TSX, NYSE – HBM 2026 No. 20 Hudbay Delivers Strong Second Quarter 202 6 Results and Improves Cash Cost Guidance
Toronto, Ontario, July 29, 2026 – Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) released its second quarter 2026 financial results today. All amounts are in U.S. dollars, unless otherwise noted.
“Hudbay delivered another quarter of steady operating performance and industry-leading margins, with record trailing twelve month adjusted EBITDA of $1.3 billion, driven by our unique copper and gold diversification and focus on cost control,” said Peter Kukielski, Chief Executive Officer. “Our diversified operations in Canada and Peru continued to achieve operating efficiencies and deliver strong gold by-product credits, which have more than offset external cost pressures and allowed us to improve our 2026 full-year consolidated cash cost guidance. We generated over $100 million in free cash flow during the quarter and more than $200 million in free cash flow through the first half of the year, allowing us to prudently reinvest in high-return growth opportunities across the business to enhance our exposure to copper and gold. Our Copper World project is on track for sanctioning later in 2026, and our recent acquisition of the Cactus project brings together two highly complementary assets in Arizona and solidifies our position as a premier Americas-focused copper producer with a pipeline of long-life, low-cost assets in tier-one jurisdictions.
“I am also very pleased to announce two key executive leadership appointments that will position Hudbay for the next phase of transformational growth. The appointment of Eugene Lei as President and Chief Financial Officer is a significant milestone for Hudbay and recognizes his passion and strategic vision for the long-term success of the Company. Eugene has been instrumental in the significant transformation of the Company since becoming Chief Financial Officer in 2022. He successfully executed the strategic plan to unlock Copper World, including achieving our stated balance sheet targets ahead of schedule and helping to facilitate the Copper World partnership with Mitsubishi. Rob Carter’s appointment as Chief Operating Officer recognizes the significant impact he has had on the business through revitalizing our Manitoba operations into becoming a sustainable cash flow contributor and bringing that expertise to our British Columbia operations. As Andre Lauzon embarks on his well-deserved retirement, I am confident that Eugene’s strategic foresight in the President role and Rob’s operational leadership as Chief Operating Officer will accelerate our growth pipeline and continue to maximize shareholder returns.”
Delivered Strong Second Quarter Financial Results; Production Guidance Reaffirmed and Cost Guidance Improved
- Achieved quarterly revenue of $631.3 million, net earnings attributable to ownersi of $137.4 million, quarterly adjusted EBITDAi of $321.2 million and adjusted net earnings attributable to ownersi of $113.5 million in the second quarter, driven by steady operating performance, attractive operating margins and strong exposure to copper and gold across Hudbay's diversified operating portfolio.
- Steady production continued in the second quarter with consolidated copper and gold production of 28,267 tonnes and 51,234 ounces, respectively, with higher copper production in line with quarterly cadence expectations while gold production was slightly lower than quarterly cadence expectations.
- Industry-leading margins continued with consolidated cash costi and sustaining cash costi, net of by-product credits, of $(0.40) and $1.39 per pound of copper, respectively, in the second quarter of 2026.
- Reaffirmed full year 2026 consolidated production guidance including 110,000 to 138,000 tonnes of copper and 217,000 to 272,000 ounces of gold.
- Improved full year 2026 consolidated cash costi guidance to $(0.45) to $(0.25) per pound of copper from $(0.30) to $(0.10) per pound as costs are tracking well below the low end of the guidance range given strong
exposure to gold by-product credits and continued operating efficiencies are more than offsetting higher input costs for fuel and consumables.
- Peru operations produced 19,446 tonnes of copper and 5,282 ounces of gold in the second quarter of 2026, in line with quarterly cadence expectations with a planned semi-annual plant maintenance shutdown during the quarter. Peru cash costi, net of by-product credits, of $1.66 per pound outperformed the low end of the 2026 annual guidance range of $1.70 to $2.10 per pound despite the lower planned production and higher fuel costs.
- Manitoba operations produced 40,344 ounces of gold, 2,366 tonnes of copper, 4,760 tonnes of zinc and 209,478 ounces of silver in the second quarter of 2026, slightly lower than quarterly cadence expectations. Manitoba cash costi of $776 per ounce of gold was within the annual guidance range of $500 to $800 per ounce.
- British Columbia operations produced 6,455 tonnes of copper, 5,608 ounces of gold and 71,178 ounces of silver in the second quarter of 2026, in line with quarterly cadence expectations. British Columbia cash costi of $3.22 per pound of copper was higher than the annual cost guidance range of $1.50 to $2.50 primarily due to elevated fuel prices and timing of equipment maintenance. British Columbia cash cost is expected to improve in the second half of the year, in line with the annual guidance range.
- Second quarter earnings per share attributable to owners was $0.34 reflecting strong gross profit margins as a result of the continued focus on strong cost control and higher metal prices more than offsetting higher input costs. After adjusting for various non-cash items on a pre-tax basis, second quarter adjusted earningsi per share attributable to owners was $0.28.
- Cash and cash equivalents were $890.9 million and total liquidityii was $1,044.6 million at the end of the second quarter of 2026, despite using cash to retire over $200 million in long term debt and benefitting from the approximate $420 million initial cash contribution from Mitsubishi Corporation ("Mitsubishi") received on closing of the Copper World joint venture transaction in January 2026.
Continued Strong Cash Flow Generation and Prudent Balance Sheet Management
- Hudbay's unique copper and gold diversification across its operations provides exposure to higher copper and gold prices, which together with a focus on cost control across the business, continues to realize strong margins and generate significant free cash flow.
- While the majority of Hudbay's revenue continues to be derived from copper production, revenue from gold production represents a meaningful portion of total revenues. Gold revenues were 38% of total revenue in the second quarter of 2026.
- Cash generated from operating activities was $297.0 million during the second quarter of 2026, reflecting an increase of $85.7 million compared to the first quarter partially as a result of favourable changes in non-cash working capital. Operating cash flow before changes in non-cash working capital was $210.1 million during the second quarter of 2026, relatively consistent with the first quarter.
- Delivered free cash flowi generation of $101.8 million during the second quarter of 2026, representing a similar level of free cash flow generation to the first quarter through continued strong operating margins and cost controls, resulting in more than $200 million of free cash flow generated in the first half of 2026 despite investing over $200 million of sustaining capital in the business over this period.
- Achieved quarterly adjusted EBITDAi of $321.2 million in the second quarter of 2026, resulting in record trailing twelve month adjusted EBITDAi of $1,271.6 million.
- Achieved net debti of negative $80.5 million as at June 30, 2026, representing an $86.1 million improvement from the first quarter of 2026 and positioning the Company well to reinvest in high-return growth capital projects across the business.
- Net debt to adjusted EBITDA ratioi was negative 0.1x in the second quarter of 2026, significantly improved from 0.4x in the fourth quarter of 2025 as a result of the initial proceeds received from Mitsubishi on closing of the Copper World joint venture transaction along with strong cash flows from operations.
- Consistent with Hudbay’s prudent balance sheet management and focus on cost of capital, Hudbay repaid $472.5 million of its outstanding 2026 senior unsecured notes on maturity on April 1, 2026, using a combination of cash on hand and a $272 million draw on its low-cost revolving credit facilities, providing the Company with enhanced financial flexibility in advance of a Copper World sanctioning decision later this year.
- Received proceeds of an offering of $52 million in aggregate principal amount of solid waste disposal revenue bonds with an initial mandatory tender date in 2036. These long-term, low-cost, non-amortizing U.S. municipal bonds, may be used for certain eligible costs associated with the development of Copper World.
- Hudbay's enhanced Capital Allocation Framework is embedded into its annual financial planning cycle to provide a holistic approach to capital allocation decisions to maximize long-term risk-adjusted returns, including capital deployment into brownfield projects, greenfield projects, strategic investments and exploration, while considering debt repurchases, share buybacks and dividends.
Advancing Generational Growth Investments to Further Enhance Copper and Gold Exposure
- The Copper World definitive feasibility study (“DFS”) is progressing well, and a project sanctioning decision continues to be on track for late 2026. The DFS is expected to include scope for future mill expansion optionality.
- Completed the acquisition of Arizona Sonoran Copper Company Inc. ("Arizona Sonoran") to bring together Americas-focused copper company with a pipeline of long‑life, low‑cost assets located in tier-one jurisdictions. two highly complementary copper growth assets in Arizona and strengthen Hudbay’s position as a premier The acquisition of Arizona Sonoran enhances Hudbay’s long‑term copper production profile and expands its U.S. growth pipeline through the staged development of Copper World and Cactus. Hudbay expects to spend approximately $30 million at Cactus in the second half of 2026 to advance an updated pre-feasibility study, perform site de-risking activities, conduct exploration activities and for other ongoing site costs.
- Continued to advance a large Snow Lake exploration program to further increase near-term production and mineral reserves, test regional satellite deposits for additional mill feed to utilize available capacity at Stall and explore the large land package for a new anchor deposit to meaningfully extend mine life.
- Celebrated the official groundbreaking of the New Ingerbelle expansion project at Copper Mountain, marking a significant milestone for the operation and its long-term future in British Columbia, enhancing the copper and gold production profile and securing a longer mine life. Growth capital expenditures in British Columbia in 2026 are expected to increase by approximately $30 million to $115 million, due to additional costs associated with the development of infrastructure for New Ingerbelle.
- Received approval from the government in Peru to further increase annual mill processing capacity at Constancia to 34 million tonnes of ore per annum from the previously permitted 31 million tonnes, enabling additional capacity to further optimize Constancia’s operations and deliver strong copper production.
- Advanced initial pre-feasibility study activities at the Mason copper project in Nevada.
Summary of Second Quarter Results
Hudbay's diversified asset portfolio delivered consolidated copper production of 28,267 tonnes and consolidated gold production of 51,234 ounces in the second quarter of 2026. Consolidated copper production was higher than the first quarter of 2026 as higher mill throughput in British Columbia more than offset lower planned mill throughput in Peru. Consolidated gold production was lower than the first quarter of 2026 primarily due to lower milled gold grades. Consolidated silver production of 845,161 ounces was higher than the first quarter of 2026 due to higher grades and recoveries in British Columbia. Zinc production of 4,760 tonnes in the second quarter of 2026 also increased compared to the previous quarter, primarily reflecting higher ore grades at the Manitoba operations.
Cash generated from operating activities was $297.0 million during the second quarter of 2026, reflecting an increase of $85.7 million compared to the first quarter of 2026, partially as a result of favourable changes in non-cash working capital. Operating cash flow before changes in non-cash working capital was $210.1 million during the second quarter of 2026 and remained relatively consistent with the first quarter of 2026.
Adjusted EBITDAi was $321.2 million in the second quarter of 2026, a decrease compared to the record $421.9 million achieved in the first quarter of 2026 primarily due to lower sales volumes, partially offset by higher copper prices. The lower sales volumes in the second quarter of 2026 were impacted by a temporary build-up of concentrate inventory at the port in Peru. This accumulation was caused by ocean swells that resulted in temporary port closures and delayed scheduled shipments of approximately 10,000 dry metric tonnes of copper concentrate, which were delivered in the first half of July 2026.
Net earnings attributable to owners was $137.4 million, or $0.34 per share, in the second quarter of 2026 compared to $190.4 million, or $0.48 per share, in the first quarter of 2026. The decrease is primarily the result of lower revenue due to lower sales volumes of all metals.
Adjusted net earnings attributable to ownersi and adjusted net earnings per share attributable to ownersi in the second quarter of 2026 were $113.5 million and $0.28 per share, respectively, after adjusting for various non-cash items on a pre-tax basis including a $38.2 million mark-to-market revaluation net gain on various financial instruments such as investments and share-based compensation, a non-cash $12.0 million foreign exchange loss, and an $11.5 million business interruption insurance recovery related to the Manitoba mandatory wildfire evacuations shutdowns in 2025, among other items. This compares to adjusted net earnings attributable to ownersi and net earnings per share attributable to ownersi of $161.0 million and $0.40 per share, respectively, in the first quarter of 2026. The decrease is a result of lower realized metal prices for gold and the aforementioned lower sales volumes.
Consolidated cash costi, net of by-product credits, in the second quarter of 2026 was $(0.40) per pound of copper, compared to record low cash cost of $(1.80) per pound in the first quarter of 2026. The increase from the first quarter of 2026 was a result of lower by-product credits from lower gold volumes.
Consolidated sustaining cash costi, net of by-product credits, in the second quarter of 2026 was $1.39 per pound of copper, compared to $0.00 per pound in the first quarter of 2026. This increase was primarily due to the same factors impacting consolidated cash costi noted above.
Consolidated all-in sustaining cash costi, net of by-product credits, in the second quarter of 2026 was $1.80 per pound of copper, higher than the first quarter of 2026 due to the same reasons noted above, partially offset by lower corporate general and administrative ("G&A") costs from the impact of the revaluation of Hudbay's share-based compensation.
As at June 30, 2026, total liquidityii was $1,044.6 million, including $890.9 million in cash and cash equivalents, which excludes $49.8 million in U.S. municipal bond proceeds that is classified as restricted cash, and undrawn availability of $153.7 million under Hudbay's revolving credit facilities. Net debti at the end of the second quarter was negative $80.5 million, marking an $86.1 million improvement from first quarter of 2026 primarily as a result of positive cash flows from operations. Hudbay expects that the current liquidity, together with cash flows from operations, will be sufficient to meet the Company's liquidity needs for the remainder of 2026.
Consolidated Financial Condition Jun. 30, 2026 Mar. 31, 2026 Dec. 31, 2025 (in $ millions, except net debt to adjusted EBITDA ratio)
| Cash and cash equivalents1 | 890.9 | 1,003.8 | 568.9 |
| Total long-term debt | 860.2 | 1,009.4 | 1,008.6 |
| Net debt2,3 | 5.6 | 439.7 |
(80.5)
| Working capital4 | 751.8 | 407.3 | (65.6) |
| Total assets | 8,062.0 | 6,896.9 | 6,223.3 |
| Equity attributable to owners of the Company | 4,797.2 | 3,533.5 | 3,231.0 |
| Net debt to adjusted EBITDA2 | (0.1) | 0.0 | 0.4 |
1 As at June 30, 2026 cash and cash equivalents include $334.5 million in cash held by Copper World LLC. These funds are contractually restricted solely for the advancement of the Copper World project and are not available to the general Hudbay group. 2 Net debt and net debt to adjusted EBITDA are non-GAAP financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-GAAP Financial Performance Measures" section of this news release.
3 Hudbay calculates net debt as total long-term debt less cash and cash equivalents and restricted cash related to unspent proceeds of its senior unsecured municipal bond financing.
4 Working capital is determined as total current assets less total current liabilities as defined under IFRS and disclosed on the consolidated interim financial statements.
Consolidated Financial Performance Three Months Ended
| Jun. 30, 2026 | Mar. 31, 2026 | Jun. 30, 2025 | ||
|---|---|---|---|---|
| Revenue | $ millions | 631.3 | 757.3 | 536.4 |
| Cost of sales | $ millions | 362.3 | 389.3 | 359.9 |
| Earnings before tax | $ millions | 240.4 | 339.0 | 153.1 |
| Net earnings | $ millions | 138.1 | 191.5 | 114.7 |
| Net earnings attributable to owners | $ millions | 137.4 | 190.4 | 117.7 |
Basic and diluted attributable earnings per $/share 0.34 0.48 0.30 share Adjusted earnings attributable per share 1 $/share 0.28 0.40 0.19 $ millions Operating cash flow before change in non- 210.1 208.7 193.9 cash working capital Adjusted EBITDA1 $ millions 321.2 421.9 245.2
101.8
Free cash flow1 $ millions 102.3 86.7 1 Adjusted earnings attributable per share, adjusted EBITDA and free cash flow are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see discussion under the “Non- GAAP Financial Performance Measures” section of this news release.
Consolidated Production and Cost Performance Three Months Ended Jun. 30, 2026 Mar. 31, 2026 Jun. 30, 2025 Contained metal in concentrate and doré produced1
| Copper | tonnes | 28,267 | 27,929 | 29,956 |
| Gold | ounces | 51,234 | 61,700 | 56,271 |
| Silver | ounces | 845,161 | 787,449 | 814,989 |
| Zinc | tonnes | 4,760 | 4,565 | 5,130 |
| Molybdenum | tonnes | 277 | 380 | 375 |
Payable metal sold
| Copper | tonnes | 23,780 | 29,544 | 30,354 |
| Gold2 | ounces | 56,266 | 66,562 | 62,466 |
| Silver2 | ounces | 674,490 | 923,051 | 894,160 |
| Zinc | tonnes | 2,635 | 3,897 | 2,871 |
| Molybdenum | tonnes | 298 | 375 | 427 |
Consolidated cash cost per pound of copper produced3
| Cash cost | $/lb | (0.40) | (1.80) | (0.02) |
| Sustaining cash cost | $/lb | 1.39 | 0.00 | 1.65 |
| All-in sustaining cash cost | $/lb | 0.73 | 2.03 |
1.80
1 Metal reported in concentrate is prior to deductions associated with smelter contract terms and includes other secondary products. 2 Includes total payable gold and silver in concentrate and in doré sold and other secondary products.
3 Cash cost, sustaining cash cost and all-in sustaining cash cost per pound of copper produced, net of by-product credits are non-GAAP financial performance measures with no standardized definition under IFRS. For further information, please see the “Non-GAAP Financial Performance Measures” section of this news release.
Peru Operations Review
Peru Operations Three Months Ended
| Constancia ore mined1 | 10,962,399 | 10,701,375 | 6,735,316 | |
| Copper | % | 0.28 | 0.29 | 0.34 |
| Gold | g/tonne | 0.04 | 0.03 | 0.03 |
| Silver | g/tonne | 3.68 | 3.11 | 3.26 |
| Molybdenum | 0.01 | 0.02 |
tonnes
% 0.01
| Pampacancha ore mined1,2 | tonnes | — | — | 762,172 |
| Copper | % | — | — | 0.26 |
| Gold | g/tonne | — | — | 0.24 |
| Silver | g/tonne | — | — | 4.59 |
Molybdenum 0.01
| % | — | — | ||
| Total ore mined | tonnes | 10,962,399 | 10,701,375 | 7,497,488 |
| Strip ratio3 | 0.88 | 0.83 | 1.47 | |
| Ore milled | tonnes | 7,827,509 | 8,163,847 | 7,559,047 |
| Copper | % | 0.30 | 0.31 | 0.34 |
| Gold | g/tonne | 0.06 | 0.05 |
0.04
| Silver | g/tonne | 3.75 | 3.09 | 3.58 |
| Molybdenum | % | 0.01 | 0.01 | 0.01 |
| Copper recovery | % | 81.5 | 84.5 |
82.0
| Gold recovery | % | 48.8 | 59.9 | 56.0 |
| Silver recovery | % | 59.9 | 65.4 | 63.5 |
| Molybdenum recovery | % | 39.9 | 36.0 | 38.7 |
Contained metal in concentrate
Copper tonnes 19,446 20,573 21,710 Gold ounces 8,770 7,366
5,282
Silver ounces 564,505 531,199 551,979 Molybdenum tonnes 277 380 375
Payable metal sold
Copper tonnes 21,056 21,418
15,755
| Gold | ounces | 4,042 | 15,162 | 9,721 |
| Silver | ounces | 418,640 | 676,119 | 616,578 |
| Molybdenum | tonnes | 298 | 375 | 427 |
| Combined unit operating cost4,5 | $/tonne | 14.06 | 11.61 | 13.59 |
| Cash cost5 | $/lb | 1.66 | 0.70 | 1.45 |
| Sustaining cash cost5 | $/lb | 1.43 | 2.63 |
2.71
1 Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled. 2 Pampacancha has been depleted as of December 31, 2025.
3 Strip ratio is calculated as waste mined divided by ore mined.
4 Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.
5 Combined unit costs, cash cost and sustaining cash cost per pound of copper produced, net of by-product credits, are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-GAAP Financial Performance Measures" section of this news release.
The Peru operations continued to demonstrate steady operating performance during the second quarter of 2026, with production and costs in line with full-year expectations following the depletion of Pampacancha at the end of 2025.
The Company continues to advance the installation of pebble crushers at Constancia to increase mill throughput rates starting in the third quarter of 2026, which will allow the mine to deliver steady annual copper production despite lower grades following the depletion of Pampacancha.
In the second quarter of 2026, the Peru operations produced 19,446 tonnes of copper, 5,282 ounces of gold, 564,505 ounces of silver and 277 tonnes of molybdenum. Production of copper, gold and molybdenum was slightly lower compared to the first quarter of 2026, reflecting the planned semi-annual plant maintenance shutdown during the second quarter of 2026. Hudbay is on track to achieve its 2026 production guidance for all metals in Peru.
Total material moved during the second quarter of 2026 was 23.9 million tonnes, consistent with ore mined in the first quarter of 2026, and, in May the highest monthly total material moved over the last ten years was achieved. Peru realized improved productivity from enhanced fleet efficiency and the implementation of haulage optimization strategies.
Mill throughput levels averaged approximately 86,000 tonnes per day during the second quarter of 2026, a marginal decrease compared to the first quarter of 2026, primarily due to the scheduled semi-annual plant maintenance shutdown and the processing of more metallurgically complex ore during the second quarter of 2026. Milled copper grades decreased slightly compared to the first quarter of 2026 due to blending targets implemented to control contaminants in the concentrate. As expected, overall gold grades declined primarily due to the transition away from the higher-grade gold contributions from the Pampacancha stockpile. Metal recoveries remained in line with expectations.
Combined mine, mill and G&A unit operating costi in the second quarter of 2026 was $14.06 per tonne, which increased by 21% compared to first quarter of 2026, primarily due to higher fuel prices and the planned semi-annual plant maintenance shutdown in May 2026.
Cash costi, net of by-product credits, in the second quarter of 2026 was $1.66 per pound of copper, an increase compared to the first quarter of 2026, primarily due to lower gold by-product credits resulting from lower gold volumes given the completion of mining of the high gold content Pampacancha stockpile in the first quarter, combined with higher fuel prices in the second quarter and the planned semi-annual plant maintenance shutdown in May 2026. This increase was partially offset by lower profit sharing. Despite the increase, cash cost for the quarter continued to outperform the low-end of the 2026 guidance range as a result of strong operating cost performance and higher byproduct prices more than offsetting external cost pressures. Hudbay is well positioned to achieve the full year 2026 cash cost guidance range in Peru.
Sustaining cash costi, net of by-product credits, in the second quarter of 2026 was $2.71 per pound of copper, an increase compared to the first quarter of 2026, primarily due to the same reasons affecting cash costs above, as well as higher community agreement payments.
Sales volumes were impacted by a temporary build-up of concentrate inventory at the port caused by ocean swells that resulted in temporary port closures and delayed scheduled shipments. As a result, approximately 10,000 dry metric tonnes of copper concentrate sales were deferred to the first half of July.
In April 2026, Constancia was recognized as the safest open pit operation in Peru during the local National Mining Safety Contest for its performance in 2025. This award reflects the Company's unwavering commitment to safety and validates Constancia's compliance with the highest operational safety and regulatory standards.
Manitoba Operations Review
Manitoba Operations Three Months Ended
Lalor
| Ore mined1 | tonnes | 321,719 | 349,980 | 303,062 |
| Gold | g/tonne | 4.41 | 4.72 | 4.97 |
| Copper | % | 0.84 | 0.80 | 0.61 |
| Zinc | % | 2.25 | 2.10 | 2.46 |
| Silver | g/tonne | 28.33 | 26.22 | 29.94 |
New Britannia
Ore milled tonnes 181,403 162,934
170,477
| Gold | g/tonne | 5.31 | 6.06 | 6.48 |
| Copper | % | 1.00 | 1.04 | 0.65 |
| Zinc | % | 0.97 | 1.09 | 1.01 |
| Silver | g/tonne | 29.73 | 22.75 | 30.29 |
| Gold recovery2 | % | 90.5 | 90.4 | 89.4 |
| Copper recovery | % | 90.9 | 90.8 | 87.4 |
| Silver recovery2 | % | 82.2 |
84.5 78.0
Stall Concentrator
| Ore milled | tonnes | 148,037 | 178,981 | 144,204 |
| Gold | g/tonne | 3.30 | 3.26 | 3.19 |
| Copper | % | 0.66 | 0.53 | 0.56 |
| Zinc | % | 3.81 | 3.22 | 4.20 |
| Silver | g/tonne | 27.46 | 29.68 | 29.55 |
| Gold recovery | % | 70.8 | 73.5 | 67.9 |
| Copper recovery | % | 85.9 | 84.7 |
83.7
Zinc recovery % 84.5 79.3 84.8 Silver recovery % 55.4 57.5 51.9
Total contained metal in concentrate and doré3
| Gold | ounces | 40,344 | 47,743 | 43,235 |
| Copper | tonnes | 2,366 | 2,535 | 1,612 |
| Zinc | tonnes | 4,760 | 4,565 | 5,130 |
| Silver | ounces | 209,478 | 213,208 | 197,970 |
Total payable metal sold4
Gold ounces 45,274 46,932
47,066
| Copper | tonnes | 2,466 | 2,658 | 2,133 |
| Zinc | tonnes | 2,635 | 3,897 | 2,871 |
| Silver | ounces | 209,383 | 193,472 | 209,594 |
| Combined unit operating cost5,6,7 | C$/tonne | 300 | 254 | 241 |
| Gold cash cost7,8 | $/oz | 776 | 408 | 710 |
| Gold sustaining cash cost7 | $/oz | 1,358 | 833 | 1,025 |
1 Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled. 2 Gold and silver recovery includes total recovery from concentrate and doré.
3 Total metal reported in concentrate is prior to deductions associated with smelter terms and includes other secondary products. Doré includes sludge, slag and carbon fines.
4 lncludes other secondary products.
5 Reflects combined mine, mill and G&A costs per tonne of ore milled.
6 Excludes $3.2 million or C$14 per tonne of overhead costs incurred during temporary suspension during the three months ended June 30, 2025.
7 Combined unit cost, cash cost, sustaining cash cost per ounce of gold produced, net of by-product credits, are non-GAAP financial performance measures with no standardized definition under IFRS. For further information, please see the “Non-GAAP Financial Performance Measures” section of this news release.
8 Excludes $3.2 million or $74 per ounce of overhead costs incurred during temporary suspension during the three months ended June 30, 2025.
The Manitoba operations continued to execute its strategic initiatives during the second quarter of 2026, navigating short-term operational hurdles while positioning the business for an expected strong second half of the year. To address labour availability constraints, Hudbay engaged an experienced mining contractor to advance the 1901 deposit. This strategic decision has enabled the team to redeploy its skilled internal workforce to other critical development areas at Lalor. The Company has simultaneously increased its internal capacity, onboarding over 100 new employees in 2026 who are currently undergoing upskilling to enhance long-term operational self-sufficiency in Manitoba.
While the operations experienced minor production impacts from an unplanned hoist gearbox failure at Lalor in June, the hoist is now repaired and fully operational, and the team strategically prioritized high-value gold zones to maintain consistent feed for the New Britannia mill. These initiatives position the business to support higher production volumes and grades in the second half of 2026, which remains aligned with annual production guidance in Manitoba.
The Manitoba operations produced 40,344 ounces of gold, 2,366 tonnes of copper, 4,760 tonnes of zinc and 209,478 ounces of silver in the second quarter of 2026. Compared to the first quarter of 2026, production of gold, copper and silver was lower primarily due to lower tonnes milled, while zinc production was slightly higher. Production in the second half of 2026 is expected to be higher than the first half of 2026 due to grade sequencing and higher ore output from Lalor, as previously disclosed. Hudbay is on track to achieve its 2026 production guidance for all metals in Manitoba.
The Lalor mine hoisted an average of approximately 3,500 tonnes of ore per day in the second quarter of 2026, strategically prioritizing gold zones to secure optimal feed for the New Britannia mill. Total ore mined in the second quarter of 2026 was lower than the first quarter of 2026, primarily driven by reduced workforce availability, which limited effective utilization of equipment and workplaces. In the second quarter of 2026, gold grades decreased by 7% when compared to the first quarter of 2026, driven by planned mine sequencing.
The 1901 deposit delivered approximately 7,600 tonnes of development ore in the second quarter of 2026. Looking ahead, the plan is to continue to prioritize exploration and infill drilling, orebody access and critical infrastructure development as 1901 progresses toward full production in late 2027.
The New Britannia mill processed approximately 1,900 tonnes per day in the second quarter of 2026, matching the gold ore output from Lalor during the quarter. New Britannia continued to achieve steady gold recoveries of approximately 90%, reflecting ongoing optimization efforts. The Stall mill processed less ore in the second quarter than the first quarter of 2026, consistent with the Lalor base metal production. The Stall mill achieved gold recoveries of 71% during the second quarter of 2026, continuing to reflect recovery focused initiatives. The Company also initiated early works on installing new tailings lines between the two mills, which is expected to increase the pipeline capacity to enable higher throughput and leaching of gold-bearing material at New Britannia from base metal ore originally processed at Stall mill.
Combined mine, mill and G&A unit operating costsi in the second quarter of 2026 were C$300 per tonne, an increase compared to the first quarter of 2026 as a result of marginally higher onsite costs and lower ore milled due to reduced workforce availability, limiting the effective utilization of equipment and workplaces, as well as the failure of a critical hoist gearbox motor at Lalor.
Cash costi, net of by-product credits, in the second quarter of 2026 was $776 per ounce of gold. This represents a 90% increase compared to the first quarter of 2026, primarily due to lower gold production and higher unit operating costs across mining, milling activities and G&A, impacted by the same factors as combined mine, mill and G&A unit operating costs. Despite the increase, cash cost was within the guidance range for 2026 and Hudbay remains on track to achieve its full year cash cost guidance range in Manitoba.
Sustaining cash costi, net of by-product credits, in the second quarter of 2026 was $1,358 per ounce of gold, higher than the first quarter of 2026 primarily due to the same factors affecting cash costs along with higher sustaining capital.
The Snow Lake operations advanced key sustaining capital environmental projects during the second quarter, including construction of a cyanide recycling initiative at the New Britannia mill and construction of a dam lift at the Anderson Tailings Impoundment Area. Both projects remain on schedule for completion by the end of 2026.
British Columbia Operations Review
British Columbia Operations Three Months Ended
tonnes
| Ore mined1 | 3,276,090 | 2,916,152 | 2,509,969 |
| Strip ratio2 | 6.22 | 7.06 | 7.50 |
| tonnes | 3,078,342 | 2,900,008 |
Ore milled 3,616,083
%
| Copper | 0.23 | 0.20 | 0.28 | |
| Gold | g/tonne | 0.08 | 0.08 | 0.09 |
| Silver | g/tonne | 0.67 | 0.97 |
0.88
% Copper recovery 77.3 78.9 81.0 Gold recovery % 64.7 68.2
62.9
% Silver recovery 69.7 64.6 71.8
Total contained metal in concentrate
| Copper | tonnes | 6,455 | 4,821 | 6,634 |
| Gold | ounces | 5,608 | 5,187 | 5,670 |
| Silver | ounces | 43,042 | 65,040 |
71,178 Total payable metal sold
| Copper | tonnes | 5,559 | 5,830 | 6,803 |
| Gold | ounces | 5,158 | 6,126 | 5,813 |
| Silver | ounces | 46,467 | 53,460 | 67,988 |
| Combined unit operating cost3,4 | C$/tonne | 25.23 | 24.51 |
25.52 3.22
Cash cost 4 $/lb 2.41 2.39 Sustaining cash cost 4 $/lb 6.23 7.81 5.18 1 Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled. 2 Strip ratio is calculated as waste mined divided by ore mined.
3 Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.
4 Combined unit operating cost, cash cost and sustaining cash cost per pound of copper produced, net of by-product credits, are non- GAAP financial performance measures with no standardized definition under IFRS. For further information, please see the “Non-GAAP Financial Performance Measures” section of this news release.
5 Copper Mountain mine results are stated at 100%. On April 30, 2025 Hudbay completed the acquisition of the remaining 25% interest in the Copper Mountain mine and now owns 100%.
Hudbay continued to advance its multi-year optimization plan at Copper Mountain, achieving significant milestones in mining productivity, operational improvements and project execution in the second quarter of 2026.
The British Columbia operations produced 6,455 tonnes of copper, 5,608 ounces of gold, and 71,178 ounces of silver in the second quarter of 2026, which increased compared to the first quarter of 2026 for all metals as a result of higher ore mined, improved grades and higher throughput. Hudbay is on track to achieve its 2026 production guidance for all metals in British Columbia and continues to expect higher production in the second half of the year as the mill improvement projects take effect.
In May 2026, Copper Mountain received the 2025 John Ash Safety Award from the BC Ministry of Mining and Critical Minerals, recognizing Copper Mountain as the safest open pit mine in British Columbia in 2025, demonstrating Hudbay’s sustained focus on safety.
Mining activities reached a record total material movement of approximately 30.1 million tonnes in the second quarter of 2026, driven by an optimized mining sequence and improved operational performance, while self-performing the construction of the east haul road for the New Ingerbelle project. As part of the accelerated stripping program, these production efficiencies resulted in a record daily average mining rate of 331,000 tonnes per day, ahead of budget. This ramp-up was supported by the successful commissioning of a new production shovel in April 2026.
Total ore mined at Copper Mountain in the second quarter of 2026 was 3.3 million tonnes, an increase of 12% compared to the first quarter of 2026. During the second quarter of 2026, blending initiatives from the main pit maintained stable ore feed to the mill, allowing the operation to prioritize waste stripping activities to expose higher-value mining fronts in the future. The mine is now positioned favourably to unlock higher-grade copper from the main pit in late 2026, and more specifically in 2027 and 2028.
Mill performance continues to demonstrate improvement following the optimization efforts initiated in 2025. The second semi-autogenous grinding (“SAG”) mill delivered increased throughput in the quarter, reaching commercial production in May and averaging 12,000 tonnes per day thereafter. Throughput continues to ramp up, with some days exceeding 20,000 tonnes per day in late June and into July.
The primary SAG mill was temporarily shut down on June 26, 2026 and will be offline until the end of July to complete the feed end head maintenance program. The replacement is tracking on schedule and will remove the constraints previously in place due to the localized damage to the feed end head that occurred in September 2025. While repairs are underway on the primary SAG mill, the second SAG continues to operate. Total mill throughput is expected to ramp up to 50,000 tonnes per day in the second half of 2026, once the primary SAG mill resumes operation.
Despite the operating constraints on the primary SAG, the mill processed 3.6 million tonnes of ore during the second quarter of 2026, an increase of 17% compared to the first quarter of 2026, benefitting from improved operating parameters from the second SAG mill and the temporary conveyor system trial in place to divert crushed pebbles from the primary SAG to the second SAG. Based on the successful trial, a more permanent system is being constructed and is scheduled to be commissioned by the fourth quarter.
Milled copper grades during the second quarter of 2026 were higher compared to the first quarter of 2026, driven by a greater proportion of ore feed mined from a higher-grade phase in the second quarter of 2026. Copper and gold recoveries during the quarter declined to 77% and 63%, respectively. This decline resulted from the ramp-up of mill throughput during the second quarter which revealed a grinding constraint in the ball mills, resulting in increased grind size and lower overall recoveries compared to the first quarter of 2026. Several grinding initiatives are underway, alongside flotation advanced process controls to improve recoveries.
Combined mine, mill and G&A unit operating costs in the second quarter of 2026 were C$25.52 per tonne milled, a marginal increase compared to the first quarter of 2026, primarily driven by higher mining and G&A costs, partially offset by lower milling costs and higher milled throughput.
Cash costi and sustaining cash costi, net of by-product credits, were $3.22 and $6.23, respectively, per pound of copper in the second quarter of 2026. Cash costi was higher than in the first quarter of 2026 primarily as a result of higher mining costs, less deferred stripping and lower by-product credits, partially offset by higher copper production. The increase in mill availability in the second quarter of 2026 allowed for higher mill throughput and enhanced operational efficiencies. Although second quarter cash cost was above the 2026 guidance range due to external cost pressures, Hudbay expects to achieve the full year 2026 cash cost guidance range in British Columbia.
Key Leadership Appointments
Hudbay is pleased to announce senior management team appointments as the Company positions itself for the next phase of transformational growth. Eugene Lei has been appointed President and Chief Financial Officer, with Peter Kukielski continuing as Chief Executive Officer. Robert Carter has been appointed Chief Operating Officer, transitioning from Andre Lauzon who will retire at the end of September.
Mr. Lei has been Chief Financial Officer since 2022 and has been responsible for providing strategic financial and capital markets leadership at Hudbay. He has been instrumental in the Company’s significant transformation, and under his leadership, Hudbay successfully executed the strategic plan to unlock Copper World, which included achieving stated balance sheet targets ahead of schedule and prudently allocating capital to maximize shareholder value. He currently serves as the Chair of the Copper World Joint Venture board. Mr. Lei joined Hudbay in 2012 and progressed through several senior management roles with increasing executive responsibilities. He has over 25 years of global mining finance, investment banking and corporate development experience. Prior to joining Hudbay, Mr. Lei was Managing Director, Mining at Macquarie Capital Markets, working as an advisor on transformative mining mergers and acquisitions and leading equity capital markets offerings. He holds a Bachelor of Commerce (Honours) degree from Queen’s University. In 2025, Mr. Lei was the recipient of the Globe and Mail’s Report on Business 2025 Canada’s Best Executive Award in the Finance category. In 2015, Mr. Lei received the Canadian Institute of Mining, Metallurgy and Petroleum’s CIM-Bedford Canadian Young (under 40) Mining Leaders Award.
Mr. Carter was appointed Senior Vice President, Canada in June 2025, and as leader of the Canadian operations, he has been responsible for the strategic oversight of Hudbay’s business activities in Manitoba and British Columbia. His leadership in Manitoba revitalized the operations into a sustainable cash flow contributor and he has strategically positioned the British Columbia operations for long-term success. Mr. Carter’s extensive experience with a deep focus on safety and continuous improvement has been invaluable at the operations and is seen through consistent operational execution. Previously, he held the role of Vice President, Manitoba Business Unit since April 2022 and prior to that was the General Manager of the Company’s Manitoba mines since 2018. He has held various other positions at Hudbay, including Manager of the Lalor Mine in Manitoba and Director of Business Development and Technical Services in Hudbay’s corporate group. He has nearly 30 years of mining industry experience in technical, operational and senior leadership roles, with the majority of those years at Hudbay. Mr. Carter holds a Bachelor of Science, Geological Engineering from the University of Manitoba and is a Professional Engineer registered with Professional Engineers Ontario and Engineers Geoscientists of Manitoba.
The Company is grateful for Mr. Lauzon’s significant contributions since joining Hudbay in 2016. Mr. Lauzon was the architect of the Copper World project, and his valued expertise as Chief Operating Officer has positioned the Company’s operating and growth platform for long-term success. Mr. Lauzon has worked closely with Mr. Lei over the past several years on operational finance and growth, focusing the business on delivering strong free cash flow. He has also worked closely with Mr. Carter in optimizing the Company’s Canadian operations and de-risking many growth projects across the business, and Mr. Carter’s appointment ensures a seamless transition in accordance with Hudbay’s succession planning. In his retirement, Mr. Lauzon will also provide on-going consulting and advisory services to Hudbay.
Hudbay has appointed Sebastien Fortin as Vice President and Head of the British Columbia Business Unit (“BCBU”). Mr. Fortin has been serving as Acting Head of the BCBU since October 2025 after first joining Copper Mountain as General Manager of Operations in 2024. Under his leadership, the operations have achieved many productivity and safety objectives, and he continues to drive significant improvements across the business to position Copper Mountain for long-term success. Mr. Fortin is a Professional Mining Engineer and he previously worked at Teck Resources for 16 years in several senior technical roles before joining Hudbay. He holds a bachelor's degree in Geological Engineering and a master’s degree in Mining Engineering, both from Laval University, and is a graduate of the MBA Program at Simon Fraser University.