Each one in plain English, with the numbers worked through for a shareholder.
10 Jan 2014capital raising announcement● NeutralMajor
On January 9, 2014 Hudbay agreed with underwriters to sell 18,200,000 new common shares at C$8.25 each, for gross proceeds of C$150,150,000, with an over-allotment option for up to 2,730,000 more shares (C$172,672,500 in total if fully used). Closing was scheduled for about January 30, 2014, subject to approvals, and the money is for general corporate purposes, including flexibility to pursue opportunities to advance its growth strategy. For shareholders this means new shares being issued, so existing holders' ownership share is diluted, which is a first equity raise after the 2012-2013 note issues.
On December 9, 2013 Hudbay closed another US$100 million of its 9.50% senior unsecured notes due 2020, priced at 100% for US$100 million of gross proceeds. This brings the notes to US$750 million, after US$500 million in September 2012 and US$150 million in June 2013. Proceeds are for general corporate purposes and developing Lalor and Reed in Manitoba and Constancia in Peru.
On June 20, 2013 Hudbay closed a sale of an additional US$150 million of its 9.50% senior unsecured notes due 2020, priced at 102% for gross proceeds of US$153 million. These add to the US$500 million of the same notes issued in September 2012, and the money is for general corporate purposes and developing Lalor and Reed in Manitoba and Constancia in Peru. Scotiabank and CIBC also committed, subject to customary conditions, to replace the existing US$300 million revolving credit facility with a US$100 million, three-year facility that would remove or revise the EBITDA-based financial covenants; this was not yet completed in the filing.
Filed on March 28, 2013, this is a routine package accompanying the annual information form: CEO David Garofalo's and CFO David Bryson's certifications of the 2012 annual filings, and consents from qualified persons for the 777 mine and Constancia technical reports. It carries no new operating or financial information.
Filed on November 7, 2012, this carries a technical report on the Constancia project in Peru (effective October 15, 2012), prepared for Hudbay by Cashel Meagher and Michael Humphries. It covers Constancia and Pampacancha, the assets gained through the Norsemont deal, and follows the 2011 aim of a construction decision. The portion shown does not include the resource, reserve, cost or economic figures, so none are stated here.
Filed on November 7, 2012, this carries a technical report on the 777 mine in Flin Flon, Manitoba (effective October 15, 2012), written by Hudbay staff, with qualified-person certificates. The portion shown covers the report's contents list and the certificates, not its findings, so no new resource, reserve or cost numbers are stated here. The report's contents list mentions a precious metals stream transaction and the 777 North expansion.
Filed on March 30, 2012, this carries a Hudbay technical report (pre-feasibility study, effective March 29, 2012) on the Lalor deposit at Snow Lake, Manitoba, plus consents and certificates from four Hudbay-employed qualified persons. It continues the Lalor development thread from the 2011 outlook. The portion shown does not include the study's reserve, cost or economic figures, so no numbers are stated here.
8 Aug 2011asset acquisition disposition● NeutralMajor
On August 5, 2011 HudBay agreed to sell its entire interest in the Fenix ferro-nickel project in Guatemala to the Solway Group for US$140 million cash at closing plus US$30 million if certain conditions are met during Solway's development. HudBay expects a non-cash charge of about $212.7 million for Fenix in its quarter ended June 30, 2011, and closing was expected in the third quarter of 2011. Management said Fenix did not fit its focus on VMS and porphyry deposits, and the proceeds are meant to support Lalor and Constancia.
In June 2011 HudBay reported a drill hole at Pampacancha, 2.5 km from the proposed Constancia pit in Peru (the project it gained through the Norsemont deal), that cut 121.45 meters grading 1.62% copper (2.4% copper equivalent). The area is open to the west and south and drilling continues. HudBay also said it aims for a Constancia construction decision by early 2012.
On January 10, 2011 HudBay agreed to buy Norsemont Mining, owner of the Constancia copper project in Peru, through a take-over bid valuing Norsemont's equity at about $520 million. Norsemont shareholders can take 0.2617 HudBay shares plus $0.001, or $4.50 cash, with total cash capped at $130 million; if all elect shares, former Norsemont holders would own about 17% of HudBay. Holders of about 35.6% of Norsemont (including HudBay's own 1.1%) are committed to tender; HudBay says it expects copper output to grow about 145% from 2011 to 2016. This extends the December 2010 growth plans (Lalor) to a second major project.
On December 13, 2010 HudBay gave its 2011 outlook: about $289 million of capital spending (about $184 million on growth, including about $163 million at Lalor) and about $59 million of exploration. It expects 2011 metal output to be similar to 2010 (zinc 70,000-90,000 tonnes, copper 40,000-55,000 tonnes, gold equivalent 95,000-120,000 ounces), with the Trout Lake mine expected to close in late 2011. It reported $852 million of cash at September 30, 2010 and an undrawn $300 million credit facility, plus new drill results at Lalor and Reed Lake.
In June 2005 HudBay agreed with a group of investment dealers led by GMP Securities to sell up to 2,192,983 flow-through common shares at $3.42 each, for up to about $7.5 million. The money is for exploration and development on its Manitoba and Saskatchewan properties, as the second stage of a planned exploration program of up to $10 million in the Flin Flon Greenstone Belt over the next 12 months. Closing was expected around June 22, 2005, subject to approvals including the Toronto Stock Exchange.
