The goals also require Hudbay to receive all required state permits including an Air Quality Permit and an Aquifer Protection Permit for the mine complex that would develop open pit mines on the western and eastern slopes of the Santa Rita range.
Hudbay states in its 1st Quarter Management Discussion & Analysis (MD&A) report released last week that it will begin seeking a joint venture partner after it receives the Aquifer Protection and Clean Air permits expected later this year.
Hudbay wants a “joint venture partner to participate in the funding of definitive feasibility activities in 2024 as well as in the final project design for Copper World,” the MD&A report states. The definitive feasibility study is required by Canadian financial regulators before Hudbay’s Board of Directors can make a formal decision on whether to build the mine.
Hudbay has less than half of the minimum $600 million in cash it states is needed to move ahead with the mine. The company reported $255.6 million in cash at the end of the 1st Quarter ending on March 31. The company’s cash reserves over the last two years have ranged from a high of $310.6 million as of March 31, 2021, to a low of $213.4 million as of March 31, 2022.
Hudbay has also set a requirement for the ratio between net long-term debt (long-term debt less cash) and a financial measurement for earnings called EBITDA (earnings before interest, taxes, depreciation, and amortization) to be less than 1.2. The annualized ratio as of March 31 was 2.07, up from 2.01 as of Dec. 31, 2022. The ratio at the end of the previous two years was 1.66 as of Dec. 31, 2021, and 2.27 as of Dec. 31, 2020.
The company told analysts earlier this month that it is reducing discretionary spending to increase cash and reduce debt to meet the financial goals needed to formally approve construction of the Copper World/Rosemont mine complex in 2025 or later.
Hudbay is also seeking to renegotiate the metals streaming agreement with Wheaton Precious Metals. The agreement was initially reached by Augusta Resource Corporation in 2010 prior to Hudbay buying Augusta in 2014. Hudbay has provided no information on the status of discussions to revise the streaming agreement.
HUDBAY IS IN ARIZONA TO STAY AS ECONOMIC GUESTS OF THE FEDERAL GOVERNMENT . THEY WILL MINE THE ROSEMONT DEPOSITS UNTIL THEIR MINERAL RESOURCES ARE EXHAUSTED . THIS HAS BEEN MADE POSSIBLE BY A LACK OF RULES AND REGULATIONS WHEN IT COMES TO ALLOWING FOREIGN COMPANIES THE FREEDOM AND RIGHTS TO EXPLOIT STRATEGIC MINERAL RESOURCES . HUDBAY HAS DONE NOTHING WRONG AS A MINING COMPANY . ARIZONA IS TESTIMONY TO THE DEVASTATION THAT MINING COMPANIES CREATE . IF YOU WANT TO BE ” THE KING OF COPPER ” , THEN YOU MUST BEAR THE CONSEQUENCES . HUDBAY IS A BUSINESS AND IT IS ALL ABOUT MAKING MONEY , MONEY AND MORE MONEY . IT IS JUST ANOTHER FORD OR GM .
THE US FEDERAL GOVERNMENT MIGHT CONSIDER NATIONALIZING ALL ” STRATEGIC MINERALS ” . FIRST THEY MUST IDENTIFY SUCH MINERALS . FOLLOWING THIS , POLICES FOR THE EXPLOITATION/MINING/PROCESSING/ETC CAN BE PUT IN PLACE KEEPING IN MIND THAT MINING IS BASED ON A NON-RENEWABLE PRODUCT . THE US SHOULD EXAMINE SAUDI ARABIA’S POLICIES REGARDING MINERAL MINING . THE US CAN THEN INVITE FOREIGN INVESTMENT/PARTICIPATION BUT THE RESOURCES REMAIN THE PROPERTY OF THE GOVERNMENT .
WHY DID YOU DELETE MY SECOND COMMENT ????