NEW YORK HudBay
Minerals Inc. returned to profitability in the third quarter
despite a drop in revenue due to lower copper sales volumes and
company posted net income of nearly Canadian $3 million ($2.9
million) for the three months ended Sept. 30 vs. a net loss of
more than C$5.35 million in the same period last year despite a
10-percent drop in sales to C$130.18 million ($124.2
decrease was primarily due to lower copper sales volumes,
mainly as a result of the planned permanent closures of the
companys Trout Lake and Chisel north mines in 2012, and
lower metal prices compared to the third quarter of 2012,
partially offset by higher zinc, gold and silver volumes,"
HudBay president and chief executive officer David A. Garofalo
said in a conference call with analysts.
copper sales totaled 14.4 million pounds in the third quarter,
down 27.4 percent from 19.8 million pounds a year earlier.
HudBay expects its
full-year production of contained copper in concentrate to be
slightly below the 2013 guidance range of 33,000 to 38,000
tonnes, while full-year contained zinc production is expected
to be at the upper end of the 2013 guidance range of 85,000 to
"The lower copper
production is mainly due to the deferral of higher copper grade
zones from the 777 Mine plan to future years as a result of
temporary limitations in paste backfill availability and
requirements for ground support in the higher copper grade
zones," the company said.
HudBay said its
Constancia copper project in Peru was 47-percent complete as of
Oct. 31, with initial production still projected for late 2014
and commercial production projected for the second quarter of
70-percent-owned Reed copper mine in Manitoba started
production in the third quarter and is expected to reach full
production of about 1,300 tonnes of ore per day in the first
half of 2014.
Sinking of the main
production shaft at the Lalor copper project in Manitoba also
was substantially completed at the end of the third
ore production at HudBays Manitoba business unit was
29-percent higher than the prior years third quarter as a
result of a full quarter of production at Lalor, additional
production from the 777 north mine and production commencing at
the Reed Mine," the company said.