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.
May. 23, 2014, 3:19 PM
- The rare sighting of an ocelot will delay the permitting process for Augusta Resource's (AZC +1%) Rosemont copper project, and some analysts think the uncertainty could raise the probability of success for HudBay Minerals' (HBM -1.4%) hostile takeover bid.
- Desjardins analyst Jackie Przybylowski says the news could encourage AZC shareholders to tender to HBM’s bid, noting that HBM had said permitting for Rosemont would take much longer than AZC was planning.
- Laurentian Bank's Christopher Chang thinks Rosemont will get permitted, but AZC shareholders will get increasingly impatient if there are more delays.
- CIBC's Tom Meyer puts less weight in the news, saying further permitting delays are not surprising and are factored into the current share price.
May. 16, 2014, 5:45 PM
- HudBay Minerals (HBM) says it is extending its offer to acquire all outstanding shares of Augusta Resource (AZC) to May 27; the hostile offer had been set to expire today.
- HBM, which owns a ~16% stake in AZC, has offered 0.315 of a HBM share for each AZC share, currently valuing the company at ~$458M, or $3.15/share.
Apr. 30, 2014, 6:54 PM
Apr. 14, 2014, 4:47 PM
- HudBay Minerals (HBM) attempts to strike down Augusta Resources' (AZC) shareholder rights plan, asking British Columbia's securities regulator to cease trade AZC’s poison pill so that its hostile takeover bid can proceed as planned.
- CEO David Garofalo says AZC's board has had more than enough time to study its alternatives after receiving HBM's hostile takeover bid.
- HBM is offering 0.315 of its shares for each AZC share, which gives the bid a value of slightly more than $400M, but AZC shares have traded well above the offer price as investors expect a higher bid.
Mar. 28, 2014, 11:25 AM
- Augusta Resource (AZC +3.2%) says nine parties, including "significant industry players," had expressed interest in the company in response to its strategic review process, as it tries to find a white knight bidder to fight off HudBay Minerals' (HBM +1.8%) hostile takeover bid.
- AZC says it will hold site visits to its Rosemont copper project, which is near construction, over the next few weeks.
- AZC also says it will hold a shareholder meeting May 9 to keep the poison pill put in place last year when HBM started building its stake in AZC.
Mar. 14, 2014, 4:59 PM
- HudBay Minerals (HBM) extends its hostile takeover bid for Augusta Resources (AZC) and drops its condition that shareholders holding at least two-thirds of the stock tender to the offer.
- AZC shareholders now have until 5 pm on April 2 to receive 0.315 of a HBM share for each of their shares.
- HBM says the bid, which AZC has rejected as inadequate, represents a 62% premium to the 20-day volume weighted average prices of the two issues prior to the offer.
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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