Globe/CP say HudBay has cash stash to help it grow

2008-03-19 06:20 ET - In the News

The Globe and Mail reports in its Wednesday, March 19, edition that despite the challenges of a strong loonie and higher production costs, HudBay Minerals says it has the money to build its operations. A Canadian Press dispatch to The Globe reports that although profit dropped by 60 per cent in 2007, Jeff Swinoga, the company's chief financial officer, told a conference call Tuesday that "our operating cash flow was $478-million, only 3-per-cent lower than what we generated in 2006." With cash and cash equivalents of $738-million, "our strong financial position gives us the financial flexibility to pursue our growth plans." Mr. Swinoga said the company has set its 2008 exploration budget at $42.8-million. HudBay expects growth in zinc production compared with last year. HudBay forecasts volumes of gold, silver and copper to be flat. HudBay stock retreated 30 cents to end Tuesday in Toronto at $16.50. Canaccord Adams analyst Gary Lampard upgraded HudBay stock to "buy" from "hold" in The Globe's Eye On Equities column on Aug. 17. It was then trading at $22.90. The Globe reported on July 25 that HudBay was a "top pick" of Desjardins Securities analyst John Hughes when it was trading at $27.50.