Hudbay preparing sale of Arizona Rosemont copper mine stake – by Dinesh Nair and Scott Deveau (Bloomberg/Financial Post – May 22, 2019)

https://business.financialpost.com/

Hudbay Minerals Inc. is preparing a sale of a stake in one of the largest copper mines under development in the U.S. as an investor pushes the company to review its portfolio, people familiar with the matter said.

The Toronto-based base metals miner has interviewed potential advisers about selling a 30 per cent stake in the Arizona Rosemont project and is planning to kick off a process in the coming months, the people said, asking not to be identified as the matter is private.

The stake is likely to draw interest from financial bidders, such as private equity firms, the people said. No final decisions have been made and Hudbay may still decide to keep the asset, they said.

A representative for Hudbay said the company intends to evaluate a variety of options, including the addition of a committed joint venture partner for the Rosemont project, and will carry out the process in parallel with its development this year.

Private equity firm Waterton Global Resource Management, which owns about 12 per cent of Hudbay, has said the company has been mismanaged, spending money on projects that haven’t created shareholder value, and has urged the firm to review its portfolio.

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