IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
HudBay Minerals posted some big gains in its fourth-quarter and year-end financials, the Toronto-based miner reported on Wednesday.
Net earnings in Q4 2010 more than tripled to $24.5 million, compared to $7.2 million in the fourth quarter of 2009.
Year-end numbers were also impressive, with net earnings of $73 million — a 475% increase over 2009 after adjusting for gains on the sale of investments, the company stated. HudBay attributed the higher profits to stronger metals prices, which were only partially offset by a temporary buildup in unsold metals inventory, a stronger Canadian dollar, increased exploration costs and higher taxes.
“Consistent and predictable performance across our operations enabled us to meet our production targets in 2010,” said David Garofalo, HudBay’s president and chief executive officer. “We are poised to continue advancing our strategic plan on a number of fronts in 2011. Lalor remains on track to be our next big mine in Manitoba and the Constancia copper project in Peru provides us with another significant leg of growth in one of the world’s best mining jurisdictions. Our growth pipeline is further enhanced with the high grade copper project at Reed Lake and the advanced stage gold/zinc deposit at the Back Forty project in northern Michigan.
“In 2011, we will focus on execution with an eye toward optimizing our projects with an aggressive exploration program and adding more early stage development projects to further enhance our long term growth profile.”
In January HudBay acquired Nosemont Mining in a cash-stock deal valued at CAD$397 million. The acquisition of Norsemont, which owns the Constancia copper project in Peru, is expected to boost HudBay’s copper production by about 145 percent by 2016. Constancia is expected to produce 172 million pounds of copper annually and 2 million pounds of molybdenum in concentrate over a 15-year mine life.
HudBay’s stock price was down 33 cents to close at $16.67 Wednesday.
HudBay’s main production platform is located in northern Manitoba and includes the 777 mine, the Trout Lake mine, a concentrator, copper smelter and zinc plant at Flin Flon Manitoba. The company also owns the Balmat zinc mine and concentrator in New York state, which are currently on care and maintenance. In addition HudBay produces zinc oxide at its Zochem facility in Brampton Ontario and produces copper cathode at its White Pine refinery in Michigan. HudBay markets its metals and zinc oxide through an agency agreement with Considar Metal Marketing, which is based in Toronto and is 50% owned by HudBay.
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– with files from Mineweb
