Hudbay Minerals Slips After Wildfires Halt Operations In Manitoba Once Again

Hudbay Minerals (HBM) stock slipped 1.3% in extended trading on Thursday after the Canadian miner temporarily shut operations near Snow Lake town in Manitoba due to an evacuation order for wildfires in the area.

The company said that through its emergency procedures, all assets have been secured, and a limited workforce remains at the site to conduct ongoing monitoring programs and assist with emergency activities. “Hudbay believes its infrastructure and facilities in Snow Lake are well-protected from the wildfires and have a low risk of being damaged,” it said in a statement.

The halt in activity follows another pause last month in the Snow Lake region after Manitoba declared an evacuation order, asking thousands to leave their home as wildfires burned thousands of acres across Canada. Its Manitoba operations had produced 60,354 ounces of gold in the first quarter.

“We expect a quick and safe return to full operations as soon as possible, and we will continue to work with local and provincial authorities to ensure continued rebuilding of our communities after this difficult wildfire season,” said Rob Carter, Hudbay’s Senior Vice President, Canada.

However, the company stated that its activities near Flin Flon remain unaffected, as the wildfires are not located near the town. It also reiterated its annual production forecast despite the temporary shutdowns.

Retail sentiment on Stocktwits about Hudbay Minerals was still in the ‘bullish’ (63/100) territory, while retail chatter was ‘high.’ Earlier this week, National Bank raised the price target for the stock to C$16.50 from C$14.50.

According to the Canadian Interagency Forest Fire Centre, there have been over 3,000 wildfires in Canada this year, which have burned about 5 million hectares.

Hudbay Minerals stock has gained over 32% this year, tracking a surge in gold prices.

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