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
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.
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.
Feb. 28, 2014, 11:59 AM
- HudBay Minerals (HBM +3.4%) CEO David Garofalo tears into the management at takeover target Augusta Resources (AZC +1.6%), calling the company "essentially insolvent" and warning that its shareholders were at risk without a quick wrap-up in permitting for its Rosemont copper project.
- AZC said this week that it expects to receive its final required permit for Rosemont in H1 of this year, while HBM contends the permitting process will take much longer and could cause serious liquidity problems, noting that a $109M loan comes due in July.
- AZC "really [has] no money, they have significant debt, and that debt is coming due very soon," Garofalo says, adding that two permits AZC has obtained are facing legal challenges, which could delay planned funding from Silver Wheaton (SLW).
Feb. 12, 2014, 9:59 AM
- Traders are lining up bets that Augusta Resource (AZC +2.3%) will win a higher offer than HudBay's (HBM +3.2%) recent unsolicited bid of C$2.96/share - ~C$540M including net debt -
- AZC’s Rosemont copper project in Arizona is large enough to attract other producers including OZ Minerals (OZMLF) and Teck Resources (TCK), Laurentian Bank of Canada says, estimates the company’s value is at least C$3.89/share based on similar deals.
- Freeport McMoRan (FCX) is another possible suitor with the financial strength to outbid HBM, according to National Bank Financial.
- “HudBay’s offer has little chance of success at its current valuation,” says a Toronto Dominion analyst.
Jan. 9, 2014, 10:29 AM
- HudBay Minerals (HBM -5.8%) says a syndicate of underwriters has agreed to purchase 18.2M common shares on a bought deal basis at C$8.25/share for aggregate gross proceeds of ~C$150M.
- HBM intends to use the net proceeds of the offering for general corporate purposes, including providing flexibility to pursue opportunities to advance its growth strategy.
Feb. 6, 2013, 3:32 PMHudBay Minerals (HBM +2.5%), expecting to more than quadruple copper output by 2015, seeks to capitalize on a buyers’ market for mining assets as small companies struggle to raise funds and larger competitors consider sales, CEO David Garofalo says. HBM plans to focus on smaller deals in countries such as Peru, Mexico, Colombia and Brazil. | Comment!
Aug. 8, 2012, 11:16 AMHudBay Minerals (HBM +2.3%) greenlights its $1.5B Constancia copper project in Peru and strikes a $750M financing arrangement with Silver Wheaton (SLW +6.8%) to help pay for it. In exchange for the cash, HBM will sell a portion of the byproduct gold and silver production from the Constancia and 777 projects to SLW at below-market prices. (also) | 2 Comments
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HudBay Minerals Incis 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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