HudBay Minerals (TSX: T.HBM, Stock Forum) late Friday said it is discontinuing the planned offering of US$400 million senior unsecured notes due 2020, which it had previously announced on May 14, 2012, due to market conditions.
"Although the funding we were seeking was available to us, poor overall market conditions caused the proposed interest rate to exceed our cost of capital criteria," said Hudbay's President and CEO David Garofalo.
"We currently have a large cash balance with no debt, strong cash flow and available credit to help fund our development projects. The offering was one of a number of debt-financing alternatives we have been considering, including off-take linked project financing, and we will remain disciplined as we pursue these opportunities."
On May 9, the miner reported a first-quarter profit that fell to $8.0 million, or five cents a share, from $15.1 million, or 11 cents a share, during the same period last year.