Highlights
- Generated EBITDA(1) of $55.5 Million, Operating Cash Flow(1) of $39.8 Million and Net Earnings of $11.7 Million
-
Cash Costs Per Pound of Zinc Sold(1), Net of By-Product Credits, Were
Negative US$0.27 Per Pound and Co-Product Cash Costs(1) of Gold, Zinc
and Copper Were $336 Per Ounce, $0.86 Per Pound and $1.37 Per Pound,
Respectively in the Third Quarter 2010
- Established New US$300 Million Revolving Credit Facility
- Production for All Metals Remains on Track to Meet 2010 Guidance
-
Significant Progress Made on the Lalor Project With Access Ramp More
Than One-Third Complete and Tenders Issued for All Major Long Lead-Time
Items
TORONTO, ONTARIO -- (MARKET WIRE) -- 11/03/10 --
HudBay Minerals Inc. ("HudBay", the "company") (TSX: HBM) (NYSE: HBM) today released its third quarter and year-to-date 2010 financial results. Net earnings were $11.7 million or $0.08 per share in the third quarter of 2010, compared to $20.0 million, or $0.13
per share during the third quarter of 2009. Earnings decreased during
the quarter due primarily to lower volumes of metals sold, as well as
higher tax and exploration expenses.
Sales of copper, gold and silver contained in copper concentrate were
adversely affected by the inability of HudBay's rail service provider to
supply sufficient railcars to transport the company's concentrate
production. At September 30, 2010, HudBay had excess inventory of approximately 5,000 tonnes of copper and 7,800 ounces of gold contained in copper concentrate.
Had those inventories been sold in the third quarter at a copper price of US$3.60 per pound and a gold price of US$1,283
per ounce (being the average realized prices for copper and gold during
the third quarter of 2010), the impact on revenues, earnings before tax
and net earnings per share from the sale is estimated to be an
additional approximately $50 million, $28 million and $0.11 per share, respectively.
(1)EBITDA, operating cash flow before changes in non-cash working
capital, cash costs per pound of zinc sold and co-product cash costs are
considered non-GAAP measures. See the reconciliation of these measures
to GAAP at the end of this release.
HudBay has made arrangements to lease additional rail cars and expects
to sell concentrate in amounts similar to production in the fourth
quarter of 2010. The excess inventory is expected to be drawn down in
the first half of 2011 as additional railcar capacity becomes available.
"Consistent operational results during the quarter enabled us to remain
on track to meet our 2010 production guidance and continue to underpin
HudBay's strong overall performance," said David Garofalo, HudBay's president and chief executive officer. "Our new $300 million revolving credit facility is an important complement to our strong cash position of $852 million at September 30, 2010 as we pursue growth opportunities at various stages of the development pipeline."
Cash costs per pound of zinc sold(1), net of by-product credits, were negative US$0.27 per pound, compared to negative US$0.23
per pound in the third quarter of 2009. Cash costs net of by-product
credits have been restated to exclude corporate costs. Cash costs on a
co-product basis were $336 per ounce of gold, $1.37 per pound of copper and $0.86 per pound of zinc in the third quarter.
The revolving credit facility has an initial term of four years and is
secured by a pledge of assets of HudBay and guarantees provided by the
company's material subsidiaries. The syndicate of lenders, comprising Canadian Imperial Bank of Commerce and Scotia Capital as Joint Lead Arrangers and Joint Book Runners, Royal Bank of Canada, The Toronto-Dominion Bank, Bank of America Merrill Lynch, Credit Suisse, National Bank of Canada and Societe Generale, collectively approved commitments to the company well in excess of the $300 million
requested. No advances are outstanding under the credit facility. As a
result of arranging the new credit facility, restricted cash on deposit
to support letters of credit, which totaled $59.3 million at
September 30, 2010, will be reclassified to cash and cash equivalents.
Lalor Project Update
HudBay continued to make significant progress on the planned 3,000 meter
access ramp at the Lalor project, having advanced 1,154 meters from the
Chisel North Mine as at October 26, 2010.
Ground conditions have been good and water intersections have been minimal since the first quarter of 2010. In September 2010,
the company switched the ventilation system on the ramp from a "push"
system to a "pull" system to assist in the blast clearing of the main
ramp development face. This system will be in place until the ramp
reaches the 810 meter level at the Lalor orebody in early 2012. The
temporary ramp exhaust is currently being raisebored with 172 meters
having been enlarged and 288 meters remaining. This raise will serve as
the exhaust for the entire ramp drive until the permanent exhaust is in
place in 2012. Surface site construction has begun and the access road
is near completion. The surface mine site and surface exhaust sites have
been cleared, and are currently being leveled.
Procurement and tendering is ongoing. The main production hoist and man
hoist have been ordered with the man hoist expected to be delivered in
the first quarter of 2011. Bid evaluation and contract award on the
ventilation shaft and production shaft will be completed in Q4 2010. The
mine camp accommodations have been awarded with site preparations to
begin in November.
HudBay is continuing with the metallurgical testing of the Lalor ores,
focusing on gold optimization, which includes variable testing on the
primary grind, with and without a regrind circuit, as well as
optimization on the reagent used and projected consumption.
The company has also begun a trade-off study on whether to refurbish the existing Snow Lake
concentrator or construct a new concentrator at the mine site. The
trade-off study is expected to be completed in the fourth quarter of
2010.
Total expenditures on the Lalor project were $36 million year-to-date as at September 30, 2010, with total spending of $54 million projected for 2010. HudBay's previous estimate for 2010 capital expenditures at Lalor was $133 million,
based on planned shaft sinkings in the third quarter of 2010. Planned
timing of expenditures from 2010 to subsequent years of the project have
been changed due to the deferral of the shaft sinking to early 2011. No
changes have been made to expected total project costs or project
timelines based on the current scope of the project.
Key Financial Results
----------------------------------------------------------------------------
($000s except per share amounts) Three Months Ended Nine Months Ended
September 30 September 30
--------------------------------------------
2010 2009 2010 2009
----------------------------------------------------------------------------
Revenue 163,367 194,608 595,538 554,049
----------------------------------------------------------------------------
Earnings before tax and non
controlling interest 29,572 32,947 116,499 132,390
----------------------------------------------------------------------------
Net earnings 11,660 19,975 48,492 105,432
----------------------------------------------------------------------------
EBITDA(1)(2) 55,465 59,201 208,495 103,310
----------------------------------------------------------------------------
Operating cash flow(1)(3) 39,825 48,214 139,923 91,051
----------------------------------------------------------------------------
Basic and diluted EPS(4) 0.08 0.13 0.32 0.68
----------------------------------------------------------------------------
Operating cash flow per share(1)(3) 0.27 0.31 0.93 0.59
----------------------------------------------------------------------------
Cash and cash equivalents 851,739 880,292 851,739 880,292
----------------------------------------------------------------------------
Total assets 2,065,596 2,000,776 2,065,596 2,000,776
----------------------------------------------------------------------------
(1) EBITDA, operating cash flow and operating cash flow per share are
considered non-GAAP measures. See the reconciliation of these measures
to GAAP at the end of this release.
(2) EBITDA represents earnings before interest expense, taxes, depreciation
and amortization, gain/loss on derivative instruments, exploration and
interest and other income.
(3) Before changes in non-cash working capital.
(4) Earnings per share.
Production and Sales
Overall, production remains on track to meet our 2010 guidance. Mine
production was 578,372 tonnes of ore, reflecting a 5% increase from
551,329 tonnes for the same quarter in 2009 as additional production
from the reopened Chisel North mine in 2010 was offset by lower
production from the 777 and Trout Lake mines relative to the strong production levels achieved in 2009.
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
Operating Highlights Sep 30 2010 Sep 30 2009 Sep 30 2010 Sep 30 2009
----------------------------------------------------------------------------
Production (HBMS contained
metal in concentrate)(1)
Zinc tonnes 18,091 20,728 58,194 57,484
Copper tonnes 14,913 13,286 38,753 37,182
Gold troy oz. 23,789 25,886 64,801 69,852
Silver troy oz. 205,522 298,777 633,613 756,429
Metal Sold
Zinc - refined(2) tonnes 25,698 29,349 77,741 80,771
Copper tonnes
Cathode & anodes 2,797 15,293 31,745 51,117
Payable metal in
concentrate(3) 6,321 - 6,864 -
Gold troy oz.
Contained in
slimes & anode 6,296 21,900 53,920 74,921
Payable metal in
concentrate(3) 10,789 - 11,781 -
Silver troy oz.
Contained in
slimes & anode 53,695 506,148 768,223 1,711,212
Payable metal in
concentrate(3) 85,044 - 96,264 -
----------------------------------------------------------------------------
(1) Metal reported in concentrate is prior to refining losses or deductions
associated with smelter terms.
(2) Zinc sales include sales to our Zochem facility of 8,080 tonnes in the
third quarter of 2010. In the third quarter, Zochem had sales of 10,668
tonnes of zinc oxide.
(3) Copper concentrate was not sold in 2009 while the smelter was in
operation.
Revenues
Total revenue for the third quarter was $163.4 million, $31.2 million lower than the same quarter last year, due to the following:
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
(in $ millions) Sep 30, 2010 Sep 30,2010
----------------------------------------------------------------------------
Metal prices
Higher zinc prices 8.6 57.4
Higher copper prices 23.2 124.3
Higher gold prices 7.5 19.9
Sales volumes
Lower copper sales volumes (48.1) (93.0)
Lower zinc sales volumes (8.0) (5.2)
Lower gold sales volumes (6.4) (11.3)
Other
Stronger C$ (9.7) (58.9)
Other volume and pricing differences 1.7 8.3
----------------------------------------------------------------------------
Change in revenues (31.2) 41.5
----------------------------------------------------------------------------
Realized Metal Prices(1) and Exchange Rate
----------------------------------------------------------------------------
LME Q3 2010 Average LME YTD Q3 2010 Average
Prices(2) Prices(2)
----------------------------------------------------------------------------
Prices in US$
----------------------------------------------------------------------------
Zinc US$/lb. 0.91 0.96
----------------------------------------------------------------------------
Copper US$/lb. 3.29 3.25
----------------------------------------------------------------------------
Gold US$/troy oz. 1,227 1,177
----------------------------------------------------------------------------
Silver US$/troy oz. 18.96 18.07
----------------------------------------------------------------------------
Prices in C$
----------------------------------------------------------------------------
Zinc C$/lb. 0.95 0.99
----------------------------------------------------------------------------
Copper C$/lb. 3.41 3.37
----------------------------------------------------------------------------
Gold C$/troy oz. 1,275 1,219
----------------------------------------------------------------------------
Silver C$/troy oz. 19.70 18.72
----------------------------------------------------------------------------
Exchange rate US$1 to C$
----------------------------------------------------------------------------
Realized Metal Prices(1) and Exchange Rate
----------------------------------------------------------------------------
HudBay Realized HudBay Realized
Prices(1) Prices(1)
Three Months Ended Nine Months Ended
-----------------------------------------------
Sep 30 2010 Sep 30 2009 Sep 30 2010 Sep 30 2009
----------------------------------------------------------------------------
Prices in US$
----------------------------------------------------------------------------
Zinc US$/lb. 0.96 0.83 1.01 0.70
----------------------------------------------------------------------------
Copper US$/lb. 3.60 2.74 3.32 2.21
----------------------------------------------------------------------------
Gold US$/troy oz. 1,283 955 1,186 917
----------------------------------------------------------------------------
Silver US$/troy oz. 21.06 14.51 17.85 13.43
----------------------------------------------------------------------------
Prices in C$
----------------------------------------------------------------------------
Zinc C$/lb. 1.00 0.91 1.05 0.81
----------------------------------------------------------------------------
Copper C$/lb. 3.75 3.01 3.45 2.57
----------------------------------------------------------------------------
Gold C$/troy oz. 1,336 1,046 1,230 1,083
----------------------------------------------------------------------------
Silver C$/troy oz. 21.93 15.93 18.52 15.80
----------------------------------------------------------------------------
Exchange rate US$1 to C$ 1.04 1.10 1.04 1.17
----------------------------------------------------------------------------
(1) Realized prices are before refining and treatment charges and only on
the sale of finished metal, excluding metal in concentrates.
(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.
Operating Expenses
For the third quarter of 2010, our operating expenses were $92.7 million; $26.5 million lower than the same quarter last year due to the following:
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
(in $ millions) Sep 30, 2010 Sep 30, 2010
----------------------------------------------------------------------------
Decreased volumes of purchased zinc
concentrate (3.0) (5.1)
Decreased volumes of purchased
copper concentrate (12.7) (58.5)
Chisel North operating costs 6.8 10.2
Zochem zinc purchases 4.1 14.5
Lower costs for HMI Nickel 1.6 2.2
Other provisions, primarily related
to Smelter closure 0.2 (3.0)
Smelter and refinery costs (13.2) (16.5)
Changes in domestic inventory (14.0) 4.5
Other operating expenses 3.7 7.7
----------------------------------------------------------------------------
Decrease in operating expenses (26.5) (44.0)
----------------------------------------------------------------------------
Purchased copper concentrate volumes and smelter and refinery direct
costs decreased due to the closure of the smelter. Lower zinc
concentrate purchases were more than offset by Chisel North operating
costs and production. Inventory charges were lower in the third quarter
of 2010 due to the buildup of copper concentrate inventory.
Non-GAAP Measures
Detailed operating expenses, EBITDA, operating cash flow before changes
in non-cash working capital, operating cash flow per share, cash cost
per pound of zinc sold and co-product cash costs per unit sold are
included in this news release because these measures are performance
indicators that we use internally to monitor performance. We use these
measures to assess how well we are performing compared to plan and to
assess the overall effectiveness and efficiency of mining, processing
and refining operations. We believe that the inclusion of these measures
in this news release helps an investor to assess performance "through
the eyes of management" and that certain investors use these measures to
assess our performance. These measures do not have a meaning presented
by Generally Accepted Accounting Principles ("GAAP") and should not be
considered in isolation or as a substitute for
measures prepared in accordance with GAAP. These measures are not
necessarily indicative of operating profit or cash flow from operations
as determined under GAAP. Other companies may calculate these measures
differently.
EBITDA
The following table presents our calculation of EBITDA for the three and nine months ended September 30, 2010 and September 30, 2009.
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
------------------------ ------------------------
($000s) Sep 30 2010 Sep 30 2009 Sep 30 2010 Sep 30 2009
-------------------------------------------------- ------------------------
Earnings before tax and
non-controlling interest 29,572 32,947 116,499 132,390
Adjustments:
Depreciation and
amortization 25,267 28,822 82,618 73,078
Exploration 5,868 983 18,868 3,615
Interest and other income (3,133) (3,329) (6,117) (106,235)
(Gain) loss on derivative
instruments (2,109) (222) (3,373) 462
------------------------ ------------------------
EBITDA 55,465 59,201 208,495 103,310
----------------------------------------------------------------------------
Operating cash flow before changes in non-cash working capital and operating cash flow per share
The following table presents our calculations of operating cash flow
before changes in non-cash working capital and operating cash flow per
share for the three and nine months ended September 30, 2010 and September 30, 2009.
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
------------------------------------------------------
($000s except share
and per share
amounts) Sep 30 2010 Sep 30 2009 Sep 30 2010 Sep 30 2009
----------------------------------------------------------------------------
Cash provided by
operating activities,
per financial
statements 31,933 56,595 190,726 66,562
Adjustments:
Changes in non-cash
working capital 7,892 (8,381) (50,803) 24,489
----------------------------------------------------------------------------
Operating cash flow
before changes in
non-cash working
capital 39,825 48,214 139,923 91,051
Weighted average
shares outstanding 148,949,050 153,443,348 151,114,563 153,432,764
----------------------------------------------------------------------------
Operating cash flow
per share $0.27 $0.31 $0.93 $0.59
----------------------------------------------------------------------------
Cash cost per pound of zinc sold
Our cash cost per pound of zinc sold, net of by-product credits, for the third quarter of 2010 was negative US$0.27
per pound, excluding costs and sales related to Balmat, HMI Nickel and
corporate activities, as calculated in the following table
----------------------------------------------------------------------------
Three Months Ended Nine Months Ended
-------------------------- --------------------------
($000s except as Sep 30 Sep 30 Sep 30 Sep 30
noted) 2010 2009 2010 2009
----------------------------------------------------------------------------
Operating expenses 92,652 119,169 355,805 399,794
General and
administrative
expenses(1) 1,796 2,250 6,120 4,587
------------------------------------------------------
94,448 121,419 361,925 404,381
Exclude amounts
related to Balmat and
HMI Nickel (3,720) (1,959) (13,820) (9,920)
------------------------------------------------------
90,728 119,460 348,105 394,461
Less by-product
credits(2) (106,390) (135,583) (415,632) (409,540)
------------------------------------------------------
Cash cost net of by-
products (15,662) (16,123) (67,527) (15,079)
Exchange rate (US $1
to C$)(3) 1.039 1.097 1.036 1.170
------------------------------------------------------
Cash cost net of by-
products US (15,074) US (14,697) US (65,181) US (12,888)
Zinc sales (000's
lbs.) 56,654 64,703 171,389 176,302
------------------------------------------------------
Cash cost per pound of
zinc sold, net of by-
product credits in US
$/lb. US (0.27) US (0.23) US (0.38) US (0.07)
----------------------------------------------------------------------------
(1) General and administrative expenses relate to HBMS entity only.
(2) By-product credits include revenues from sale of copper, gold, silver,
the value added by converting zinc to zinc oxide, and by-product sales.
(3) Weighted average exchange rate for sales during the period.
Cash costs net of by-product credits have been restated to exclude
corporate activities in order to be better comparable with costs
disclosed by comparable mining companies. For the third quarter of 2010,
our cash cost per pound of zinc sold was negative US$0.27, a net decrease of US$0.04 from the same period in 2009, and for the year-to-date was negative US$0.38, a net decrease of US$0.31
from 2009. The decrease in cost per pound was due primarily to higher
by-product copper, gold and silver credits arising from higher prices.
Our calculation of cash cost per pound of zinc sold is significantly
influenced by by-product metal prices, which may fluctuate going
forward.
Co-product cash costs per unit sold
Commencing in the third quarter of 2010, we introduced co-product cash
costs as a new non GAAP measure. We believe that these costs serve as
meaningful indicators for investors to evaluate our operations. Costs
for 2009 have not been included for comparability because they included
substantial purchased copper concentrate volumes together with the cost
of the smelter and refinery, which were shutdown in 2010.
Whereas cash costs net of by-product credits present the cash costs of a
single metal, assuming that all other metals are by-products of the
given metal, co-product cash costs present a cost of producing each of
our primary metals, copper, zinc and gold, based on an allocation of
costs among the metals. Costs that can be readily associated with a
specific metal are allocated to that metal. Mining and milling costs for
our Trout Lake
and 777 mines are allocated proportionately based on the value of the
contained metals at prevailing metals prices. Operating overhead
expenses and general and administrative expenses (in both cases,
excluding costs not related to our HBMS operations) are generally
allocated equally between zinc and copper with some further cost
allocation to gold. In order to present a cost per finished unit
sold, we also add to these costs third party treatment and refining
costs, which are deducted from revenue in our financial statements.
Zinc oxide production is treated as a by-product of zinc production, so
the costs of our Zochem operation are allocated to zinc operating
expenses and zinc oxide revenues are deducted from total zinc cash
costs. Similarly, silver production is treated as a by-product of gold
production. Other miscellaneous revenues are allocated among zinc,
copper and gold in the same manner as general and administrative costs.
While the impact of fluctuating metals prices is expected to be less
significant on co-product cash costs than it is on by-product cash
costs, changes in relative metals prices may cause our reported cash
costs to vary substantially over time, irrespective of our operational
results. Significant management judgement is also required in
determining how costs should be allocated among metals. Caution should
also be exercised in using co-product cash costs to evaluate the
profitability of a particular metal, as the profitability of our
polymetallic mines is dependent on the production of all of our
principal metals. Our future co-product cash costs may change
significantly from those reported for the three and nine months ended September 30, 2010 as we complete the transition from copper smelting and refining to copper concentrate sales.
Three Months Ended September 30, 2010
----------------------------------------------------------------------------
('000s except as Non-allocated
noted) Copper Zinc Gold costs Total
----------------------------------------------------------------------------
Operating expenses 23,779 57,328 7,825 3,720 92,652
General and
administrative(1) 718 718 359 5,575 7,370
Treatment and
refining costs(2) 3,681 - 920 - 4,601
----------------------------------------------------------
28,178 58,046 9,104 9,295
Zinc oxide and by-
product revenues (641) (9,302) (3,362)
---------------------------------
Co-product costs 27,537 48,744 5,742
Sales volume(3) 20,104 56,655 17,085
---------------------------------
Co-product cash
costs per
unit(3) sold $1.37 $0.86 $336
----------------------------------------------------------------------------
(1) Allocation of general and administrative costs to copper, zinc and gold
production exclude corporate and other non-production related costs.
(2) Treatment and refining costs are deducted from revenue.
(3) Copper and zinc sales volumes denoted in 000's pounds, and gold sales
volumes denoted in troy oz.
Nine Months Ended September 30, 2010
----------------------------------------------------------------------------
('000s except as Non-allocated
noted) Copper Zinc Gold costs Total
----------------------------------------------------------------------------
Operating expenses 119,682 181,297 41,006 13,820 355,805
General and
administrative(1) 2,448 2,448 1,224 12,994 19,114
Treatment and
refining costs(2) 6,305 - 920 - 7,225
----------------------------------------------------------
128,435 183,745 43,150 26,814
Zinc oxide and by-
product revenues (2,647) (28,627) (17,334)
---------------------------------
Co-product costs 125,788 155,118 25,816
Sales volume(3) 85,119 171,391 65,702
---------------------------------
Co-product cash
costs per
unit(3) sold $1.48 $0.91 $393
----------------------------------------------------------------------------
(1) Allocation of general and administrative costs to copper, zinc and gold
production exclude corporate and other non-production related costs.
(2) Treatment and refining costs are deducted from revenue.
(3) Copper and zinc sales volumes denoted in 000's pounds, and gold sales
volumes denoted in troy oz.
Please also see HudBay's consolidated financial statements and related
notes together with Management's Discussion and Analysis of Operations
and Financial Condition for the quarter ended September 30, 2010, which are available under our profile on SEDAR at www.sedar.com and on our website at www.hudbayminerals.com. All amounts are in Canadian dollars unless otherwise noted.
Website Links
HudBay Minerals Inc.:
www.hudbayminerals.com
Management's Discussion and Analysis:
http://media3.marketwire.com/docs/hbmmdaQ310.pdf
Financial Statements:
http://media3.marketwire.com/docs/hbmfsQ310.pdf
Conference Call and Webcast
Date: Thursday, November 4, 2010
Time: 10:00 a.m. ET
Webcast: www.hudbayminerals.com
Dial in: 416-644-3416 or 877-974-0446
Replay: 416-640-1917 or 877-289-8525
Replay Passcode: 4371198#
The conference call replay will be available until midnight (Eastern Time) on November 11, 2010. An archived audio webcast of the call also will be available on HudBay's website.
HudBay Minerals Inc.
HudBay Minerals Inc. (TSX: HBM)(NYSE: HBM) is a Canadian integrated mining company with assets in North and Central America
principally focused on the discovery, production and marketing of
metals. The company's objective is to maximize shareholder value through
efficient operations, organic growth and accretive acquisitions, while
maintaining its financial strength. A member of the S&P/TSX Composite Index and the S&P/TSX Global Mining Index, HudBay is committed to high standards of corporate governance and sustainability.
Forward-Looking Information
This news release contains "forward-looking information" within the
meaning of applicable securities laws. Forward-looking information
includes but is not limited to information concerning the company's
ability to meet its production guidance and realize growth opportunities
and the company's strategies and 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", "understands" or "does not anticipate", or
"believes" or variations of such words and phrases or statements that
certain actions, events or results "will", "may", "could", "would",
"might", or "will be taken", "occur", or "be achieved". Forward-looking
information is based on the views, opinions, intentions 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 anticipated or projected in the forward-looking
information (including the actions of other parties who have agreed to
do certain things and the approval of certain regulatory bodies).
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 or events to vary
materially from results or events anticipated by such forward-looking
information include the ability to develop and operate the Lalor project
on an economic basis, risks associated with the mining industry such as
economic factors (including costs of construction materials, future
commodity prices, currency fluctuations and energy prices), failure of
plant, equipment, processes and transportation services to operate as
anticipated, including new and upgraded facilities at Lalor, dependence
on key personnel, employee relations and availability of equipment and
skilled personnel, environmental risks, government regulation, actual
results of current exploration activities,
possible variations in ore grade, dilution or recovery rates, permitting
timelines, capital expenditures, reclamation activities, land titles,
and social and political developments and other risks of the mining
industry, as well as those risk factors discussed in the company's
Annual Information Form dated March 31, 2010, which risks may cause actual results to differ materially from any forward-looking statement.
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, or to comment on analyses, expectations or
statements made by third parties in respect of HudBay, its financial or
operating results or its securities. The reader is cautioned not to
place undue reliance on forward-looking information.
(F)
Contacts:
HudBay Minerals Inc.
John Vincic
Vice President, Investor Relations and
Corporate Communications
(416) 362 0615
john.vincic@hudbayminerals.com
Source: HudBay Minerals Inc.
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