Hudbay Provides Update on its 777 Mine
October 26 2020 - 8:00AM
Hudbay Minerals Inc.
(“Hudbay” or the “company”) (TSX, NYSE:
HBM) today provides an update on the inspection
completed to date at its 777 Mine in Flin Flon, Manitoba, following
the skip hoist incident announced on October 11th. A preliminary
video inspection of the mine shaft indicates that damage is limited
to the headframe and the bottom of the shaft in the skip
compartment. It does not appear that the cage compartments or the
ore loading area were damaged, and the structural integrity of the
shaft does not appear to have been compromised by the incident. A
full inspection of the shaft and skip compartment will require an
in-person inspection, which is expected in early November.
Underground mining activity has resumed at 777
with limited production from the mine’s ramp access. If it is
confirmed there is no further damage beyond what has been
identified to date, it is expected that the 777 shaft could resume
full production in December at a repair cost that is not expected
to exceed $5.0 million.
While fourth quarter production and sales
volumes will be impacted, the company is implementing production
mitigation plans and continues to expect the Manitoba business unit
to achieve its full year production and unit cost guidance for
2020.
Forward-Looking Information
This news release contains forward-looking
information within the meaning of applicable Canadian and United
States securities legislation. Forward-looking information
includes, but is not limited to, the ability to complete the shaft
inspection activities at 777 in the anticipated timeframe, the
ability to identify the extent of any damage to the mine shaft, the
expected timeline to complete repairs, the expected costs to repair
the damage at the 777 shaft, the ability to continue production and
use of the mine′s ramp access as a temporary substitute to the
shaft, the expected timeline to resume full production at 777, and
the company’s ability to achieve production and cost guidance.
Forward-looking information is not, and cannot be, a guarantee of
future results or events. Forward-looking information is based on,
among other things, opinions, assumptions, estimates and analyses
that, while considered reasonable by the company at the date the
forward-looking information is provided, inherently are subject to
significant risks, uncertainties, contingencies and other factors
that may cause actual results and events to be materially different
from those expressed or implied by the forward-looking
information.
The material factors or assumptions that Hudbay
identified and were applied by the company in drawing conclusions
or making forecasts or projections set out in the forward-looking
information include, but are not limited to, the outcome of the
inspections at the 777 mine, the ability and cost to remedy the
damage and resume production, the ability to mitigate production
while the shaft is not operating and the ability to achieve
production and unit cost guidance.
The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to, risks generally associated
with the mining industry, such as economic factors (including
future commodity prices, currency fluctuations, energy prices and
general cost escalation) and mining operations, as well as the
risks discussed under the heading “Risk Factors” in Hudbay’s most
recent Annual Information Form.
Should one or more risk, uncertainty,
contingency or other factor materialize or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, you should not place undue reliance on forward-looking
information. Hudbay does not assume any obligation to update or
revise any forward-looking information after the date of this news
release or to explain any material difference between subsequent
actual events and any forward-looking information, except as
required by applicable law.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a diversified mining
company primarily producing copper concentrate (containing copper,
gold and silver) and zinc metal. Directly and through its
subsidiaries, Hudbay owns three polymetallic mines, four ore
concentrators and a zinc production facility in northern Manitoba
and Saskatchewan (Canada) and Cusco (Peru), and copper projects in
Arizona and Nevada (United States). The company’s growth strategy
is focused on the exploration, development, operation and
optimization of properties it already controls, as well as other
mineral assets it may acquire that fit its strategic criteria.
Hudbay’s vision is to be a responsible, top-tier operator of
long-life, low-cost mines in the Americas. Hudbay’s mission is to
create sustainable value through the acquisition, development and
operation of high-quality, long-life deposits with exploration
potential in jurisdictions that support responsible mining, and to
see the regions and communities in which the company operates
benefit from its presence. The company is governed by the Canada
Business Corporations Act and its shares are listed under the
symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange
and Bolsa de Valores de Lima. Further information about Hudbay can
be found on www.hudbay.com.
For further information, please contact:
Candace BrûléDirector, Investor Relations(416)
814-4387candace.brule@hudbay.com
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