In total, Hudbay issued over 42.36 million common shares priced at $9.50 each, including the full exercise of the underwriters’ overallotment for about 5.52 million shares. Originally, it had planned to issue 31.6 million shares plus a 15% overallotment.
By midday Friday in New York, shares of Hudbay Minerals traded 2.9% higher at $9.57 apiece, for a market capitalization of $3.4 billion. In Toronto, its shares rose 1.6% to C$12.99 apiece, for a market capitalization of C$4.6 billion.
As previously announced, the net proceeds will be used by Hudbay to accelerate mine pre-stripping activities and mill optimization initiatives at Copper Mountain. In 2023, the company bought a 75% interest in the mine, located south of Princeton, BC, elevating itself as the third-largest copper producer in Canada.
The company also plans to use the funds to enhance balance sheet flexibility through debt repayments as part of its “3P” plan for a sanctioning decision on the Copper World complex in Arizona. An investment decision is contingent on receiving state-level permits for the Phase 1 mine; a draft groundwater permit had been passed but was met with mixed reviews.
In addition, Hudbay will direct some resources to evaluate mill throughput enhancement opportunities at the Constancia mine in Peru and the New Britannia operation in Snow Lake, Manitoba.
