HudBay Minerals Inc. is increasing the cost of it Lalor project by $90-million and posting a sharp drop in both revenue and profit for the fourth quarter on lower sales volumes and lower metal prices.
The Toronto-based miner reported a profit of $7.4-million, or 4 cents per diluted share, down from $34.3-million or 21 cents per diluted share in the year earlier period.
Revenue came in at $181-million compared with the fourth quarter of $254-million, when HudBay said it drew down on unusually high copper concentrate inventory.
HudBay said capital expenditures for Lalor will increase by $90-million to $794-million "as scope changes, including a 20 per cent increase in grinding capacity to 5,400 tonnes per day."
The project near Snow Lake, Man., is home to significant gold, zinc and copper deposits and has been put on a fast track to production by HudBay.
On Wednesday, the company said ore production from the main shaft is still projected to be on schedule in late 2014.
"For the sixth consecutive year, HudBay met its production guidance, which is a testament to our operating team and our reliable northern Manitoba assets," president and CEO David Garofalo said in a release.
"Our focus in 2013 is to continue to advance our robust portfolio of development assets, which we expect to provide significant copper, gold and zinc production growth over the next two years as they are brought into production."
Lalor's ore will initially be processed at the nearby Snow Lake concentrator until completion of the production shaft and new concentrator, which is expected in late 2014.
For the full year, HudBay reported a loss of $21-million on $702.6-million in revenue compared with a profit of $75-million on $890.8-million in revenue in 2011.
Shares in HudBay, which reported its financial results after the close of markets, closed down 57 cents, or 5.36 per cent, to $10.07 on the Toronto Stock Exchange.