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Hudbay - Halfway to its Value

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July 27, 2008 – Comments (1)

I was just having a look at some of the stocks I watch and I see Hudbay is well on its way from $18 to $6.  Well, I don't know where it will finish, but back in May I did my post Hudbay Mineral - A $6 dollar stock priced at $18.  It is down to about $9 now.

I just had a look at the bullboard on stockhouse on it and analysts are predicting New York State Balmut zinc mine will shut down.  It is a high cost mine and with zinc at about 40% of the peak, well, high cost mines just don't do well.  The analyst is way optimistic on his price, imho...

Earnings per share peaked in Q2 2006 at $1.71 and last quarter eps was 17c/share.  Zinc price has declined further.  It is going to be ugly...

Someone in the bullboard made a comment that Hudbay needs zinc at 85c to break even.  I bet that is to break even on production charges and doesn't include capital costs at all.

I'll be looking for the quarterly report which is out later this week, on the 31st.

1 Comments – Post Your Own

#1) On July 28, 2008 at 1:51 AM, dwot (72.19) wrote:

Zinc at about 83c...

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