A quick summation of 2008 HBM productionLooks like production for 2008 will stand pat against 2007 performance. From a quick summation without crunching in detail numbers I would expect cash inflow to continue to be generous. Keep in mind that both gold and silver would appear to continue bullish for 2008. Copper appears to be in holding pattern.These three metals will likely provide a negative cash cost for the zinc produced. The company remains debt free. Additionall, Zinc prices have likely bottomed and has more upward propensity. In an article by Rio Tinto's chief Economist dated 13 Feb. (
www.mineweb.net) Mr.Vivek Tulpule said "Looking forward, it is entirely possible that some commodity prices have yet to reach their cyclical peaks." His reason is that strong demand from china and other developing countries will counteract any weakness in western economies. Little wonder why Rio Tinto would reject BHP's overtures.
Coming back to HBM, we should also note that by end 2008, shares of HBM would have been reduced by some 10 million shares from the sharebuybacks. The decided push upwards this would do to the Earning Price Per Share as well as the cash flow per share becomes obvious. I will not sell my HBM. The discounted net present value of these future streams of cash flow will add to shareholder values and continue to do so in the years ahead. HBM is still in its genesis of growth as towards being a major as it develops it own huge land parcels and prospects.It has a very long life of mine.