Yesterday, 11:29 AM
- Rio Tinto (RIO +1.3%) owns more than half of the shares of Turquoise Hill Resources (TRQ -1.7%), and likely will buy out the shares it does not already own in the next 12-18 months, CIBC analyst Tom Meyer predicts.
- Rio will make its move once key risks from the Oyu Tolgoi copper-gold project in Mongolia are removed, the analyst says, such as financing, a cost update on Oyu Tolgoi’s underground development, and next year’s Mongolian election.
- But Meyer maintains an Underperform rating and $4 price target on TRQ in a relative valuation call, saying higher-cost, higher-leveraged copper plays such as First Quantum Minerals (OTCPK:FQVLF) and HudBay Minerals (NYSE:HBM) offer more upside if commodity prices go up in the short term.
Wed, Jul. 29, 5:08 PM
Wed, Jul. 8, 6:17 PM
- BHP Billiton (NYSE:BHP), Teck Resources (NYSE:TCK), HudBay Minerals (NYSE:HBM) and China Molybdenum reportedly are among the companies that submitted final bids for Barrick Gold’s (NYSE:ABX) Zaldivar copper mine in Chile.
- A final decision on the mine, valued at more than $2B, is expected by the first week of August, Bloomberg reports, which adds that some of the bidders are interested in the whole asset even though ABX is seeking a buyer for only 50%.
- Zaldivar produced 222M lbs. of copper in 2014, and contained proven and probable copper reserves of 5.56B lbs. at year-end 2014.
Thu, Jun. 18, 8:59 AM
- Former Xstrata boss Mick Davis' X2 Resources is out of the race for a stake of up to 50% of Barrick Gold's (NYSE:ABX) Zaldivar copper mine in Chile after it was outbid in the first round of the sale process, Reuters reports.
- Chilean copper miner Antofagasta (OTC:ANFGF) is said to be interested in Zaldivar, but it is not clear if it would be a second round bidder; others in the running likely include Glencore (OTCPK:GLCNF, OTCPK:GLNCY); Teck Resources (NYSE:TCK), possibly backed by a Chinese partner; HudBay Minerals (NYSE:HBM), also with a partner; and an unnamed Chinese miner,
- Analysts have put a price tag of ~$1B on a 50% stake in the mine, which ABX put up for sale in April as it strives to cut $3B off its debt pile by year's end.
Thu, May 7, 5:47 PM
Mon, May 4, 11:26 AM
- Hudbay Minerals (HBM -1.6%) says 180 unionized workers are on strike at its Manitoba operations, representing ~12% of its workforce in the province, adding that it has a contingency plans in place and expects operations to continue.
- HBM has four producing mines in Manitoba, including the Snow Lake project it bought last month, plus processing facilities.
- Reports say it is the first time the Manitoba mine workers have gone on strike in 40 years.
Fri, Apr. 10, 4:58 PM
- Credit Suisse sees potential for a near-term rally in gold prices, and expects copper prices to do well this year.
- The firm upgrades First Quantum Minerals (OTCPK:FQVLF) to Outperform from Neutral on positive copper and stock re-rating catalysts in H2 2015, and likes HudBay Minerals (NYSE:HBM) and Tahoe Resources (NYSE:TAHO); it downgrades Teck Resources (NYSE:TCK) to Neutral from Outperform based on a weaker outlook for coking coal and valuation.
- Among gold miners, CS prefers Agnico Eagle Mines (NYSE:AEM) for its lower cost assets, operational consistency, strong free cash flow and organic exploration and growth opportunities, and Goldcorp (NYSE:GG) for its growth and relatively strong balance sheet; Yamana Gold (NYSE:AUY) and Detour Gold (OTCPK:DRGDF) provide leverage to a gold price rally.
Tue, Mar. 24, 12:58 PM
- Teck Resources (TCK -2.1%) should buy HudBay Minerals (HBM +0.3%), National Bank of Canada analyst Shane Nagle says, believing that HBM would give TCK greater exposure to copper and zinc, and would get some copper growth opportunities which it currently lacks because it has not approved its QB2 and Relincho projects.
- "The pro forma company would have an improved growth profile, stronger balance sheet, free cash flow generation and more compelling valuation," the analyst says.
- TCK could raise part of the funds needed for a deal by selling a 20% silver stream from its Trail facility in British Columbia, Nagle suggests.
Thu, Feb. 19, 11:07 PM
Fri, Jan. 16, 10:10 AM
- Hudbay Minerals (HBM +3.2%) says it plans a 2015 capital spending budget of C$425M, down ~60% from 2014 levels.
- HBM also says total 2014 copper production of ~37.6K tons was below guidance due to “nominal” copper concentrate output at its Constancia mine in Peru in late 2014; production at the mine started in Q4 and commercial production is expected in Q2 of 2015.
- Sees 2015 copper production of 140K-175K tons, zinc production of 95K-120K tons, and precious metals production of 135K-170K oz.
Wed, Jan. 14, 12:49 PM
- As TD Securities analysts test free cash flow for Canadian copper producers at US$2.50/lb. for copper, every company in their coverage area except Copper Mountain Mining (OTCPK:CPPMF -13.5%) is found to have negative free cash flow.
- First Quantum Minerals (OTCPK:FQVLF -11.4%) might have the biggest problem, the TD analysts say, calculating that its free cash flow is negative US$1.2B at $2.50 copper due to a royalty hike in Zambia and major spending commitments at the Cobre Panama project.
- The favorite names in a low price environment are Lundin Mining (OTCPK:LUNMF -12.7%), HudBay Minerals (HBM -13.7%) and Nevsun Resources (NSU -4.7%), thanks to their solid balance sheets and low capital spending requirements in 2015.
Wed, Jan. 14, 12:43 PM
Oct. 29, 2014, 6:14 PM
Jul. 30, 2014, 5:43 PM
Jun. 23, 2014, 8:36 AM
- Augusta Resources (AZC) +5.7% premarket after accepting a revised takeover offer from HudBay Minerals (HBM).
- The revised offer is worth ~C$555M, or $3.56/share; HBM is offering 0.315 of its shares for each AZC share, the same as its initial hostile bid, but it is now adding 0.17 of a warrant for each AZC share to facilitate a friendly deal.
- The deal gives HBM the Rosemont project in Arizona, one of the world’s most promising undeveloped copper deposits, with 7B lbs. of copper reserves and resources.
Jun. 9, 2014, 6:24 PM
- HudBay Minerals (HBM) extends its hostile offer for Augusta Resource (AZC) until June 20, but makes no new changes to the terms of its proposal.
- It's the latest extension by HBM since the B.C. Securities Commission decided to allow AZC's shareholder rights plan to remain in place unless HBM extends its offer to July 16.
- HBM, which owns ~16% of AZC, has offered 0.315 of a HBM share for each AZC share.
HBM vs. ETF Alternatives
HudBay Minerals Inc is an integrated mining company. With assets in North and South America, it produces copper concentrate and zinc metal and is focused on the discovery, production and marketing of base and precious metals.
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