TSX, NYSE – HBM 2025 No. 14 Hudbay Delivers Strong First Quarter 2025 Results Driven by Gold Production and Record Cost Performance
TSX, NYSE – HBM
2025 No. 14
Hudbay Delivers Strong First Quarter 2025 Results Driven by Gold Production and
Record Cost Performance
Toronto, Ontario, May 12, 2025 – Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) today
released its first quarter 2025 financial results. All amounts are in U.S. dollars, unless otherwise noted.
"Our strong results in the first quarter reflect stable copper production and complementary gold production from our
enhanced operating platform, which continued to deliver significant free cash flows and industry-leading margins,” said
Peter Kukielski, President and Chief Executive Officer. “We are well-positioned to deliver our full year 2025 consolidated
production and cost guidance with the operations delivering in line copper production, better-than-expected gold
production and effective cost control in the first quarter . We continue to benefit from steady mill throughput in Peru,
higher grades and mill throughput in Manitoba and ongoing optimization efforts in British Columbia. This resulted in
record adjusted EBITDA and record low cash cost performance in the quarter. We made significant progress in
advancing our growth strategy as we consolidated ownership at Copper Mountain to increase our exposure to a high-
quality asset in a tier-1 jurisdiction. We are also now fully permitted at Copper World to increase our long-term copper
production by more than 50%. We will continue to reinvest in our attractive portfolio of high-return brownfield and
greenfield growth opportunities to further enhance our copper and gold exposure and unlock significant value for all our
stakeholders.”
Achieved Record Adjusted EBITDA Driven by Strong Gold Production, Stable Copper Production and Industry-
leading Margins; 2025 Production and Cost Guidance Reaffirmed
• Achieved revenue of $594.9 million and record quarterly adjusted EBITDAi of $287.2 million in the first quarter
of 2025.
• Strong financial results were driven by record low consolidated cash cost performance as all three business
units expanded operating cost margins and executed on planned strategies.
• Consolidated copper production of 30,958 tonnes in the first quarter was in line with quarterly cadence
expectations. Consolidated gold production of 73,784 ounces was better than quarterly cadence expectations
driven by outperformance in Manitoba.
• Industry-leading cost performance continues with record low consolidated cash costi and sustaining cash costi
per pound of copper produced, net of by-product credits, of $(0.45) and $0.72, respectively, in the quarter.
• 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. Reaffirmed all 2025 cost guidance, including consolidated cash cost i
guidance of $0.80 to $1.00 per pound of copper and sustaining cash cost i guidance of $2.25 to $2.65 per
pound of copper.
• Peru operations continued to benefit from strong and consistent mill throughput, achieving an average of
approximately 90,200 tonnes per day in the first quarter. Copper production of 20,293 tonnes and gold
production of 7,869 ounces was in line with quarterly cadence expectations. Peru cash cost i per pound of
copper produced, net of by -product credits, of $1.11 was better than expected as the Peru operations
demonstrated strong cost control and benefited from higher by-product prices.
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• Manitoba operations produced 60,354 ounces of gold in the first quarter, exceeding quarterly cadence
expectations as a result of better -than-expected gold grades and recoveries. Manitoba cash cost i per ounce
of gold produced, net of by-product credits, was $376 during the quarter, a significant decrease compared to
prior quarters and continuing to achieve industry-leading cost performance.
• British Columbia operations produced 7,196 tonnes of copper at a cash cost i per pound of copper produced,
net of by-product credits, of $2.44 in the first quarter, in line with quarterly cadence expectations.
• First quarter net earnings attributable to owners and earnings per share attributable to owners were $100.4
million and $0.25, respectively, a significant increase compared to the first and fourth quarter of 2024, driven
by high gross margins with strong revenue and unit cost control . After adjusting for various non -cash items,
first quarter adjusted earningsi per share attributable to owners was $0.24.
• Cash and cash equivalents and short -term investments were $582.6 million and total liquidity was $1,008.5
million at the end of the first quarter of 2025.
• Net debt to adjusted EBITDA ratioi was 0.6x in the first quarter of 2025, in line with the fourth quarter of 2024
and significantly improved from 1.3x in the first quarter of 2024 because of successful deleveraging efforts
throughout 2024.
Meaningful Gold Exposure and Steady Copper Performance Driving Continued Free Cash Flow Generation
• Hudbay's unique copper and gold diversification in Peru and Canada provides exposure to higher copper and
gold prices and attractive free cash flowvii generation.
• While the majority of revenues continue to be derived from copper production, gold represented a higher
portion of total revenues at 38% in the first quarter of 2025 compared to 35% in the fourth quarter of 2024,
which was driven by high gold production in Manitoba and exposure to higher gold prices.
• Delivered the seventh consecutive quarter of meaningful free cash flow vii generation as a result of continued
strong copper and gold production and effective cost control across all business units.
• Achieved record adjusted EBITDAi of $287.2 million in the first quarter of 2025, representing a 12% increase
from the fourth quarter of 2024 and a 34% increase from the first quarter 2024.
• Over the last twelve months, generated more than $350 million in free cash flow vii and $895.7 million in
adjusted EBITDAi.
• Significant exposure to higher copper and gold prices with a $100 million increase to operating cash flow for
every 10% increase in annual copper price and a $56 million increase in operating cash flow for every 10%
increase in annual gold price, using the mid-point of 2025 guidance rangesii.
Reinvesting in High-return Growth Initiatives to Further Enhance Copper and Gold Exposure
• Advancing high-return brownfield mill initiatives and greenfield copper projects to drive near-term and long-
term production growth with $25.5 million in growth capital expenditures during the first quarter of 2025.
• Consolidated copper production is expected to average 144,000 iii tonnes per year over the next three years,
maintaining stable production levels from 2024. Consolidated copper production of 161,000 iii tonnes is
expected in 2027, representing a 17% increase from 2024 and reflects the benefits from the completion of the
optimization efforts at Copper Mountain.
• Strong complementary gold exposure with consolidated gold production expected to average 253,000 iii
ounces per year over the next three years, reflecting continued strong production in Manitoba.
• Following quarter -end, completed transaction with MMC to c onsolidate 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 a 200% increase in attributable copper
production from Copper Mountain in 2027 compared to 2024.
• Advancing feasibility studies and minority joint venture partner process for Copper World. Copper World is the
highest grade and lowest capital intensity fully permitted copper project in the Americas.
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• Optimization efforts at Copper Mountain are focused on executing the planned accelerated stripping program
and mill throughput improvement projects, including the planned conversion of the third ball mill to a second
SAG mill in the second half of 2025.
• Drill permitting for highly prospective Maria Reyna and Caballito properties near Constancia continues to
advance through the multi-step regulatory process.
• Achieved significant progress with the development of the drifts towards the 1901 deposit in Snow Lake where
a recent exploration drill hole intersected zinc-rich massive sulphides 20 metres earlier than anticipated, and
planned first ore remains on track for the second quarter of 2025. Exploration and definition drilling planned
over the next two years.
• 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.
• Signed exploration agreement with the Mosakahiken Cree Nation related to the Talbot copper -zinc-gold
deposit near Snow Lake, representing the second First Nations exploration agreement that Hudbay has
entered into this year as the Company continues to build positive relationships and advance shared
opportunities with local First Nations communities.
• Enhancing stakeholder engagement and advancing additional metallurgical studies at the Mason copper
project in Nevada.
• 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.
Summary of First Quarter Results
Consolidated copper production of 30,958 tonnes in the first quarter of 2025 was in line with quarterly production
cadence expectations, while consolidated gold production of 73,784 ounces was better than quarterly production
cadence expectations. Consolidated copper and gold production was lower than the fourth quarter of 2024 due to lower
planned grades in Peru as Hudbay is completing the final stripping phase in the high-grade Pampacancha pit, partially
offset by higher gold production in Manitoba from better -than-expected gold grades. Consolidated silver production of
919,775 ounces and zinc production of 6,265 tonnes in the first quarter of 2025 were lower than the fourth quarter of
2024 primarily due to lower grades in Peru as the Company completed planned stripping activities.
Cash generated from operating activities of $124.8 million decreased compared to the fourth quarter of 2024 as a result
of higher cash taxes paid which are a function of higher profits in earlier quarters in Peru and Manitoba. Operating cash
flow before change in non-cash working capital was $163.5 million during the first quarter of 2025, reflecting a decrease
of $68 million compared to the fourth quarter of 2024. The decrease was primarily the result of lower gold and copper
sales volumes in Peru as expected.
First quarter adjusted EBITDAi was $287.2 million, a 12% increase compared to $257.3 million in the fourth quarter of
2024 as exposure to higher copper and gold prices in the quarter offset the lower sales volume.
Net earnings attributable to owners in the first quarter of 2025 was $100.4 million, or $0.25 per share, compared to
$21.2 million, or $0.05 per share, in the fourth quarter of 2024. The significant increase in earnings is the result of high
gross margins from strong revenue growth on the back of higher realized copper and gold prices and strong unit cost
control. In addition to higher mining and income tax expense experienced in the first quarter of 2025, the quarter was
also impacted by various non-cash charges for revaluation loss of closed sites reclamation provisions, mark-to-market
revaluation gain on various instruments, and foreign exchange gain, among other items.
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Adjusted net earnings attributable to owners i and adjusted net earnings per share attributable to owners i in the first
quarter of 2025 were $93.8 million and $0.24 per share, respectively, after adjusting for various non-cash items on a
pre-tax basis such as a non -cash loss of $12.8 million related to quarterly revaluation of Hudbay's closed site
environmental reclamation provision, a $10.5 million variable consideration adjustment gain associated with the stream
revenue and accretion, a $3.1 million mark -to-market revaluation gain on various instruments such as unrealized
strategic copper hedges, investments and share-based compensation, a non-cash $3.1 million foreign exchange gain,
and a $1.9 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 $70.3 million and $0.18 per share
in the fourth quarter of 2024. The sharp increase in adjusted net earnings attributable to owners i and adjusted net
earnings per share attributable to ownersi is for the same reasons discussed above for net earnings.
In the first quarter of 2025, consolidated cash costi per pound of copper produced, net of by-product credits, achieved
record low levels of $(0.45), compared to $0.45 in the fourth quarter of 2024. This improvement was a result of higher
by-product credits and strong operating cost performance across all business units , partially offset by expected lower
production levels in Peru during the quarter. Consolidated sustaining cash costi per pound of copper produced, net of
by-product credits, was a record low at $0.72 in the first quarter of 2025, compared to $1.37 in the fourth quarter of
2024. The improvement was driven by the same factors impacting consolidated cash cost and slightly lower sustaining
capital expenditures in the first quarter. Consolidated all-in sustaining cash costi per pound of copper produced, net of
by-product credits, was $0.97 in the first quarter of 2025, lower than $1.53 in the fourth quarter of 2024 mainly due to
the same reason outlined above.
As at March 31, 2025, total liquidity was $1,008.5 million, including $562.6 million in cash and cash equivalents, $20.0
million in short-term investments as well as undrawn availability of $425.9 million under the Company's revolving credit
facilities. Net debti at the end of the first quarter was $526.1 million and remained consistent with the fourth quarter of
2024.
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.
3 Net debt to adjusted EBITDA for the 12 month period.
Consolidated Financial Condition
(in $ millions, except net debt to adjusted EBITDA ratio) Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024
Cash and cash equivalents and short-term investments 582.6 581.8 284.4
Total long-term debt 1,108.7 1,107.5 1,278.6
Net debt1 526.1 525.7 994.2
Working capital2 598.0 511.3 200.9
Total assets 5,507.0 5,487.6 5,231.3
Equity attributable to owners of the Company 2,653.2 2,553.2 2,107.5
Net debt to adjusted EBITDA1,3 0.6 0.6 1.3
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Consolidated Financial Performance Three Months Ended
Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024
Revenue $000s 594.9 584.9 525.0
Cost of sales $000s 363.6 400.5 373.0
Earnings before tax $000s 171.3 103.7 67.8
Net earnings $000s 99.2 19.3 18.5
Net earnings attributable to owners $000s 100.4 21.2 22.3
Basic and diluted attributable earnings per
share1
$/share 0.25 0.05 0.06
Adjusted earnings attributable per share1 $/share 0.24 0.18 0.17
Operating cash flow before change in non-
cash working capital
$ millions 163.5 231.5 147.5
Adjusted EBITDA1 $ millions 287.2 257.3 215.0
1 Adjusted earnings per share - attributable to owners and adjusted EBITDA 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, 2025 Dec. 31, 2024 Mar. 31, 2024
Contained metal in concentrate and doré produced1
Copper tonnes 30,958 43,262 34,749
Gold ounces 73,784 94,161 90,392
Silver ounces 919,775 1,311,658 947,917
Zinc tonnes 6,265 8,385 8,798
Molybdenum tonnes 397 195 397
Payable metal sold
Copper tonnes 31,768 37,927 33,608
Gold2 ounces 75,092 92,734 108,081
Silver2 ounces 1,006,968 1,150,518 1,068,848
Zinc tonnes 4,857 5,261 6,119
Molybdenum tonnes 448 182 415
Consolidated cash cost per pound of copper produced3
Cash cost $/lb (0.45) 0.45 0.16
Sustaining cash cost $/lb 0.72 1.37 1.00
All-in sustaining cash cost $/lb 0.97 1.53 1.29
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.
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Peru Operations Review
Peru Operations Three Months Ended
Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024
Constancia ore mined1 tonnes 8,628,279 4,186,058 2,559,547
Copper % 0.28 0.40 0.31
Gold g/tonne 0.03 0.04 0.04
Silver g/tonne 3.14 3.88 2.79
Molybdenum % 0.02 0.02 0.01
Pampacancha ore mined1 tonnes 389,189 4,037,264 2,214,354
Copper % 0.44 0.63 0.56
Gold g/tonne 0.26 0.38 0.32
Silver g/tonne 3.68 6.43 4.64
Molybdenum % 0.01 0.00 0.02
Total ore mined tonnes 9,017,468 8,223,322 4,773,901
Strip ratio4 1.02 1.22 1.95
Ore milled tonnes 8,114,024 7,999,453 8,077,962
Copper % 0.30 0.48 0.36
Gold g/tonne 0.05 0.20 0.15
Silver g/tonne 3.22 5.28 3.48
Molybdenum % 0.01 0.01 0.01
Copper recovery % 84.6 87.8 84.9
Gold recovery % 56.5 73.3 73.4
Silver recovery % 66.0 71.4 70.7
Molybdenum recovery % 35.7 37.1 43.2
Contained metal in concentrate
Copper tonnes 20,293 33,988 24,576
Gold ounces 7,869 38,079 29,144
Silver ounces 554,692 969,502 639,718
Molybdenum tonnes 397 195 397
Payable metal sold
Copper tonnes 22,890 28,775 23,754
Gold ounces 14,362 37,459 42,677
Silver ounces 714,654 824,613 753,707
Molybdenum tonnes 448 182 415
Combined unit operating cost2,3 $/tonne 11.09 15.25 10.92
Cash cost3 $/lb 1.11 1.00 0.43
Sustaining cash cost3 $/lb 1.92 1.48 1.02
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.
During the first quarter of 2025, the Peru operations produced 20,293 tonnes of copper, 7,869 ounces of gold, 554,692
ounces of silver and 397 tonnes of molybdenum, in line with mine plan quarterly cadence expectations. Production of
copper, gold and silver in the first quarter of 2025 was lower than the fourth quarter of 2024 due to planned lower grades
as a larger portion of lower grade Constancia ore was processed in the current quarter. Hudbay is on track to achieve
its 2025 production guidance for all metals in Peru.
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Copper production was in line with mine plan expectations as the final phase of planned stripping at the Pampacancha
deposit was underway during the first quarter of 2025. This resulted in planned lower head grades to the mill as
Constancia ore represented a majority of the ore feed during the first quarter of 2025. Peru operations continued to
benefit from strong and consistent mill throughput in 2025, averaging approximately 90,200 tonnes processed per day
in the first quarter of 2025, partially offsetting the planned lower head grades. The operations continued to deliver strong
cost control, resulting in lower combined unit cost compared to the fourth quarter of 2024.
Total ore mined in the first quarter of 2025 increased by 10% compared to the fourth quarter of 2024. Ore mined from
Pampacancha during the first quarter of 2025 decreased to 0.4 million tonnes, as Hudbay is performing the final
stripping phase in the Pampacancha pit prior to depletion in late 2025. Ore mined from Constancia significantly
increased during the first quarter of 2025 compared to recent quarters, in line with mine plan expectations.
Milled copper and gold grades decreased by 38 % and 75%, respectively, in the first quarter of 2025 compared to the
fourth quarter of 2024, in line with the mine plan due to planned lower ore feed from Pampacancha. The Constancia
mill achieved copper recoveries of 85% in the first quarter of 2025, lower than the fourth quarter of 2024 due to planned
lower grades. Recoveries of gold and silver during the first quarter of 2025 were 57% and 66%, respectively, remaining
in line with Hudbay's metallurgical models for the ore types that were being processed.
Combined mine, mill and G&A unit operating cost i in the first quarter of 2025 was $11.09 per tonne, 27% lower than
the fourth quarter of 2024 due to a planned semi -annual mill maintenance shutdown in the fourth quarter and lower
overall onsite costs.
Cash costi per pound of copper produced, net of by-product credits, in the first quarter of 2025 was $1.11, outperforming
quarterly cadence expectations as a result of strong operating cost performances and higher by -product prices. Cash
costi per pound of copper produced, net of by-product credits was higher than the fourth quarter of 2024 due to planned
lower copper production and gold by -product credits, partially offset by lower treatment, refining and freight charges.
Cash costi for the quarter outperformed the low -end of the 2025 guidance range, and Hudbay is well positioned to
achieve the full year 2025 cash cost guidance range in Peru.
Sustaining cash costi per pound of copper produced, net of by -product credits, was $1.92 in the first quarter of 2025,
an increase compared to the fourth quarter of 2024 primarily due to the same factors described above for the cash cost
variance.
The Company continues to evaluate opportunities to further increase mill throughput after the Peruvian Ministry of
Energy and Mines approved a regulatory change in 2024 to allow mining companies in Peru to increase throughput by
up to 10% above permitted levels. Hudbay is advancing engineering studies for the construction of a pebble crusher at
Constancia commencing in late 2025, which is expected to further increase throughput levels starting in the second
half of 2026.
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Manitoba Operations Review
Manitoba Operations Three Months Ended
Mar. 31, 2025 Dec. 31, 2024 Mar. 31, 2024
Lalor
Ore mined tonnes 384,234 422,454 407,708
Gold g/tonne 5.46 4.61 4.84
Copper % 0.95 0.95 0.84
Zinc % 2.42 2.95 2.92
Silver g/tonne 31.23 31.91 23.44
New Britannia
Ore milled tonnes 189,124 185,592 170,409
Gold g/tonne 7.37 5.99 7.03
Copper % 1.18 1.17 1.13
Zinc % 1.00 1.08 0.82
Silver g/tonne 33.35 33.97 21.60
Gold recovery1 % 90.3 90.2 88.6
Copper recovery % 90.3 91.3 96.2
Silver recovery1 % 81.6 79.6 82.0
Stall Concentrator
Ore milled tonnes 215,286 222,004 219,358
Gold g/tonne 3.86 3.36 3.07
Copper % 0.76 0.73 0.64
Zinc % 3.44 4.62 4.54
Silver g/tonne 29.53 29.90 24.46
Gold recovery % 70.1 69.6 68.0
Copper recovery % 88.3 84.4 91.7
Zinc recovery % 84.7 81.7 88.4
Silver recovery % 58.7 55.1 59.8
Total contained metal in concentrate and doré2
Gold ounces 60,354 51,438 56,831
Copper tonnes 3,469 3,347 3,149
Zinc tonnes 6,265 8,385 8,798
Silver ounces 285,603 283,223 219,823
Total payable metal sold
Gold ounces 55,765 50,239 62,003
Copper tonnes 2,725 3,321 2,921
Zinc tonnes 4,857 5,261 6,119
Silver ounces 232,255 282,158 231,841
Combined unit operating cost3,4 C$/tonne 214 233 235
Gold cash cost3 $/oz 376 607 736
Gold sustaining cash cost3 $/oz 626 908 950
1 Gold and silver recovery includes total recovery from concentrate and doré.
2 Metal reported in concentrate is prior to deductions associated with smelter terms.
3 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.
4 Reflects combined mine, mill and G&A costs per tonne of ore milled.