Hudbay Provides an Update on the Wildfire Situation near Flin Flon

Rhea-AI Summary

Hudbay Minerals (TSX, NYSE: HBM) is responding to wildfires near Flin Flon, Manitoba, leading to a regional evacuation order. While the company no longer has active mining in Flin Flon since 2022, it maintains care and maintenance activities and services supporting Snow Lake operations. Snow Lake operations, located 200km east of Flin Flon, continue but with temporarily reduced production as many workers reside in Flin Flon. Despite this, Hudbay remains confident in meeting its 2025 guidance due to strong year-to-date performance. The company has paused exploration activities in both regions and is taking supportive actions including: securing accommodation for evacuated employees, deploying emergency personnel, providing resources for firefighting efforts, and maintaining communication with local authorities.

Positive

• Company expects to maintain 2025 guidance despite disruptions due to strong year-to-date performance
• Snow Lake operations continue functioning, though at reduced levels
• Company demonstrates strong emergency response and community support

Negative

• Temporary reduction in Snow Lake production levels due to workforce evacuation
• Suspension of exploration activities in Flin Flon and Snow Lake regions
• Disruption to support services including concentrate handling and fabrication shops

Insights

Mining Operations Analyst

Hudbay faces temporary production reduction in Snow Lake due to wildfires, but maintains 2025 guidance amid strong year-to-date performance.

The wildfire situation near Flin Flon represents a short-term operational challenge for Hudbay, though with limited financial impact likely. While Hudbay no longer has active mining in Flin Flon since the 777 mine closure in 2022, the evacuation still affects operations because many Snow Lake employees reside in Flin Flon.

The company has explicitly stated they expect temporary reduced production levels in Snow Lake, which is their active mining operation approximately 200km east of Flin Flon. However, they've emphasized that strong performance year-to-date positions them to still achieve their annual guidance metrics for 2025, suggesting the financial impact may be contained.

Three operational aspects are affected: (1) Snow Lake production temporarily reduced, (2) exploration activities paused in the region, and (3) support services for Snow Lake operations (concentrate handling, fabrication shops, administration) disrupted. These support services are based in Flin Flon despite no active mining there.

The mitigation measures, including securing additional accommodations in Snow Lake for evacuated employees and their families, demonstrate proper crisis management but don't eliminate the production impact. This situation highlights the interconnectedness of Hudbay's Manitoba operations despite the 777 mine closure.

The wildfire's timing is somewhat fortunate as it comes after what appears to be strong operational performance in the first part of 2025, providing a buffer against the temporary reduction in output.

TORONTO, May 29, 2025 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) is responding to the evolving wildfire situation in northern Manitoba and is working closely with local authorities to ensure its employees remain safe as well as comply with the regional wildfire evacuation order that includes Flin Flon and the surrounding areas. Only essential Hudbay personnel, authorized by emergency services, will remain in Flin Flon to assist with emergency activities. While Hudbay no longer has active mine production activities in Flin Flon after the closure of the 777 mine in 2022, the Company has ongoing care and maintenance activities in Flin Flon as well as services to support the Snow Lake operations, including concentrate handling, fabrication shops and administration. The Flin Flon community has been an important part of Hudbay’s operations for nearly 100 years.

Hudbay continues to maintain operations in Snow Lake, which is located approximately 200 kilometres east of Flin Flon. The Company expects temporary reduced production levels in Snow Lake as a large portion of its workforce resides in Flin Flon. However, given the strong performance in Snow Lake year-to-date, the Company remains well-positioned to achieve its annual guidance metrics for 2025. Hudbay has paused exploration activities in the Flin Flon and Snow Lake region as fire mitigation efforts are underway.

“The safety of our employees, their families and the communities we serve is our top priority,” said Rob Carter, Vice President of Hudbay’s Manitoba Business Unit. “We are collaborating closely with the City of Flin Flon, local communities and provincial authorities to provide support during this challenging time. We will continue to monitor the situation, ensuring a safe return to full operations as soon as it is advisable.”

As part of its commitment to support Manitoba and the Flin Flon community, Hudbay is taking the following actions:

• Securing additional accommodations in Snow Lake for its evacuated employees and their families.
• Deploying trained emergency personnel to aid firefighting efforts.
• Maintaining communication with the City of Flin Flon, local communities and provincial authorities about the resources Hudbay has available to support emergency response efforts, such as supplies, equipment and water trucks.
• Providing facility infrastructure information to assist with planning and response.

Forward-Looking Information

This news release contains “forward-looking statements” and “forward-looking information” (collectively, “forward-looking information”) within the meaning of applicable Canadian and United States securities legislation. Forward- looking information includes information that relates to, among other things, statements with respect to potential impacts from wildfires on the Company’s operations in Manitoba, including the ability to achieve guidance expectations. 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. 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. 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 mining company with three long-life operations and a world-class pipeline of copper growth projects in tier-one mining-friendly 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

FAQ

How are the wildfires affecting Hudbay's (HBM) operations in Manitoba?

The wildfires have forced evacuation in Flin Flon, leading to temporarily reduced production at Snow Lake operations, suspension of exploration activities, and disruption of support services. However, the company maintains its 2025 guidance.

Will the Flin Flon wildfires impact Hudbay's (HBM) 2025 guidance?

Despite the temporary disruptions, Hudbay expects to achieve its 2025 guidance metrics due to strong year-to-date performance in Snow Lake operations.

What measures is Hudbay (HBM) taking to support employees during the Flin Flon wildfire evacuation?

Hudbay is securing additional accommodations in Snow Lake for evacuated employees and families, deploying emergency personnel for firefighting, and providing resources and equipment to support emergency response efforts.

Are Hudbay's (HBM) Snow Lake operations still running during the Manitoba wildfires?

Yes, Snow Lake operations continue but at temporarily reduced production levels since many workers reside in the evacuated Flin Flon area, located 200km away.