TSX, NYSE – HBM 2026 No. 10 Hudbay Announces First Quarter 2026 Results and Delivers Record Quarterly Revenue and Adjusted EBITDA
Toronto, Ontario, May 1, 2026 – Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) released its first quarter 2026 financial results today. All amounts are in U.S. dollars, unless otherwise noted.
“Hudbay 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,” said Peter Kukielski, President and Chief Executive Officer. “Our 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 $1 billion in cash and cash equivalents. Our enhanced financial flexibility positions us well to advance the development of Copper World, invest in high-return opportunities at our operations and de-risk the Cactus project upon completion of the acquisition of Arizona Sonoran to deliver attractive growth and maximize long-term risk-adjusted returns for stakeholders.”
Achieved Record Adjusted EBITDA Driven by Stable Copper and Gold Production and Industry-Leading Margins; 2026 Production and Cost Guidance Reaffirmed
- Achieved record quarterly revenue of $757.3 million, record quarterly adjusted EBITDAi of $421.9 million and record adjusted net earnings attributable to owners of $159.1 million 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.
- Consolidated copper and gold production of 27,929 tonnes and 61,700 ounces, respectively, in the first quarter was in line with quarterly cadence expectations.
- Industry-leading cost performance continues with record low consolidated cash costi and sustaining cash costi, net of by-product credits, of $(1.80) and $0.00, respectively, in the first quarter.
- 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. Reaffirmed 2026 cost guidance, including consolidated cash costi guidance of $(0.30) to $(0.10) per pound of copper and sustaining cash costi guidance of $1.70 to $2.10 per pound of copper.
- Peru operations produced 20,573 tonnes of copper and 8,770 ounces of gold in the first quarter of 2026, in line with quarterly cadence expectations after the depletion of Pampacancha at the end of 2025, offset by record mill throughput during the first quarter. Peru cash costi, net of by-product credits, of $0.70 was better than expected as the Peru operations demonstrated strong cost control and benefitted from higher by-product prices.
- Manitoba operations produced 47,743 ounces of gold, 2,535 tonnes of copper, 4,565 tonnes of zinc and 213,208 ounces of silver in the first quarter of 2026, in line with quarterly cadence expectations. Manitoba cash costi of $408 per ounce of gold outperformed the low end of the 2026 annual guidance range of $500 to $800 per ounce as a result of higher by-product prices.
- British Columbia operations produced 4,821 tonnes of copper, 5,187 ounces of gold and 43,042 ounces of silver in the first quarter of 2026, in line with quarterly cadence expectations. British Columbia cash costi of $2.41 per pound of copper was within the 2026 annual cost guidance range of $1.50 to $2.50 per pound.
- First quarter net earnings attributable to owners and earnings per share attributable to owners were $190.4 million and $0.48, respectively, reflecting the strong gross profit margins as a result of higher metal prices.
After adjusting for various non-cash items on a pre-tax basis, first quarter adjusted earningsi per share attributable to owners was $0.40.
- Cash and cash equivalents were $1,003.8 million and total liquidityii was $1,429.0 million at the end of the first quarter of 2026, 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 Financial Discipline 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 expand margins and generate attractive 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 39% of gross revenue in the first quarter of 2026.
- Delivered free cash flowi generation of $102.3 million during the first quarter of 2026.
- Achieved record quarterly adjusted EBITDAi of $421.9 million in the first quarter of 2026, resulting in record trailing twelve month adjusted EBITDAi of $1,195.6 million.
- Net debti decreased by $434.1 million to $5.6 million as at March 31, 2026 compared to $439.7 million at December 31, 2025, benefitting from the closing of the Copper World joint venture transaction in January 2026.
- Net debt to adjusted EBITDA ratioi was 0.0x in the first quarter of 2026, significantly improved from 0.4x in the fourth quarter of 2025 as a result of the initial proceeds received Mitsubishi on closing of the Copper World joint venture transaction.
- Consistent with Hudbay’s prudent balance sheet management and focus on cost of capital, following the quarter, Hudbay repaid 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 continued financial flexibility in advance of a Copper World sanctioning decision later this year.
- 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
- Released annual reserve and resource update with mine life extensions and improved three-year production outlook, including a 24% increase in consolidated average annual copper production over the next three years, a four year mine life extension in Snow Lake to 2041 and a two year mine life extension at Copper Mountain to 2045.
- Closed the accretive $600 million joint venture transaction with Mitsubishi in January 2026, securing a premier, long-term 30% strategic partner for the development of Copper World. The Copper World definitive feasibility study (“DFS”) is on track for completion in mid-2026 with a project sanctioning decision expected in 2026.
- Received key permit amendments for the New Ingerbelle expansion project at Copper Mountain, enhancing the copper and gold production profile and securing a longer mine life.
- Announced acquisition of Arizona Sonoran Copper Company Inc. ("ASCU") to bring together two highly focused copper company with a pipeline of long‑life, low‑cost assets located in tier-one jurisdictions. When complementary copper growth assets in Arizona and strengthen Hudbay’s position as a premier Americascompleted, the acquisition is expected to enhance Hudbay’s long‑term copper production profile, expand its U.S. growth pipeline, and benefit from increasing demand for domestically produced critical minerals in the U.S. through the staged development of Copper World and Cactus.
- 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.
- Increased drilling activities at the copper-gold-zinc Talbot deposit near Snow Lake with eight drill rigs deployed and several step-out drill holes indicating resource expansion potential.
- Advancing plans to initiate a pre-feasibility study for the Mason copper project in Nevada.
Summary of First Quarter Results
Hudbay's diversified asset portfolio delivered consolidated copper production of 27,929 tonnes and consolidated gold production of 61,700 ounces in the first quarter of 2026. Consolidated copper and gold production was lower than the fourth quarter of 2025 due to the depletion of high grade Pampacancha ore in late 2025, partially offset by higher mill throughput in all three operations during the first quarter compared to the fourth quarter of 2025. Consolidated silver production of 787,449 ounces was lower than the fourth quarter of 2025 for similar reasons. Zinc production of 4,565 tonnes in the first quarter of 2026 also declined compared to the previous quarter, primarily reflecting lower ore grades at the Manitoba operations.
Cash generated from operating activities was $211.3 million and remained relatively consistent with the fourth quarter of 2025 as a result of a favourable change in non-cash working capital. Operating cash flow before changes in noncash working capital was $208.7 million during the first quarter of 2026, reflecting a decrease of $128.2 million from the fourth quarter of 2025. This decrease primarily relates to higher cash taxes paid in the first quarter of 2026 compared to the fourth quarter of 2025.
Adjusted EBITDAi was $421.9 million in the first quarter of 2026, achieving a new quarterly record and representing an increase compared to $385.9 million in the fourth quarter of 2025, as higher realized metal prices resulted in strong gross profit margins during the quarter.
Net earnings attributable to owners was $190.4 million, or $0.48 per share, in the first quarter of 2026 compared to $128.0 million, or $0.32 per share, in the fourth quarter of 2025. The increase is a result of lower depreciation due to the full depletion of Pampacancha realized in the fourth quarter of 2025 as well as increased mark-to-market gains on investments, partially offset by higher tax expense.
Adjusted net earnings attributable to ownersi and adjusted net earnings per share attributable to ownersi in the first quarter of 2026 were $159.1 million and $0.40 per share, respectively, after adjusting for various non-cash items on a pre-tax basis including a $38.7 million mark-to-market revaluation net gain on various instruments such as investments and share-based compensation and a non-cash $10.7 million foreign exchange loss, among other items. This compares to adjusted net earnings attributable to ownersi and net earnings per share attributable to ownersi of $86.0 million and $0.22 per share, respectively, in the fourth quarter of 2025. The increase is a result of higher realized metal prices and strong cost control across the operations resulting in higher gross profit margins.
Consolidated cash costi, net of by-product credits, in the first quarter of 2026 was $(1.80) per pound of copper, compared to $(0.63) per pound in the fourth quarter of 2025, as Hudbay continued to demonstrate strong cost control across its operations and benefited from higher by-product metal prices. The decrease in cash costs from the fourth quarter of 2025 was a result of higher by-product credits reflecting the benefits of Hudbay's diversified asset portfolio with higher realized prices across all metals.
Consolidated sustaining cash costi, net of by-product credits, in the first quarter of 2026 was $0.00 per pound of copper, compared to $0.94 per pound in the fourth quarter of 2025. This decrease was primarily due to the same factors impacting consolidated cash cost noted above, partially offset by planned higher cash sustaining capital expenditures compared to the first quarter of 2025.
Consolidated all-in sustaining cash costi, net of by-product credits, in the first quarter of 2026 was $0.73 per pound of copper, lower than the fourth quarter of 2025 due to the same reasons noted above, partially offset by higher corporate general and administrative ("G&A") costs from the revaluation of Hudbay's share-based compensation due to a higher share price.
As at March 31, 2026, total liquidity was $1,429.0 million, including $1,003.8 million in cash and cash equivalents, and undrawn availability of $425.2 million under Hudbay's revolving credit facilities. Net debti at the end of the first quarter was $5.6 million, marking a $434.1 million improvement from fourth quarter of 2025 primarily as a result of the cash received upon closing of the Copper World joint venture transaction.
On April 1, 2026, Hudbay repaid the outstanding aggregate principal amount of $472.5 million of its 2026 senior unsecured notes (the "2026 Notes") on maturity using a combination of cash on hand and a $272.0 million draw on its low-cost revolving credit facilities. After giving effect to this repayment Hudbay's total liquidity decreased by $472.5 million to $956.5 million. The repayment of the 2026 Notes using available liquidity is consistent with Hudbay’s prudent balance sheet management and focus on cost of capital and provides the Company with continued financial flexibility in advance of a Copper World sanctioning decision later this year. Hudbay expects that the current liquidity, together with cash flows from operations, will be sufficient to meet the Company's liquidity needs for the year.
Consolidated Financial Condition Mar. 31, 2026 Dec. 31, 2025 Mar. 31, 2025 (in $ millions, except net debt to adjusted EBITDA ratio)
| Cash and cash equivalents and short-term investments1 | 1,003.8 | 568.9 | 582.6 |
| Total long-term debt | 1,009.4 | 1,008.6 | 1,108.7 |
| Net debt2 | 5.6 | 439.7 | 526.1 |
| Working capital3 | (65.6) | 598.0 |
407.3
| Total assets | 6,896.9 | 6,223.3 | 5,507.0 |
| Equity attributable to owners of the Company | 3,533.5 | 3,231.0 | 2,653.2 |
| Net debt to adjusted EBITDA2 | 0.0 | 0.4 | 0.6 |
1 As at March 31, 2026 cash and cash equivalents includes $370.7 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 Working capital is determined as total current assets less total current liabilities as defined under IFRS and disclosed on the consolidated interim financial statements. Working capital as of March 31, 2026 and December 31, 2025 was impacted by an increase in the current portion of long-term debt as the 2026 Notes had a maturity date within one year as of the financial reporting date. Current portion of long-term debt was $472.5 million as of March 31, 2026 (December 31, 2025 - $472.1 million). As disclosed in this news release, the 2026 Notes were repaid in full on April 1, 2026 using a combination of available cash and a drawdown of $272 million on the Company's senior secured credit facilities.
Consolidated Financial Performance Three Months Ended
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | |
|---|---|---|---|
| Revenue | $000s 757.3 | 732.9 | 594.9 |
| Cost of sales | $000s | 462.8 | 363.6 |
389.3
| Earnings before tax | $000s | 339.0 | 257.1 | 171.3 |
| Net earnings | $000s | 191.5 | 128.0 | 99.2 |
| Net earnings attributable to owners | $000s | 128.0 | 100.4 |
190.4
Basic and diluted attributable earnings per $/share
0.48
0.32 0.25 share1 Adjusted earnings attributable per share1 $/share 0.22 0.24
0.40
Operating cash flow before change in non- $ millions
208.7
336.9 163.5 cash working capital Adjusted EBITDA1 $ millions 385.9 287.2
421.9
Free cash flow1 $ millions 102.3 225.0 84.4 1 Adjusted earnings per share - attributable to owners, 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 Mar. 31, 2026 Dec. 31, 2025 Mar. 31, 2025 Contained metal in concentrate and doré produced1
| Copper | tonnes | 27,929 | 33,069 | 30,958 |
| Gold | ounces | 61,700 | 84,298 | 73,784 |
| Silver | ounces | 787,449 | 1,002,985 | 919,775 |
| Zinc | tonnes | 5,703 | 6,265 |
4,565
Molybdenum tonnes 380 325 397
Payable metal sold
| Copper | tonnes | 29,544 | 34,132 | 31,768 |
| Gold2 | ounces | 66,562 | 84,424 | 75,092 |
| Silver2 | ounces | 923,051 | 871,006 | 1,006,968 |
| Zinc | tonnes | 3,897 | 3,972 | 4,857 |
| Molybdenum | tonnes | 375 | 190 | 448 |
Consolidated cash cost per pound of copper produced3
Cash cost $/lb (0.63) (0.45)
(1.80)
Sustaining cash cost $/lb 0.00 0.94 0.72 All-in sustaining cash cost $/lb 0.73 1.43 0.97 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 | 10,701,375 | 5,610,915 | 8,628,279 | |
| Copper | % | 0.29 | 0.31 | 0.28 |
| Gold | g/tonne | 0.03 | 0.03 | 0.03 |
| Silver | g/tonne | 3.11 | 3.27 | 3.14 |
| Molybdenum | 0.01 | 0.02 |
tonnes
% 0.01
| Pampacancha ore mined1,2 | tonnes | — | 4,152,000 | 389,189 |
| Copper | % | — | 0.43 | 0.44 |
| Gold | g/tonne | — | 0.27 | 0.26 |
| Silver | g/tonne | — | 4.84 | 3.68 |
| Molybdenum | 0.01 | 0.01 |
% —
| Total ore mined | tonnes | 10,701,375 | 9,762,915 | 9,017,468 |
| Strip ratio3 | 0.83 | 0.57 | 1.02 | |
| Ore milled | tonnes | 8,163,847 | 7,627,853 | 8,114,024 |
| Copper | % | 0.39 | 0.30 |
0.31
Gold g/tonne 0.18 0.05
0.06
| Silver | g/tonne | 3.09 | 4.19 | 3.22 |
| Molybdenum | % | 0.01 | 0.01 | 0.01 |
| Copper recovery | % | 84.5 | 84.6 |
81.5
| Gold recovery | % | 59.9 | 74.7 | 56.5 |
| Silver recovery | % | 65.4 | 71.1 | 66.0 |
| Molybdenum recovery | % | 36.0 | 38.8 | 35.7 |
Contained metal in concentrate
Copper tonnes 20,573 25,038 20,293 Gold ounces 32,865 7,869
8,770
Silver ounces 531,199 731,017 554,692 Molybdenum tonnes 380 325 397
Payable metal sold
Copper tonnes 28,361 22,890
21,056
| Gold | ounces | 15,162 | 37,874 | 14,362 |
| Silver | ounces | 676,119 | 650,384 | 714,654 |
| Molybdenum | tonnes | 375 | 190 | 448 |
| Combined unit operating cost4,5,6 | $/tonne | 11.61 | 14.51 | 11.09 |
| Cash cost5,7 | $/lb | 0.70 | 0.57 | 1.11 |
| Sustaining cash cost5 | $/lb | 1.53 | 1.92 |
1.43
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, please see the “Non-GAAP Financial Performance Measures” section of this news release.
6 Excludes $1.3 million or $0.17 per pound of overhead costs incurred during temporary suspension during the three months ended December 31, 2025.
7 Excludes approximately $1.3 million or $0.02 per tonne of overhead costs incurred during temporary suspension during the three months ended December 31, 2025.
The Peru operations continued to demonstrate steady operating performance with production and costs in line with expectations after 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 second half of 2026, which will allow the mine to deliver steady annual copper production, despite lower grades following the depletion of Pampacancha. Hudbay’s efforts to increase mill throughput align with the Peru Ministry of Energy and Mines’ regulatory change to allow mining companies to operate up to 10% above permitted levels. On March 6, 2026, Hudbay received permit approval to increase annual mill throughput capacity to 31.1 million tonnes from 29.9 million tonnes, providing the new base for the 10% permitted allowance. As part of the Company’s continuous improvement efforts, plans for additional mill throughput increases are underway.
In the first quarter of 2026, the Peru operations produced 20,573 tonnes of copper, 8,770 ounces of gold, 531,199 ounces of silver and 380 tonnes of molybdenum. Production of copper and gold were lower than the fourth quarter of 2025 due to the depletion of Pampacancha at the end of 2025. Hudbay is on track to achieve its 2026 production guidance for all metals in Peru.
Total ore mined in Peru in the first quarter of 2026 was 10% higher than the fourth quarter of 2025, a sizable increase due to enhanced fleet efficiency and improved productivity from mining only in the Constancia pit as opposed to two pits previously. Mining activities in the Pampacancha pit were completed during the fourth quarter of 2025 and the remaining stockpiled Pampacancha ore was fully processed during January 2026.
Mill throughput levels averaged approximately 90,700 tonnes per day in the first quarter of 2026, achieving a new quarterly record. Total mill throughput increased to 8.2 million tonnes during the first quarter of 2026, higher than the fourth quarter of 2025 due to higher mechanical availability as the prior quarter was impacted by the temporary operational interruption due to social unrest and by a scheduled semi-annual mill maintenance shutdown. Milled copper and gold grades decreased compared to the fourth quarter of 2025, primarily due to Pampacancha depletion in late 2025 which yielded better ore grades. Metal recoveries were in line with expectations and varied due to different proportions of ore feed from stockpiles and pits.
Combined mine, mill and G&A unit operating costi in the first quarter of 2026 was $11.61 per tonne, 20% lower than the fourth quarter of 2025 due to a scheduled semi-annual plant shutdown in November 2025 and lower power costs related to a new power purchase agreement that came into effect on January 1, 2026.
Cash costi, net of by-product credits, in the first quarter of 2026 was $0.70 per pound of copper, a 23% increase compared to the fourth quarter of 2025 due to lower gold by-product credits resulting from lower gold sales volumes offset in part by lower profit sharing, lower power costs as noted above, lower treatment and refining charges and lower freight costs. However, cash cost for the quarter outperformed the low-end of the 2026 guidance range as a result of strong operating cost performance and higher by-product prices, despite emerging 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 first quarter of 2026 was $1.43 per pound of copper, a decrease of 7% compared to the fourth quarter of 2025 due to lower sustaining capital related to lower tailings management facility construction costs during 2026 and mine maintenance timing, partially offset by higher cash costs noted above.
In April 2026, Constancia was recognized as the safest open pit operation in Peru during the 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 | 349,980 | 353,819 | 384,234 |
| Gold | g/tonne | 4.72 | 5.51 | 5.46 |
| Copper | % | 0.80 | 0.82 | 0.95 |
| Zinc | % | 2.10 | 2.55 | 2.42 |
| Silver | g/tonne | 26.22 | 29.52 | 31.23 |
New Britannia
Ore milled tonnes 179,808 189,124
181,403
Gold g/tonne 6.68 7.37
6.06
| Copper | % | 1.04 | 1.08 | 1.18 |
| Zinc | % | 1.09 | 1.30 | 1.00 |
| Silver | g/tonne | 22.75 | 31.17 | 33.35 |
| Gold recovery2 | % | 90.4 | 88.6 | 90.3 |
| Copper recovery | % | 90.8 | 88.6 | 90.3 |
| Silver recovery2 | % | 77.1 |
82.2 81.6
Stall Concentrator
| Ore milled | tonnes | 178,981 | 169,274 | 215,286 |
| Gold | g/tonne | 3.26 | 3.24 | 3.86 |
| Copper | % | 0.53 | 0.69 | 0.76 |
| Zinc | % | 3.22 | 4.32 | 3.44 |
| Silver | g/tonne | 29.68 | 24.97 | 29.53 |
| Gold recovery | % | 73.5 | 71.3 | 70.1 |
| Copper recovery | % | 86.5 | 88.3 |
85.9
Zinc recovery % 79.3 78.0 84.7 Silver recovery % 57.5 55.6 58.7
Total contained metal in concentrate and doré3
| Gold | ounces | 47,743 | 47,423 | 60,354 |
| Copper | tonnes | 2,535 | 3,326 | 3,469 |
| Zinc | tonnes | 4,565 | 5,703 | 6,265 |
| Silver | ounces | 213,208 | 214,493 | 285,603 |
Total payable metal sold4
Gold ounces 43,226 55,765
45,274
| Copper | tonnes | 2,658 | 2,024 | 2,725 |
| Zinc | tonnes | 3,897 | 3,972 | 4,857 |
| Silver | ounces | 193,472 | 175,324 | 232,255 |
| Combined unit operating cost5,6 | C$/tonne | 254 | 248 | 214 |
| Gold cash cost6 | $/oz | 408 | 705 | 376 |
| Gold sustaining cash cost6 | $/oz | 833 | 1,110 | 626 |
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. Doré includes sludge, slag and carbon fines.
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 Combined unit costs, cash cost and sustaining cash cost, net of by-product credits, per ounce of gold produced 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 Manitoba operations demonstrated strong operational agility in mitigating lower equipment utilization and labour availability at the Lalor mine, while continuing to prioritize gold ore feed for the New Britannia mill. This strategy successfully maintained strong gold production in the first quarter, supported by higher mill recoveries compared to the fourth quarter of 2025. Additionally, the operations achieved improved underground equipment availability, made significant advancements across the Flin Flon, Snow Lake, and Talbot exploration programs, and completed a successful graduation of a third Mining Fundamentals Training cohort.
In the first quarter of 2026, the Manitoba operations produced 47,743 ounces of gold, 2,535 tonnes of copper, 4,565 tonnes of zinc and 213,208 ounces of silver. Production of gold was higher than in the fourth quarter of 2025 due to higher gold recoveries and higher mill throughput, while all other metals were lower primarily due to lower grades. 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. With solid operating results in the first quarter of 2026, Hudbay is on track to achieve its 2026 production guidance for all metals in Manitoba.
The Lalor mine hoisted an average of approximately 3,900 tonnes of ore per day in the first quarter of 2026, strategically prioritizing gold zones to secure optimal feed for the New Britannia mill. Total ore mined at Lalor in the first quarter of 2026 was lower compared to the fourth quarter of 2025 because of lower effective utilization of equipment due to reduced workforce availability. Reduced workforce availability was offset by successfully onboarding nearly 80 new employees as recruitment and upskilling of employees are underway to increase proficiency of front-line employees. In the first quarter of 2026, gold grades decreased by 14% compared to the fourth quarter of 2025, in line with mine plan expectations.
The 1901 deposit delivered approximately 11,000 tonnes of development ore in the quarter, while continuing to advance haulage and exploration drifts to further delineate the orebody and support ongoing infrastructure projects. Looking ahead, the Company will prioritize exploration, definition drilling, orebody access, and establishing critical infrastructure as it continues to progress 1901 toward full production in 2027.
The New Britannia mill averaged approximately 2,000 tonnes per day in the first quarter of 2026, which includes consistent gold ore feed from Lalor and continued improvement initiatives to unlock future throughput capacity. The mill achieved gold recoveries of 90%, reflecting ongoing optimization efforts.
The Stall mill achieved improved gold recoveries of 73% in the first quarter of 2026, reflecting process optimization and enhanced gold recovery initiatives. The Stall mill processed more ore in the first quarter of 2026 compared to the fourth quarter of 2025, consistent with Lalor base metal production.
Combined mine, mill and G&A unit operating costs in the first quarter of 2026 was C$254 per tonne, a slight increase compared to the fourth quarter of 2025 due to higher onsite operating costs, partially offset by higher tonnes processed.
Cash costi, net of by-product credits, in the first quarter of 2026 was $408 per ounce of gold, representing a decrease compared to the fourth quarter of 2025 driven primarily by an increase in by-product credit contributions due to higher realized prices, while gold production remained relatively consistent with the prior quarter. First quarter cash costs outperformed the low end of the cash cost guidance range, positioning Hudbay well to achieve the 2026 cash cost guidance range in Manitoba.
Sustaining cash costi, net of by-product credits, in the first quarter of 2026 was $833 per ounce of gold, lower than the fourth quarter of 2025 primarily due to the same factors affecting cash costs, partially offset by higher sustaining capital.
The Snow Lake operations launched sustaining capital environmental projects, including a cyanide recycling initiative at New Britannia mill and pre-work for dam raise construction at the Anderson Tailings Impoundment Area to increase the physical tailings capacity, with both projects expected to be completed in 2026. As reflected in the Company’s annual guidance, sustaining capital expenditures are expected to be higher than 2025 due to these two investment projects.
British Columbia Operations Review
British Columbia Operations1 Three Months Ended
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||
|---|---|---|---|---|
| Ore mined2 | tonnes | 2,916,152 | 2,395,166 | 2,648,094 |
| Strip ratio3 | 7.06 | 7.18 | 6.73 | |
| Ore milled | tonnes | 2,268,405 | 2,760,986 |
3,078,342
| Copper | % | 0.20 | 0.26 | 0.33 |
| Gold | g/tonne | 0.08 | 0.09 | 0.10 |
| Silver | g/tonne | 0.67 | 1.10 | 1.28 |
| Copper recovery | % | 78.9 | 78.4 | 78.3 |
| Gold recovery | % | 63.3 | 63.4 |
64.7
Silver recovery % 64.6 71.4 69.8
Total contained metal in concentrate
| Copper | tonnes | 4,821 | 4,705 | 7,196 |
| Gold | ounces | 5,187 | 4,010 | 5,561 |
| Silver | ounces | 57,475 | 79,480 |
43,042 Total payable metal sold
| Copper | tonnes | 5,830 | 3,747 | 6,153 |
| Gold | ounces | 6,126 | 3,324 | 4,965 |
| Silver | ounces | 53,460 | 45,298 | 60,059 |
| Combined unit operating cost4,5 | C$/tonne | 39.80 | 25.98 |
25.23 2.41
Cash cost5 $/lb 4.82 2.44 Sustaining cash cost5 $/lb 7.81 8.87 4.24 1 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%.
2 Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled. 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 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.
During the first quarter of 2026, Hudbay continued to execute its multi-year optimization plan at Copper Mountain, achieving significant milestones in both mining productivity and project permitting. The Company remains on track to deliver the benefits of its three-year accelerated stripping program, positioned to unlock higher-grade ore in late 2026.
The British Columbia operations produced 4,821 tonnes of copper, 5,187 ounces of gold, and 43,042 ounces of silver in the first quarter of 2026, which is aligned with guidance and the planned mining sequence. Production of copper and gold in the first quarter of 2026 was higher than the fourth quarter of 2025, as higher throughput offset lower grades, while lower silver grades and recovery were not offset by higher throughput. Hudbay remains 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.
Mining activities reached a record total material movement of approximately 25.4 million tonnes in the first quarter, driven by an optimized mining sequence in the main pit and increased contributions from the north pit. This ramp-up was supported by the successful commissioning of a new production loader in January 2026. To further bolster the equipment fleet and add to this momentum, an additional shovel has been recently commissioned.
Total ore mined at Copper Mountain in the first quarter of 2026 was 2.9 million tonnes, an increase 22% compared to the fourth quarter of 2025. Mining activities continue to focus on improving operating routines towards defining a positive step change in performance of the mine material movement and mill throughput. Improvements include the optimization of the mining sequence, with improved bench configurations that eliminated phase interference, along with enhanced mobile equipment maintenance protocols leading to more consistent utilization of the mine fleet.
The mill processed 3.1 million tonnes of ore during the first quarter of 2026, an increase of 36% compared to the fourth quarter of 2025. Milling throughput benefitted from the completion of the second SAG mill and the mill optimization initiatives implemented in late 2025 resulting in increased mill throughput in the first quarter of 2026. Milled copper grades during the first quarter of 2026 were 23% lower than the fourth quarter of 2025, driven by lower grades in ore mined. Copper and gold recoveries in the first quarter of 2026 saw a marginal increase to 79% and 65%, respectively, when compared to the fourth quarter of 2025, in line with the expected performance range.
Mill performance continues to demonstrate improvement following the optimization efforts initiated in 2025. The second SAG mill delivered increased throughput in the quarter, averaging approximately 10,000 tonnes per day in March. While the primary SAG mill continues to operate under a reduced load and is being rigorously monitored ahead of a feed-end head replacement scheduled for late June and into July. The mill remains on track to achieve its permitted capacity of 50,000 tonnes per day in the second half of 2026.
Combined mine, mill and G&A unit operating costsi in the first quarter of 2026 were C$25.23 per tonne milled, which were lower than the fourth quarter of 2025 due to higher milled throughput, partially offset by higher milling and G&A costs.
Cash costi and sustaining cash costi, net of by-product credits, were $2.41 and $7.81, respectively, per pound of copper, in the first quarter of 2026. Cash costi was lower than the fourth quarter of 2025 primarily as a result of higher gold byproduct credits and resolving the unplanned maintenance and downtime issues on the primary SAG mill, as these issues constrained throughput and elevated costs in the fourth quarter of 2025. The resulting increase in mill availability in the first quarter of 2026 allowed for higher mill throughput and enhanced operational efficiencies. First quarter cash costs were within the 2026 guidance range, and despite emerging external cost pressures, Hudbay expects to achieve the full year 2026 cash cost guidance range in British Columbia.
The New Ingerbelle project reached a major milestone in the first quarter of 2026 with the receipt of the Mines Act and Environmental Management Act amended permits. The receipt of amended permits for the New Ingerbelle project supports continued copper production, increased gold production and future mine life extension potential from the New Ingerbelle satellite pit. The project is designed to access higher-grade mineralization while improving operational efficiency with a stripping ratio approximately three times lower than current mining areas. With these key approvals, Hudbay is advancing critical infrastructure required for the New Ingerbelle project to extend the mine life at Copper Mountain. Infrastructure projects include construction of an access road and a bridge across the Similkameen River and development of an east haul road to link New Ingerbelle with existing Copper Mountain operations, as well as advancement of essential water management and electrical systems, and waste rock facilities. A large drill program was initiated during the first quarter at New Ingerbelle to improve resource definition and expansion.
In February 2026, the Company further solidified its commitment to sustainable development and community relations by finalizing refreshed Participation Agreements with the Upper Similkameen Indian Band (“USIB”) and the Lower Similkameen Indian Band (“LSIB”). These agreements ensure that the benefits of the Copper Mountain and New Ingerbelle operations continue to be shared with First Nation partners.
On March 23, 2026, the LSIB submitted an application for judicial review of the regulatory decision to grant the New Ingerbelle permit amendment. Hudbay remains confident in the integrity and robustness of the regulatory process that led to the issuance of the permit amendment and Hudbay believes the court will uphold the decision. At the same time, Hudbay remains committed to working with the LSIB in a respectful and constructive manner to try to resolve the LSIB's concerns through the mechanisms that were agreed to by the parties in the participation agreement.
In April 2026, the B.C. government added the New Ingerbelle project to the province's list of priority resource projects. This list highlights the acceleration of major projects that strengthen economic growth, support resource development and create jobs and long-term value.
Continued Free Cash Flow Generation Driven by Expanding Operating Margins; Emerging External Cost Pressures Insulated by Diversified Copper and Gold Exposure
Hudbay has delivered several quarters of significant free cash flow generation as a result of steady operating performance, expanding margins from strong copper and gold exposure and a focus on cost control across the business. 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 39% of gross revenue in the first quarter of 2026.
Hudbay’s cost control efforts are focused on navigating emerging external cost pressures, such as higher fuel prices and short-term labour challenges. The Company is not experiencing any disruption to fuel availability and is mitigating the cost pressures through initiatives to further improve throughput and enhance operating efficiencies. Hudbay benefits from its diversified platform with significant by-product credits from gold production and the polymetallic nature of the Company’s ore deposits.
With the Company’s prudent balance sheet management and further reduction in net debt during the first quarter of 2026, Hudbay is well-positioned to advance its generational growth investments across the portfolio and allocate capital to the highest risk-adjusted return opportunities to deliver significant value for stakeholders.
Copper World DFS On-track for Completion in Mid-2026
In January 2026, Hudbay announced the closing of the joint venture transaction with Mitsubishi, securing a premier, long-term strategic partner for the development of Copper World. The $420 million of initial proceeds received at closing from Mitsubishi will be used to directly fund the remaining DFS costs and pre-sanctioning costs in addition to the initial project development costs for Copper World. Mitsubishi will contribute an additional $180 million within 18 months of closing to complete its 30% minority investment and will also fund its pro-rata 30% share of future equity capital contributions.
Feasibility activities for Copper World are well underway with the DFS progressing above 85% completion at the end of March. The DFS continues to be on-track for completion in mid-2026. Hudbay continues to execute detailed engineering work and other de-risking activities in preparation for a Copper World sanctioning decision expected later in 2026.
Announced Acquisition of Arizona Sonoran to Create the Third Largest Copper District in North America
On March 2, 2026, Hudbay entered into a definitive agreement (the “Arrangement Agreement”) pursuant to which Hudbay has agreed to acquire all of the issued and outstanding common shares of ASCU, not already owned by Hudbay, for consideration of 0.242 of a common share of Hudbay per common share of ASCU (the “Transaction”). Following completion of the Transaction, Hudbay will own a 100% interest in ASCU’s Cactus project.
position as a premier Americas-focused copper company with a pipeline of long‑life, low‑cost assets located in tier-one The Transaction brings together two highly complementary copper growth assets in Arizona and strengthens Hudbay’s jurisdictions. When completed, the Transaction is expected to enhance Hudbay’s long‑term copper production profile, expand its U.S. growth pipeline, and benefit from increasing demand for domestically produced critical minerals in the U.S. Significant operational efficiencies and regional synergies are expected with Hudbay's staged development of Copper World and Cactus.
The Transaction is subject to ASCU shareholder approval at a special meeting scheduled to be held on May 11, 2026 and customary regulatory approvals. The Transaction is expected to close in the second quarter of 2026.