Unexpected loss sends Hudbay stock to six-year low


Hudbay Minerals stock was pummeled Thursday to its lowest level in six years following the company’s announcement of an unexpected $55.2 million second-quarter loss, according to its 2nd Quarter Financial Statement.

Wall Street analysts were projecting Hudbay, the owner of the proposed Rosemont Mine, would post a $.14/share profit for the quarter ending June 30, but instead, the company finished with a ($.24/share) loss.

On Thursday, Hudbay’s stock lost 7.94% percent on the New York Stock Exchange, falling 52 points to close at $6.03 in heavy trading at 230,000 shares. The stock traded as low as $5.82 before recovering in late trading.

Hudbay’s stock has rebounded some, closing Monday at $6.27.

Hudbay CEO David Garafalo

Hudbay CEO David Gar0falo

Hudbay’s Management Discussion & Analysis report states the company spent $13.8 million in the second quarter on the proposed Rosemont Mine bringing the total for the first six months of 2015 to $24.8 million.

Hudbay has $328.4 million in capital spending commitments if, and when, Rosemont construction begins, $192.1 million of which cannot be terminated. The proposed mine is located in the Santa Rita Mountains on the Coronado National Forest 35 miles southeast of Tucson. Continue reading

Posted in Hudbay, Investors | 4 Comments

Tumbling copper prices expected to delay Hudbay’s Rosemont construction plans

Economic turmoil in China has pushed copper prices to a six-year low which is dragging down the share prices of major copper producers including Toronto-based Hudbay Minerals, which is seeking state and federal permits to construct the Rosemont Copper Mine southeast of Tucson.

The precipitous decline in copper prices is expected to delay Hudbay’s decision on whether to construct the Rosemont copper project until copper prices recover, which may be several years.

Hudbay is also facing an ongoing strike by about 180 machinists at its Manitoba mines in Flin Flon, Snow Lake and Reed Lake. The International Association of Machinists and Aerospace Workers Local 1848 walked off the job on May 1 and continues to picket Hudbay’s three Manitoba mines.

The union on Tuesday accused Hudbay of violating Canadian labor laws by forcing non-striking workers to perform the jobs of the striking machinists. Continue reading

Posted in General, Hudbay, Investors | 3 Comments

Pima County lighting suit underscores adverse economic impacts of the proposed Rosemont Mine

Pima County has filed a lawsuit alleging that the Rosemont Copper Co. is in violation of the county’s outdoor lighting regulations by failing to submit a lighting plan for exploratory drilling at Rosemont’s proposed mine site in the Coronado National Forest.

The county alleges in a lawsuit filed in Pima County Superior Court that Rosemont’s failure to submit the plan is in ‘stark conflict” with the company’s “commitment to the community to voluntarily comply with the Pima County Outdoor Lighting Code,” the Arizona Daily Star is reporting. Rosemont makes the pledge on its website.

Pima County enacted the outdoor lighting code  in 2012 to “protect access to
the dark night sky” and support “astronomical activities” among other intended purposes.

The adverse impacts of the lighting and dust created by Rosemont’s proposed open pit project to the world-class astronomy research facilities located nearby have long been a concern of mine opponents. According to a 2007 University Arizona study, astronomical research contributes over $250 million a year and 3,000 jobs to Arizona’s economy. Continue reading

Posted in Deceptions, Economics | 3 Comments

As Manitoba mine strike looms, Hudbay hires replacement workers and security forces

Hudbay Minerals is stating it intends to keep its 777 Mine in Flin Flon, Manitoba operating despite a pending strike by 200 union workers scheduled to begin Saturday, according to news reports.

Rob Winton, Vice-President of Hudbay’s Manitoba Business Unit, said the company’s contingency plans are ready and will be enacted once union members walk off the job,  The Reminder is reporting.

Winton told the Flin Flon newspaper that a strike “would be irresponsible and against the interests of the company, the employees, the towns and even the striking employees.”

According to the Reminder, Hudbay is set to bring in replacement workers to try and break the looming strike at the 777 mine and two other mines near Snow Lake by the International Association of Machinists, Local 1848. Continue reading

Posted in Hudbay, Labor | 3 Comments

More trouble for Mexico mine, work stopped because of toxic waste spill

Local farmers have joined forces with striking miners in stopping work at the Buenavista de Cobre open-pit copper mine near Canenea, Sonora, MX. The mine is owned by Grupo Mexico and is reportedly the second largest in the world.

Heavy rains last August resulted in the collapse of a tailings dam that unleashed a toxic runoff of contaminated mine waste including sulfuric acid and heavy metals into the headwaters of the Rio Sonora. The watershed provides drinking and irrigation water to the residents in northern Sonora.

According to Al Jazeera, striking miners, and Rio Sonora farmers  shut down the groundwater wells used by the mine resulting in a sharp reduction in mining operations.

In August of last year, a leading mining industry publication said that collapse of tailing dams at Buenavista and Mt. Polley in British Columbia, CA “[serve] as a reminder of why lengthy permitting and environmental approval processes are necessary for mine construction…” similar to the process currently underway at the proposed Rosemont Mine in the Santa Rita Mountains on the Coronado National Forest south of Tucson.


Posted in Clean Water Act, water | 2 Comments