Hudbay Minerals - President and CEO, Peter Kukielski.
President and CEO, Peter Kukielski.
Hudbay Minerals – President and CEO, Peter Kukielski. (Source: Getty Images.)
  • Diversified miner Hudbay (HBM) has restarted operations at the 777 Mine in Manitoba, following a skip hoist incident in late October
  • Production was halted after a hoist rope detached from a skip, causing it to fall to the bottom of the site’s shaft
  • Despite the interruption, production ramp-up was completed ahead of schedule, and the repairs are now expected to be below the original C$5 million estimate
  • While fourth quarter production is likely to be hindered by the operational halt, Hudbay remains confident that its 2020 full-year production and unit cost guidance will remain within the expected range
  • Hudbay Minerals is up 0.6 per cent and is trading at $8.33 per share

Diversified miner Hudbay Minerals (HBM) has restarted operations at the 777 Mine in Manitoba, following a skip hoist incident in late October.

Despite the interruption, production ramp-up was completed ahead of schedule, and the repairs are now expected to be below the original C$5 million estimate.

Luckily, no injuries resulted from the incident, but resulting repairs were originally quoted at up to C$5 million.

Nevertheless, production ramp up appears to have been completed ahead of schedule, and the repairs are now expected to be below the original estimate.

While the shaft was being repaired, the company reassigned the unused equipment and personnel to the nearby Lalor mine in Snow Lake to help offset the lost production.

While fourth quarter production is likely to be hindered by the operational halt, Hudbay remains confident that its 2020 full year production and unit cost guidance will remain within the expected range.

Peter Kukielski, Hudbay’s President and CEO, said the shaft incident was an unfortunate event, but the team responded quickly and was successful in bringing back full production ahead of schedule.

 “At the same time, the team used this as an opportunity to temporarily allocate additional resources to Lalor to test the mine’s production potential and we are encouraged as to what this might mean for the future of our Snow Lake operations,” he added.

Investors appear unperturbed by the operational upset, as shares in Hudbay continue to climb, following an impressive year-to-date on the market.

Despite a marked fall at the onset of the COVID-19 pandemic, shares in Hudbay have been climbing rapidly all year, to be currently up more than 50 per cent on their January prices.

Hudbay Minerals is up 0.6 per cent and is trading at $8.33 per share at 10:37am EST.

More From The Market Online
A hand holding a large rock enriched with nickel.

Canada Nickel Company maps out million-ton resource at Deloro

Canada Nickel Company (TSXV:CNC) announces a more than 1 million ton resource estimate for its Deloro nickel project near Timmins, Ontario.
Victoria Gold CEO John McConnell

Buzz on the Bullboards: Stocks making news as markets hit new highs

This week has been eventful for North American stock markets, with the TSX and Dow Jones indices closing at fresh highs.
Patterson Lake South uranium property.

Fission Uranium drilling finds strong mineralization in all holes

Fission Uranium (TSX:FCU) releases results from the final 13 drill holes on the R1515W zone at its PLS property, in the Athabasca Basin.
AI-generated image of gold bars beside a computer with a financial chart.

The Market Online’s Weekly Gold Report – July 17, 2024

The Market Online reviews the week's top gold stories, gold prices, gold company news and trending gold stocks.