As a partial strike in Flin Flon-Snow Lake continues, Hudbay’s latest fiscal update paints a good-news, bad-news picture of the company.
Hudbay announced Thursday that it lost $23.7 million in the first quarter of 2015, blaming factors such as provisional pricing adjustments, foreign currency translation losses and tax adjustments.
But the company confirmed its Constancia mine in Peru entered commercial production on April 30 and is expected to generate “substantial cash flow” in the second quarter.
In Flin Flon, the striking IAM Local 1848 told members Friday that Constancia would be unable to operate once a mining strike in Peru commences on May 18.
“With no workers, production stops everywhere,” the union said on its website.
But Hudbay spokesman Scott Brubacher told The Reminder that the strike will not involve Constancia.
“We do not have any employees who are members of the union(s) involved,” he said in an email.
Hudbay also confirmed that its recent purchase of the New Britannia mine mill in Snow Lake means it no longer plans to build a new mill at the Lalor mine site.
On Friday morning, IAM resumed its slowdown of vehicles entering Hudbay property near the main gate in Flin Flon. The slowdown was cancelled Thursday due to road conditions.
The Reminder will have much more on Hudbay in our Monday edition. Today’s edition includes extensive coverage of the partial strike.
