News Feed Item

Hudbay Releases Fourth Quarter 2013 Results

TORONTO, ONTARIO -- (Marketwired) -- 02/19/14 --


--  Constancia project over 56% complete at December 31, 2013, with capital
    costs and schedule on target; power line construction and community
    relocation well advanced. 
--  Commissioning of Lalor production shaft on schedule for second half of
    2014; Reed commercial production on track for the first half of 2014. 
--  Completed an equity offering of 20.9 million common shares in January
    2014 at a price of $8.25 per share for gross proceeds of $172.7 million.
--  On February 9, 2014, announced intention to commence an offer to acquire
    all of the issued and outstanding common shares of Augusta Resource
    Corporation not already owned by Hudbay; Augusta is the operator of the
    undeveloped Rosemont copper project in Arizona. 
--  Semi-annual dividend of $0.01 per share declared. 

HudBay Minerals Inc. ("Hudbay" or the "company") (TSX:HBM) (NYSE:HBM) today released its fourth quarter 2013 financial results. In the fourth quarter of 2013, Hudbay recorded a loss and loss per share of $61.5 million and $0.32, respectively, compared to a profit and profit per share of $8.1 million and $0.05, respectively, in the fourth quarter of 2012. Operating cash flow before stream deposit and change in non-cash working capital was $0.8 million for the fourth quarter of 2013, a $5.2 million decrease compared with the same period in 2012, primarily due to lower inventory balances on hand in 2013 resulting in lower copper and zinc sales volumes compared to the fourth quarter of 2012.

Fourth quarter of 2013 loss was affected by, among other things, the following items:

                                     Pre-tax  After-tax gain   Earnings Per 
                                  gain (loss)         (loss)   Share Impact 
                                 ($ millions)   ($ millions)      ($/share) 
Impairments and mark-to-market                                              
 adjustments related to junior                                              
 mining investments                      (8.5)          (8.5)         (0.05)
Impact on deferred taxes of                                                 
 change in discount rate on                                                 
 decommissioning and                                                        
 restoration liabilities                    -            1.0           0.01 
Peruvian deferred tax arising                                               
 from fiscal stability                                                      
 agreement and other items                  -          (20.1)         (0.12)
Foreign currency translation                                                
 loss                                    (8.9)         (11.0)         (0.06)
Adjustment made on zinc                                                     
 inventory write down                    (5.0)          (3.1)         (0.02)
Gain as a result of provisional                                             
 pricing adjustments                      0.1            0.1              - 
Impairment on sale of Back                                                  
 Forty                                  (11.9)         (11.9)         (0.04)
Mark-to-market gain on metal                                                
 price hedging                            0.4            0.3              - 

"Our development projects progressed well in 2013, putting us in a good position to achieve our strategic objectives in 2014," said David Garofalo, president and chief executive officer. "We are continuing to advance Constancia toward initial production late this year and Lalor toward production from the main shaft in the second half of the year, which would lead to significant growth in all the metals we produce."

On January 9, 2014, Hudbay announced it had entered into an agreement with a syndicate of underwriters who agreed to purchase, on a bought deal basis, 18,200,000 of the company's common shares at a price of $8.25 per share. The underwriters were granted an over allotment option, which they exercised in full, for an additional 2,730,000 common shares. The transaction closed on January 30, 2014, and the aggregate gross proceeds from the offering were $172.7 million.

Hudbay intends to use the net proceeds of the offering for general corporate purposes, including providing the flexibility to pursue opportunities to advance the company's growth strategy.

On February 9, 2014, Hudbay announced its intention to commence an offer to acquire all of the issued and outstanding common shares of Augusta Resource Corporation ("Augusta") not already owned by Hudbay (the "Offer"). Under the terms of the Offer, Augusta shareholders are entitled to receive 0.315 of a Hudbay common share for each Augusta common share held, representing approximately $2.96 per Augusta common share (based on Hudbay's closing share price on the TSX on February 7, 2014). The Offer represents a premium of approximately 62% based on the 20-day volume-weighted average share prices of Hudbay and Augusta on the TSX for the period ended February 7, 2014, and a premium of approximately 18% to Augusta's closing share price on the TSX on February 7, 2014 in addition to Augusta's 26% share price increase during the two trading days preceding the Offer. The Offer values Augusta at an enterprise value of approximately $540 million on a fully diluted in-the-money basis.

The Offer is open for acceptance until 5:00 p.m. (Toronto time) on March 19, 2014, unless extended or withdrawn.

"We view Augusta's Rosemont project as an attractive complement to our existing portfolio of high-quality, long-life assets that fits well with our construction timeline at Constancia. Rosemont would add to the next phase of Hudbay's growth, while we remain focused on executing on our current asset pipeline and ensuring that we maintain the strength of our balance sheet," said Mr. Garofalo. "The transaction will be accretive to Hudbay shareholders on key per share metrics and both Hudbay and Augusta shareholders will benefit from our ability to leverage our 87-year history of successful project execution and operations."

Hudbay's board of directors has declared a semi-annual dividend in the amount of $0.01 per common share, payable on March 31, 2014 to shareholders of record on March 14, 2014.

Financial and Operating Results

Total revenue for the fourth quarter of 2013 was $136.1 million, $44.9 million lower than the same period in 2012. This decrease was primarily due to lower inventory balances on hand in 2013 resulting in lower copper and zinc sales volumes compared to the fourth quarter of 2012. Also, as reported in the company's news release on January 8, 2014, copper production was below expectations in the fourth quarter. Grades mined at 777 were affected by the deferral of higher grade zones from the 2013 mine plan to future years as a result of temporary limitations in paste backfill availability and requirements for ground support in the higher grade zones. While rehabilitation work will continue in 2014, Hudbay remains on track to achieve full year 2014 metals production and cost guidance.

Fourth quarter 2013 ore production at Hudbay's Manitoba business unit was 13% higher than the prior year's fourth quarter as a result of a full quarter of production at the Lalor and Reed mines. Overall mine operating costs per tonne were 15% higher than the prior year's quarter due to the rehabilitation costs at 777 and higher costs of production from the Lalor mine. The latter are expected to decrease in the second half of 2014 when the main Lalor production shaft is commissioned and the production rate is doubled. The operating cost per tonne of ore processed in the fourth quarter of 2013 at the Flin Flon concentrator was 4% lower than the same period in 2012 as a result of increased ore throughput. Operating costs at the Snow Lake concentrator for the fourth quarter of 2013 were 19% lower than the same period in 2012 as a result of increased throughput in the plant.

Cash Flows

Operating cash flow before stream deposit and change in non-cash working capital was $0.8 million for the fourth quarter of 2013, a $5.2 million decrease compared with the same period in 2012, primarily due to lower inventory balances on hand in 2013 resulting in lower copper and zinc sales volumes compared to the fourth quarter of 2012.

Cash and cash equivalents decreased by $705.7 million from December 31, 2012 to $631.4 million as at December 31, 2013. This decrease was primarily driven by $905.0 million in capital expenditures principally at the Lalor and Constancia projects, and interest and dividend payments of $58.5 million and $18.9 million, respectively. These expenditures were partially offset by proceeds of $261.4 million from the issuance of additional senior unsecured notes and the receipt of a US$125 million deposit under the precious metals stream transaction with Silver Wheaton Corp.

During 2014, Hudbay anticipates making $904 million in capital expenditures on the Constancia, Lalor and Reed projects, together with $110.4 million in accrued but unpaid expenditures on these projects. Hudbay has total pro-forma available and committed liquidity of approximately $1.4 billion, including $631 million in cash and cash equivalents at December 31, 2013, US$260 million in amounts due from Silver Wheaton, $173 million in gross proceeds from our January 2014 equity financing together with amounts available under the company's credit facilities and cash tax refunds expected to be received during the first half of 2014.


At Hudbay's 100% owned Constancia copper project in Peru, detailed engineering and procurement were substantially completed during 2013, with only minor process controls and final contracts outstanding. As at December 31, 2013, the project was over 56% complete. Of the total project capital budget of US$1.7 billion, Hudbay has incurred approximately US$1.03 billion in costs to December 31, 2013 and has entered into an additional US$319 million in commitments.

Hudbay continues to advance construction activities on the power transmission line from Tintaya to Constancia, with rights of way agreements in place for 100% of the alignment. The power line construction progress was 61% complete as at January 31, 2014. Hudbay is currently commissioning mining equipment and training operators and expects to begin pre-stripping late in the first quarter of 2014. SAG and ball mill shells and heads are 100% assembled, with trunnion installation and pinion and girth gear assembly upcoming, followed by liner installation and electromechanical tasks. Installation and assembly of the float cells is complete with work ongoing in structural steel and electromechanical equipment. Hudbay is conducting steel erection at the plant site and productivity is advancing well. Water capture for operations began in December 2013. Dam construction on the east tailings facility is well underway and on schedule. Bog removal in the east tailings facility is near completion and geomembrane liner installation continues with excellent progress.

In accordance with the agreements the company has entered into with local communities, Hudbay has delivered new homes to 29 of 36 families and has constructed a total of 32 homes. The relocation of these families is in progress. In the initial area required for operations, agreements with the three families yet to move have now been reached, and to date there has been no impact on Hudbay's schedule. Negotiations to secure surface rights over the Pampacancha deposit are expected to commence in the near future.

Hudbay has received approval of all required construction permits. In the third quarter of 2013, Hudbay received approval of its Environmental and Social Impact Assessment ("ESIA") Modification 1 and submitted an application for a second amendment to the ESIA in December 2013 in respect of the final project configuration and to permit the incorporation of Pampacancha into the mine plan. Hudbay has received the first round of observations from the Ministry on ESIA Modification 2 and is addressing them with no critical items noted. All permitting remains on schedule. Hudbay has also obtained approval for the early refund of value added tax on purchases with retroactive effect to December 2012 and has received its first refund of US$21 million from the tax authorities in January 2014. Also in December 2013, Hudbay entered into a 15-year tax and fiscal stability agreement with the government of Peru.


Of the total mine construction budget of $441 million, Hudbay has invested approximately $381 million at its 100% owned Lalor project in Manitoba to December 31, 2013 and has entered into an additional $32 million in commitments. The underground mine remains on schedule and on budget. Hudbay is continuing underground project development and has completed the excavation of the production shaft to the 985 metre level. Hudbay has completed the steel guide installation to the 220 metre level as at January 31, 2014 and is planning to complete the installation in the second quarter of 2014. Underground construction on the ore and waste handling systems and main dewatering is proceeding on schedule. Hudbay has now completed the final engineering for the surface exhaust fan installation which will be built after the main ventilation shaft hoist is dismantled. Hudbay has completed the final planning for the office/changehouse and final site layout. The company expects to receive the Environmental Act licence, which permits mining from the production shaft, in the ordinary course.


Of Hudbay's $72 million estimated capital construction budget, the company has invested approximately

$63 million at its 70% owned Reed project in Manitoba to December 31, 2013 and has entered into an additional $4 million in commitments. As of January 31, 2014, project development had advanced 2,004 metres with an additional 598 metres of pre-production development for a total 2,602 metres of advancement. The project is on budget and on schedule and is expected to reach commercial production by the second quarter of 2014.

Key Financial Results

($000s except per share and cash     Three Months Ended          Year Ended 
 cost amounts)                              December 31         December 31 
                                         2013      2012      2013      2012 
Revenue                               136,082   180,994   516,801   702,550 
(Loss) profit before tax              (33,693)   24,509   (56,004)   48,381 
Basic and diluted (loss) earnings                                           
 per share(1)                           (0.32)     0.05     (0.59)    (0.12)
Profit (loss) for the period          (61,481)    8,143  (109,276)  (23,463)
Operating cash flow(2,3)                  762     6,002     9,849   142,957 
Operating cash flow per share(3)            -      0.03      0.06      0.83 
Cash cost, after by-product credits                                         
 (per pound)(3)                          2.16      1.99      1.91      1.11 
(1) Attributable to owners of the company.                                  
(2) Before stream deposit and change in non-cash working capital.           
(3) Refer to "Non-IFRS Financial Performance Measures" below.               
($000s except per share and cash cost amounts)   December 31,   December 31,
                                                         2013           2012
Cash and cash equivalents                             631,427      1,337,088
Total assets                                        3,843,986      3,476,497

Non-IFRS Financial Performance Measures

Operating cash flow per share and cash costs per pound of copper sold ("cash cost") are included in this news release because the company believes that, in the case of operating cash flow per share, it helps investors to evaluate changes in cash flow while taking into account changes in shares outstanding, and in the case of cash costs, they help investors assess the performance of the Company's operations. These measures do not have a meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently.

Operating cash flow per share

The following table presents Hudbay's calculation of operating cash flow per share for the three months and year ended December 31, 2013 and December 31, 2012:

                                  Three Months Ended              Year Ended
($000s except share and per      Dec. 31     Dec. 31     Dec. 31     Dec. 31
 share amounts)                     2013        2012        2013        2012
Operating cash flow before                                                  
 stream deposit and change in                                               
 non-cash working capital            762       6,002       9,849     142,957
Weighted average shares                                                     
 outstanding                 172,078,376 171,975,800 172,048,434 171,960,783
Operating cash flow per share          -        0.03        0.06        0.83

Cash cost per pound of copper sold

Cash cost per pound of copper sold is a non-IFRS measure that management uses as a key performance indicator to assess the performance of the company's operations. Hudbay's calculation designates copper as its primary metal of production as it is currently, and is expected to be, the largest component of revenues. The calculation is presented in two manners:

--  Cash cost per pound of copper sold, before by-product credits - This
    measure is gross of by-product revenues and is a function of the efforts
    and costs incurred to mine and process all ore mined. However, the
    measure divides this aggregate cost over only pounds of copper sold,
    Hudbay's primary metal of production. This measure is generally less
    volatile from period to period, as it is not affected by changes in the
    price received for by-product metals. It is, however, significantly
    affected by the relative mix of metal sales, and an increase in
    production of a by-product metal will tend to result in an increase in
    cash costs under this measure, regardless of the profitability of the
    increased by-product metal production. 
--  Cash cost per pound of copper sold, net of by-product credits - In order
    to calculate the cost to produce and sell copper, the net of by-product
    credits measure subtracts the revenues realized from the sale of the
    metals other than copper. The by-product revenues from zinc, gold and
    silver are significant and are integral to the economics of Hudbay. The
    economics that support Hudbay's decision to produce and sell copper
    would be different if the company did not receive revenues from the
    other significant metals being extracted and processed. This measure
    provides management and investors with an indication of the minimum
    copper price consistent with positive operating cash flows and operating
    margins, assuming by-product metal prices are consistent with those
    prevailing during the reporting period. It also serves as an important
    operating statistic that management and investors utilize to measure
    Hudbay's operating performance versus that of its competitors. However,
    it is important to understand that if by-product metal prices decline
    alongside copper prices, the cash cost net of by-product credits would
    increase, requiring a higher copper price than that reported to maintain
    positive cash flows and operating margins. 

The following table presents Hudbay's calculation of gross cash cost per    
pound of copper sold and cash cost per pound of copper sold, net of by-     
product credits for the three months and year ended December 31, 2013 and   
(000's)                              Three Months Ended          Year Ended 
                                      Dec. 31   Dec. 31   Dec. 31   Dec. 31 
                                         2013      2012      2013      2012 
By product credits:                                                         
Zinc                                  (54,956)  (62,688) (219,125) (222,570)
Gold                                  (25,297)  (36,070)  (99,531) (131,770)
Silver                                 (3,813)   (6,311)  (14,368)  (20,979)
Other                                  (1,086)   (1,517)   (5,796)   (6,364)
Total by product credits              (85,152) (106,586) (338,820) (381,683)
Less: deferred revenue                 16,998    29,322    69,088    29,322 
Less: pre-production credits            2,731       115    12,519       115 
Total by product credits, net of                                            
 pre-production credits               (65,423)  (77,149) (257,213) (352,246)
By product credits, per net copper                                          
 pound sold:                                                                
Zinc                                    (3.45)    (2.66)    (3.58)    (2.32)
Gold                                    (1.59)    (1.53)    (1.63)    (1.38)
Silver                                  (0.24)    (0.27)    (0.23)    (0.22)
Other                                   (0.06)    (0.06)    (0.09)    (0.06)
Total by product credits                (5.34)    (4.52)    (5.53)    (3.98)
Less: deferred revenue                   1.06      1.24      1.13      0.30 
Less: pre-production credits             0.17         -      0.20         - 
Total by product credits, net of                                            
 pre-production credits                 (4.11)    (3.28)    (4.20)    (3.68)
Cash Cost, before by-product credits   99,857   124,059   373,906   458,934 
By-product credits, net of pre-                                             
 production credits                   (65,423)  (77,149) (257,213) (352,246)
Cash Cost, after by-product credits    34,434    46,910   116,693   106,688 
Pounds of copper sold                  16,735    23,553    63,280    95,821 
Less: pre-production pounds of                                              
 copper sold                              799         -     2,052         - 
Net pounds of copper sold              15,936    23,553    61,228    95,821 
Cash Cost, Before by-product credits                                        
 (per pound)                             6.27      5.27      6.11      4.79 
By-product credits (per pound)          (4.11)    (3.28)    (4.20)    (3.68)
Cash Cost, After by-product credits                                         
 (per pound)                             2.16      1.99      1.91      1.11 
Reconciliation to IFRS:                                                     
Cash Cost, after by-product credits    34,434    46,910   116,693   106,688 
By-product credits                     85,152   106,586   338,820   381,683 
Change in deferred revenues           (16,998)  (29,322)  (69,088)  (29,322)
Pre-production revenue                 (2,731)     (115)  (12,519)     (115)
Treatment and refining charges         (5,332)   (5,529)  (19,853)  (22,709)
Share based payment                       337       505     1,021     1,377 
Adjustments related to zinc                                                 
 inventory write-downs (reversals)      5,011    (1,955)    5,011    (5,420)
Demolition and rehabilitation               -       555         -       684 
Cost of sales - operating costs                                             
 (excluding depreciation)              99,873   117,635   360,085   432,866 

Cash cost after by-product credits in the fourth quarter of 2013 was $2.16/lb, compared to $1.99/lb for the same period in 2012 due to higher per unit operating costs as Lalor ramps up to capacity by the second half of 2014, and lower realized copper grades at 777, as a result of the deferral of certain high-grade copper zones from the 2013 mining plan.

Cash cost after by-product credits for the year ended December 2013 was $1.91/lb, compared to $1.11/lb for the same period in 2012 due to the same factors that affected fourth quarter cash costs and also due to lower production volumes over the full year as a result of the planned closures of the Trout Lake and Chisel North mines in the second half of 2012.

Website Links



Management's Discussion and Analysis:


Financial Statements:


Conference Call and Webcast

Date:                    Thursday, February 20, 2014                        
Time:                    10 a.m. ET                                         
Webcast:                 http://www.hudbayminerals.com/                     
Dial in:                 416-644-3415 or 877-974-0445                       
Replay:                  416-640-1917 or 877-289-8525                       
Replay Passcode:         4659423#                                           

The conference call replay will be available until midnight (Eastern Time) on February 27, 2014. An archived audio webcast of the call also will be available on Hudbay's website.

Qualified Persons

The technical and scientific information in this news release related to the Constancia project has been approved by Cashel Meagher, P. Geo, Hudbay's Vice-President, South America. The technical and scientific information related to all other sites and projects contained in this news release has been approved by Robert Carter, P. Eng, Hudbay's Director, Technical Services. Messrs. Meagher and Carter are qualified persons pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Forward-Looking Information

This news release contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian and United States securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "guidance", "scheduled", "estimates", "forecasts", "strategy", "target", "intends", "objective", "goal", "understands", "anticipates" and "believes" (and variations of these or similar words) and statements that certain actions, events or results "may", "could", "would", "should", "might" "occur" or "be achieved" or "will be taken" (and variations of these or similar expressions). All of the forward-looking information in this news release is qualified by this cautionary note.

Forward looking information includes, but is not limited to, statements with respect to the anticipated timing, mechanics, completion and settlement of the Offer , the market for and listing of the common shares Hudbay may issue pursuant to the Offer, the value of the Hudbay common shares that may be received as consideration under the Offer, Hudbay's ability to complete the transactions contemplated by the Offer, the permitting, development and financing of Augusta's Rosemont project, the purpose of the Offer, the completion of any compulsory acquisition or subsequent acquisition transaction in connection with the Offer and any commitment to acquire outstanding shares of Augusta, Hudbay's objectives, strategies, intentions, expectations and guidance and future financial and operating performance and prospects, Hudbay's expectation as to the use of proceeds from the recently completed equity offering, production at Hudbay's 777, Lalor and Reed mines and initial production from the Constancia project, continued processing at Hudbay's Flin Flon concentrator, Snow Lake concentrator and Flin Flon zinc plant, Hudbay's ability to complete the development of Hudbay's Lalor, Constancia and Reed projects and the anticipated scope and cost of any development plans for these projects, anticipated timing of Hudbay's projects and events that may affect Hudbay's projects, including the anticipated issue of required licenses, our expectation that Hudbay will receive the remaining deposit amounts under our amended precious metals stream transaction with Silver Wheaton Corp. and additional funding under Hudbay's equipment financing transaction with Caterpillar Financial Services Corporation, expectations with respect to additional credit facilities, the anticipated effect of external factors on revenue, such as commodity prices, anticipated exploration and development expenditures and activities and the possible success of such activities, estimation of mineral reserves and resources, mine life projections, timing and amount of estimated future production, reclamation costs, economic outlook, government regulation of mining operations, and business and acquisition strategies.

Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that Hudbay identified and were applied by the company in drawing conclusions or making forecasts or projections set out in the forward looking information include, but are not limited to:

--  the success of mining, processing, exploration and development
--  the accuracy of geological, mining and metallurgical estimates; 
--  the costs of production; 
--  the supply and demand for metals Hudbay produces; 
--  no significant and continuing adverse changes in financial markets,
    including commodity prices and foreign exchange rates; 
--  the supply and availability of concentrate for Hudbay's processing
--  the supply and availability of reagents for Hudbay's concentrators; 
--  the availability of third party processing facilities for Hudbay's
--  the supply and availability of all forms of energy and fuels at
    reasonable prices; 
--  the availability of transportation services at reasonable prices; 
--  no significant unanticipated operational or technical difficulties; 
--  the execution of Hudbay's business and growth strategies, including the
    success of Hudbay's strategic investments and initiatives; 
--  the availability of financing for Hudbay's exploration and development
    projects and activities; 
--  the ability to complete project targets on time and on budget and other
    events that may affect Hudbay's ability to develop Hudbay's projects; 
--  the timing and receipt of various regulatory and governmental approvals;
--  the availability of personnel for Hudbay's exploration, development and
    operational projects and ongoing employee relations; 
--  Hudbay's ability to secure required land rights to complete its
    Constancia project; 
--  maintaining good relations with the communities in which Hudbay
    operates, including the communities surrounding the Constancia project
    and First Nations communities surrounding the Lalor and Reed projects; 
--  no significant unanticipated challenges with stakeholders at Hudbay's
    various projects; 
--  no significant unanticipated events or changes relating to regulatory,
    environmental, health and safety matters; 
--  no contests over title to Hudbay's properties, including as a result of
    rights or claimed rights of aboriginal peoples; 
--  the timing and possible outcome of pending litigation and no significant
    unanticipated litigation; 
--  certain tax matters, including, but not limited to current tax laws and
    regulations and the refund of certain value added taxes from the
    Canadian and Peruvian governments; 
--  no significant and continuing adverse changes in general economic
    conditions or conditions in the financial markets; and 
--  the accuracy of Augusta's public disclosure; 

The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, the impact of the issuance of Hudbay's common shares as consideration under the Offer on the market price of Hudbay's common shares, the development of the Rosemont project not occurring as planned, the exercising of dissent and appraisal rights by Augusta shareholders should a compulsory acquisition or subsequent acquisition transaction be undertaken in connection with the Offer, Augusta becoming a majority-owned subsidiary of Hudbay after consummation of the Offer, the inaccuracy of Augusta's public disclosure upon which the Offer is predicated, the triggering of change of control provisions in Augusta's agreements leading to adverse consequences, the failure to obtain the required approvals or clearances from government authorities on a timely basis, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), uncertainties related to the development and operation of Hudbay's projects (including the impact on project cost and schedule of construction delays and unforeseen risks and other factors beyond Hudbay's control), depletion of Hudbay's reserves, risks related to political or social unrest or change and those in respect of aboriginal and community relations, rights and title claims, operational risks and hazards, including unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, dependence on key personnel and employee relations, volatile financial markets that may affect Hudbay's ability to obtain financing on acceptable terms, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, Hudbay's ability to comply with Hudbay's pension and other post-retirement obligations, Hudbay's ability to abide by the covenants in Hudbay's debt instruments or other material contracts, tax refunds, hedging transactions, as well as the risks discussed under the heading "Risk Factors" in Hudbay's Management's Discussion and Analysis for the fourth quarter of 2013.

Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, you should not place undue reliance on forward-looking information. Hudbay does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.

Information Concerning Augusta

Except as otherwise expressly indicated herein, the information concerning Augusta contained in this news release has been taken from and is based solely upon Augusta's public disclosure on file with the relevant securities regulatory authorities. Augusta has not reviewed this document and has not confirmed the accuracy and completeness of the information in respect of Augusta contained in this news release. Although Hudbay has no knowledge that would indicate that any information or statements contained in this news release concerning Augusta taken from, or based upon, such public disclosure contain any untrue statement of a material fact or omit to state a material fact that is required to be stated or that is necessary to make a statement not misleading in light of the circumstances in which it was made, none of Hudbay's directors or officers have verified, nor do they assume any responsibility for, the accuracy or completeness of such information or statements or for any failure by Augusta to disclose events or facts which may have occurred or which may affect the significance or accuracy of any such information or statements but which are unknown to Hudbay. Hudbay has no means of verifying the accuracy or completeness of any of the information contained herein that is derived from Augusta's publicly available documents or records or whether there has been any failure by Augusta to disclose events that may have occurred or may affect the significance or accuracy of any information. Except as otherwise indicated, information concerning Augusta is given based on information in Augusta's public disclosure available as of the date hereof.

Cautionary Note in Respect of the Offer

The full details of the Offer are set out in the takeover bid circular and accompanying offer documents (collectively, the "Offer Documents"), which Hudbay filed with the Canadian securities regulatory authorities. Hudbay also filed with the SEC a registration statement on Form F-10 (the "Registration Statement"), which contains a prospectus relating to the Offer (the "Prospectus"), and a tender offer statement on Schedule TO (the "Schedule TO"). The disclosure related to the Offer in this news release is not a substitute for the Offer Documents, the Prospectus, the Registration Statement or the Schedule TO. AUGUSTA SHAREHOLDERS AND OTHER INTERESTED PARTIES ARE URGED TO READ THESE DOCUMENTS, ALL DOCUMENTS INCORPORATED BY REFERENCE, ALL OTHER APPLICABLE DOCUMENTS AND ANY AMENDMENTS OR SUPPLEMENTS TO ANY SUCH DOCUMENTS WHEN THEY BECOME AVAILABLE, BECAUSE EACH WILL CONTAIN IMPORTANT INFORMATION ABOUT HUDBAY, AUGUSTA AND THE OFFER. Materials filed with the Canadian securities regulatory authorities are available electronically without charge at www.sedar.com. Materials filed with the SEC are available electronically without charge at the SEC's website at www.sec.gov. All such materials may also be obtained without charge at Hudbay's website, www.hudbayminerals.com or by directing a written or oral request to the Information Agent for the Offer, Kingsdale Shareholder Services Inc. at 1-866-229-8874 (North American Toll Free Number) or 1-416-867-2272 (outside North America), or by email at [email protected] or to the Vice President, Legal and Corporate Secretary of Hudbay at 25 York Street, Suite 800, Toronto, Ontario, telephone (416) 362-8181.

The Offer does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction in which such an offer or solicitation is unlawful.

About Hudbay

Hudbay (TSX:HBM) (NYSE:HBM) is a Canadian integrated mining company with assets in North and South America principally focused on the discovery, production and marketing of base and precious metals. Hudbay's objective is to maximize shareholder value through efficient operations, organic growth and accretive acquisitions, while maintaining its financial strength. A member of the S&P/TSX Composite Index and the S&P/TSX Global Mining Index, Hudbay is committed to high standards of corporate governance and sustainability. Further information about Hudbay can be found on www.hudbayminerals.com.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT's direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...