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TORONTO, ONTARIO -- (Marketwired) -- 05/01/13 -- HudBay Minerals Inc. ("Hudbay" or the "company") (TSX: HBM)(NYSE: HBM) today released its first quarter 2013 financial results. In the first quarter of 2013, Hudbay recorded a profit and earnings per share of $1.9 million and $0.01, respectively, compared to a profit and earnings per share of $3.4 million and $0.03, respectively, in the first quarter of 2012.
---------------------------------------------------------------------------- Pre-tax After-tax gain (loss) gain (loss) Per Share ($ millions) ($ millions) ($/share)Impairments and mark-to-market adjustment related to junior mining investments (1.9) (1.9) (0.01)Gain on mark-to-market of embedded derivative related to long term debt 1.8 1.8 0.01Impact on deferred tax expense of translation of Peruvian tax basis - (2.1) (0.01)Impact on deferred taxes of change in discount rates on decommissioning and restoration liabilities - 1.2 0.01Foreign exchange gain 4.5 3.0 0.02Loss as a result of provisional pricing adjustments (2.2) (1.4) (0.01)Loss on forward zinc purchase contracts related to fixed price customer sales (2.5) (1.8) (0.01)----------------------------------------------------------------------------
The first quarter of 2013 profit was affected by, among other things, the following items:
Financial and Operating Results
Total revenue for the first quarter of 2013 was $119.9 million, $67.1 million lower than the same period in 2012. This decrease was primarily due to lower sales volumes mainly as a result of the closures of Trout Lake and Chisel North mines and lower metals prices compared to the first quarter of 2012.
First quarter 2013 ore production at Hudbay's Manitoba business unit was 16% lower than the prior year's first quarter due to the planned permanent closures of the Trout Lake and Chisel North mines in June 2012 and September 2012, respectively, partially offset by production at Lalor. Overall mine operating costs per tonne were 6% lower than the prior year's quarter with the closure of the higher-cost Trout Lake and Chisel North mines, partially offset by higher operating costs per tonne of ore at the 777 mine.
Operating costs per tonne of ore at 777 in the first quarter of 2013 were 21% higher, compared to the same period in 2012, primarily due to increased contractor costs and additional ground support requirements. Additional contractor work was required at 777 in the past two quarters due to issues with equipment availability in the fall of 2012 that reduced operating development rates. Equipment availability has returned to normal levels, operating development progress is sufficient to support normal mining rates, and contractors are no longer assigned to operating development work. Full year unit operating costs at 777 are expected to be in line with guidance.
