Hudbay stock falls below $5 a share for first time in 14 months

Posted on August 3, 2018 by admin

Higher production costs in Manitoba, lower than expected earnings and continued slumping copper prices weakened by President Trump’s trade war with China sent Hudbay Mineral’s stock into a tailspin this week falling below $5 a share on the New York Stock Exchange for the first time since June 2017.

Hudbay’s stock fell 30 points on Aug. 1 to close at $4.95 a share on the NYSE.  The stock last closed below $5 on June 16, 2o17 at $4.85 a share on the NYSE. Hudbay regained some of the loss on Aug. 3, closing at $5.05 in New York.

Zachs Investment Research expected Hudbay to post $.13 per share earnings for the second quarter ending June 30, but instead the company announced earnings of $.09 per share, or $24.7 million, according to Hudbay’s second quarter financial statement.

Canadian copper mining companies were hammered Wednesday after Trump announced he was considering placing 25 percent tariffs on $200 billion of Chinese imports. The possibility of increased tariffs come as concerns build that China’s economy is slowing. Continue reading →

Posted in Economics, General, Hudbay, Investors | 2 Comments

Hudbay stock hits one year low as copper prices slump

Posted on July 16, 2018 by admin

Toronto-based Hudbay Minerals Inc. stock price is hovering near 52-week lows dragged down by falling copper prices facing downward pressure by the U.S. initiated trade war and signs of a global economic slowdown.

Hudbay, which is seeking permits to construct the proposed $1.9 billion Rosemont open-pit copper mine in the Santa Rita Mountains on the Coronado National Forest southeast of Tucson, has seen its stock price cut in half since January.

Hudbay’s stock traded on the New York Stock Exchange hit a 52-week low on July 11 when it closed at $5.10. It’s drifted sideways since closing July 16 at $5.15.

Copper prices have seesawed since late 2017 when the price hovered near $3.30 a pound before declining to below $3 a pound in early April before rebounding to around $3.30 a pound in early June. But since President Trump launched a trade war with China, Canada, Mexico and European Union countries, the price of copper has dropped to $2.80 a pound as of July 16.

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Posted in Economics, General, Hudbay, Investors | 3 Comments

Former Rosemont Owner poised to gross $400 million on Arizona Mining Inc. sale

Posted on June 29, 2018 by admin
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Arizona Mining executive Richard Warke

Richard Warke, the former top executive of Augusta Resource Corp. which sold the proposed Rosemont copper project to Hudbay Minerals in 2014, stands to gross US$409 million in connection with the sale of another company with a proposed mining project in southeastern Arizona.

Australia-based South32 has offered US$1.3 billion cash to purchase Arizona Mining Inc.’s Hermosa mine project six miles south of Patagonia. The Hermosa Project comprises the zinc-lead-silver Taylor deposit and the zinc-manganese-silver Central deposit.

South32 is Australia’s third largest mining company and already held a 17 percent share in Arizona Mining prior to making the June 15 offer. Arizona Mining’s board of directors unanimously recommended shareholders approve the sale. Warke is Arizona Mining’s executive chairman.

South32’s offer of C$6.20 a share was about 50 percent higher than Arizona Mining’s June 15 closing price on the Toronto Stock Exchange. South32’s shareholders’ approval is not required and the deal is expected to close in September, according at a joint press release issued by the two companies.

Warke controls 88 million shares of Arizona Mining according to the company’s most recent Management Information Circular filed with Canadian securities regulators. The huge windfall comes 20 years after Warke filed for personal bankruptcy in Vancouver, British Colombia during a period in which he was engulfed in financial problems including a corporate bankruptcy and several cease trade orders issued by Canadian regulators.

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Posted in General | 3 Comments

Hudbay confronted over its conflicts with indigenous people

Posted on May 22, 2018 by admin

A Canadian mining activist confronted Hudbay Mineral’s CEO Alan Hair on the company’s history of violent and repressive conflict with indigenous people during the company’s annual meeting earlier this month in Toronto.

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Rachel Small

Before asking her pointed question, Rachel Small, a regional organizer for the social justice group Council of Canadians, first summarized Hudbay’s conflicts with indigenous people in Manitoba, Guatemala, Peru and Arizona. Her comments were made before a room packed with Hudbay investors, officers and board members. Continue reading →

Posted in Hudbay, Human Rights | 1 Comment

Audubon Society urges feds to reject Rosemont Mine permit

Posted on May 21, 2018 by admin

The Tucson Audubon Society has requested that the U.S. Army Corps of Engineers deny a crucial Clean Water Act permit needed for the proposed Rosemont Copper Mine because of environmental threats to its internationally-famous birding center near Patagonia.

The Paton Center for Hummingbirds is located in the Sonoita Creek riparian zone immediately downstream from Rosemont’s proposed massive construction project in the creek.

Toronto-based Hudbay Minerals Inc., which owns Rosemont Copper, is proposing to reconstruct the Sonoita Creek floodway with the goal of obtaining mitigation credits from the Army Corps.

The credits would be used to compensate for the destruction of desert aquatic resources by the proposed Rosemont open-pit copper mine planned for the Santa Rita Mountains on the Coronado National Forest southeast of Tucson. The mile-wide, half-mile deep open pit mine would dump waste rock and tailings on more than 2,500 acres of national forest and destroy rare desert riparian waterways. Continue reading →

Posted in Clean Water Act, Hudbay, water | 1 Comment