HudBay profit falls on lower prices, higher costs

Thu Jul 31, 2008 10:12am EDT
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OTTAWA (Reuters) - Second-quarter profit at HudBay Minerals dropped 52 percent reflecting lower zinc prices and higher copper concentrate costs along with planned lower copper sales and a stronger Canadian dollar.

The mid-tier base metals miner said late on Wednesday that it earned C$33.2 million ($32.5 million), or 26 Canadian cents a share, in the quarter ended June 30.

That was down from $69.1 million, or 55 Canadian cents, in the year-before period.

Analysts had expected a profit of 25 Canadian cents a share before exceptional items, on average, according to Reuters Estimates.

Revenue fell 21 percent to C$284 million.

Shares in the Winnipeg, Manitoba-based company fell 2 percent, or 22 Canadian cents, to C$9.88 in early activity on the Toronto Stock Exchange on Thursday.

The company produced 17,384 tonnes of copper in the quarter, down 23.5 percent, while zinc production rose 9 percent to 33,672 tonnes.

The company said it cut copper smelter production to meet government air release targets for sulphur dioxide.

"Production is tracking well in relation to our full year," Chief Executive Allen Palmiere said in a statement. "We are seeing excellent results from our exploration program."   Continued...