The partial strike at Hudbay doesn’t appear to be scaring away investors in any significant numbers.
Raymond James, a financial services company, recently issued an “outperform” rating for Hudbay shares, upping the target price from $13 to $14.
And LB Securities, among others, continues to urge investors to buy Hudbay shares.
Hudbay shares closed at $11.35 on the TSE on Monday, up 45 per cent from where they were in mid January, months before IAM Local 1848’s strike began.
Shares were down nine per cent from May 1, the day before the strike began, but an analyst familiar with Hudbay cited not the strike, but fluctuations in the price of copper and zinc, and expected variations in the investment market.
The analyst also cited Hudbay’s Constancia mine in Peru as an appealing prospect for investors.
In recent weeks, IAM has claimed Constancia – Hudbay’s first major mine outside of Flin Flon-Snow Lake – was not making money because of strikes in Peru.
But Hudbay says the mine continues to operate just fine and that the strikes in question do not apply to Constancia.
The company has said Constancia will represent 55 to 60 per cent of its earnings.
Elected
Meanwhile, all 10 nominees listed in Hudbay’s management information circular in April were elected to the company’s board of directors last week.
They include Hudbay CEO David Garofalo (99.37 per cent of favourable votes cast by proxy), former Hudbay Manitoba head Tom Goodman (99.40 per cent) and chairman W. Warren Holmes (98.09 per cent).
Rounding out the board are Igor Gonzales (99.37 per cent), Alan R. Hibben (94.74 per cent), Sara B. Kavanagh (98.72 per cent), Carin S. Knickel (99.37 per cent), Alan J. Lenczner (98.70 per cent), Kenneth G. Stowe (99.39 per cent) and Michael T. Waites (99.39 per cent).
