(HBM - Get Report)
, a Canada-based diversified mining company, owns copper/zinc/gold mines, ore concentrators and zinc production facilities in northern Manitoba and Saskatchewan, a zinc oxide production facility in Ontario, a nickel project in Guatemala and a copper project in Peru.
For the second quarter of 2011, the company saw its profit before asset impairments increase multi-fold to $40 million, or 23 cents per share, from $4.4 million, or 3 cents per share, in the year-ago quarter. Revenue for the quarter soared 31.7% to $246.8 million from the same quarter prior year. Operating cash flow for the quarter almost doubled to $63.5 million, or 37 cents per share.
The company recently reported that it has completed optimization studies for its Lalor project in order to maximize value and potential. The project optimization would increase production to 4,500 tons per day from the present 3,500 tons per day. In addition, mining costs would reduce to $36 per ton from $56 per ton as of now. Milling costs would drop to $16 per ton from $24 per ton.
Looking ahead, the company believes that its operating mines are on track to meet the production and cost guidance for the remaining part of 2011, after delivering a strong performance during the second quarter of 2011.
Of the 16 analysts covering the stock, 81% recommend a buy and 13% rate a hold. Analysts polled by
expect the stock to gain an average 54% to $19.30 in the upcoming 12 months.
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