TSX, NYSE – HBM 2025 No. 23 Hudbay Delivers Strong Second Quarter 2025 Results
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.
o Steady production continued into the second quarter with consolidated copper production of 29,956
tonnes and consolidated gold production of 56,271 ounces.
o 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, a s 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 cost i 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,
TSX, NYSE – HBM
2025 No. 23
2
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 cost i 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 earnings i 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 represent ed 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 $1.0 7 billion as of June 30,
2025.
• Approximately $ 295 million in total debt repayments and gold prepayment liability reductions ha ve 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 ratio i 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”).
o Implies a significant premium to consensus net asset value for Copper Worldii.
o Mitsubishi’s $600 million initial investment will consist of $420 million at closing and $180 million
within 18 months of closing.
o Mitsubishi will also fund its pro-rata 30% share of future equity capital contributions.
TSX, NYSE – HBM
2025 No. 23
3
o 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.
o 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.
o 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 business es in North America, which encompass
trading activity with a substantial volume of copper, precious metals, and aluminum in the U.S.
market.
o 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.
o 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.
o Ongoing payments for gold and silver amended from fixed pricing to 15% of spot prices to provide
upside exposure to higher precious metals prices.
o 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.
o 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.
o 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.
o Feasibility study for Copper World is underway with expected completion of a definitive feasibility
study (“DFS”) by mid-2026.
o 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 near -
term 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.
TSX, NYSE – HBM
2025 No. 23
4
• 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 d ue 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 EBITDA i
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 exp enses, 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
TSX, NYSE – HBM
2025 No. 23
5
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 owners i of $93.8 million and $0.24 per share in the first quarter of
2025.
In the second quarter of 2025, consolidated cash cost i 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 cost i per pound of copper produced, net of by -
product 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 cost i 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 reason s 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 debt i 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.
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 long-
term 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 Condition
(in $ millions, except net debt to adjusted EBITDA ratio) Jun. 30, 2025 Mar. 31, 2025 Dec. 31, 2024
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
TSX, NYSE – HBM
2025 No. 23
6
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
share1
$/share 0.30 0.25 (0.04)
Adjusted earnings attributable per share1 $/share 0.19 0.24 0.00
Operating cash flow before change in non-
cash working capital
$ millions 193.9 163.5 123.7
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.
TSX, NYSE – HBM
2025 No. 23
7
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.
TSX, NYSE – HBM
2025 No. 23
8
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 t he 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 cost i 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 cost i 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.