TSX, NYSE – HBM 2025 No. 30 Hudbay’s Third Quarter 2025 Results Demonstrate Operational Resilience
TSX, NYSE – HBM
2025 No. 30
Hudbay’s Third Quarter 2025 Results Demonstrate Operational Resilience
Toronto, Ontario, November 12, 2025 – Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM)
released its third quarter 2025 financial results today. All amounts are in U.S. dollars, unless otherwise noted.
"This was a quarter of resilience for Hudbay as we demonstrated the strength of our operating capabilities and the
benefit of our diversified operating platform at a time of mandatory wildfire evacuations in Manitoba and temporary
operational interruptions in Peru,” said Peter Kukielski, President and Chief Executive Officer. “Through our team’s
continued focus on delivery and driving operating efficiencies in the face of these challenges, we expect to achieve the
low end of our consolidated copper and gold production guidance ranges and we are further improving our consolidated
cost guidance for 2025. During the third quarter, we continued to take steps to reduce long-term debt, reinvest in high-
return growth projects and advance our strategic initiatives to build a stable and diversified operating platform with
significant copper growth upside. We are delighted to have secured a premier long-term strategic partner in Mitsubishi,
enabling us to unlock significant value in our copper growth pipeline, further solidify our financial strength and
significantly reduce our share of the remaining capital contributions for the development of Copper World. Hudbay's
unique copper and gold diversification, combined with our continued focus on cost control, enable us to maintain
industry-leading margins and deliver strong and stable cash flows.”
Demonstrated Operating Resilience in the Third Quarter
● Achieved revenue of $346.8 million and adjusted EBITDAi of $142.6 million in the third quarter of 2025.
● Achieved consolidated copper production of 24,205 tonnes and consolidated gold production of 53,581
ounces in the third quarter, demonstrating strong operational resilience with Manitoba operations suspended
for the majority of the quarter due to the wildfire evacuations and temporary operational interruptions in Peru.
● Strong cost performance continued in the third quarter with consolidated cash costi and sustaining cash costi
per pound of copper produced, net of by-product credits, of $0.42 and $2.09, respectively.
● Reaffirmed full year 2025 consolidated production guidance for copper and gold, despite the temporary
operational interruptions and production deferrals. Full -year consolidated copper and gold production is now
expected to be near the low end of the guidance ranges.
● Further improved full year 2025 consolidated cash cost i guidance range to $0.15 to $0.35 per pound, an
additional improvement from the previously updated guidance range of $0.65 to $0.85 per pound, as year-to-
date results are trending well below the low end of the cost ranges. Also improved full year 2025 consolidated
sustaining cash cost guidance range to $1.85 to $2.25 per pound copper from the original guidance range of
$2.25 to $2.65 per pound as a result of increased exposure to gold by -product credits and continued strong
operating cost control.
● Peru operations produced 18,114 tonnes of copper and 26,380 ounces of gold in the third quarter, with copper
being slightly lower than quarterly cadence expectations and gold far exceeding quarterly cadence
expectations while navigating intermittent interr uptions and a temporary mill suspension during the quarter.
Peru cash cost i per pound of copper produced, net of by -product credits, was $1.30 in the third quarter,
outperforming the low-end of the cost guidance range. Full year copper production in Peru i s expected to be
in line with 2025 annual guidance and full year gold production is expected to exceed the top end of the
guidance range.
● Manitoba operations produced 22,441 ounces of gold in the third quarter, lower than quarterly cadence
expectations as a result of temporary production interruptions from mandatory wildfire evacuations that shut
down operations for the majority of the third quarter and deferred gold production. A business interruption
insurance claim has been submitted to compensate for a portion of the wildfire-related downtime . Manitoba
cash costi per ounce of gold produced, net of by-product credits, was $379 in the third quarter. Subsequent to
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the quarter, due to additional unplanned down time in October as a result of winter storm power outages,
some gold production has been further deferred and full year gold production in Manitoba is now expected to
be slightly below the low end of the 2025 annual guidance range.
● British Columbia operations produced 5,249 tonnes of copper in the third quarter at a cash costi per pound of
copper produced, net of by-product credits, of $3.21. While the initial phase of the conversion of the third ball
mill to a second semi-autogenous grinding ("SAG") mill was completed successfully in the third quarter, there
was required maintenance at the primary SAG mill at the end of September and into early October, which is
expected to result in reduced mill throughput levels for the balance of 2025 and full year copper production in
British Columbia is now expected to be below the low end of the 2025 annual guidance range.
● Third quarter net earnings attributable to owners and earnings per share attributable to owners were $222.4
million and $0.56, respectively, reflecting a pre-tax full impairment reversal of $322.3 million on Hudbay's
carrying value of the Copper World project as a result of the announcement of a $600 million strategic
partnership with Mitsubishi Corporation ("M itsubishi") for a 30% minority interest in Copper World, which is
expected to close in late 2025 or early 2026. After adjusting for this transaction and various other non- cash
items, third quarter adjusted earningsi per share attributable to owners was $0.03.
● Financial results in the third quarter were impacted by the deferral of a 20,000 dry metric tonne copper
concentrate shipment in Peru, valued at approximately $6 0 million (high gold content), from the end of
September into early October due to ocean swells at the port.
● Cash and cash equivalents decreased by $14.4 million to $611.1 million during the third quarter and total
liquidityii was $1,036.3 million as at September 30, 2025, reflecting $13.2 million of additional senior unsecured
note repurchases during the third quarter.
Further Debt Reduction and Balance Sheet Strength
● 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 operating cash flowi.
● While the majority of revenues continue to be derived from copper production, revenue from gold production
represented more than 38% of total revenues in the third quarter of 2025.
● Generated positive free cash flow i in Peru and Manitoba in the third quarter of 2025 despite operational
interruptions, offset by negative free cash flow i in British Columbia with planned stripping activities .
Consolidated free cash flowi would have been positive if the excess copper concentrate inventory in Peru was
sold at the end of September.
● Achieved adjusted EBITDAi of $142.6 million in the third quarter of 2025, resulting in annual trailing twelve-
month adjusted EBITDAi of $932.3 million.
● Repurchased and retired an additional $13.2 million of senior unsecured notes through open market
purchases at a discount to par during the third quarter, reducing total principal debt to $1.05 billion as of
September 30, 2025. Subsequent to the quarter end, deleveraging efforts continued with an additional $20.0
million of open market purchases of the senior unsecured notes at a discount to par.
● As of November 11, 2025, approximately $328.1 million in total principal debt and gold prepayment liability
reductions have been achieved since the beginning of 2024.
● Net debti reduced to $435.9 million as at September 30, 2025 compared to $525.7 million at December 31,
2024, a decrease of $89.8 million year-to-date.
● Net debt to adjusted EBITDA ratio i was 0.5x at the end of the third quarter of 2025, a further improvement
from 0.6x at the end of fourth quarter of 2024.
Prudently Advancing Copper World Towards a Sanction Decision in 2026
● In August 2025, announced accretive $600 million Copper World joint venture transaction with Mitsubishi
Corporation (“Mitsubishi”) for a 30% minority interest (“JV Transaction”).
o 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 Implies a significant premium to consensus net asset value for Copper Worldiii.
o Increases levered project IRR to Hudbay to approximately 90% based on pre-feasibility study ("PFS")
estimatesiv.
● In August 2025, agreed on terms with Wheaton Precious Metals Corp. (“Wheaton”) to amend the existing
precious metals streaming agreement.
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o In addition to the initial $230 million stream deposit, provides an additional contingent payment of up
to $70 million on a future 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.
● Successful completion of the final key elements of Hudbay's prudent financial strategy as part of the three
prerequisites ("3-P") plan for Copper World.
o Hudbay's estimated share of the remaining equity capital contributions has been reduced to
approximately $200 million based on PFS estimates and Hudbay's first capital contribution has been
deferred to 2028 at the earliest.
● Feasibility study activities for Copper World are underway with expected completion of a definitive feasibility
study ("DFS") in mid-2026.
o Hudbay is accelerating detailed engineering, certain long lead items and other de-risking activities in
2025 and, as announced in August 2025, has advanced $20 million in growth capital expenditures
to 2025 from future years.
Reinvesting in Several Additional High-return Growth Initiatives
● Optimization efforts at Copper Mountain have continued and are focused on executing the planned
accelerated stripping program and mill throughput improvement projects. A key component, the conversion of
the third ball mill to a second SAG mill ("SAG2"), remains on schedule. Completion of the initial phase on July
10, 2025 enabled the mill to achieve several days of 50,000 tonnes per day in September, the highest level
achieved since Hudbay acquired the operations. Construction of the final phase of the SAG2 project is
expected to conclude in December 2025.
● Large exploration program in Snow Lake continues to execute the 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 new
anchor deposit to meaningfully extend mine life.
● Following the completion of the initial 1901 exploration drift some additional development ore was delivered
for processing at Stall. The focus now turns to advancing exploration platforms in both base metal and gold
mineralization and developing the haulage drift to confirm mining methods, establish critical infrastructure and
de-risk the path towards full production in late 2027.
● Drilling commenced at the Talbot copper-zinc-gold deposit near Snow Lake in July with a focus on expanding
the known mineralization and testing geophysical targets. Full assay results expected later this year.
● Continuing to advance Flin Flon tailings reprocessing opportunities through metallurgical test work and
economic evaluations to assess the possibility of producing critical minerals and precious metals in an
environmentally friendly manner.
● Continuing to enhance stakeholder engagement and advance additional metallurgical studies at the Mason
copper project in Nevada.
Summary of Third Quarter Results
Hudbay's diversified asset portfolio delivered consolidated copper production of 24,205 tonnes and consolidated gold
production of 53,581 ounces in the third quarter of 2025, despite temporary operational interruptions and production
deferrals. Consolidated copper and gold production was lower than the second quarter of 2025 primarily due to the
impact of the mandatory wildfire evacuations that persisted in northern Manitoba for a majority of the third quarter, a
temporary production interruption in Peru for nine days during the third quarter due to social unrest and unplanned mill
downtime and processing of low -grade stockpiles at Copper Mountain during the third quarter. Consolidated silver
production of 730,394 ounces and zinc production of 548 tonnes in the third quarter of 2025 were also lower than the
second quarter of 2025 for the aforementioned reasons.
Cash generated from operating activities of $ 113.5 million decreased compared to the second quarter of 2025 as a
result of the temporary operational interruptions during the third quarter, as mentioned above, and lower sales volumes
as a result of a delayed 20,000 dry metric tonne copper concentrate shipment in Peru with high grade gold content,
valued at approximately $60 million, from the end of September into early October due to ocean swells at the port. This
was partially offset by higher realized metal prices.
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Adjusted EBITDAi was $142.6 million in the third quarter of 2025, a decrease compared to $245.2 million in the second
quarter of 2025 primarily due to the temporary operational interruptions and the lower sales volumes as a result of the
delayed copper concentrate shipment in Peru, as noted above.
Adjusted net earnings attributable to owners i and adjusted net earnings per share attributable to owners i in the third
quarter of 2025 were $10.1 million and $0.03 per share, respectively, after adjusting for various non-cash items on a
pre-tax basis including a $322.3 million full impairment reversal related to Hudbay's Copper World project following the
announcement of the JV Transaction, $14.9 million of contingent consideration received from the previous sale of a
non-core project, an $8.7 million mark -to-market revaluation loss on various instruments such as investments and
share-based compensation, and a non-cash $8.8 million foreign exchange loss, among other items. This compares to
adjusted net earnings attributable to owners i and net earnings per share attributable to owners i of $75.5 million and
$0.19 per share in the second quarter of 2025. The decrease is primarily due to temporary operational interruptions in
Manitoba and Peru which resulted in lower production and delayed sales volumes impacting overall gross margins and
operating cash flow during the quarter.
Consolidated cash cost per pound of copper produced, net of by-product creditsi, was $0.42 in the third quarter of 2025,
compared to $(0.02) in the second quarter of 2025, as Hudbay continued to demonstrate industry -leading cost
performance. The increase in cash cost, net of by-product credits, was a result of lower by-product credits due to lower
production in Manitoba from the impact of the wildfires during the third quarter, partially offset by strong gold production
in Peru despite the nine-day operational interruption during the third quarter of 2025.
Consolidated sustaining cash cost per pound of copper produced, net of by -product creditsi, was $2.09 in the third
quarter of 2025, compared to $1.65 in the second quarter of 2025, increasing primarily due to the same factors
impacting consolidated cash cost noted above.
Consolidated all-in sustaining cash cost per pound of copper produced, net of by-product creditsi, was $2.78 in the third
quarter of 2025, higher than the second quarter of 2025 incorporating higher corporate G&A from the revaluation of
Hudbay's stock-based compensation due to relative higher share prices.
As at September 30, 2025, total liquidity was $1,036.3 million, including $611.1 million in cash and cash equivalents,
and undrawn availability of $425.2 million under Hudbay's revolving credit facilities. The Company's liquidity is expected
to be further enhanced upon the closing of the JV Transaction, which is expected to occur in late 2025 or early 2026.
Net debti at the end of the third quarter was $435.9 million, marking an $89.8 million improvement from the fourth
quarter of 2024 as a result of deleveraging activities which included the repurchase and retirement of senior unsecured
notes.
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 interim financial statements. Working capital as of September 30, 2025 was impacted by an increase in the current
portion of long-term debt of $511.0 million as the 2026 Notes are now maturing within one year.
Consolidated Financial Condition
(in $ millions, except net debt to adjusted EBITDA ratio) Sep. 30, 2025 Jun. 30, 2025 Dec. 31, 2024
Cash and cash equivalents and short-term investments 611.1 625.5 581.8
Total long-term debt 1,047.0 1,059.6 1,107.5
Net debt1 435.9 434.1 525.7
Working capital2 (34.7) 26.8 511.3
Total assets 5,916.8 5,628.6 5,487.6
Equity attributable to owners of the Company 3,080.5 2,863.3 2,553.2
Net debt to adjusted EBITDA1 0.5 0.4 0.6
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Consolidated Financial Performance Three Months Ended
Sep. 30, 2025 Jun. 30, 2025 Sep. 30, 2024
Revenue $000s 346.8 536.4 485.8
Cost of sales $000s 281.5 359.9 346.0
Earnings before tax $000s 330.5 153.1 79.7
Net earnings $000s 222.4 114.7 50.3
Net earnings attributable to owners $000s 222.4 117.7 49.7
Basic and diluted attributable earnings per
share1
$/share
0.56 0.30 0.13
Adjusted earnings attributable per share1 $/share 0.03 0.19 0.13
Operating cash flow before change in non-
cash working capital
$ millions
70.3 193.9 188.3
Adjusted EBITDA1 $ millions 142.6 245.2 206.0
Free cash flow1 $ millions (15.2) 87.8 88.4
1 Adjusted earnings per share - attributable to owners, adjusted EBITDA and free cash flow are non-GAAP financial performance
measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see discussion
under the “Non-GAAP Financial Performance Measures” section of this news release.
Consolidated Production and Cost Performance Three Months Ended
Sep. 30, 2025 Jun. 30, 2025 Sep. 30, 2024
Contained metal in concentrate and doré produced1
Copper tonnes 24,205 29,956 31,354
Gold ounces 53,581 56,271 89,073
Silver ounces 730,394 814,989 985,569
Zinc tonnes 548 5,130 8,069
Molybdenum tonnes 185 375 362
Payable metal sold
Copper tonnes 18,280 30,354 27,760
Gold2 ounces 38,279 62,466 73,232
Silver2 ounces 418,418 894,160 663,413
Zinc tonnes 3,452 2,871 8,607
Molybdenum tonnes 269 427 343
Consolidated cash cost per pound of copper produced3
Cash cost $/lb 0.42 (0.02) 0.18
Sustaining cash cost $/lb 2.09 1.65 1.71
All-in sustaining cash cost $/lb 2.78 2.03 1.95
1 Metal reported in concentrate is prior to deductions associated with smelter contract terms and includes other secondary products.
2 Includes total payable gold and silver in concentrate and in doré sold.
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
Sep. 30, 2025 Jun. 30, 2025 Sep. 30, 2024
Constancia ore mined1 tonnes 564,579 6,735,316 3,022,931
Copper % 0.25 0.34 0.36
Gold g/tonne 0.02 0.03 0.04
Silver g/tonne 1.92 3.26 3.20
Molybdenum % 0.01 0.02 0.02
Pampacancha ore mined1 tonnes 4,260,081 762,172 1,777,092
Copper % 0.38 0.26 0.48
Gold g/tonne 0.31 0.24 0.27
Silver g/tonne 4.87 4.59 6.23
Molybdenum % 0.01 0.01 0.01
Total ore mined tonnes 4,824,660 7,497,488 4,800,023
Strip ratio3 1.38 1.47 2.62
Ore milled tonnes 6,991,744 7,559,047 8,137,248
Copper % 0.31 0.34 0.32
Gold g/tonne 0.16 0.05 0.11
Silver g/tonne 3.94 3.58 3.70
Molybdenum % 0.01 0.01 0.01
Copper recovery % 83.2 84.5 82.6
Gold recovery % 72.1 56.0 68.1
Silver recovery % 65.2 63.5 67.0
Molybdenum recovery % 33.9 38.7 39.0
Contained metal in concentrate
Copper tonnes 18,114 21,710 21,220
Gold ounces 26,380 7,366 20,331
Silver ounces 577,446 551,979 648,209
Molybdenum tonnes 185 375 362
Payable metal sold
Copper tonnes 11,769 21,418 18,803
Gold ounces 9,798 9,721 9,795
Silver ounces 258,215 616,578 365,198
Molybdenum tonnes 269 427 343
Combined unit operating cost2,4,6 $/tonne 13.03 13.59 12.78
Cash cost4,5 $/lb 1.30 1.45 1.80
Sustaining cash cost4 $/lb 2.11 2.63 2.78
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 Strip ratio is calculated as waste mined divided by ore mined.
4 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 Fina ncial
Performance Measures” section of this news release.
5 Excludes $7.3 million or $0.19 per tonne of overhead costs incurred during temporary suspension during the three months ended
September 30, 2025.
6 Excludes approximately $7.3 million or $1.04 per tonne of overhead costs incurred during temporary suspension during the three months
ended September 30, 2025.
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The Peru operations continued to demonstrate steady operating performance despite facing temporary interruptions
as a result of social unrest in the third quarter. Country wide protests that began early in the third quarter temporarily
impacted the transportation routes leading to limitations of supplies and concentrate transportation. To manage through
these limitations, Hudbay adjusted mine sequencing to prioritize Pampacancha mining activities and blend low -grade
stockpile ore in the mill feed. The road blockades along the transportation route reopened midway through the third
quarter, allowing Hudbay to reduce site concentrate inventory levels and replenish supplies.
In late September, the social unrest escalated across Peru. Along with other mines in the southern mining corridor,
Hudbay’s Constancia mine was impacted by local protests and illegal blockades. The safety of all personnel is the
Company’s top priority, and Hudbay suspended Constancia operations on September 2 2nd as a precaution to ensure
the safety of personnel and allow time for Hudbay and the authorities to address the illegal protests. During the
temporary downtime, Hudbay’s team at Constancia performed preventative maintenance at the mill and on certain
mining equipment. Since the restart of mining activities on October 3 rd and milling activities on October 5 th, the
Constancia operations have normalized.
The Peru operations produced 18,114 tonnes of copper, 26,380 ounces of gold, 577,446 ounces of silver and 185
tonnes of molybdenum during the third quarter of 2025. Production of copper was lower than the comparative periods
primarily due to lower ore milled as a result of the temporary operational shutdown. Production of gold was higher than
the second quarter of 2025 due to higher head grades from a larger portion of the Pampacancha ore feed. Production
of silver was higher than the second quarter of 2025 as a result of higher grades. Production of molybdenum was lower
than the second quarter of 2025 due to lower ore milled and lower recoveries.
Total ore mined in Peru in the third quarter of 2025 was lower than the second quarter of 2025 as a result of the
temporary operational shutdown described above. However, Pampacancha ore mined significantly increased in the
third quarter compared to the se cond quarter, reflecting the completion of a major stripping program in the second
quarter.
Mill throughput levels averaged approximately 76,000 tonnes per day in the third quarter of 2025, lower than the second
quarter of 2025 due to the lower amount of ore mined and the temporary operational shutdown. Milled copper grades
decreased by 9% compared to the second quarter 2025, primarily due to lower grades from ore feed from stockpiles,
partially offset by higher grades from Pampacancha. Milled gold grades significantly increased in the third quarter of
2025 compared to the comparative periods due to a higher portion of ore feed from Pampacancha where the gold
grades are meaningfully higher than in the other ore sources. The mill achieved copper recoveries of 83% in the third
quarter of 2025, lower than the second quarter of 2025 due to the nature of the feed from the stockpile. Recoveries of
gold and silver during the third quarter of 2025 were in line with Hudbay's metallurgical models for the ore that was
being processed.
Combined mine, mill and G&A unit operating costi in the third quarter of 2025 was $13.03 per tonne, 4% lower than the
second quarter of 2025 as lower milling and G&A costs more than offset the impacts of higher mining costs and lower
mill throughput associated with the temporary shutdown.
Cash cost per pound of copper produced, net of by-product creditsi, in the third quarter of 2025 was $1.30. Cash costs
decreased by 10% compared to the second quarter of 2025 due to higher gold by -product credits and lower plant
maintenance cost as a planned maintenance program was completed in the second quarter of 2025.
Sustaining cash cost per pound of copper produced, net of by -product creditsi, was $2.11 in the third quarter of 2025,
a decrease of 20% compared to the second quarter of 2025 for the same reasons that impacted cash costs as well as
from lower tailings management facility capital expenditures, timing on plant projects, and lower cash payments
pertaining to community agreements.
With the regional social unrest impacting transportation routes during the quarter and ocean swells impacting port
shipments in late September, a 20,000 dry metric tonne copper concentrate shipment, valued at approximately $ 60
million as a result of the high gold content, was deferred from late September to early October, thereby reducing sales
volumes in the third quarter of 2025. This shipment was subsequently sold in October and total concentrate inventory
levels have since normalized.
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Post-quarter end, production in Peru in the month of October totaled approximately 9,200 tonnes of copper and 16,600
ounces of gold, reflecting optimal mill ore feed with strong ore contribution from Pampacancha and lower stockpiled
ore being processed. Despite the impact from the temporary operational shutdown due to social unrest, Hudbay is on
track to achieve its 2025 production guidance for all metals in Peru with gold production expected to exceed the top
end of the 2025 guidance range. On a related note, with cash costs continuing to outperform the low end of the cash
cost guidance range, Hudbay is reaffirming its full year 2025 cash cost guidance range in Peru.