WINNIPEG, MANITOBA--(CCNMatthews - May 10, 2006) - HudBay Minerals Inc.
(TSX:HBM) (HudBay) today announced it will adjust the number of diluted
shares reported in its previous financial statements for the quarter and
year ended December 31, 2005 resulting in an increase to its diluted
earnings per share (EPS).
HudBay intends to re-file financial statements and its management
discussion and analysis for the quarter and year ended December 31,
2005, as soon as practicable, reflecting the adjustments in the table
below. HudBay notes that its financial statements are unchanged in all
other respects, including the calculation of basic EPS and EPS for other
quarters in 2005.
In addition to this press release, HudBay will communicate by mail
with securityholders who have received documents containing financial
statements or documents that refer to the previously filed financial
statements.
The previously filed financial statements overstated the number of
diluted shares. The overstated diluted shares, when divided into
earnings, resulted in an understatement of the fully diluted EPS.
The adjustments have been discussed with HudBay's auditors Deloitte & Touche LLP who are in agreement with the adjustments.
The following table shows the adjustments.
Diluted Shares Diluted EPS
To be re-filed
Quarter ended December 31, 2005 93,828,530 $0.47
Year ended December 31, 2005 84,767,082 $1.01
Previously filed
Quarter ended December 31, 2005 129,621,244 $0.34
Year ended December 31, 2005 121,116,832 $0.70
The number of fully diluted shares have been determined using the
Treasury Stock Method of calculation in both the re-filed and previously
filed financial statements.
About HudBay Minerals Inc.
HudBay Minerals Inc. is an integrated mining and metal producing
company that operates mines and concentrators in northern Manitoba and a
metal production complex in Flin Flon, Manitoba. The company also owns a
zinc oxide production facility in Brampton, Ontario, a copper refinery
in Michigan and the Balmat zinc mine in New York state, which is being
re-opened.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements", within the
meaning of applicable Canadian securities legislation, concerning the
business, operations and financial performance and condition of HudBay.
Forward-looking statements include, but are not limited to, statements
with respect to the future price of zinc, copper, gold and silver, the
estimation of mineral reserves and resources, the realization of mineral
reserve estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, costs and timing
of the development of new deposits, success of exploration activities,
permitting time lines, currency exchange rate fluctuations, requirements
for additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, title disputes
or claims, limitations on insurance coverage, increased electricity,
heavy fuel oil and natural gas cost risk, inflation risks and risks
associated with the re-opening of the Balmat mine. Generally, these
forward-looking statements 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 statements are 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 statements, including but not limited to: risks
related to the integration of acquisitions; risks related to
international operations; risks related to joint venture operations;
actual results of current exploration activities; actual results of
current reclamation activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined; future
commodity prices; possible variations in ore reserves, grade or recovery
rates; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes and other risks of the mining
industry; delays in obtaining governmental approvals or financing or in
the completion of development or construction activities, as well as
those factors discussed in the section entitled "Risk Factors" in
HudBay's Annual Information Form for the year ended December 31, 2005,
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 statements, 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 statements. Accordingly, readers should not place undue
reliance on forward-looking statements. HudBay does not undertake to
update any forward-looking statements that are incorporated by reference
herein, except in accordance with applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
HudBay Minerals Inc.
Don Bain
Director, Investor Relations
(204) 949-4272
(204) 942-8177 (FAX)
don.bain@hbms.ca
www.hudbayminerals.com