Hudbay turned only a modest profit in the third quarter, meaning 2013 is likely to be the company’s third consecutive money-losing year.
Between July 1 and Sept. 30, the company made $3 million but is still $47.8 million in the red for 2013.
Nonetheless, president and CEO David Garofalo said Hudbay is making positive progress.
“Our operating teams continued to make significant progress on our development projects during and subsequent to the third quarter of 2013,” Garofalo said. “At Constancia (in Peru), where the project is nearly half complete, we signed long-term power and port agreements, which were in line with our budgeted expectations.
“At Lalor (near Snow Lake), we have substantially completed the sinking of our main production shaft and at the Reed mine (also outside Snow Lake), we commenced initial production. Both Manitoba mine projects continue to be on time and on budget.”
Meanwhile, on Nov. 4, Hudbay entered into an amended and restated precious metals stream agreement with Silver Wheaton pursuant to which the company will receive an additional US$135 million deposit against delivery of 50 per cent of payable gold from the Constancia project.
The money is payable once Hudbay has incurred and paid US$1.35 billion in capital expenditures at Constancia.
This is in addition to the US$750 million agreement with Silver Wheaton, entered into in August 2012, in respect of precious metals production from 777 and silver production from Constancia.
Hudbay has received an aggregate of US$625 million of the deposit payments under the initial agreement and the remaining US$125 million payment for silver production at Constancia will become payable once the company has incurred and paid US$1 billion in capital expenditures at the project.
The Reminder will have more on Hudbay’s finances and projects Monday.
– With files from a Hudbay news release
The mill at Hudbay’s Constancia mine project in Peru.
HUDBAY PHOTO
