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TICKERS: HBM

Canadian Miner Releases New Mine Plan for Manitoba Mine
Research Report

Source:

An iA Securities report provided some key data points to know about this company.

In a Feb. 20 research note, iA Securities analyst George Topping reported that HudBay Minerals Inc.'s (HBM:TSX; HBM:NYSE) Q4/18 was a beat and 2019 guidance is in line.

The company's Q4/18 cash flow was $0.40 per share versus consensus' $0.31 estimate. EBITDA came in at $122.8 million, higher than the Street's $107 million forecast. The beat was due to continued higher grades at Constancia.

Looking at this year, 2019, cash costs per mined ton should decrease from their 2018 peaks. At Constancia they should drop by 5%, and at Manitoba they should stabilize.

Copper production also is expected to come down, by about 12%, as the copper grades at Constancia revert to the average.

HudBay has a new mine plan for Lalor that encompasses the New Britannia gold mill. It outlines gold production of 140 thousand ounces a year at cash costs of $450 per ounce for the first five years "once the mill is refurbished and the gold zone is accessed in 2022," Topping noted.

As for Rosemont, Topping indicated, HudBay should receive the final water permits soon.

IA Securities has a Buy rating and a CA$12.20 per share target price on HudBay, whose current share price is around CA$9.05.

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Disclosures from iA Securities, Hudbay Minerals Inc., Research Update, February 20, 2019

Conflicts of Interest: The research analyst and or associates who prepared this report are compensated based upon (among other factors) the overall profitability of iA Securities, which may include the profitability of investment banking and related services. In the normal course of its business, iA Securities may provide financial advisory services for the issuers mentioned in this report. iA Securities may buy from or sell to customers the securities of issuers mentioned in this report on a principal basis.

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Company Related Disclosures:
The analyst has visited the issuer's operations. No payment or reimbursement was received from the issuer for the associated travel costs.




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