March 5, 2009 / 12:51 AM / in 9 years

UPDATE 1-HudBay Minerals profit, revenue fall

*Q4 basic EPS C$0.10

*Q4 rev falls to C$178.8 mln from C$242.6 mln

NEW YORK, March 4 (Reuters) - HudBay Minerals (HBM.TO) posted a sharp drop in its fourth quarter results, as plunging copper and zinc prices hurt revenue, the company said on Wednesday.

HudBay, which recently saw a bid for Lundin Mining (LUN.TO) collapse due to opposition from its own shareholders, earned C$15.8 million ($12.39 million), or 10 cents a share, in the quarter ended Dec. 31.

That compared with a profit of C$28.4 million, or 22 a cents a share, in the year-ago period.

The company said its latest earnings were significantly impacted by sharply lower copper and zinc prices, offset in part by a foreign exchange gain in the fourth quarter.

Revenue fell to C$178.78 million from C$242.6 million as copper and zinc prices dropped.

HudBay launched a friendly takeover bid for Lundin last November but ran into resistance from its owns shareholders over concerns about Lundin’s shakier balance sheet and a massive share issue that would have been used to fund the transaction.

HudBay dropped the offer last month after the Ontario Securities Commission ruled it would have to hold a vote to approve the share issue. (C$1=$0.7839 US Dollar) (Reporting by Cameron French in Toronto and Sinead Carew in New York; Editing by Phil Berlowitz)

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