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Hudbay Minerals Inc T.HBM

Alternate Symbol(s):  HBM

Hudbay Minerals Inc. is a copper-focused mining company. The Company has operations and pipeline of copper growth projects in tier-one mining-friendly jurisdictions of Canada, Peru, and the United States. The Company’s operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Its growth pipeline includes the Copper World project in Arizona, the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru) and several expansion and exploration opportunities near its existing operations. The Company owns 75% of the Copper Mountain Mine, which is located south of Princeton, British Columbia. Copper Mountain Mine is a conventional open pit, truck, and shovel operation. The mine has approximately 45,000 tons per day plant that utilizes a conventional crushing, grinding and flotation circuit to produce copper concentrates with gold and silver credits.


TSX:HBM - Post by User

Bullboard Posts
Post by shortUSA2on Nov 09, 2007 11:58pm
345 Views
Post# 13787430

HBM still cheap

HBM still cheapWith the share price dropping below $24 I decided to get back in here.  They are likely to earn about 2.10 per share this year.  Take the 700 million in cash off the market cap and you end up with a PE around 9.  That is cheap given the relative weakness of zinc prices.  One of the reasons I've been out of the stock for a while, and probably the same reason that HBM has been generally weak is that the market is expecting them to make an acquisition, and of course, the acquirer usually takes a bit of a hit when the deal is announced.  At this level, however, I think this expectation is priced in.  Furthermore,  I wouldn't be surprised if they introduce a dividend in the next six months, possibly following the fiscal year end.  Looks like good upside from here. 
Bullboard Posts