{"id":724177,"date":"2026-06-09T01:24:19","date_gmt":"2026-06-09T01:24:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/724177\/"},"modified":"2026-06-09T01:24:19","modified_gmt":"2026-06-09T01:24:19","slug":"why-im-making-a-new-buy-recommendation-for-this-mining-stock","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/724177\/","title":{"rendered":"Why I\u2019m making a new buy recommendation for this mining stock"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Hudbay Minerals produces base and precious metals, with a focus on copper, which accounts for over 50 per cent of total revenue.Hudbay Minerals\/Supplied<\/p>\n

Donald Trump has made the world a more expensive place for just about everyone.<\/p>\n

You can\u2019t open a newspaper or watch the news on TV without hearing about his latest move to make life more expensive. The headline story is usually the price at the gas pumps but there\u2019s so much more.<\/p>\n

Last week, for example, the U.S. President moved to circumvent a Supreme Court ruling striking down the tariffs he imposed last year using the International Emergency Economic Powers Act. Instead, he announced he will impose duties of 10 to 12.5 per cent on countries that he accused of not taking appropriate action to ban imports using forced labour. Canada was named as one of the offending countries.<\/p>\n

Trump\u2019s rationale for high tariffs is to influence American companies that have moved some of their production offshore to return to the United States. He also aims to push foreign corporations to invest in building new facilities in the U.S. to gain duty-free access to the market.<\/p>\n

Insiders are betting that this is a good time to accumulate mining stocks<\/a><\/p>\n

There are signs the strategy is having an impact on investment decisions, but at a cost. Many companies have publicly announced the higher prices imposed by the tariffs are being passed directly to consumers. <\/p>\n

As if tariffs were not enough, the Iran war has made a wide range of products more expensive, and life more difficult for consumers. The blockage of the Strait of Hormuz goes well beyond raising the price of gasoline, diesel, jet fuel, and fertilizer. The cost of many minerals used in the production of a wide range of products are affected by the disruption in supply chains, extraction, and transportation costs.<\/p>\n

For example, the Middle East accounts for a large portion of global sulfur production. Blockages and shipping disruptions have caused sulfuric acid prices to skyrocket, increasing by up to 245 per cent. <\/p>\n

Because sulfur is a crucial ingredient in high-pressure acid-leach processing, the shortage has drastically increased refining costs for copper and nickel. Smelters for zinc and lead are also experiencing squeezed margins,<\/p>\n

Hudbay Minerals to buy Arizona Sonoran for $1.48-billion<\/a><\/p>\n

And here\u2019s something few people know. The Middle East is a major source of aluminum. With several regional producers declaring force majeure \u2013 meaning they are not required to fulfill purchase contracts struck at previously agreed prices \u2013 aluminum prices have surged to near their four-year highs, at around US$3,600 per tonne. No wonder U.S. manufacturers have been pleading with Mr. Trump to lower aluminum tariffs.<\/p>\n

Mining stocks have seen their prices rise as a result. Teck Resources TECK-B-T<\/a>, one of our Internet Wealth Builder recommendations, is ahead about 31 per cent so far in 2026. Altius Minerals ALS-T<\/a>, another of our picks, has gained 36 per cent. We\u2019ve also seen a year-to-date return of 19 per cent from the iShares North American Natural Resources ETF IGE-A<\/a>. <\/p>\n

We recently added another mining company to our recommended list, Hudbay Minerals. Here are the details.<\/p>\n

Hudbay Minerals Inc. (HBM-T<\/a>) <\/p>\n

Closed June 5 at $41.63. <\/p>\n

Background: Hudbay is an internationally diversified mining company based in Toronto. It produces base and precious metals, with a focus on copper, which accounts for over 50 per cent of total revenue. The company grows organically and by acquisition. <\/p>\n

Performance: After years of trading in a range of $5 to $12, the stock started a strong upward trend in early 2025. It hit an all-time high of $44.48 this year but has since pulled back.<\/p>\n

Financials: First-quarter results showed record revenue of US$757.3-million (the company reports in U.S. dollars). Adjusted net earnings attributable to shareholders also set a record in the first quarter, driven by steady operating performance, expanding margins from strong copper and gold exposure, and a focus on cost control across the business.<\/p>\n

Net earnings were US$191.5-million, or 48 US cents a share. Free cash flow was US$102.3-million. <\/p>\n

Consolidated copper and gold production was 27,929 tonnes and 61,700 ounces, respectively, in line with expectations.<\/p>\n

\u201cHudbay delivered another quarter of record revenue, record adjusted EBITDA, and record adjusted earnings, driven by steady operating performance, expanded margins from strong copper and gold exposure and a focus on cost control across the business,\u201d said CEO Peter Kukielski. <\/p>\n

\u201cOur leading operating cost performance resulted in record low consolidated cash costs and contributed to continued strong free cash flow generation in the quarter. All our operations are on track to achieve 2026 production and cost guidance. Building on our commitment to prudent balance sheet management, we ended the quarter with over US$1-billion in cash and cash equivalents.\u201d<\/p>\n

Dividend: The stock does not pay a dividend.<\/p>\n

Why we like it: The company operates high-quality, long-life mines in politically stable, mining-friendly jurisdictions. This includes the Constancia mine in Peru, the Copper Mountain mine in British Columbia, and the Lalor mine in Manitoba, making it the third-largest copper producer in Canada. <\/p>\n

Risks: Mining is notoriously a high-risk business. Among the factors influencing share values are metals prices, exploration and production costs, and the overall state of the stock market. In this case, the risk is compounded by the fact the company is trading near its all-time high. <\/p>\n

Outlook: Hudbay owns high-quality properties and is currently operating in a favourable environment. As long as metals continue to be in short supply and high demand, Hudbay stock should continue to flourish. <\/p>\n

Action now: Aggressive investors should buy the dip. <\/p>\n

Gordon Pape is editor and publisher of the Internet Wealth Builder and Income Investor newsletters.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Hudbay Minerals produces base and precious metals, with a focus on copper, which…\n","protected":false},"author":2,"featured_media":724178,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-724177","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/724177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=724177"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/724177\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/724178"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=724177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=724177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=724177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}