With new copper production ramping up in each of the next three years, HudBay Min

PHOTO COURTESY OF HUDBAY MINERALS A HudBay Minerals Inc. copper smelter.

erals Inc. is set to “re-emerge as a multi-mine company,” Raymond James analyst Alex Terentiew wrote.

He calculated that the miner’s EBITDA is set to grow almost eightfold between 2013 and 2016. And on a total net asset value basis, he expects HudBay to be the largest gainer in its peer group between now and the end of next year. He upgraded the stock to outperform (from market perform) while boosting his price target by a quarter to $11.75 a share.

“Although the full extent of [HudBay’s] growth will not be realized until 2016, we view 2013 as a time to start accumulating HBM shares,” Mr. Terentiew wrote.

In 2013 alone, he expects HudBay to declare commercial production at its Lalor mine, begin production at the Reed Lake mine, and continue de-risking the Constancia project in Peru.

Mr. Terentiew does not consider Constancia a world-class project, but he noted there is room for “significant improvement” in his valuation if HudBay has more exploration success at the site.

He also wrote that if the company sold a 20% to 30% stake in Constancia, it would free up enough capital for a “sizable” acquisition. HUDBAY MINERALS HBM/TSX, $9,84, down 12¢