Mining Weekly reported that Toronto based HudBay Minerals reported a 21% decline in revenue for the Q3 after weaker copper and zinc prices offset higher gold prices. Revenue fell to CAD 194.6 million from CAD 247.4 million per year earlier.
However, the company reported a big jump in net income after CAD 27.2 million asset impairment charges recorded a year earlier was not repeated. Q3 profit increased to CAD 20 million up more than 600% from earnings of USD 2.8 million reported a year earlier.
HudBay produced 28 428 tonnes of zinc, 14 290 tonnes of copper, 22 988 oz of gold and 477 769 oz of silver during the quarter all lower than in the Q3 of 2008. The company said that it still expects to meet its guidance for production in 2009.
Last week, it announced that it will restart its idled Chisel North mine and concentrator in Snow Lake, Manitoba, effective immediately at a capital cost of about CAD 7 million. The company has also approved plans to spend CAD 85 million to build a production ramp linking Chisel North to its new Lalor deposit.
The ramp will allow near term production of zinc-rich ore, as well as access to the gold zones HudBay has found at Lalor, for underground exploration.
(Sourced from Mining Weekly)
