UPDATE 1-HudBay posts lower 2009 production

* 2009 gold production 92,201 oz vs. 108,527 oz last year

* Sees capital program to be C$207.9 mln for 2010

* Sees gold production of 85,000-100,000 oz for 2010

* 2010 zinc output seen in range of 75,000-90,000 tonnes

Feb 3 (BestGrowthStock) – Canadian miner HudBay Minerals (HBM.TO: )
on Wednesday reported lower production for 2009 as it curtailed
output at some of its mines, hurt by weak commodity price
environment, but raised its exploration budget for 2010.

The company’s gold production for 2009 fell more than 15
percent to 92,201 ounces, while zinc output fell more than 37
percent to 78,722 tonnes.

HudBay said that sustaining capital expenditures in 2010
are expected to return to more normal levels as compared to
2009.

“With the restart of operations at our Chisel North mine
offsetting the anticipated decline in production as we near the
end of mine life at Trout Lake, we expect another year of solid
results in 2010,” Chief Executive Warren Holmes said.

The company increased its exploration expenditures for 2010
to about C$41.8 million, with C$13.5 million of that total to
be capitalized. In 2009, HudBay had spent about C$30.8
million.

The company, which mines mainly zinc and copper in western
Canada, expects zinc output to be 75,000 tonnes to 90,000
tonnes and copper production to be 45,000 tonnes to 55,000
tonnes for 2010.

It forecast gold production to be 85,000 ounces to 100,000
ounces for 2010, with silver output in a range of 800,000
ounces to 900,000 ounces.

The company also set a capital program for 2010 of about
C$207.9 million.

Shares of the company were up 2 Canadian cents at C$12.71
in early morning trading on the Toronto Stock Exchange.

Investing Analysis

(Reporting by Chakradhar Adusumilli in Bangalore; Editing by
Maju Samuel)

UPDATE 1-HudBay posts lower 2009 production