Hudbay Minerals Inc T.HBM

Scotia Capital, Opportunistic Takeover." ????

[Ridgeback]

The Globe and Mail reports in its Wednesday edition that Scotia Capital analyst Orest Wowkodaw has reaffirmed his "sector "outperform" recommendation for Hudbay Mineral.

The Globe's David Leeder writes that Mr. Wowkodaw gave his share target a 50-cent boost to $10.50.
Analysts on average target the shares at $9.96.

The Globe reports that Mr. Wowkodaw raised his net-asset-value projection for Hudbay Minerals to reflect the preliminary feasibility study results for its 100-per-cent-owned Copper World project in Arizona. Mr. Wowkodaw says in a note: "With improved project economics, including materially lower initial capex and a reduced technical risk profile from the planned deferral of the concentrate leaching circuit, we view the update as positive for the shares.

However, given the company's near-term deleveraging focus and future partner search, we do not anticipate development of Copper World to begin before 2026. ...

Our revised 12-month target is based on a 50/50 weighting of five times our average 2024E-2025 estimated EV/EBITDA and 1.1 times our updated 8-per-cent NAVPS estimate. Given the significant valuation disconnect with peers, we believe Hudbay could be vulnerable to an opportunistic takeover."

[1234bmth]

HBM has been a target of takeover for years now, but unfortunately it didn't happen and I don't know if it will happen in the future because HBM has nothing to offer under $6 copper, unless some big copper players really believe that copper will hit $6+  HBM costs are too high.

[Ridgeback]

 Larger mining companies as well as hedge funds are looking at future demands and Hudbay has been adding to their growth cycle with new grounds with potential in Manitoba. So are the sum of all the parts worth more? It appears analyst believe it to be so. Are they worth more to an aquirer or merger before the next cycle begins? My view is Hudbay is undervalued looking at the long term demands

[1234bmth]

With the rate that HBM is going down on a weekly basis, by the time it gets an offer to take over this will be at $4 and with an 50% premium offer will be $6.

[Cuisdafuture]

But when Peter said they are open to offers early July, the share price was about the same or higher than today. He said they're not open to being undervalued in a sale too. So if a deal is in the works, then closer to $8.50 to $9 would be my guess. Peter won't make the same mistake as Gil and sell at the utmost low.  HBM needs 2 or 3 successful quraters and final permits to Copper

[1234bmth]

If copper reaches $5 then HBM will be $10+ with out takeover, the purpose of takeover is to be done when copper is depressed like now, so a takeover offer now at $9+ is acceptable, but if copper reaches $5 then the offer should be $14+