FP says start accumulating HudBay Minerals in 2013
Ticker Symbol: C:HBM

 

FP says start accumulating HudBay Minerals in 2013

 

HudBay Minerals Inc (C:HBM)
Shares Issued 171,973,287
Last Close 12/6/2012 $9.84
Friday December 07 2012 - In the News

The Financial Post reports in its Friday edition that Raymond James analyst Alex Terentiew believes HudBay Minerals is set to "re-emerge as a multimine company." The Post's Peter Koven writes in the Trading Desk column that Mr. Terentiew figures the miner's pretax earnings are set to grow almost eightfold between 2013 and 2016. 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 25 cents to $11.75 a share. He says, "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." 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 notes there is room for "significant improvement" in his valuation if HudBay has more exploration success at the site. He says if the company sold a 20-per-cent to 30-per-cent interest in Constancia, it would free up enough capital for a "sizable" acquisition.