RE:RE:RE:Great drill resultsEven if they win the Rosemount appeal it will get appealed again... It is Copper World which requires less if any Federal permitting that will move forward quicker... They could dump the tailings on Rosemont since it has mineralization (would need federal permission) but the only reason Rosemont is on hold is the fact that they cannot prove there is mineralization on the lands they want to drop the tailing for Rosemount, so why not...
It looks like the overhang from Peru is lifting which will have a huge effect on the valuation of Hudbay. They are currently drilling on land that is within driving difference of their current Mill location and if a large mineralization is found the investment would be minimal.
The Peru government wants investment in the mining industry as long as the mining companies operate with a social license and Hudbay has been operating there with this in philosophy since inception.
Lets not forget that the last year and a half has been heavy in investments and the benefits will be seen in the coming qaurters
New Britannia Mill is on line at the Lalor mine. Will not have the copper component completed until Q4 2022 though... So all but complete... Their next step was to see if the Mill could increase the through put from 1,500 tons a day to 2,000 tons
Pampacancha deposit started being mined in April of this year... Low investment higher grade gold and copper to be mixed with the Constancia ore..
Once all of these improvements hit the bottom line at the current copper prices/gold prices they will have some very good years:
Constancia
- 2022 +30K; 2023 +40K; 2024 +50K more tons of copper (30t*2205*$3.50)=$231.5M
- 2022 +50K; 2023 +50K; 2024 +80K more ounces of gold (50K*50%*$1,700)=$42.5M
Net Revenue increase $274.0M
Lalor
- Copper over the next three years stays around 10K to 12K a year
- 2022 +45K; 2023 +85K; 2024 +86K more ounces of gold approx ben 45,000*1700=+76.5M
- 2022 +122K; 2023 +310K; 2024 +326K more ounces of silver approx ben 122,000*$23= +$2.8M
- Zinc drops between 10 to15 tons a year approx hit for 2022 10,000t*2205p*$1.2=($26.5M)
Net revenue increase $52.8M
How much of the additional $326.8M makes it to the bottom line in 2022?
Come the end of the year of 2021 they will be profitable before extraordinary items the biggest of which was the refinancing charge of the debt...