TSX, NYSE – HBM 2025 No. 23 Hudbay Delivers Strong Second Quarter 2025 Results
Toronto, Ontario, August 13, 2025 – Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) today released its second quarter 2025 financial results. All amounts are in U.S. dollars, unless otherwise noted.
"We delivered another quarter of significant free cash flow generation driven by continued industry-leading cost margins and diversified exposure to copper and gold,” said Peter Kukielski, President and Chief Executive Officer. “Our strong financial performance enabled us to further reduce long-term debt, invest in our many high-return growth projects and further strengthen our balance sheet to its best position in over a decade. With the strong performance in the first half of the year, we are reaffirming our full year consolidated production guidance and are favourably tracking well below our full year consolidated cost guidance for 2025. The announcement of our Copper World joint venture agreement with Mitsubishi further solidifies our financial strength and significantly reduces our funding requirement for project development. We are delighted to have secured the premier joint venture partner and look forward to establishing a long-term strategic partnership that will unlock significant value in our copper growth pipeline. Through a highly accretive joint venture, an agreement to enhance the Copper World precious metals stream terms, and the achievement of our financial targets, we have successfully realized the key elements of our prudent financial plan and significantly de-risked the Copper World project as we advance towards a sanction decision in 2026.”
Delivered Strong Second Quarter Financial Results; Production Reaffirmed and Cost Guidance Improved
- Achieved revenue of $536.4 million and adjusted EBITDAi of $245.2 million in the second quarter of 2025.
- Strong financial results were driven by attractive operating cost margins and significant exposure to copper and gold across Hudbay’s diversified operating portfolio.
- Steady production continued into the second quarter with consolidated copper production of 29,956 tonnes and consolidated gold production of 56,271 ounces.
- Industry-leading cost performance continued in the second quarter with consolidated cash costi and sustaining cash costi per pound of copper produced, net of by-product credits, of $(0.02) and $1.65, respectively.
- Reaffirmed full year 2025 consolidated production guidance of 117,000 to 149,000 tonnes of copper and 247,500 to 308,000 ounces of gold.
- Improved full year 2025 consolidated cash costi guidance to $0.65 to $0.85 per pound from $0.80 to $1.00 per pound, as year-to-date results are trending well below the low end of the cost ranges due to increased exposure to gold by-product credits and continued strong cost control across all operations.
- Peru operations produced 21,710 tonnes of copper and 7,366 ounces of gold in the second quarter, in line with quarterly cadence expectations, despite lower average mill throughput of approximately 83,100 tonnes per day due to a planned semi-annual mill maintenance shutdown in the second quarter. Peru cash costi per pound of copper produced, net of by-product credits, was $1.45 in the second quarter, in line with the annual guidance range.
- Manitoba operations produced 43,235 ounces of gold in the second quarter, slightly lower than quarterly cadence expectations as a result of a temporary shutdown of operations due to wildfire evacuation orders,
partially offset by continued strong gold grades at Lalor and mill throughput outperformance at New Britannia. Manitoba cash costi per ounce of gold produced, net of by-product credits, was $710 in the second quarter, in line with the annual guidance range.
- British Columbia operations produced 6,634 tonnes of copper at a cash costi per pound of copper produced, net of by-product credits, of $2.39 in the second quarter, reflecting efficiency benefits from Hudbay’s optimization initiatives.
- Second quarter net earnings attributable to owners and earnings per share attributable to owners were $117.7 million and $0.30, respectively, a 17% and 20% increase, respectively, compared to the first quarter of 2025 and a significant increase compared to second quarter of 2024, driven by higher gross margins and strong cost control. After adjusting for various non-cash items, second quarter adjusted earningsi per share attributable to owners was $0.19.
- Cash and cash equivalents increased by $62.9 million to $625.5 million during the second quarter and total liquidity was $1,050.2 million as at June 30, 2025.
Continued Free Cash Flow Generation Driving Further Debt Reduction and Balance Sheet Resilience
- 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 flowi.
- While the majority of revenues continue to be derived from copper production, gold represented more than 36% of total revenues in the second quarter of 2025.
- Delivered the eighth consecutive quarter of meaningful free cash flowi generation with $87.8 million achieved during the second quarter of 2025, resulting in more than $400 million in annual free cash flowi over the last twelve months.
- Achieved adjusted EBITDAi of $245.2 million in the second quarter of 2025, resulting in record annual trailing twelve-month adjusted EBITDA of $995.9 million.
- Repurchased and retired an additional $50 million of senior unsecured notes through open market purchases at a discount to par during the second quarter, reducing total principal debt to $1.07 billion as of June 30, 2025.
- Approximately $295 million in total debt repayments and gold prepayment liability reductions have been achieved since the beginning of 2024.
- Net debti significantly reduced to $434.1 million as at June 30, 2025 compared to $525.7 million at December 31, 2024, a decrease of $91.6 million in the first half of 2025.
- Net debt to adjusted EBITDA ratioi was 0.4x at the end of the second quarter of 2025, an improvement from 0.6x at the end of the first quarter of 2025 and 0.8x at the end of the second quarter of 2024. This is the lowest net leverage level achieved since Hudbay developed Constancia over a decade ago.
- Current balance sheet expected to be further enhanced with proceeds from the $600 million Copper World joint venture transaction, as mentioned below. On a pro forma basis, as at June 30, 2025, this would increase cash and cash equivalents to more than $1.0 billion and total liquidity to more than $1.5 billion, while reducing net debti to zero.
Prudently Advancing Copper World with Accretive Minority Joint Venture Transaction, Enhanced Stream Transaction and Successful Achievement of “3-P” Plan
- Announced $600 million Copper World joint venture transaction with Mitsubishi Corporation (“Mitsubishi”) for a 30% minority interest (“JV Transaction”).
- Implies a significant premium to consensus net asset value for Copper Worldii.
- Mitsubishi’s $600 million initial investment will consist of $420 million at closing and $180 million within 18 months of closing.
- Mitsubishi will also fund its pro-rata 30% share of future equity capital contributions.
- Increases levered project IRR to Hudbay to approximately 90% based on pre-feasibility study (“PFS”) estimatesiii.
- Secures a premier long-term strategic partner in Mitsubishi, one of the largest Japanese trading houses with a global mining presence and a significant U.S. based business.
- Mitsubishi is the strategic partner of choice with investments in a world-class portfolio of large and high-quality copper assets, including five of the top twenty copper mines globally by 2024 production.
- Mitsubishi’s wholly owned U.S. subsidiary, Mitsubishi Corporation (Americas), has over 50 subsidiaries and affiliates across various business sectors, including mineral resources, oil & gas, real estate, mobility, food, power, etc., and manages the company’s strategic investments with approximately $9 billion in total assets and trading businesses in North America, which encompass trading activity with a substantial volume of copper, precious metals, and aluminum in the U.S. market.
- Strategic partnership validates the attractive long-term value of Copper World as a world-class copper asset and endorses the strong technical capabilities of Hudbay.
- Agreed on terms with Wheaton Precious Metals Corp. (“Wheaton”) to amend the existing precious metals streaming agreement.
- In addition to the initial $230 million stream deposit, provides an additional contingent payment of up to $70 million on a future potential mill expansion recognizing the long-term potential at Copper World.
- Ongoing payments for gold and silver amended from fixed pricing to 15% of spot prices to provide upside exposure to higher precious metals prices.
- Updated structure aligns with the current development plan for Copper World and the joint venture agreement.
- Successfully completes key elements of Hudbay’s prudent financial strategy as part of the three prerequisites (“3-P”) plan for Copper World with the announcements of the JV Transaction and the enhanced Wheaton stream, together with the achievements of stated balance sheet targets.
- Before accounting for proceeds from this Transaction, Hudbay had achieved more than $600 million of cash and cash equivalents and a 0.4x net debt to adjusted EBITDA ratioi, as of June 30, 2025, far exceeding the stated balance sheet targets.
- The Mitsubishi initial investment and its pro-rata equity capital contributions, together with the amended Wheaton stream, provide significant financial flexibility by reducing Hudbay's estimated share of the remaining capital contributions to approximately $200 million based on PFS estimatesiii, and defers Hudbay's first capital contribution until 2028 at the earliest.
- Well positioned to advance Copper World towards a sanction decision in 2026.
- Feasibility study for Copper World is underway with expected completion of a definitive feasibility study (“DFS”) by mid-2026.
- With this successful de-risking milestone at Copper World, Hudbay expects to accelerate detailed engineering, some key long lead items and other de-risking activities by advancing $20 million in growth capital expenditures to 2025 from future years, and is updating total 2025 Arizona growth spending guidance to $110 million from $90 million on a 100% basis.
Reinvesting in High-return Growth Initiatives to Further Enhance Copper and Gold Exposure
- Advancing high-return brownfield mill enhancement initiatives and greenfield copper projects to drive nearterm and long-term production growth with $33.1 million in growth capital expenditures during the second quarter of 2025.
- Optimization efforts at Copper Mountain are focused on executing the planned accelerated stripping program and mill throughput improvement projects. The planned conversion of the third ball mill to a second SAG mill remains on budget and on schedule, with completion of the initial phase achieved on July 10 and ramp up of the final phase expected in the fourth quarter of 2025.
- Mining of first zinc ore from the exploration and haulage drifts at 1901 was achieved in the second quarter, and planned activities over the next two years are expected to de-risk the path towards full production in 2027.
- Large exploration program in Snow Lake continues to execute threefold strategy focused on near-mine exploration to increase near-term production and mineral reserves, testing regional satellite deposits for additional ore feed to utilize available capacity at the Stall mill, and exploring the large land package for a potential new anchor deposit to meaningfully extend mine life.
- Drilling commenced at the Talbot copper-zinc-gold deposit near Snow Lake as part of a large summer exploration program.
- Continuing to advance Flin Flon tailings reprocessing opportunities through metallurgical test work and economic evaluation to assess the possibility of producing critical minerals and precious metals in an environmentally friendly manner.
- Completed transaction with Mitsubishi Materials Corporation to consolidate Hudbay’s 100% ownership of the Copper Mountain mine in a highly accretive transaction to further increase Hudbay's exposure to a long-life, high-quality copper asset in a tier-1 mining jurisdiction, resulting in an expected 200% increase in attributable copper production from Copper Mountain in 2027 compared to 2024iv.
- Permitting application for the New Ingerbelle growth project at Copper Mountain was accepted for review by the B.C. Major Mines Office in May and is proceeding through the Mine Review Committee review process.
- Continuing to enhance stakeholder engagement and advance additional metallurgical studies at the Mason copper project in Nevada.
Summary of Second Quarter Results
Steady production continued into the second quarter of 2025 with consolidated copper production of 29,956 tonnes and consolidated gold production of 56,271 ounces. Consolidated copper and gold production was lower than the first quarter of 2025 primarily due to the impacts of a temporary suspension of operations in Manitoba as a result of mandatory wildfire evacuation orders. Consolidated silver production of 814,989 ounces and zinc production of 5,130 tonnes in the second quarter of 2025 were also lower than the first quarter of 2025 for the aforementioned reason.
Cash generated from operating activities of $259.9 million increased compared to the first quarter of 2025 as a result of higher gross margins driven by stable copper production, higher realized prices and positive working capital management with reductions in finished goods inventories and receivable balances. Operating cash flow before change in non-cash working capital was $193.9 million during the second quarter of 2025, reflecting an increase of $30.4 million compared to the first quarter of 2025. The increase compared to the first quarter of 2025 was primarily the result of lower cash taxes paid offset by lower gold and copper sales volume in Manitoba. Second quarter adjusted EBITDAi was $245.2 million, a 15% decrease compared to $287.2 million in the first quarter of 2025 due to lower sales volume partially offset by higher gold prices.
Net earnings attributable to owners in the second quarter of 2025 was $117.7 million, or $0.30 per share, compared to $100.4 million, or $0.25 per share, in the first quarter of 2025. The increase in earnings is the result of high gross margins from strong revenue growth on the back of stable copper production and higher realized gold prices. In addition, the quarter benefited from various non-cash charges for revaluation gain of closed sites reclamation provisions, and significantly reduced net finance expenses, among other items, more than offsetting the high mining and income tax expense experienced in the current quarter.
Adjusted net earnings attributable to ownersi and adjusted net earnings per share attributable to ownersi in the second quarter of 2025 were $75.5 million and $0.19 per share, respectively, after adjusting for various non-cash items on a pre-tax basis such as a non-cash $18.9 million foreign exchange gain, a non-cash gain of $13.8 million related to quarterly revaluation of Hudbay's closed site environmental reclamation provision, a $6.3 million mark-to-market revaluation gain on various instruments such as investments and share-based compensation, and a $1.2 million gain related to flow-through share expenditures, among other items. This compares to adjusted net earnings attributable to ownersi and net earnings per share attributable to ownersi of $93.8 million and $0.24 per share in the first quarter of 2025.
In the second quarter of 2025, consolidated cash costi per pound of copper produced, net of by-product credits, was $(0.02), compared to $(0.45) in the first quarter of 2025 as the Company continued to demonstrate industry-leading cost performance. The change from the first quarter was a result of lower by-product credits and lower production levels in Manitoba during the second quarter. Consolidated sustaining cash costi per pound of copper produced, net of byproduct credits, was $1.65 in the second quarter of 2025, compared to $0.72 in the first quarter of 2025. The increase was driven by planned higher sustaining capital expenditures and the aforementioned variance in cash cost. Consolidated all-in sustaining cash costi per pound of copper produced, net of by-product credits, was $2.03 in the second quarter of 2025, higher than $0.97 in the first quarter of 2025 mainly due to the same reasons outlined above as well as higher corporate G&A from the revaluation of the Company’s stock based compensation due to relative higher share prices.
As at June 30, 2025, total liquidity was $1,050.2 million, including $625.5 million in cash and cash equivalents, and undrawn availability of $424.7 million under Hudbay's revolving credit facilities. Net debti at the end of the second quarter was $434.1 million, marking a $92.0 million improvement from the first quarter of 2025 as a result of deleveraging activities.
Consolidated Financial Condition Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024 (in $ millions, except net debt to adjusted EBITDA ratio)
| Cash and cash equivalents and short-term investments | 625.5 | 582.6 | 581.8 |
| Total long-term debt | 1,059.6 | 1,108.7 | 1,107.5 |
| Net debt1 | 434.1 | 526.1 | 525.7 |
| Working capital2 | 26.8 | 598.0 | 511.3 |
| Total assets | 5,628.6 | 5,507.0 | 5,487.6 |
| Equity attributable to owners of the Company | 2,863.3 | 2,653.2 | 2,553.2 |
| Net debt to adjusted EBITDA1,3 | 0.4 | 0.6 | 0.6 |
1 Net debt and net debit 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.
2 Working capital is determined as total current assets less total current liabilities as defined under IFRS and disclosed on the consolidated financial statements. Working capital as of June 30, 2025 was impacted by an increase in the current portion of longterm debt of $523.8 million as the 2026 Notes are now maturing within one year.
3 Net debt to adjusted EBITDA for the 12 month period.
Consolidated Financial Performance Three Months Ended
| Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | ||
|---|---|---|---|---|
| Revenue | $000s | 536.4 | 594.9 | 425.5 |
| Cost of sales | $000s | 359.9 | 363.6 | 347.9 |
| Earnings before tax | $000s | 153.1 | 171.3 | 0.4 |
| Net earnings | $000s | 114.7 | 99.2 | (20.3) |
| Net earnings attributable to owners | $000s | 117.7 | 100.4 | (16.5) |
Basic and diluted attributable earnings per $/share 0.30 0.25 (0.04) share1 Adjusted earnings attributable per share1 $/share 0.19 0.24 0.00 Operating cash flow before change in non- $ millions 193.9 163.5 123.7 cash working capital Adjusted EBITDA1 $ millions 245.2 287.2 145.0 Free cash flow1 $ millions 87.8 87.4 32.5 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 Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Contained metal in concentrate and doré produced1
| Copper | tonnes | 29,956 | 30,958 | 28,578 |
| Gold | ounces | 56,271 | 73,784 | 58,614 |
| Silver | ounces | 814,989 | 919,775 | 738,707 |
| Zinc | tonnes | 5,130 | 6,265 | 8,087 |
| Molybdenum | tonnes | 375 | 397 | 369 |
Payable metal sold
| Copper | tonnes | 30,354 | 31,768 | 25,799 |
| Gold2 | ounces | 62,466 | 75,092 | 61,295 |
| Silver2 | ounces | 894,160 | 1,006,968 | 667,036 |
| Zinc | tonnes | 2,871 | 4,857 | 5,133 |
| Molybdenum | tonnes | 427 | 448 | 347 |
Consolidated cash cost per pound of copper produced3
| Cash cost | $/lb | (0.02) | (0.45) | 1.14 |
| Sustaining cash cost | $/lb | 1.65 | 0.72 | 2.65 |
| All-in sustaining cash cost | $/lb | 2.03 | 0.97 | 3.07 |
1 Metal reported in concentrate is prior to deductions associated with smelter contract terms.
2 Includes total payable gold and silver in concentrate and in doré sold.
3 Cash cost, sustaining cash cost and all-in sustaining cash cost per pound of copper produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the “Non-IFRS Financial Performance Measures” section of this news release.
Peru Operations Review
Peru Operations Three Months Ended
| Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | ||
|---|---|---|---|---|
| Constancia ore mined1 | tonnes | 6,735,316 | 8,628,279 | 5,277,654 |
| Copper | % | 0.34 | 0.28 | 0.29 |
| Gold | g/tonne | 0.03 | 0.03 | 0.03 |
| Silver | g/tonne | 3.26 | 3.14 | 2.50 |
| Molybdenum | % | 0.02 | 0.02 | 0.01 |
| Pampacancha ore mined1 | tonnes | 762,172 | 389,189 | 1,288,789 |
| Copper | % | 0.26 | 0.44 | 0.41 |
| Gold | g/tonne | 0.24 | 0.26 | 0.20 |
| Silver | g/tonne | 4.59 | 3.68 | 3.83 |
| Molybdenum | % | 0.01 | 0.01 | 0.02 |
| Total ore mined | tonnes | 7,497,488 | 9,017,468 | 6,566,443 |
| Strip ratio4 | 1.47 | 1.02 | 1.74 | |
| Ore milled | tonnes | 7,559,047 | 8,114,024 | 7,718,962 |
| Copper | % | 0.34 | 0.30 | 0.30 |
| Gold | g/tonne | 0.05 | 0.05 | 0.07 |
| Silver | g/tonne | 3.58 | 3.22 | 2.85 |
| Molybdenum | % | 0.01 | 0.01 | 0.01 |
| Copper recovery | % | 84.5 | 84.6 | 83.1 |
| Gold recovery | % | 56.0 | 56.5 | 61.4 |
% Silver recovery 63.5 66.0 63.9 Molybdenum recovery % 38.7 35.7 46.3
Contained metal in concentrate
| Copper | tonnes | 21,710 | 20,293 | 19,217 |
| Gold | ounces | 7,366 | 7,869 | 10,672 |
| Silver | ounces | 551,979 | 554,692 | 450,833 |
| Molybdenum | tonnes | 375 | 397 | 369 |
Payable metal sold
| Copper | tonnes | 21,418 | 22,890 | 16,806 |
| Gold | ounces | 9,721 | 14,362 | 13,433 |
| Silver | ounces | 616,578 | 714,654 | 400,302 |
| Molybdenum | tonnes | 427 | 448 | 347 |
| Combined unit operating cost2,3 | $/tonne | 13.59 | 11.09 | 12.68 |
| Cash cost3 | $/lb | 1.45 | 1.11 | 1.78 |
| Sustaining cash cost3 | $/lb | 2.63 | 1.92 | 2.60 |
1 Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled. 2 Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.
3 Combined unit costs, cash cost and sustaining cash cost per pound of copper produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the “Non-IFRS Financial Performance Measures” section of this news release.
4 Strip ratio is calculated as waste mined divided by ore mined.
The Peru operations continued to demonstrate steady operating performance with production and costs in line with expectations. During the second quarter of 2025, the Peru operations produced 21,710 tonnes of copper, 7,366 ounces of gold, 551,979 ounces of silver and 375 tonnes of molybdenum. Copper production increased in the second quarter of 2025 compared to the first quarter of 2025 as milled copper grades exceeded first quarter levels, partially offset by planned lower mill throughput due to a scheduled mill maintenance shutdown in the second quarter. Production of all other metals were relatively in line with the first quarter of 2025.
The last major stripping program at Pampacancha was completed in the second quarter of 2025, which included higher amounts of waste stripping than planned. As a result, the Company replaced higher grade Pampacancha ore with higher grade Constancia ore in the second quarter and the Pampacancha deposit is now expected to be depleted in the first quarter of 2026 rather than in late 2025. Protests that started early in the third quarter temporarily impacted the transportation of supplies and concentrate to and from the Constancia site and has affected mine sequencing. The Constancia mill has continued to operate during this period, and the road blockades along the concentrate transportation route have since reopened, allowing Hudbay to reduce site concentrate inventory levels and replenish supplies. Despite short-term mine plan changes, the Company remains on track to achieve its 2025 production guidance for all metals in Peru.
Total ore mined in Peru in the second quarter of 2025 was lower than the first quarter of 2025 but remained in line with mine plan expectations.
Mill throughput levels averaged approximately 83,100 tonnes per day in the second quarter of 2025, lower than the first quarter of 2025 due to the planned semi-annual mill maintenance shutdown during the current quarter. Milled copper grades increased by 13% relative to the first quarter of 2025 due to higher grades in the Constancia pit. Milled gold grades in the second quarter remained consistent with gold grades in the first quarter of 2025 as Pampacancha stripping activities were underway in both quarters. The mill achieved copper recoveries of 85% in the second quarter of 2025, remaining consistent with the first quarter of 2025. Recoveries of gold and silver during the quarter were in line with Hudbay's metallurgical models for the ore that was being processed.
Combined mine, mill and G&A unit operating costi in the second quarter of 2025 was $13.59 per tonne, 23% higher than the first quarter, as expected, due to higher plant maintenance costs and lower tonnes processed associated with the planned semi-annual mill maintenance shutdown.
Cash costi per pound of copper produced, net of by-product credits, in the second quarter of 2025 was $1.45, an increase of 31% compared to the first quarter of 2025 due to planned higher maintenance costs and lower by-product credits, partially offset by lower treatment and refining charges and higher copper production. Sustaining cash costi per pound of copper produced, net of by-product credits, was $2.63 in the second quarter of 2025, an increase compared to the first quarter of 2025 due to planned higher sustaining capital typically associated with the period after the rainy season is complete, as well as the same factors affecting cash costs. Hudbay is reaffirming its full year 2025 cash cost guidance range in Peru.
Manitoba Operations Review
Manitoba Operations Three Months Ended Jun. 30, 2025 Mar. 31, 2025 Jun. 30, 2024 Lalor
| Ore mined | tonnes | 303,062 | 384,234 | 385,478 |
| Gold | g/tonne | 4.97 | 5.46 | 3.75 |
| Copper | % | 0.61 | 0.95 | 0.69 |
| Zinc | % | 2.46 | 2.42 | 2.76 |
| Silver | g/tonne | 29.94 | 31.23 | 22.29 |
New Britannia
| Ore milled | tonnes | 162,934 | 189,124 | 167,899 |
| Gold | g/tonne | 6.48 | 7.37 | 5.31 |
| Copper | % | 0.65 | 1.18 | 0.94 |
| Zinc | % | 1.01 | 1.00 | 0.92 |
| Silver | g/tonne | 30.29 | 33.35 | 24.42 |
| Gold recovery1 | % | 89.4 | 90.3 | 90.0 |
| Copper recovery | % | 87.4 | 90.3 | 94.4 |
| Silver recovery1 | % | 78.0 | 81.6 | 83.1 |
Stall Concentrator
| Ore milled | tonnes | 144,204 | 215,286 | 229,527 |
| Gold | g/tonne | 3.19 | 3.86 | 3.02 |
| Copper | % | 0.56 | 0.76 | 0.59 |
| Zinc | % | 4.20 | 3.44 | 4.05 |
| Silver | g/tonne | 29.55 | 29.53 | 21.74 |
| Gold recovery | % | 67.9 | 70.1 | 65.5 |
| Copper recovery | % | 84.7 | 88.3 | 85.4 |
| Zinc recovery | % | 84.8 | 84.7 | 87.1 |
| Silver recovery | % | 51.9 | 58.7 | 54.2 |
Total contained metal in concentrate and doré2
| Gold | ounces | 43,235 | 60,354 | 43,488 |
| Copper | tonnes | 1,612 | 3,469 | 2,642 |
| Zinc | tonnes | 5,130 | 6,265 | 8,087 |
| Silver | ounces | 197,970 | 285,603 | 210,647 |
Total payable metal sold
| Gold | ounces | 46,932 | 55,765 | 42,763 |
| Copper | tonnes | 2,133 | 2,725 | 2,429 |
| Zinc | tonnes | 2,871 | 4,857 | 5,133 |
| Silver | ounces | 209,594 | 232,255 | 197,486 |
| Combined unit operating cost3,4,5 | C$/tonne | 241 | 214 | 225 |
| Gold cash cost4,5 | $/oz | 710 | 376 | 771 |
| Gold sustaining cash cost4 | $/oz | 1,025 | 626 | 1,163 |
1 Gold and silver recovery includes total recovery from concentrate and doré. Doré includes sludge, slag and carbon fines 2 Metal reported in concentrate is prior to deductions associated with smelter terms.
3 Reflects combined mine, mill and G&A costs per tonne of milled ore.
4 Combined unit cost, cash cost, sustaining cash cost per pound of copper produced, net of by-product credits, gold cash cost and 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.
5 Excludes $3.2 million (C$14 per tonne or $74 per ounce) of overhead costs incurred during temporary suspension during the three months ended June 30, 2025.
Despite significant disruptions from the mandatory wildfire evacuation orders in May and June of this year, the Manitoba operations showed remarkable resilience and achieved several key milestones in the second quarter of 2025. Notably, the New Britannia mill achieved record monthly production in April, the 1901 mining area delivered its first ore for processing in June, and Hudbay signed an exploration agreement with Mosakahiken Cree Nation to explore the Talbot deposit.
The Manitoba operations delivered strong results in the second quarter of 2025, producing 43,235 ounces of gold, 1,612 tonnes of copper, 5,130 tonnes of zinc and 197,970 ounces of silver. Compared to the first quarter of 2025, production of gold, copper, silver and zinc in the second quarter of 2025 decreased by 28%, 54%, 31% and 18%, respectively, due to lower production in June associated with the wildfire evacuation shutdown, in addition to the first quarter of 2025 having significantly better than expected gold grades.
Hudbay’s dedicated on-site team demonstrated tremendous effort and unwavering commitment during the unprecedented wildfire situation near the Company’s Flin Flon and Snow Lake operations during the second quarter. The team tirelessly safeguarded Hudbay’s assets and collaborated closely with local communities and provincial authorities, providing essential support to emergency response efforts. These efforts resulted in no damage to Hudbay’s infrastructure and facilities.
The Lalor mine managed through a period of reduced workforce prior to and after the 13-day temporary suspension of operations in June due to mandatory wildfire evacuation orders. Despite these challenges, the mine averaged 3,300 tonnes per day in the second quarter, strategically prioritizing mining from gold zones to ensure a consistent feed for the New Britannia mill. Gold grades were in line with mine plan expectations, while being lower than the exceptional gold grade mined in the first quarter of 2025. Copper, zinc and silver grades were also consistent with mine plan expectations for the quarter. Continuous improvement efforts at Lalor focused on ore quality and advancing stope modifications to enhance mucking productivity. Capital development continued, aiming to secure high-grade coppergold mineralization from Zone 27 and prepare Zone 17 for the next copper-gold mining front.
The New Britannia mill achieved record monthly production levels in April, exceeding 2,300 tonnes per day. This significant milestone is a testament to ongoing low-capital projects and recent piping improvements that boosted throughput and maintained gold recoveries. The New Britannia mill throughput averaged approximately 1,800 tonnes per day in the second quarter of 2025, reflecting the record levels achieved in April, offset by lower throughput levels in June associated with the wildfire evacuation shutdown. Gold recovery in the second quarter of 2025 was 89%, remaining relatively consistent with the first quarter of 2025.
In the second quarter, the Stall mill continued to process less ore compared to prior periods, which is aligned with Hudbay's strategy of allocating more Lalor ore feed to New Britannia to maximize gold recoveries. The Stall mill achieved gold recoveries of 68% in the second quarter of 2025, reflecting benefits from recent recovery improvement programs.
The Manitoba operations continued to drive operating efficiencies despite temporary disruptions from wildfire evacuations orders in June. Combined mine, mill and G&A unit operating costsi in the second quarter were C$241 per tonne, higher than the comparative period primarily due to lower total throughput in June, partially offset by continued strong cost performance at New Britannia. Mining costs were higher than in the first quarter of 2025 as a result of the wildfires in June; milling costs were higher as a result of higher unit costs at Stall associated with lower throughput as mentioned above, offset by strong unit cost performance at New Britannia.
Cash costi per ounce of gold produced, net of by-product credits, in the second quarter of 2025 was $710, an increase from the first quarter of 2025 primarily due to lower gold production and lower by-product credits as per the production variances mentioned above. Sustaining cash costi per ounce of gold produced, net of by-product credits, in the second quarter of 2025 was $1,025, an increase compared to the first quarter of 2025, primarily due to the same factors affecting cash cost, partially offset by lower sustaining capital costs during the quarter. With the first half of the year outperforming the low end of the cash cost guidance range, Hudbay is well positioned to achieve the 2025 cash cost guidance range in Manitoba.
On July 10, 2025, a second mandatory wildfire evacuation order was issued for the town of Snow Lake and a controlled, safe and orderly temporary suspension of the Snow Lake operations was implemented. Essential personnel, authorized by emergency services, have remained onsite when safe to do so in order to continue supporting fire mitigation activities and safeguarding Hudbay’s assets. To-date, there has been no structural damage to Hudbay’s onsite surface infrastructure and facilities. As of August 12, 2025, the wildfire situation near Snow Lake has improved and Hudbay anticipates returning to normal operations later in August. The Company continues to expect to achieve its 2025 annual guidance metrics for all metals in Manitoba, despite the impact from the wildfires.
British Columbia Operations Review
British Columbia Operations1 Three Months Ended
| Jun. 30, 2025 | Mar. 31, 2025 | Jun. 30, 2024 | ||
|---|---|---|---|---|
| Ore mined2 | tonnes | 2,509,969 | 2,648,094 | 2,164,722 |
| Strip ratio3 | 7.50 | 6.73 | 7.61 | |
| Ore milled | tonnes | 2,900,008 | 2,760,986 | 3,232,427 |
| Copper | % | 0.28 | 0.33 | 0.25 |
| Gold | g/tonne | 0.09 | 0.10 | 0.07 |
| Silver | g/tonne | 0.97 | 1.28 | 1.01 |
| Copper recovery | % | 81.0 | 78.3 | 82.3 |
| Gold recovery | % | 68.2 | 63.4 | 57.2 |
| Silver recovery | % | 71.8 | 69.8 | 73.9 |
Total contained metal in concentrate
Copper tonnes 6,634 7,196 6,719 ounces Gold 5,670 5,561 4,454 Silver ounces 65,040 79,480 77,227
Total payable metal sold
| Copper | tonnes | 6,803 | 6,153 | 6,564 |
| Gold | ounces | 5,813 | 4,965 | 5,099 |
| Silver | ounces | 67,988 | 60,059 | 69,248 |
| Combined unit operating cost4,5 | C$/tonne | 24.51 | 25.98 | 19.65 |
| Cash cost5 | $/lb | 2.39 | 2.44 | 2.67 |
| Sustaining cash cost5 | $/lb | 5.18 | 4.24 | 5.56 |
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.
Hudbay continues its focus on advancing optimization plans at the Copper Mountain mine, including ramping up mining activities to optimize the mine ore feed to the plant and implementing site improvement initiatives that mirror Hudbay's successful processes at Constancia. These optimization initiatives have successfully increased the total tonnes moved and improved mill reliability.
The British Columbia operations produced 6,634 tonnes of copper, 5,670 ounces of gold and 65,040 ounces of silver during the second quarter of 2025. Production of copper and silver decreased compared to the first quarter of 2025 primarily as a result of lower head grades from the use of stockpiled ore. Production of gold was higher than the first quarter of 2025, largely due to higher recoveries. Hudbay remains on track to achieve its 2025 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 are focused on continuing to execute the three-year accelerated stripping program intended to bring higher grade ore into the mine plan. During the first half of 2025, Hudbay made significant progress on the key mill improvement project to ultimately increase the nominal plant capacity to its permitted level of 50,000 tonnes per day. The project entails the conversion of the third ball mill to a second SAG mill, and the initial phase of this project was successfully completed shortly following the end of the second quarter on time and on budget with the achievement of first ore production on July 10. The final phase of the project involves converting an interim feed arrangement to a permanent configuration and remains on target for completion in the second half of 2025.
Total ore mined at Copper Mountain in the second quarter of 2025 was 2.5 million tonnes, a 5% decrease compared to the first quarter of 2025 due to unplanned production loading fleet activities, despite an increase in total material moved in the quarter as a result of effective usage of the mining fleet to execute the accelerated stripping program to access higher grade phases in the pit. Planned ore stockpiles were utilized as ore feed to the mill while the mine operation team continued to increase waste stripping activities to expose additional ore mining fronts. The continued focus in the second quarter of 2025 was on mining efficiencies, including a significant improvement with blasted muck inventories and operator recruitment to effectively utilize the available haul truck fleet. As a result, total material moved is expected to increase quarter-over-quarter in 2025 as per the mine plan.
The mill processed 2.9 million tonnes of ore during the second quarter of 2025, higher than the first quarter of 2025, but was limited by both planned and unplanned maintenance, elevated clay material which impacted the secondary crushing circuit, and the planned lowering of the main crushed live ore pile feeding the mill due to area constraints related to the completion of the ball mill to SAG conversion project. Several mill initiatives were implemented in 2025, including recovery improvements, crushing circuit chute modifications, installation of advanced semi-autogenous grinding control instrumentation, and redesigned SAG liner package. Progressive mill improvements and updated operational procedures are expected to continue through 2025.
Milled copper grades during the second quarter of 2025 were lower than the first quarter due to higher amounts of ore processed from stockpile in the second quarter, as mentioned above, as well as the mining of a high-grade mining sequence during the first quarter of 2025. Copper recoveries were 81% in the second quarter of 2025, an increase from 78% in the first quarter of 2025 despite lower copper head grades. Gold recoveries of 68% in the second quarter of 2025 were higher than the first quarter of 2025, despite slightly lower gold head grades.
Combined mine, mill and G&A unit operating costsi in the second quarter of 2025 were C$24.51 per tonne milled, lower than the first quarter of 2025 due to lower milling and G&A costs and higher ore milled, partially offset by higher mining costs.
Cash costi and sustaining cash costi per pound of copper produced, net of by-product credits, in the second quarter of 2025 were $2.39 and $5.18, respectively. Cash costs were 2% lower than in the first quarter of 2025, largely due to higher by-product credits. Sustaining cash costs were 22% higher than the first quarter of 2025 due to higher sustaining capital including higher capitalized stripping costs. With cash costsi in the first half of the year at the low-end of the 2025 guidance range, Hudbay is well positioned to achieve the full year 2025 cash cost guidance range in British Columbia.