Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX,
NYSE:HBM) highlights its proven track record, successful
execution and strong corporate governance following Waterton Global
Resource Management’s (“Waterton”) news release naming its nominees
for election to the company’s Board of Directors at its next annual
shareholders’ meeting.
Proven Growth Strategy and World-Class
Asset Base
Hudbay’s Board and management remain committed
to the company’s disciplined approach to driving long-term and
sustainable value creation. Over the last several years, Hudbay has
grown beyond its Manitoba base through acquisition and exploration
into a leading mid-tier copper producer with low-cost, long-life
assets in Canada, Peru, Arizona, and most recently in Nevada with
the acquisition of the Ann Mason project.
History of Successful
Execution
Hudbay’s management team has a proven track
record of successful new mine development and expertise in both
open pit and underground mining. In 2015, Hudbay completed the best
in-class development and ramp-up of the Constancia mine in Peru,
which is now the lowest cost open-pit copper mine in South
America1. Constancia was a greenfield project in a new jurisdiction
for Hudbay and the strong community relationships the company has
built provides it with the social license to continue to grow its
Peruvian business.
During this time, Hudbay also completed the
construction of its Lalor underground mine in Manitoba, a deposit
that was discovered by Hudbay’s exploration team in 2007 and
achieved commercial production only seven years after its
discovery. In the first quarter of 2019, Hudbay expects to release
a new reserve and resource estimate at Lalor incorporating the
gold-rich zones, along with detailed plans relating to the
refurbishment of the New Britannia gold mill, which has significant
upside potential from nearby satellite deposits. This is one of the
many near-term catalysts that could materially increase the value
of the company. Strong Governance Track Record
Hudbay has an independent, diverse and
highly-qualified Board that has been consistently recognized for
its strong corporate governance practices:
- Hudbay is ranked in the top 20% for overall governance quality
by proxy advisor Institutional Shareholders Service (ISS)2;
- ISS has recommended for all directors over the last ten annual
meetings (2009 – 2018); and
- The company was ranked in the top 50 by The Globe and Mail’s
2018 Board Games Corporate Governance Ranking, the only base metal
miner to be ranked in the top 1003.
Hudbay’s strong corporate governance is
complemented by its ongoing commitment to board renewal as
evidenced by an average Board tenure of five years and the fact
that 60% of Hudbay’s current directors have joined the Board in the
last six years.
The company remains open to constructive
engagement with all shareholders. To that end, Hudbay previously
met with Waterton and invited it to privately share the names and
biographies of individuals it thought could potentially add value
to the Board. Rather than engaging with the Board through our
normal course process, Waterton has repeatedly changed its demands
and now has nominated directors to replace the vast majority (80%)
of the Board. Waterton, a relatively recent shareholder, is a
mining private equity firm that competes with Hudbay for mining
assets and may not have interests aligned with other
shareholders.
Hudbay will set a date for its annual meeting
and file a proxy circular, including a fulsome response to Waterton
and voting recommendation for shareholders, in due course.
Forward-Looking
Information
This news release contains “forward-looking
statements” and “forward-looking information” (collectively,
“forward-looking information”) within the meaning of applicable
Canadian and United States securities legislation. Forward-looking
information includes information that relates to, among other
things, statements with respect to Hudbay’s strategy and strategic
priorities and the Board’s intentions in advance of its annual
shareholders’ meeting. Forward-looking information is not, and
cannot be, a guarantee of future results or events.
Forward-looking information is based on, among
other things, opinions, assumptions, estimates and analyses that,
while considered reasonable by us at the date the forward-looking
information is provided, inherently are subject to significant
risks, uncertainties, contingencies and other factors that may
cause actual results and events to be materially different from
those expressed or implied by the forward-looking information. The
risks, uncertainties, contingencies and other factors that may
cause actual results to differ materially from those expressed or
implied by the forward-looking information may include, but are not
limited to, risks generally associated with the mining industry,
such as economic factors (including future commodity prices,
currency fluctuations, energy prices and general cost escalation),
as well as the risks discussed under the heading “Risk Factors” in
Hudbay’s most recent Annual Information Form.
Should one or more risk, uncertainty,
contingency or other factor materialize or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Hudbay does not assume any obligation to update or revise any
forward looking information after the date of this news release
or to explain any material difference between subsequent actual
events and any forward-looking information, except as required by
applicable law.
About Hudbay
Hudbay (TSX, NYSE: HBM) is an integrated mining
company producing copper concentrate (containing copper, gold and
silver), molybdenum concentrate and zinc metal. With assets in
North and South America, the company is focused on the discovery,
production and marketing of base and precious metals. Through its
subsidiaries, Hudbay owns three polymetallic mines, four ore
concentrators and a zinc production facility in northern Manitoba
and Saskatchewan (Canada) and Cusco (Peru), and a copper project in
Arizona (United States). The company is governed by the Canada
Business Corporations Act and its shares are listed under the
symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange
and Bolsa de Valores de Lima. Further information about Hudbay can
be found on www.hudbay.com.
For further information, please
contact:
Candace BrûléDirector, Investor Relations
(416) 814-4387 candace.brule@hudbay.com
For media inquiries, please
contact:
Scott BrubacherDirector, Corporate
Communications (416) 814-4373 scott.brubacher@hudbay.com
1 Sourced from Wood Mackenzie Q4 2018 dataset.
Based on 2018 forecasted operating costs, including mining,
processing and general and administrative expenditures on a per
tonne basis, for primary copper, open pit sulphide mines in South
America. Wood Mackenzie’s costing methodology may be different than
the methodology reported by Hudbay or its peers in their public
disclosure. For details regarding Hudbay’s costs, refer to Hudbay’s
management discussion and analysis for the three and nine months
ended September 30, 2018.2 Score as of January 2019. ISS scores
indicate decile rank relative to index or region. A decile score of
1 indicates lower governance risk (top 10%), while a 10 indicates
higher governance risk (bottom 10%).3 The Globe and Mail’s 2018
Board Game Hudbay Minerals Score, ranking is out of 242 companies
total and information as of November 27, 2018.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/ae178da6-227d-433e-97a9-2b794f995b36
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