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Hudbay Minerals back in the black

9th November 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Canadian miner Hudbay Minerals on Friday said it had swung to a third-quarter profit of $3-million, or $0.03 a share, compared with a loss of $5.4-million, or 0.03 a share, as higher foreign exchange gains and lower tax expense boosted earnings, which was partially offset by lower revenue as a result of lower volumes and prices.

In the third quarter ended September 30, the diversified miner’s revenues fell $14.4-million to $130.2-million, which was mainly owing to lower copper sales volumes, as a result of the planned permanent closures of the Trout Lake and Chisel North mines, in Manitoba, and lower metals prices when compared with the same period on 2012, partially offset by higher zinc, gold and silver volumes.

Toronto-based Hudbay, which is developing the $1.7-billion Constancia copper mine, in Peru, on Monday announced that it had entered into an amended and restated precious metals stream agreement with Silver Wheaton, that would inject $135-million more into its coffers in exchange for half of the payable gold from the Constancia project, which was expected to start production at the end of 2014.

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