HudBay Minerals reports Q1 loss
HudBay Minerals (TSE, NYSE: HBM) logged Wednesday a first-quarter net loss of $27.2 million or $0.15 per share, compared to a profit of $1.9 million or $0.01 per share last year.
The company reported total revenue of $106.8 million, $13.1 million lower than the same period last year. This was primarily due to lower sales volumes and lower copper prices compared to the first quarter of 2013, according to a statement.
“Hudbay is poised to deliver growth in production, earnings and cash flows in the second half of this year as we approach the end of our $2.2 billion three-mine construction program,” said David Garofalo, president and chief executive officer.
Toronto-based Hudbay Minerals operates in Canada and Peru, and has been bidding to acquire Augusta Resources Corp. (TSE:AZC).
Augusta’s Rosemont Copper project near Tucson, Arizona would the third largest copper mine in the US upon completion. More than $100 million has already been spent with planned construction starting end of this year and commercial production scheduled for early 2017.
In February, HudBay Minerals offered Augusta shareholders 0.315 of a Hudbay share per Augusta share, representing approximately $2.96 per Augusta share. The offer is open for acceptance until May 5, 2014.
The bid was seen as hostile by Augusta, whose copper project could account for about 10% of annual US copper output, producing 243 million pounds of copper per year over a mine life of more than 22 years.
The company’s shares have received an average recommendation of “hold” from the thirteen brokerages that are currently covering the company Thursday. Six research analysts have rated the stock with a hold recommendation and five have given a buy recommendation to the company.
Hudbay Minerals traded up 3.74% on Thursday, hitting $9.70.