Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Hudbay Minerals (TSX, NYSE: HBM) announced on Wednesday that the final land user agreement for its Pampacancha project has been completed, and the company now has full access to the site to begin pit development activities.
Pampacancha is a high-grade satellite deposit located 4 km from the mill at Hudbay’s Constancia polymetallic mine in Peru, considered to be the lowest cost open-pit sulphide copper mine in South America.
In 2020, the mine produced 73,150 tonnes of copper, 12,395 ounces of gold and over 1.62 million ounces of silver. This year, its production guidance is set at 72,000-88,000 tonnes of copper, 40,000-50,000 ounces of gold, 1.8-2.17 million ounces of silver and 1,400-1,700 ounces of molybdenum.
“We are very pleased to have completed the final land user agreements at Pampacancha, and we remain on track for first production in the second quarter of 2021, in line with guidance,” Hudbay CEO Peter Kukielski said in a media brief.
“This major milestone was achieved due to collaboration between the community and the Constancia team, which further demonstrates Hudbay’s strong social license to operate in Peru,” he added.
In January 2021, Hudbay began pre-development activities, including haul road construction and site preparation work, which will allow the company to begin pre-stripping activities shortly.
Shares of Hudbay Minerals were down 1% on the TSX by noon Wednesday. The diversified Canadian miner has a market capitalization of approximately C$2.57 billion.
