Record Annual Revenues and Continuing Solid Cash Flows
WINNIPEG, MANITOBA, Mar 17, 2008 (Marketwire via COMTEX News Network) --
2007 Highlights
- Revenues grow 12% to a record $1,269.8 million
- Operating cash flow(1) of $477.9 million increases cash position to $757.6 million at year end
- Net earnings of $227.1 million or $1.79 per share
- Cash cost per pound of zinc sold, net of by-product credits "negative" US$0.16
- Record-setting 2007 zinc and copper metal production
- Lalor Lake zinc discovery - conceptual estimate of a potential of 18-20 million tonnes at 7.7% to 8.8% zinc(2)
- Share buy back program launched to repurchase up to 9.9 million common shares
- Shareholder's equity increases to $1.2 billion
HudBay
Minerals Inc. (TSX:HBM) (HudBay or the Company) today released its
fourth quarter and annual 2007 financial results highlighted by record
annual revenues of more than $1.2 billion and annual operating cash flow
of $477.9 million. Net
earnings in 2007 were $227.1 million compared with $564.0 million in
2006. Increased production and higher realized US dollar metal prices in
2007 were more than offset by the effect of the significant
appreciation in the Canadian dollar versus the U.S. dollar, increased
operating costs, asset impairment charges and higher year over year tax
expense, all of which contributed to lower year over year net earnings.
FINANCIAL HIGHLIGHTS
----------------------------------------------------------------------------
Three months ended Twelve months ended
($000's except per Dec. 31 Dec. 31
share amounts) ----------------------------------------------
2007 2006 2007 2006
----------------------------------------------------------------------------
Revenue 242,596 313,110 1,269,841 1,129,003
----------------------------------------------------------------------------
Earnings before tax 31,722 134,636 365,456 442,451
----------------------------------------------------------------------------
Net Earnings 28,459 165,788 227,139 563,991
----------------------------------------------------------------------------
Basic EPS(3) 0.22 1.32 1.79 5.32
----------------------------------------------------------------------------
EBITDA(4) 72,014 153,558 483,066 513,428
----------------------------------------------------------------------------
Operating cash flow(1) 83,809 148,508 477,890 490,797
----------------------------------------------------------------------------
Cash and cash equivalents(5) 757,574 385,864 757,574 385,864
----------------------------------------------------------------------------
Total Assets(5) 1,551,627 1,318,515 1,551,627 1,318,515
----------------------------------------------------------------------------
(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, asset impairment losses and other.
(5) At December 31st.
"Our operations delivered solid financial and operating performance
again in 2007," said Allen Palmiere, President & CEO. "HudBay has
tremendous assets that include mines, exploration properties and people.
We are well positioned to leverage these strengths to take advantage of
strong metal prices and generate incremental long term value going
forward."
OPERATING HIGHLIGHTS
---------------------------------------------------------------------------
Three months ended Twelve months ended
Dec. 31 Dec. 31
---------------------------------------------------------------------------
Production 2007 2006 2007 2006
---------------------------------------------------------------------------
Zinc(6) tonnes 31,383 31,959 126,269 123,253
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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
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Metal Sold(7)
---------------------------------------------------------------------------
Zinc(8) tonnes 34,313 32,386 132,994 114,646
---------------------------------------------------------------------------
Copper tonnes 18,558 19,901 87,003 79,395
---------------------------------------------------------------------------
Gold troy oz. 18,680 22,112 96,847 82,921
---------------------------------------------------------------------------
Silver troy oz. 247,077 295,545 1,270,791 1,195,142
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Financial and Operating Results
The bracketed values that follow denote the comparative figures for the respective periods in 2006.
Earnings
Net
earnings were $28.5 million in the fourth quarter, or $0.22 per share
($165.8 million, or $1.32 per share). The lower net earnings are
primarily attributable to:
- a negative effect from the appreciating Canadian dollar, estimated at $43.1 million;
-
higher tax expense, which increased by $34.4 million largely due to
future tax expense recognized as the Company draws down its future tax
asset;
- lower revenues due to a lower average realized US$ zinc price, net of changes in prices and volumes of HudBay's other metals;
- asset impairment charges of $20.2 million;
- higher depreciation and amortization expense, which increased by $8.4 million;
- the addition of Balmat
operating costs estimated at $7.8 million;
- higher exploration expense, which increased by $2.9 million; and
- lower profit sharing expenses, which decreased operating expenses by $4.9 million.
For
all of 2007 net earnings were $227.1 million or $1.79 per share ($564.0
million or $5.32 per share). The lower net earnings are primarily
attributable to:
- higher tax expense, which increased by $259.9
million largely due to future tax expense recognized as the Company
draws down its future tax asset;
- a negative effect from the appreciating Canadian dollar, estimated at $77.5 million;
-
the addition of Balmat operating costs estimated at $35.9 million and
increased mining and processing costs at other operations of $19.4
million;
- higher depreciation and amortization expense, which increased by $29.8 million;
- higher exploration
expense, which increased by $20.8 million; and
- asset impairment charges of $20.2 million.
Partly offsetting these negative impacts were higher revenues from increased year over year sales volumes and metal prices.
(6) Production includes Balmat payable metal in concentrate shipped, including pre-commercial production in 2006.
(7) 2006 excludes inventory changes prior to the contractual change with Considar Metal Marketing Inc.
(8) Zinc sales include sales to Zochem and the Balmat payable metal in concentrate shipped (including to HBMS).
Revenue
Total
revenue for Q4 2007 was $242.6 million ($313.1 million). Lower revenues
in the fourth quarter of 2007 reflect: a lower average realized zinc
price of $1.29 US$/lb in Q4 2007 compared with $1.93 US$/lb in Q4 2006;
the impact from the appreciation in the Canadian dollar versus the US
dollar
estimated at negative $41.8 million; and lower copper, gold and silver
sales volumes. During the fourth quarter of 2007, finished metal
inventories of zinc decreased by 2,800 tonnes and copper inventory
increased by 3,500 tonnes. These negative impacts on revenue were partly
offset by higher zinc sales volumes and higher realized US dollar
prices for copper, gold and silver.
Total revenue for 2007 was
$1,269.8 million ($1,129.0 million). Revenues were higher in 2007 due to
higher sales volumes for all metals produced by HudBay, together with
higher average US$ realized prices for each of the metals HudBay
produces. These increases were partly offset by the impact from the
appreciation of the Canadian dollar versus the US dollar estimated at
negative $63.7 million.
Realized Metal Prices(1) and Exchange Rate
----------------------------------------------------------------------------
HudBay
Realized HudBay
Prices(1) Realized
Three Months Prices(1)
Ended Year Ended
---------------- ---------------
Q4 2007 ---------------- 2007 ---------------
Average Dec 31 Dec 31 Average Dec 31 Dec 31
Prices(2) 2007 2006 Prices(2) 2007 2006
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Prices in US$
Zinc US$/lb. 1.19 1.29 1.93 1.47 1.56 1.53
Copper US$/lb. 3.26 3.23 3.16 3.23 3.27 3.15
Gold US$/troy oz. 788 758 603 697 682 603
Silver US$/troy oz. 14.22 13.84 11.59 13.39 13.39 11.13
Prices in C$
Zinc C$/lb. 1.16 1.26 2.20 1.58 1.68 1.73
Copper C$/lb. 3.17 3.12 3.60 3.47 3.51 3.58
Gold C$/troy oz. 766 739 687 749 733 684
Silver C$/troy oz. 13.82 13.53 13.21 14.41 14.42 12.62
----------------------------------------------------------------------------
C$/US$ exchange rate 0.97 0.97 1.14 1.08 1.08 1.13
----------------------------------------------------------------------------
(1) Realized prices are before refining and treatment charges and only on
the sale of finished metal.
(2) London Metals Exchange ("LME") average for zinc, copper and gold prices,
London Spot US equivalent for silver prices. HudBay's copper sales
contracts are primarily based on Comex copper prices.
Expenses
Operating expenses -- for Q4 2007 were $160.1 million
($163.7 million) representing a decrease of approximately 2% compared
with Q4 2006. The Q4 2007 operating expenses include higher production
at the Balmat operation and higher year over year costs associated with
net profits interest agreement, reclamation initiatives and consumable
and contractor costs. These increases were more than offset by the
effect of the appreciation of the Canadian dollar versus the US dollar,
which favourably affected US dollar denominated operating costs, and as
well by lower year over year profit sharing expense.
Operating
expenses for 2007 were $730.7 million ($598.1 million). Higher operating
expenses in 2007 are primarily attributable to significant increases in
sales volumes and higher costs of production. Sales of zinc metal were
16.0% higher and sales of copper metal
were 10.0% higher. Increased costs of production are from higher volumes
for purchased copper and zinc concentrates, commercial production at
Balmat and generally higher costs for mining and processing operations.
Costs associated with net profits interest agreements and reclamation
initiatives were also higher in 2007 compared with 2006. Partly
offsetting these increases was the effect of the appreciation of the
Canadian dollar versus the US dollar, which favourably affected HudBay's
US dollar denominated operating costs, as well as lower year over year
profit sharing expense.
HudBay's Q4 2007 cash cost per pound of
zinc sold, net of by-product credits, was US$0.17 (negative US$0.21) and
for 2007 was negative US$0.16 (negative US$0.43). A reconciliation of
this non-GAAP measure is provided in the Company's 2007 MD&A.
Depreciation
and amortization -- in Q4 2007 was $25.6
million and $94.7 million for all of 2007 ($17.2 million and $64.9
million). The year over year increases reflect the addition of the
Balmat operation, which reached commercial production on January 1,
2007, increases in the Trout Lake mine amortization rate, higher
production tonnage at the 777 mine, and higher smelter depreciation.
Foreign
exchange losses -- The Canadian dollar value of the Company's US dollar
denominated operating accounts, which include certain cash, accounts
receivable, accounts payable and derivatives, declined during the fourth
quarter due to appreciation of the Canadian dollar relative to the US
dollar. For the fourth quarter ended December 31, 2007, movement in
foreign exchange rates resulted in a loss of $2.6 million. ($12.9
million gain). For 2007, the appreciation of the Canadian dollar
resulted in a foreign exchange loss of $22.6 million ($11.1
million gain).
Exploration Expense
Total exploration
expenditures for 2007 including both expense and capital totaled $41.3
million, up significantly from 2006 as HudBay continued to advance its
aggressive exploration program in support of new discoveries and mine
extensions. Exploration expense in Q4 2007 was $6.2 million ($3.3
million). For all of 2007, exploration expense was $33.1 million ($12.3
million). Through these expenditures, the Company successfully expanded
its in-mine reserves and resources, discovered the Lalor Lake potential
zinc deposit and completed additional exploration work in support of
ongoing exploration in future years.
Asset Impairment Losses
HudBay's
Balmat operation achieved commercial production on January 1, 2007 and
during the year produced 22,068 tonnes of zinc metal in concentrate.
Balmat's performance in 2007 did not meet
HudBay's feasibility study expectations. As such, and in accordance with
accounting policies, the Company completed an asset impairment test,
resulting in a Q4 2007 non-cash charge to reduce the carrying value of
the Balmat assets by $15.1 million. The Company is currently in the
process of optimizing the Balmat operation. An impairment loss of $5.1
million was also recognized associated with investments in listed
shares.
Tax Expense
Tax expense for all of 2007 was $138.3
million compared with a net tax benefit of $121.5 million in 2006. The
2007 tax expense is comprised of $104.5 million of income tax expense
($122.3 million benefit) and $33.8 million of mining tax expense ($0.8
million). Importantly, the income tax portion for 2007 was largely a
non-cash expense due to the draw-down of the Company's tax asset, which
was recognized primarily in 2006.
CORPORATE
HIGHLIGHTS
HudBay Continues to Advance Growth Strategy
2008
Exploration Budget set at $42.8 Million - In 2008, for the second year
in a row, HudBay is advancing one of the most aggressive exploration
programs in Canada with a budget of $43 million. The program follows
HudBay's 2007 $41.3 million exploration program that discovered the
Lalor Lake deposit. Exploration objectives for 2008 include seeking to
identify new deposits, increase the Company's in-mine reserves and
resources and, advance the Lalor Lake deposit.
Updated Reserves
and Resources Announced - On February 12, 2008, HudBay announced its
January 1, 2008 reserves and resources. The Company's updated in-mine
reserves and resources, which included 21.4 million tonnes of reserves
and 3.5 million tonnes of resources, largely replaced the ore mined by
the Company through 2007. In addition, HudBay's
predevelopment properties include 7.5 million tonnes of indicated
resources and 31.5 million tonnes of inferred resources.
Positive
Results at Lalor Lake - On March 3, 2008 HudBay announced additional
results from its diamond drill program at the Lalor Lake mineral
property in the Flin Flon Greenstone Belt. As previously announced,
Lalor Lake indicates a conceptual estimate of a potential of 18 to 20
million tonnes at 7.7% to 8.8% zinc(9). The assays announced on March 3,
2008 indicate the potential for significant precious metals in the
deposit. In addition, certain of the drill hole results have some higher
grades of copper. HudBay plans to continue drilling at Lalor Lake with
five rigs to define the extent and to improve confidence in the
interpretation to produce a National Instrument 43-101 (NI 43-101)
compliant resource estimate, which is expected to be completed near the
end of the first half of 2008.
(9) 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.
Solid Production Outlook for 2008
In 2007, HudBay
delivered increased total metal production with growth in zinc, copper,
silver and gold. For 2008 the Company expects growth in zinc metal
production, with gold and silver production forecast to be similar to
2007. Copper metal production from HudBay's own mines is also expected
to be similar to 2007 levels, with somewhat lower copper metal
production from purchased copper concentrates.
Normal Course
Issuer Bid Launched
In December 2007, HudBay launched a normal
course issuer bid through the facilities of the Toronto Stock Exchange
(the "TSX") to purchase, through December 16, 2008, up to 9,946,093 of
its common shares, representing approximately 9.5% of its public float
as of December 11, 2007. HudBay believes the share buy back program
reflects an effective means to return a portion of the Company's cash to
shareholders and that the purchase of common shares will contribute to
enhancing shareholder value. A total of 941,300 shares were purchased to
January 14, 2008 for approximately $17.2 million.
HudBay Celebrates 80 Years of Mining Success
On
January 21, 2008, HudBay marked 80 years of success in Manitoba by
announcing a $1 million contribution to the Canadian Museum for Human
Rights. The contribution was made in recognition of the Company's
employees - past
and present - who have been vital to HudBay's success. The Museum is
poised to be Canada's first federal museum devoted to human rights, and
the first national museum outside the national capital area. Located in
Winnipeg, it is envisioned to be the largest human rights centre in the
world, with a special focus on equipping and educating young people to
become human rights leaders and advocates.
Health, Safety, Environment and Product Quality
HudBay's operations, including contractors, recorded a Lost Time
Accident (LTA) frequency rate, per 200,000 hours worked, of 1.4 for Q4
2007, compared to 0.8 from the same quarter in 2006. The full year 2007
LTA frequency rate was unchanged from 2006 at 1.0. All operations now
have management systems certified to both OHSAS 18001 for occupational
health and safety and ISO 14001 for the environment. The White Pine
Copper Refinery
received certification on schedule in October of 2007. In addition, the
production and supply of HBMS' final products are registered to the ISO
9001 quality standard. There were no significant environmental
non-compliances during the year.
For further information, please
see attached hereto selected financial information for the periods ended
December 31, 2007 and 2006. Please also see HudBay's consolidated
financial statements together with Management's Discussion and Analysis
of Operations and Financial Condition for the year ended December 31,
2007. A copy of HudBay's consolidated financial statements for the years
ended December 31, 2007 and December 31, 2006 as well as its MD&A
for the year ended December 31, 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
HudBay's future production, Balmat operations, the share buyback
program and its possible impact on shareholder value, exploration
program and planned expenditures, possible results with respect to Lalor
Lake 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, factors affecting stock market performance,
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, 2007, 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-F)
To view the Management's Discussion and Analysis, please click the following link:
http://media3.marketwire.com/docs/hbmmdaQ407.pdf
To view the Financial Statements, please click the following link:
http://media3.marketwire.com/docs/hbmifsQ407.pdf
HudBay Minerals Inc.
Consolidated Statements of Earnings
Unaudited
(In thousands of Canadian dollars, except share and per share amounts)
Three months ended Year ended
December 31 December 31
--------------------------------------------------------------------------
2007 2006 2007 2006
--------------------------------------------------------------------------
Revenue $ 242,596 $ 313,110 $1,269,841 $ 1,129,003
--------------------------------------------------------------------------
Expenses:
Operating 160,079 163,691 730,748 598,053
Depreciation and
amortization 25,610 17,185 94,697 64,928
General and
administrative 5,041 7,153 18,188 19,756
Stock-based
compensation 1,969 906 11,979 6,201
Accretion of asset
retirement obligations 915 737 3,282 2,692
Foreign exchange loss 2,578 (12,935) 22,578 (11,127)
--------------------------------------------------------------------------
196,192 176,737 881,472 680,503
--------------------------------------------------------------------------
Operating earnings 46,404 136,373 388,369 448,500
Exploration (6,223) (3,345) (33,067) (12,311)
Interest and
other income 8,867 8,413 35,238 17,450
Gain (loss) on
derivative instruments 3,120 4,269 (3,515) 22,558
Interest expense (274) (1,259) (1,378) (10,971)
Asset impairment
losses (20,172) - (20,172) -
Other - (9,815) (19) (22,775)
--------------------------------------------------------------------------
Earnings before tax 31,722 134,636 365,456 442,451
Tax expense (benefit) 3,263 (31,152) 138,317 (121,540)
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Net earnings for
the period $ 28,459 $ 165,788 $ 227,139 $ 563,991
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Earnings per share:
Basic $ 0.22 $ 1.32 $ 1.79 $ 5.32
Diluted $ 0.22 $ 1.29 $ 1.77 $ 4.69
Weighted average
number of common
shares outstanding
Basic 127,310,761 125,243,369 126,847,106 105,979,721
Diluted 128,627,914 128,054,512 128,507,554 120,334,201
HUDBAY MINERALS INC.
Consolidated Balance Sheets
(In thousands of Canadian dollars)
Unaudited
Years ended December 31, 2007 and 2006
---------------------------------------------------------------------------
2007 2006
---------------------------------------------------------------------------
Assets:
Current assets:
Cash and cash equivalents $ 757,574 $ 385,864
Accounts receivable 71,511 132,275
Inventories 183,739 163,842
Prepaid expenses 7,646 7,288
Current portion of fair value of derivatives 7,635 2,579
Future income and mining tax assets 43,809 154,063
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1,071,914 845,911
Property, plant and equipment 450,334 444,044
Other assets 29,379 28,560
---------------------------------------------------------------------------
$1,551,627 $ 1,318,515
---------------------------------------------------------------------------
Liabilities and Shareholders' Equity:
Current liabilities:
Accounts payable and accrued liabilities $ 142,994 $ 139,922
Taxes payable 6,409 30,217
Current portion of other liabilities 41,605 28,087
---------------------------------------------------------------------------
191,008 198,226
Long-term debt 3,208 10,214
Pension obligations 38,846 41,675
Other employee future benefits 70,153 65,083
Asset retirement obligations 35,046 33,548
Obligations under capital leases 1,611 4,979
Future income tax liabilities 718 582
Fair value of derivatives 19,804 -
---------------------------------------------------------------------------
$ 360,394 $ 354,307
---------------------------------------------------------------------------
Shareholders' equity:
Share capital:
Common shares 311,143 308,441
Warrants 1 3
Contributed surplus 16,633 13,098
Cumulative translation adjustment - (57)
Retained earnings 868,857 642,723
Accumulated other comprehensive income (loss) (5,401) -
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1,191,233 964,208
---------------------------------------------------------------------------
$1,551,627 $ 1,318,515
---------------------------------------------------------------------------
HudBay Minerals Inc.
Consolidated Statements of Cash Flows
Unaudited
(In thousands of Canadian dollars)
Three months ended Year ended
December 31 December 31
---------------------------------------------------------------------------
2007 2006 2007 2006
---------------------------------------------------------------------------
Cash provided by (used in):
Operating activities:
Net earnings for the period $ 28,459 $ 165,788 $ 227,139 $ 563,991
Items not affecting cash:
Depreciation and amortization 25,610 17,185 94,697 64,928
Stock-based compensation 1,969 906 11,979 6,201
Accretion expense on asset
retirement obligations 915 737 3,282 2,692
Foreign exchange (gain) loss (6,906) (6,460) 1,528 (5,393)
Change in fair value
of derivatives 13,155 4,789 16,643 3,114
Asset impairment losses 20,172 - 20,172 -
Future tax expense (benefit) (275) (41,561) 106,140 (151,588)
Other 710 7,124 (3,690) 6,852
---------------------------------------------------------------------------
83,809 148,508 477,890 490,797
Change in non-cash
working capital 9,156 (4,083) 20,283 (66,871)
---------------------------------------------------------------------------
92,965 144,425 498,173 423,926
---------------------------------------------------------------------------
Financing activities:
Repayment of senior
secured notes - (48,496) - (173,142)
Repayment of loans payable - - (4,000) (4,000)
Repayment of obligations under
capital leases (1,042) (976) (4,030) (3,825)
Repurchase of common shares (6,184) - (6,184) -
Issuance of common shares, net
of cost (10) 133 (10) 16,771
Proceeds on exercise
of warrants - 1,640 10 111,368
Proceeds on exercise of
stock options 331 3,481 7,690 8,306
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(6,905) (44,218) (6,524) (44,522)
---------------------------------------------------------------------------
Investing activities:
Additions to property, plant
and equipment (37,856) (26,367) (116,938) (119,250)
Purchase of investments (488) (6,823) (888) (6,823)
Additions to environmental
deposits - (46) - 16
Sale of ScoZinc - - - 7,412
Acquisition of White Pine
Copper Refinery, Inc.,
net of cash acquired - - - (17,041)
---------------------------------------------------------------------------
(38,344) (33,236) (117,826) (135,686)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
Effect of exchange rate changes
on cash and cash equivalents 6,975 7,882 (2,113) 486
---------------------------------------------------------------------------
Change in cash and
cash equivalents 54,691 74,853 371,710 244,204
Cash and cash equivalents,
beginning of period 702,883 311,011 385,864 141,660
---------------------------------------------------------------------------
Cash and cash equivalents, end
of period $757,574 $385,864 $757,574 $385,864
---------------------------------------------------------------------------
HudBay Minerals Inc.
Consolidated Statements of Retained Earnings
Unaudited
(In thousands of Canadian dollars)
Three months ended Year ended
December 31 December 31
---------------------------------------------------------------------------
2007 2006 2007 2006
---------------------------------------------------------------------------
Retained earnings, beginning
of period $ 840,398 $ 476,935 $ 642,723 $ 78,732
Net earnings for the period 28,459 165,788 227,139 563,991
Transition adjustment -
financial instruments - - (1,005) -
---------------------------------------------------------------------------
Retained earnings, end
of period $ 868,857 $ 642,723 $ 868,857 $ 642,723
---------------------------------------------------------------------------
Consolidated Statements of Comprehensive Income
Unaudited
(In thousands of Canadian dollars)
Three months ended Year ended
December 31 December 31
2007 2006 2007 2006
---------------------------------------------------------------------------
Net earnings for the period $ 28,459 $ 165,788 $ 227,139 $ 563,991
Other comprehensive income
(loss), net of tax 17,313 - (5,812) -
---------------------------------------------------------------------------
Comprehensive income,
end of period $ 45,772 $ 165,788 $ 221,327 $ 563,991
---------------------------------------------------------------------------
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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