Cash-rich HudBay carves out next steps

Dec 13, 2007 | 02:54 PM | Meghann McDonell

HudBay Minerals Inc., Winnipeg, Manitoba, will spend Canadian $42.8 million ($41.9 million) on exploration activities in 2008 while it actively seeks out takeover opportunities and uses some of its war chest to buy back stock.

"HudBay's strategy continues to look at growth through organic investment, which is reflected in our strong dollar commitment to exploration," a company spokesman said. "The other component of our strategy is to look at growth by acquisitions of either production companies or development properties. We continue to look for development opportunities as a use for our cash."

At the close of the third quarter, the company had Canadian $702.9 million ($688.6 million) in cash. Analysts speculated that the company's cash pile could reach C$1 billion by year-end based on the 24-percent increase seen from the second to third quarters.

Next year's budget will build on the C$45.2 million ($44.3 million) spent on exploration activities in 2007, which delivered the Lalor Lake zinc deposit in Manitoba near the company's Snow Lake concentrator.....