Hudbay Delivers Strong First Quarter 2025 Results Driven by Gold Production and Record Cost Performance
- Record quarterly adjusted EBITDA of $287.2 million, up 12% from Q4 2024
- Record low consolidated cash cost of $(0.45) per pound of copper
- Strong net earnings of $100.4 million ($0.25 per share)
- Robust liquidity position of $1,008.5 billion with $582.6 million in cash
- Low net debt to adjusted EBITDA ratio of 0.6x
- Generated over $350 million in free cash flow over last twelve months
- Consolidated 100% ownership of Copper Mountain mine
- Expected 17% copper production increase by 2027
- Lower copper and gold production compared to Q4 2024
- Operating cash flow decreased due to higher cash taxes paid
- Operating cash flow before changes in working capital decreased by $68 million from Q4 2024
Insights
Hudbay delivered record Q1 results with strong margins, record-low costs, and solid production while advancing growth projects.
Hudbay's Q1 2025 results demonstrate exceptional operational and financial performance, marking their seventh consecutive quarter of meaningful free cash flow generation. The company achieved record quarterly adjusted EBITDA of $287.2 million, up 12% quarter-over-quarter and 34% year-over-year, driven by strong production figures and industry-leading cost control.
The financial metrics are particularly impressive. Revenue reached $594.9 million, while net earnings attributable to owners jumped to $100.4 million ($0.25/share) compared to $21.2 million ($0.05/share) in Q4 2024. This significant earnings improvement stems from higher realized metal prices and exceptional cost discipline.
On the production front, consolidated copper output of 30,958 tonnes aligned with quarterly expectations while gold production of 73,784 ounces exceeded targets, driven by Manitoba's operations. Most importantly, Hudbay achieved record-low consolidated cash costs of -$0.45 per pound of copper (net of by-product credits), representing a substantial improvement from $0.45 in Q4 2024. This negative cash cost effectively means their gold by-product credits more than cover their copper production costs, creating exceptional margins.
The company maintains a strong balance sheet with $582.6 million in cash and short-term investments, total liquidity of $1,008.5 million, and a conservative net debt to adjusted EBITDA ratio of 0.6x. This financial position allows Hudbay to fund its growth initiatives while maintaining financial flexibility.
Looking ahead, management has reaffirmed their 2025 production guidance of 117,000-149,000 tonnes of copper and 247,500-308,000 ounces of gold. Strategic growth initiatives, including the consolidation of 100% ownership of the Copper Mountain mine and advancement of the Copper World project, position the company for significant copper production growth, with a projected 17% increase to 161,000 tonnes by 2027.
The company's diversified portfolio across Peru, Manitoba, and British Columbia provides balanced exposure to both copper and gold price movements, with gold now representing 38% of total revenues. This commodity diversification serves as a natural hedge in volatile metal markets.
TORONTO, May 12, 2025 (GLOBE NEWSWIRE) -- 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
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 costi guidance of
$0.80 t o$1.00 per pound of copper and sustaining cash costi guidance of$2.25 t o$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 costi 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. - 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 costi 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 costi 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 to35% 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 flowvii 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 a12% increase from the fourth quarter of 2024 and a34% increase from the first quarter 2024. - Over the last twelve months, generated more than
$350 million in free cash flowvii 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 every10% increase in annual copper price and a$56 million increase in operating cash flow for every10% 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 144,000iii tonnes per year over the next three years, maintaining stable production levels from 2024. Consolidated copper production of 161,000iii 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 253,000iii ounces per year over the next three years, reflecting continued strong production in Manitoba.
- Following quarter-end, completed transaction with MMC to consolidate
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 a200% 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.
- 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
First quarter adjusted EBITDAi was
Net earnings attributable to owners in the first quarter of 2025 was
Adjusted net earnings attributable to ownersi and adjusted net earnings per share attributable to ownersi in the first quarter of 2025 were
In the first quarter of 2025, consolidated cash costi per pound of copper produced, net of by-product credits, achieved record low levels of
As at March 31, 2025, total liquidity was
| 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 |
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 Performance | Three Months Ended | |||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | ||
| Revenue | 594.9 | 584.9 | 525.0 | |
| Cost of sales | 363.6 | 400.5 | 373.0 | |
| Earnings before tax | 171.3 | 103.7 | 67.8 | |
| Net earnings | 99.2 | 19.3 | 18.5 | |
| Net earnings attributable to owners | 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.
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.
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
Milled copper and gold grades decreased by
Combined mine, mill and G&A unit operating costi in the first quarter of 2025 was
Cash costi per pound of copper produced, net of by-product credits, in the first quarter of 2025 was
Sustaining cash costi per pound of copper produced, net of by-product credits, was
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
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.
The Manitoba operations achieved impressive metal production and cost performance in the first quarter of 2025, significantly exceeding budgeted targets. The operations produced 60,354 ounces of gold, 3,469 tonnes of copper, 6,265 tonnes of zinc and 285,603 ounces of silver during the first quarter of 2025. Compared to the fourth quarter of 2024, production of gold meaningfully increased by
The Lalor mine achieved strong production results in the first quarter, averaging 4,300 tonnes per day, demonstrating resilience despite one-off ore handling challenges in March. The mine maintained focus on ore quality, implementing stope modifications and improving mucking productivity rates. A significant focus is on capital development, aimed at securing high-grade copper-gold mineralization from Zone 27 and preparing for the next copper-gold mining front in Zone 17. The first quarter of 2025 saw significant improvements in ore quality, aligned with improvements in mining techniques, most notably in longhole muck fragmentation, and anticipated higher grade precious metal sequences.
Total ore mined in Manitoba in the first quarter of 2025 was
The New Britannia mill continued its exceptional performance from recent quarters, achieving throughput of approximately 2,100 tonnes per day in the first quarter of 2025, slightly higher than the fourth quarter of 2024. New elongated cyclones were installed at New Britannia during the first quarter, mirroring successful upgrades at the Stall mill, and supporting Hudbay's strategy of low-capital projects to boost throughput and maintain gold recoveries. Gold recovery in the first quarter of 2025 was
At the Stall mill, a slight quarter-over-quarter reduction in throughput occurred as more ore was diverted to New Britannia in the first quarter. The Stall mill achieved gold recoveries of
The Manitoba operations continued to drive operating efficiencies, resulting in improved cost performance on both a unit operating basis and on a cash cost basis. Combined mine, mill and G&A unit operating costsi in the first quarter of 2025 were C
Cash costi per ounce of gold produced, net of by-product credits, in the first quarter of 2025 was
Sustaining cash costi per ounce of gold produced, net of by-product credits, in the first quarter of 2025 was
The exploration and haulage drifts at 1901 maintained solid development progress towards the deposit in the first quarter of 2025. A recent drill hole from the exploration drift intersected zinc-rich massive sulphides 20 metres earlier than anticipated, confirming planned first ore in the second quarter of 2025. The next two years will focus on exploration, definition drilling, orebody access, and establishing critical infrastructure for full production in 2027.
British Columbia Operations Review
| British Columbia Operations1 | Three Months Ended | |||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | ||||||
| Ore mined2 | tonnes | 2,648,094 | 2,374,044 | 3,722,496 | ||||
| Strip ratio3 | 6.73 | 7.36 | 4.10 | |||||
| Ore milled | tonnes | 2,760,986 | 2,880,927 | 3,180,149 | ||||
| Copper | % | 0.33 | 0.26 | 0.27 | ||||
| Gold | g/tonne | 0.10 | 0.09 | 0.07 | ||||
| Silver | g/tonne | 1.28 | 0.92 | 1.19 | ||||
| Copper recovery | % | 78.3 | 79.5 | 83.4 | ||||
| Gold recovery | % | 63.4 | 55.8 | 61.8 | ||||
| Silver recovery | % | 69.8 | 69.0 | 72.4 | ||||
| Total contained metal in concentrate | ||||||||
| Copper | tonnes | 7,196 | 5,927 | 7,024 | ||||
| Gold | ounces | 5,561 | 4,644 | 4,417 | ||||
| Silver | ounces | 79,480 | 58,933 | 88,376 | ||||
| Total payable metal sold | ||||||||
| Copper | tonnes | 6,153 | 5,831 | 6,933 | ||||
| Gold | ounces | 4,965 | 5,036 | 3,401 | ||||
| Silver | ounces | 60,059 | 43,747 | 83,300 | ||||
| Combined unit operating cost4,5 | C$/tonne | 25.98 | 23.22 | 23.67 | ||||
| Cash cost5 | $/lb | 2.44 | 3.00 | 3.49 | ||||
| Sustaining cash cost5 | $/lb | 4.24 | 5.76 | 4.85 | ||||
1 Copper Mountain mine results are stated at
2 Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled.
3 Strip ratio is calculated as waste mined divided by ore mined.
4 Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.
5 Combined unit operating cost, cash cost and sustaining cash cost per pound of copper 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.
Hudbay continues its focus on advancing optimization plans at the Copper Mountain mine, including opening up and optimizing the mine ore feed to the plant and implementing plant improvement initiatives that mirror Hudbay's successful processes at Constancia. These optimization initiatives have successfully increased the total tonnes moved and improved mill reliability. The British Columbia operations produced 7,196 tonnes of copper, 5,561 ounces of gold and 79,480 ounces of silver in the first quarter of 2025. Production of copper, gold and silver increased by
Mining activities are focused on continuing to execute the three-year accelerated stripping program intended to bring higher grade ore into the mine plan. In January, Hudbay completed feasibility engineering to debottleneck and increase the nominal plant capacity to its permitted capacity of 50,000 tonnes per day earlier than contemplated in the most recent technical report. This is expected to be achieved through the conversion of the third ball mill to a second SAG mill, which remains on track for completion in the second half of 2025.
Total ore mined at Copper Mountain in the first quarter of 2025 was 2.6 million tonnes, a
The mill processed 2.8 million tonnes of ore during the first quarter of 2025. Ore processed in the first quarter of 2025 was lower than the fourth quarter of 2024, limited by both planned and unplanned maintenance and elevated clay material last quarter which impacted the secondary crushing circuit. In the first quarter of 2025, a number of initiatives were advanced to address these issues and other identified constraints to improve throughput. Several mill initiatives have been implemented in 2025, including crushing circuit chute modifications, recovery improvements, reprogramming the mill expert system, installation of advanced semi-autogenous grinding control instrumentation, redesigned SAG liner package and updated operational procedures intended to remove magnetite from the pebble stream. Progressive improvements are expected to continue through 2025.
Milled copper grades during the first quarter of 2025 were
Combined mine, mill and G&A unit operating costsi in the first quarter of 2025 were C
Cash costi and sustaining cash costi per pound of copper produced, net of by-product credits, in the first quarter of 2025 were
Sustaining cash costsi were
Consolidated
On March 27, 2025, Hudbay announced an agreement with Mitsubishi Materials Corporation ("MMC") to acquire MMC’s
Continued Free Cash Flow Generation from Steady Operating Performance and Strong Copper and Gold Exposure
Hudbay has delivered seven consecutive quarters of meaningful free cash flowvii generation as a result of brownfield investments, continuous operational improvement efforts and steady cost control across the business. Over the last twelve months, the Company has generated more than
While a majority of revenues continue to be derived from copper production, gold continues to represent more than
During the first quarter of 2025, the Company invested
Annual Reserve and Resource Update and Three-Year Production Guidance
Hudbay provided its annual mineral reserve and resource update and issued new three-year production guidance on March 27, 2025.
In Peru, current mineral reserve estimates total 517 million tonnes at
In Snow Lake, the current mineral reserve estimates a total of approximately 16 million tonnes with approximately 1.7 million ounces in contained gold and an expected mine life to 2037. Snow Lake’s life-of-mine production schedule has been optimized for higher mill throughput rates at New Britannia, maximizing gold production and cash flows. In 2024, record annual gold production of 214,225 ounces was achieved in Snow Lake through a combination of higher metallurgical recoveries at the New Britannia and Stall mills, despite processing lower gold grades year-over-year, and the strategic allocation of more gold ore feed to the New Britannia mill. Annual gold production from Snow Lake is expected to average more than 193,000iii ounces over the next three years. The impressive operating performance has resulted in 2025 gold production guidance being
In British Columbia, current mineral reserve estimates at Copper Mountain total 346 million tonnes at
Consolidated copper production over the next three years is expected to average 144,000iii tonnes, representing an increase of
| 3-Year Production Outlook Contained Metal in Concentrate and Doré1 | 2025 Guidance | 2026 Guidance | 2027 Guidance | |
| Peru | ||||
| Copper | tonnes | 80,000 - 97,000 | 76,000 - 100,000 | 76,000 - 100,000 |
| Gold | ounces | 49,000 - 60,000 | 16,000 - 21,000 | 17,000 - 23,000 |
| Silver | ounces | 2,475,000 - 3,025,000 | 1,610,000 - 2,070,000 | 1,415,000 - 1,915,000 |
| Molybdenum | tonnes | 1,300 - 1,500 | 1,300 - 1,500 | 1,400 - 1,800 |
| Manitoba | ||||
| Gold | ounces | 180,000 - 220,000 | 170,000 - 210,000 | 170,000 - 210,000 |
| Zinc | tonnes | 21,000 - 27,000 | 21,000 - 25,000 | 21,000 - 27,500 |
| Copper | tonnes | 9,000 - 11,000 | 11,000 - 13,000 | 12,000 - 14,000 |
| Silver | ounces | 800,000 - 1,000,000 | 750,000 - 950,000 | 1,000,000 - 1,200,000 |
| British Columbia2 | ||||
| Copper | tonnes | 28,000 - 41,000 | 30,000 - 45,000 | 50,000 - 70,000 |
| Gold | ounces | 18,500 - 28,000 | 20,000 - 30,000 | 30,000 - 45,000 |
| Silver | ounces | 245,000 - 365,000 | 230,000 - 345,000 | 455,000 - 680,000 |
| Total | ||||
| Copper | tonnes | 117,000 - 149,000 | 117,000 - 158,000 | 138,000 - 184,000 |
| Gold | ounces | 247,500 - 308,000 | 206,000 - 261,000 | 217,000 - 278,000 |
| Zinc | tonnes | 21,000 - 27,000 | 21,000 - 25,000 | 21,000 - 27,500 |
| Silver | ounces | 3,520,000 - 4,390,000 | 2,590,000 - 3,365,000 | 2,870,000 - 3,795,000 |
| Molybdenum | tonnes | 1,300 - 1,500 | 1,300 - 1,500 | 1,400 - 1,800 |
1 Metal reported in concentrate and doré is prior to smelting and refining losses or deductions associated with smelter terms.
2 Represents
Advancing Copper World Towards a Sanction Decision
Hudbay received the final major permit required for the development and operation of Copper World in January 2025, and the Company has since commenced a minority joint venture partner process. It is anticipated that any minority joint venture partner would participate in the funding of definitive feasibility study activities as well as the final project design and construction for Copper World. The Company has commenced work to support the definitive feasibility study and progress the project towards a potential sanction decision in 2026.
Copper World is expected to produce 85,000 tonnes of copper per year over an initial 20-year mine life, and the project generates an after-tax net present value ("NPV") (
Enhancing Stakeholder Relationships at Mason
Hudbay's Mason project in Nevada is one of the largest undeveloped copper porphyry deposits in North America. Based on a preliminary economic assessment (“PEA”) completed in 2021iv, Mason has the potential to be the third largest copper mine in the U.S. once in operation. The PEA contemplates a 27-year mine life with average annual copper production of approximately 140,000 tonnes over the first ten years of full production. Hudbay continues to advance local stakeholder engagement as well as additional metallurgical studies. While Mason is not as advanced as Copper World, Mason represents a long-term future development asset as part of Hudbay's pipeline of high-quality copper growth opportunities.
Exploration Update
Large Snow Lake Exploration Program Continues to Execute Threefold Strategy
Hudbay continues to execute the largest exploration program in Snow Lake in the Company’s history through extensive geophysical surveying and multi-phased drilling campaigns as part of Hudbay's threefold exploration strategy:
- Near-mine exploration at Lalor and 1901 further increase near-term production and extend mine life – Positive initial step out drilling from the exploration drift at the 1901 deposit intersected significant copper-gold mineralization, including
14.3% copper over 2.5 metres and 8.3 grams per tonne gold over 3.2 metres. Additional exploration at 1901 is planned for 2025 targeting additional step-out drill holes to potentially extend the ore body and infill drilling to convert inferred mineral resources in the gold lenses to mineral reserves. Follow up drilling at Lalor Northwest continued to intersect copper-gold mineralization, including 16.4 grams per tonne gold over 3.7 metres and2.6% copper over 3.5 metresvi. Hudbay continues to drill Lalor down-plunge and Lalor Northwest in 2025 through a surface drill program that is focused on testing the extent of the mineralization. - Testing regional satellite deposits to utilize available processing capacity and increase production – Hudbay increased its land package by more than
250% in 2023 through the acquisition of Rockcliff Metals Corp. (“Rockcliff”), which included the addition of several known deposits located within trucking distance of the Snow Lake processing infrastructure. These newly acquired deposits, together with several deposits already owned by Hudbay in Snow Lake, have created an attractive portfolio of regional deposits in Snow Lake, including the Talbot, Rail, Pen II, Watts, 3 Zone and WIM deposits. The continued strong performance from the New Britannia mill operating at above 2,000 tonnes per day has freed up processing capacity at the Stall mill. There is approximately 1,500 tonnes per day of available capacity at the Stall mill which can be utilized by the regional satellite deposits to increase production and extend the life of the Snow Lake operations beyond 2037. - Exploring large land package for new anchor deposit to significantly extend mine life – A majority of the newly acquired land claims have been untested by modern deep geophysics, which was the discovery method for the Lalor deposit. A large geophysics program is currently underway consisting of surface electromagnetic surveys using cutting-edge techniques that enable the team to detect targets at depths of almost 1,000 metres below surface. The planned geophysics program in 2025 is the largest geophysics program in Hudbay’s history and includes 800 kilometres of ground electromagnetic surveys and an extensive airborne geophysics survey.
Signed Exploration Agreement with First Nations in Manitoba
Hudbay is proud to have reached exploration agreements with two First Nations groups in Manitoba in 2025:
- Kiciwapa Cree Nation – In February 2025, Hudbay signed its first-ever exploration agreement with the Kiciwapa Cree Nation, reflecting the Company’s commitment to meaningful collaboration as Hudbay explores new mineral resources in the Snow Lake and Flin Flon regions.
- Mosakahiken Cree Nation – In April 2025, Hudbay signed an exploration agreement with the Mosakahiken Cree Nation, marking a significant step towards building a relationship based on alignment and transparency on its projects in the region, including the Talbot copper-zinc-gold deposit south of Snow Lake. The signing of this agreement represents a compelling opportunity for Hudbay to enhance future production and extend mine life at its Snow Lake operations through additional exploration activities in the region. A large exploration program at Talbot is planned for this summer.
Unlocking Value through Flin Flon Tailings Reprocessing
Hudbay continues to advance studies to evaluate the opportunity to reprocess Flin Flon tailings where more than 100 million tonnes of tailings have been deposited for over 90 years from the mill and the zinc plant. The studies are evaluating the potential to use the existing Flin Flon concentrator, which is currently on care and maintenance after the closure of the 777 mine in 2022, with flow sheet modifications to reprocess tailings to recover critical minerals and precious metals in an environmentally-friendly manner. The more advanced opportunity relates to the zinc plant tailings where metallurgical test work continues following positive results from the initial confirmatory drill program completed in 2024. The results confirmed the grades of precious metals and critical minerals previously estimated from historical zinc plant records. An early economic study to evaluate the opportunity to reprocess the zinc plant tailings has confirmed the potential for a technically viable reprocessing alternative, and the Company is progressing with further engineering work.
Maria Reyna and Caballito Drill Permits Proceeding Through the Regulatory Process
Hudbay controls a large, contiguous block of mineral rights with the potential to host satellite mineral deposits in close proximity to the Constancia processing facility, including the past producing Caballito property and the highly prospective Maria Reyna property. The Company commenced the drill permitting process at Maria Reyna and Caballito after completing a surface rights exploration agreement with the community of Uchucarcco in August 2022. As part of the drill permitting process, environmental impact assessment (EIA) applications were approved by the government in June 2024 for Maria Reyna and September 2024 for Caballito. This represents one of several steps in the drill permitting process, and the government is targeting completion of the process in 2025.
Normal Course Issuer Bid
Hudbay’s board of directors has approved, subject to the approval of the Toronto Stock Exchange (the “TSX”), a normal course issuer bid (“NCIB”) for up to
If the NCIB is approved by the TSX, Hudbay will be authorized to acquire up to a maximum of
Purchases under the NCIB will be made through the facilities of the TSX, New York Stock Exchange, or through alternative Canadian trading systems and in accordance with applicable regulatory requirements at a price per Share equal to the market price at the time of acquisition. Any Shares purchased under the NCIB will be cancelled upon their purchase. Hudbay intends to fund the purchases from its cash flow from operations.
Hudbay has elected to implement the NCIB because it believes that, from time to time, the market price of the Shares may not fully reflect the underlying value of Hudbay’s business and future prospects. Hudbay believes that, at such times, the repurchase of the Shares for cancellation may constitute a desirable use of capital and would be in the best interests of shareholders.
Website Links
Hudbay: www.hudbay.com
Management’s Discussion and Analysis:
https://www.hudbayminerals.com/MDA525
Financial Statements:
https://www.hudbayminerals.com/FS525
Conference Call and Webcast
| Date: | Monday, May 12, 2025 |
| Time: | 11:00 a.m. ET |
| Webcast: | www.hudbay.com |
| Dial in: | 647-846-8185 or 1-833-752-3516 |
Qualified Person and NI 43-101
The technical and scientific information in this news release related to all of Hudbay’s material mineral projects other than the Copper Mountain mine has been approved by Olivier Tavchandjian, P. Geo., Senior Vice President, Exploration and Technical Services. The technical and scientific information in this news release related to the Copper Mountain mine has been approved by Marc-Andre Brulotte, P. Geo., Director, Global Exploration and Resource Evaluation. Messrs. Tavchandjian and Brulotte are qualified persons pursuant to NI 43‑101.
For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources at Hudbay's material mineral properties, as well as data verification procedures and a general discussion of the extent to which the estimates of scientific and technical information may be affected by any known environmental, permitting, legal title, taxation, sociopolitical, marketing or other relevant factors, please see the technical reports for the Company’s material properties are available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov.
Cautionary Note Regarding Mason PEA
Readers should be aware that the Mason PEA referred to in this news release is preliminary in nature, includes inferred resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty the preliminary economic assessment will be realized.
Non-GAAP Financial Performance Measures
Adjusted net earnings (loss) attributable to owners, adjusted net earnings (loss) per share attributable to owners, adjusted EBITDA, net debt, cash cost, sustaining and all-in sustaining cash cost per pound of copper produced, cash cost and sustaining cash cost per ounce of gold produced, combined unit cost and ratios based on these measures are non-GAAP performance measures. These measures do not have a meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently.
Management believes adjusted net earnings (loss) attributable to owners and adjusted net earnings (loss) per share attributable to owners provides an alternate measure of the Company’s performance for the current period and gives insight into its expected performance in future periods. These measures are used internally by the Company to evaluate the performance of its underlying operations and to assist with its planning and forecasting of future operating results. As such, the Company believes these measures are useful to investors in assessing the Company’s underlying performance. Hudbay provides adjusted EBITDA to help users analyze the Company’s results and to provide additional information about its ongoing cash generating potential in order to assess its capacity to service and repay debt, carry out investments and cover working capital needs. Net debt is shown because it is a performance measure used by the Company to assess its financial position. Net debt to adjusted EBITDA is shown because it is a performance measure used by the Company to assess its financial leverage and debt capacity. Cash cost, sustaining and all-in sustaining cash cost per pound of copper produced are shown because the Company believes they help investors and management assess the performance of its operations, including the margin generated by the operations and the Company. Cash cost and sustaining cash cost per ounce of gold produced are shown because the Company believes they help investors and management assess the performance of its Manitoba operations. Combined unit cost is shown because Hudbay believes it helps investors and management assess the Company’s cost structure and margins that are not impacted by variability in by-product commodity prices.
The following tables provide detailed reconciliations to the most comparable IFRS measures.
Adjusted Net Earnings (Loss) Reconciliation
| Three Months Ended | ||||||||
| (in $ millions) | Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||||
| Net earnings for the period | 99.2 | 19.3 | 18.5 | |||||
| Tax expense | 72.1 | 84.4 | 49.3 | |||||
| Earnings before tax | 171.3 | 103.7 | 67.8 | |||||
| Adjusting items: | ||||||||
| Mark-to-market adjustments1 | (3.1 | ) | (10.3 | ) | 12.8 | |||
| Foreign exchange (gain) loss | (3.1 | ) | 17.4 | 4.8 | ||||
| Re-evaluation adjustment - environmental provision | 12.8 | 2.5 | (5.3 | ) | ||||
| Variable consideration adjustment - stream revenue and accretion | (10.5 | ) | — | 4.0 | ||||
| Inventory adjustments | 1.2 | 1.3 | — | |||||
| Reduction of obligation to renounce flow-through share expenditures, net of provisions | (1.9 | ) | 1.0 | (0.7 | ) | |||
| Restructuring charges | 0.1 | — | 0.9 | |||||
| Write-down/loss on disposal of PP&E | 0.6 | 14.1 | 9.1 | |||||
| Changes in other provisions (non-capital) | 0.7 | — | — | |||||
| Adjusted earnings before income taxes | 168.1 | 129.7 | 93.4 | |||||
| Tax expense | (72.1 | ) | (84.4 | ) | (49.3 | ) | ||
| Tax impact on adjusting items | (2.8 | ) | 23.4 | 13.6 | ||||
| Adjusted net earnings | 93.2 | 68.7 | 57.7 | |||||
| Adjusted net earnings attributable to non-controlling interest: | ||||||||
| Net loss for the period | 1.2 | 1.9 | 3.8 | |||||
| Adjusting items, including tax impact | (0.6 | ) | (0.3 | ) | (1.6 | ) | ||
| Adjusted net earnings - attributable to owners | 93.8 | 70.3 | 59.9 | |||||
| Adjusted net earnings ($/share) - attributable to owners | 0.24 | 0.18 | 0.17 | |||||
| Basic weighted average number of common shares outstanding (millions) | 395.0 | 394.0 | 350.8 | |||||
1 Includes changes in fair value of the gold prepayment liability, Canadian junior mining investments, other financial assets and liabilities at fair value through net earnings and share-based compensation (recoveries) expenses. Also includes gains and losses on disposition of investments.
Adjusted EBITDA Reconciliation
| Three Months Ended | |||||||
| (in $ millions) | Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | ||||
| Net earnings for the period | 99.2 | 19.3 | 18.5 | ||||
| Add back: | |||||||
| Tax expense | 72.1 | 84.4 | 49.3 | ||||
| Net finance expense | 14.4 | 34.4 | 44.0 | ||||
| Other expenses | 5.2 | 22.1 | 16.3 | ||||
| Depreciation and amortization | 108.1 | 122.2 | 109.3 | ||||
| Amortization of deferred revenue and variable consideration adjustment | (29.3 | ) | (26.2 | ) | (23.2 | ) | |
| Adjusting items (pre-tax): | |||||||
| Re-evaluation adjustment - environmental provision | 12.8 | 2.5 | (5.3 | ) | |||
| Inventory adjustments | 1.2 | 1.3 | — | ||||
| Option agreement proceeds (Marubeni) | 1.5 | — | 0.4 | ||||
| Realized loss on non-QP hedges | (1.9 | ) | (4.2 | ) | — | ||
| Share-based compensation expenses1 | 3.9 | 1.5 | 5.7 | ||||
| Adjusted EBITDA | 287.2 | 257.3 | 215.0 | ||||
1 Share-based compensation expenses reflected in cost of sales and selling and administrative expenses.
Net Debt Reconciliation
| (in $ millions) | |||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||||
| Total long-term debt | 1,108.7 | 1,107.5 | 1,278.6 | ||||
| Less: Cash and cash equivalents | (562.6 | ) | (541.8 | ) | (284.4 | ) | |
| Less: Short-term investments | (20.0 | ) | (40.0 | ) | — | ||
| Net debt | 526.1 | 525.7 | 994.2 | ||||
| (in $ millions, except net debt to adjusted EBITDA ratio) | |||||||
| Net debt | 526.1 | 525.7 | 994.2 | ||||
| Adjusted EBITDA (12-month period) | 895.7 | 823.3 | 761.3 | ||||
| Net debt to adjusted EBITDA | 0.6 | 0.6 | 1.3 | ||||
| Trailing Adjusted EBITDA | Three Months Ended | |||||||||
| (in $ millions) | Mar. 31, 2025 | Dec. 31, 2024 | Sept. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | |||||
| Earnings (loss) for the period | 99.2 | 19.3 | 50.4 | (20.4 | ) | 18.5 | ||||
| Add back: | ||||||||||
| Tax expense | 72.1 | 84.4 | 29.3 | 20.8 | 49.3 | |||||
| Net finance expense | 14.4 | 34.4 | 26.0 | 44.3 | 44.0 | |||||
| Other expenses | 5.2 | 22.1 | 7.9 | 11.2 | 16.3 | |||||
| Depreciation and amortization | 108.1 | 122.2 | 97.5 | 97.6 | 109.3 | |||||
| Amortization of deferred revenue and variable consideration adjustment | (29.3 | ) | (26.2 | ) | (9.5 | ) | (11.5 | ) | (23.2 | ) |
| Adjusting items (pre-tax): | ||||||||||
| Re-evaluation adjustment - environmental provision | 12.8 | 2.5 | 2.0 | (2.7 | ) | (5.3 | ) | |||
| Inventory adjustments | 1.2 | 1.3 | 1.6 | — | — | |||||
| Realized loss on non-QP hedges | (1.9 | ) | (4.2 | ) | (2.1 | ) | (2.6 | ) | — | |
| Option agreement proceeds (Marubeni) | 1.5 | — | — | — | 0.4 | |||||
| Share-based compensation expenses1 | 3.9 | 1.5 | 3.1 | 8.3 | 5.7 | |||||
| Adjusted EBITDA | 287.2 | 257.3 | 206.2 | 145.0 | 215.0 | |||||
| LTM2 | 895.7 | 823.5 | ||||||||
1 Share-based compensation expense reflected in cost of sales and administrative expenses.
2 LTM (last twelve months) as of March 31, 2025 and December 31, 2024. Annual consolidated results may not be calculated based on the amounts presented in this table due to rounding.
Copper Cash Cost Reconciliation
| Consolidated | Three Months Ended | ||
| Net pounds of copper produced1 | |||
| (in thousands) | Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 |
| Peru | 44,738 | 74,931 | 54,181 |
| Manitoba | 7,648 | 7,379 | 6,942 |
| British Columbia | 15,864 | 13,067 | 15,485 |
| Net pounds of copper produced | 68,250 | 95,377 | 76,608 |
1 Contained copper in concentrate.
| Consolidated | Three Months Ended | ||||||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||||||||||||
| Cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | |||||||||
| Mining | 91.2 | 1.34 | 108.1 | 1.13 | 102.1 | 1.33 | |||||||||
| Milling | 80.6 | 1.18 | 95.4 | 1.00 | 83.5 | 1.09 | |||||||||
| G&A | 43.6 | 0.64 | 50.6 | 0.53 | 38.3 | 0.50 | |||||||||
| Onsite costs | 215.4 | 3.16 | 254.1 | 2.66 | 223.9 | 2.92 | |||||||||
| Treatment & refining | 14.0 | 0.21 | 25.9 | 0.27 | 27.7 | 0.36 | |||||||||
| Freight & other | 24.3 | 0.35 | 28.6 | 0.30 | 27.1 | 0.36 | |||||||||
| Cash cost, before by-product credits | 253.7 | 3.72 | 308.6 | 3.23 | 278.7 | 3.64 | |||||||||
| By-product credits | (284.7 | ) | (4.17 | ) | (265.5 | ) | (2.78 | ) | (266.7 | ) | (3.48 | ) | |||
| Cash cost, net of by-product credits | (31.0 | ) | (0.45 | ) | 43.1 | 0.45 | 12.0 | 0.16 | |||||||
| Consolidated | Three Months Ended | ||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||||||||
| Supplementary cash cost information | $ millions | $/lb1 | $ millions | $/lb1 | $ millions | $/lb1 | |||||
| By-product credits2: | |||||||||||
| Zinc | 13.8 | 0.20 | 16.1 | 0.17 | 14.6 | 0.19 | |||||
| Gold3 | 225.4 | 3.30 | 212.9 | 2.23 | 209.8 | 2.74 | |||||
| Silver3 | 26.1 | 0.38 | 26.6 | 0.28 | 23.1 | 0.30 | |||||
| Molybdenum & other | 19.4 | 0.29 | 9.9 | 0.10 | 19.2 | 0.25 | |||||
| Total by-product credits | 284.7 | 4.17 | 265.5 | 2.78 | 266.7 | 3.48 | |||||
| Reconciliation to IFRS: | |||||||||||
| Cash cost, net of by-product credits | (31.0 | ) | 43.1 | 12.0 | |||||||
| By-product credits | 284.7 | 265.5 | 266.7 | ||||||||
| Treatment and refining charges | (14.0 | ) | (25.9 | ) | (27.7 | ) | |||||
| Share-based compensation expense | 0.7 | 0.7 | 0.3 | ||||||||
| Inventory adjustments | 1.2 | 1.3 | — | ||||||||
| Past service costs | — | 1.5 | — | ||||||||
| Change in product inventory | 12.0 | (10.0 | ) | 9.5 | |||||||
| Royalties | 1.9 | 2.1 | 2.9 | ||||||||
| Depreciation and amortization4 | 108.1 | 122.2 | 109.3 | �� | |||||||
| Cost of sales5 | 363.6 | 400.5 | 373.0 | ||||||||
1 Per pound of copper produced.
2 By-product credits are computed as revenue per consolidated financial statements, including amortization of deferred revenue and pricing and volume adjustments.
3 Gold and silver by-product credits do not include variable consideration adjustments with respect to stream arrangements. Variable consideration adjustments are cumulative adjustments to gold and silver stream deferred revenue primarily associated with the net change in mineral reserves and resources or amendments to the mine plan that would change the total expected deliverable ounces under the precious metal streaming arrangement. For the three months ended March 31, 2025 the variable consideration adjustments amounted to a gain of
4 Depreciation is based on concentrate sold.
5 As per consolidated financial statements.
| Peru | Three Months Ended | |||
| (in thousands) | Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |
| Net pounds of copper produced1 | 44,738 | 74,931 | 54,181 | |
1 Contained copper in concentrate.
| Peru | Three Months Ended | ||||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||||||||||
| Cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | |||||||
| Mining | 31.0 | 0.69 | 47.3 | 0.63 | 29.2 | 0.54 | |||||||
| Milling | 44.4 | 0.99 | 53.6 | 0.72 | 43.6 | 0.80 | |||||||
| G&A | 22.5 | 0.51 | 33.2 | 0.44 | 23.1 | 0.43 | |||||||
| Onsite costs | 97.9 | 2.19 | 134.1 | 1.79 | 95.9 | 1.77 | |||||||
| Treatment & refining | 6.7 | 0.15 | 16.0 | 0.21 | 15.0 | 0.28 | |||||||
| Freight & other | 15.2 | 0.34 | 19.2 | 0.25 | 16.6 | 0.30 | |||||||
| Cash cost, before by-product credits | 119.8 | 2.68 | 169.3 | 2.25 | 127.5 | 2.35 | |||||||
| By-product credits | (70.2 | ) | (1.57 | ) | (94.0 | ) | (1.25 | ) | (104.3 | ) | (1.92 | ) | |
| Cash cost, net of by-product credits | 49.6 | 1.11 | 75.3 | 1.00 | 23.2 | 0.43 | |||||||
| Peru | Three Months Ended | ||||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||||||||||
| Supplementary cash cost information | $ millions | $/lb1 | $ millions | $/lb1 | $ millions | $/lb1 | |||||||
| By-product credits2: | |||||||||||||
| Gold3 | 35.0 | 0.78 | 68.5 | 0.91 | 69.5 | 1.28 | |||||||
| Silver3 | 15.6 | 0.35 | 16.8 | 0.22 | 15.6 | 0.29 | |||||||
| Molybdenum | 19.6 | 0.44 | 8.7 | 0.12 | 19.2 | 0.35 | |||||||
| Total by-product credits | 70.2 | 1.57 | 94.0 | 1.25 | 104.3 | 1.92 | |||||||
| Reconciliation to IFRS: | |||||||||||||
| Cash cost, net of by-product credits | 49.6 | 75.3 | 23.2 | ||||||||||
| By-product credits | 70.2 | 94.0 | 104.3 | ||||||||||
| Treatment and refining charges | (6.7 | ) | (16.0 | ) | (15.0 | ) | |||||||
| Inventory adjustments | 0.4 | (0.2 | ) | — | |||||||||
| Share-based compensation expenses | 0.1 | 0.1 | 0.1 | ||||||||||
| Change in product inventory | 13.8 | (6.7 | ) | 14.1 | |||||||||
| Royalties | 1.1 | 1.5 | 2.1 | ||||||||||
| Depreciation and amortization4 | 68.2 | 83.2 | 71.0 | ||||||||||
| Cost of sales5 | 196.7 | 231.2 | 199.8 | ||||||||||
1 Per pound of copper produced.
2 By-product credits are computed as revenue per consolidated financial statements, including amortization of deferred revenue and pricing and volume adjustments.
3 Gold and silver by-product credits do not include variable consideration adjustments with respect to stream arrangements.
4 Depreciation is based on concentrate sold.
5 As per the consolidated financial statements.
| British Columbia | Three Months Ended | |||
| (in thousands) | Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |
| Net pounds of copper produced1 | 15,864 | 13,067 | 15,485 | |
1 Contained copper in concentrate.
| British Columbia | Three Months Ended | ||||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||||||||||
| Cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | |||||||
| Mining | 21.9 | 1.38 | 18.2 | 1.39 | 28.5 | 1.85 | |||||||
| Milling | 21.8 | 1.37 | 25.2 | 1.93 | 23.4 | 1.51 | |||||||
| G&A | 6.3 | 0.40 | 4.6 | 0.35 | 3.9 | 0.25 | |||||||
| Onsite costs | 50.0 | 3.15 | 48.0 | 3.67 | 55.8 | 3.61 | |||||||
| Treatment & refining | 3.6 | 0.23 | 3.4 | 0.26 | 3.5 | 0.22 | |||||||
| Freight & other | 3.4 | 0.21 | 2.4 | 0.19 | 4.3 | 0.28 | |||||||
| Cash cost, before by-product credits | 57.0 | 3.59 | 53.8 | 4.12 | 63.6 | 4.11 | |||||||
| By-product credits | (18.3 | ) | (1.15 | ) | (14.6 | ) | (1.12 | ) | (9.6 | ) | (0.62 | ) | |
| Cash cost, net of by-product credits | 38.7 | 2.44 | 39.2 | 3.00 | 54.0 | 3.49 | |||||||
| British Columbia | Three Months Ended | ||||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||||||||||
| Supplementary cash cost information | $ millions | $/lb1 | $ millions | $/lb1 | $ millions | $/lb1 | |||||||
| By-product credits2: | |||||||||||||
| Gold | 16.1 | 1.01 | 13.3 | 1.02 | 7.6 | 0.49 | |||||||
| Silver | 2.2 | 0.14 | 1.3 | 0.10 | 2.0 | 0.13 | |||||||
| Total by-product credits | 18.3 | 1.15 | 14.6 | 1.12 | 9.6 | 0.62 | |||||||
| Reconciliation to IFRS: | |||||||||||||
| Cash cost, net of by-product credits | 38.7 | 39.2 | 54.0 | ||||||||||
| By-product credits | 18.3 | 14.6 | 9.6 | ||||||||||
| Treatment and refining charges | (3.6 | ) | (3.4 | ) | (3.5 | ) | |||||||
| Share based payment | 0.3 | 0.4 | — | ||||||||||
| Change in product inventory | (0.8 | ) | (3.0 | ) | (4.0 | ) | |||||||
| Inventory adjustments | 0.8 | 1.2 | — | ||||||||||
| Royalties | 0.8 | 0.6 | 0.8 | ||||||||||
| Depreciation and amortization3 | 16.0 | 11.8 | 11.7 | ||||||||||
| Cost of sales4 | 70.5 | 61.4 | 68.6 | ||||||||||
1 Per pound of copper produced.
2 By-product credits are computed as revenue per consolidated financial statements, including amortization of deferred revenue and pricing and volume adjustments.
3 Depreciation is based on concentrate sold.
4 As per consolidated financial statements.
Sustaining and All-in Sustaining Cash Cost Reconciliation
| Consolidated | Three Months Ended | |||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | ||||||||
| All-in sustaining cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | ||||
| Cash cost, net of by-product credits | (31.0 | ) | (0.45 | ) | 43.1 | 0.45 | 12.0 | 0.16 | ||
| Cash sustaining capital expenditures | 78.2 | 1.14 | 85.3 | 0.89 | 62.3 | 0.80 | ||||
| Royalties | 1.9 | 0.03 | 2.1 | 0.03 | 2.9 | 0.04 | ||||
| Sustaining cash cost, net of by-product credits | 49.1 | 0.72 | 130.5 | 1.37 | 77.2 | 1.00 | ||||
| Corporate selling and administrative expenses & regional costs | 15.3 | 0.22 | 11.6 | 0.12 | 18.1 | 0.24 | ||||
| Accretion and amortization of decommissioning and community agreements1 | 2.0 | 0.03 | 3.7 | 0.04 | 4.0 | 0.05 | ||||
| All-in sustaining cash cost, net of by-product credits | 66.4 | 0.97 | 145.8 | 1.53 | 99.3 | 1.29 | ||||
| Reconciliation to property, plant and equipment additions | ||||||||||
| Property, plant and equipment additions | 68.2 | 127.6 | 46.2 | |||||||
| Capitalized stripping net additions | 41.3 | 35.8 | 32.0 | |||||||
| Total accrued capital additions | 109.5 | 163.4 | 78.2 | |||||||
| Less other non-sustaining capital costs2 | 47.0 | 91.8 | 27.0 | |||||||
| Total sustaining capital costs | 62.5 | 71.6 | 51.2 | |||||||
| Capitalized lease & equipment financing cash payments - operating sites | 12.8 | 10.3 | 8.3 | |||||||
| Community agreement cash payments3 | 0.8 | 0.7 | 0.8 | |||||||
| Accretion and amortization of decommissioning and restoration obligations4 | 2.1 | 2.7 | 2.0 | |||||||
| Cash sustaining capital expenditures | 78.2 | 85.3 | 62.3 | |||||||
1 Includes accretion of decommissioning relating to non-productive sites, and accretion and amortization of community agreements capitalized to Other assets.
2 Other non-sustaining capital costs include Arizona capitalized costs, capitalized interest, capitalized exploration, right-of-use lease asset additions, equipment financing asset additions, growth capital expenditures and reclassification related to capital spares.
3 Amortization for community agreements relating to current operations.
4 Includes amortization of decommissioning and restoration PP&E assets and accretion of decommissioning and restoration liabilities related to producing sites.
| Peru | Three Months Ended | ||||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||||||||||
| Sustaining cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | |||||||
| Cash cost, net of by-product credits | 49.6 | 1.11 | 75.3 | 1.00 | 23.2 | 0.43 | |||||||
| Cash sustaining capital expenditures | 35.3 | 0.79 | 34.3 | 0.46 | 29.8 | 0.55 | |||||||
| Royalties | 1.1 | 0.02 | 1.5 | 0.02 | 2.1 | 0.04 | |||||||
| Sustaining cash cost per pound of copper produced | 86.0 | 1.92 | 111.1 | 1.48 | 55.1 | 1.02 | |||||||
| British Columbia | Three Months Ended | ||||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||||||||||
| Sustaining cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | |||||||
| Cash cost, net of by-product credits | 38.7 | 2.44 | 39.2 | 3.00 | 54.0 | 3.49 | |||||||
| Cash sustaining capital expenditures | 27.8 | 1.75 | 35.4 | 2.71 | 20.3 | 1.31 | |||||||
| Royalties | 0.8 | 0.05 | 0.6 | 0.05 | 0.8 | 0.05 | |||||||
| Sustaining cash cost per pound of copper produced | 67.3 | 4.24 | 75.2 | 5.76 | 75.1 | 4.85 | |||||||
Gold Cash Cost and Sustaining Cash Cost Reconciliation
| Manitoba | Three Months Ended | ||
| (in thousands) | Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 |
| Net ounces of gold produced1 | 60,354 | 51,438 | 56,831 |
1 Contained gold in concentrate and doré.
| Manitoba | Three Months Ended | ||||||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||||||||||||
| Cash cost per ounce of gold produced | $millions | $/oz | $millions | $/oz | $millions | $/oz | |||||||||
| Mining | 38.3 | 634 | 42.6 | 828 | 44.4 | 780 | |||||||||
| Milling | 14.4 | 239 | 16.6 | 323 | 16.5 | 290 | |||||||||
| G&A | 14.8 | 245 | 12.8 | 249 | 11.3 | 200 | |||||||||
| Onsite costs | 67.5 | 1,118 | 72.0 | 1,400 | 72.2 | 1,270 | |||||||||
| Treatment & refining | 3.7 | 61 | 6.5 | 126 | 9.2 | 162 | |||||||||
| Freight & other | 5.7 | 95 | 7.0 | 136 | 6.2 | 109 | |||||||||
| Cash cost, before by-product credits | 76.9 | 1,274 | 85.5 | 1,662 | 87.6 | 1,541 | |||||||||
| By-product credits | (54.2 | ) | (898 | ) | (54.3 | ) | (1,055 | ) | (45.7 | ) | (805 | ) | |||
| Gold cash cost, net of by-product credits | 22.7 | 376 | 31.2 | 607 | 41.9 | 736 | |||||||||
| Manitoba | Three Months Ended | |||||||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | ||||||||||
| Supplementary cash cost information | $millions | $/oz1 | $millions | $/oz1 | $millions | $/oz1 | ||||||
| By-product credits2: | ||||||||||||
| Copper | 32.3 | 535 | 28.5 | 554 | 25.6 | 451 | ||||||
| Zinc | 13.8 | 228 | 16.1 | 313 | 14.6 | 257 | ||||||
| Silver | 8.3 | 138 | 8.5 | 165 | 5.5 | 97 | ||||||
| Other | (0.2 | ) | (3 | ) | 1.2 | 23 | — | — | ||||
| Total by-product credits | 54.2 | 898 | 54.3 | 1,055 | 45.7 | 805 | ||||||
| Reconciliation to IFRS: | ||||||||||||
| Cash cost, net of by-product credits | 22.7 | 31.2 | 41.9 | |||||||||
| By-product credits | 54.2 | 54.3 | 45.7 | |||||||||
| Treatment and refining charges | (3.7 | ) | (6.5 | ) | (9.2 | ) | ||||||
| Inventory adjustments | — | 0.3 | — | |||||||||
| Past service cost | — | 1.5 | — | |||||||||
| Share-based compensation expenses | 0.3 | 0.2 | 0.2 | |||||||||
| Change in product inventory | (1.0 | ) | (0.3 | ) | (0.6 | ) | ||||||
| Depreciation and amortization3 | 23.9 | 27.2 | 26.6 | |||||||||
| Cost of sales4 | 96.4 | 107.9 | 104.6 | |||||||||
1 Per ounce of gold produced.
2 By-product credits are computed as revenue per consolidated financial statements, amortization of deferred revenue, pricing and volume adjustments.
3 Depreciation is based on concentrate sold.
4 As per consolidated financial statements.
| Manitoba | Three Months Ended | |||||||
| Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | ||||||
| Sustaining cash cost per pound of gold produced | $millions | $/oz | $millions | $/oz | $millions | $/oz | ||
| Gold cash cost, net of by-product credits | 22.7 | 376 | 31.2 | 607 | 41.9 | 736 | ||
| Cash sustaining capital expenditures | 15.1 | 250 | 15.5 | 301 | 12.2 | 214 | ||
| Sustaining cash cost per pound of gold produced | 37.8 | 626 | 46.7 | 908 | 54.1 | 950 | ||
Combined Unit Cost Reconciliation
| Peru | Three Months Ended | |||||
| (in millions except ore tonnes milled and unit cost per tonne) | ||||||
| Combined unit cost per tonne processed | Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||
| Mining | 31.0 | 47.3 | 29.2 | |||
| Milling | 44.4 | 53.6 | 43.6 | |||
| G&A1 | 22.5 | 33.2 | 23.1 | |||
| Other G&A2 | (7.9 | ) | (12.1 | ) | (7.7 | ) |
| Unit cost | 90.0 | 122.0 | 88.2 | |||
| Tonnes ore milled | 8,114 | 7,999 | 8,078 | |||
| Combined unit cost per tonne | 11.09 | 15.25 | 10.92 | |||
| Reconciliation to IFRS: | ||||||
| Unit cost | 90.0 | 122.0 | 88.2 | |||
| Freight & other | 15.2 | 19.2 | 16.6 | |||
| Inventory adjustments | 0.4 | (0.2 | ) | — | ||
| Other G&A | 7.9 | 12.1 | 7.7 | |||
| Share-based compensation expenses | 0.1 | 0.1 | 0.1 | |||
| Change in product inventory | 13.8 | (6.7 | ) | 14.1 | ||
| Royalties | 1.1 | 1.5 | 2.1 | |||
| Depreciation and amortization | 68.2 | 83.2 | 71.0 | |||
| Cost of sales3 | 196.7 | 231.2 | 199.8 | |||
1 G&A as per cash cost reconciliation above.
2 Other G&A primarily includes profit sharing costs.
3 As per consolidated financial statements.
| British Columbia | Three Months Ended | |||
| (in millions except tonnes ore milled and unit cost per tonne) | ||||
| Combined unit cost per tonne processed | Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |
| Mining | 21.9 | 18.2 | 28.5 | |
| Milling | 21.8 | 25.2 | 23.4 | |
| G&A1 | 6.3 | 4.6 | 3.9 | |
| Unit cost | 50.0 | 48.0 | 55.8 | |
| USD/CAD implicit exchange rate | 1.43 | 1.38 | 1.35 | |
| Unit cost - C$ | 71.7 | 66.9 | 75.3 | |
| Tonnes ore milled | 2,761 | 2,881 | 3,180 | |
| Combined unit cost per tonne – C$ | 25.98 | 23.22 | 23.67 | |
| Reconciliation to IFRS: | ||||
| Unit cost | 50.0 | 48.0 | 55.8 | |
| Freight & other | 3.4 | 2.4 | 4.3 | |
| Share-based compensation expenses | 0.3 | 0.4 | — | |
| Change in product inventory | (0.8) | (3.0) | (4.0) | |
| Inventory adjustments | 0.8 | 1.2 | — | |
| Royalties | 0.8 | 0.6 | 0.8 | |
| Depreciation and amortization | 16.0 | 11.8 | 11.7 | |
| Cost of sales2 | 70.5 | 61.4 | 68.6 | |
1 G&A as per cash cost reconciliation above
2 As per consolidated interim financial statements.
| Manitoba | Three Months Ended | |||||
| (in millions except ore tonnes milled and unit cost per tonne) | ||||||
| Combined unit cost per tonne processed | Mar. 31, 2025 | Dec. 31, 2024 | Mar. 31, 2024 | |||
| Mining | 38.3 | 42.6 | 44.4 | |||
| Milling | 14.4 | 16.6 | 16.5 | |||
| G&A1 | 14.8 | 12.8 | 11.3 | |||
| Less: Other G&A related to profit sharing costs | (7.2 | ) | (4.0 | ) | (4.1 | ) |
| Unit cost | 60.3 | 68.0 | 68.1 | |||
| USD/CAD implicit exchange rate | 1.43 | 1.39 | 1.35 | |||
| Unit cost - C$ | 86.5 | 95.0 | 91.7 | |||
| Tonnes ore milled | 404,410 | 407,596 | 389,767 | |||
| Combined unit cost per tonne - C$ | 214 | 233 | 235 | |||
| Reconciliation to IFRS: | ||||||
| Unit cost | 60.3 | 68.0 | 68.1 | |||
| Freight & other | 5.7 | 7.0 | 6.2 | |||
| Other G&A related to profit sharing | 7.2 | 4.0 | 4.1 | |||
| Share-based compensation expenses | 0.3 | 0.2 | 0.2 | |||
| Inventory adjustments | — | 0.3 | — | |||
| Past service costs | — | 1.5 | — | |||
| Change in product inventory | (1.0 | ) | (0.3 | ) | (0.6 | ) |
| Depreciation and amortization | 23.9 | 27.2 | 26.6 | |||
| Cost of sales2 | 96.4 | 107.9 | 104.6 | |||
1 G&A as per cash cost reconciliation above.
2 As per consolidated interim financial statements.
Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “budget”, “guidance”, “scheduled”, “estimates”, “forecasts”, “strategy”, “target”, “intends”, “objective”, “goal”, “understands”, “anticipates” and “believes” (and variations of these or similar words) and statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” “occur” or “be achieved” or “will be taken” (and variations of these or similar expressions). All of the forward-looking information in this news release is qualified by this cautionary note.
Forward-looking information includes, but is not limited to, statements with respect to Hudbay’s production, cost and capital and exploration expenditure guidance, expectations regarding reductions in discretionary spending and capital expenditures, Hudbay’s ability to advance and complete the optimization of the Copper Mountain mine operation, the implementation of stripping strategies and the expected benefits therefrom, the estimated timelines and pre-requisites for sanctioning the Copper World project and the pursuit of a potential minority joint venture partner, the possibility of and expectations regarding the results of any challenges to the permits for the Copper World project, the expected benefits of the sanctioning of Copper World project, the expected benefits of Manitoba growth initiatives, including the use of the exploration drift at the 1901 deposit, and the potential utilization of excess capacity at the Stall mill, the receipt of TSX approval of the NCIB, as well as any potential Share purchases under the NCIB, Hudbay’s future deleveraging strategies and Hudbay’s ability to deleverage and repay debt as needed, expectations regarding Hudbay’s cash balance and liquidity, expectations regarding tax synergies, expectations regarding the ability to conduct exploration work and execute on exploration programs on its properties and to advance related drill plans, including the advancement of the exploration program at Maria Reyna and Caballito and the status of the related drill permit application process, expectations regarding the prospective nature of the Maria Reyna and Caballito properties, the ability to continue mining higher-grade ore in the Pampacancha pit and Hudbay’s expectations resulting therefrom, expectations regarding Hudbay’s ability to further reduce greenhouse gas emissions, Hudbay’s evaluation and assessment of opportunities to reprocess tailings using various metallurgical technologies, the anticipated impact of brownfield and greenfield growth projects on Hudbay’s performance, anticipated expansion opportunities and extension of mine life in Snow Lake and Hudbay’s ability to find a new anchor deposit near Hudbay’s Snow Lake operations, anticipated future drill programs and exploration activities and any results expected therefrom, anticipated mine plans, anticipated metals prices and the anticipated sensitivity of Hudbay’s financial performance to metals prices, events that may affect Hudbay’s operations and development projects, anticipated cash flows from operations and related liquidity requirements, the anticipated effect of external factors on revenue, such as commodity prices, estimation of mineral reserves and resources, mine life projections, reclamation costs, economic outlook, government regulation of mining operations, and business and acquisition strategies. 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 Hudbay 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 has identified and were applied in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to:
- the ability to achieve production, cost and capital and exploration expenditure guidance;
- no significant interruptions to Hudbay's operations due to social or political unrest in the regions Hudbay operates, including the navigation of the complex political and social environment in Peru;
- no interruptions to Hudbay's plans for advancing the Copper World project, including with respect to any successful challenges to the Copper World permits and/or the pursuit of a potential minority joint venture partner;
- Hudbay's ability to successfully advance and complete the optimization of the Copper Mountain operations, obtain required permits and develop and maintain good relations with key stakeholders;
- the ability to execute on its exploration plans and to advance related drill plans;
- the ability to advance the exploration program at the Maria Reyna and Caballito properties;
- the success of mining, processing, exploration and development activities;
- the scheduled maintenance and availability of Hudbay's processing facilities;
- the accuracy of geological, mining and metallurgical estimates;
- anticipated metals prices and the costs of production;
- the supply and demand for metals Hudbay produces;
- the supply and availability of all forms of energy and fuels at reasonable prices;
- no significant unanticipated operational or technical difficulties;
- no significant interruptions to operations due to adverse effects from extreme weather events, including but not limited to forest fires that may affect the regions in which Hudbay operates;
- the execution of Hudbay's business and growth strategies, including the success of its strategic investments and initiatives;
- the availability of additional financing, if needed;
- the ability to deleverage and repay debt, as needed;
- the ability to complete project targets on time and on budget and other events that may affect Hudbay's ability to develop Hudbay's projects;
- the timing and receipt of various regulatory and governmental approvals;
- the availability of personnel for Hudbay's exploration, development and operational projects and ongoing employee relations;
- maintaining good relations with the employees at Hudbay's operations;
- maintaining good relations with the labour unions that represent certain of Hudbay employees in Manitoba and Peru;
- maintaining good relations with the communities in which Hudbay operates, including the neighbouring Indigenous communities and local governments;
- no significant unanticipated challenges with stakeholders at Hudbay's various projects;
- no significant unanticipated events or changes relating to regulatory, environmental, health and safety matters;
- no contests over title to Hudbay's properties, including as a result of rights or claimed rights of Indigenous peoples or challenges to the validity of Hudbay's unpatented mining claims;
- the timing and possible outcome of pending litigation and no significant unanticipated litigation;
- certain tax matters, including, but not limited to current tax laws and regulations, changes in taxation policies and the refund of certain value added taxes from the Canadian and Peruvian governments; and
- no significant and continuing adverse changes in general economic conditions or conditions in the financial markets (including commodity prices and foreign exchange rates).
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 related to the failure to effectively advance and complete the optimization of the Copper Mountain mine operations, political and social risks in the regions Hudbay operates, including the navigation of the complex political and social environment in Peru, risks generally associated with the mining industry and the current geopolitical environment, including future commodity prices, the potential implementation or expansion of tariffs, currency and interest rate fluctuations, energy and consumable prices, supply chain constraints and general cost escalation in the current inflationary environment, uncertainties related to the development and operation of Hudbay’s projects, the risk of an indicator of impairment or impairment reversal relating to a material mineral property, risks related to the Copper World project, including in relation to project delivery and financing risks, risks related to the Lalor mine plan, including the ability to convert inferred mineral resource estimates to higher confidence categories, dependence on key personnel and employee and union relations, risks related to political or social instability, unrest or change, risks in respect of Indigenous and community relations, rights and title claims, operational risks and hazards, including the cost of maintaining and upgrading Hudbay’s tailings management facilities and any unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, depletion of Hudbay’s reserves, volatile financial markets and interest rates that may affect Hudbay’s ability to obtain additional financing on acceptable terms, the failure to obtain required approvals or clearances from government authorities on a timely basis, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources, and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, Hudbay’s ability to comply with Hudbay’s pension and other post-retirement obligations, Hudbay’s ability to abide by the covenants in Hudbay’s debt instruments and other material contracts, tax refunds, hedging transactions, as well as the risks discussed under the heading “Risk Factors” in Hudbay’s most recent Annual Information Form which is available on the Company’s SEDAR+ profile at www.sedarplus.ca and the Company’s EDGAR profile 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.
Note to United States Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which may differ materially from the requirements of United States securities laws applicable to U.S. issuers.
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
____________________
i Adjusted net earnings (loss) - attributable to owners and adjusted net earnings (loss) per share - attributable to owners, adjusted EBITDA, cash cost, sustaining cash cost, all-in sustaining cash cost per pound of copper produced, net of by-product credits, cash cost, sustaining cash cost per ounce of gold produced, net of by-product credits, combined unit cost, net debt and net debt to adjusted EBITDA ratio are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the “Non-GAAP Financial Performance Measures” section of this news release.
ii Represents the increase in 2025 expected operating cash flow before change in non-cash working capital assuming a
iii Calculated using the midpoint of the annual guidance range.
iv Please refer to the additional disclosure regarding the Mason PEA in the Qualified Person and NI 43-101 section of this news release.
v Sourced from S&P Global.
vi For further information on the drill hole results, please refer to Hudbay’s news release dated March 27, 2025.
vii Free cash flow is calculated as operating cash flow before changes in non-cash working capital less sustaining capital expenditures, and cash payments from operating sites related to leases, equipment financing payments and community payments.
FAQ
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