- 2007 metal production increases over 2006 results
- Strong metal production profile expected for 2008
WINNIPEG, MANITOBA, Feb 15, 2008 (Marketwire via COMTEX News Network) --
HudBay Minerals Inc. (TSX:HBM) (HudBay or the Company) today announced its 2007 production results and outlook for 2008.
"In
2007, we increased our total metal production with growth in zinc,
copper, silver and gold," said Allen Palmiere, President and CEO. "Our
expectation for 2008 is for another solid year of production."
2007 PRODUCTION(1)
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Three months ended Twelve months ended
Dec. 31 Dec. 31
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Production(2) 2007 2006 2007 2006
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Zinc tonnes 31,383 31,959 126,269 123,253
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Copper tonnes 23,194 23,194 89,995 88,225
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Gold troy oz. 26,222 28,143 102,587 97,952
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Silver troy oz. 385,698 342,963 1,446,738 1,344,927
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2008 OUTLOOK
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2008 Production Forecast
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Total(2) From HudBay Sources
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Zinc (000's tonnes) 120 -- 150 120 - 150
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Copper (000's tonnes) 70 -- 80 50 - 60
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Gold (000's oz) 90 -- 100 90 -- 100
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Silver (000's oz) 1,100 -- 1,400 900 -- 1,100
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In 2008, HudBay expects growth in zinc metal production with
gold and silver production forecast to be similar to 2007. In addition
to its own concentrates, HudBay processes concentrates purchased from
others. In 2008, the Company expects to process less purchased copper
concentrates. This change is in response to HudBay's consideration of
the Government of Canada's 2008 air release targets. No further changes
to the new annual air release targets are expected until 2015. The
Company does not expect the lower production from purchased concentrates
to have a significant impact on 2008 earnings.
(1) See 2007 Production Summary table below for further details on 2007 production.
(2) Includes metal produced from HudBay's own concentrates and metal produced from concentrates purchased from others.
2007 PRODUCTION SUMMARY
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Three Months Ended Year Ended
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Dec 31 Dec 31 Dec 31 Dec 31
2007 2006 2007 2006
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Metal Produced(1)
Metal from HBMS
Concentrates
Zinc tonnes 24,866 27,419 99,803 113,637
Copper tonnes 13,638 15,317 54,301 56,698
Gold troy oz. 25,577 27,563 100,255 95,980
Silver troy oz. 253,713 245,328 943,429 962,743
Metal from HBMS
Purchased
Concentrates
Zinc tonnes 1,638 3,569 10,717 4,329
Copper tonnes 9,556 7,877 35,694 31,527
Gold troy oz. 645 580 2,332 1,972
Silver troy oz. 131,985 97,635 503,309 382,184
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Total HBMS Metal
Produced
Zinc tonnes 26,504 30,988 110,520 117,966
Copper tonnes 23,194 23,194 89,995 88,225
Gold troy oz. 26,222 28,143 102,587 97,952
Silver troy oz. 385,698 342,963 1,446,738 1,344,927
Balmat(2)
Zinc metal in
concentrate
for sale tonnes 6,486 4,003 22,068 9,037
Metal in equivalent
concentrate
purchased by
HudBay(3) tonnes (1,607) (3,032) (6,319) (3,750)
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Total Produced(4)
Zinc tonnes 31,383 31,959 126,269 123,253
Copper tonnes 23,194 23,194 89,995 88,225
Gold troy oz. 26,222 28,143 102,587 97,952
Silver troy oz. 385,698 342,963 1,446,738 1,344,927
Zinc Oxide
Zinc from HBMS tonnes 7,560 6,834 29,134 32,469
Zinc from others tonnes 11 1,255 11 1,448
Zinc oxide produced tonnes. 9,280 9,861 35,583 41,378
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(1) Metal from concentrates and purchased concentrates include
copper, gold and silver returned to the copper smelter for re-processing
as part of the normal production process. Metal reported in concentrate
is prior to refining losses or deductions associated with smelter
terms.
(2) Not in commercial production in 2006.
(3)
Includes tonnes from metal in Balmat equivalent purchased concentrates,
purchased from Xstrata. Through an arrangement to decrease costs, HudBay
sells all concentrates from its Balmat zinc mine to Xstrata and elects
annually to purchase up to 50% of Balmat's zinc concentrate production
sold to Xstrata.
(4) Includes production of metal and metal in concentrate.
2007 FINANCIAL RESULTS
HudBay
expects to announce its 2007 financial results together with complete
details of its production and operating performance on March 17,
2008.
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
HudBay's estimated future production and outlook and earnings for 2008.
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, 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 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.
(HBM-G)
SOURCE: HudBay Minerals Inc.
HudBay Minerals
Inc.
Brad Woods
Director Investor Relations
(204) 949-4272
Email: brad.woods@hbms.ca
Website: www.hudbayminerals.com
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