Value Microcaps Motherboard

[Bobwins]

wade HBM is my #1 holding.

HBM EARNINGS, I got this from a stockhouse board. I can't find it myself but it's great news so here it is:

EXECUTIVE SUMMARY
For the third quarter 2006, HudBay set several Company records including higher revenues, earnings,
and cash flow from operating activities, compared to any previous quarter.
Company incurred three lost time accidents in the quarter compared to four in the same quarter in
2005. There were no significant environmental non-compliances during the quarter.
Total revenue for the quarter was $346.2 million, resulting from the sale of:
�� 29,588 tonnes of zinc at a realized price of US$1.58/lb. (LME average was US$1.53/lb.)
�� 23,343 tonnes of copper at a realized price of US$3.58/lb. (LME average was US$3.48/lb.)
�� 20,901 ounces of gold at a realized price of US$675/troy oz.
�� 313,117 ounces of silver at a realized price of US$12.35/troy oz.
Earnings were $169.4 million for the quarter, or $1.37 per share, compared to $23.4 million for the
same quarter in 2005, or $0.28 per share. Excluding the increase in the Company’s future income tax
asset of $26.7 million, earnings were $142.7 million or $1.16 per share, for the quarter.
Significant by-product credits from copper, precious metals, zinc oxide and other associated revenue
for the quarter resulted in a cash cost per pound of zinc sold of negative US$0.82/lb. (a non-GAAP
measure).
Cash flow from operating activities was $166.0 million before changes in non-cash working capital for
the quarter, or $1.35 per share, compared to $33.2 million, or $0.40 per share, for the same quarter in
2005.
Cash and cash equivalents was $311.0 million at September 30, 2006 and $239.9 million of cash in
excess of debt.
Mine production for the quarter was 643,674 tonnes of ore compared to 660,045 tonnes for the same
quarter in 2005. Ore metal grades were higher compared to the same quarter in 2005, with zinc at
5.1% (compared to 5.01%), copper at 2.43% (compared to 1.83%), gold at 1.77 g/tonne (compared to
1.65 g/tonne) and silver at 19.94 g/tonne (compared to 18.63 g/tonne).
Copper production from our smelter increased by 17% to 24,279 tonnes for the quarter compared to the
same quarter in 2005 and unit operating costs decreased by 13% to 22.9¢/lb. Zinc production from our
zinc plant increased by 18% to 30,418 tonnes for the quarter compared to the same quarter in 2005
and unit operating costs declined by 13% to 23.8¢/lb.
Balmat mine pre-production in the quarter was 4,569 tons of zinc in zinc concentrate. Project capital
costs of US$21.6 million have been expended to the end of this quarter. The estimated final capital
cost of the project is US$25.1 million before deduction of capitalized pre-production operating costs, net
of revenues. Balmat is expected to achieve commercial production in the first quarter of 2007.
The Collective Bargaining Agreements (“CBA’s”) with HBMS’ unionized Flin Flon/Snow Lake workforce
expired on December 31, 2005. In 1998, in support of the $435 million 777 Project, HBMS entered into
an Amending Agreement in respect of certain of its collective bargaining agreements. The Amending
Agreement prohibits strikes and lockouts and provides for binding arbitration through 2012 in the event
that negotiated CBA settlements are not achieved. Formal negotiations for new CBA’s ceased during
the quarter, and subsequent to the end of the quarter, a binding arbitration, three year award was
concluded.