TORONTO (miningweekly.com) – Canadian base metals producer Hudbay Minerals has reported a profit for the three months ended June 30, as higher copper sales lifted the bottom line.

Hudbay recorded a profit of $252 000, or nil a share, compared with a loss of $52.7-million for the same period in 2013. This was an increase of $53-million, mainly owing to foreign exchange gains in the second quarter compared with foreign exchange losses in the same period in 2013.

Total revenue for the period was $139.3-million, $8.6-million higher than the same period in 2013, mainly as a result of higher copper sales volumes and higher metal prices, offset by lower zinc, gold and silver sales volumes.

"The second quarter represented the beginning of our expected production, earnings and cash-flow growth as we near the completion of the mine-building plan we laid out four years ago," president and CEO David Garofalo said.

TSX-listed Hudbay late on Tuesday announced that it had received about 96% of the outstanding shares of project developer Augusta Resource Corp, saying that it would now buy out the rest at the offer price, which would mark the end of a drawn-out takeover battle.

Following a months-long hostile pursuit of Augusta, the two companies last month agreed to friendly terms for a sweetened all-scrip takeover offer, valued at C$555-million, which would see Hudbay, which already owned a 16% stake in Augusta, gain control of the prospective Rosemont copper project, located near Tucson, Arizona.

“The successful acquisition of the Rosemont project provides Hudbay with another meaningful source of medium-term copper production growth, complementing our already sector-leading production increases expected over the next year,” Garofalo said.

Hudbay owns several copper/zinc/gold mines, either under construction or in operation, in North and South America.

Hudbay on Thursday announced an offering of a further $150-million in 9.5% senior unsecured notes due October 1, 2020. The notes were being offered in addition to the $750-million principal amount of 9.5% senior unsecured notes that Hudbay issued in September 2012, June 2013 and December 2013.

Hudbay said it planned to use the net proceeds from the offering to repay existing debt of its new 96%-owned subsidiary Augusta and for general corporate purposes.

On Thursday morning, Hudbay’s TSX-listed stock fell as low as C$11.33 a share, before recovering to about C$11.62 apiece by noon.