Hudbay Minerals to Introduce Revised Plan for Copper Mountain Mine
New Realistic Projections on the Horizon
Hudbay Minerals is set to release a new technical report on the Copper Mountain mine in British Columbia, aiming to replace the previous owner's optimistic forecasts with more grounded expectations.
Revising Previous Estimates
After acquiring the mine in June for US$439 million, Hudbay's leaders have indicated that the former projections for the mine's output were excessively high. The updated report, expected by the end of the year, will likely feature a reduced estimate in reserves and a refined mine plan.
Strategic Shift in Operations
In place of the projected expansion, Hudbay plans to prioritize accessing higher-grade areas of the mine through an intensive short-term stripping campaign. This shift towards a more prudent operational approach is anticipated to stabilize and enhance the mine's performance.
Aligning with Past Data
The upcoming report will also draw on Hudbay's internally developed plan, informed by historical data and resource modelling techniques similar to those used in the company's Peru operations. This methodology is expected to yield a more accurate model that aligns with the mill's actual output.
Financial and Operational Highlights
Despite the strategic recalibration, Hudbay reported strong third-quarter earnings, bolstered by robust copper and gold production. The company's financial position has improved, with increased liquidity and reduced net debt, positioning them to meet their 2023 guidance across various metals.
Market Reaction
Following the announcement, Hudbay's shares saw a slight decline, reflecting investor reaction to the forthcoming adjustments to the Copper Mountain mine's plan.
