TSX, NYSE – HBM 2026 No. 7 Hudbay Provides Annual Reserve and Resource Update with Mine Life Extensions and Improved Three-Year Production Outlook
Toronto, Ontario, March 27, 2026 – Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) today released its annual mineral reserve and resource update and issued new three-year production guidance. All amounts are in U.S. dollars, unless otherwise noted.
- Affirmed 2026 production guidance and issued new 2027 and 2028 production guidance,
demonstrating increased copper and strong gold production from Hudbay’s stable operating platform with three long-life operations in tier-one mining jurisdictions in the Americas.
- Consolidated copper production is expected to average 147,000i tonnes per year over the next three
years, an increase of 24% from 2025 production. Consolidated copper production is expected to average 159,000i tonnes per year in 2027 and 2028, representing a 28% increase from expected 2026 production. This reflects the benefits from the expected completion of the optimization efforts at Copper Mountain and mill throughput improvement projects at Constancia in 2026.
- Strong complementary gold exposure with consolidated gold production expected to average 243,000i
ounces per year over the next three years, reflecting continued strong production in Manitoba and the expected contribution from New Ingerbelle in British Columbia starting in 2028.
- Constancia’s expected mine life extends to 2040, reflecting higher mill throughput rates contributing
to a 9% increase in expected average annual copper production to 90,000i tonnes per year in 2027 and 2028 from 2026 levels.
- Snow Lake’s expected mine life extended by four years to 2041, with average annual gold production
of 190,000i ounces expected over the next three years from continued strong mill throughput rates at New Britannia.
- Copper Mountain’s expected mine life extended by two years to 2045, with significantly higher copper
and gold production averaging 57,500i tonnes and 38,500i ounces, respectively, per year over 2027 and 2028, an increase of 92% and 43%, respectively, from 2026 levels. This increase reflects higher mill throughput, higher grades from completion of the accelerated stripping program in late 2026 and the expected contribution from New Ingerbelle starting in 2028.
- Large exploration program in Snow Lake continues to execute a 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.
- Definitive feasibility study at Copper World on track for completion in mid-2026 with a sanctioning
decision expected in 2026. Closed the accretive $600 million joint venture transaction with Mitsubishi Corporation (“Mitsubishi”) in January 2026, securing a premier, long-term 30% strategic partner for the development of Copper World and achieving the key financial elements of the Company’s 3-P plan.
“Our updated mineral reserve estimates and three-year production outlook demonstrate Hudbay’s continued success from our exploration initiatives and an improved copper and gold production profile from our three long life operations in tier one mining jurisdictions in the Americas,” said Peter Kukielski, Hudbay’s President and Chief Executive Officer. “With our newly released guidance through 2028, consolidated copper production is expected to increase by 24%, complemented by continued strong gold exposure. This growth is underpinned by meaningful mine life extensions at Snow Lake and Copper Mountain reinforcing the longevity and upside of our operating base. As we embark on generational reinvestments across our business in exploration and brownfield growth opportunities, continue to advance Copper World toward a sanctioning decision in 2026, and integrate the Cactus project through the strategic acquisition of Arizona Sonoran, Hudbay is in an optimal position to deliver attractive high-return growth, significantly increase long-term copper exposure and unlock meaningful value for stakeholders.”
Constancia Operations
Constancia is Hudbay’s 100% owned copper operation located in the province of Chumbivilcas in southern Peru. The Pampacancha high-grade satellite deposit was mined between 2021 and 2025 and provided a significant source of higher-grade mill feed in recent years until mining activities were completed in the fourth quarter of 2025.
Current mineral reserve estimates total 488 million tonnes at 0.24% copper containing approximately 1.2 million tonnes of copper, after deducting 2025 mining depletion. The expected mine life of Constancia is now until 2040 as mill throughput rates are expected to increase to more than 90,000 tonnes per day starting in the second half of 2026 with the installation of two pebble crushers and related permit amendments. These initiatives are intended to optimize the utilization of existing infrastructure and support improved long-term operating performance.
In 2025, Hudbay optimized the mine plan during a period of social unrest by prioritizing Pampacancha mining activities and supplementing mill ore feed from low-grade stockpiles. Following the accelerated depletion of Pampacancha, mining activities at Pampacancha were completed in the fourth quarter of 2025. The remaining stockpiled Pampacancha ore was fully processed in early 2026 and the Company is now exclusively mining and processing ore from the Constancia deposit.
Annual production at the Constancia operations is expected to average approximately 87,500i tonnes of copper and 18,500i ounces of gold over the next three years. This reflects steady copper production levels as higher mill throughput is expected to offset lower grades starting in 2026 after the completion of mining at Pampacancha in late 2025.
Current mineral reserves and resources (exclusive of reserves) for Constancia and Pampacancha as of January 1, 2026 are summarized below.
| Constancia Operations | Cu Grade | Mo Grade | Au Grade | Ag Grade | |
|---|---|---|---|---|---|
| Mineral Reserve and Resource | Tonnes | (%) | (g/t) | (g/t) | (g/t) |
| Estimates1,2,3,4,5 | |||||
| Constancia Reserves | |||||
| Proven | 458,800,000 | 0.243 | 75 | 0.036 | 2.39 |
| Probable | 28,300,000 | 0.193 | 68 | 0.034 | 1.98 |
| Total Proven and Probable - Constancia | 487,100,000 | 0.240 | 74 | 0.036 | 2.37 |
| Pampacancha Reserves6 | |||||
| Proven | 900,000 | 0.216 | 128 | 0.307 | 3.57 |
| Probable | - | - | - | - | - |
| Total Proven and Probable - Pampacancha | 900,000 | 0.216 | 128 | 0.307 | 3.57 |
| Total Proven and Probable | 488,000,000 | 0.240 | 74 | 0.036 | 2.37 |
| Constancia Resources | |||||
| Measured | 106,300,000 | 0.232 | 74 | 0.036 | 2.36 |
| Indicated | 70,400,000 | 0.222 | 87 | 0.032 | 2.00 |
| Inferred – Open Pit | 27,700,000 | 0.271 | 71 | 0.049 | 2.54 |
| Inferred – Underground | 6,500,000 | 1.200 | 69 | 0.140 | 8.62 |
| Pampacancha Resources | |||||
| Inferred | - | - | - | - | - |
| Total Measured and Indicated | 176,700,000 | 0.228 | 79 | 0.034 | 2.22 |
| Total Inferred | 34,200,000 | 0.447 | 71 | 0.067 | 3.70 |
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 Mineral reserves are estimated using a minimum NSR cut-off of $7.30 per tonne at Pampacancha, $7.30 per tonne at Constancia and assuming metallurgical recoveries (applied by ore type) of 85.29% for copper on average for the life of mine.
3 Mineral resource estimates are based on resource pit design and do not include factors for mining recovery or dilution.
4 The open pit mineral resources are estimated using a minimum NSR cut-off of $7.30 per tonne and assuming metallurgical recoveries (applied by ore type) of 84.6% for copper on average for the life of mine, while the underground inferred resources at Constancia Norte are based on a 0.65% copper cut-off grade.
5 Long-term metal prices of $4.40 per pound copper, $17.00 per pound molybdenum, $2,800 per ounce gold and $32.00 per ounce silver were used to confirm the economic viability of the mineral reserve estimates and to estimate mineral resources.
6 There are no additional mineral resources left at Pampacancha where mining activities have been completed in 2025.
Snow Lake Operations
Hudbay’s 100% owned Snow Lake operations in Manitoba include the Lalor gold-copper-zinc mine, the New Britannia gold mill, the Stall base metals concentrator, the 1901 zinc-gold deposit and several satellite deposits. The Lalor mine achieved commercial production in 2014 and reached a significant milestone in December 2024 with the recovery of one million ounces of gold from the mine. In 2025, near-mine exploration at the Lalor mine was conducted and is expected to continue into 2026, with the objective of increasing mineral reserves and resources and supporting future production.
The 1901 deposit was discovered in 2019, and in 2020 and 2021 Hudbay conducted infill drilling, metallurgical testing and a pre-feasibility study at 1901. In 2025, an exploration drift was successfully completed to reach the 1901 mineralized zone in order to conduct exploration activities and establish critical infrastructure ahead of full production expected in late 2027.
Current mineral reserve estimates in Snow Lake total 19.6 million tonnes with approximately 1.9 million ounces of gold and an expected mine life to 2041. After adjusting for mining depletion, this represents an increase of approximately 330,000 ounces of gold and an additional four years of mine life. High grade resource to reserve conversions and reevaluation gains have offset reductions related to the optimization of the mine plan through the removal of lower grade dilution and low value reserves requiring significant development.
Snow Lake’s life-of-mine production schedule has been optimized for higher mill throughput rates at New Britannia, maximizing gold production and cash flows. In 2025, the Snow Lake operations continued to deliver meaningful gold production despite operational disruptions, including two months of mandatory wildfire evacuations and a one-week power outage caused by a winter storm. The Snow Lake operations produced 173,453 ounces of gold in 2025 with the New Britannia mill continuing to perform strongly, achieving a new monthly throughput record of approximately 2,300 tonnes per day in December 2025.
Annual production at the Snow Lake operations is expected to average approximately 190,000i ounces of gold and 11,500i tonnes of copper over the next three years. This reflects continued strong gold production levels, with New Britannia mill throughput expected to continue to operate above 2,200 tonnes per day and Lalor operating at 4,000 to 4,500 tonnes per day, supplemented by contributions from the 1901 deposit ramp up.
Current mineral reserves and resources (exclusive of reserves) for Lalor, 1901 and other Snow Lake satellite deposits as of January 1, 2026 are summarized below.
| Lalor Mine and 1901 Deposit | Au Grade | Zn Grade | Cu Grade | Ag Grade | |
|---|---|---|---|---|---|
| Tonnes | |||||
| Mineral Reserve and Resource Estimates1,2,3,4,5,6,7 | (g/t) | (%) | (%) | (g/t) | |
| Gold Zone Reserves | |||||
| Proven – Lalor | 4,800,000 | 4.28 | 0.70 | 0.51 | 27.0 |
| Proven – 1901 | - | - | - | - | - |
| Probable – Lalor | 4,900,000 | 3.41 | 0.27 | 0.87 | 16.8 |
| Probable – 1901 | - | - | - | - | - |
| Total Proven and Probable - Gold | 9,800,000 | 3.84 | 0.48 | 0.69 | 21.8 |
| Base Metal Zone Reserves | |||||
| Proven – Lalor | 4,400,000 | 2.42 | 4.36 | 0.36 | 27.7 |
| Proven – 1901 | 900,000 | 2.25 | 7.60 | 0.27 | 24.0 |
| Probable – Lalor | 600,000 | 1.50 | 4.11 | 0.34 | 25.1 |
| Probable – 1901 | 700,000 | 1.67 | 8.23 | 0.22 | 28.5 |
| Total Proven and Probable – Base Metal | 6,700,000 | 2.22 | 5.20 | 0.33 | 27.0 |
| Total Gold and Base Metal Zone Reserves | |||||
| Proven and Probable – Lalor | 14,800,000 | 3.31 | 1.80 | 0.58 | 23.7 |
| Proven and Probable – 1901 | 1,600,000 | 1.99 | 7.89 | 0.24 | 26.0 |
| Total Proven and Probable (Gold and Base Metal) | 16,500,000 | 3.18 | 2.40 | 0.54 | 23.9 |
| Gold Zone Resources | |||||
| Inferred – Lalor | 1,400,000 | 4.64 | 0.21 | 2.48 | 15.4 |
| Inferred – 1901 | 2,700,000 | 4.20 | 0.65 | 0.58 | 16.3 |
| Total Inferred - Gold | 4,100,000 | 4.35 | 0.50 | 1.24 | 16.0 |
| Base Metal Zone Resources | |||||
| Inferred – Lalor | 400,000 | 1.42 | 1.74 | 1.28 | 18.3 |
| Inferred – 1901 | 100,000 | 1.23 | 8.12 | 0.13 | 38.1 |
| Total Inferred – Base Metal | 500,000 | 1.37 | 3.39 | 0.98 | 23.4 |
| Total Gold and Base Metal Zone Resources | |||||
| Inferred – Lalor | 1,800,000 | 3.95 | 0.53 | 2.22 | 16.0 |
| Inferred – 1901 | 2,800,000 | 4.06 | 1.01 | 0.56 | 17.3 |
| Total Inferred (Gold and Base Metal) | 4,600,000 | 4.02 | 0.82 | 1.21 | 16.8 |
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 Lalor mineral reserves and resources are estimated using a NSR cut-off ranging from C$161 to C$185 per tonne, assuming a long hole mining method and depending on mill destination.
3 Individual stope gold grades at Lalor and 1901 were capped at 10 grams per tonne.
4 1901 mineral reserves and resources are estimated using a minimum NSR cut-off of C$199 per tonne.
5 Mineral resources do not include factors for mining recovery or dilution.
6 Base metal mineral resources are estimated based on the assumption that they would be processed at the Stall concentrator while gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator. 7 Long-term metal prices of $2,800 per ounce gold, $1.25 per pound zinc, $4.40 per pound copper and $32.00 per ounce silver with an exchange rate of 1.33 C$/US$ were used to confirm the economic viability of the mineral reserve estimates and to estimate mineral resources.
| Snow Lake Regional Deposits - Gold | Au Grade | Zn Grade | Cu Grade | Ag Grade | |
|---|---|---|---|---|---|
| Mineral Reserve and Resource | Tonnes | (g/t) | (%) | (%) | (g/t) |
| Estimates1,2,3,4,5,6,7 | |||||
| Probable Reserves | |||||
| WIM | 2,450,000 | 1.6 | 0.25 | 1.63 | 6.3 |
| 3 Zone | 660,000 | 4.2 | - | - | - |
| Total Probable (Gold) | 3,110,000 | 2.2 | 0.20 | 1.28 | 5.0 |
| Inferred Resources | |||||
| New Britannia | 2,750,000 | 4.5 | - | - | - |
| Birch | 570,000 | 4.4 | - | - | - |
| Total Inferred (Gold) | 3,320,000 | 4.5 | - | - | - |
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 WIM mineral reserves assume processing recoveries of 98% for copper, 88% for gold, and 70% for silver based on processing through New Britannia's flotation and tails leach circuits.
3 3 Zone mineral reserves assume processing recoveries of 85% for gold based on processing through New Britannia's leach circuit. 4 Long-term metal prices of $1,700 per ounce gold, $1.25 per pound zinc, $4.00 per pound copper and $23.00 per ounce silver with an exchange rate of 1.33 C$/US$ were used to confirm the economic viability of the mineral reserve estimates.
5 Mineral resources do not include factors for mining recovery or dilution.
6 Gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator. 7 New Britannia mineral resource estimates have been reported at a minimum true width of 1.5 metres and with a cut-off grade varying from 2 grams per tonne (at the lower part of New Britannia) to 3.5 grams per tonne (at the upper part of New Britannia).
| Snow Lake Regional Deposits – Base Metal | Au Grade | Zn Grade | Cu Grade | Ag Grade | |
|---|---|---|---|---|---|
| Mineral Reserve and Resource | Tonnes | (g/t) | (%) | (%) | (g/t) |
| Estimates1,2,3,4,5,6,7 | |||||
| Indicated Resources | |||||
| Pen II | 470,000 | 0.3 | 8.89 | 0.49 | 6.8 |
| Talbot | 2,190,000 | 2.1 | 1.79 | 2.33 | 36.0 |
| Total Indicated (Base Metals) | 2,660,000 | 1.8 | 3.04 | 2.01 | 30.9 |
| Inferred Resources | |||||
| Watts | 3,150,000 | 1.0 | 2.58 | 2.34 | 31.0 |
| Pen II | 130,000 | 0.3 | 9.81 | 0.37 | 6.8 |
| Talbot | 2,450,000 | 1.9 | 1.74 | 1.13 | 25.8 |
| Total Inferred (Base Metals) | 5,730,000 | 1.3 | 2.39 | 1.78 | 28.3 |
Note: totals may not add up correctly due to rounding.
1 Mineral resources are exclusive of mineral reserves and do not have demonstrated economic viability.
2 Mineral resources do not include factors for mining recovery or dilution.
3 Base metal mineral resources are estimated based on the assumption that they would be processed at the Stall concentrator. 4 Watts and Pen II mineral resources were initially estimated using metal price assumptions that vary marginally over the assumptions used to estimate mineral resources at Lalor. In the Qualified Person’s opinion, the combined impact of these small variations does not have any impact on the mineral resource estimates.
5 Watts mineral resources are estimated using a minimum NSR cut-off of C$150 per tonne, assuming processing recoveries of 90% for copper, 80% for zinc, 70% for gold and 70% for silver.
6 Pen II mineral resources are estimated using a minimum NSR cut-off of C$75 per tonne.
7 The above resource estimates table includes 100% of the Talbot mineral resources reported by Rockcliff Metals Corp. in its 2020 NI 43-101 technical report published on SEDAR+.
Snow Lake Exploration Program – Executing Threefold Strategy
Hudbay continues to execute an extensive exploration program in Snow Lake through geophysical surveying and multiphased drilling campaigns as part of its threefold exploration strategy.
1) Near-Mine Exploration to Further Increase Near-term Production and Extend Mine Life
Near-mine exploration at the Lalor mine and the adjacent 1901 deposit continued to support near-term production growth and mine life extension. The exploration program will continue into 2026 to potentially increase mineral reserves and resources and enable resource conversion.
The Company completed development of the initial exploration drift at the 1901 deposit in 2025 and commenced delivery of zinc-rich development ore for processing at Stall. Activities at the 1901 deposit over the next two years will focus on exploration and definition drilling, orebody access and establishing the critical infrastructure required to support full production beginning in late 2027. Exploration activities will include step-out drilling to potentially extend the orebody, as well as infill drilling aimed at converting inferred mineral resources within the gold lenses to mineral reserves.
2) Testing Regional Satellite Deposits to Utilize Available Processing Capacity and Increase Production
Hudbay increased its land package in Snow Lake by more than 250% through the acquisition of Rockcliff Metals Corp. (“Rockcliff”) in 2023, which included the addition of several known deposits located within trucking distance of the Snow Lake processing infrastructure. These former Rockcliff deposits, together with several deposits already owned by Hudbay, have created an attractive portfolio of regional deposits in Snow Lake, including the Talbot, New Britannia, Rail, Pen II, Watts, 3 Zone and WIM deposits. The continued strong performance from the New Britannia mill has freed up additional processing capacity at the Stall mill, where there is approximately 1,500 tonnes per day of available capacity which could be utilized by the regional satellite deposits to potentially increase production and extend the life of the Snow Lake operations beyond 2041.
The above-mentioned properties are shown in Figure 1, and includes:
- Talbot – Consolidated 100% ownership of this copper-zinc-gold rich deposit through Hudbay’s acquisition of Rockcliff in 2023. Rockcliff estimated indicated mineral resources of 2.2 million tonnes at 2.3% copper, 1.8% zinc and 2.1 grams per tonne gold.
- New Britannia – Acquired by Hudbay in 2015 with the acquisition of the New Britannia gold mill, the New Britannia deposit is a former producing gold mine that produced approximately 600,000 ounces between 1949 and 1958 and an additional 800,000 ounces between 1995 and 2005. Significant mineral resources remain accessible at New Britannia and the Company is advancing plans on potential future development and rehabilitation of the existing mining infrastructure at New Britannia to unlock significant incremental gold production in Snow Lake.
- Rail – Also acquired as part of Hudbay’s acquisition of Rockcliff in 2023, Hudbay’s 2024 drill program yielded new intersections of high-grade copper-gold mineralization. These results will be combined with historical drilling results on the property to update the geological model and assess its economic potential.
- Pen II – Hudbay consolidated land adjacent to this low tonnage, near surface, high-grade zinc deposit through the Rockcliff acquisition. Rockcliff intersected mineralization down-dip from Hudbay’s deposit and identified a deep geophysical conductive plate.
- Watts – A copper-zinc-rich deposit located near powerlines and 100 kilometres by road from the Stall mill. Drilling by Hudbay in 2019 successfully extended the known high-grade copper mineralization.
- 3 Zone – Acquired by Hudbay in 2015, this gold-rich deposit is located three kilometres from the New Britannia mill and is expected come into production after the Lalor deposit is depleted.
- WIM – Acquired by Hudbay in 2018, this copper-gold deposit is located 15 kilometres from the New Britannia mill and is expected to come into production after the Lalor deposit is depleted.
Talbot Initial Drill Results Confirm Resource Expansion Potential
Talbot is a copper-zinc-gold rich volcanogenic massive sulfide (“VMS”) deposit located within trucking distance of existing processing infrastructure in Snow Lake. Successful drilling campaigns are expected to expand the resource base and support a pre-feasibility study (“PFS”) aimed at upgrading mineral resources to mineral reserves and extending the overall mine life of the Snow Lake operations. In April 2025, Hudbay announced the signing of an exploration agreement with the Mosakahiken Cree Nation covering exploration activities within their traditional and ancestral territory, including at Talbot.
In July 2025, Hudbay commenced an extensive summer drilling program at Talbot focused on expanding the known mineralization at depth, testing geophysical targets and conducting an infill drill program in the upper portion of the orebody to support the PFS, as seen in Figure 2. As part of the initial drilling program in 2025, Hudbay drilled five holes to test the continuity of the Talbot deposit at depth, with all holes intersecting intervals of copper mineralization including 2.4% copper and 1.8 grams per tonne gold over 10.4 metres. In addition, another hole intersected copper mineralization over an estimated length of 19.7 metres based on core logging, for which assay results are pending.
The 2026 drilling program will continue with an expanded fleet of eight drill rigs deployed to test additional targets and expand the footprint of the deposit at depth. The efforts will determine the future scope of a PFS including shaft versus ramp access and the best location for a future exploration shaft. Hudbay intends to update Rockcliff’s prior mineral resource estimate for Talbot using Hudbay’s standard methods that have demonstrated high mineral reserve conversion rates.
3) Exploring Large Land Package for New Anchor Deposit to Significantly Extend Mine Life
A majority of the land claims acquired as part of the Rockcliff acquisition in 2023 have been untested by modern deep geophysics, which was the discovery method for the Lalor deposit. A large geophysics program is currently underway consisting of surface electromagnetic surveys using cutting edge techniques that enable the team to detect targets at depths of almost 1,000 metres below surface. The planned geophysics program includes 600 kilometres of ground electromagnetic surveys and an extensive airborne geophysics survey. Over the past two years, Hudbay has progressed the geophysics program mapping, as seen in Figure 1, which will continue in 2026 with the outlined regions of focus.
Expanded Flin Flon Exploration Partnership with Marubeni and JOGMEC
On January 22, 2026, the Company announced the signing of an amended and restated option agreement with Japan Organization for Metals and Energy Security (“JOGMEC”) and Marubeni Corporation (“Marubeni”), where Hudbay granted JOGMEC an option to acquire a 10% interest in three projects located within trucking distance of Hudbay’s processing facilities in Flin Flon, Manitoba. In order to exercise its option, JOGMEC is required to fund at least C$6 million in exploration expenditures over a period of approximately three years, with Hudbay acting as the operator carrying out the exploration activities. The agreement is an amendment and restatement of the option agreement with Marubeni from March 2024, pursuant to which Marubeni’s wholly-owned Canadian subsidiary was granted an option to acquire a 20% interest in the three projects, provided it, funds at least C$12 million in exploration expenditures over the designated earn-in period, which is inclusive of past contributions made by Marubeni since March 2024.
The option agreement focuses on three projects in the Flin Flon region, namely Cuprus-White Lake, Westarm and North Star, which were selected by Marubeni prior to the original March 2024 agreement and following a period of detailed due diligence. All three properties hold past producing mines that generated meaningful production with attractive grades of both base metals and precious metals. The properties remain highly prospective with potential for further discovery based on the attractive geological setting, limited historical deep drilling and promising geochemical and geophysical targets. Cuprus-White Lake, Westarm and North Star are all within 20 kilometres of Hudbay’s Flin Flon milling complex.
Copper Mountain Mine
Hudbay’s 100% owned Copper Mountain mine is an open pit copper mine in southern British Columbia, which also produces gold and silver as by-product metals. Hudbay initially acquired a 75% interest in Copper Mountain as part of its acquisition of Copper Mountain Mining Corporation in June 2023, with Mitsubishi Materials Corporation (“MMC”) holding the remaining 25% minority interest. In April 2025, Hudbay acquired MMC’s 25% minority interest and, as a result, Hudbay now holds a 100% interest in the Copper Mountain mine.
Current mineral reserve estimates at Copper Mountain total 345 million tonnes at 0.26% copper and 0.12 grams per tonne gold, containing approximately 883 thousand tonnes of copper and 1.3 million ounces of gold. These mineral reserves support a mine life until 2045, representing an extension of two years, with additional upside potential for future resource conversion and mine life extension through 122 million tonnes of measured and indicated resources grading 0.21% copper and 0.10 grams per tonne gold and 347 million tonnes of inferred resources grading 0.24% copper and 0.12 grams per tonne gold, in each case exclusive of mineral reserves. Post 2025 mining depletion, the mineral reserve estimates have slightly improved in both tonnes and grade due to the addition of approximately 15 million tonnes at New Ingerbelle, driven by an optimized pit design and the substitution of low-grade mineralization with higher grade ore identified during the 2025 infill program. 2026 drilling activities will focus on the continued conversion of high value inferred resources at New Ingerbelle to potentially further extend mine life at Copper Mountain.
Since acquiring Copper Mountain in June 2023, Hudbay has focused on advancing operational optimization and stabilization initiatives at the mine, including reactivating the full mining fleet, adding additional haul trucks, opening additional mining faces, optimizing ore feed to the plant and implementing plant improvement initiatives that mirror Hudbay’s successful processes at Constancia.
In 2025, the conversion of the third ball mill to a second SAG mill was substantially completed and the permanent feeder configuration was commissioned in December 2025. A feed-end head replacement for the primary SAG mill is planned for mid-2026. Mill throughput is expected to ramp toward its permitted capacity of 50,000 tonnes per day in the second half of the year.
In February 2026, amended permits were received for the New Ingerbelle expansion project, supporting continued copper production, increased gold production and future mine life extension potential from the New Ingerbelle satellite pit. The expansion is designed to access higher-grade mineralization while improving operational efficiency with a stripping ratio approximately three times lower than current mining areas. In parallel, Hudbay also refreshed Participation Agreements with the Upper Similkameen Indian Band (“USIB”) and Lower Similkameen Indian Band (“LSIB”) in February 2026.
These developments support Hudbay’s continued efforts to stabilize and optimize operations at Copper Mountain and position the British Columbia operations to contribute to strong consolidated copper production as Copper Mountain continues to ramp up. Annual production at the British Columbia operations is expected to average approximately 48,000i tonnes of copper and 35,000 ounces of gold over the next three years.
Current mineral reserves and resources (exclusive of reserves) for Copper Mountain as of January 1, 2026 are summarized below.
| Copper Mountain Mine | ||||
|---|---|---|---|---|
| Cu Grade | Au Grade | Ag Grade | ||
| Mineral Reserve and Resource | Tonnes | |||
| (%) | (g/t) | (g/t) | ||
| Estimates1,2,3,4,5 | ||||
| Reserves | ||||
| Proven | 159,000,000 | 0.251 | 0.111 | 0.71 |
| Probable | 186,000,000 | 0.260 | 0.133 | 0.60 |
| Total Proven and Probable | 345,000,000 | 0.256 | 0.123 | 0.65 |
| Resources | ||||
| Measured | 35,000,000 | 0.226 | 0.086 | 0.83 |
| Indicated | 87,000,000 | 0.203 | 0.101 | 0.72 |
| Measured and Indicated | 122,000,000 | 0.210 | 0.097 | 0.75 |
| Inferred | 347,000,000 | 0.235 | 0.124 | 0.57 |
Note: totals may not add up correctly due to rounding.
1 Mineral resource estimates are exclusive of mineral reserves. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. Mineral reserves and resources include Copper Mountain and New Ingerbelle deposits.
2 Mineral reserves are estimated using a 0.1% copper cut-off grade and assuming metallurgical recoveries (applied by ore type) of 87% for copper for New Ingerbelle, 85% copper for Copper Mountain, 70% for gold for New Ingerbelle, 65% for gold for Copper Mountain and 70% for silver for both deposits throughout the life of mine.
3 Long term metal prices of $4.40 per pound copper, $2,800 per ounce gold and $32.00 per ounce silver were used to confirm the economic viability of the mineral reserve estimates and to estimate mineral resources.
4 Mineral resource estimate tonnes and grades constrained to a Lerch Grossman revenue factor 1 pit shell, post mining depletion. 5 Mineral resources are estimated using 0.1% copper cut-off grade.
3-Year Production Outlook
Hudbay has affirmed its 2026 production guidance as issued on February 20, 2026, and has issued new 2027 and 2028 production guidance in connection with updated life-of-mine models to support annual reserve and resource estimates. Consolidated copper production over the next three years is expected to average 147,000i tonnes, representing an increase of 24% from 2025 levels. 2027 and 2028 consolidated copper production is expected to average 159,000 tonnes per year, a 28% increase from 2026 expected consolidated copper production of 124,000 tonnes. The increase is due to higher expected copper production in British Columbia as a result of mill throughput ramping up to the targeted 50,000 tonnes per day in the second half of 2026, higher grades British Columbia in 2027 from the completing of the accelerated stripping schedule, and higher expected mill throughput in Peru from the addition of two pebble crushers and operating efficiencies in the second half of 2026. Consolidated gold production over the next three years is expected to average 243,000i ounces per year, representing a decrease of 9% from 2025 levels after the depletion of the high-grade Pampacancha satellite deposit in December 2025 but an increase in unstreamed higher-valued gold production in Manitoba. Continued strong gold production levels are expected to be driven by New Britannia mill throughput continuing to exceed expectations operating above 2,200 tonnes per operating day and the contribution from New Ingerbelle in 2028.
Peru’s three-year copper production guidance reflects stable copper production averaging 87,500i tonnes per year, as the depletion of Pampacancha in 2025 is offset by higher mill throughput and operating efficiencies. Peru expects to install two pebble crushers to increase mill throughput in the second half of 2026, in addition to implementing other mill optimization initiatives. 2027 and 2028 copper production is expected to be 90,000i tonnes, a 9% increase from 2026 expected copper production of 82,500 tonnes, benefiting from a full year of increased mill throughput and operating efficiencies and mine plan optimization to smooth copper production over the three-year period. The benefits of the mine plan optimization initiatives extend beyond the 3-year outlook with 2029 copper production expected to continue near these levels. Gold production over the next three years is expected to average 18,500i ounces, lower than 2025 levels as Hudbay accelerated the depletion of the high-grade Pampacancha satellite deposit in December 2025.
Manitoba’s three-year production guidance reflects continued strong gold production levels averaging 190,000i ounces per year. New Britannia mill throughput is expected to continue to exceed expectations and operate above 2,200 tonnes per day, far exceeding its original design capacity of 1,500 tonnes per day. The production guidance anticipates Lalor operating between 4,000 to 4,500 tonnes per day, supplemented by contributions from the 1901 deposit with a ramp up to 1,000 tonnes per day by 2028. In 2026, Hudbay expects to complete a feasibility study on the Stall mill tailings leaching project, which has the potential to further increase gold production starting in 2028. The benefits of this project have not been reflected in the production guidance. Zinc production is expected to increase to 32,500i tonnes by 2028, a 76% increase from 2026 and 2027 expected zinc production of 18,500i tonnes, driven by higher production from the 1901 deposit.
British Columbia’s three-year copper production guidance reflects sequentially higher copper production averaging 48,000i tonnes per year, as a result of the completion of the conversion of the third ball mill to second SAG mill in late 2025, installation of the replacement feed-end head at the primary SAG mill in the third quarter of 2026, and higher grades from the completion of the accelerated stripping program in 2026. 2027 and 2028 copper production is expected to average 57,500i tonnes, almost double 2026 expected copper production of 30,000i tonnes, benefiting from a full year of mill throughput at the targeted 50,000 tonnes per day and the unlocking of higher grades from the accelerated stripping program. Similarly, gold production over the next three years reflects sequentially higher production with average annual gold production of 38,500i ounces over 2027 and 2028, representing a 43% increase from 2026 as a result of the expected contribution from New Ingerbelle starting in 2028.
| 3-Year Production Outlook | 2026 Guidance | 2027 Guidance | 2028 Guidance | |
| Contained Metal in Concentrate and | ||||
| Doré1 | ||||
| Peru Copper tonnes 75,000 - 90,000 80,000 - 100,000 80,000 - 100,000 Gold ounces 15,000 - 20,000 17,000 - 21,000 17,000 - 21,000 Silver ounces 1,900,000 - 2,400,000 1,200,000 - 1,400,000 2,000,000 - 2,500,000 Molybdenum tonnes 900 - 1,100 1,100 - 1,400 500 - 700 Manitoba Gold ounces 180,000 - 220,000 170,000 - 210,000 160,000 - 200,000 Zinc tonnes 16,000 - 21,000 16,000 - 21,000 29,000 - 36,000 Copper tonnes 10,000 - 13,000 10,000 - 14,000 9,000 - 13,000 Silver ounces 800,000 - 1,000,000 950,000 - 1,200,000 1,000,000 - 1,300,000 British Columbia Copper tonnes 25,000 - 35,000 50,000 - 70,000 50,000 - 60,000 Gold ounces 22,000 - 32,000 26,000 - 38,000 38,000 - 52,000 Silver ounces 200,000 - 290,000 500,000 - 660,000 420,000 - 580,000 Total Copper tonnes 110,000 - 138,000 140,000 - 184,000 139,000 - 173,000 Gold ounces 217,000 - 272,000 213,000 - 269,000 215,000 - 273,000 Zinc tonnes 16,000 - 21,000 16,000 - 21,000 29,000 - 36,000 Silver ounces 2,900,000 - 3,690,000 2,650,000 - 3,260,000 3,420,000 - 4,380,000 Molybdenum tonnes 900 - 1,100 1,100 - 1,400 500 - 700 |
1 Metal reported in concentrate and doré is prior to smelting and refining losses or deductions associated with smelter terms.
Copper World Project
Copper World is a copper development project located in Pima County, Arizona, approximately 50 kilometres southeast of Tucson. Following completion of the Copper World joint venture transaction with Mitsubishi in January 2026 (the “JV Transaction”), Hudbay holds a 70% interest in Copper World LLC, which owns the Copper World project, with Mitsubishi holding the remaining 30% minority interest.
The Copper World project includes the large East deposit (formerly known as the Rosemont deposit) together with new deposits that were defined after the completion of an expanded drill program following a successful initial drill program in 2020. A new resource model was completed for the preliminary economic assessment (“PEA”) of Copper World in 2022, which contemplated a two-phased mine plan with Phase I as a standalone operation requiring state and local permits only and Phase II expanding onto federal lands requiring federal permits. In September 2023, Hudbay released its enhanced PFS for Copper World reflecting the results of further technical work on Phase I of the project. Hudbay received all three key state permits required for Copper World development and operation including the Mine Land Reclamation Plan initially approved in October 2021 and subsequently amended and approved in May 2023, the Aquifer Protection Permit received in August 2024, and the Air Quality Permit received in January 2025.
Copper World has an initial mine life of 20 years and is one of the highest-grade open pit copper projects in the Americas with proven and probable mineral reserves of 385 million tonnes at 0.54% copper. Based on the PFS, Phase I contemplates average annual copper production of 85,000 tonnes, at average cash costsii and sustaining cash costsii of $1.47 and $1.81 per pound of copper, respectively. At a copper price of $3.75 per pound and based on other assumptions in the PFS, the after-tax net present value (“NPV”) of Phase I using an 8% discount rate is $1.1 billion and the internal rate of return (“IRR”) is 19%. The valuation metrics are leveraged to higher copper prices and at a price of $4.25 per pound (without adjusting any other PFS assumptions), the after-tax NPV (8%) of Phase I increases to $1.7 billion, and the IRR increases to 25.5%.
There remains approximately 60% of the total copper contained in measured and indicated mineral resources (exclusive of mineral reserves), providing significant potential for Phase II expansion and mine life extension. In addition, the inferred mineral resource estimates are at a comparable copper grade and provide significant upside potential.
The Company took the following steps in 2025 and early 2026 to de-risk Copper World ahead of a sanction decision expected later this year:
- Realized Accretive JV Transaction – In January 2026, Hudbay announced the closing of the highly accretive $600 million JV Transaction, which represents a significant de-risking milestone in advancing Copper World and further validates the premium long-term value of this world-class asset. The $420 million of proceeds received at closing from Mitsubishi will be used to directly fund the remaining definitive feasibility study ("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. The JV Transaction increases the project IRR to Hudbay to approximately 90% based on PFS estimates.
- Secured Premier Strategic Joint Venture Partner – Mitsubishi is one of the largest Japanese trading houses with a global mining presence and a significant U.S.-based business. Mitsubishi is the 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. This partnership validates the attractive long-term value of Copper World as a world-class copper asset and endorses the strong technical capabilities of Hudbay. It also represents the beginning of a long-term strategic partnership, and the parties are identifying other opportunities for collaboration to advance their respective copper growth strategies.