Hudbay Resumes Snow Lake Operations Following Wildfire Evacuation Order

Rhea-AI Summary

Hudbay Minerals (TSX, NYSE: HBM) has resumed operations at its Snow Lake facilities following the lifting of evacuation orders on June 14, 2025. The company's infrastructure and facilities in Snow Lake and Flin Flon emerged unscathed from the wildfires. Mining activities at the Lalor mine have restarted, prioritizing gold zones. The New Britannia gold mill is expected to reach full production this week, while the Stall base metal concentrator will ramp up next week due to ongoing Flin Flon evacuations. Despite the disruption, Hudbay maintains its 2025 Manitoba guidance. The company has committed over $2 million in support, including $1.6 million for evacuated employees and $500,000 to the Canadian Red Cross. Additional measures include establishing a Community Relief Donations Fund with 2:1 matching, securing accommodations for evacuees, and deploying firefighters to assist in emergency response efforts.

Positive

• No structural damage to infrastructure and facilities in Snow Lake and Flin Flon
• Company maintains its 2025 annual guidance metrics for Manitoba despite disruption
• Swift resumption of mining activities at Lalor mine and expected quick ramp-up of mill operations
• Strong financial support commitment of over $2 million for affected employees and communities

Negative

• Ongoing Flin Flon regional evacuations affecting workforce availability
• Temporary disruption to normal operations and production schedules
• Stall base metal concentrator facing delayed return to full production

Insights

Mining Operations Specialist

Hudbay's swift operational recovery after wildfire evacuations with no infrastructure damage keeps 2025 guidance intact despite temporary disruption.

The resumption of Hudbay's Snow Lake operations following wildfire evacuation orders represents a significant operational recovery with minimal business impact. Despite the emergency, the company reports no structural damage to its infrastructure in Snow Lake and Flin Flon - a critical outcome that avoids potential capital expenditures and extended downtime that would have otherwise impacted production forecasts.

The company has implemented a strategic restart sequence, prioritizing gold zones at the Lalor mine with the New Britannia gold mill expected to reach full production this week, followed by the Stall base metal concentrator next week. This phased approach maximizes early cash flow from higher-margin gold production while managing workforce constraints from ongoing Flin Flon evacuations.

Most importantly for investors, Hudbay confirms it continues to expect achievement of its annual guidance metrics for Manitoba operations in 2025, indicating the disruption will not materially impact yearly production targets. This suggests the company had either built sufficient operational flexibility into its production schedule or had strong year-to-date performance before the wildfire disruption.

The $2+ million in community support funding, while representing good corporate citizenship, is relatively modest compared to Hudbay's overall financial position and unlikely to materially impact financial results. The company's emergency preparedness appears to have effectively protected assets while maintaining the capability to resume operations promptly after evacuation orders lifted.

TORONTO, June 16, 2025 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) has resumed operations in Snow Lake following the lifting of evacuation orders in the Snow Lake region on June 14, 2025. The Company continues to collaborate closely with local communities and municipal and provincial authorities to provide support to its employees, their families and neighbours as they navigate their return.

Through the Company’s emergency preparedness and extensive community response efforts, there has been no structural damage to Hudbay’s infrastructure and facilities in Snow Lake and Flin Flon as a result of the wildfires. Hudbay resumed mining activities at the Lalor mine over the weekend with a focus on initially prioritizing the gold zones. Milling activities at the New Britannia gold mill are expected to ramp up to full production this week, while milling activities at the Stall base metal concentrator are expected to ramp up to full production next week as the workforce continues to be impacted by the Flin Flon regional evacuations that are still in place. Given the strong year-to-date performance in Snow Lake, the Company continues to expect to achieve its annual guidance metrics for Manitoba in 2025.

“We remain committed to supporting our Manitoba team and recognize the significant impact this crisis has had on our employees, their families and neighbours, and local First Nations,” said Rob Carter, Hudbay’s Senior Vice President, Canada. “Thank you to the essential personnel who remained behind, our employees who were part of the volunteer firefighting efforts, and all the first responders who have been working tirelessly these last several weeks. We look forward to working with local and provincial authorities on the rebuilding efforts to help our communities move ahead.”

Throughout the wildfire evacuation orders, Hudbay has taken the following actions to support Manitoba and the communities near its operations:

• Doubling its prior commitment to more than $2 million in support funding, including $1.6 million in direct financial support for evacuated Hudbay employees and a $500,000 corporate donation to the Canadian Red Cross to provide critical support to those displaced by wildfires in Manitoba and Saskatchewan.
• Established a Community Relief Donations Fund, where Hudbay will donate $2 for every $1 donated by its employees across the Company, tripling the impact of employee donations.
• Securing accommodations for evacuated employees and their families.
• Deploying external firefighters to aid in emergency response firefighting efforts.
• Executing safeguarding plans to protect Hudbay assets.
• Maintaining communication with the local communities and provincial authorities about the resources Hudbay has available to assist emergency response efforts, such as supplies, equipment and accommodations.

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 expectations for the return to normal operations at the Lalor mine and the New Britannia and Stall mills and the ability to achieve annual 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, assumptions related to the return to normal operations, the ramp-up of production and the ability to achieve annual guidance 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

When did Hudbay Minerals (HBM) resume operations at Snow Lake after the wildfire evacuation?

Hudbay resumed operations following the lifting of evacuation orders on June 14, 2025, with mining activities at the Lalor mine restarting over the weekend.

How much financial support has Hudbay (HBM) committed for wildfire relief efforts?

Hudbay has committed over $2 million, including $1.6 million for evacuated employees and $500,000 to the Canadian Red Cross, plus a 2:1 matching employee donation program.

Will the wildfire disruption affect Hudbay's (HBM) 2025 guidance for Manitoba operations?

No, despite the disruption, Hudbay expects to achieve its annual guidance metrics for Manitoba in 2025 due to strong year-to-date performance.

What is the status of Hudbay's (HBM) mill operations after the wildfire evacuation?

The New Britannia gold mill is expected to reach full production this week, while the Stall base metal concentrator will ramp up to full production next week due to ongoing Flin Flon evacuations.

Was there any damage to Hudbay's (HBM) facilities from the wildfires?

No, there was no structural damage to Hudbay's infrastructure and facilities in Snow Lake and Flin Flon as a result of the wildfires.