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
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