular
dated May 1, 2007, as filed on SEDAR.
The purpose of the Plan is to ensure that its shareholders
continue to receive the benefits associated with the Prior
Plan and is designed to encourage the fair and equal
treatment of HudBay's shareholders in connection with
any take-over bid and to ensure HudBay's shareholders
and board of directors have sufficient time to consider
whether there are other options that would more
effectively maximize shareholder value.
The Plan has been accepted by the Toronto Stock Exchange,
subject to shareholder ratification.
The Prior Plan will remain in effect until its expiry if
the Plan is not approved by shareholders.
The Plan's three-year term will expire at the termination
of the annual meeting of shareholders in 2010.
A copy of the Plan has been filed under HudBay's profile
on SEDAR at www.sedar.com.
About HudBay Minerals Inc.
HudBay Minerals Inc.
is an integrated mining company that operates mines,
concentrators and a metal production complex in
northern Manitoba and Saskatchewan.
The company also owns a zinc oxide production facility
in Ontario, the White Pine Copper Refinery in Michigan
and the Balmat zinc mine in New York State.
HudBay is a member of the S&P/TSX Composite Index.
http://app.quotemedia.com/quotetools/popups/story.jsp
http://www.investorshub.com/boards/quotes.asp?ticker=T.HBM
Buyback yes, I hope HBM management is smart enough -
to use extra cash for a buyback -
http://www.hudbayminerals.com
Tia.
Rumors going around that Lundin Mining may be in talks to buyout HudBay at CAD$30/share
HudBay to Host Conference Call for 2006 Third Quarter Results
Monday October 30, 11:18 am ET
WINNIPEG, MANITOBA--(CCNMatthews - Oct. 30, 2006) - HudBay Minerals Inc. (TSX:HBM - News; "HudBay") today announced that it will hold a conference call for its 2006 third quarter financial and operational results on Friday, November 10, 2006 at 10 a.m. Eastern Time. A news release outlining the results is scheduled to be issued on the same day prior to the opening of trading.
ADVERTISEMENT
',300,250,-143015,239011,'1','321',-1,-1,'');}else{setTimeout('if(document.pradi1){document.pradi1.onload()}',200);}">
Peter R. Jones, President and Chief Executive Officer of HudBay will host the call together with Jeff Swinoga, Vice-President and Chief Financial Officer.
The conference call can be accessed by dialing 416-644-3422 or toll free at 1-866-249-2165. An archived audio webcast of the call will be available on HudBay's website at www.hudbayminerals.com.
A replay of the Conference Call will be available until 11:59 p.m. Eastern Time on Friday, November 17, 2006. It can be accessed at 416-640-1917 or toll free at 1-877-289-8525 using the passcode 21207645#.
About HudBay Minerals Inc.
HudBay Minerals Inc. is an integrated mining company that operates mines, concentrators and a metal production complex in northern Manitoba and Saskatchewan. The company also owns a zinc oxide production facility in Ontario, the White Pine copper refinery in Michigan and the Balmat zinc mine in New York state.
HudBay is a member of the S&P/TSX Composite Index.
Strong environment for Mining companies in Wall Street Transcript Canadian Natural Resources Issue
Tuesday October 17, 10:44 am ET
67 WALL STREET, New York--October 17, 2006--The Wall Street Transcript has just published its Canadian Natural Resources issue, a report offering a timely review of the sector to serious investors and industry executives. This 108-page feature contains an industry commentary through in-depth interviews with top management from 26 firms. The issue also contains an "Off the Record" Review of Management by Management. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
ADVERTISEMENT
Topics covered: Canadian paper and forest products, Strong Currency, Lumber producers, Building material producers, Rapidly falling demand, Rapidly declining and depressed pricing, Private money, Share buybacks, Dividend reinstatements, Special dividends, Special acquisitions, Large pools of capital, Private timberlands, Fail-safe method, Earnings momentum, stock picks and stocks to avoid.
Companies include: Aeroquest International Limited (AQL.V), Aber Diamond (ABER), Alcan Aluminum (AL), Afri-Can Marine Minerals Corp. (AFA.V), Ascendant Copper Corporation (ACX.TO), Globestar Mining Corporation (GMI.V), Bluerock Resources Ltd. (BRD.V), Bactech Mining Corporation (BM.V), Bell Resources Corporation (BL.TO), First Quantum (FM.TO); Hud Bay Minerals (HBM: TSX); Dejour Enterprise Ltd. (DJE.V), IPSCO( IPS), Callinan Mines Limited (CAA.V), IBI Corporation (IBI.V), Cameco (CCJ), Compliance Energy Corporation (CEC.V), Lion Ore (LIM.TO), Domtar (DTC), Gitennes Exploration INC. (GIT.TO), Kenrich-Eskay Mining Corp. (KRE.V), International Royalty Corporation (IRC.TO), Tck Cominco (TCK), Houston Lake Mining INC. (HLM.V), West Fraser (WFT: TSX), Interfor (IFPa.TO); Weyerhaeuser (WY), MeadWestvaco (MWV), Boise, NewPage, Canfor (CFP.TO), Polaris Minerals Corporation (PLS.TO), Major Drilling Group International, INC. (MDI.TO), Robex Resources Inc. (RBX.V), North Atlantic Resources Ltd. (NAC.TO), Constellation Copper Corporation (CCU.TO), Sino-Forest (TRE.TO), TimberWest Forest (TWF-UN.TO), Acadian Timber Fund (ADN-UN.TO), Fraser Papers (FPS.TO), Canfor Pulp Fund (CFX-UN.TO), SFK Pulp Fund (SFK-UN.TO), Abitibi (ABY), Cascades (CAS.TO), Tembec (TBC.TO), Norbord (NBD.TO), Sirios Resources Inc. (SOI.V), Spur Ventures Inc. (SVU.TO), and Strathmore Minerals Corporation (STM.V), Yukon Zinc Corporation (YZC.V). Analysts Include: Richard Kelertas, Dundee Securities Corp., Paul Quinn, Salman Partners Inc., John Hughes, Desjardins Securities.
In the following brief excerpt from the 108 page report, John Hughes discusses the outlook for the Canadian Mining sector and prospects for investors.
TWST: How has the group done from a business perspective so far this year?
Mr. Hughes: Extremely well. It has been another good year for mines and metal as a whole. On the commodity front, we've had one of the better years in terms of being able to hold historically high pricing, which I think has been quite a surprise to the market. That is all during a period when we've had some overriding concerns on the macro level with regard to the world economies, more specifically to the United States and where they may be going, given the housing bubble having burst. We're seeing that happen before our eyes, and we are concerned about the negative impact that may have in terms of the future direction of the US economy.
Of course, that leads into a demand discussion on the metals. We've been up against some negative news in terms of where demand may be going. At the same time, we've held what are historically high price levels on the commodities that we cover - copper at $3.50 a pound, aluminum staying toward the top at $1.15 a pound, nickel with a phenomenal summer period at about $13 a pound on the three-month price, and zinc at $1.55 a pound. So it's a very strong entry point into the fourth quarter on price, and we're quite excited about the fourth quarter potential, given that the current quarter is seasonally a strong period for the metal.
TWST: If we look a little longer term, what is your outlook?
Mr. Hughes: We see a sustained cycle in the metals. Certainly, the world as a whole is looking much closer on the demand side versus the supply side. We are quite different in this particular cycle. When we came out of the late 1980s and into the early 1990s, we had a large number of big projects that were up and coming. The Escondida copper mine and the Red Dog mine in zinc, for example, provided all the supply the world needed through the course of the 1990s. As a result, metal prices were held extremely low when supply of each commodity increased. Going forward, we do not have a new generation of mine development to provide the oversupply situation that we had through the course of the 1990s, so today we are looking at an extended metal cycle.
TWST: With the industry doing so well at this point, what are they doing with the money if they're not out looking for new projects?
Mr. Hughes: Certainly there are several lazy balance sheets out there very heavy with cash, cash being a non-producing asset. But what we have seen through the course of this year is the consolidation trend, whether it is Xstrata with Falconbridge or CVRD (RIO) with Inco (N). That trend will continue when the opportunities present themselves. In Canada, we've lost quite a number of the large cap mining companies to international mining houses recently. We are not expecting that the large-scale mining houses worldwide - BHP Billiton (BBL), Anglo American (AAUK), Rio Tinto (RTP), or even Xstrata - will be acquiring small to intermediate sized companies. Generally, we would expect to perhaps see mergers similar to the recent EuroZinc (EZM)/Lundin Mining (LUN.TO) get-together, with more geographically-related as opposed to synergy-related companies getting together. But we don't anticipate a mass consolidation of the intermediate and the junior producers worldwide.
TWST: Why not?
Mr. Hughes: Acquisitions should provide a material impact to justify the acquisition. Excluding Alcan and Teck Cominco (TCK), we really don't have large cap stocks that are available to be acquired. Currently, Alcan is the rumored next potential candidate to be acquired.
TWST: Have we seen much in the way of dividend increases with these cash flow improvements that the industry has experienced?
Mr. Hughes: Yes, we have, in both steels and on the metal side. In fact, it is interesting to note that Teck Cominco, one of our highest dividend-yielding stocks, is providing a dividend yield of about 3%. That is not bad for a mining company, particularly by historical levels. At present, the majority of base metals companies provide a dividend yield of about 1%. Another exception is Aber Diamond Corporation (ABER), which is offering a 3.1% yield. So we do have several that have increased their dividend, and we would expect that to be a continuing trend, in addition to active share buyback programs.
TWST: Given your positive outlook, what should investors be looking at?
Mr. Hughes: Right now, we're looking at stocks that have participated on the downside, as the base metals as an asset class moved out of favor beginning about three months ago. Specifically, we're looking at quality names at lower prices. In the larger caps, Teck Cominco and Alcan remain our two top picks and we think they will again come back into the cross-hairs of the majority of investors as pricing of the base metals commodities moves up through the fourth quarter. First Quantum (FM.TO) has a pure play on copper, and we recommend buying that stock right now. In addition, HudBay Minerals (HBM.TO), which is a fully integrated copper and zinc producer, provides material upside to our target pricing. So there are several stocks that we do like.
On the steel front, IPSCO (IPS) remains our steel company of choice. We like the plate market and tubular market through 2007, and those are the two principal markets in which IPSCO participates. The majority of our Buy-recommended stocks provide a 30%-35% rate of return for our one-year target prices.
The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This 108-page special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online .
The Wall Street Transcript does not endorse the views of any interviewees nor does it make stock recommendations.
Looks like HudBay is fairly valued when using Price/EBITDA.
Average Price/EBITDA is 5.176 between PCU, WIRE, FCX, PD, and OLN
Using HudBay's 6 month (ended June 30, 2006) EBITDA multiplied by 2 you get $3.24 (CAD) EBITDA/share (dilluted).
$3.24 x 5.176 = $16.77 (CAD)
HBM last closing price $16.65 (CAD)
However if you use the 9.64 industry average P/E (YHOO FIN Copper Industry) of 9.64 you get a price of:
9.64 x 4.06 = $39.14 (CAD)
Looks to me that EBITDA is or is close to how the mining companies are valued. Obviously there is room for argument since I only used five companies to come up with an average Price/EBITDA
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