Canadian miner Hudbay has reported a third-quarter net loss of $274.8-million, reflecting an after-tax impairment loss of $242.1-million on the carrying value of its stalled Rosemont copper project, in the US.
The US District Court has blocked the company from constructing the copper mine in south-eastern Arizona, with the validity of mining claims that would allow for the disposal of waste on public lands adjacent to the operations at the heart of the matter.
Although Hudbay intends to appeal the court ruling, the company explained in its third-quarter results announcement on Monday that the recoverable amount of the Arizona cash generating unit was lower than its carrying value, resulting in an after-tax impairment loss.
In August, Hudbay suspended most of its early works activities at Rosemont and, at the time, said that it would reduce the project’s capital spend to $30-million for the year. This has now been further lowered to $20-million, together with a $20-million for nonproject spending.
“We intend to appeal the recent court decision as we evaluate next steps for the project,” said interim president and CEO Peter Kukielski. Meanwhile, Hudbay said it delivered a solid operating quarter from its operations in Peru and Manitoba, Canada.
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