November 3, 2010 / 10:54 PM / 8 years ago

UPDATE 1-HudBay profit slumps on lower sales volume

* Q3 EPS $0.08 vs $0.13 in Q3 2009

* Revenue falls 16 pct on lower sales volume

* Excess inventory in quarter due to railcar delay

TORONTO, Nov 3 (Reuters) - HudBay Minerals (HBM.TO) said on Wednesday its third-quarter profit fell more than 40 percent on lower sales volumes, higher taxes and exploration expenses.

Net income in the quarter ended Sept. 30 was C$11.7 million, or 8 Canadian cents a share, down 41.5 percent from a year-ago profit of C$20 million, or 13 Canadian cents a share.

HudBay said sales of copper, gold and silver were hit by delays in its rail service providing railcars to transport copper concentrate.

The company reported revenue of C$163.4 million, down 16 percent from C$194.6 million from a year earlier.

HudBay said it had an excess inventory of 5,000 tonnes of copper and 7,800 ounces of gold at the end of the third quarter. Excess inventory will be drawn down in the first quarter of 2011.

Earlier this week, HudBay’s chief executive said the company expects its full-year gold, copper and zinc production to remain in line with previous forecasts. [ID:nN01174721]

In August, HudBay decided to move its Lalor project in the western Canadian province of Manitoba into construction after discovering more gold and copper deposits on the property.

The company expects gold production to double and zinc production to increase by 50 percent over the next five years. (Reporting by Euan Rocha and Julie Gordon)

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