Hudbay Completes Transaction to Consolidate 100% Ownership in the Copper Mountain Mine
Hudbay has successfully completed its acquisition of Mitsubishi Materials Corporation's (MMC) 25% stake in Copper Mountain Mine, securing 100% ownership of the operation. The transaction involves an initial payment of US$4.5 million, with additional deferred and contingent payments to follow.
This strategic move strengthens Hudbay's position as the second-largest copper producer in Canada and reinforces its status as a North American copper champion. The company plans to review its Canadian corporate structure to generate tax synergies through the sharing of tax pools between various Canadian entities.
Despite the ownership change, Hudbay will maintain its relationship with MMC through existing offtake and secondee partnerships at the Copper Mountain mine. This consolidation aligns with Hudbay's strategy of increasing copper production in tier-1 mining jurisdictions.
Hudbay ha completato con successo l'acquisizione della quota del 25% di Mitsubishi Materials Corporation (MMC) nella Copper Mountain Mine, ottenendo così la proprietà totale dell'operazione. L'accordo prevede un pagamento iniziale di 4,5 milioni di dollari USA, seguito da ulteriori pagamenti differiti e condizionali.
Questa mossa strategica rafforza la posizione di Hudbay come secondo produttore di rame più grande del Canada e consolida il suo ruolo di protagonista del rame in Nord America. L'azienda intende rivedere la propria struttura societaria canadese per generare sinergie fiscali tramite la condivisione dei crediti d'imposta tra le varie entità canadesi.
Nonostante il cambiamento nella proprietà, Hudbay manterrà la collaborazione con MMC attraverso gli accordi di offtake e i partenariati di secondee presso la miniera Copper Mountain. Questa consolidazione è in linea con la strategia di Hudbay di aumentare la produzione di rame in giurisdizioni minerarie di primo livello.
Hudbay ha completado con éxito la adquisición del 25% de Mitsubishi Materials Corporation (MMC) en la Copper Mountain Mine, asegurando así la propiedad total de la operación. La transacción incluye un pago inicial de 4,5 millones de dólares estadounidenses, seguido de pagos diferidos y contingentes adicionales.
Este movimiento estratégico fortalece la posición de Hudbay como el segundo mayor productor de cobre en Canadá y refuerza su estatus como un referente del cobre en América del Norte. La empresa planea revisar su estructura corporativa canadiense para generar sinergias fiscales mediante el intercambio de reservas fiscales entre distintas entidades canadienses.
A pesar del cambio de propiedad, Hudbay mantendrá su relación con MMC a través de acuerdos existentes de offtake y asociaciones de secondees en la mina Copper Mountain. Esta consolidación está alineada con la estrategia de Hudbay de aumentar la producción de cobre en jurisdicciones mineras de primer nivel.
Hudbay는 Mitsubishi Materials Corporation(MMC)의 Copper Mountain Mine 지분 25%를 성공적으로 인수하여 운영에 대한 100% 소유권을 확보했습니다. 거래는 450만 달러의 초기 지급과 추가로 연기 및 조건부 지급이 포함됩니다.
이번 전략적 조치는 Hudbay가 캐나다에서 두 번째로 큰 구리 생산업체로서의 입지를 강화하고 북미 구리 시장에서의 위상을 공고히 합니다. 회사는 캐나다 내 여러 법인 간 세액공유를 통해 세금 시너지를 창출하기 위해 캐나다 법인 구조를 검토할 계획입니다.
소유권 변경에도 불구하고 Hudbay는 Copper Mountain 광산에서 기존 MMC와의 오프테이크 및 파견 직원 파트너십을 유지할 예정입니다. 이번 통합은 1급 광산 관할구역에서 구리 생산을 확대하려는 Hudbay의 전략과 일치합니다.
Hudbay a finalisé avec succès l'acquisition de la participation de 25 % de Mitsubishi Materials Corporation (MMC) dans la Copper Mountain Mine, assurant ainsi la propriété totale de l'exploitation. La transaction comprend un paiement initial de 4,5 millions de dollars US, suivi de paiements différés et conditionnels supplémentaires.
Cette démarche stratégique renforce la position de Hudbay en tant que deuxième plus grand producteur de cuivre au Canada et consolide son statut de leader du cuivre en Amérique du Nord. La société prévoit de revoir sa structure corporative canadienne afin de générer des synergies fiscales grâce au partage des crédits d'impôt entre différentes entités canadiennes.
Malgré ce changement de propriété, Hudbay maintiendra sa relation avec MMC via les partenariats d'offtake et de détachement existants à la mine Copper Mountain. Cette consolidation s'inscrit dans la stratégie de Hudbay visant à accroître la production de cuivre dans des juridictions minières de premier ordre.
Hudbay hat den Erwerb des 25%-Anteils von Mitsubishi Materials Corporation (MMC) an der Copper Mountain Mine erfolgreich abgeschlossen und somit 100% Eigentümer des Betriebs geworden. Die Transaktion umfasst eine anfängliche Zahlung von 4,5 Millionen US-Dollar, gefolgt von weiteren aufgeschobenen und bedingten Zahlungen.
Dieser strategische Schritt stärkt Hudbays Position als zweitgrößter Kupferproduzent in Kanada und festigt seinen Status als nordamerikanischer Kupfer-Champion. Das Unternehmen plant, seine kanadische Unternehmensstruktur zu überprüfen, um Steuersynergien durch die gemeinsame Nutzung von Steuerpools zwischen verschiedenen kanadischen Einheiten zu erzielen.
Trotz des Eigentümerwechsels wird Hudbay die Zusammenarbeit mit MMC durch bestehende Abnahme- und Entsendepartnerschaften in der Copper Mountain Mine fortsetzen. Diese Konsolidierung entspricht Hudbays Strategie, die Kupferproduktion in erstklassigen Bergbauregionen zu steigern.
- Acquired remaining 25% stake in Copper Mountain Mine, gaining full ownership and control
- Strengthens position as second largest copper producer in Canada
- Potential tax synergies through sharing of tax pools between Canadian entities
- Maintains valuable offtake partnership with Mitsubishi Materials Corporation
- Increases copper production in tier-1 mining jurisdiction
- Additional cash outflow of $4.5M with more deferred payments pending
- Exposure to commodity price, currency, and energy price risks
- Regulatory and stakeholder risks associated with New Ingerbelle expansion
- Increased operational responsibility and risk exposure with 100% ownership
Insights
Hudbay's full ownership of Copper Mountain strengthens its position as a major Canadian copper producer with enhanced operational control.
Hudbay's acquisition of Mitsubishi Materials Corporation's
This transaction solidifies Hudbay's standing as Canada's second-largest copper producer and advances its strategic positioning as a "North American copper champion." The full ownership model eliminates joint venture complexities while maintaining valuable commercial relationships with MMC through offtake and secondee partnerships.
The timing is particularly strategic as copper demand continues to grow globally, with tier-1 mining jurisdictions like Canada offering significant advantages in terms of regulatory stability and operational certainty. By consolidating ownership in established producing assets rather than developing greenfield projects, Hudbay gains immediate additional attributable production without the substantial capital expenditures and extended timelines typically associated with new mine development.
Hudbay's acquisition offers immediate production increase with minimal upfront cost and potential tax efficiency improvements.
The completion of Hudbay's acquisition of MMC's
The tax synergy initiative Hudbay has launched could create significant value. By reviewing its Canadian corporate structure to optimize the sharing of tax pools between entities, the company may realize material tax efficiencies that directly improve cash flow without operational changes. This represents a financial optimization opportunity created specifically by the consolidation of ownership.
The transaction immediately increases Hudbay's attributable copper production without development costs or timeline risks associated with new projects. The deal structure also preserves Hudbay's relationship with MMC through continued offtake arrangements, maintaining commercial benefits while simplifying the ownership structure – effectively providing the best of both scenarios from a financial perspective.
TORONTO, April 30, 2025 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) is pleased to announce the completion of the previously announced acquisition of Mitsubishi Materials Corporation’s (“MMC”)
The consolidation of the Copper Mountain mine further supports Hudbay’s strategy of increasing its copper production in tier-1 mining jurisdictions. The additional attributable production from the Copper Mountain mine reinforces Hudbay’s position as the second largest copper producer in Canadai and further strengthens its position as a North American copper champion.
With the closing of the Transaction, Hudbay has initiated a review of its Canadian corporate structure which is anticipated to generate tax synergies through the sharing of tax pools between its various Canadian entities.
Hudbay values its longstanding relationship with MMC and looks forward to continued collaboration with MMC at the Copper Mountain mine through its offtake and secondee partnerships.
Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, expectations regarding the potential tax synergies associated with the Transaction. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by the Company at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information.
The material factors or assumptions that Hudbay identified and were applied by the Company in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to, realizing the tax related benefits of the Transaction.
The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), risks associated with Hudbay’s stabilization and optimization initiatives at Copper Mountain and regulatory, stakeholder and landholding risks associated with the New Ingerbelle expansion, as well as the risks discussed under the heading “Risk Factors” in Hudbay’s most recent annual information form, a copy of which has been filed under Hudbay’s profile on SEDAR+ at www.sedarplus.ca and the Company’s Form 40-F, a copy of which has been filed under Hudbay’s profile on EDGAR at www.sec.gov.
Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, you should not place undue reliance on forward-looking information. Hudbay does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a copper-focused critical minerals company with three long-life operations and a world-class pipeline of copper growth projects in tier-one mining jurisdictions of Canada, Peru and the United States.
Hudbay’s operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Copper is the primary metal produced by the Company, which is complemented by meaningful gold production and by-product zinc, silver and molybdenum. Hudbay’s growth pipeline includes the Copper World project in Arizona (United States), the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru) and several expansion and exploration opportunities near its existing operations.
The value Hudbay creates and the impact it has is embodied in its purpose statement: “We care about our people, our communities and our planet. Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures for communities.” Hudbay’s mission is to create sustainable value and strong returns by leveraging its core strengths in community relations, focused exploration, mine development and efficient operations.
For further information, please contact:
Candace Brûlé
Vice President, Investor Relations, Financial Analysis and External Communications
(416) 814-4387
investor.relations@hudbay.com
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i Sourced from S&P Global. Attributable copper production from Canada in 2027.
FAQ
How much did Hudbay (HBM) pay for the Copper Mountain Mine acquisition in April 2025?
What percentage of Copper Mountain Mine does Hudbay own after the April 2025 transaction?
How will the Copper Mountain Mine acquisition affect Hudbay's market position in Canada?
What are the tax benefits of Hudbay's Copper Mountain Mine purchase in 2025?
Will Mitsubishi Materials continue any involvement with Copper Mountain Mine after selling its stake?
