TORONTO (miningweekly.com) – Toronto-based HudBay Minerals on Tuesday reported a 21% decline in revenue for the third quarter, after weaker copper and zinc prices offset higher gold prices.

Revenue fell to C$194,6-million from C$247,4-million a year earlier.

However, the company reported a big jump in net income, after a C$27,2-million asset impairment charge recorded a year earlier was not repeated.

Third-quarter profit increased to C$20-million up more than 600% from earnings of $2,8-million reported a year earlier.

HudBay produced 28 428 t of zinc, 14 290 t of copper, 22 988 oz of gold and 477 769 oz of silver during the quarter – all lower than in the third quarter of 2008.

The company said that it still expects to meet its guidance for production in 2009.

Last week, it announced it will restart its idled Chisel North mine and concentrator in Snow Lake, Manitoba, effective immediately, at a capital cost of about C$7-million.

The company has also approved plans to spend C$85-million to build a production ramp linking Chisel North to its new Lalor deposit.

The ramp will allow near-term production of zinc-rich ore, as well as access to the gold zones HudBay has found at Lalor, for underground exploration.

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