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Investors in HudBay Minerals Inc. don’t like the surprise resignation of one of Canada’s best-known mining executives.
Shares in the Toronto-based copper and zinc producer slid more than 11 per cent in early trading as shareholders reacted to the news, announced late Frday, that chief executive David Garofalo would be leaving HudBay at the end of this year to take over the reins at giant gold miner Goldcorp Inc.
Mr. Garofalo was named Mining Person of the Year by Northern Miner in 2012 and is widely praised for having built HudBay into a highly regarded base-metal producer over the past five years. Despite plunging commodity prices and a miserable market for miners in general, 16 of 19 analysts who follow HudBay label the mid-sized miner a “buy.”
Mr. Garofalo will be replaced by Alan Hair, HudBay’s chief operating officer since 2012 and a 30-year veteran of the mining industry.
“This is a natural launching-off point for me,” Mr. Garofalo said in an interview. “All four of our mines are operating at optimum capacity, our cost structure has fallen by 50 per cent … the business is operating very solidly.”
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