August 10, 2011 / 12:27 AM / in 6 years

UPDATE 1-HudBay Minerals Q2 loss widens

* Q2 loss/shr C$0.97 vs C$0.92

* Q2 rev rises 32 pct to C$246.8 mln

Aug 9 (Reuters) - Canadian base metal and precious metal miner HudBay Minerals (HBM.TO) on Tuesday reported a wider second-quarter loss, hurt by pre-tax impairment losses of $212.7 million on its Fenix project.

Net loss in the quarter ended June 30, was C$171.9 million, or 97 Canadian cents a share. That compared with a year-ago loss of C$156.8 million, or 92 Canadian cents a share.

Quarterly revenue rose 32 percent to C$246.8 million as a result of higher metal prices and higher sales volumes.

HudBay, which has operations spread across the Americas, recently announced plans to sell its Fenix ferro-nickel project in Guatemala to Russia’s Solway Group for US$170 million, as it did not fit into the company’s strategy.

At the time, the company said it would record a non-cash charge of about C$210 million related to its investment in Fenix. [ID:nL3E7J54R5]

HudBay expects the Fenix transaction to close in the third quarter of 2011.

Shares of Toronto, Ontario-based Hudbay closed at C$11.80 on Monday on the Toronto Stock Exchange. (Reporting by Amruta Sabnis in Bangalore; Editing by Gary Hill)

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