TORONTO, ONTARIO, Feb 3, 2010 (Marketwire via COMTEX News Network) --
HudBay Minerals Inc. (TSX:HBM) ("HudBay") (the "Company") today
announced its 2009 production results and its outlook for 2010.
"In
2009, we were pleased with our production results, which were in line
with the guidance we provided," said W. Warren Holmes, executive vice
chairman and interim CEO. "With the restart of operations at our Chisel
North mine offsetting the anticipated decline in production as we near
the end of mine life at Trout Lake, we expect another year of solid
results in 2010."
HudBay also announced today that sustaining
capital expenditures in 2010 are expected to return to more normal
levels as compared to 2009. In 2009, in response to weak metal prices,
HudBay substantially reduced its capital expenditure budget while
ensuring that the production capacity of its existing assets was
sustained.
HudBay's capital program in 2010 is expected to be
approximately $207.9 million, consisting of sustaining capital of $101.1
million, expenditures associated with the preparations for future sale
of concentrates of $28.0 million, and growth capital of $65.2 million
for the Lalor Project and an aggregate of $13.7 million for the Back
Forty and Fenix Projects. The growth capital amounts noted here may
change materially if project plans change. This capital program will
support ongoing strong levels of production from the Company's mines and
processing facilities.
The Company also announced an increase in
exploration expenditures for 2010 to approximately $41.8 million, with
approximately $13.5 million of that total to be capitalized. In 2009,
HudBay invested approximately $30.8 million in exploration, including
approximately $23.2 million in capitalized costs, most of which related
to the Lalor Project.
"Historically we have
seen a correlation between higher exploration spending and our rate of
discovery of new mines, so we are very excited about our exploration
program for this year," said Mr. Holmes.
2009 Production and 2010 Outlook
Domestic Mine and Mill Production (Contained Metal in Concentrate)
------------------------------------------------------------------------
Year ended Dec. 31, 2009 2010 Forecast
------------------------------------------------------------------------
Zinc (tonnes) 78,722 75,000 - 90,000
------------------------------------------------------------------------
Copper (tonnes) 48,397 45,000 - 55,000
------------------------------------------------------------------------
Gold (oz) 92,201 85,000 - 100,000
------------------------------------------------------------------------
Silver (oz) 1,004,624 800,000 - 900,000
------------------------------------------------------------------------
Unlike the Company's guidance from 2009 and prior years, which
was based on metal produced from the refinery and smelter from both
domestic and third party concentrates, the Company's 2010 guidance is
based on metal contained in concentrates produced from the Company's
concentrators. This change is due to the pending closure of the Flin
Flon copper smelter and the Company's emphasis on domestic production
rather than a combination of domestic and purchased metal.
In
addition to its own concentrates, HudBay expects to process zinc
concentrates purchased from others which would contribute to zinc
finished metal production. However, the Company does not plan to process
any purchased copper concentrates as the smelter closure is planned for
mid-2010.
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 concerning HudBay's
estimated future production, expenditures and outlook in 2010 as well as
future prospects. Generally, forward-looking information 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
statements that certain actions, events or results "may", "could",
"would", "might", or "will be taken", "occur", or "be achieved".
Forward-looking information is based on the opinions and estimates of
management at the date the information is made, and is based on a number
of assumptions and subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in the forward-looking information. Many
of these assumptions are based on factors and events that are not
within the control of HudBay and there is no assurance they will prove
to be correct.
Factors that could cause actual results to vary
materially from results anticipated by such forward-looking information
include changes in market conditions, variations in ore grade or
recovery rates, risks relating to international operations, fluctuating
metal prices and currency exchange rates, economic factors, government
regulation and approvals, environmental and reclamation risks, costs,
timing and amount of future production, capital expenditures and
requirements for additional capital, changes in project parameters, the
possibility of project cost overruns or unanticipated costs and
expenses, permitting timelines, labour disputes and the availability of
skilled labour, results of exploration and other risks of the mining
industry, failure of plant, equipment or processes to operate as
anticipated, as well as those risk factors discussed in the Annual
Information Form for the year ended December 31, 2008 for HudBay
Minerals Inc. available at www.sedar.com.
Although HudBay has attempted to identify important factors that could
cause actual actions, events or results to differ materially from those
described in forward-looking information, there may be other factors
that cause actions, events or results not to be anticipated, estimated
or intended. There can be no assurance that forward-looking information
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in
such information. HudBay undertakes no obligation to
update forward-looking information if circumstances or management's
estimates or opinions should change except as required by applicable
securities laws. The reader is cautioned not to place undue reliance on
forward-looking information.
(HBM-G)
SOURCE: HudBay Minerals Inc.
HudBay Minerals Inc.
John Vincic, Vice President,
Investor Relations and Corporate Communications
(416) 362 0615
john.vincic@hudbayminerals.com
www.hudbayminerals.com
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