Rosemont Mine Truth

Hudbay Minerals Inc. CEO David Garofalo will leave the parent company of the Rosemont Copper project at the end of the year to take over the helm of Goldcorp, one of the world’s largest gold miners.

Alan Hair

Hudbay’s Chief Operating Officer Alan T.C. Hair will become Hudbay’s next CEO.

Hair has been the company’s leader of its international operations that include the company’s largest mine in Peru and the Rosemont project in the Santa Rita Mountains on the Coronado National Forest southeast of Tucson.

“Alan is responsible for every aspect of the Company’s operations, business development, technical services, exploration and corporate social responsibility,” according to Hudbay’s website. Continue reading →

Hudbay Mineral’s is liquidating $34.5 million in previously purchased equipment and deposits on future equipment that was slated to be used at its proposed Rosemont copper mine but is no longer useful based on recent engineering studies.

Toronto-based Hudbay reports in its 3Q Management Discussion and Analysis that the equipment purchased and deposits made by Rosemont’s previous owner, Augusta Resource Corporation, are no longer needed. Hudbay, which mines copper and zinc at three Manitoba mines and recently opened the massive Constancia open-pit copper mine in Peru, acquired Augusta in 2014 in a $500 million stock deal.

The decision to unload unneeded equipment comes at the same time as Hudbay struggles with declining copper prices, mounting debt and steadily increasing stockpiles of unsold copper, gold and silver concentrate that has swelled from 6,000 tonnes at the end of the 1^st Quarter to more than 100,000 tonnes at the end of the 3^rd Quarter on Sept. 30. (A tonne is equal to 2,240 pounds.)

Hudbay states it decided to sell the Rosemont mine equipment following “the completion of a value engineering process in the second and third quarters of 2015.” Continue reading →

Hudbay Minerals Inc. stock continued its precipitous decline closing Wednesday at a six-year low of $4.13 a share on the New York Stock Exchange as fears of a slowing world economy continue to depress commodity prices.

Hudbay is proposing to construct the Rosemont Copper Mine in the Santa Rita Mountains on the Coronado National Forest southeast of Tucson.

The company’s stock has plummeted since closing at $10.28 on April 27 as copper prices continue to decline on weakening demand from China. Copper closed at $2.30 on the COMEX Wednesday, down from $2.90 in early May. Continue reading →

The Arizona Daily Star is reporting that Toronto-based Hudbay Minerals Inc. “remains committed” to constructing the Rosemont Copper Mine in the Santa Rita Mountains on the Coronado National Forest 35 miles southeast of Tucson.

“Hudbay remains committed to developing the Rosemont project and contributing to the community by creating jobs, providing a much needed economic boost, and operating in a safe and sustainable way,” Patrick Merrin, Hudbay vice president of the Arizona business unit, said in a written statement to the Daily Star.

Merrin’s statement comes as copper prices are hovering near six-year lows and major copper producers have announced sharp cutbacks in production and layoffs at Arizona copper mines.

It also comes as Hudbay’s stock has been beaten down by more than half since May 1 and increasing concern among analysts that the company will be unable to service $1.1 billion in debt, let alone finance construction of the Rosemont Mine. Continue reading →

Hudbay Minerals stock was pummeled Thursday to its lowest level in six years following the company’s announcement of an unexpected $55.2 million second-quarter loss, according to its 2nd Quarter Financial Statement.

Wall Street analysts were projecting Hudbay, the owner of the proposed Rosemont Mine, would post a $.14/share profit for the quarter ending June 30, but instead, the company finished with a ($.24/share) loss.

On Thursday, Hudbay’s stock lost 7.94% percent on the New York Stock Exchange, falling 52 points to close at $6.03 in heavy trading at 230,000 shares. The stock traded as low as $5.82 before recovering in late trading.

Hudbay’s stock has rebounded some, closing Monday at $6.27.

Hudbay CEO David Gar0falo

Hudbay’s Management Discussion & Analysis report states the company spent $13.8 million in the second quarter on the proposed Rosemont Mine bringing the total for the first six months of 2015 to $24.8 million.

Hudbay has $328.4 million in capital spending commitments if, and when, Rosemont construction begins, $192.1 million of which cannot be terminated. The proposed mine is located in the Santa Rita Mountains on the Coronado National Forest 35 miles southeast of Tucson. Continue reading →