TORONTO – Revenue was down substantially at Hudbay Minerals last year compared to 2011, but the company declared a semi-annual dividend of $0.10 per share, nonetheless. For 2012, revenue was $702.6 million, down $188.2 million from the previous year due to lower sales volumes and lower metals prices.
In Q4 2012 ore production was 20% lower than the same period a year earlier as the Trout Lake zinc-copper mine and the Chisel North zinc mine in Manitoba exhausted their resources and were closed permanently. Some of the shortfall due by the closures was offset by initial production from the nearby Lalor zinc-copper-gold mine.
Hudbay began hoisting ore from the Lalor development through the ventilation shaft in August 2012. Underground crews are focused on reaching the 910-metre shaft station and ramp down to the 955-metre level. Shaft sinking is to be completed late this year.
Capital expenditures at Lalor are expected to be $90 million more than the original estimate of $263 for the concentrator because grinding capacity has been increased by 20% to 5,400 t/d. The mill is to be commissioned in 2015.
More information about the Lalor project is available at HudbayMinerals.com.