Hudbay plans big production boost in 2014 as two Canadian mines move toward commercial production
Hudbay Minerals (TSX:HBM) anticipates some major production boosts this year as its Lalor and Reed mines in Manitoba prepare for commercial production, the company revealed on through its 2014 production guidance.
Hudbay plans on producing between 41,000 and 55,000 tonnes of copper this year, compared with a 2013 guidance of between 33,000 and 38,000 tonnes. The miner produced just short of 30,000 tonnes last year.
The company's precious metals 2014 production guidance is between 101,000 and 123,000 ounces. 2013 output was 91,258 ounces.
"Contained metal in concentrate production across all key metals is expected to increase over 2013 levels due to the full year of production expected from the Reed mine and initial production expected from the completed production shaft at Lalor and the Constancia project," the company wrote.
Hudbay also announced is capital expenditure forecasts, earmarking $1 billion for capital investment, including $900 million in growth initiatives.
The bulk of this will go toward the company's $1.7 billion Constancia copper project in Peru. At the end of 2013, the project was more than half complete with nearly $1 billion spent. Initial production is expected in late 2014 and commercial production in the second quarter of 2015. The miner says all permitting remains on schedule.
Constancia has 403 million tonnes of ore at a copper equivalent grade of 0.35% in the proven and probable reserves category. The project is located in the south-eastern Andes and is 100% owned by Hudbay.
The miner has set its 2014 exploration budget to $20.4 million.
Hudbay was trading slightly higher on Wednesday, gaining 1.5% to trade at $8.74. As with most miners, 2013 hasn't been easy. The company's share price has dropped 25% since this time last year.
But the miner has also been struggling with a whole different set of problems. Hudbay is facing three law suits related to its former operations in Guatemala. The suits allege that the company's security personnel attacked and raped Guatemalan women.
Read the full news release here.