As noted in the last series of posts HudBay is a company which is doing a lot of things right. The 2 location strategy- Northern Manitoba, and Peru both have the same philosophy- they are areas with multiple mine sites.

With advanced geophysics more ore bodies will be found in both northern manitoba and in Peru. Note that the company is building infastructure in Peru with a view to the longterm on the valid assumption that more ore will be found in the vicinity.  This strikes me as better than having multiple locations in the world as it is much easier to manage and to obtain economies of scale- with long term use of facilities.

HudBay has good working relations with a number of juniors both in Manitoba and Peru and these will generate more mineable resource. Recently Indico ("idi" ) picked up a great property from Vale and it is very close to HBM's Constancia such that I fully expect that this one is already on HBM's radar.

While the key assumption is that world demand for copper and other base metals will continue to grow the most recent plus for HudBay is in hiring Garofalo who appears to be focused and has a clear  strategy which is being executed as we speak.

Now it has been tough- since the stock was double its current price a couple of years ago- but in my view at this point it is a bargain- with significant additional production coming on line over the next 4 years all of which development  is financed. It has been the combination  of the new properties and Garofalo  that has kept me on board as I do believe- this stock will more than double in the next 3 years.

 

Rock