Hudbay Minerals Inc (HBM)

[NYBob]

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
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Three months ended March 31
($000's except per share amounts) --------------------------------
2007 2006
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Revenue 349,142 207,963
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Earnings before tax 117,515 61,643
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Net Earnings 63,076 75,986
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Basic EPS(2) 0.50 0.89
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EBITDA(3) 144,770 77,727
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Operating cash flow before changes
in working capital 142,500 77,973
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Cash and cash equivalents 517,772 127,364
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Total assets(4) 1,391,841 1,318,515
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(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

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($000's except per share amounts) Three months ended March 31
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Production 2007 2006
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Zinc(5) tonnes 31,408 29,906
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Copper tonnes 21,724 23,686
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Gold troy oz. 24,213 26,511
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Silver troy oz. 352,447 390,230
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Metal Sold(6)
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Zinc, including sales to Zochem(7) tonnes 31,857 30,172
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Copper tonnes 24,662 18,932
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Gold troy oz. 29,716 14,846
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Sliver troy oz. 383,919 232,456
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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