HudBay Minerals increases first quarter profit by 59%
HudBay Minerals Inc. has released its first quarter 2011 financial results. Net profit attributable to shareholders increased to $16.8 million or $0.11 per share in the first quarter of 2011, compared to $10.6 million, or $0.07 per share, during the first quarter of 2010. Earnings in the first quarter of 2011 included a charge of $5.8 million, or $0.04 per share, for transaction costs associated with the successful acquisition of Norsemont Mining Inc. in March 2011. Earnings grew during the quarter mainly due to higher metal prices and reduced exploration expense, partly offset by lower sales volumes, a stronger Canadian dollar and Norsemont transaction costs.
“Our operating mines delivered very strong performance during the first quarter of 2011 and we remain confident in our ability to meet our production guidance for the remainder of the year,” said David Garofalo, HudBay’s president and chief executive officer. “After outlining our growth strategy in 2010, which entailed acquiring development stage assets with exploration upside, our current focus is to execute against that strategy. We continued to make significant progress at Lalor and our production timelines for the project remain on track. We have also commenced pre-construction and feasibility study optimization activities at Constancia and expect to make a formal construction decision in early 2012.”
- Production of all key metals was higher in the first quarter of 2011 compared to the same period last year and remains on track to meet 2011 guidance, with copper production up 23% to 14,386 tonnes, zinc production up 27% to 19,205 tonnes and precious metals production up 31% to 30,006 gold-equivalent ounces
- Acquisition of Norsemont and its 100% owned Constancia copper project completed in the first quarter of 2011; project optimization and initial stages of construction preparation commenced
- Significant construction activities continue at Lalor as project remains on budget and on schedule for first production in the second quarter of 2012; optimized feasibility study due in the third quarter of 2011
- Additional copper-gold mineralization intersected in three separate horizons in copper-gold zone at Lalor
- Drill intersections in Pampacancha deposit, three kilometers southeast of Constancia, confirm continuity of mineralization, with localized high grade intervals
- New high-grade copper mineralized zone discovered in exploration drilling at option property 1.8 kilometers from the Reed copper project
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HudBay Minerals Inc. (TSX:HBM)(NYSE:HBM) is a Canadian integrated mining company with assets in North, Central and South America principally focused on the discovery, production and marketing of base and precious metals.