Hudbay Minerals Q3 2026 net income falls to $151M

Q: What were HBM's revenue and net income in the third quarter of 2026?

Hudbay reported third-quarter revenue of $765.9 million and net income of $151.0 million for the three months ended September 30, 2026. In the comparable 2025 quarter, revenue was $346.8 million and net income was $222.4 million.

Q: What did former Arizona Sonoran shareholders receive in HBM's acquisition?

Hudbay issued 46,794,082 common shares as consideration for ASCU shares it did not already own. Former ASCU shareholders received 0.242 Hudbay common share for each ASCU common share held immediately before the arrangement became effective on June 24, 2026.

Q: How was Mitsubishi's Copper World cash consideration treated?

Hudbay recorded $422.7 million of cash consideration received at closing. The cash from the Copper World transaction is designated for Copper World's exclusive use and is not available for general use by the Hudbay consolidated group.

Available on EDGAR 11/13/2026 - 12:31 PM EST Accepted by SEC EDGAR 11/13/2026 - 12:30 PM EST

Filing Impact

(Moderate)

Filing Sentiment

(Negative)How Sentiment works

Sentiment and the balance of points

Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.

How Sentiment works How the balance works

Form Type

6-K

Rhea-AI Filing Summary

Hudbay Minerals Inc. (HBM) reported third-quarter 2026 revenue of $765.9 million, compared with $346.8 million a year earlier, while net income was $151.0 million, versus $222.4 million. Earnings per share were $0.34, compared with $0.56. For the nine months, revenue was $2,154.5 million versus $1,478.1 million and net income was $480.6 million versus $436.3 million.

Cash generated from operating activities in the quarter was $214.9 million, compared with $113.5 million. Cash and cash equivalents were $788.7 million at September 30, 2026, including $290.1 million held at Copper World for its exclusive use. Long-term debt was $838.7 million; Hudbay repaid $472.5 million of 2026 notes at maturity using cash on hand and a $272.0 million revolving-credit draw.

Hudbay completed its Arizona Sonoran acquisition on June 24, 2026, issuing 46,794,082 common shares and obtaining control of ASCU and its Cactus project. Mitsubishi completed a 30% Copper World investment, with $422.7 million cash consideration received and $169.8 million deferred consideration receivable, which will accrete up to $180 million over 18 months. Copper World transaction cash is designated for Copper World's exclusive use, not general use by Hudbay's consolidated group.

2 points · 0 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance works How Sentiment works

0 major · 1 point

How the balance works

Positive

Moderate pointThird-quarter revenue reached $765.9 million, versus $346.8 million a year earlier.
Moderate pointNine-month net income increased to $480.6 million from $436.3 million.

Negative

Moderate pointThird-quarter net income was $151.0 million, versus $222.4 million a year earlier.

Filing Explained

Hudbay reports $199.6 million in outstanding Arizona capital commitments as of September 30, 2026; $197.4 million can be terminated, so the full listed total is not irrevocably committed spending.

Key Figures

Revenue: $765.9 million Net income: $151.0 million Earnings per share: $0.34 +5 more

8 metrics

Revenue $765.9 million Three months ended September 30, 2026; $346.8 million in the comparable 2025 period.

Net income $151.0 million Three months ended September 30, 2026; $222.4 million in the comparable 2025 period.

Earnings per share $0.34 Basic and diluted, three months ended September 30, 2026; $0.56 in the comparable 2025 period.

Cash generated from operating activities $214.9 million Three months ended September 30, 2026; $113.5 million in the comparable 2025 period.

Cash and cash equivalents $788.7 million As of September 30, 2026; includes $290.1 million held at Copper World for its exclusive use.

Long-term debt $838.7 million As of September 30, 2026.

Shares issued for Arizona Sonoran acquisition 46,794,082 common shares Issued as consideration in the acquisition completed June 24, 2026.

Copper World cash consideration $422.7 million Cash consideration received at closing of Mitsubishi's 30% investment; designated for Copper World's exclusive use.

Key Terms

asset acquisition, non-controlling interest, deferred consideration receivable, streaming arrangement, +2 more

6 terms

asset acquisition financial

"accounted for the ASCU Transaction as an asset acquisition"

An asset acquisition is when a company buys specific pieces of another business—such as equipment, buildings, patents, customer lists, or inventory—rather than buying the other company’s stock. For investors, it matters because this lets a buyer add value or cut costs without taking on unwanted liabilities, similar to shopping for and installing only the useful appliances in a house instead of buying the whole property; the move can change future revenue, costs and risk.

non-controlling interest financial

"recognition of a non-controlling interest"

Non-controlling interest represents the portion of ownership in a company held by investors who do not have a controlling stake, meaning they do not have enough voting power to make major decisions. It is similar to owning a minority share of a business partner’s company—while they benefit from profits, they cannot control how the company is run. This matters to investors because it shows how much of the company's value is owned by outside shareholders and affects overall financial reporting.

deferred consideration receivable financial

"The deferred consideration of $169.8 million will be accreted up to $180 million"

streaming arrangement financial

"Non-cash streaming arrangement items"

provisionally priced receivables financial

"Changes in fair value of provisionally priced receivables"

fair value hierarchy financial

"Fair value hierarchy"

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were HBM's revenue and net income in the third quarter of 2026?

Hudbay reported third-quarter revenue of $765.9 million and net income of $151.0 million for the three months ended September 30, 2026. In the comparable 2025 quarter, revenue was $346.8 million and net income was $222.4 million.

What did former Arizona Sonoran shareholders receive in HBM's acquisition?

Hudbay issued 46,794,082 common shares as consideration for ASCU shares it did not already own. Former ASCU shareholders received 0.242 Hudbay common share for each ASCU common share held immediately before the arrangement became effective on June 24, 2026.

How was Mitsubishi's Copper World cash consideration treated?

Hudbay recorded $422.7 million of cash consideration received at closing. The cash from the Copper World transaction is designated for Copper World's exclusive use and is not available for general use by the Hudbay consolidated group.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2026

Commission File Number: 001-34244

HUDBAY MINERALS INC.
(Translation of registrant’s name into English)

25 York Street, Suite 800
Toronto, Ontario
M5J 2V5, Canada
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [ ] Form 40-F [X]

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [ ] No [X]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____________________________

EXPLANATORY NOTE

On November 12, 2026, Hudbay Minerals Inc. (“Hudbay”) filed on the Canadian Securities Administrators’ System for Electronic Data Analysis and Retrieval + (SEDAR+) website at www.sedarplus.ca the following documents: (1) Unaudited Condensed Consolidated Interim Financial Statements for the period ended September 30, 2026, (2) Management's Discussion and Analysis for the period ended September 30, 2026, (3) News Release dated November 12, 2026, (4) Form 52-109F2 - Certification of Interim Filings - CEO, (5) Form 52-109F2 - Certification of Interim Filings - CFO.

Copies of the filings are attached to this Form 6-K and incorporated herein by reference, as follows:

Exhibit 99.1 — Unaudited Condensed Consolidated Interim Financial Statements for the period ended September 30, 2026
Exhibit 99.2 — Management's Discussion and Analysis for the period ended September 30, 2026
Exhibit 99.3 — News Release dated November 12, 2026
Exhibit 99.4 — Form 52-109F2 - Certification of Interim Filings - CEO
Exhibit 99.5 — Form 52-109F2 - Certification of Interim Filings - CFO

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	HUDBAY MINERALS INC.
	(registrant)

	By:	/s/ Eugene Lei
	Name:	Eugene Lei
	Title:	President and Chief Financial Officer

Date: November 13, 2026

EXHIBIT INDEX

The following exhibits are furnished as part of this Form 6-K:

Exhibit		Description

99.1		Unaudited Condensed Consolidated Interim Financial Statements for the period ended September 30, 2026
99.2		Management's Discussion and Analysis for the period ended September 30, 2026
99.3		News Release dated November 12, 2026
99.4		Form 52-109F2 - Certification of Interim Filings - CEO
99.5		Form 52-109F2 - Certification of Interim Filings - CFO

Unaudited Condensed Consolidated Interim Financial Statements
(In US dollars)

HUDBAY MINERALS INC.

For the three and nine months ended September 30, 2026 and 2025

HUDBAY MINERALS INC.
Condensed Consolidated Interim Balance Sheets
(Unaudited and in millions of US dollars)

			Sep. 30,		Dec. 31,
	Note		2026		2025
Assets
Current assets
Cash and cash equivalents	9	$	788.7	$	568.9
Trade and other receivables	10		566.3		377.8
Inventories	11		193.4		199.2
Prepaid expenses and other current assets			13.0		15.2
Other financial assets	12		50.7		0.8
Taxes receivable			-		1.2
			1,612.1		1,163.1
Receivables	10		15.7		16.1
Inventories	11		45.3		21.6
Other financial assets	12		221.1		130.9
Intangibles and other assets	13		34.9		58.6
Property, plant and equipment	14		6,359.1		4,693.9
Deferred tax assets			2.5		66.5
Goodwill	15		70.2		72.6
		$	8,360.9	$	6,223.3
Liabilities
Current liabilities
Trade and other payables		$	423.2	$	342.8
Taxes payable			91.9		117.4
Other liabilities	16		83.4		94.7
Other financial liabilities	17		114.9		122.9
Lease liabilities	18		24.7		26.7
Current portion of long-term debt	19		-		472.1
Deferred revenue	20		28.9		52.1
			767.0		1,228.7
Other financial liabilities	17		283.9		155.0
Lease liabilities	18		26.8		29.3
Long-term debt	19		838.7		536.5
Deferred revenue	20		262.4		265.0
Pension obligations			3.2		7.5
Other employee benefits			77.2		82.4
Environmental and other provisions	21		312.9		312.6
Deferred tax liabilities			374.3		375.3
			2,946.4		2,992.3
Equity
Share capital	23b		3,808.5		2,668.2
Reserves			212.2		102.3
Retained earnings			928.9		460.5
Equity attributable to owners of the Company			4,949.6		3,231.0
Non-controlling interest	6		464.9		-
		$	8,360.9	$	6,223.3
Commitments (note 26)

HUDBAY MINERALS INC.
Condensed Consolidated Interim Statements of Income
(Unaudited and in millions of US dollars, except per share amounts)

			Three months ended September 30,						Nine months ended September 30,
			2026			2025			2026			2025
						Note 3						Note 3
Revenue	8a	$	765.9		$	346.8		$	2,154.5		$	1,478.1
Cost of sales
Mine operating costs			317.7			198.8			880.6			717.8
Depreciation and amortization	8b		102.0			82.7			290.7			287.2
			419.7			281.5			1,171.3			1,005.0
Gross profit			346.2			65.3			983.2			473.1
Selling and administrative expenses			11.9			13.4			36.6			35.0
Share-based compensation expenses			21.8			18.4			52.4			31.6
Exploration expenses			13.1			10.5			48.5			33.8
Evaluation expenses			13.4			1.2			25.5			2.7
Other operating expenses	8c		12.5			7.5			14.2			17.9
Re-evaluation adjustment - environmental provision	21		(11.8	)		1.4			(4.2	)		0.4
Impairment reversal	8d		-			(322.3	)		-			(322.3	)
Results from operating activities			285.3			335.2			810.2			674.0
Consideration received from sale of non-core project	8e		(0.9	)		(14.9	)		(0.9	)		(14.9	)
Interest expense on long term debt	8f		12.9			14.8			40.6			46.3
Accretion on streaming arrangements	8f		4.5			5.1			13.5			14.7
Change in fair value of financial instruments	8f		(16.1	)		(11.4	)		(127.7	)		(20.7	)
Other net finance (income) expense	8f		(5.3	)		11.1			15.1			(6.3	)
Other (income) expenses			(4.9	)		4.7			(59.4	)		19.1
Income before tax			290.2			330.5			869.6			654.9
Tax expense	22		139.2			108.1			389.0			218.6
Net income for the period		$	151.0		$	222.4		$	480.6		$	436.3

Attributable to:
Owners of the Company		$	149.5		$	222.4		$	477.3		$	440.5
Non-controlling interest			1.5			-			3.3			(4.2	)
Net income for the period		$	151.0		$	222.4		$	480.6		$	436.3

Earnings per share attributable to owners
Basic and diluted		$	0.34		$	0.56		$	1.20		$	1.11

Weighted average number of common shares outstanding:
Basic	24		444,147,773			395,726,407			397,731,781			395,256,972
Diluted	24		445,758,383			396,886,622			399,409,344			396,159,648

HUDBAY MINERALS INC.
Condensed Consolidated Interim Statements of Comprehensive Income
(Unaudited and in millions of US dollars)

		Three months ended September 30,						Nine months ended September 30,
		2026			2025			2026			2025
Net income for the period	$	151.0		$	222.4		$	480.6		$	436.3

Other comprehensive income:
Item that will be reclassified subsequently to profit or loss:
Recognized directly in equity:
Net (loss) gain on translation of foreign currency balances		(1.2	)		(9.6	)		(19.7	)		17.2

Items that will not be reclassified subsequently to profit or loss:
Recognized directly in equity:
Remeasurement - actuarial gain		6.7			2.1			10.4			4.6
Tax effect		(0.2	)		(0.4	)		(1.2	)		(0.5	)
		6.5			1.7			9.2			4.1

Other comprehensive gain (loss) net of tax, for the period		5.3			(7.9	)		(10.5	)		21.3
Total comprehensive income for the period	$	156.3		$	214.5		$	470.1		$	457.6

Attributable to:
Owners of the Company	$	154.8		$	214.5			466.8			458.6
Non-controlling interest		1.5			-			3.3			(1.0	)

Total comprehensive income for the period	$	156.3			214.5		$	470.1		$	457.6

HUDBAY MINERALS INC.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited and in millions of US dollars)

			Three months ended September 30,						Nine months ended September 30,
	Note		2026			2025			2026			2025
Cash generated from operating activities:
Net income for the period		$	151.0		$	222.4		$	480.6		$	436.3
Items not affecting cash:
Tax expense	22		139.2			108.1			389.0			218.6
Depreciation and amortization	8b		102.3			83.0			292.4			288.3
Share-based compensation			22.8			20.1			57.5			34.9
Net finance (income) expense	8f		(4.0	)		19.6			(58.5	)		34.0
Inventory adjustments	11		-			(1.3	)		0.9			3.4
Amortization of deferred revenue and variable consideration	8a		(10.3	)		(6.3	)		(39.3	)		(51.0	)
Pension and other employee benefit payments, net of accruals			1.1			0.9			4.8			5.0
Amortization of community agreements			3.7			3.6			13.7			8.6
Re-evaluation adjustment - environmental obligation	21		(11.8	)		1.4			(4.2	)		0.4
Write-down/loss on disposal of PP&E	8c		3.9			(0.3	)		5.4			0.6
Impairment reversal	8d		-			(322.3	)		-			(322.3	)
Decommissioning and restoration payments			(7.6	)		(0.5	)		(14.3	)		(1.0	)
Other	27a		(0.9	)		(14.1	)		(57.0	)		(23.0	)
Taxes paid			(75.5	)		(44.0	)		(338.3	)		(205.4	)
Operating cash flow before change in non-cash working capital			313.9			70.3			732.7			427.4
Change in non-cash working capital	27b		(99.0	)		43.2			(9.5	)		70.5
			214.9			113.5			723.2			497.9
Cash used in investing activities:
Acquisition of property, plant and equipment			(216.5	)		(110.4	)		(509.6	)		(323.5	)
Acquisition of intangibles			(1.0	)		(0.2	)		(1.9	)		(2.6	)
Community agreements			(4.5	)		(0.9	)		(21.2	)		(9.9	)
Grants received			-			0.7			0.3			0.7
Cash and cash equivalents (paid) acquired in acquisitions, net of transaction and closing costs	5		(6.5	)		-			5.4			-
Net purchase of investments	12		(45.0	)		(5.5	)		(83.7	)		(19.3	)
Proceeds from disposition of property, plant and equipment			-			-			-			0.1
Change in restricted cash			-			-			-			0.8
Maturity of short-term investments			-			-			-			40.0
Consideration received from sale of non-core project	8e		0.9			10.4			0.9			10.4
Investment income received			9.7			6.0			25.8			18.5
			(262.9	)		(99.9	)		(584.0	)		(284.8	)
Cash (used in) generated from financing activities:
Proceeds from drawdown on revolving credit facility	19b		-			-			272.0			-
Repayment of revolving credit facility	19b		(22.0	)		-			(22.0	)		-
Repurchase of senior unsecured notes, net of discount	19a		-			(13.2	)		(472.5	)		(62.9	)
Release of restricted cash related to municipal bond financing	12		-			-			1.0			-
Repayment of deferred Copper Mountain acquisition consideration			-			-			(3.0	)		-
Copper Mountain non-controlling interest - acquisition payment	7		-			-			-			(6.0	)
Equity issuance, net of transaction and share issuance costs	23b		-			6.9			-			11.1
Interest paid on long-term debt			(4.2	)		(0.3	)		(34.2	)		(30.2	)
Financing costs			(3.2	)		(3.8	)		(9.1	)		(9.9	)
Lease payments	18		(7.7	)		(9.4	)		(26.1	)		(27.8	)
Equipment financing payments			(7.8	)		(4.6	)		(21.9	)		(13.5	)
Deferred land payments			(5.0	)		-			(5.0	)		-
Net payments on settlement of non-QP hedges			(0.7	)		-			(0.7	)		(3.4	)
Net proceeds from exercise of stock options and warrants			-			0.9			3.0			2.5
Proceeds from sale of Copper World non-controlling interest, net of transaction costs	6		-			-			411.7			-
Dividends paid	23b		(3.2	)		(2.8	)		(8.9	)		(5.6	)
			(53.8	)		(26.3	)		84.3			(145.7	)
Effect of movement in exchange rates on cash			(0.4	)		(1.7	)		(3.7	)		1.9
Net (decrease) increase in cash and cash equivalents			(102.2	)		(14.4	)		219.8			69.3
Cash and cash equivalents, beginning of the period			890.9			625.5			568.9			541.8
Cash and cash equivalents, end of the period		$	788.7		$	611.1		$	788.7		$	611.1

HUDBAY MINERALS INC.
Condensed Consolidated Interim Statements of Changes in Equity
(Unaudited and in millions of US dollars)

		Share capital (note 23)		Other capital reserves			Foreign currency translation reserve			Remeasurement reserve		Retained earnings			Total			Non- controlling interest			Total equity
Balance, January 1, 2025	$	2,641.3	$	61.5		$	(48.4	)	$	1.2	$	(102.4	)	$	2,553.2		$	94.2		$	2,647.4
Net income (loss)		-		-			-			-		440.5			440.5			(4.2	)		436.3
Other comprehensive income		-		-			14.0			4.1		-			18.1			3.2			21.3
Total comprehensive income (loss)		-		-			14.0			4.1		440.5			458.6			(1.0	)		457.6

Contributions by and distributions to owners:
Dividends (note 23b)		-		-			-			-		(5.6	)		(5.6	)		-			(5.6	)
Flow-through shares issued, net of share issuance costs (note 23b)		4.1		-			-			-		-			4.1			-			4.1
Share issued on equity raise, net of share issuance costs		4.2		-			-			-		-			4.2			-			4.2
Copper Mountain non-controlling interest acquisition (note 7)		-		61.3			(4.0	)		-		-			57.3			(93.2	)		(35.9	)
Stock options		-		1.8			-			-		-			1.8			-			1.8
Issuance of shares related to stock options and warrants exercised		3.8		(1.3	)		-			-		-			2.5			-			2.5
Tax adjustments in respect of prior years		4.4		-			-			-		-			4.4			-			4.4
Total contributions by and distributions to owners		16.5		61.8			(4.0	)		-		(5.6	)		68.7			(93.2	)		(24.5	)
Balance, September 30, 2025		2,657.8		123.3			(38.4	)		5.3		332.5			3,080.5			-			3,080.5
Net income		-		-			-			-		128.0			128.0			-			128.0
Other comprehensive income		-		-			8.5			3.1		-			11.6			-			11.6
Total comprehensive income		-		-			8.5			3.1		128.0			139.6			-			139.6

Contributions by and distributions to owners:
Flow-through shares issued, net of share issuance costs (note 23b)		9.6		-			-			-		-			9.6			-			9.6
Stock options		-		0.7			-			-		-			0.7			-			0.7
Issuance of shares related to stock options and warrants exercised		0.8		(0.2	)		-			-		-			0.6			-			0.6
Total contributions by and distributions to owners		10.4		0.5			-			-		-			10.9			-			10.9
Balance, December 31, 2025	$	2,668.2	$	123.8		$	(29.9	)	$	8.4	$	460.5		$	3,231.0			-		$	3,231.0

HUDBAY MINERALS INC.
Condensed Consolidated Interim Statements of Changes in Equity
(Unaudited and in millions of US dollars)

		Share capital (note 23)		Other capital reserves			Foreign currency translation reserve			Remeasurement reserve		Retained earnings			Total			Non- controlling interest		Total equity
Balance, January 1, 2026	$	2,668.2	$	123.8		$	(29.9	)	$	8.4	$	460.5		$	3,231.0		$	-	$	3,231.0
Net income		-		-			-			-		477.3			477.3			3.3		480.6
Other comprehensive (loss) income		-		-			(19.7	)		9.2		-			(10.5	)		-		(10.5	)
Total comprehensive (loss) income		-		-			(19.7	)		9.2		477.3			466.8			3.3		470.1

Contributions by and distributions to owners:
Dividends (note 23b)		-		-			-			-		(8.9	)		(8.9	)		-		(8.9	)
Copper World non-controlling interest capital contribution, net of transaction costs (note 6)		-		119.9			-			-		-			119.9			461.6		581.5
Shares issued on acquisition of Arizona Sonoran (note 5)		1,135.6		-			-			-		-			1,135.6			-		1,135.6
Stock options		-		2.1			-			-		-			2.1			-		2.1
Issuance of shares related to stock options and warrants exercised		4.7		(1.6	)		-			-		-			3.1			-		3.1
Total contributions by and distributions to owners		1,140.3		120.4			-			-		(8.9	)		1,251.8			461.6		1,713.4
Balance, September 30, 2026	$	3,808.5	$	244.2		$	(49.6	)	$	17.6	$	928.9		$	4,949.6		$	464.9	$	5,414.5

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in millions of US dollars, except where otherwise noted)
For the three and nine months ended, September 30, 2026 and 2025

1. Reporting entity

Hudbay Minerals Inc. ("HMI" or the "Company") is a company existing under the Canada Business Corporations Act. The address of the Company's principal executive office is 25 York Street, Suite 800, Toronto, Ontario. The unaudited condensed consolidated interim financial statements ("interim financial statements") of the Company for the three and nine months ended September 30, 2026 and 2025 represent the financial position and the financial performance of the Company and its subsidiaries (together referred to as "Hudbay").

Wholly owned subsidiaries as at September 30, 2026 included, without limitation, Copper Mountain Mine (BC) Ltd. ("CMBC"), HudBay Peru Inc., HudBay Peru S.A.C. ("Hudbay Peru"), HudBay (BVI) Inc., and Hudbay Arizona ULC. Hudbay Arizona ULC indirectly owns (i) Mason Resources (US) Inc. ("Mason"), Arizona Sonoran Copper Company (USA) Inc. ("Cactus"), and (ii) 70% of Copper World LLC ("Copper World"), the entity that owns the Copper World project. Mitsubishi Corporation ("Mitsubishi"), an arms length party, owns the remaining 30% interest in Copper World.

Hudbay is a diversified mining company with long-life assets in North and South America. Hudbay's operations in Cusco (Peru) produce copper with gold, silver and molybdenum by-products. Hudbay's operations in Manitoba (Canada) produce gold with copper, zinc and silver by-products. Hudbay's operations in British Columbia (Canada) produce copper with gold and silver by-products. Hudbay has a development pipeline that includes copper development projects in Arizona and Nevada (United States), and a focused growth strategy on exploration, development, operation, and optimization of properties that Hudbay already controls, as well as other mineral assets that Hudbay may acquire that fit the Company's strategic criteria. The Company's common shares are listed under the symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima.

2. Basis of preparation

(a) Statement of compliance:

These interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and do not include all of the information required for annual financial statements prepared in accordance with IFRS^® Accounting Standards as issued by the IASB.

These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2025 which includes information necessary or useful to understanding the Company's business and financial statement presentation. In particular, the Company's material accounting policies are presented in note 3 in the Company's audited consolidated financial statements for the year ended December 31, 2025 and have been consistently applied in the preparation of these interim financial statements, except as noted below.

Deferred consideration receivable from the sale of non-controlling interest

Deferred consideration receivables arising from the sale of non-controlling interest are initially recognized as a financial asset at their fair value on the date the obligation arises. The fair value is determined by discounting the expected cash inflows to its present value using a company credit adjusted discount rate that reflects current market assessments of the time value of money and the risks specific to the company. The deferred consideration will be classified as a financial asset at amortized cost, with subsequent remeasurements recognized in profit or loss. Additionally, the asset will then be accreted and amortized until the maturity date, with the accretion expense flowing through profit or loss (note 6).

The Board of Directors approved these interim financial statements on November 11, 2026.

(b) Use of judgements and estimates:

The preparation of the interim financial statements in conformity with IFRS Accounting Standards requires Hudbay to make judgements, estimates and assumptions, in applying accounting policies that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim financial statements, as well as reported amounts of revenue and expenses during the reporting period. Actual results may differ from these judgements, estimates and assumptions. The interim financial statements reflect the judgements and estimates outlined by Hudbay in its audited consolidated financial statements for the year ended December 31, 2025, except as noted below.

- Valuation of assets in an asset acquisition (note 5) - As the Company acquired Arizona Sonoran Copper Company Inc. ("ASCU") through the issuance of the Company's common shares and the Company concluded that the acquisition of ASCU is an asset acquisition, a valuation was required to the fair value of the net assets acquired. The fair values of the net assets acquired were calculated using significant estimates and judgements. In particular, the fair value of the exploration property has been determined using an independent valuation involving discounted cash flow calculations. Such calculations and models were required to estimate, amongst other items, future production, future commodity prices, operating and capital input costs, discount rates and currency rates.

3. Reclassification of comparative amounts

Certain prior period amounts have been reclassified for consistency with the current period presentation. Share-based compensation expenses has been reclassified to its own financial statement line item within the condensed consolidated interim income statement due to the size of the balance. The balance was previously included in Selling and administrative expenses as well as Other operating expenses. Evaluation expenses has been reclassified to its own financial statement line item within the condensed consolidated interim income statement due to an increase in the balance. The balance was previously included in Other operating expenses. These reclassifications had no effect on the previously reported net income.

4. New standards

New standards and interpretations adopted

(a) Amendments to IFRS 9 - Financial Instruments and IFRS 7 - Financial Instruments: Disclosures

In May 2024, the IASB issued amendments to IFRS 9 and 7 to clarify the recognition or derecognition of a financial asset or liability, with a new exception for some financial liabilities settled through an electronic cash transfer system. The amendments also add guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion, by introducing an additional SPPI test for financial assets with contingent features that are not related directly to a change in basic lending risks or costs. In addition, the amendments will add new disclosures for certain instruments with contractual terms that can change cash flows. Lastly, the amendments will require additional disclosures for equity instruments designated at fair value through other comprehensive income. The amendments are effective for reporting periods beginning on or after January 1, 2026, with early application permitted. The amendments have been adopted by the Company and the amendments did not result in any material changes to the condensed consolidated financial statements.

In December 2024, the IASB issued amendments to IFRS 9 and 7 to clarify the application of the 'own-use' exemption and provide guidance on hedge accounting for companies that hedge their purchase or sales of electricity using renewable power purchase agreements. The amendments also introduce new disclosure requirements. The amendments are effective for reporting periods beginning on or after January 1, 2026. The amendments have been adopted by the Company and the amendments did not result in any material changes to the condensed consolidated financial statements.

New standards issued but not yet effective

(a) IFRS 18 - Presentation and Disclosure in Financial Statements

In April 2024, the IASB released IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 will replace IAS 1 Presentation of Financial Statements. The standard amends the presentation of the statement of income by introducing a newly defined 'operating profit' subtotal and a requirement for income and expenses to be allocated between three new distinct categories based on a company's main business activities, which are Operating, Financing and Investing. In addition, organizations will need to disclose certain performance measures known as management-defined performance measures ("MPMs"). The standard will be effective from January 1, 2027 with early adoption permitted and requires retrospective application.

The Company is assessing the impact of adoption of this amendment on its condensed consolidated financial statements. Based on the Company's preliminary assessment, the following are the expected impacts upon initial application of IFRS 18:

- In the consolidated statements of income, all income and expenses will be grouped into new categories resulting in new subtotals and/or line items being presented and changes in how certain existing subtotals are calculated. In the consolidated statements of cash flows, operating profit will be used as the starting point for determining cash flows from operating activities, rather than net income.

- In the notes to the consolidated financial statements, the Company will be required to provide disclosures for MPMs. MPMs are subtotals of income and expenses that are not specified by IFRS Accounting Standards and are used in the public communications outside the financial statements to communicate management's view of an aspect of the Company's financial performance. Based on preliminary assessments, the Company has identified adjusted net earnings (loss) attributable to owners, adjusted EBITDA and consolidated cash cost, net of by-product credits as MPMs. The assessment for other potential MPMs is currently in progress.

5. Acquisition of Arizona Sonoran

On June 24, 2026, Hudbay acquired all the issued and outstanding common shares of ASCU not already owned by Hudbay by way of a court-approved plan of arrangement (the "ASCU Transaction"). Former ASCU shareholders (other than Hudbay) received 0.242 of a common share of Hudbay for each common share of ASCU held immediately prior to the effective time of the ASCU Transaction. In doing so, Hudbay obtained control of ASCU on June 24, 2026, and ASCU became a wholly owned subsidiary of Hudbay. Subsequent to the acquisition Hudbay undertook a reorganization of ASCU, resulting in Cactus now being a wholly owned subsidiary of Hudbay.

Management determined that substantially all of the fair value of the gross assets acquired is concentrated in the Cactus project and therefore accounted for the ASCU Transaction as an asset acquisition.

The aggregate number of common shares issued by Hudbay as consideration was 46,794,082 Hudbay common shares (note 23b). In addition, as of the effective time of the ASCU Transaction, 20,844,771 ASCU common shares were held by Hudbay with a value of $123.1 million. For an asset acquisition settled with equity, entities are required to record the net assets acquired based on the fair value of the assets received in exchange for the equity issued, unless fair value cannot be estimated reliably. Hudbay incurred acquisition related costs of $8.3 million during 2026, mainly related to external legal and advisory fees and due diligence costs, which were capitalized and included as cost of acquiring the net assets. During the nine months ended September 30, 2026, all of these costs have been paid in cash.

The fair value of net assets acquired was determined using a combination of income and cost methods. In particular, the fair values of Cactus project have been calculated using significant judgements and estimates. The following presents the fair value amount of identifiable assets acquired and liabilities assumed as at June 24, 2026:

Fair value of net assets acquired / (liabilities) assumed
Cash and cash equivalents	$	63.0
Receivables		0.4
Prepaid expenses and other		0.4
Exploration property		1,357.0
Accounts payable and accrued liabilities		(31.0	)
Other current liabilities		(20.0	)
Deferred land payments		(102.8	)
Total fair value of net identifiable assets acquired	$	1,267.0

During the period of June 24, 2026 to June 30, 2026, ASCU paid transaction and closing payments that amounted to $49.3 million. These transaction and closing payments were accrued for prior to the effective time of the ASCU Transaction.

6. Sale of non-controlling interest in Copper World

In January 2026, Hudbay closed its Copper World joint venture transaction with Mitsubishi, pursuant to which Mitsubishi completed its strategic investment for a 30% minority interest in Copper World, which owns the fully-permitted Copper World project in Arizona (the "JV Transaction"). On closing, Mitsubishi contributed approximately $420 million of cash to Copper World, and it will contribute an additional $180 million in cash to Copper World within 18 months of the closing date of the JV Transaction, in accordance with the terms of the definitive subscription agreement dated August 12, 2025. Following the completion of the JV Transaction, Hudbay retained a 70% controlling interest in Copper World and continues to consolidate Copper World. The JV Transaction was accounted for as an equity transaction resulting in the recognition of a non-controlling interest.

The Company recorded $581.5 million of total consideration for the JV Transaction which included the cash consideration of $422.7 million received on the closing date, $169.8 million of deferred consideration initially recorded as a long-term receivable and $11.0 million of transaction costs recorded within equity. The carrying value of the non-controlling interest was increased by $461.6 million to reflect the change in the proportionate share of Copper World's net assets.

As a result of the JV Transaction, the Company recorded an increase to equity as follows:


Cash consideration received	$	422.7
Deferred consideration receivable		169.8
Less: Carrying value of the non-controlling interest transferred		(461.6	)
Less: Transaction costs recorded in equity		(11.0	)
Surplus - recorded in equity	$	119.9

The deferred consideration of $169.8 million will be accreted up to $180 million over the 18 month period. For the three and nine months ended September 30, 2026, the Company recorded $1.7 million and $4.9 million, respectively, in accretion in long term receivable related to the deferred consideration within finance income (note 8f). The cash consideration received as part of the JV Transaction is designated for exclusive use by Copper World and is not available for general use by the Hudbay consolidated group.

7. Copper Mountain non-controlling interest acquisition

On April 30, 2025, Hudbay completed the acquisition of Mitsubishi Materials Corporation's ("MMC") 25% minority interest in CMBC (the "CMBC Transaction"). The cash consideration of the CMBC Transaction consisted of:

• $4.5 million on the closing date of the CMBC Transaction,

• $21.0 million in seven annual deferred payments of $3.0 million each, commencing on the 12-month anniversary of the closing date of the CMBC Transaction, and

• up to $18.75 million in five additional contingent payments of $3.75 million each, payable in the years following New Ingerbelle achieving certain minimum annual operating thresholds. MMC's right to the contingent payments concludes on the 15-year anniversary of the closing date of the CMBC Transaction.

As a result of the CMBC Transaction, Hudbay increased its ownership of the Copper Mountain mine from 75% to 100%. CMBC is now a wholly owned subsidiary of Hudbay.

The Company recorded $35.9 million of total consideration for the CMBC Transaction which included the cash payment of $4.5 million on the closing date, $16.6 million of deferred payments and $13.3 million of contingent consideration recorded as financial liability at amortized cost (note 17) and $1.5 million of transaction costs recorded within equity.

As a result of the CMBC Transaction, the Company recorded an increase to equity as follows:


Carrying value of non-controlling interest as at April 30, 2025	$	93.2
Transfer of net gain on translation of foreign currency balances		4.0
Less: total consideration		(35.9	)
Surplus - recorded in equity	$	61.3

8. Revenue and expenses

(a) Revenue

Hudbay's revenue by significant product types:

		Three months ended September 30,						Nine months ended September 30, 2026
		2026			2025			2026			2025
Copper	$	434.2		$	178.8		$	1,148.1		$	778.2
Gold		259.2			125.5			811.2			508.9
Zinc		19.9			9.6			41.4			31.0
Silver		18.8			9.1			85.3			37.3
Molybdenum		19.4			14.0			58.4			54.0
Other		0.4			-			5.4			(0.2	)
Revenue from contracts		751.9			337.0			2,149.8			1,409.2
Non-cash streaming arrangement items: ¹
Amortization of deferred revenue - gold		2.3			2.3			13.9			16.6
Amortization of deferred revenue - silver		8.0			4.0			25.5			24.5
Amortization of deferred revenue - variable consideration adjustments - prior periods		-			-			(0.1	)		9.9
		10.3			6.3			39.3			51.0
Pricing and volume adjustments ²		(5.7	)		8.8			(41.0	)		40.5
		756.5			352.1			2,148.1			1,500.7
Treatment and refining charges		9.4			(5.3	)		6.4			(22.6	)
	$	765.9		$	346.8		$	2,154.5		$	1,478.1

¹See note 20.
²Pricing and volume adjustments represent mark-to-market adjustments on initial estimate of provisionally priced sales, realized and unrealized changes to fair value of quotational pricing hedge derivative contracts and adjustments to originally invoiced weights and assays.

Consideration from the Company's stream agreements is considered variable (note 20). Gold and silver stream revenue can be subject to cumulative adjustments when the amount of precious metals to be delivered under the contract changes. As a result of changes in the Company's mineral reserve and resource estimate in the first quarter of 2026, the amortization rate by which deferred revenue is drawn down into income was adjusted and, as required, a variable consideration adjustment was made for all prior year stream revenues since the stream agreement inception date. This variable consideration adjustment for the nine months ended September 30, 2026 resulted in a decrease in revenue of $0.1 million (nine months ended September 30, 2025 - increase in revenue of $9.9 million).

(b) Depreciation and amortization

Depreciation of property, plant and equipment and amortization of intangible assets are reflected in the condensed consolidated interim statements of income as follows:

		Three months ended September 30,				Nine months ended September 30,
		2026		2025		2026		2025
Cost of sales	$	102.0	$	82.7	$	290.7	$	287.2
Selling and administrative expenses		0.3		0.3		1.7		1.1
	$	102.3	$	83.0	$	292.4	$	288.3

(c) Other operating expenses

		Three months ended September 30,						Nine months ended September 30,
		2026			2025			2026			2025
Regional costs	$	2.7		$	1.6		$	8.5		$	4.6
Write-down/loss on disposal of PP&E		3.9			(0.3	)		5.4			0.6
Amortization of community costs (other assets)		2.8			2.3			10.2			4.6
Restructuring		-			-			-			0.1
Wildfire repair costs		-			1.8			-			3.9
Care & maintenance - Manitoba		4.0			3.5			10.9			9.8
Insurance recovery		-			-			(11.5	)		-
Reduction of obligation to renounce flow-through share expenditures, net of provisions		(1.0	)		(0.8	)		(7.1	)		(3.9	)
Option agreement proceeds		(0.7	)		(1.1	)		(2.3	)		(3.6	)
Other		0.8			0.5			0.1			1.8
	$	12.5		$	7.5		$	14.2		$	17.9

The Flin Flon concentrator and tailings impoundment is on care and maintenance to provide optionality should another mineral discovery occur in the Flin Flon area. During the three and nine months ended September 30, 2026, care & maintenance costs were $4.0 million and $10.9 million, respectively (three and nine months ended September 30, 2025 - $3.5 million and $9.8 million, respectively).

During the nine months ended September 30, 2026, a recovery of $11.5 million was recorded to reflect business interruption insurance proceeds related to the wildfire evacuation and temporary suspension of operations at Manitoba. As of September 30, 2026, all of the proceeds related to this gain have been received.

During the three and nine months ended September 30, 2025, the Manitoba business unit incurred costs related to emergency and evacuation activities of $1.8 million and $3.9 million, respectively, as a result of regional wildfires in Snow Lake, Flin Flon and surrounding areas.

(d) Impairment reversal

		Three and nine months ended September 30, 2025
Pre-tax impairment reversal to:
Property, plant & equipment (note 14)	$	(322.3	)
Tax impact		79.6
After-tax impairment reversal	$	(242.7	)

On August 12, 2025, the Company entered into an agreement with Mitsubishi, pursuant to which Mitsubishi agreed to acquire a 30% interest in Copper World, a wholly-owned subsidiary of Hudbay which owns the fully-permitted Copper World Project in Arizona, which was completed in January 2026 (note 6).

The JV Transaction has been determined to be an indicator of impairment reversal for the Arizona cash generating unit ("CGU"). As a result, an assessment of the recoverable amount of the Arizona CGU was performed. The recoverable amount of the Arizona CGU exceeded the carrying amount of $784.4 million.

Based on this market evidence and updated assumptions, the Company recognized a $322.3 million pre-tax impairment reversal in the condensed consolidated interim statements of income during the three and nine months ended September 30, 2025. The reversal is limited to the amount of the previous impairment and does not increase the carrying amount above the level that would have been determined had no impairment been recognized previously.

(e) Consideration received from sale of non-core project

As part of a contingent consideration deed dated December 12, 2022, Harmony Gold (Australia) PTY Limited agreed to pay the Company a contingent amount upon the discovery of a new resource beyond certain parameters at the Eva project, which was previously sold by Copper Mountain prior to Hudbay's acquisition of Copper Mountain in June 2023. During the three and nine months ended September 30, 2026, a new applicable resource was discovered at the Eva project. As a result, the Company recognized the contingent payment received of $0.9 million as other income on the condensed consolidated interim statements of income (three and nine months ended September 30, 2025 - $14.9 million).

(f) Net finance (income) expense

		Three months ended September 30,						Nine months ended September 30,
		2026			2025			2026			2025
Interest expense on long-term debt
Interest expense on long-term debt	$	12.9		$	14.8		$	40.6		$	46.3
Accretion on streaming arrangements (note 20)
Additions		4.5			5.1			13.5			15.3
Variable consideration adjustments - prior periods		-			-			-			(0.6	)
		4.5			5.1			13.5			14.7
Change in fair value of financial instruments
Unrealized loss on non-quotational pricing hedges		4.7			-			5.2			-
Realized loss on non-quotational pricing hedges		1.2			-			1.3			2.3
Investments at fair value through profit or loss (note 12)		(22.0	)		(11.4	)		(134.2	)		(23.0	)
		(16.1	)		(11.4	)		(127.7	)		(20.7	)
Other net finance expense (income)
Net foreign exchange (gain) loss		(0.7	)		8.8			22.0			(13.2	)
Accretion on community agreements measured at amortized cost		-			1.3			2.8			4.0
Accretion on environmental provisions		3.3			2.9			9.3			8.3
Accretion on Wheaton refund liability		0.1			0.2			0.5			0.5
Accretion on deferred and contingent liability (note 17)		0.5			0.4			1.4			0.7
Accretion on deferred consideration receivable (note 6)		(1.7	)		-			(4.9	)		-
Interest on equipment financing and lease liabilities		2.2			2.3			6.6			6.9
Interest income		(9.8	)		(5.9	)		(25.7	)		(16.9	)
Other finance expense		0.8			1.1			3.1			3.4
		(5.3	)		11.1			15.1			(6.3	)
Net finance (income) expense	$	(4.0	)	$	19.6		$	(58.5	)	$	34.0

Other finance expense relates primarily to standby fees on Hudbay's revolving credit facilities.

9. Cash and cash equivalents

Cash and cash equivalents balances represent demand deposits and deposits with an original maturity date of less than three months. Cash and cash equivalents balance includes $290.1 million of cash held at Copper World, which is designated for exclusive use by Copper World and is not available for general use by the Hudbay consolidated group.

10. Trade and other receivables

		Sep. 30, 2026		Dec. 31, 2025
Current
Trade receivables	$	340.6	$	343.8
Statutory receivables		37.7		30.2
Current consideration receivable (note 6)		174.7		-
Other receivables		13.3		3.8
		566.3		377.8
Non-current
Taxes receivable		15.7		16.1
	$	582.0	$	393.9

11. Inventories

		Sep. 30, 2026		Dec. 31, 2025
Current
Stockpile	$	32.7	$	17.9
Finished goods		49.5		76.0
Materials and supplies		111.2		105.3
		193.4		199.2
Non-current
Stockpile		30.3		5.3
Low grade stockpile¹		5.5		5.7
Materials and supplies		9.5		10.6
		45.3		21.6
	$	238.7	$	220.8

¹Primarily all of the low grade stockpile inventory is expected to be processed at the end of the Copper Mountain mine life.

The cost of inventories recognized as an expense, including depreciation and included in cost of sales, amounted to $361.3 and $1,006.0 million, respectively, for the three and nine months ended September 30, 2026 (three and nine months ended September 30, 2025 - $224.7 million and $855.0 million, respectively).

During the three and nine months ended September 30, 2026, Hudbay recognized an expense of nil and $0.9 million in cost of sales related to the writedown of certain non-current inventory supplies (three and nine months ended September 30, 2025 - nil and $3.3 million, respectively).

During 2025, as a result of the Manitoba wildfires and the social unrest in Peru, both the Manitoba and Peru operations underwent a temporary suspension of operations. Due to a temporary suspension of operations, fixed overhead costs are recognized directly to cost of sales. Fixed overhead costs of $22.4 million and $25.6 million were incurred at Manitoba for the three and nine months ended September 30, 2025, respectively, which were recognized directly to cost of sales. Additionally, Peru incurred $10.9 million in fixed overhead costs for the three and nine months ended September 30, 2025, which were recognized directly to cost of sales.

During the three and nine months ended September 30, 2025, Hudbay recognized a recovery of $1.3 million and an expense of $0.1 million, respectively, in cost of sales primarily related to adjustments of the carrying value of copper concentrate inventory and stockpile inventory to net realizable value.

12. Other financial assets

		Sep. 30, 2026		Dec. 31, 2025
Current
Derivative assets	$	0.3	$	0.6
Restricted cash		50.4		0.2
		50.7		0.8

Non-current
Investments at fair value through profit or loss		221.1		130.9
	$	271.8	$	131.7

As at September 30, 2026, current financial assets include $50.1 million of restricted cash held in a project trust account managed by U.S. Bank Trust Company. These funds represent proceeds from the issuance of 4.50% Arizona Industrial Development Authority Solid Waste Disposal Revenue Bonds (Copper World project), Series 2026A (the "Municipal bonds") which are legally earmarked for qualifying solid waste disposal expenditures at the Copper World project (note 19c). The Municipal bonds were issued by the Arizona Industrial Development Authority and have an initial mandatory tender date of July 2, 2036. For the nine months ended September 30, 2026, $1.0 million was released from the Municipal bonds. The Company expects to draw upon these proceeds within the next twelve months, as a result, this balance has been classified as a current asset. These funds are not available for general operational or debt service use by other entities within the Hudbay consolidated group.

Investments at fair value through profit or loss primarily relate to common shares held in various mining companies. For the nine months ended September 30, 2026, the Company recorded additions of $84.3 million, unrealized mark-to-market gains of $134.2 million (note 8f), disposals of $0.6 million, unrealized foreign exchange losses of $4.6 million and cancellation of ASCU shares as part of an asset acquisition of $123.1 million (note 5).

13. Intangibles and other assets

Intangibles and other assets of $34.9 million (December 31, 2025 - $58.6 million) includes $26.8 million of other assets (December 31, 2025 - $51.5 million) and $8.1 million of intangibles (December 31, 2025 - $7.1 million).

Other assets include $26.8 million (December 31, 2025 - $42.8 million) of the carrying value of certain future community costs that relate to original agreements with communities for the Constancia operation which allow Hudbay to extract minerals over the useful life of the Peru operation. The liability remaining for these costs is recorded in agreements with communities recorded at amortized cost (note 17). Amortization of the carrying amount is recorded in the condensed consolidated interim statements of income within other expenses (note 8c) or exploration expenses, depending on the nature of the agreement.

Other assets also include $nil million related to cash advances and equipment financing advances made on long lease equipment (December 31, 2025 - $8.7 million).

Intangibles mainly represent computer software costs.

14. Property, plant and equipment

Sep. 30, 2026		Cost		Accumulated depreciation and amortization			Carrying amount
Exploration and evaluation assets	$	1,466.4	$	-		$	1,466.4
Capital works in progress		1,592.5		-			1,592.5
Mining properties		2,976.7		(1,634.9	)		1,341.8
Plant and equipment		3,769.2		(1,876.8	)		1,892.4
Plant and equipment - ROU assets¹		267.4		(201.4	)		66.0
	$	10,072.2	$	(3,713.1	)	$	6,359.1

Dec. 31, 2025		Cost		Accumulated depreciation and amortization			Carrying amount
Exploration and evaluation assets	$	108.9	$	-		$	108.9
Capital works in progress		1,359.8		-			1,359.8
Mining properties		2,842.6		(1,523.0	)		1,319.6
Plant and equipment		3,567.2		(1,743.7	)		1,823.5
Plant and equipment - ROU assets¹		273.5		(191.4	)		82.1
	$	8,152.0	$	(3,458.1	)	$	4,693.9

¹ Includes $4.5 million of capital works in progress - ROU assets (cost) that relate to the Copper World segment (December 31, 2025 - $5.3 million related to the Copper World segment).

Exploration and evaluation assets increased to $1,466.4 as at September 30, 2026, from $108.9 million as at December 31, 2025. The increase was primarily related to closing of the ASCU Transaction (note 5).

15. Goodwill

The following table summarizes changes in goodwill:

Balance, January 1, 2025	$	69.2
Effects of changes in foreign exchange		3.4
Balance, January 1, 2026	$	72.6
Effects of changes in foreign exchange		(2.4	)
Balance, September 30, 2026	$	70.2

As of September 30, 2026, all of the Company's goodwill relates to the British Columbia CGU. Goodwill is tested for impairment annually on July 1 or when circumstances indicate that the carrying value may not be recoverable. Goodwill impairment is determined by assessing the recoverable amount of the CGU.

For the annual impairment test completed at July 1, 2026, fair value less costs of disposal ("FVLCD") was used to determine the recoverable amount since it is higher than value in use. FVLCD was calculated using discounted after-tax cash flows based on cash flow projections and assumptions in Hudbay's most current LOM. The fair value measurement in its entirety is categorized as Level 3 based on the degree to which fair value inputs are observable and have a significant effect on the recorded fair value. LOM plans are based on optimized mine and processing plans and the assessment of capital expenditure requirements of a mine site for the CGU.

Management used judgement in determining estimates and assumptions with respect to discount rates, future production levels including amounts of recoverable reserves, resources and exploration potential, operating and capital costs, long-term metal prices and future foreign exchange rates. Metal pricing assumptions were based on consensus forecast pricing, and the discount rates were based on a weighted average cost of capital, adjusted for country risk and other risks specific to the CGU. Cash flows were projected through to 2045. Changes in any of the assumptions or estimates used in determining the fair values could impact the impairment analysis.

The discount rate was based on the CGU's weighted average cost of capital, of which the two main components are the cost of equity and the after-tax cost of debt. Cost of equity was calculated based on the capital asset pricing model, incorporating the risk-free rate of return based on the Canadian Government's marketable bond yields as at the valuation date, the Company's beta coefficient adjustment to the market equity risk premium based on the volatility of the Company's return in relation to that of a comparable market portfolio, plus a country risk premium, size premium and company-specific risk factor. Cost of debt was determined by applying an appropriate market indication of the Company's borrowing capabilities and the corporate income tax rate applicable to the segment's jurisdiction. A real discount rate of 7.25% (December 31, 2025 - 7.00%) for the British Columbia CGU was used to calculate the estimated after- tax discounted future net cash flows, commensurate with its individual estimated level of risk.

Commodity prices used in the impairment assessment were determined by reference to external market participant sources. The key commodity price for this assessment is the price of copper. The cash flow calculations were based on estimates of future production levels applying forecasts for metal prices, which utilized a long-term copper price of $4.75/lb (December 31, 2025 - $4.25/lb), and capital, operating and reclamation costs based on the most current LOM plans.

Expected future cash flows used to determine the FVLCD in the impairment test are inherently uncertain and could materially change over time. The Company has conducted an analysis of the sensitivity of the impairment test to changes in the key assumptions used to determine the recoverable amount for the CGUs to which goodwill is allocated. Management believes that any reasonably possible change in the key assumptions on which the recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the related CGU.

The estimated recoverable amount of the British Columbia CGU including goodwill exceeded its carrying amount as at July 1, 2026, accordingly no impairment was recorded.

16. Other liabilities

		Sep. 30, 2026		Dec. 31, 2025

Environmental and other provisions (note 21)	$	76.7	$	90.2
Pension obligations		2.6		0.9
Other employee benefits		4.1		3.6
	$	83.4	$	94.7

17. Other financial liabilities

		Sep. 30, 2026		Dec. 31, 2025
Current
Derivative liabilities	$	15.3	$	31.9
Deferred Copper Mountain acquisition consideration		3.0		3.0
Deferred land payments		5.0		-
Financing related to property, plant and equipment		40.4		26.2
Agreements with communities		51.2		61.8
		114.9		122.9

Non-current
Deferred Copper Mountain acquisition consideration		12.1		14.4
Contingent Copper Mountain acquisition consideration		14.5		13.9
Deferred land payments		92.8		-
Financing related to property, plant and equipment		117.0		66.0
Agreements with communities		39.1		44.1
Wheaton refund liability		8.4		7.9
Other financial liability		-		8.7
		283.9		155.0
	$	398.8	$	277.9

Financing related to property, plant and equipment represents agreements that Hudbay has entered into to purchase mining equipment and land. Hudbay owns the assets and finances the payment of these assets over the specified term. These agreements expire between 2026 and 2033 with interest rates between 2.25% and 7.55% per annum.

The following table summarizes changes in financing related to property, plant & equipment:

Balance, January 1, 2025	$	76.7
Additions		33.1
Payments		(20.2	)
Accretion and other movements		2.6
Balance, December 31, 2025	$	92.2
Additions		89.8
Payments		(21.9	)
Accretion and other movements		(2.7	)
Balance, September 30, 2026	$	157.4

Agreements with communities recorded at amortized cost relate to agreements with communities near the Constancia operation which allow Hudbay to extract minerals over the useful life of the Constancia operation, carry out exploration and evaluation activities in the area and provide Hudbay with community support to operate in the region. During the nine months ended September 30, 2026, there was a change in estimate related to amendments of life of mine agreements with respect to Constancia resulting in net additions of $2.1 million. Payments will be made over the respective terms of the agreements, which have varying expiration dates ranging from 2026 to 2040.

As part of the CMBC Transaction, the Company recorded $16.6 million of deferred payment consideration and $13.3 million of contingent consideration as a financial liability at amortized cost on the closing of the CMBC Transaction. The deferred consideration will be settled over a period from 2026 to 2032, while the contingent consideration is payable between 2029 and 2033. During the three and nine months ended September 30, 2026, accretion related to these liabilities were $0.5 million and $1.4 million, respectively (three and nine months ended September 30, 2025 - $0.4 million and $0.7 million) (note 8f).

As part of the ASCU Transaction (note 5), the Company recorded $5.0 million of current and $98.8 million of long term deferred land payments. The deferred land payments are associated with the private land purchases completed by ASCU in August 2025 which includes surface rights and mineral rights to such lands. The deferred land payments bear interest at 6% per annum and are payable in installments of $5.0 million each year from 2026 to 2028 with the remaining $82.2 million payable on maturity on August 28, 2029, with the rights to pre-pay in whole or in part, at any time, without penalty. The deferred land payments are structured as secured vendor carryback loans, pursuant to which certain deeds of trust were provided to the private land vendors on their respectively sold portions of the land sold pursuant to the sale and on certain other properties already held by Cactus 110 LLC, a wholly-owned indirect subsidiary of ASCU.

As part of the streaming agreement for the 777 mine, Hudbay must repay, with precious metals credits, the stream deposit by August 1, 2052, the expiry date of the agreement. If the stream deposit is not fully repaid with precious metals credits from 777 production by the expiry date, a payment for the remaining amount will be due at the expiry date of the agreement. As the 777 mine has concluded all mining activities following the depletion of reserves and finalized the sales of produced concentrate, Hudbay concluded that the remaining stream deposit will not be repaid by means of precious metals credits from 777 production. The repayment amount is recorded as a Wheaton refund liability, which is and will be discounted at the 9.0% rate inherent in the original 777 stream agreement and accreted over the remaining term of the agreement.

18. Lease liabilities

Balance, January 1, 2025	$	74.8
Additional capitalized leases		17.7
Lease payments		(36.9	)
Derecognized leases		(0.9	)
Accretion and other movements		1.3
Balance, December 31, 2025	$	56.0
Additional capitalized leases		21.6
Lease payments		(26.1	)
Accretion and other movements		-
Balance, September 30, 2026	$	51.5

Lease liabilities are reflected in the condensed consolidated interim balance sheets as follows:

		Sep. 30, 2026		Dec. 31, 2025
Current	$	24.7	$	26.7
Non-current		26.8		29.3
	$	51.5	$	56.0

Hudbay has entered into leases which expire between 2026 and 2037. The interest rates on leases which were capitalized have interest rates between 2.84% and 8.49%, per annum. The range of interest rates utilized for discounting the lease depends mostly on Hudbay acting as a lessee and duration of the lease. For certain leases, Hudbay has the option to purchase the equipment and vehicles leased at the end of the terms of the leases. Hudbay's obligations under these leases are secured by the lessor's title to the leased assets. The present value of applicable lease payments has been recognized as an ROU asset, which was included as a non-cash addition to property, plant and equipment, and a corresponding amount as a lease liability.

There are no restrictions placed on Hudbay by entering into these leases.

The following outlines expenses recognized within the Company's condensed consolidated interim statements of income, relating to leases for which a recognition exemption was applied.

		Three months ended September 30,				Nine months ended September 30,
		2026		2025		2026		2025
Short-term leases	$	7.6	$	5.6	$	20.1	$	13.7
Low value leases		0.1		0.1		0.3		0.3
Variable leases		4.8		2.0		16.1		11.0
Total	$	12.5	$	7.7	$	36.5	$	25.0

Payments made for short-term, low value and variable leases would mostly be captured as expenses in the condensed consolidated interim statements of income, however, certain amounts may be capitalized to PP&E for the Arizona segment during its development phase and certain amounts may be reported in inventories given the timing of sales. Variable payment leases include equipment used for heavy civil works at Constancia.

19. Long-term debt

		Sep. 30, 2026		Dec. 31, 2025
Current:
Senior unsecured notes (a)	$	-	$	472.1

Non-current:
Senior unsecured notes (a)		539.6		538.8
Senior secured revolving credit facilities (b)		248.4		(2.3	)
Senior unsecured municipal bonds (c)		50.7		-
	$	838.7	$	536.5
Total Long-term debt	$	838.7	$	1,008.6

(a) Senior unsecured notes

Balance, January 1, 2025	$	1,111.1
Repurchases		(102.5	)
Write-down of unamortized transaction costs		0.2
Accretion of transaction costs and premiums		2.1
Balance, December 31, 2025	$	1,010.9
Accretion of transaction costs and premiums		1.2
Repayment		(472.5	)
Balance, September 30, 2026	$	539.6

As at September 30, 2026, $542.4 million aggregate principal amount of senior notes were outstanding, consisting solely of a series of 6.125% senior notes due April 2029 ("2029 notes").

On April 1, 2026, the Company repaid in full the outstanding aggregate principal amount of $472.5 million of its 4.50% senior notes due April 2026 ("2026 notes") at maturity, using a combination of available cash on hand and a $272.0 million draw on its revolving credit facilities (note 19b). As a result, the 2026 notes were no longer outstanding as at September 30, 2026.

During the year ended December 31, 2025, the Company repurchased and retired a total of $102.5 million of the 2026 notes at a discount, prior to maturity. For the year ended December 31, 2025, the discount of $0.4 million was recorded as Other expenses in the consolidated statements of income. Upon the repurchase and retirement of $102.5 million of senior unsecured notes, the unamortized transaction costs related to this principal amount for the year ended December 31, 2025 of $0.2 million were recorded as a finance expense in the consolidated statements of income.

The senior notes are guaranteed on a senior unsecured basis by substantially all of the Company's subsidiaries, other than HudBay (BVI) Inc. and the subsidiaries that hold the Copper World, Cactus and Mason projects (collectively, the "Non-Guarantor Subsidiaries") as well as any newly formed or acquired subsidiaries that primarily hold or may develop non-producing mineral assets that are in the pre-construction phase of development.

(b) Senior secured revolving credit facilities

Balance, January 1, 2025¹	$	(3.6	)
Accretion of transaction costs		1.3
Transaction costs		-
Balance, December 31, 2025¹	$	(2.3	)
Proceeds from drawdown		272.0
Repayments		(22.0	)
Accretion of transaction costs		0.7
Balance, September 30, 2026¹	$	248.4

¹ Balance, representing deferred transaction costs, is in an asset position.

Hudbay has two senior secured revolving credit facilities with total commitments of $450.0 million and substantially similar terms and conditions for its Canadian and Peruvian businesses. Hudbay's revolving credit facilities are secured against substantially all of the Company's assets, other than those assets associated with the Copper World, Cactus and Mason projects. The two senior secured revolving credit facilities mature in November 2028. The revolving credit facility includes an accordion feature to increase the facility by an additional $150 million at Hudbay's discretion.

During the nine months ended September 30, 2026, Hudbay drew $272.0 million under its Canadian revolving credit facility. During the three months ended September 30, 2026, Hudbay repaid $22.0 million of the outstanding borrowings.

As at September 30, 2026, there were nil draws under the Peruvian revolving credit facilities, other than letters of credit to support reclamation and pension obligations as described below.

As at September 30, 2026, the Peru segment had nil in letters of credit issued under the Peru revolving credit facility to support its reclamation obligations and the Manitoba segment had $24.4 million in letters of credit issued under the Canadian revolving credit facility to support its reclamation and pension obligations. As at September 30, 2026, the Company was in compliance with its covenants under the revolving credit facilities.

Surety bonds

The Arizona segment had $54.3 million in surety bonds issued to support future reclamation and closure obligations. No cash collateral is required to be posted under these surety bonds.

The British Columbia segment had $83.9 million in surety bonds issued to support future reclamation and closure obligations. The British Columbia segment had $1.5 million in surety bonds issued to BC Hydro in relation to the BC Hydro transmission system at the Copper Mountain Mine, and to Fisheries and Oceans Canada for fish monitoring. No cash collateral is required to be posted under these surety bonds.

The Peru segment had nil million in surety bonds issued to support future reclamation and closure obligations.

Other letters of credit

The Peru segment had $145.6 million in letters of credit issued with various Peruvian financial institutions to support future reclamation and other operating matters. No cash collateral is required to be posted under these letters of credit.

The British Columbia segment had $0.3 million in letters of credit issued to the Ministry of Finance and Ministry of Transport and Transit related to other operating matters. No cash collateral is required to be posted under these letters of credit.

Hudbay has a C$130.0 million bilateral letter of credit facility ("LC Facility") with a major Canadian financial institution. As at September 30, 2026, the Manitoba segment had $55.8 million in letters of credit issued under the LC Facility to support its reclamation and pension obligations.

Subsequent to quarter end, Hudbay established a C$50.0 million letter of credit facility with a major Canadian financial institution. This new facility was permitted under the existing terms the Credit Facilities and has no financial covenants. There have been no letters of credit drawn under this new facility.

(c) Senior unsecured municipal bonds

Balance, December 31, 2025	$	-
Addition		52.0
Transaction costs		(1.3	)
Balance, September 30, 2026	$	50.7

On June 24, 2026, $52.0 million aggregate principal amount of Municipal bonds were issued by the Arizona Industrial Development Authority (note 12). The Municipal bonds carry a fixed interest rate of 4.50% per annum, payable semi-annually.

At inception, the carrying value of the Municipal bonds is $50.7 million, net of $1.3 million in transaction cost. This transaction cost is capitalized against the liability and amortized over the initial term interest rate period using the effective interest method.

The Municipal bonds are senior unsecured obligations of Copper World LLC and are guaranteed on a senior unsecured basis by the Company and its subsidiaries that guarantee the Company's senior unsecured notes.

20. Deferred revenue

Peru Stream Agreement

For the three and nine months ended September 30, 2026, the drawdown rates for the Peru stream agreement for gold and silver were $833 and $15.56 per ounce, respectively (year ended December 31, 2025 - $860 and $15.06 per ounce, respectively).

The following table summarizes changes in deferred revenue:

Balance, January 1, 2025	$	372.2
Amortization of deferred revenue:
Liability drawdown		(65.1	)
Variable consideration adjustments - prior periods		(9.9	)
Accretion on streaming arrangements:
Current year additions		20.5
Variable consideration adjustments - prior periods		(0.6	)
Balance, December 31, 2025	$	317.1
Amortization of deferred revenue (note 8a):
Liability drawdown		(39.4	)
Variable consideration adjustments - prior periods		0.1
Accretion on streaming arrangements (note 8f):
Current year-to-date additions		13.5
Variable consideration adjustments - prior periods		-
Balance, September 30, 2026	$	291.3

Consideration from the Company's stream agreement is considered variable. Gold and silver stream revenue can be subject to cumulative adjustments when the number of ounces to be delivered under the contract changes. As a result of changes in the Company's mineral reserve and resource estimate in the first quarter of 2026, the amortization rate by which deferred revenue is drawn down into income was adjusted and, as required, a current period variable adjustment was made for all prior period stream revenues since the stream agreement inception date. This variable consideration adjustment resulted in an decrease in revenue of $0.1 million and $nil impact to finance expense for the nine months ended September 30, 2026 (year ended December 31, 2025 - an increase in revenue of $9.9 million and a decrease in finance expense of $0.6 million).

Deferred revenue is reflected in the condensed consolidated interim balance sheets as follows:

		Sep. 30, 2026		Dec. 31, 2025
Current	$	28.9	$	52.1
Non-current		262.4		265.0
	$	291.3	$	317.1

21. Environmental and other provisions

Reflected in the condensed consolidated interim balance sheets as follows:

Sep. 30, 2026		Decommissioning, restoration and similar liabilities		Deferred share units		Restricted share units		Performance share units		Other ¹		Total
Current (note 16)	$	11.9	$	29.8	$	10.1	$	22.8	$	2.1	$	76.7
Non-current		302.8		-		3.7		5.2		1.2		312.9
	$	314.7	$	29.8	$	13.8	$	28.0	$	3.3	$	389.6

Dec. 31, 2025		Decommissioning, restoration and similar liabilities		Deferred share units		Restricted share units		Performance share units		Other ¹		Total
Current (note 16)	$	20.6	$	21.5	$	20.5	$	19.0	$	8.6	$	90.2
Non-current		297.8		-		5.6		7.9		1.3		312.6
	$	318.4	$	21.5	$	26.1	$	26.9	$	9.9	$	402.8

¹ Relates primarily to flow-through share premiums, restructuring costs and other non-capital provisions.

Decommissioning and restoration obligations ("DRO") are remeasured at each reporting date to reflect changes in discount rates, exchange rates, and timing and extent of cash outflows which can significantly affect the liabilities. This provision has been recorded based on estimates and assumptions that management believes are reasonable; however, actual decommissioning and restoration costs may differ from expectations.

During the nine months ended September 30, 2026, the Company recorded a non-cash gain of $4.2 million in the condensed consolidated interim statements of income mainly related to a revaluation adjustment to the Flin Flon environmental reclamation provision. The re-evaluation adjustment was impacted by the timing and extent of cash flows for Flin Flon's closed sites. The adjustment also reflects net changes in long term, risk-free real discount rates based on changes in Canadian bond yields as well as increases in inflation rates. Typically, an operating location will reflect any revaluation adjustments to the environmental reclamation provision against its reclamation assets. However, as the Flin Flon operations closed in June 2022, the corresponding Flin Flon assets have been fully depreciated and cannot be reduced below residual value resulting in the remaining impact being recorded as a loss in the condensed consolidated interim statements of income.

As at September 30, 2026, decommissioning, restoration and similar liabilities have been discounted to their present value at rates ranging from 2.38% to 5.71% per annum (December 31, 2025 - 2.41% to 4.95%), using pre-tax, nominal risk-free interest rates that reflect the estimated maturity of each specific liability.

During the nine months ended September 30, 2025, the Company recorded a non-cash loss of $0.4 million in the condensed consolidated interim statements of income mainly related to a revaluation adjustment to the Flin Flon environmental reclamation provision.

22. Income and mining taxes

The tax expense is applicable as follows:

		Three months ended September 30,					Nine months ended September 30,
		2026		2025			2026			2025
Current
Income tax expense	$	68.5	$	32.9		$	194.2		$	97.8
Mining tax expense		37.0		6.2			116.4			45.0
Adjustments in respect of prior years		-		-			(0.7	)		(1.9	)
		105.5		39.1			309.9			140.9
Deferred

Income tax expense (recovery) - origination, revaluation and/or reversal of temporary differences		28.8		68.7			71.0			79.5
Mining tax (recovery) expense - origination, revaluation and/or reversal of temporary differences		3.7		(0.6	)		4.4			(2.0	)
Adjustments in respect of prior years		1.2		0.9			3.7			0.2
		33.7		69.0			79.1			77.7
	$	139.2	$	108.1		$	389.0		$	218.6

Adjustments in respect of prior years refer to amounts changing due to the filing of tax returns and assessments from government authorities as well as any change identified that would result in a difference to our current or deferred tax balances as reported in the prior fiscal year end.

23. Share capital

(a) Preference shares:

Authorized: Unlimited preference shares without par value.

Issued and fully paid: Nil.

(b) Common shares:

Authorized: Unlimited common shares without par value.

Issued and fully paid:

	Nine months ended Sep. 30, 2026				Year ended Dec. 31, 2025
	Common shares			Amount	Common shares		Amount
Balance, beginning of year	396,834,231		$	2,668.2	394,932,374	$	2,641.3
Shares issued on acquisition of Arizona Sonoran (note 5)	46,794,082			1,135.6	-		-
Equity issuance, net of issuance costs	-			-	465,394		4.2
Flow through shares, net of share issuance costs and implied premium	-			-	887,000		13.7
Exercise of options	525,395			4.7	478,755		4.1
Cancelled shares	(2,886	)		-	-		-
Exercise of warrants	-			-	70,708		0.5
Tax adjustments in respect of prior years	-			-	-		4.4
Balance, end of the period	444,150,822		$	3,808.5	396,834,231	$	2,668.2

Shares issued on acquisition of Arizona Sonoran

On June 24, 2026, the Company completed the acquisition of all the issued and outstanding common shares of ASCU. As consideration for the acquisition, the Company issued a total of 46,794,082 common shares for gross value of $1,135.6 million, based on the fair value of the net assets received from the ASCU Transaction (note 5).

Equity issuance

On June 24, 2025, the Company closed a private placement deal to issue 465,394 common shares at a price of C$13.30 per Common Share for aggregate gross proceeds of $4.5 million. Associated with the private placement were $0.3 million of share issuance costs resulting in net equity raised of $4.2 million. The net proceeds of this private placement were used to fund the $4.5 million cash consideration on closing of the acquisition of MMC's 25% interest in CMBC.

Flow-through share financing

During the year ended December 31, 2025, the Company completed a Canadian Exploration Expense ("CEE") flow-through financing. The Company issued 887,000 common shares for proceeds, net of transaction costs, of $22.6 million. The implied premium on the flow-through shares of $8.9 million was recorded as a flow-through share liability. The flow-through share liability will be recognized in earnings as eligible expenditures are made. During the nine months ended September 30, 2026, $7.1 million of flow-through share liability was renounced and recognized in other expenses (note 8c) on the condensed consolidated statements of income.

Dividends

During the nine months ended September 30, 2026, the Company declared three quarterly dividends of C$0.01 per share. The Company paid $2.9 million, $2.8 million and $3.2 million in dividends on March 27, 2026, June 26, 2026 and September 25, 2026, respectively, to shareholders of record as of March 10, 2026, June 9, 2026 and September 8, 2026.

During the year ended December 31, 2025, the Company declared two semi-annual dividends of C$0.01 per share. The Company paid $2.8 million and $2.8 million in dividends on March 21, 2025 and September 19, 2025, respectively, to shareholders of record as of March 4, 2025 and September 2, 2025.

(c) Equity-settled share-based compensation

Stock Options

The Company's stock option plan was approved in June 2005 and amended in May 2008 (the "Plan"). Under the amended Plan, the Company may grant to employees, officers, directors or consultants of the Company or its affiliates options to purchase up to a maximum of 13 million common shares of Hudbay. The Company has determined that the appropriate accounting treatment is to classify the stock options as equity settled transactions.

The following table outlines the changes in the number of stock options outstanding:

	Sep. 30, 2026				Dec. 31, 2025
	Number of shares subject to option			Weighted- average exercise price C$	Number of shares subject to option			Weighted average exercise price C$
Balance, beginning of year	2,710,414		$	8.34	2,484,107		$	7.42
Number of units granted	270,247		$	34.15	828,720		$	10.81
Exercised	(525,395	)	$	7.97	(478,755	)	$	7.69
Forfeited	(42,454	)	$	13.25	(123,658	)	$	9.01
Balance, end of period	2,412,812		$	11.22	2,710,414		$	8.34

The following table outlines stock options outstanding and exercisable:

Sep. 30, 2026

Range of exercise
prices C$

Number of
options
outstanding

Weighted average
remaining
contractual life
(years)

Weighted
average
exercise price
C$

Number of
options
exercisable

Weighted average
share price at
exercise date C$

$3.76 - $5.26

236,123

0.41

3.76

236,123

3.76

$5.27 - $7.13

356,180

3.41

6.75

356,180

6.75

$7.14 - $8.71

531,742

4.41

7.50

283,571

7.50

$8.72 - $10.60

390,588

1.96

10.15

390,588

10.15

$10.61 - $13.50

634,550

5.39

10.81

146,247

10.79

$13.51 - $34.10

260,045

6.43

34.10

$34.11 - $38.07

3,584

6.43

38.07

Dec. 31, 2025
Range of exercise prices C$	Number of options outstanding	Weighted average remaining contractual life (years)		Weighted average exercise price C$	Number of options exercisable		Weighted average share price at exercise date C$
$3.76 - $5.26	292,198	1.15	$	3.76	290,732	$	3.76
$5.27 - $7.13	503,099	4.16	$	6.75	273,014	$	6.75
$7.14 - $8.71	687,508	5.15	$	7.50	164,283	$	7.50
$8.72 - $10.60	459,772	2.73	$	10.13	458,500	$	10.13
$10.61 - $13.50	767,837	6.12	$	10.81	-	$	-

Hudbay estimates expected life of options and expected volatility based on historical data, which may differ from actual outcomes.

24. Earnings per share

	Three months ended September 30,		Nine months ended September 30,
	2026	2025	2026	2025
Weighted average common shares outstanding
Basic	444,147,773	395,726,407	397,731,781	395,256,972
Plus net incremental shares from:
Assumed conversion: stock options	1,610,610	1,133,286	1,677,563	880,603
Assumed conversion: warrants	-	26,929	-	22,073
Diluted weighted average common shares outstanding	445,758,383	396,886,622	399,409,344	396,159,648

The calculation of dilutive weighted-average number of common shares excludes the impact of 90,077 and 91,844 shares for the three and nine months ended September 30, 2026, respectively (three and nine months ended September 30, 2025 - 3,719 and 105,764, respectively). The shares related to stock options and warrants were excluded as the exercise price related to the particular security exceeded the average market price of the Company's common shares for the period, or the inclusion of the share units had an anti-dilutive effect on net income.

25. Financial instruments

(a) Fair value and carrying value of financial instruments:

The following presents the fair value ("FV") and carrying value ("CV") of Hudbay's financial instruments and non-financial derivatives:

		Sep. 30, 2026				Dec. 31, 2025
		FV		CV		FV			CV
Financial assets at amortized cost
Cash and cash equivalents¹	$	788.7	$	788.7	$	568.9		$	568.9
Restricted cash¹		50.4		50.4		0.2			0.2
Current consideration receivable²		174.7		174.7		-			-
Fair value through profit or loss
Trade and other receivables^3,4		353.9		353.9		347.6			347.6
Non-hedge derivative assets ⁵		0.3		0.3		0.6			0.6
Investments at fair value through profit or loss ⁶		221.1		221.1		130.9			130.9
Total financial assets	$	1,589.1	$	1,589.1	$	1,048.2		$	1,048.2
Financial liabilities at amortized cost
Trade and other payables^1, ³	$	407.3	$	407.3	$	330.5		$	330.5
Deferred Copper Mountain acquisition consideration⁷		14.8		15.1		17.5			17.4
Contingent Copper Mountain acquisition consideration⁷		13.3		14.5		14.1			13.9
Deferred land payments⁷		97.8		97.8		-			-
Agreements with communities⁸		91.6		90.3		107.2			105.9
Senior secured revolving credit facilities⁹		250.0		248.4		(2.3	)		(2.3	)
Senior unsecured notes¹⁰		536.8		539.6		1,022.7			1,010.9
Senior unsecured municipal bonds ¹¹		47.4		50.7		-			-
Wheaton refund liability¹²		12.4		8.4		13.9			7.9
Fair value through profit or loss
Non-hedge derivative liabilities ⁵		15.3		15.3		31.9			31.9
Total financial liabilities	$	1,486.7	$	1,487.4	$	1,535.5		$	1,516.1

¹Cash and cash equivalents, restricted cash, trade and other payables are recorded at carrying value, which approximates fair value due to their short-term nature and generally negligible credit losses.

² Fair value of the deferred consideration receivable has been determined using an applicable credit-risk adjusted discount rate (level 3).

³Excludes tax and other statutory amounts.

⁴ Trade and other receivables contain receivables including provisionally priced receivables classified as FVTPL and various other items at amortized cost. The fair value of provisionally priced receivables is determined using forward metals prices (level 2).

⁵Derivatives are carried at their fair value, which is determined based on observable forward market commodity prices corresponding to the maturity of the contract (level 2),

⁶Investments in listed shares are valued using quoted market bid prices in active markets. For Investments in private companies where no active market exists, fair value is determined using valuation techniques including recent arm's length market transactions.

⁷Fair value has been determined using an applicable credit-risk adjusted discount rate (level 3).

⁸These financial liabilities relate to agreements with communities in Peru (note 17). Fair values have been determined using an applicable credit-risk adjusted discounted rate and foreign exchange rates (level 3).

⁹Fair value of the senior secured revolving credit facility (note 19b) is equal to its carrying value as the drawn interest rate under the facility is comparable to current market rates.

¹⁰Fair value of the senior unsecured notes (note 19a) has been determined using an applicable credit-risk adjusted discount rate (level 3).

¹¹Fair value of the municipal bonds (note 19c) has been determined using comparable current market rates for similar instruments, adjusted for estimated credit spreads (level 2).

¹² Discounted value based on a market rate at inception of the applicable Wheaton contract for carrying value (note 17) and fair value using an applicable credit-risk adjusted discount rate (level 3).

Fair value hierarchy

The table below provides an analysis by valuation method of financial instruments that are measured at fair value subsequent to recognition as well as financial instruments not measured at fair value but for which a fair value is disclosed. Levels 1 to 3 are defined based on the degree to which fair value inputs are observable and have a significant effect on the recorded fair value, as follows:

- Level 1: Quoted prices in active markets for identical assets or liabilities;

- Level 2: Valuation techniques use significant observable inputs, either directly or indirectly, or

valuations are based on quoted prices for similar instruments; and,

- Level 3: Valuation techniques use significant inputs that are not based on observable market

data.

September 30, 2026

Level 1

Level 2

Level 3

Total

Financial assets at FVTPL:

Provisionally priced receivables

330.4

Non-hedge derivatives

0.3

Investments

218.1

3.0

221.1

Financial assets at amortized cost:

Deferred consideration receivable

174.7

218.1

330.7

177.7

726.5

Financial liabilities at FVTPL:

Non-hedge derivatives

15.3

Financial liabilities at amortized cost:

Deferred Copper Mountain acquisition consideration

14.8

Contingent Copper Mountain acquisition consideration

13.3

Deferred land payments

97.8

Agreements with communities

91.6

Senior secured revolving credit facilities

250.0

Senior unsecured notes

536.8

Senior unsecured municipal bonds

47.4

Wheaton refund liability

12.4

536.8

62.7

479.9

1,079.4

December 31, 2025		Level 1		Level 2		Level 3		Total
Financial assets at FVTPL:
Provisionally priced receivables	$	-	$	302.2	$	-	$	302.2
Non-hedge derivatives		-		0.6		-		0.6
Investments		127.9		-		3.0		130.9
	$	127.9	$	302.8	$	3.0	$	433.7
Financial liabilities at FVTPL:
Non-hedge derivatives	$	-	$	31.9	$	-	$	31.9
Financial liabilities at amortized cost:
Deferred Copper Mountain acquisition consideration		-		-		17.5		17.5
Contingent Copper Mountain acquisition consideration		-		-		14.1		14.1
Agreements with communities		-		-		107.2		107.2
Senior unsecured notes		1,022.7		-		-		1,022.7
Wheaton refund liability		-		-		13.9		13.9
	$	1,022.7	$	31.9	$	152.7	$	1,207.3

The Company's policy is to recognize transfers into and transfers out of fair value hierarchy levels as of the date of the event or change in circumstances that caused the transfer. During the nine months ended September 30, 2026 and year ended December 31, 2025, Hudbay did not make any such transfers.

Valuation techniques used for instruments categorized in Levels 2 and 3 are consistent with the year ended December 31, 2025.

(b) Derivatives and hedging:

Copper fixed for floating swaps

Hudbay enters into copper fixed for floating swaps in order to manage the risk associated with provisional pricing terms in copper concentrate sales agreements. As at September 30, 2026, Hudbay had 56.4 million pounds of net copper swaps outstanding at an effective average price of $6.28/lb and settling from October 2026 to February 2027. As at December 31, 2025, Hudbay had 57.9 million pounds of net copper swaps outstanding at an effective average price of $5.18/lb and settling from January to May 2026. The aggregate fair value of the transactions at September 30, 2026 was a net liability of $10.0 million (December 31, 2025 - a net liability position of $26.4 million).

Gold fixed for floating swaps

Hudbay enters into gold fixed for floating swaps to manage the risk associated with provisional pricing terms on concentrate shipments. As at September 30, 2026, Hudbay had nil net gold swaps outstanding. As at December 31, 2025, Hudbay had 23,180 ounces of net gold swaps outstanding at an effective average price of $4,333/ounce and settling from January to February 2026. The aggregate fair value of the position at September 30, 2026 was nil (December 31, 2025 - a net liability of $4.9 million).

Zinc fixed for floating swaps

Hudbay enters into zinc fixed for floating swaps in order to manage the risk associated with provisional pricing terms in zinc concentrate sales agreements. As at September 30, 2026, Hudbay had 9.6 million pounds of net zinc swaps outstanding at an effective average price of $1.77/lb and settling across October 2026. As at December 31, 2025, Hudbay had 7.3 million pounds of net zinc swaps outstanding at an effective average price of $1.40/lb and settling in January 2026. The aggregate fair value of the transactions at September 30, 2026 was a net asset $0.2 million (December 31, 2025 - nil).

Copper forward sales

As at September 30, 2026, Hudbay had 4.6 million pounds of copper forwards outstanding at an effective average price of $6.03/lb and settling from October 2026 to April 2027. As at December 31, 2025, Hudbay had nil pounds of copper forwards outstanding. The aggregate fair value of the transactions at September 30, 2026 was a liability of $2.3 million (December 31, 2025 - nil).

Copper costless collars

As at September 30, 2026, Hudbay had 9.3 million pounds of copper collars outstanding settling from October 2026 to April 2027 at an average floor price of $5.76/lb and an average cap price of $6.36/lb. As at December 31, 2025, Hudbay had nil pounds of copper collars outstanding. The aggregate fair value of the position at September 30, 2026 was a liability of $2.9 million (December 31, 2025 - nil).

(c) Provisionally priced receivables

Changes in fair value of provisionally priced receivables

Hudbay records changes in fair value of provisionally priced receivables related to provisional pricing in concentrate purchase, concentrate sale and certain other sale contracts. Under the terms of these contracts, prices are subject to final adjustment at the end of a future period after title transfers based on quoted market prices during the quotation period specified in the contract. The period between provisional pricing and final pricing is typically up to three months.

Changes in fair value of provisionally priced receivables are presented in trade and other receivables when they relate to sales contracts and in trade and other payables when they relate to purchase contracts. At each reporting date, provisionally priced metals are marked-to-market based on the forward market price for the quotation period stipulated in the contract, with changes in fair value recognized in revenue for sales contracts and in inventory or cost of sales for purchase concentrate contracts. Cash flows related to changes in fair value of provisionally priced receivables are classified in operating activities.

As at September 30, 2026 and December 31, 2025, Hudbay's net position consisted of contracts awaiting final pricing are as indicated below:

Metal in
concentrate

Sales awaiting final pricing

Average YTD price ($/unit)

Unit

Sep. 30, 2026

Dec. 31, 2025

Sep. 30, 2026

Dec. 31, 2025

Copper

pounds (in 000s)

69,138

65,791

6.55

5.64

Gold

troy ounces

23,401

33,222

4,165

4,340

Silver

troy ounces

327,570

85,337

60.49

70.22

Zinc

pounds (in 000s)

10,805

8,365

1.77

1.40

The aggregate fair value of provisionally priced receivables within the copper and zinc concentrate at September 30, 2026 was an asset position of $4.7 million (December 31, 2025 - an asset position of $40.9 million).

26. Commitments

Capital commitments

As at September 30, 2026, Hudbay had outstanding capital commitments in Manitoba of approximately $41.4 million of which $37.7 million can be terminated, approximately $28.5 million in British Columbia of which $nil can be terminated, approximately $9.5 million in Peru all of which can be terminated, and approximately $199.6 million in Arizona, primarily related to the Copper World project, of which $197.4 million can be terminated.

27. Supplementary cash flow information

(a) Other operating activities:

		Three months ended September 30,						Nine months ended September 30,
		2026			2025			2026			2025
Share-based compensation paid	$	-		$	(4.4	)	$	(56.1	)	$	(14.2	)
Consideration received from sale of non-core project		(0.9	)		(10.4	)		(0.9	)		(10.4	)
Other		-			0.7			-			1.6
	$	(0.9	)	$	(14.1	)	$	(57.0	)	$	(23.0	)

(b) Change in non-cash working capital:

		Three months ended September 30,						Nine months ended September 30,
		2026			2025			2026			2025
Change in:
Trade and other receivables	$	(189.0	)	$	77.1		$	(13.5	)	$	75.7
Other financial assets/liabilities		4.4			6.1			(21.5	)		30.6
Inventories		(9.7	)		(25.5	)		(23.5	)		(10.9	)
Prepaid expenses		2.2			0.9			1.3			7.9
Trade and other payables		92.2			(14.5	)		53.8			(29.2	)
Provisions and other liabilities		0.9			(0.9	)		(6.1	)		(3.6	)
	$	(99.0	)	$	43.2		$	(9.5	)	$	70.5

(c) Non-cash transactions:

During the nine months ended September 30, 2026 and 2025, Hudbay entered into the following non-cash investing and financing activities which are not reflected in the condensed consolidated interim statements of cash flows:

- Remeasurement of Hudbay's decommissioning and restoration liabilities led to a net increase in related property, plant and equipment assets of $14.3 million (September 30, 2025 - a net increase of $2.5 million), mainly related to changes to closure costs and real discount rates associated with remeasurement of the liabilities.

- Property, plant and equipment included $21.6 million (September 30, 2025 - $14.0 million) of capital additions related to the recognition of ROU assets and $89.8 million (September 30, 2025 - $18.6 million) of capital additions related to the recognition of property, plant and equipment that has been financed, and $19.6 million (September 30, 2025 - $22.3 million) of non-cash capitalized stripping and development. Property, plant and equipment and other assets include $2.1 million capital additions related to agreements with communities (September 30, 2025 - $25.0 million). Property, plant and equipment includes $0.2 million deduction for accrued grants related to equipment eligible for credits (September 30, 2025 - $1.5 million).

- Property, plant and equipment includes $1,357.0 million of capital additions related to the purchase of ASCU that was purchased with 46,794,082 Hudbay common shares and $123.1 million of ASCU shares held by Hudbay (note 5).

28. Segmented information

Hudbay has the following reportable segments identified by the individual mining operations of Manitoba, British Columbia, Peru, Copper World project and Cactus project. Corporate and other activities are not considered an operating segment and are included as a reconciliation to total consolidated results. Corporate and other activities include the Company's exploration activities in Chile, Canada and the State of Nevada. These exploration entities are not individually significant, as they do not meet the minimum quantitative thresholds for standalone segment disclosure. No results for the Cactus project segment are reflected in the prior period comparative figures.

Three months ended September 30, 2026

Peru

Manitoba

British
Columbia

Copper
World
Project

Cactus
Project

Corporate
and other
activities

Total

Revenue from external customers

344.7

296.5

124.7

765.9

Cost of sales

Mine operating costs

150.5

94.9

72.3

317.7

Depreciation and amortization

63.8

20.7

17.5

102.0

Gross profit

130.4

180.9

34.9

346.2

Selling and administrative expenses

11.9

Share-based compensation expenses

0.3

21.5

21.8

Exploration expenses

3.3

9.8

13.1

Evaluation expenses

2.8

5.7

4.9

13.4

Other operating expenses (income)

4.9

3.5

3.6

0.5

(0.5

)

12.5

Re-evaluation adjustment - environmental provision

(11.8

)

(11.8

)

Results from operating activities

121.9

176.6

31.3

(0.5

)

(6.2

)

(37.8

)

285.3

Consideration received from previous sale of non-core project

(0.9

)

Interest expense on long term debt

12.9

Accretion on streaming arrangements

4.5

Change in fair value of financial instruments

(16.1

)

Other net finance income

(5.3

)

Income before tax

290.2

Three months ended September 30, 2025
		Peru		Manitoba		British Columbia			Copper World Project			Corporate and other activities			Total
Revenue from external customers	$	164.6	$	104.7	$	77.5		$	-		$	-		$	346.8
Cost of sales
Mine operating costs		85.1		49.7		64.0			-			-			198.8
Depreciation and amortization		50.0		16.3		16.4			-			-			82.7
Gross profit		29.5		38.7		(2.9	)		-			-			65.3
Selling and administrative expenses		-		-		-			-			13.4			13.4
Share-based compensation expenses		0.4		-		-			-			18.0			18.4
Exploration expenses		2.9		7.6		-			-			-			10.5
Evaluation expenses		-		0.7		0.5			-			-			1.2
Other operating expenses (income)		3.4		4.3		(0.3	)		0.2			(0.1	)		7.5
Re-evaluation adjustment - environmental provision		-		1.4		-			-			-			1.4
Impairment reversal		-		-		-			(322.3	)		-			(322.3	)
Results from operating activities	$	22.8	$	24.7	$	(3.1	)	$	322.1		$	(31.3	)	$	335.2
Consideration received from previous sale of non-core project															(14.9	)
Interest expense on long term debt															14.8
Accretion on streaming arrangements															5.1
Change in fair value of financial instruments															(11.4	)
Other net finance expense															11.1
Income before tax														$	330.5

Nine months ended September 30, 2026

Peru

Manitoba

British
Columbia

Copper
World
Project

Cactus
Project

Corporate
and other
activities

Total

Revenue from external customers

981.0

841.4

332.1

2,154.5

Cost of sales

Mine operating costs

398.1

266.0

216.5

880.6

Depreciation and amortization

170.6

61.9

58.2

290.7

Gross profit

412.3

513.5

57.4

983.2

Selling and administrative expenses

36.6

Share-based compensation expenses

1.3

51.1

52.4

Exploration expenses

11.8

36.7

48.5

Evaluation expenses

5.5

0.2

5.7

14.1

25.5

Other operating expenses (income)

17.1

(1.5

)

4.2

0.6

0.5

(6.7

)

14.2

Re-evaluation adjustment - environmental provision

(4.2

)

(4.2

)

Results from operating activities

382.1

477.0

53.0

(0.6

)

(6.2

)

(95.1

)

810.2

Consideration received from previous sale of non-core project

(0.9

)

Interest expense on long term debt

40.6

Accretion on streaming arrangements

13.5

Change in fair value of financial instruments

(127.7

)

Other net finance expense

15.1

Income before tax

869.6

Nine months ended September 30, 2025
		Peru		Manitoba		British Columbia		Copper World Project			Corporate and other activities			Total
Revenue from external customers	$	713.9	$	522.5	$	241.7	$	-		$	-		$	1,478.1
Cost of sales
Mine operating costs		341.4		196.5		179.9		-			-			717.8
Depreciation and amortization		174.2		63.8		49.2		-			-			287.2
Gross profit		198.3		262.2		12.6		-			-			473.1

Selling and administrative expenses		-		-		-		-			35.0			35.0
Share-based compensation expenses		0.8		-		-		-			30.8			31.6
Exploration expenses		11.6		22.2		-		-			-			33.8
Evaluation expenses		-		1.6		1.1		-			-			2.7
Other operating expenses (income)		8.4		10.1		1.5		0.4			(2.5	)		17.9
Re-evaluation adjustment - environmental provision		-		0.4		-		-			-			0.4
Impairment reversal		-		-		-		(322.3	)		-			(322.3	)
Results from operating activities	$	177.5	$	227.9	$	10.0	$	321.9		$	(63.3	)	$	674.0
Consideration received from previous sale of non-core project														(14.9	)
Interest expense on long term debt														46.3
Accretion on streaming arrangements														14.7
Change in fair value of financial instruments														(20.7	)
Other net finance income														(6.3	)
Income before tax													$	654.9

September 30, 2026

Peru

Manitoba

British Columbia

Copper World Project

Cactus Project

Corporate and other activities

Total

Total assets

2,319.2

403.5

1,506.2

1,796.2

1,372.5

963.3

8,360.9

Total liabilities

929.6

474.5

325.7

191.8

101.0

923.8

2,946.4

Property, plant and equipment¹

1,807.7

617.5

1,223.7

1,279.4

1,367.0

63.8

6,359.1

Other non-current assets²

64.5

20.7

10.1

0.1

0.5

95.9

¹ Included in Corporate and other activities are $52.9 million of property, plant and equipment that is located in Nevada.

² Other non-current assets includes receivables, inventory, intangibles and other assets.

December 31, 2025
		Peru		Manitoba		British Columbia		Copper World Project		Corporate and other activities		Total
Total assets	$	2,492.0	$	471.5	$	1,320.2	$	1,147.5	$	792.1	$	6,223.3
Total liabilities		1,031.3		424.3		269.2		103.6		1,163.9		2,992.3
Property, plant and equipment¹		1,815.7		604.3		1,082.6		1,144.9		46.4		4,693.9
Other non-current assets²		64.3		21.4		9.9		0.2		0.5		96.3

¹ Included in Corporate and other activities is $33.9 million of property, plant and equipment that is located in Nevada.

² Other non-current assets includes receivables, inventory, intangibles and other assets.

29. Events after reporting period

Copper World Project - Final Investment Decision and Construction Sanctioning

On October 21, 2026, the Company and its 30% joint venture partner, Mitsubishi, formally approved the final investment decision to proceed with the construction and development of the Copper World project in Arizona, United States.

Senior Secured Revolving Credit Facilities Term Extension and Additional Borrowing Capacity

In November 2026, the Company completed an amendment to extend and increase the capacity of the senior secured revolving credit facilities. The aggregate commitment under the revolving credit facilities has increased from $450 million to $700 million, with an accordion option to increase facility capacity by an additional $150 million. The maturity date of the facility has been extended by two years from November 2028 to November 2030.

Management's Discussion and Analysis of

Results of Operations and Financial Condition

For the three and nine months ended

September 30, 2026

November 11, 2026

TABLE OF CONTENTS	Page

Introduction	1
Hudbay's Business	1
Hudbay's Purpose	2
Summary	2
Key Financial Results	7
Key Production Results	8
Key Costs Results	8
Recent Developments	9
Peru Operations Review	14
Manitoba Operations Review	20
British Columbia Operations Review	25
Financial Review	30
Liquidity and Capital Resources	40
Trend Analysis and Quarterly Review	47
Non-GAAP Financial Performance Measures	49
Accounting Changes and Critical Estimates	73
Changes in Internal Control over Financial Reporting	74
Notes to Reader	74
Summary of Historical Results	77

INTRODUCTION

This Management's Discussion and Analysis ("MD&A") dated November 11, 2026 is intended to supplement Hudbay Minerals Inc.'s unaudited condensed consolidated interim financial statements and related notes for the three and nine months ended September 30, 2026 and 2025 (the "consolidated interim financial statements"). The consolidated interim financial statements have been prepared in accordance with IFRS^® Accounting Standards ("IFRS" or "GAAP") as issued by the International Accounting Standards Board ("IASB").

References to "Hudbay" or the "Company" refer to Hudbay Minerals Inc. and its direct and indirect subsidiaries as at September 30, 2026.

Readers should be aware that:

^- This MD&A contains certain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") that are subject to risk factors set out in a cautionary note contained in Hudbay's MD&A.

- This MD&A 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 US issuers.

- Hudbay uses a number of non-GAAP financial performance measures in Hudbay's MD&A, which do not have standardized meaning under IFRS. For further information and detailed reconciliations of such measures, please see the discussion under the "Non-GAAP Financial Performance Measures" section herein.

- The technical and scientific information in this MD&A has been approved by qualified persons based on a variety of assumptions and estimates. Please see the discussion under the "Qualified Persons and NI 43-101" section herein.

Readers are also urged to review the "Notes to Reader" section beginning on page 73 of this MD&A.

Additional information regarding Hudbay, including the risks related to its business and those that are reasonably likely to affect its consolidated interim financial statements in the future, is contained in Hudbay's continuous disclosure materials, including its most recent Annual Information Form, consolidated interim financial statements and Management Information Circular available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.

All amounts are in US dollars unless otherwise noted.

HUDBAY'S BUSINESS

Hudbay 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. The Company's growth pipeline includes the Copper World project in Arizona (United States), the Cactus 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. Hudbay is governed by the Canada Business Corporations Act and its shares are listed under the symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima.

HUDBAY'S PURPOSE

Hudbay transforms lives: Hudbay invests in its employees, their families and local communities through long-term employment, local procurement and economic development to improve their quality of life and ensure the communities benefit from the Company's presence.

Hudbay operates responsibly: From exploration to closure, Hudbay operates safely and responsibly, welcomes innovation and strives to minimize its environmental footprint while following leading operating practices in all facets of mining.

Hudbay provides critical metals: Hudbay produces copper and other metals needed for everyday products and essential for applications to support the energy transition toward a more sustainable future.

SUMMARY

Delivered Record Third Quarter Results; Production Guidance Reaffirmed and Cost Guidance Further Improved

• Achieved record quarterly revenue of $765.9 million, net earnings attributable to owners¹ of $149.5 million, and quarterly adjusted EBITDA¹ of $413.4 million, driven by steady operating performance, attractive operating margins and strong exposure to copper and gold across Hudbay's diversified operating portfolio.

• Higher consolidated copper production of 30,152 tonnes and gold production of 69,513 ounces in the third quarter of 2026, representing a 7% and 36% increase, respectively, compared to the second quarter of 2026.

• Continued to demonstrate industry-leading margins with consolidated cash cost¹and sustaining cash cost¹, net of by-product credits, of $(0.19) and $1.61 per pound of copper respectively, in the third quarter of 2026.

• Reaffirmed full year 2026 consolidated production guidance including 110,000 to 138,000 tonnes of copper and 217,000 to 272,000 ounces of gold.

• Further improved full year 2026 consolidated cash cost¹ guidance range to $(0.55) to $(0.35) per pound of copper, an additional improvement from the previously updated guidance range of $(0.45) to $(0.25) per pound of copper, as year-to-date results are trending well below the low end of the cash cost range.

• Improved full year 2026 consolidated sustaining cash cost guidance range to $1.40 to $1.80 per pound copper from the original guidance range of $1.70 to $2.10 per pound of copper as a result of strong exposure to gold by-product credits and continued strong operating cost control. Full year 2026 consolidated sustaining capital expenditures expected to be $35 million lower than guidance levels due to lower capitalized stripping in Peru and British Columbia and capital deferrals and efficiencies.

• Peru operations demonstrated steady operating performance with production of 20,572 tonnes of copper and 5,267 ounces of gold in the third quarter of 2026. Peru cash cost¹, net of by-product credits, of $2.23 per pound exceeded the upper end of the 2026 annual guidance range of $1.70 to $2.10 per pound primarily due to lower by-product credits, partially offset by better treatment and refining charges.

• Achieved record Constancia mill throughput of approximately 91,000 tonnes per day in the third quarter, on track to achieve 34 million tonnes per annum in 2027.

• Manitoba operations demonstrated strong operating performance and executed on the commitment to deliver a stronger second half of 2026 with production of 57,261 ounces of gold, 3,012 tonnes of copper, 3,691 tonnes of zinc and 268,346 ounces of silver in the third quarter of 2026. Manitoba cash cost¹ of $403 per ounce of gold outperformed the low end of the 2026 annual guidance range of $500 to $800 per ounce as a result of higher by-product prices.

• Continued to exceed Snow Lake mill performance expectations with record New Britannia mill throughput of 2,250 tonnes per day and record Stall gold recoveries of 73.6% in the third quarter.

• British Columbia operations showed improving operating performance with production of 6,568 tonnes of copper, 6,985 ounces of gold and 52,010 ounces of silver in the third quarter of 2026, in line with quarterly cadence expectations. British Columbia cash cost¹ of $3.09 per pound of copper was higher than the annual cost guidance range of $1.50 to $2.50 per pound primarily due to elevated fuel prices, higher fuel consumption from increased material moved and timing of equipment maintenance. While British Columbia cash cost¹ is expected to improve in the fourth quarter with higher expected production volumes full year cash cost is expected to track towards the high end of the annual guidance range.

• Achieved Copper Mountain mill throughput of approximately 43,500 tonnes per day in September, reflecting successive monthly increases after the completion of mill maintenance at the primary SAG mill in July, and on track to achieve the targeted 50,000 tonnes per day by the end of the year. The third quarter represented the first quarter of positive free cash flow¹ at Copper Mountain since its acquisition by Hudbay, demonstrating the benefits from continued operating efficiencies, recent mill improvement initiatives and ongoing execution of the accelerated stripping program.

• Third quarter earnings per share attributable to owners was $0.34, reflecting strong gross profit margins as a result of the continued focus on cost control and higher metal prices more than offsetting higher input costs. After adjusting for various non-cash items on a pre-tax basis, third quarter adjusted earnings¹ per share attributable to owners was $0.34.

• Cash and cash equivalents were $788.7 million and total liquidity² was $964.3 million at the end of the third quarter of 2026, before giving effect to a $250 million increase in size to Hudbay's credit facilities in November 2026. Cash and cash equivalents exclude $50.1 million in U.S. municipal bond proceeds that are classified as restricted cash and reflect $45.0 million in net purchases of investments and $22.0 million of debt repayments during the third quarter of 2026.

Record Trailing Twelve-month EBITDA and Free Cash Flow Generation; Strong Balance Sheet and Significant Financial Flexibility

• Hudbay's unique copper and gold diversification across its operations, together with a focus on cost control across the business, continues to realize strong margins and generate significant free cash flow.

• Operating cash flow before changes in non-cash working capital was $313.9 million during the third quarter of 2026, reflecting an increase of $103.8 million compared to the second quarter as a result of record quarterly revenue and maintaining strong operating margins.

• Delivered free cash flow¹ generation of $201.9 million during the third quarter of 2026, reflecting an increase of approximately $100 million compared to the second quarter through higher production and continued strong operating margins. Generated more than $400 million of free cash flow year-to-date in 2026 despite investing over $325 million of sustaining capital in the business over this period. This has resulted in record trailing twelve month free cash flow generation of $631.0 million.

• Achieved quarterly adjusted EBITDA¹of $413.4 million in the third quarter of 2026, resulting in record trailing twelve month adjusted EBITDA¹ of $1,542.4 million.

• Recorded net debt¹of negative $0.1 million as at September 30, 2026, positioning the Company well to reinvest in high-return growth capital projects across the business, including the recently announced final investment decision ("FID") to proceed with the development and construction of Copper World.

• Net debt to adjusted EBITDA ratio¹ was 0.0x in the third quarter of 2026, significantly improved from 0.4x in the fourth quarter of 2025 as a result of the initial proceeds received from Mitsubishi Corporation ("Mitsubishi") on closing of the Copper World joint venture transaction in January 2026 along with strong cash flows from operations.

• Consistent with Hudbay's prudent balance sheet management and balanced capital allocation framework, Hudbay repaid $22.0 million of its outstanding $272 million draw on its revolving credit facilities, in the third quarter of 2026.

• As announced with the Copper World FID in October, Hudbay proactively amended and extended its existing revolving credit facilities. Total capacity under the facilities was upsized from $450 million to $700 million and the maturity date of the facilities was extended by two years to November 2030. The amended credit agreements include an improved pricing grid and greater financial flexibility that reflects Hudbay's robust cash flow, strong balance sheet position, and its recently upgraded credit rating. After adjusting for the $250 million increase in size of the credit facilities, Hudbay's proforma liquidity as of September 30, 2026 is approximately $1.2 billion.

Advancing Brownfield and Greenfield Investments to Drive Strong Returns and Significant Production Growth

• Formally approved, along with Mitsubishi, the FID to proceed with the construction and development of Copper World as the next major copper mine in the U.S. with first production targeted for the second half of 2029. The FID is supported by robust economic returns with low capital intensity outlined in the Copper World definitive feasibility study and related pre-feasibility studies (collectively, the "DFS") which delivers annual copper production of 102,000 tonnes over the first 10 years, an 11% increase when compared to 92,000 tonnes in Hudbay's 2023 pre-feasibility study for Copper World ("2023 PFS").

• The base case for Copper World contemplates a 15-year mine life utilizing mineral reserves and requires only state and local permits ("Base Case") and expands the concentrator in year five to enable a 43% increase in average annual copper production to 120,000 tonnes in years six to 10 compared to 84,000 tonnes over the first five years. The Base Case generates an after-tax net present value (8%) of $1.2 billion and internal rate of return of 17% at a long-term copper price of $5.00 per pound, which increases to $2.3 billion and 22%, respectively, at a copper price of $6.00 per pound.

• The extension case for Copper World contemplates a 37-year mine life utilizing only measured and indicated mineral resources and expands mining activities onto federal lands in year 10, subject to obtaining federal permits ("Extension Case"), maintaining annual copper production of 117,000 tonnes from years 11 to 20. The Extension Case generates an after-tax net present value (8%) of $2.5 billion and internal rate of return of 19% at a long-term copper price of $5.00 per pound, increasing to $4.0 billion and 24%, respectively, at a copper price of $6.00 per pound.

• As a result of Hudbay's capital allocation strategy and prudent Copper World funding plan, the levered internal rate of return to Hudbay increases to 32% at $5.00 per pound of copper long-term in the Base Case and to 44% at $6.00 per pound of copper in the Extension Case.

• Enhanced the gold production profile at Snow Lake and extended reserve mine life to 18 years with updated life of mine plan released in September. Total life-of-mine gold production increased by 60% and reserve mine life extended by an additional two years to 2043, which together with the four-year extension in March 2026 represents a total of six years added to the reserve mine life.

• Updated five-year average³ annual gold production of 185,000 ounces reflects continued strong mill throughput rates at New Britannia and higher gold recoveries at Stall, representing a 37% increase in total gold production from an additional 250,000 ounces produced over the same five-year period in the Snow Lake 2021 technical report.

• Snow Lake updated mineral reserve estimates increased contained gold to 2.0 million ounces, and the updated mine plan represents a conservative view based on Hudbay's historical high resource-to-reserve conversion rate of 90%⁴ and ongoing exploration activities. There remains 1.5 million ounces of gold contained in inferred mineral resource estimates.

• Implementing mill enhancements at Constancia to drive further increases in mill throughput and copper recoveries. The completion of the installation of a third rougher line late in the third quarter is expected to drive higher copper recoveries starting in the fourth quarter. The installation of two pebble crushers is nearing completion with commissioning expected in November, resulting in increased processing capacity at the Constancia mill.

• Advancing the development of infrastructure at the New Ingerbelle extension project in British Columbia and de-risking the path to first production in late 2028. New Ingerbelle is expected to enhance the copper and gold production profile and secure a longer mine life at Copper Mountain.

• Advancing the recently acquired Cactus project in Arizona by initiating pre-feasibility study ("PFS") activities, including multiple trade-off studies, with completion expected in the second half of 2027.

• Continuing to derisk the long-term Mason project in Nevada through PFS and other site activities. The Mason PFS is expected to be completed in the second half of 2027.

Positive Exploration Results Across the Business

• Recent exploration drilling in Peru intersected a potential new high-grade feeder system at Constancia in multiple drill holes, with highlights including 245 metres of 0.43% copper and 0.03% molybdenum, indicating high-grade expansion potential beneath and adjacent to the existing reserve and resource envelope. Follow up drilling is underway.

• Continuing to execute an extensive exploration program in Snow Lake from recently developed underground exploration drifts at Lalor and 1901 to enable infill drilling and testing of mineralized extensions, while also testing identified high-priority targets at the former producing New Britannia gold mine currently on care and maintenance (the "Britannia Gold Project"). Regional geophysics, mapping, structural modeling and data compilations underway to support target definition for new anchor deposits.

• Completing a targeted drilling program at New Ingerbelle focused on upgrading existing inferred resources to reserves to further optimize and extend the mine life at Copper Mountain. Results are expected to be incorporated in Hudbay's annual reserve and resource update in March 2027.

Summary of Third Quarter Results

Hudbay's diversified asset portfolio delivered consolidated copper production of 30,152 tonnes and consolidated gold production of 69,513 ounces in the third quarter of 2026, positioning the Company well to meet full-year 2026 consolidated production guidance. Consolidated copper production was higher than the second quarter of 2026 as a result of record high mill throughput in Peru and higher grades offsetting lower mill throughput in British Columbia. Consolidated gold production was higher than in the second quarter of 2026 primarily due to increased throughput and grades in Manitoba. Consolidated silver production of 897,587 ounces was higher than the second quarter of 2026 primarily driven by increased mill throughput and higher grades, while zinc production of 3,691 tonnes in the third quarter of 2026 decreased compared to the second quarter of 2026, primarily reflecting lower zinc grades at the Manitoba operations.

Cash generated from operating activities was $214.9 million during the third quarter of 2026, reflecting a decrease of $82.1 million compared to the second quarter of 2026 and an increase of $101.4 million compared to the same period in 2025. The sequential decrease was primarily driven by unfavourable changes in non-cash working capital, whereas the year-over-year increase was supported by higher realized metal prices and higher sales volumes following full operational recovery in Manitoba after the 2025 wildfires and the timing of concentrate shipments. Operating cash flow before changes in non-cash working capital was $313.9 million during the third quarter of 2026, an increase of $103.8 million compared to the second quarter of 2026, primarily reflecting higher realized copper prices and increased sales volumes.

Adjusted EBITDA¹was $413.4 million in the third quarter of 2026, a 29% increase compared to $321.2 million in the second quarter of 2026, primarily due to higher realized copper prices and higher copper, gold and silver sales volumes. Third quarter adjusted EBITDA¹ increased by 190% compared to $142.6 million in the third quarter of 2025 as a result of higher realized metal prices and higher copper, gold, and silver sales volumes.

Net earnings attributable to owners was $149.5 million, or $0.34 per share, in the third quarter of 2026 compared to $137.4 million, or $0.34 per share, in the second quarter of 2026. The strength in aggregate earnings resulted from the aforementioned high revenue due to higher sales volumes of all metals, and cost control resilience in the face of higher diesel prices.

Adjusted net earnings attributable to owners¹and adjusted net earnings per share attributable to owners¹ in the third quarter of 2026 were $149.5 million and $0.34 per share, respectively, after adjusting for various non-cash items on a pre-tax basis including $13.4 million in evaluation expenses, a $5.4 million mark-to-market revaluation net loss on various financial instruments, share-based compensation and offsetting mark-to-market gains on investments, a non-cash $11.8 million gain in re-evaluation adjustment on environmental provisions, among other items. This compares to adjusted net earnings attributable to owners¹ and net earnings per share attributable to owners¹ of $113.5 million and $0.28 per share, respectively, in the second quarter of 2026. The increase is a result of higher realized metal prices for copper and zinc and the aforementioned higher sales volumes.

Consolidated cash cost¹, net of by-product credits, in the third quarter of 2026 was $(0.19) per pound of copper, compared to $(0.40) per pound in the second quarter of 2026. The increase from the second quarter of 2026 was in line with the expected cost cadence and is the result of lower by-product credits and slightly higher mine operating costs. When compared to the third quarter of 2025, consolidated cash cost¹, net of by-product credits¹ decreased by $0.61 per pound of copper as a result of higher copper production and higher by-product credits.

Consolidated sustaining cash cost¹, net of by-product credits, in the third quarter of 2026 was $1.61 per pound of copper, compared to $1.39 per pound in the second quarter of 2026. This increase was primarily due to the same factors impacting consolidated cash cost noted above. When compared to the third quarter of 2025, consolidated sustaining cash cost¹, net of by-production credits decreased by $0.48 per pound of copper due to the same factors impacting consolidated cash cost noted above, partially offset by higher planned sustaining capital spending across the operations.

Consolidated all-in sustaining cash cost¹, net of by-product credits, in the third quarter of 2026 was $2.25 per pound of copper, higher than the second quarter of 2026 due to the same reasons noted above.

As at September 30, 2026, total liquidity² was $964.3 million, including $788.7 million in cash and cash equivalents, which excludes $50.1 million in U.S. municipal bond proceeds that are classified as restricted cash, and undrawn availability of $175.6 million under Hudbay's revolving credit facilities (prior to giving effect to the $250 million increase in size to the credit facilities in November 2026). Cash and cash equivalents reflect $45.0 million in net purchases of investments and $22.0 million in debt repayments during the third quarter of 2026. Net debt¹ at the end of the third quarter was negative $0.1 million. Hudbay expects that its current liquidity, together with cash flows from operations, will be sufficient to meet the Company's liquidity needs for the next 12 months. With the successful execution of its disciplined capital allocation strategy, attracting Mitsubishi as a long-term strategic joint venture partner and a prudent project funding plan, Hudbay's Copper World capital contributions are expected to be approximately $500 million, representing less than 25% of the initial growth capital, with capital contributions not expected to be required until 2028.

² Liquidity includes $788.7 million in cash and cash equivalents and $175.6 million in undrawn availability under Hudbay's revolving credit facilities, and excludes both $50.1 million in municipal bond proceeds classified as restricted cash and the $250.0 million credit facility increase completed in November 2026

³ Snow Lake average gold production over the 2026 to 2030 five-year period. Total life-of-mine ("LOM") gold production compares total LOM gold production in the 2021 technical report to total LOM gold production in the 2026 updated mine plan plus actual production since 2021.

⁴Snow Lake resource-to-reserve conversion rate based on the historical conversion at the Lalor deposit from from 2022 to 2026.

KEY FINANCIAL RESULTS

Financial Condition
(in $ millions, except net debt to adjusted EBITDA ratio)		Sep. 30, 2026			Dec. 31, 2025
Cash and cash equivalents¹	$	788.7		$	568.9
Total long-term debt		838.7			1,008.6
Net debt^{2, 3}		(0.1	)		439.7
Working capital⁴		845.1			(65.6	)
Total assets		8,360.9			6,223.3
Equity attributable to owners of the Company		4,949.6			3,231.0
Net debt to adjusted EBITDA ²		0.0			0.4

¹As at September 30, 2026 cash and cash equivalents include $290.1 million in cash held by Copper World LLC. These funds are contractually restricted solely for the advancement of the Copper World project and are not available to the general Hudbay group, and excludes $50.1 million of restricted cash related to unspent proceeds from senior unsecured municipal bond financing.

²This is considered a non-GAAP financial performance measures with no standardized definition under IFRS. For further information, please see discussion under the "Non-GAAP Financial Performance Measures" section of this MD&A.

³Hudbay calculates net debt as total long-term debt less cash and cash equivalents and restricted cash related to unspent proceeds of its senior unsecured municipal bond financing.

⁴Working capital is determined as total current assets less total current liabilities as defined under IFRS and disclosed on the consolidated interim financial statements.

Financial Performance		Three months ended							Nine months ended
(in $ millions, except per share amounts or as noted below)		Sep. 30, 2026		Jun. 30, 2026		Sept. 30, 2025			Sep. 30, 2026		Sept. 30, 2025
Revenue	$	765.9	$	631.3	$	346.8		$	2,154.5	$	1,478.1
Cost of sales		419.7		362.3		281.5			1,171.3		1,005.0
Earnings before tax		290.2		240.4		330.5			869.6		654.9
Net earnings		151.0		138.1		222.4			480.6		436.3
Net earnings attributable to owners		149.5		137.4		222.4			477.3		440.5
Basic and diluted earnings per share - attributable		0.34		0.34		0.56			1.20		1.11
Adjusted earnings per share - attributable¹		0.34		0.28		0.03			1.07		0.45
Operating cash flow before change in non-cash working capital		313.9		210.1		70.3			732.7		427.4
Adjusted EBITDA¹		413.4		321.2		142.6			1,156.5		675.0
Free cash flow¹		201.9		101.8		(16.1	)		406.6		154.7

KEY PRODUCTION RESULTS

		Three months ended			Nine months ended		Guidance
		Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025	Annual 2026
Contained metal in concentrate and doré produced¹
Copper	tonnes	30,152	28,267	24,205	86,348	85,119	110,000 - 138,000
Gold	oz	69,513	51,234	53,581	182,447	183,636	217,000 - 272,000
Silver	oz	897,587	845,161	730,394	2,530,197	2,465,158	2,900,000 - 3,690,000
Zinc	tonnes	3,691	4,760	548	13,016	11,943	16,000 - 21,000
Molybdenum	tonnes	301	277	185	958	957	900 - 1,100
Payable metal sold
Copper	tonnes	30,223	23,780	18,280	83,547	80,402
Gold²	oz	61,033	56,266	38,279	183,861	175,837
Silver²	oz	839,702	674,490	418,418	2,437,243	2,319,546
Zinc	tonnes	4,887	2,635	3,452	11,419	11,180
Molybdenum	tonnes	270	298	269	943	1,144

¹Metal reported in concentrate is prior to deductions associated with smelter contract terms and includes other secondary products.

² Includes total payable gold and silver in concentrate and in doré sold and other secondary products.

KEY COST RESULTS

		Three months ended					Nine months ended				Guidance
		Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025	Sep. 30, 2026		Sep. 30, 2025		Annual 2026²
Peru cash cost per pound of copper produced
Cash cost¹	$/lb	2.23		1.66		1.30	1.53		1.29		1.40 - 1.80
Sustaining cash cost¹	$/lb	3.23		2.71		2.11	2.45		2.23
Manitoba cash cost per ounce of gold produced
Cash cost¹	$/oz	403		776		379	508		491		500 - 800
Sustaining cash cost¹	$/oz	898		1,358		762	1,004		787
British Columbia cash cost per pound of copper produced
Cash cost¹	$/lb	3.09		3.22		3.21	2.95		2.63		1.50 - 2.50
Sustaining cash cost¹	$/lb	6.30		6.23		7.43	6.68		5.44
Consolidated cash cost per pound of copper produced
Cash cost¹	$/lb	(0.19	)	(0.40	)	0.42	(0.78	)	(0.06	)	(0.55) - (0.35)
Sustaining cash cost¹	$/lb	1.61		1.39		2.09	1.01		1.44		1.40 - 1.80
All-in sustaining cash cost¹	$/lb	2.25		1.80		2.82	1.63		1.88

²Further improved full year 2026 consolidated copper cash cost guidance range to $(0.55) to $(0.35) per pound from prior guidance range of $(0.45) to $(0.25) per pound and the original guidance range of $(0.30) to $(0.10) per pound. Improved full year 2026 consolidated sustaining cash cost guidance range to $1.40 to $1.80 per pound from the original guidance range of $1.70 to $2.10 per pound.

RECENT DEVELOPMENTS

Approved Copper World Project Construction; Advancing Next Major U.S. Copper Mine Towards First Production in 2029

Hudbay and Mitsubishi have formally approved the FID to proceed with the construction and development of Copper World as the next major copper mine in the U.S. with first production targeted for the second half of 2029. Hudbay filed the National Instrument 43-101 ("NI 43-101") technical report in support of the DFS in October 2026, concurrently with the Copper World FID.

Copper World will be one of the largest open-pit copper mines in the United States. It is anticipated to increase Hudbay's consolidated annual copper production to approximately 250,000 tonnes, doubling current production levels together with other brownfield growth projects underway. The DFS outlines annual copper production of 102,000 tonnes over the first 10 years, an 11% increase when compared to 92,000 tonnes in Hudbay's 2023 PFS. Copper World is expected to deliver average annual EBITDA¹ of $661 million over the first 10 years in the Base Case and $735 million over the next 10 years in the Extension Case at a copper price of $5.00 per pound. Using a copper price of $6.00 per pound, Copper World's annual EBITDA over these periods increases to $859 million and $963 million in the Base Case and Extension Case, respectively, representing an 80% to 90% increase in Hudbay's consolidated annual EBITDA as compared to 2025.

The Base Case presented in the DFS is used to support the mineral reserve estimates of 390 million tonnes with strong copper grades of 0.47% over a 15 year mine plan. Total mill feed tonnage in the Base Case is comparable to the 2023 PFS. The Base Case is limited to the exterior boundary of Copper World's private landholdings requiring only state and local permits. All major permits have been obtained for construction and initial operations.

• Base Case after-tax net present value (8%) is $1.2 billion with an internal rate of return of 17% and an initial payback period of 5.4 years at a long-term copper price of $5.00 per pound. At a copper price of $6.00 per pound, the after-tax net present value (8%) increases to $2.3 billion and the internal rate of return increases to 22%.

• Base Case average annual copper production is 102,000 tonnes over the first 10 years at average cash costs² and sustaining cash costs² of $1.65 and $2.22 per pound of copper, respectively.

• Base Case further optimizes the 2023 PFS mine plan with an in-pit crushing and conveying system in year four and an expansion of the concentrator from 60,000 tons per day to 90,000 tons per day in year five.

• Concentrator expansion enables a 43% increase in average annual copper production to 120,000 tonnes in years six to 10 compared to 84,000 tonnes over the first five years.

• Base Case annual average EBITDA is $566 million over the mine life at a long-term copper price of $5.00 per pound, increasing to $742 million at a long-term copper price of $6.00 per pound.

The Extension Case reflects a phased development approach that minimizes initial waste rock movement while operations remain constrained to the existing exterior boundary over the first 10 years and then expand beyond Copper World's private property and onto its unpatented lode and mill site claims starting in year 10 to achieve and sustain a higher total material movement capacity. The Extension Case contemplates a 37-year mine life utilizing only measured and indicated mineral resources totalling 1,048 million tonnes and requires federal permits by year 10 of operations.

• Extension Case after-tax net present value (8%) is $2.5 billion with an internal rate of return of 19% and an initial payback period of 5.4 years at a long-term copper price of $5.00 per pound. At a copper price of $6.00 per pound, the after-tax net present value (8%) increases to $4.0 billion and the internal rate of return increases to 24%.

• Extension Case average annual copper production over the first 10 years is similar to the Base Case with 101,000 tonnes and increases to 117,000 tonnes over the period from year 11 to 20. Average cash costs² and sustaining cash costs² over the 10-year period from year 11 to 20 are expected to be $1.76 and $2.20 per pound of copper, respectively.

• Extension Case average annual EBITDA is $522 million over the mine life and $735 million over the period from year 11 to 20 at a long-term copper price of $5.00 per pound.

Copper World is one of the lowest capital intensity copper projects, maintaining an attractive capital intensity of approximately $22,600 per annual copper tonne using average production in years five to twelve, including the expansion growth capital in years three and four. With initial growth capital of $2.07 billion³ ($1.84 billion net of precious metals stream deposit), which includes approximately $200 million related to changes in project scope since the 2023 PFS, Hudbay has put in place prudent funding and a low leverage financing plan. The sources of capital include Mitsubishi's $600 million initial joint venture equity investment and Wheaton Precious Metals Corp.'s $230 million deposit for the existing precious metals stream, followed by approximately $650 million in anticipated project-level debt financing, representing less than 30% leverage. This defers the Hudbay's first pro-rata equity capital contribution to 2028.

With the prudent funding structure, the levered internal rate of return to Hudbay increases to 32% at $5.00 per pound of copper long-term in the Base Case and to 44% at $6.00 per pound of copper in the Extension Case. Copper World's FID enables Hudbay to deliver its growth initiatives and maximize long-term risk-adjusted returns, while maintaining strong financial discipline within Hudbay's holistic capital allocation framework.

Hudbay's 2026 growth capital spending guidance related to the Copper World joint venture includes approximately $135 million of expenditures before the FID. As previously disclosed with the sanctioning of Copper World, the Company now expects full year growth expenditures related to the Copper World joint venture to total $245 million in 2026, reflecting an increase of $110 million related to project construction and development costs in the fourth quarter of 2026, as previously disclosed with the FID announcement in October 2026.

Executing Staged U.S. Growth Investment Strategy to Unlock Copper Growth Pipeline

Hudbay continues to invest across its United States platform beyond Copper World through advancing PFS activities at both Cactus and Mason. These assets along with Copper World strengthen Hudbay's position as a premier Americas-focused copper company with a pipeline of long-life, low-cost assets located in tier-one jurisdictions.

The Cactus project is a highly complementary copper growth asset in Arizona, with potential to generate significant operational efficiencies and regional synergies with Hudbay's staged development of Copper World and Cactus. After the completed acquisition of Arizona Sonoran Copper Company Inc. in the second quarter of 2026, Hudbay announced it expects to spend approximately $30 million at Cactus in the second half of the year to advance an updated PFS, perform site de-risking activities, conduct exploration activities and for other ongoing site costs. The updated Cactus PFS, including multiple trade-off studies, is expected to be completed in the second half of 2027.

The Mason project, in Nevada, is one of the largest undeveloped copper porphyry deposits in North America and is viewed as a long-term future development asset as part of Hudbay's pipeline of high-quality copper growth opportunities. The Company continued to progress PFS activities at Mason during the quarter and expects to spend approximately $20 million in evaluation expenses at Mason in 2026, as announced previously. The Mason PFS is approximately 45% complete and is expected to be completed in the second half of 2027.

Enhanced Gold Production Profile at the Snow Lake Operations

Hudbay released an updated Snow Lake mine plan on September 28, 2026. The updated Snow Lake mine plan reflects a 37% increase in gold production over the next five years⁴ and a 60% increase in total gold production over the life-of-mine, based on current mineral reserves, compared to the prior 2021 Snow Lake technical report. The updated Snow Lake mine plan maintains average production of 185,000 ounces of gold over the next five years⁴ reflecting several optimization initiatives including higher mill throughput at New Britannia and higher gold recoveries at the Stall mill to better utilize the combined 6,300 tonnes per day of processing capacity.

The updated Snow Lake mine plan reflects a mining ramp up to approximately 2.0 million tonnes per year and maintains this profile over the next decade. This reflects Lalor operating at 4,000 to 4,500 tonnes per day, supplemented by contributions from the 1901 deposit and several additional satellites to supplement Lalor mill feed and increase total ore mined to approximately 5,000 tonnes per day.

Snow Lake's proven and probable reserve mine life has been extended by an additional two years to 2043, which together with the four-year extension announced in March 2026 represents a total of six years added to the reserve mine life. Current mineral reserve estimates in Snow Lake as of September 1, 2026 total 27.0 million tonnes with approximately 2.0 million ounces of gold. This represents an increase in mineral reserves of 7.5 million tonnes, unlocking 124,000 ounces of additional gold. Hudbay filed a technical report pursuant to NI 43-101 in support of the updated mine plan for Snow Lake on November 6, 2026.

The increase in reserves and extension of mine life is due to resource conversion at Lalor and 1901, higher reserves at the WIM and 3 Zone satellite deposits, and the first reserve estimates for the Talbot and Rail satellite deposits following the completion of infill and geotechnical drilling. Hudbay expects to continue to achieve high rates of resource to reserve conversion and further optimize the mine plan.

The Snow Lake mine plan has been optimized for higher mill throughput rates at New Britannia maximizing gold production and cash flows. The New Britannia mill currently operates at more than 2,000 tonnes per day, continuing to exceed nameplate design of 1,500 tonnes per day, and the updated mine plan reflects New Britannia ramping up to 2,300 tonnes per day starting in 2027. The updated mine plan also reflects an additional recovery improvement project at Stall that aims to recover additional gold and silver through expansion of cyanide leaching and carbon adsorption infrastructure at New Britannia to accommodate material from Stall (the "Stall Hot Tails Leaching" project). Commissioning of Stall Hot Tails Leaching project is expected in early 2028 and it is anticipated to increase overall gold and silver recoveries.

Manitoba Exploration Strategy to Further Optimize the Mine Plan and Discover a New Anchor Deposit

Hudbay continues to advance many brownfield expansion and exploration opportunities in Snow Lake to further optimize the mine plan to maintain current annual gold production levels beyond 2030, extend mine life beyond 2043 and explore for new anchor deposits to provide significant gold production growth beyond the 180,000-ounce annual target. This includes executing an extensive exploration program in Snow Lake and more broadly across its highly prospective land package extending over 400,000 hectares across the Flin Flon, Snow Lake greenstone belt.

1) Conversion of Large Inferred Resources to Further Increase Production and Extend Mine Life - Continued infill drilling of existing resource base at Lalor and known satellites will continue to support mine plan optimization.

• Potential to convert the 1.5 million ounces of gold in inferred resources to reserves through infill drilling.

• Hudbay has historically converted approximately 90% of inferred resources to reserves at the Lalor deposit over the past five years⁵.

2) Extension of the Current Anchor Deposit at Lalor - Maximize value from existing infrastructure through mine life extension at the highest margin deposits, while extending the window of opportunity to discover a new anchor deposit.

• Lalor and 1901 continue to show extensions of high-grade, stacked lenses, and remain open down plunge.

• Mine life extensions at the current anchor will further increase cash flows and defer growth capital associated with the development of satellite deposits.

3) Discovery of a New Anchor Deposit - Meaningfully add to current production levels and significantly extend mine life through the discovery of the next major anchor deposit in the region.

• The Britannia Gold Project provides the opportunity to re-develop an underexplored, past-producing deposit with the potential to become a new anchor in the Snow Lake camp.

• Regional exploration on the large and highly prospective land package, including exploration for both volcanogenic massive sulphide (VMS) and orogenic gold deposits.

In the third quarter of 2026, advancement of underground exploration drifts at both Lalor and 1901 established new drilling platforms that will enable additional infill drilling of inferred resources and testing for extensions along mineralized trends in the high-grade copper-gold zones. At the Britannia Gold Project, digitization and remodeling of decades of historical data has identified several high-priority target areas laterally and down-plunge from known mineralization. Drilling from surface is currently underway and progressing in parallel to the assessment of options to restore historical underground access from the New Britannia shaft infrastructure. Regional airborne geophysics, mapping, structural modeling and data compilations progressed in the third quarter in both the Flin Flon and Snow Lake areas to support target definition for new anchor deposits.

Constancia Drilling Campaign Intersects Potential High-Grade Copper-Molybdenum Feeder System

Hudbay's ongoing 2026 drilling exploration program at the Constancia operations in southern Peru has demonstrated high-grade expansion potential beneath and adjacent to the existing reserve and resource envelope, within the Company's existing area of operations.

Two deep diamond drill holes, successfully intersected lateral and down-dip extensions of the skarn envelopes and mineralized breccia zones below and adjacent to the Constancia pit. Drill holes CO-26-003 and CO-26-005 intersected significant widths of mineralized breccia extending beyond the limits of the current resource at grades higher than current reserve grades. A re-assessment of the localized structural and geological controls on mineralization is underway to support target definition for follow up drilling. The initial results indicate meaningful width and grade, while showing potential for orebody extensions at depth.

Highlights of the breccia drill hole intercepts are as follows:

• Hole CO-26-003 intersected 245 metres at 0.43% copper and, 0.03% molybdenum, including 124 metres at 0.55% copper and 0.05% molybdenum from 478 metres.

• Hole CO-26-005 intersected 302 metres at 0.36% copper and 0.02% molybdenum from 396 metres including 64 metres at 0.50% copper and 0.04% molybdenum from 618 metres.

Hudbay intends to continue ongoing geological and geochemical vectoring investigations to confirm the geometry and structural controls of this interpreted feeder system, as well as continue the exploration drilling to determine the potential scale and economic potential of mineralization both down-plunge and at depth. This high-grade system has the potential to enhance Constancia's long-term production profile.

New Ingerbelle Infill and Expansion Drilling Nearing Completion

Hudbay is nearing completion of a 66,000-metre drill program aimed at converting inferred resources to measured and indicated categories at the New Ingerbelle deposit as well as testing possible extensions beyond the limits of the current mineral resource, the results of which are expected to be reflected in Hudbay's annual mineral reserves and resources update in March 2027. Additional geotechnical drilling and geometallurgical sampling are underway to support mine plan optimization and metallurgical recovery modeling.

Proactive Two-Year Extension and Upsize of Senior Secured Revolving Credit Facilities

In November 2026, Hudbay completed the amendments to its senior secured revolving credit facilities to improve balance sheet resilience with a proactive two-year extension and upsize of the facilities. Under the amended credit agreements, the size of the credit facilities has been increased from the existing $450 million to $700 million, and the term has been extended to November 2030, providing additional financial flexibility to manage the maturity of Hudbay's 2029 senior unsecured notes and develop the Copper World project. The amended credit agreement includes an improved pricing grid and greater financial flexibility that reflects Hudbay's enhanced financial position and features an opportunity to increase the facilities by an additional $150 million at Hudbay's discretion during the four-year tenor. After adjusting for the $250 million increase in size of the credit facilities, Hudbay's proforma liquidity as of September 30, 2026 is approximately $1.2 billion.

Industry Recognition of Hudbay's Growth Success

Hudbay has recently received multiple recognitions and inclusions on top growing company lists. These milestones, achieved on the eve of the Company's centennial, reflect Hudbay's consistent operational execution, strong financial performance, and commitment to delivering industry-leading shareholder returns as a premier Americas-focused copper producer.

In September 2026, Hudbay was recognized as a 2026 TSX30™ Top Performer by the Toronto Stock Exchange, ranking among the top 30 performing stocks over the past three years, driven by a 430% dividend-adjusted share price increase over a three-year period.

In September 2026, Hudbay was ranked as one of Canada's Top Growing Companies of 2026 by the Globe and Mail's Report on Business, recognizing the Company's 51% growth rate in revenues over the past three years.

Furthermore, in October, Hudbay was recognized on the Fortune Fastest Growing Companies™ 2026 list, which highlights publicly traded companies demonstrating exceptional growth across key financial measures. This recognition evaluates companies based on their revenue growth, earnings-per-share growth, and three-year annualized total return, requiring qualifying companies to have posted an annualized growth in revenue and earnings per share of at least 15% annually over a three-year period.

Key Leadership Appointment

Following the quarter, Hudbay has appointed Chad Vinkle as Vice President and Head of the British Columbia Business Unit. Prior to his appointment, Mr. Vinkle had been serving as General Manager of Operations at Copper Mountain mine where he paired robust safety standards with operational efficiency that contributed to the site achieving productivity and safety objectives under his leadership. Mr. Vinkle brings over 30 years of industry experience, including nearly a decade with Hudbay acting as General Manager at Hudbay's Lalor operations in Manitoba.

Board Appointment

During the quarter, Hudbay announced the appointment of Thomas Schulz to the Company's Board of Directors. Mr. Schulz's extensive leadership experience across the globe and significant knowledge of the mining industry make him an excellent addition to the Board as Hudbay continues to grow through its strong pipeline of brownfield and greenfield projects.

Mr. Schulz is currently the Chief Executive Officer of Bilfinger SE, a German-based industrial service provider with a global footprint in the process industry. His executive leadership experience spans over 25 years and includes nine years as the Group CEO of FLSmidth, a leading provider of services and solutions to the mining industry, and more than a decade at Sandvik, where he rose through multiple senior executive roles, including as President of Sandvik Construction. Mr. Schulz also has significant board experience, including several years as a director at Norsk Hydro ASA and Boart Longyear Group Ltd, and more recently at Konecranes PLC, where he currently serves as a director. Mr. Schulz holds a PhD in mineral mining and quarrying and an engineering diploma in mineral processing from RWTH Aachen University.

Dividend Declared

A quarterly dividend of C$0.01 per share was declared on November 11, 2026. The dividend will be paid out on December 18, 2026 to shareholders of record as of close of business on December 1, 2026.

² Copper World cash costs and sustaining cash costs are non-GAAP financial performance measures with no standardized definition under IFRS. Sustaining cash costs includes sustaining capital expenditures, equipment financing and royalties. By-product credits calculated using amortization of deferred revenue for gold and silver stream sales. By-products calculated assuming the following long-term commodity prices: gold stream price of $540 per ounce (representing 15% of market price), silver stream price of $6.75 per ounce (representing 15% of market price), and molybdenum price of $17.50 per pound.

³ Copper World total initial growth capital expenditures less $127 million of equipment financing. Equipment financing payments are incorporated in sustaining cash costs.

⁴ Snow Lake average gold production over the 2026 to 2030 five-year period. Total life-of-mine ("LOM") gold production compares total LOM gold production in the 2021 technical report to total LOM gold production in the 2026 updated mine plan plus actual production since 2021.

⁵ Snow Lake resource-to-reserve conversion rate based on the historical conversion at the Lalor deposit from 2022 to 2026.

PERU OPERATIONS REVIEW

		Three months ended			Nine months ended
		Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025
Constancia ore mined¹	tonnes	12,667,888	10,962,399	564,579	34,331,662	15,928,174
Copper	%	0.27	0.28	0.25	0.28	0.31
Gold	g/tonne	0.03	0.04	0.02	0.03	0.03
Silver	g/tonne	3.40	3.68	1.92	3.40	3.15
Molybdenum	%	0.01	0.01	0.01	0.01	0.02
Pampacancha ore mined^1,2	tonnes	-	-	4,260,081	-	5,411,442
Copper	%	-	-	0.38	-	0.37
Gold	g/tonne	-	-	0.31	-	0.30
Silver	g/tonne	-	-	4.87	-	4.74
Molybdenum	%	-	-	0.01	-	0.01
Total ore mined	tonnes	12,667,888	10,962,399	4,824,660	34,331,662	21,339,616
Strip ratio³		0.66	0.88	1.38	0.78	1.26
Ore milled	tonnes	8,402,491	7,827,509	6,991,744	24,393,847	22,664,815
Copper	%	0.30	0.30	0.31	0.30	0.32
Gold	g/tonne	0.04	0.04	0.16	0.05	0.09
Silver	g/tonne	3.44	3.75	3.94	3.42	3.56
Molybdenum	%	0.01	0.01	0.01	0.01	0.01
Copper concentrate	tonnes	96,837	90,500	82,796	281,041	269,780
Concentrate grade	% Cu	21.24	21.49	21.88	21.56	22.28
Copper recovery	%	82.7	82.0	83.2	82.0	84.2
Gold recovery	%	45.7	48.8	72.1	52.2	65.4
Silver recovery	%	62.1	59.9	65.2	62.3	64.9
Molybdenum recovery	%	34.2	39.9	33.9	36.6	36.2
Combined unit operating costs^4,5	$/tonne	13.60	14.06	13.03	13.09	12.52

¹Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled.

²Pampacancha has been depleted as of December 31, 2025.

³Strip ratio is calculated as waste mined divided by ore mined.

⁴Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.

⁵ This is considered a non-GAAP financial performance measures with no standardized definition under IFRS. For further information, please see discussion under the "Non-GAAP Financial Performance Measures" section of this MD&A.

Three months ended

Nine months ended

Sep. 30,
2026

Jun. 30,
2026

Sep. 30,
2025

Sep. 30,
2026

Sep. 30,
2025

Contained metal in concentrate produced

Copper

tonnes

20,572

19,446

18,114

60,591

60,117

Gold

5,267

5,282

26,380

19,319

41,615

Silver

577,231

564,505

577,446

1,672,935

1,684,117

Molybdenum

tonnes

301

277

185

958

957

Payable metal sold

Copper

tonnes

21,382

15,755

11,769

58,193

56,077

Gold

3,238

4,042

9,798

22,442

33,881

Silver

518,411

418,640

258,215

1,613,170

1,589,448

Molybdenum

tonnes

270

298

269

943

1,144

Cost per pound of copper produced

Cash cost¹

$/lb

2.23

1.66

1.30

1.53

1.29

Sustaining cash cost¹

$/lb

3.23

2.71

2.11

2.45

2.23

Overview

The Peru operations continued to demonstrate steady operating performance during the third quarter of 2026, with production and costs well-positioned to achieve the annual guidance ranges. Constancia achieved record quarterly total material moved at the mine and record quarterly ore milled during the third quarter of 2026, reflecting the benefits from efforts to improve productivity and further optimize the operations.

The Company completed the installation of a third rougher line in September, which resulted in immediate improvements in copper recoveries. Hudbay continues to advance the installation of pebble crushers at Constancia to increase mill throughput rates starting in the fourth quarter of 2026, which will allow the mine to continue to deliver steady annual copper production despite lower grades following the depletion of Pampacancha at the end of 2025.

As part of the Company's continuous improvement efforts, Hudbay obtained updated permits in 2026 to enable additional capacity to further optimize Constancia's operations and deliver strong copper production. In June 2026, the Company received approval from the National Environmental Certification Service for Sustainable Investments in Perú (SENACE) to amend its environmental permit and further increase annual mill processing capacity at Constancia. This represented the fifth environmental permit amendment at Constancia. The amended permit increases the processing capacity of the Constancia mill to 34 million tonnes of ore per annum from the previously permitted 31 million tonnes per annum. The corresponding operating permit for this expansion is expected to follow in due course. In March 2026, Hudbay received the previous operating permit to increase mill throughput capacity to 31 million tonnes from 29.9 million tonnes per annum. The Peru Ministry of Energy and Mines' regulatory framework provides operational flexibility to handle daily increases of up to 10% above permitted levels.

Mining Activities

Total material moved during the third quarter of 2026 was 25.0 million tonnes, representing a 51% increase compared to the same period in 2025. This robust performance was driven by steady mining operations in the Constancia pit, where truck fleet utilization reached 77%, up significantly from 59% in the prior year period when mining in Constancia was restricted to approximately 21 days due to regional social unrest. Exclusive focus on mining in one pit during the third quarter of 2026 unlocked substantial operational efficiencies, including shorter hauling distances and improved productivity resulting from haul route optimizations. These optimizations resulted in achieving a new monthly record for total volume of material moved in July 2026.

Total ore mined during the quarter increased by 16% to 12.7 million tonnes, compared to the second quarter of 2026, supported by active mining across three exposed ore phases and positive reconciliation yielding higher tonnage than predicted by the geological model.

Year-to-date total material moved was 26% higher than the same period in 2025, while year-to-date ore mined increased by 61% compared to the prior year period, driven by the same structural and fleet efficiency improvements noted in the quarterly variance, as well as positive reconciliation obtaining ore instead of waste.

Milling Activities

Constancia achieved record mill throughput levels of approximately 91,300 tonnes per day in the third quarter of 2026, representing a 7% increase compared to the second quarter of 2026, primarily due to higher plant availability and lower ore hardness, as well as the benefits of increased mill processing capacity supported by the recently approved permit amendment. Milled copper grades and gold grades remained consistent with the second quarter of 2026. Compared to the third quarter of 2025, milled copper grades decreased slightly and gold grades declined by 75% primarily due to mining exclusively within the Constancia pit, compared to a two-pit operation with mining in the higher-grade Pampacancha satellite pit in the prior year period. Metal recoveries remained in line with expectations.

Year-to-date ore milled was higher than the comparable period in 2025, largely driven by plant mechanical availability. Year-to-date milled copper and gold grades were lower than the same period in 2025 for the same reasons noted above. Copper recoveries during the nine months ended September 30, 2026 averaged 82%, a 3% decline compared to the same year-to-date period in 2025, driven by lower head grades and a higher proportion of stockpile ore feed. Gold and silver recoveries during the nine months ended September 30, 2026 were 52% and 62%, respectively, representing a decrease compared to the same year-to-date period in 2025 of 20% and 4%, respectively, but remained in line with Hudbay's metallurgical models.

Production and Sales Performance

During the third quarter of 2026, the Peru operations produced 20,572 tonnes of copper, 5,267 ounces of gold, 577,231 ounces of silver and 301 tonnes of molybdenum. Production of copper, silver and molybdenum was slightly higher compared to the second quarter of 2026, reflecting higher mill throughput as a result of efficiency improvements and the impacts of the planned semi-annual plant maintenance shutdown during the second quarter of 2026. Production of gold was comparable to the second quarter of 2026. Compared to the same period in 2025, production of copper was higher due to the increase in tonnes milled. As expected, gold production decreased primarily as a result of lower mill head grades and recoveries associated with mining exclusively in the Constancia pit following the planned depletion of Pampacancha at the end of 2025.

Year-to-date production of copper and gold during the nine months ended September 30, 2026 was 60,591 tonnes and 19,319 ounces, respectively, representing a 1% increase in copper production and a 54% decrease in gold production compared to the same period in 2025. The decreased gold production is primarily due to lower recoveries that resulted from processing lower planned head grades as more material was mined from the Constancia pit and reclaimed from stockpiles when compared to the same period last year, which benefited from higher grade Pampacancha ore feed. The slightly increased copper production compared to the same period of 2025 is a result of higher throughput partially offset by lower grades.

Quantities of metal sold during the three and nine months ended September 30, 2026 were in line with the production variances noted above. Copper sales volumes during the third quarter reached 21,382 tonnes, representing a 36% increase compared to the second quarter of 2026. Sales performance was enhanced by the realization of copper concentrate sales that were deferred from late June into early July 2026, due to temporary port closures caused by ocean swells.

*Copper equivalent production is calculated using the quarter average LME prices for each metal excluding molybdenum.

Cost Performance

Combined mine, mill and G&A unit operating cost¹ in the third quarter of 2026 was $13.60 per tonne, which was 4% higher than the same period in 2025, primarily driven by higher fuel price and increased fuel consumption due to additional material moved, and higher plant consumable costs to support higher ore throughput. These factors were partially offset by the benefit of additional ore milled, and lower power costs related to a new power purchase agreement that came into effect on January 1, 2026.

Combined mine, mill and G&A unit operating cost in the third quarter of 2026 decreased by 3% compared to the second quarter of 2026, primarily due to higher ore tonnage milled and reduced mill maintenance costs following the completion of the planned semi-annual plant maintenance shutdown in the second quarter. This efficiency gain was partially offset by higher social spending during the quarter.

Combined mine, mill and G&A unit operating costs for the nine months ended September 30, 2026 was $13.09 per tonne, representing a 5% increase compared to the same period in 2025. The increase was primarily due to higher diesel prices partially offset by additional tonnes of ore milled and lower power costs.

Cash cost¹, net of by-product credits, in the third quarter of 2026 was $2.23 per pound of copper, a 72% increase compared to the same period in 2025. The increase was mainly due to lower by-product credits from gold, higher fuel prices and fuel consumption from increased material moved, higher profit sharing, and higher plant consumables due to increased production. This was partially offset by higher copper production, and lower power costs. Cash cost¹ net of by-product credits increased by 34% compared to the second quarter of 2026, primarily due to lower silver and gold by-product credits, and higher profit sharing. This was partially offset by lower plant maintenance cost following the completion of the semi-annual mill shutdown in the second quarter of 2026.

Year-to-date 2026 cash cost¹, net of by-product credits were $1.53 per pound of copper, an increase from $1.29 in the prior year period. The increase was primarily driven by lower gold by-product credits, higher diesel prices, higher profit sharing, and increased grinding media consumption from higher production volumes. This was partially offset by lower treatment and refining charges and lower power costs.

Sustaining cash cost¹, net of by-product credits, in the third quarter of 2026 was $3.23 per pound of copper, an increase of 53% compared to the same period in 2025 as a result of the same impacts as cash cost above as well as higher hauling costs related to additional material sent to the tailings management facility ("TMF"). During the third quarter of 2026, sustaining cash cost¹, net of by-product credits, per pound of copper increased by 19% compared to the second quarter of 2026, primarily due to the same reasons affecting cash costs above, as well as higher hauling costs related to additional material sent to the TMF.

On a year-to-date basis, sustaining cash cost¹, net of by-products credits, was $2.45 per pound of copper, a 10% increase when compared to the same period in 2025 due to the same reasons as cash cost above.

Peru Guidance Outlook

Three months ended

Nine months ended

Guidance

Sep. 30,
2026

Sep. 30,
2025

Sep. 30,
2026

Sep. 30,
2025

Annual 2026

Contained metal in concentrate produced

Copper

tonnes

20,572

18,114

60,591

60,117

75,000 - 90,000

Gold

5,267

26,380

19,319

41,615

15,000 - 20,000

Silver

577,231

577,446

1,672,935

1,684,117

1,900,000 - 2,400,000

Molybdenum

tonnes

301

185

958

957

900 - 1,100

Cost per pound of copper produced

Cash cost¹

$/lb

2.23

1.30

1.53

1.29

1.70 - 2.10

Hudbay is on track to achieve its 2026 production guidance for all metals in Peru with gold production expected to exceed the top end of the guidance range. Year-to-date cash cost continued to outperform the low-end of the 2026 guidance range as a result of strong operating cost performance and higher by-product prices, despite external cost pressures. Hudbay is well positioned to achieve the full year 2026 cash cost guidance range in Peru.

MANITOBA OPERATIONS REVIEW

		Three months ended			Nine months ended
		Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025
Total ore mined¹	tonnes	383,628	321,719	139,006	1,055,327	826,302
Gold	g/tonne	5.12	4.41	5.42	4.77	5.28
Copper	%	0.86	0.84	0.67	0.83	0.78
Zinc	%	1.66	2.25	1.93	1.99	2.35
Silver	g/tonne	29.15	28.33	31.57	27.93	30.82
New Britannia ore milled	tonnes	207,041	170,477	92,765	558,921	444,823
Gold	g/tonne	6.77	5.31	6.88	6.10	6.94
Copper	%	1.04	1.00	0.76	1.03	0.90
Zinc	%	0.94	0.97	1.00	1.00	1.00
Silver	g/tonne	29.94	29.73	32.18	27.54	31.99
Copper concentrate	tonnes	13,159	11,228	4,410	36,585	25,084
Concentrate grade	% Cu	15.00	13.82	14.46	14.33	14.28
Gold recovery²	%	91.9	90.5	91.8	91.0	90.3
Copper recovery	%	91.5	90.9	90.0	91.1	89.5
Silver recovery²	%	82.7	84.5	78.5	83.1	79.7
Contained metal in concentrate produced
Gold	oz	26,910	18,155	12,330	66,413	56,617
Copper	tonnes	1,973	1,553	637	5,242	3,582
Silver	oz	120,653	101,599	55,012	300,715	255,765
Metal in doré produced³
Gold	oz	16,513	11,051	6,933	40,190	37,423
Silver	oz	52,713	35,526	25,058	124,733	116,681
Stall ore milled	tonnes	182,222	148,037	43,940	509,240	403,430
Gold	g/tonne	3.21	3.30	3.10	3.25	3.54
Copper	%	0.64	0.66	0.56	0.61	0.67
Zinc	%	2.47	3.81	3.61	3.12	3.73
Silver	g/tonne	27.83	27.46	31.04	28.37	29.71
Copper concentrate	tonnes	5,848	4,683	1,293	15,362	11,855
Concentrate grade	% Cu	17.76	17.35	15.80	17.38	19.74
Zinc concentrate	tonnes	7,311	9,279	1,053	25,628	23,376
Concentrate grade	% Zn	50.49	51.31	52.06	50.79	51.09
Gold recovery	%	73.6	70.8	72.6	72.8	69.7
Copper recovery	%	89.1	83.7	83.4	86.4	86.7
Zinc recovery	%	82.1	84.5	34.6	81.9	79.4
Silver recovery	%	58.3	55.4	50.3	57.2	55.4
Contained metal in concentrate produced
Gold	oz	13,838	11,138	3,178	38,745	31,990
Copper	tonnes	1,039	813	205	2,671	2,341
Zinc	tonnes	3,691	4,760	548	13,016	11,943
Silver	oz	94,980	72,353	22,062	265,584	213,259

¹Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled. Total ore mined includes tonnes from Lalor and 1901.

²Gold and silver recovery includes total recovery from concentrate and doré.

³Doré includes sludge, slag and carbon fines.

		Three months ended			Nine months ended
		Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025
Combined concentrator ore milled		389,263	318,514	136,705	1,068,161	848,253
Gold	g/tonne	5.10	4.38	5.66	4.74	5.32
Copper	%	0.85	0.84	0.70	0.83	0.79
Zinc	%	1.65	2.29	1.84	2.01	2.30
Silver	g/tonne	28.95	28.67	31.82	27.94	30.90
Gold recovery	%	86.5	83.6	88.4	85.0	83.8
Copper recovery	%	90.7	88.4	88.3	89.5	88.4
Zinc recovery	%	82.1	84.5	34.6	81.9	79.4
Silver recovery	%	71.7	71.5	69.7	70.6	68.6

Three months ended

Nine months ended

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Sep. 30, 2026

Sep. 30, 2025

Total contained metal in concentrate and doré produced¹

Gold

57,261

40,344

22,441

145,348

126,030

Copper

tonnes

3,012

2,366

842

7,913

5,923

Zinc

tonnes

3,691

4,760

548

13,016

11,943

Silver

268,346

209,478

102,132

691,032

585,705

Payable metal sold in concentrate and doré²

Gold

51,777

47,066

23,118

144,117

125,815

Copper

tonnes

2,793

2,466

769

7,917

5,627

Zinc

tonnes

4,887

2,635

3,452

11,419

11,180

Silver

268,074

209,383

112,142

670,929

553,990

Unit Operating Costs³

Lalor

C$/tonne

187.59

186.93

157.38

180.22

149.20

New Britannia

C$/tonne

75.22

86.18

61.54

79.20

66.70

Stall

C$/tonne

53.99

53.26

57.90

51.12

43.92

Combined unit operating costs^4,5,6

C$/tonne

282

300

258

278

231

Cost per ounce of gold produced

Cash cost^6,7

$/oz

403

776

379

508

491

Sustaining cash cost⁶

$/oz

898

1,358

762

1,004

787

¹ Total metal reported in concentrate is prior to deductions associated with smelter terms and includes other secondary products.

² Includes other secondary products.

³ Reflects costs per tonne of ore mined/milled.

⁴ Reflects combined mine, mill and G&A costs per tonne of milled ore.

⁵ Excludes overhead costs of $16.0 million or C$163 per tonne of ore milled incurred during temporary suspension during the three months ended September 30, 2025, and $19.2 million or C$32 per tonne of ore milled during the nine months ended September 30, 2025.

⁶ This is considered a non-GAAP financial performance measures with no standardized definition under IFRS. For further information, please see discussion under the "Non-GAAP Financial Performance Measures" section of this MD&A.

⁷ Excludes overhead costs of $16.0 million or $713 per ounce of gold produced incurred during temporary suspension during the three months ended September 30, 2025, and $19.2 million or $152 per ounce of gold produced during the nine months ended September 30, 2025.

Overview

The Manitoba operations delivered strong operating performance in the third quarter of 2026, driven by the achievement of key operational performance targets and the benefits from strategic initiatives implemented earlier in the year, positioning the business to achieve full-year guidance metrics while advancing key growth and infrastructure projects.

Performance at the Lalor mine significantly improved during the third quarter, with improved equipment utilization driving efficiencies in underground development, and higher gold and copper head grades contributing to increased production compared to the second quarter of 2026.

To address prior labour availability constraints and accelerate development at the 1901 deposit, Hudbay embedded an experienced mining contractor at 1901, allowing internal skilled labour to be redeployed toward critical development areas at Lalor. In tandem, Hudbay expanded its internal capacity by onboarding over 150 new employees thus far in 2026, who are undergoing upskilling to support long-term self-sufficiency. Underground improvement efforts also advanced during the third quarter, including operational testing of a roadheader continuous mining unit at Lalor to understand lateral development applications.

Community workforce programs continued to build momentum. Hudbay's Mining Fundamentals Training program, delivered in partnership with the Northern Manitoba Sector Council and University College of the North, launched its fifth cohort during the third quarter of 2026, including participants from local Indigenous communities. Participants who complete the program are given opportunities for full-time employment with Hudbay.

The New Britannia mill achieved a new quarterly mill throughput record during the third quarter of 2026, and Hudbay initiated early works on the Stall Hot Tails Leaching project to unlock additional gold recovery from material processed at the Stall mill through leaching at New Britannia. Hudbay has also initiated early evaluation work on processing legacy tailings and mineralized piles to utilize excess mill capacity.

Hudbay released an updated mine plan for its Snow Lake operations in September 2026, as further detailed in the Recent Developments section above. The updated mine plan enhanced the gold production profile in Snow Lake, extended reserve mine life to 18 years and identified further growth opportunities from continued resource conversion and regional exploration.

Mining Activities

Total ore mined in Manitoba in the third quarter of 2026 increased compared to the third quarter of 2025 and the second quarter of 2026. The increase compared to the third quarter of 2025 reflects a recovery from the impacts of the temporary wildfire evacuation orders in 2025, while the increase compared to the second quarter of 2026 was driven by improved equipment utilization and haulage efficiencies. While gold grades decreased by 6% compared to the same period in 2025, due to planned mine sequencing, the gold grades increased by 16% compared to the second quarter of 2026 as production prioritized gold-focused mining areas.

Year-to-date ore mined was 28% higher than the same period in 2025, primarily reflecting operational stability after the 2025 temporary wildfire evacuation orders and ongoing improvements in ore haulage, equipment utilization, and operating efficiencies. Year-to-date copper grades increased 6%, while gold, zinc, and silver grades mined were lower by 10%, 15%, and 9%, respectively, in line with mine plans.

Milling Activities

New Britannia achieved a new quarterly mill throughput record, averaging approximately 2,250 tonnes per day in the third quarter of 2026, aligning with gold ore output from Lalor and achieving new record gold recoveries of approximately 92% during the quarter.

Stall mill demonstrated higher quarterly throughput compared to the third quarter of 2025 and the second quarter of 2026, matching Lalor base metal production, while achieving new record gold recoveries of 74% as a result of recovery focused initiatives.

Production and Sales Performance

The Manitoba operations produced 57,261 ounces of gold, 3,012 tonnes of copper, 3,691 tonnes of zinc and 268,346 ounces of silver in the third quarter of 2026. Production across all metals increased compared to the third quarter of 2025, driven primarily by higher mill throughput following the temporary wildfire evacuation orders in the prior year period. Production of gold, copper and silver increased compared to the second quarter of 2026 as a result of higher mill throughput and improved gold feed grades, while zinc production decreased due to lower zinc feed grades.

Year-to-date production across all metals exceeded the comparative 2025 period. The increase reflects higher overall mill throughput compared to the wildfire impacted period in 2025 and higher copper head grades, partially offset by lower gold, zinc, and silver head grades.

Third quarter sales volumes reflected typical inventory movement alongside higher production. For the nine months ended September 30, 2026, quantities across all metals aligned with production trends.

Cost Performance

Combined mine, mill and G&A unit operating costs were C$282 per tonne in the third quarter of 2026. Combined unit costs increased compared to the third quarter of 2025 due to full operational activity following prior year wildfire impacts, partially offset by higher milled tonnage. Combined unit costs improved from the second quarter of 2026 as higher ore throughput offset elevated variable site expenses, including operational testing of the continuous miner unit at Lalor.

Cash cost⁴, net of by-product credits, was $403 per ounce of gold in the third quarter of 2026. This represents a 6% increase compared to the same period in 2025, primarily attributed to higher operating expenses and employee profit sharing, which were largely offset by increased gold production and higher by-product credits. Cash cost decreased by 48% compared to the second quarter of 2026, primarily due to higher gold production and higher by-product credits driven by higher metal prices and volumes, which were partially offset by higher mining and G&A costs.

Sustaining cash cost⁴, net of by-product credits, was $898 per ounce of gold in the third quarter of 2026, higher than the same period in 2025 and lower than the second quarter of 2026, primarily reflecting the same factors affecting cash costs along with higher sustaining capital. As reflected in the Company's 2026 annual guidance, sustaining capital expenditures are expected to be higher than 2025, in part due to one-time investments to raise the dam at the Anderson Tailings Impoundment Area and the New Britannia mill cyanide recycling project.

Cash cost, net of by-product credits, during the nine months ended September 30, 2026 was $508 per ounce of gold. These costs were 4% higher compared to the same period in 2025 primarily due to higher operating expenses following prior year wildfire evacuation impacts, partially offset by higher gold production and higher by-product credits from metal pricing and volumes. Sustaining cash cost, net of by-product credits, for the nine months ended September 30, 2026 was $1,004 per ounce of gold, an increase of 28% from the same period in 2025 primarily due to the same factors affecting cash cost noted above, together with higher sustaining capital expenditures compared to the prior year.

Manitoba Guidance Outlook

Three months ended

Nine months ended

Guidance

Sep. 30,
2026

Sep. 30,
2025

Sep. 30,
2026

Sep. 30,
2025

Annual 2026

Total contained metal in concentrate and doré produced¹

Gold²

57,261

22,441

145,348

126,030

180,000 - 220,000

Copper

tonnes

3,012

842

7,913

5,923

10,000 - 13,000

Zinc

tonnes

3,691

548

13,016

11,943

16,000 - 21,000

Silver³

268,346

102,132

691,032

585,705

800,000 - 1,000,000

Cost per ounce of gold produced

Cash cost^4,5

$/oz

403

379

508

491

500 - 800

¹ Metal reported in concentrate is prior to deductions associated with smelter terms and includes other secondary products.

²Gold production guidance includes gold contained in concentrate produced and gold in doré and includes other secondary products.

³ Silver production guidance includes silver contained in concentrate produced and silver in doré and includes other secondary products.

⁴ This is considered a non-GAAP financial performance measures with no standardized definition under IFRS. For further information, please see discussion under the "Non-GAAP Financial Performance Measures" section of this MD&A.

⁵ Excludes $16 million or $713 per ounce of overhead costs incurred during temporary suspension during the three months ended September 30, 2025 and $19.2 million or $152 per ounce during the nine months ended September 30, 2025.

Hudbay is on track to achieve its 2026 production guidance for all metals in Manitoba and is well positioned to achieve the 2026 cash cost guidance range in Manitoba.

BRITISH COLUMBIA OPERATIONS REVIEW

		Three months ended			Nine months ended⁵
		Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025	Sep. 30, 2026	Sep. 30, 2025
Ore mined¹	tonnes	5,117,530	3,276,090	1,815,689	11,309,772	6,973,752
Strip ratio²		2.97	6.22	8.84	4.97	7.56
Ore milled	tonnes	3,060,204	3,616,083	3,087,443	9,754,629	8,748,437
Copper	%	0.27	0.23	0.22	0.23	0.28
Gold	g/tonne	0.12	0.08	0.08	0.09	0.09
Silver	g/tonne	0.76	0.88	0.78	0.78	1.00
Copper concentrate	tonnes	30,200	27,274	21,560	78,611	80,992
Concentrate grade	% Cu	21.8	23.7	24.4	22.7	23.6
Copper recovery	%	79.5	77.3	76.6	78.5	78.7
Gold recovery	%	61.0	62.9	59.2	62.6	63.6
Silver recovery	%	69.5	69.7	65.5	68.3	69.3
Combined unit operating costs^3,4	C$/tonne	34.20	25.52	25.02	28.16	25.09

¹Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled.

²Strip ratio is calculated as waste mined divided by ore mined.

³Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.

⁵ Copper Mountain mine results are stated at 100%. On April 30, 2025 Hudbay completed the acquisition of the remaining 25% interest in the Copper Mountain mine and now owns 100%.

Three months ended

Nine months ended²

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Sep. 30, 2026

Sep. 30, 2025

Contained metal in concentrate produced

Copper

tonnes

6,568

6,455

5,249

17,844

19,079

Gold

6,985

5,608

4,760

17,780

15,991

Silver

52,010

71,178

50,816

166,230

195,336

Payable metal sold

Copper

tonnes

6,048

5,559

5,742

17,437

18,698

Gold

6,018

5,158

5,363

17,302

16,141

Silver

53,217

46,467

48,061

153,144

176,108

Cost per pound of copper produced

Cash cost¹

$/lb

3.09

3.22

3.21

2.95

2.63

Sustaining cash cost¹

$/lb

6.30

6.23

7.43

6.68

5.44

² Copper Mountain mine results are stated at 100%. On April 30, 2025 Hudbay completed the acquisition of the remaining 25% interest in the Copper Mountain mine and now owns 100%.

Overview

Hudbay continued to advance its multi-year optimization plan at Copper Mountain, achieving significant milestones in mining productivity, operational performance, and project execution in the third quarter of 2026. In parallel, Hudbay has continued to focus on improving safety and environmental management and received ISO 14001 and 45001 certifications at Copper Mountain during the third quarter of 2026.

Copper Mountain achieved mill throughput of approximately 43,500 tonnes per day in September, reflecting successive monthly mill throughput increases after the completion of mill maintenance at the primary SAG mill in July, and Hudbay is on track to achieve the targeted 50,000 tonnes per day by the end of the year. The third quarter represented the first quarter of positive free cash flow at Copper Mountain since its acquisition by Hudbay, demonstrating the benefits from continued operating efficiencies, recent mill improvement initiatives and ongoing execution of the accelerated stripping program.

Following the June groundbreaking, the New Ingerbelle project continued to advance infrastructure development in the third quarter of 2026, with construction of key infrastructure connecting the expansion on the west side of the Similkameen river to existing operations on the east side progressing on schedule. Key milestones achieved during the quarter included completion of the west access road and establishment of a temporary construction bridge to facilitate the construction of the permanent bridge. In parallel, a targeted resource expansion and infill drilling program continued and remains on track for completion in the fourth quarter. Hudbay also continued to advance construction of the east haul road, which was 38% complete at the end of the quarter. The New Ingerbelle expansion is expected to support continuous operations beyond 2040 and provide access to higher grade ore at approximately one third of the strip ratio compare to recent historical mining areas.

Consistent with the refreshed participation agreements ratified earlier in the year with the Upper Similkameen Indian Band (USIB) and the Lower Similkameen Indian Band (LSIB), the joint committees for the New Ingerbelle project are now fully operational and functioning as intended. With respect to the application for judicial review filed by the LSIB in March 2026 concerning the New Ingerbelle permit amendment, Hudbay remains confident in the regulatory process and expects the court to uphold the decision at a hearing anticipated in the first quarter of 2027. Hudbay continues to engage constructively with the LSIB through established Participation Agreement mechanisms.

Mining Activities

Total material movement at Copper Mountain was approximately 26.9 million tonnes (approximately 292.300 tonnes per day) in the third quarter of 2026, representing a 26% increase compared to the third quarter of 2025. The increase was driven by ongoing operational improvement initiatives and mobile fleet additions, as well as waste movement associated with the New Ingerbelle east haul road development, which totaled 5.6 million tonnes during the quarter. Total material movement decreased by 11% compared to the second quarter of 2026 due to fleet availability constraints and reduced productivity in the active mining areas. Waste movement associated with the New Ingerbelle east haul road development totaled 5.6 million tonnes during the third quarter of 2026.

Total ore mined at Copper Mountain in the third quarter of 2026 was 5.1 million tonnes, an increase of 182% and 56% compared to the third quarter of 2025 and second quarter of 2026, respectively. The increases were driven by favourable ore release timing from the north pit, which will be depleted by the end of the year. The strip ratio in the third quarter was 2.97, significantly lower than 8.84 in the third quarter of 2025 and 6.22 in the second quarter of 2026, due to increased ore availability and the shift of waste mining capacity to New Ingerbelle east haul road development.

For the nine months ended September 30, 2026, total ore mined was 62% higher than the same period in 2025, reflecting operational efficiency gains and improved ore availability compared to 2025 when activity was weighted heavily toward waste stripping and stockpile rehandling.

Milling Activities

The scheduled replacement of the primary semi-autogenous grinding (SAG) mill feed end head was completed in July 2026, resolving operational constraints stemming from localized erosion in late 2025. Comprehensive preventative maintenance was executed concurrently, enabling a smooth, progressive ramp-up as planned in the third quarter.

The mill processed 3.1 million tonnes of ore during the third quarter of 2026, consistent with the same period in 2025 and 15% lower than the second quarter of 2026, reflecting 33 days of planned maintenance downtime for the primary SAG mill feed end head replacement. Higher hourly operating throughput following the restart partially offset the planned outage. Mill throughput continues to ramp up towards the targeted 50,000 tonnes per operating day by the end of the year, supported by the secondary SAG mill availability and unconstrained primary SAG mill operation.

Milled copper head grades averaged 0.27% in the third quarter of 2026, representing increases of 23% and 17% compared to the third quarter of 2025 and second quarter of 2026, respectively due to higher grade ore released from active mining faces. Copper recoveries slightly increased to approximately 80% in the third quarter, representing an improvement compared to both the third quarter of 2025 and second quarter of 2026. Gold recovery was 3% higher than third quarter of 2025 but lower than the second quarter of 2026, while circuit optimization efforts continue to focus on managing flotation response at coarser grind sizes.

Milled copper grades during the nine months ended September 30, 2026 averaged 18% lower than the same period in 2025 as the prior year period benefited from higher grade ore contributions from the main pit. Year-to-date 2026 copper and gold recoveries were 79% and 63%, respectively, in line with the comparable period in 2025.

Production and Sales Performance

The British Columbia operations produced 6,568 tonnes of copper, 6,985 ounces of gold and 52,010 ounces of silver in the third quarter of 2026. Copper, gold and silver production increased compared to the third quarter of 2025, as higher head grades and improved recoveries offset the impact of maintenance downtime on the primary SAG mill. Compared to the second quarter of 2026, copper and gold production increased for the same reasons mentioned above, while silver production decreased due to localized head grade variations.

During the nine months ended September 30, 2026, production totaled 17,844 tonnes of copper, 17,780 ounces of gold and 166,230 ounces of silver. Year-to-date copper and silver production were lower than in the same period in 2025 due to lower head grades during the first half of the year, while gold production increased on higher average gold grades.

Sales volumes for all metals in the third quarter of 2026 were higher than the corresponding period in 2025 and the second quarter of 2026, primarily driven by production and higher grade profiles.

Year-to-date sales quantity changes compared to the same period in 2025 reflect the changes in production during the periods.

*Copper equivalent production is calculated using the quarter average LME prices for each metal. Copper Mountain mine production is stated at 100%. On April 30, 2025 Hudbay completed the acquisition of the remaining 25% interest in the Copper Mountain mine and now owns 100%.

Cost Performance

Combined mine, mill and G&A unit operating costs in the third quarter of 2026 were C$34.20 per tonne milled, higher than the third quarter of 2025 and the second quarter of 2026. This unit cost increase was driven by lower capitalized stripping, higher fuel and mobile equipment maintenance costs, and additional maintenance expenses associated with the planned primary SAG mill shutdown. Year-to-date combined unit operation costs were C$28.16 per tonne milled compared to C$25.09 per tonne milled in the prior year period, driven by the same cost factors.

Cash cost¹ net of by-product credits, in the third quarter of 2026 was $3.09 per pound of copper produced. Cash cost¹ decreased by 4% compared to the second quarter of 2026 and the third quarter of 2025, benefiting from higher copper production, lower treatment and refining charges, and strong gold and silver by-product credits, which offset higher site operating costs. Higher copper production is expected in the fourth quarter of 2026, resulting in full year cash cost expected to track toward the high end of the annual guidance range in British Columbia.

Sustaining cash cost¹, net of by-product credits, was $6.30 per pound of copper in the third quarter of 2026, lower than the third quarter of 2025 due to lower cash costs and reduced sustaining capital expenditures. Compared to the second quarter of 2026, sustaining cash cost¹, net of by-product credits, was slightly higher due to higher royalty costs, partially offset by lower cash costs and reduced sustaining capital expenditures. Year-to-date cash cost and sustaining cash cost per pound of copper produced, net of by-product credits, averaged $2.95 and $6.68 per pound, respectively. Variances with the same period last year were for largely the same factors affecting the quarterly variances, together with higher sustaining capital expenditures.

British Columbia Guidance Outlook

Three months ended

Nine months ended²

Guidance

Sep. 30,
2026

Sep. 30, 2025

Sep. 30,
2026

Sep. 30,
2025

Annual 2026

Contained metal in concentrate produced

Copper

tonnes

6,568

5,249

17,844

19,079

25,000 - 35,000

Gold

6,985

4,760

17,780

15,991

22,000 - 32,000

Silver

52,010

50,816

166,230

195,336

200,000 - 290,000

Cost per pound of copper produced

Cash cost¹

$/lb

3.09

3.21

2.95

2.63

1.50 - 2.50

² Copper Mountain mine results are stated at 100%. On April 30, 2025 Hudbay completed the acquisition of the remaining 25% interest in the Copper Mountain mine and now owns 100%.

Hudbay is on track to achieve its 2026 full year production guidance for all metals in British Columbia. While cash costs improved in the third quarter and stronger copper production is expected in the fourth quarter of 2026, year-to-date cash costs reflect higher site operating costs, resulting in full year cash costs expected to track towards the high end of the annual guidance range in British Columbia.

FINANCIAL REVIEW

Financial Results

In the third quarter of 2026, Hudbay recorded net earnings attributable to owners of $149.5 million compared to net earnings on the same basis of $222.4 million in the third quarter of 2025, representing a decrease of $72.9 million. Year-to-date in 2026, Hudbay recorded net earnings attributable to owners of $477.3 million compared to net earnings on the same basis of $440.5 million for the same period in 2025, representing an increase of $36.8 million.

The following table provides further details on the makeup of this variance:

(in $ millions)	Three months ended September 30, 2026		Nine months ended September 30, 2026
Increase (decrease) in components of earnings:
Revenues	419.1		676.4
Cost of sales
Mine operating costs	(118.9	)	(162.8	)
Depreciation and amortization	(19.3	)	(3.5	)
Selling and administrative expenses	1.5		(1.6	)
Share-based compensation expenses	(3.4	)	(20.8	)
Exploration expenses	(2.6	)	(14.7	)
Evaluation expenses	(12.2	)	(22.8	)
Other operating expenses	(5.0	)	3.7
Re-evaluation adjustment - environmental obligation	13.2		4.6
Impairment reversal	(322.3	)	(322.3	)
Consideration received from sale of non-core project	(14.0	)	(14.0	)
Net finance (income) expenses	23.6		92.5
Tax expense	(31.1	)	(170.4	)
(Decrease) increase in net earnings for the period	(71.4	)	44.3
Change in non-controlling interest	(1.5	)	(7.5	)
(Decrease) increase in net earnings attributable to owners for the period	(72.9	)	36.8

Revenue

Revenue for the third quarter of 2026 was $765.9 million, $419.1 million higher than the same period in 2025, primarily due to stronger metal prices, lower treatment and refining charges and higher sales volume of all metals.

Revenue during the nine months ended September 30, 2026 was $2,154.5 million, $676.4 million higher than in 2025, as a result of the same factors impacting the third quarter of 2026.

While a majority of revenues continue to be from copper, gold represented a significant portion of total revenues at 34% and 37% for the three months and nine months ended September 30, 2026, respectively. This is as a result of exposure to higher gold prices.

The following table provides further details on these variances:

(in $ millions)	Three months ended September 30, 2026		Nine months ended September 30, 2026

Metals prices¹
Higher copper prices	141.3		319.0
Higher gold prices	40.8		214.3
Higher zinc prices	5.3		9.2
(Lower) higher silver prices	(0.7	)	39.4
Sales volumes
Higher copper sales volumes	115.1		30.6
Higher gold sales volumes	80.1		25.4
Higher zinc sales volumes	4.1		0.7
Higher silver sales volumes	14.0		3.2
Other
Molybdenum and other volume and pricing differences	4.4		15.6
Variable consideration adjustments	-		(10.0	)
Effect of lower treatment and refining charges	14.7		29.0
Increase in revenue in 2026 compared to 2025	419.1		676.4

¹ See discussion below for further information regarding metals prices.

Hudbay's revenue by significant product type is summarized below:

	Three months ended						Nine months ended
(in $ millions)	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025		Sep. 30, 2026		Sep. 30, 2025
Copper	434.2		333.8		178.8		1,148.1		778.2
Gold	259.2		262.4		125.5		811.2		508.9
Zinc	19.9		9.6		9.6		41.4		31.0
Silver	18.8		34.1		9.1		85.3		37.3
Molybdenum	19.4		18.4		14.0		58.4		54.0
Other metals	0.4		0.1		-		5.4		(0.2	)
Revenue from contracts	751.9		658.4		337.0		2,149.8		1,409.2
Amortization of deferred revenue - gold	2.3		2.5		2.3		13.9		16.6
Amortization of deferred revenue - silver	8.0		7.0		4.0		25.5		24.5
Amortization of deferred revenue - variable consideration adjustments - prior periods	-		-		-		(0.1	)	9.9
Pricing and volume adjustments¹	(5.7	)	(36.7	)	8.8		(41.0	)	40.5
Treatment and refining charges	9.4		0.1		(5.3	)	6.4		(22.6	)
Revenue	765.9		631.3		346.8		2,154.5		1,478.1

¹Pricing and volume adjustments represents mark-to-market adjustments on provisionally prices sales, realized and unrealized changes to fair value for non-hedge derivative contracts (QP hedges) and adjustments to originally invoiced weights and assays.

For further detail on variable consideration adjustments, refer to note 20 of Hudbay's consolidated interim financial statements.

Realized sales prices

This measure is intended to enable management and investors to understand the average realized price of metals sold to third parties in each reporting period. The average realized price per unit sold does not have any standardized meaning prescribed by IFRS, is unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or a substitute for measures of performance prepared in accordance with IFRS.

For sales of copper, zinc, gold and silver, Hudbay may enter into non-hedge derivatives ("QP hedges") which are intended to manage the provisional pricing risk arising from quotational period terms in concentrate sales agreements. The gains and losses on QP hedges are included in the calculation of realized prices. Hudbay expects that gains and losses on QP hedges will offset provisional pricing adjustments on concentrate sales contracts.

Hudbay's realized prices for the three months ended September 30, 2026 and 2025 and June 30, 2026 and nine months ended September 30, 2026 and 2025, are summarized below:

Realized prices¹ for the

Three months ended

Nine months ended

Prices

LME QTD
2026²

Sep. 30,
2026

Jun. 30,
2026

Sep. 30,
2025

LME YTD
2026²

Sep. 30,
2026

Sep. 30, 2025

Copper

$/lb

6.40

6.49

6.13

4.37

6.09

6.15

4.42

Gold³

$/oz

4,263

4,190

4,312

3,522

4,548

4,328

3,162

Zinc

$/lb

1.74

1.79

1.58

1.30

1.59

1.63

1.26

Silver³

$/oz

62.71

32.39

52.48

33.22

73.26

43.49

27.33

¹Realized prices exclude refining and treatment charges and are on the sale of finished metal or metal in concentrate. Realized prices include the effect of provisional pricing adjustments on prior period sales.

² London Metal Exchange average for cash copper and zinc prices.

³Sales of gold and silver from Constancia mine are subject to Hudbay's precious metals stream agreement with Wheaton, pursuant to which Hudbay recognizes deferred revenue for precious metals deliveries and also receive cash payments. Stream sales are included within realized prices and their respective deferred revenue and cash payment rates can be found on page 35 of this MD&A.

In addition to QP hedges, the Company may periodically undertake metal price hedging in accordance with Board approved policies to achieve strategic objectives, including locking in favourable metal prices to ensure minimum cash flows during or after the construction of a mine or during a period of reduced liquidity due to large capital investments, to manage cash flows at shorter life or higher cost operations or as part of a financing arrangement. The realized prices, denoted in the table above, exclude the impact of derivative mark-to-market gains and losses on these non-QP hedges, which are included in change in fair value of financial instruments in Hudbay's condensed consolidated interim statements of income.

Hudbay entered into forward copper sales and zero cost collar hedges during the first quarter of 2026 that cover approximately 35% of Copper Mountain's expected 2026 production.

As of September 30, 2026, Hudbay had the following non-QP hedges outstanding:

• Forward sales contracts for a total of 4.6 million pounds of copper production over the period of October 2026 to April 2027 at an average price of $6.03 per pound; and

• Zero-cost collar program for 9.3 million pounds of copper production over the period of October 2026 to April 2027 at an average floor price of $5.76 per pound and an average cap price of $6.36 per pound.

The following tables provide a reconciliation of average realized price per unit sold, by metal, to revenues as shown in the consolidated interim financial statements.

Three months ended September 30, 2026
(in $ millions except for realized price and payable metal sold) ¹	Copper		Gold		Zinc		Silver		Molybdenum	Other	Total
Revenue from contracts²	434.2		259.2		19.9		18.8		19.4	0.4	751.9
Amortization of deferred revenue	-		2.3		-		8.0		-	-	10.3
Pricing and volume adjustments ³	(1.5	)	(5.8	)	(0.6	)	0.4		1.8	-	(5.7	)
Revenue, including mark-to-market on QP hedges ⁴	432.7		255.7		19.3		27.2		21.2	0.4	756.5
Realized non-QP derivative mark-to-market	(1.2	)	-		-		-		-	-	(1.2	)
By-product credits ⁵	431.5		255.7		19.3		27.2		21.2	0.4	755.3
Payable metal in concentrate and doré sold⁶	30,223		61,033		4,887		839,702		270	-	-
Realized price⁷	6.49		4,190		1.79		32.39		-	-	-
Realized price, including realized non-QP derivative ⁷	6.48		4,190		1.79		32.39		-	-	-
Three months ended June 30, 2026
Revenue from contracts ²	333.8		262.4		9.6		34.1		18.4	0.1	658.4
Amortization of deferred revenue	-		2.5		-		7.0		-	-	9.5
Pricing and volume adjustments ³	(12.3	)	(22.3	)	(0.4	)	(5.7	)	4.0	-	(36.7	)
Revenue, including mark-to-market on QP hedges ⁴	321.5		242.6		9.2		35.4		22.4	0.1	631.2
Realized non-QP derivative mark-to-market	(0.1	)	-		-		-		-	-	(0.1	)
By-product credits ⁵	321.4		242.6		9.2		35.4		22.4	0.1	631.1
Payable metal in concentrate and doré sold⁶	23,780		56,266		2,635		674,490		298	-	-
Realized price ⁷	6.13		4,312		1.58		52.48		-	-	-
Realized price, including realized non-QP derivative ⁷	6.13		4,312		1.58		52.48
Three months ended September 30, 2025
Revenue from contracts ²	178.8		125.5		9.6		9.1		14.0	-	337.0
Amortization of deferred revenue	-		2.3		-		4.0		-	-	6.3
Pricing and volume adjustments ³	(2.5	)	7.0		0.3		0.8		3.2	-	8.8
Revenue, including mark-to-market on QP hedges ⁴	176.3		134.8		9.9		13.9		17.2	-	352.1
Realized non-QP derivative mark-to-market ⁵	-		-		-		-		-	-	-
By-product credits⁴	176.3		134.8		9.9		13.9		17.2	-	352.1
Payable metal in concentrate and doré sold⁶	18,280		38,279		3,452		418,418		269	-	-
Realized price⁷	4.37		3,522		1.30		33.22		-	-	-
Realized price, including realized non-QP derivative ⁷	4.37		3,522		1.30		33.22

¹Average realized price per unit sold may not calculate based on amounts presented in this table due to rounding.

² As per IFRS Accounting Standards.

³Pricing and volume adjustments represents mark-to-market adjustments on provisionally priced sales, realized and unrealized changes to fair value for QP hedge derivative contracts and adjustments to originally invoiced weights and assays.

⁴ Revenue, including mark-to-market on QP hedges is used in the calculation of realized price.

⁵ By-product credits subtotal is used in the calculated of cash cost per pound of copper and ounce of gold produced, net of by-product credits. Cash cost per pound of copper and 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 and a detailed reconciliation, please see the discussion under the "Non-GAAP Financial Performance Measures" section of this MD&A.

⁶Copper and zinc shown in metric tonnes and gold and silver shown in ounces.

⁷ Realized price for copper and zinc in $/lb and realized price for gold and silver in $/oz.

Nine months ended September 30, 2026
(in $ millions except for realized price and payable metal sold) ¹	Copper		Gold		Zinc		Silver		Molybdenum	Other		Total
Revenue from contracts ²	1,148.1		811.2		41.4		85.3		58.4	5.4		2,149.8
Amortization of deferred revenue	-		13.9		-		25.5		-	-		39.4
Pricing and volume adjustments ³	(15.5	)	(29.4	)	(0.5	)	(4.8	)	9.2	-		(41.0	)
Revenue, including mark-to-market on QP hedges ⁴	1,132.6		795.7		40.9		106.0		67.6	5.4		2,148.2
Realized non-QP derivative mark-to-market	(1.3	)	-		-		-		-	-		(1.3	)
By-product credits ⁵	1,131.3		795.7		40.9		106.0		67.6	5.4		2,146.9
Payable metal in concentrate and doré sold⁶	83,547		183,861		11,419		2,437,243		943	-		-
Realized price ⁷	6.15		4,328		1.63		43.49		-	-		-
Realized price, including realized non-QP derivative ⁷	6.14		4,328		1.63		43.49		-	-		-
Nine months ended September 30, 2025
(in $ millions except for realized price and payable metal sold) ¹	Copper		Gold		Zinc		Silver		Molybdenum	Other		Total
Revenue from contracts ²	778.2		508.9		31.0		37.3		54.0	(0.2	)	1,409.2
Amortization of deferred revenue	-		16.6		-		24.5		-	-		41.1
Pricing and volume adjustments ³	4.8		30.5		-		1.6		3.6	-		40.5
Revenue, including mark-to-market on QP hedges ⁴	783.0		556.0		31.0		63.4		57.6	(0.2	)	1,490.8
Realized non-QP derivative mark-to-market	(2.3	)	-		-		-		-	-		(2.3	)
By-product credits ⁵	780.7		556.0		31.0		63.4		57.6	(0.2	)	1,488.5
Payable metal in concentrate and doré sold⁶	80,402		175,837		11,180		2,319,546		-	-		-
Realized price ⁷	4.42		3,162		1.26		27.33		-	-		-
Realized price, including realized non-QP derivative ⁷	4.40		3,162		1.26		27.33		-	-		-

¹Average realized price per unit sold may not calculate based on amounts presented in this table due to rounding.

² As per consolidated interim financial statements.

⁴ Revenue, including mark-to-market on QP hedges is used in the calculation of realized price.

⁶Copper and zinc shown in metric tonnes and gold and silver shown in ounces.

⁷ Realized price for copper and zinc in $/lb and realized price for gold and silver in $/oz.

The price, quantity and mix of metals sold affect Hudbay's revenue, operating cash flow and gross profit. Revenue from metals sales can vary from quarter to quarter due to production levels, shipping volumes and transfer of risk and title to customers.

Precious metals - stream sales and realized price breakdown

The following table shows a breakdown of realized prices for precious metals inclusive of stream and offtaker revenue. It further identifies the components of the realized price for stream revenues between the amortized drawdown rate and cash payment rate.

(in $ millions except for realized
price and payable metal sold)

Gold

Silver

Three months ended

Nine months ended

Three months ended

Nine months ended

Revenue

Sep. 30,
2026

Sep. 30,
2025

Sep. 30,
2026

Sep. 30,
2025

Sep. 30,
2026

Sep. 30,
2025

Sep. 30,
2026

Sep. 30,
2025

Stream

3.6

3.5

21.1

24.8

11.3

5.8

35.9

34.7

Offtaker

252.1

131.3

774.6

531.2

15.9

8.1

70.1

28.7

Revenue, including mark-to-market on QP hedges ³

255.7

134.8

795.7

556.0

27.2

13.9

106.0

63.4

Payable metal sold

Stream

2,844

2,707

16,721

19,323

511,687

275,009

1,638,819

1,629,683

Offtaker

58,189

35,572

167,140

156,514

328,015

143,409

798,424

689,863

Total payable metal sold

61,033

38,279

183,861

175,837

839,702

418,418

2,437,243

2,319,546

Deferred revenue drawdown rate¹

$/oz

833

860

833

860

15.56

15.06

15.56

15.06

Cash rate²

$/oz

432

429

430

426

6.36

6.33

6.33

6.28

Stream realized price

$/oz

1,265

1,289

1,263

1,286

21.92

21.39

21.89

21.34

Offtaker realized price

$/oz

4,332

3,691

4,634

3,394

48.47

56.48

87.80

41.60

Realized price

$/oz

4,190

3,522

4,328

3,162

32.39

33.22

43.49

27.33

¹Deferred revenue drawdown rates for gold and silver do not include variable consideration adjustments.

² The gold and silver cash rate for Peru increased by 1% from $400/oz and $5.90/oz effective August 4, 2019. Subsequently every year, on August 4, the cash rate will increase by 1% compounded.

³ Revenue, including mark-to-market on QP hedges is used in the calculation of realized price.

Subsequent to the variable consideration adjustment recorded on January 1, 2026, the deferred revenue amortization is recorded in Peru at $833 per ounce gold and $15.56 per ounce silver (September 30, 2025 - $860 per ounce gold and $15.06 per ounce silver).

Cost of Sales

Hudbay's detailed cost of sales is summarized as follows:

(in $ millions)	Three months ended						Nine months ended
(in $ millions)	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025		Sep. 30, 2026		Sep. 30, 2025
Peru
Mining	49.5		42.2		34.8		126.2		93.9
Milling	45.3		50.9		40.8		139.6		143.0
Changes in product inventory	5.4		(20.3	)	(26.9	)	(7.3	)	(9.1	)
Depreciation and amortization	63.8		45.4		50.0		170.6		174.2
G&A	33.1		25.6		19.5		92.4		65.5
Overhead costs incurred during Peru temporary suspension (cash)	-		-		7.3		-		7.3
Inventory adjustments	-		-		(1.3	)	-		0.2
Freight, royalties and other charges	17.2		14.0		10.9		47.2		40.6
Total Peru cost of sales	214.3		157.8		135.1		568.7		515.6
Manitoba
Mining	51.5		43.5		15.8		137.3		87.6
Milling	18.2		16.3		5.9		50.8		33.7
Changes in product inventory	(3.4	)	5.6		3.1		(3.7	)	5.9
Depreciation and amortization	20.7		21.2		16.3		61.9		63.8
Overhead costs incurred during Manitoba temporary suspension (cash)	-		-		16.0		-		19.2
Inventory adjustments	-		0.9		-		0.9		1.0
G&A	22.3		19.3		6.4		63.4		35.8
Freight, royalties and other charges	6.3		5.3		2.5		17.3		13.3
Total Manitoba cost of sales	115.6		112.1		66.0		327.9		260.3
British Columbia¹
Mining	37.3		31.3		19.6		84.8		65.7
Milling	31.1		27.2		29.1		89.8		72.3
Changes in product inventory	(12.9	)	(2.6	)	4.2		(4.2	)	7.0
Depreciation and amortization	17.5		22.2		16.4		58.2		49.2
G&A	7.8		8.5		7.6		25.3		20.5
Inventory adjustments	-		-		-		-		2.2
Freight, royalties and other charges	9.0		5.8		3.5		20.8		12.2
Total British Columbia cost of sales	89.8		92.4		80.4		274.7		229.1
Cost of sales	419.7		362.3		281.5		1,171.3		1,005.0

¹ Copper Mountain mine results are stated at 100%.

Total cost of sales for the third quarter of 2026 was $419.7 million, reflecting an increase of $138.2 million compared to the third quarter of 2025.

Peru cost of sales during the third quarter of 2026 increased by $79.2 million compared to the same period in 2025, primarily driven by a $32.3 million change in product inventory resulting from concentrate inventory build up in the prior year period following social blockades. Cost of sales was also impacted by higher depreciation and amortization, higher mining costs from elevated diesel prices and material movement, higher G&A from increased employee profit sharing, and higher freight charges. Milling costs increased as higher grinding ball consumption and throughput were partially offset by lower power costs under the power purchase agreement effective January 1, 2026. Compared to the second quarter of 2026, Peru cost of sales increased by $56.5 million, primarily driven by a $25.7 million change in product inventory from concentrate inventory build up in the prior quarter, higher depreciation and amortization, and increased mining, G&A, and freight expenses.

Manitoba cost of sales during the third quarter of 2026 increased by $49.6 million compared to the same period in 2025, primarily driven by higher mining and milling costs reflecting uninterrupted operational activities compared to the prior year period, which was impacted by temporary wildfire evacuation orders. The increase in mining costs was due to higher operational development and direct mining expenses driven by contract services, materials, and consumables, while milling costs increased due to fewer operational down days alongside higher labour, process reagents and contractor expenses. Additionally, G&A costs were higher due to increased employee profit sharing resulting from higher sales volumes and realized metal prices, as well as higher consulting fees. Depreciation and amortization increased by $4.4 million due to higher production volumes. Manitoba cost of sales during the third quarter of 2026 increased by $3.5 million compared to the second quarter of 2026, primarily driven by higher mining costs from increased operational development and direct mining activities, higher milling costs, and higher G&A costs due to increased employee profit sharing, partially offset by a favourable change in product inventory.

British Columbia cost of sales during the third quarter of 2026 increased by $9.4 million compared to the same period in 2025, primarily driven by higher net mining costs due to lower capitalized stripping, higher milling expenses from the planned shutdown for the first SAG mill feed end head replacement, and increased freight and royalty charges from the refreshed first nation participation agreement. These cost increases were partially offset by a favourable inventory movement of $17.1 million driven by a significant stockpile build-up at the end of the quarter. Compared to the second quarter of 2026, British Columbia cost of sales decreased by $2.6 million, primarily driven by the continued build-up of stockpile inventory and lower depreciation expenses, partially offset by similar operational factors, including higher net mining and milling costs from shutdown timing, and lower strip ratios.

Total cost of sales for the nine months ended September 30, 2026 was $1,171.3 million, an increase of $166.3 million compared to the same period in 2025. This increase was primarily driven by Manitoba due to full operational activities compared to the prior year period, which was impacted by temporary wildfire evacuation orders and higher profit sharing. Cost increases in Peru resulting from functioning at normal operating levels compared to the same period in 2025 which was impacted by a temporary operational shutdown during the third quarter of 2025 caused by social unrest and higher profit sharing. Cost increases in British Columbia resulting from the same operational and inventory factors mentioned in the quarterly variance.

For details on unit operating costs, refer to the respective tables in the "Operations Review" section of this MD&A.

For the third quarter of 2026, other significant variances in expenses, compared to the same period in 2025, include the following:

- Impairment reversal gain decreased by $322.3 million as a result of the prior year period non-cash full impairment reversal on the carrying value of the Copper World project, following the announcement of the Copper World JV Transaction with Mitsubishi for a 30% non-controlling interest.

- Net finance (income) expenses increased by $23.6 million, primarily due to an increase in mark-to-market gains of $10.6 million from investments, a decrease of $1.9 million in interest expense on long-term debt benefitting from the retirement of the 2026 senior unsecured notes, a decrease in foreign exchange loss of $9.5 million from the revaluation of foreign currency monetary balances and an increase in interest income of $3.9 million, partially offset by an increase in loss from non-QP hedges of $5.9 million.

- Consideration received from previous sale of non-core project decreased by $14.0 million, reflecting additional contingent consideration received in the prior year period from a previously sold Copper Mountain asset.

- Re-evaluation DRO adjustment gain increased by $13.2 million due to the relative revaluation of the environmental reclamation provision on Hudbay's Manitoba non-producing sites from changes in long-term risk-free discount and inflation rates. Given the long term nature of the reclamation cash flows, the related environmental reclamation provision is highly sensitive to changes in inflation and long-term-risk free discount rates, and, as such, Hudbay may continue to experience significant quarterly environmental reclamation revaluations.

- Evaluation expense increased by $12.2 million, primarily due to a $5.0 million and $5.7 million increase in pre-feasibility activities related to the Mason and Cactus projects, respectively.

For year-to-date 2026, other significant variances in expenses, compared to the same period in 2025, include the following:

- Net finance (income) expenses increased by $92.5 million due to an increase in mark-to-market gains of $111.2 million from investments, an increase of $8.8 million in net interest income, a decrease of $5.7 million in net interest expense on long-term debt benefitting from the retirement of the 2026 senior unsecured notes, partially offset by a $35.2 million increase in net foreign exchange loss from the revaluation of foreign currency monetary balances and an increase in loss from non-QP hedges of $4.2 million.

- Evaluation expense increased by $22.8 million, primarily due to a $14.1 million and $5.7 million increase pre-feasibility study activities related to the Mason and Cactus projects respectively.

- Share-based compensation expense increased by $20.8 million primarily from the revaluation of share units due to higher share prices compared to the prior period.

- Exploration expenses increased by $14.7 million, primarily due to Hudbay's planned Snow Lake exploration program consisting of modern geophysical programs and multi-phased drilling campaigns, most of which was funded by flow-through financing.

Tax Expense

For the three months ended September 30, 2026, tax expense increased by $31.1 million compared to the same period in 2025. For the nine months ended September 30, 2026, tax expense increased by $170.4 million compared to the same period in 2025. The following table provides further details:

(in $ millions)

Three months ended

Nine months ended

Sep. 30,
2026

Sep. 30,
2025

Sep. 30,
2026

Sep. 30,
2025

Current tax expense - income tax

68.5

32.9

191.7

97.8

Deferred tax expense (recovery) - income tax¹

30.0

69.6

74.7

79.6

Total income tax expense

98.5

102.5

266.4

177.4

Current tax expense - mining tax

37.0

6.2

118.2

43.1

Deferred tax expense (recovery) - mining tax¹

3.7

(0.6

)

4.4

(1.9

)

Total mining tax expense

40.7

5.6

122.6

41.2

Tax expense

139.2

108.1

389.0

218.6

¹Deferred tax expense (recovery) represents Hudbay's draw down/increase of non-cash deferred income and mining tax assets/liabilities.

Income Tax Expense/Recovery

Applying the estimated Canadian statutory income tax rate of 26.7% to Hudbay's net earnings before taxes of $869.6 million for the year-to-date of 2026 would have resulted in a tax expense of approximately $232.2 million. Hudbay recorded an income tax expense of $266.4 million. The primary items causing Hudbay's effective income tax rate to be different than the 26.7% estimated Canadian statutory income tax rate are the following:

- The tax expense with respect to Hudbay's foreign operations is recorded using an income tax rate other than the Canadian statutory income tax rate of 26.7%, resulting in a tax expense of $54.1 million.

- Current mining tax deductions resulted in a tax recovery of $33.5 million.

Mining Tax Expense

For the year-to-date 2026, Hudbay recorded a mining tax expense of $122.6 million. Effective mining tax rates can vary significantly based on the composition of Hudbay's earnings and the expected amount of mining taxable profits. Corporate costs and other costs not related to mining operations are not deductible in computing mining profits. A brief description of how mining taxes are calculated in Hudbay's various business units is discussed below.

Manitoba

The Province of Manitoba imposes mining tax on earnings related to the sale of mineral products mined in the Province of Manitoba (mining taxable profit) at the following rates:

- 10% of total mining taxable earnings if mining profit is C$50 million or less;

- Between mining earnings of C$50 and C$55 million, mining tax is equal to a minimum of C$5 million plus mining earnings less C$50 million multiplied by 65%;

- 15% of total mining taxable earnings if mining profits are between C$55 million and C$100 million;

- Between mining earnings of C$100 million and C$105 million, mining tax is equal to a minimum of C$15 million plus mining earnings less C$100 million multiplied by 57%; and

- 17% of total mining taxable earnings if mining profits exceed C$105 million.

Hudbay estimates that the deferred tax rate that will be applicable when temporary differences reverse will be approximately 10.0%.

Peru

The Peruvian government imposes two parallel mining tax regimes, the Special Mining Tax and the Modified Royalty, on companies' operating mining income on a sliding scale, with progressive rates ranging from 2.0% to 8.4% and 1.0% to 12.0%, respectively. Based on financial forecasts, Hudbay has recorded a deferred tax liability as at September 30, 2026, at the tax rate expected to be applied when temporary differences reverse.

British Columbia

The Province of British Columbia imposes a 13% net revenue tax on the sale of mineral products mined in the province of British Columbia after the mine owner has recovered the capital invested in the mine and its Cumulative Expenditure Account ("CEA") no longer has a balance. The tax is paid on the profit in excess of the capital that has been invested in the mine. British Columbia mineral tax is deductible for federal and provincial income tax purposes.

While there is a balance in the CEA account, the mine owner must pay a Net Current Proceeds ("NCP") tax of 2%. Any amounts paid as NCP can then be claimed in the future against net revenue taxes payable.

Hudbay estimates that the effective tax rate that will be applicable when temporary differences reverse will be approximately 9.49%.

LIQUIDITY AND CAPITAL RESOURCES

As at September 30, 2026, Hudbay's total liquidity of $964.3 million includes $788.7 million in cash and cash equivalents, undrawn total availability of $175.6 million under Hudbay's revolving credit facilities and excludes $50.1 million in Municipal Bond proceeds that is classified as restricted cash. In November 2026, the Company completed a $250.0 million increase to its revolving credit facilities. On a pro forma basis incorporating this increase, total available liquidity is $1.2 billion.

The following table summarizes the sources of cash and cash equivalents, long-term debt and restricted cash:

(in $ millions)	Sep. 30, 2026	Dec. 31, 2025
Cash and cash equivalents from:
Wholly owned subsidiaries	498.6	568.9
Copper World LLC	290.1	-
Cash and cash equivalents	788.7	568.9

Restricted cash:
Unrelated to long-term debt proceeds	0.3	0.2
Related to unspent proceeds on senior unsecured municipal bonds from Copper World LLC	50.1	-
Total restricted cash	50.4	0.2

Long-term debt from:
Wholly owned subsidiaries	788.0	1,008.6
Copper World LLC - Senior unsecured municipal bonds	50.7	-
Total long-term debt	838.7	1,008.6

Senior Unsecured Notes

As at September 30, 2026, Hudbay had $542.4 million aggregate principal amount of 2029 Notes.

On April 1, 2026, the Company completed the repayment of its 2026 Notes upon their maturity. The total principal amount settled was $472.5 million, plus accrued and unpaid interest. The repayment was funded using the Company's available cash on hand and a $272.0 million draw on the Company's senior secured revolving credit facility ($22 million of which was repaid in the third quarter).

Senior Secured Revolving Credit Facilities

Hudbay has two senior secured revolving credit facilities which had total commitments of $450 million ("the Credit Facilities") as at September 30, 2026 for its Canadian and Peruvian businesses on substantially similar terms and conditions. The Credit Facilities include an accordion feature that allows Hudbay the option to increase the facility by an additional $150 million at Hudbay's discretion over the four-year term.

Following the initial draw of the $272.0 million in the second quarter of 2026 to repay the 2026 Notes upon maturity, Hudbay repaid $22.0 million under the Canadian Credit Facility during the third quarter of 2026.

As at September 30, 2026, $250 million was drawn under the Credit Facilities and $24.4 million in letters of credit secured under the Canadian Credit Facility.

As at September 30, 2026, Hudbay was in compliance with its covenants under the Credit Facilities.

In November 2026, Hudbay completed the amendments to its senior secured revolving Credit Facilities to improve balance sheet resilience with a proactive two-year extension and upsize of the facility. Under the amended agreement, the size of the credit facilities has been increased to $700 million from the existing $450 million and the term has been extended from November 2028 to November 2030, providing additional financial flexibility to manage the maturity of the 6.125% coupon 2029 senior unsecured notes and develop the Copper World project. The amended credit agreement includes an improved pricing grid that reflects Hudbay's enhanced financial position and features an opportunity to increase the facility by an additional $150 million at Hudbay's discretion during the four-year tenor, providing additional financial flexibility. After adjusting for the $250 million increase in size of the credit facilities, Hudbay's proforma liquidity as of September 30, 2026 is approximately $1.2 billion.

Municipal Bonds

On June 24, 2026, Copper World LLC received proceeds of an offering of $52.0 million aggregate principal amount of solid waste disposal revenue bonds (the "Municipal Bonds") issued by the Arizona Industrial Development Authority. The Municipal Bonds carry a fixed interest rate of 4.50%, payable semi-annually, and have an initial mandatory tender date of July 2, 2036. The Municipal Bonds represent senior unsecured obligations of Copper World LLC and are guaranteed on a senior unsecured basis by Hudbay and its primary operating subsidiaries. The proceeds from this issuance help enhance the Company's overall liquidity position and are intended to support the ongoing development and capital requirements of the Copper World project, specifically with respect to qualifying solid waste disposal expenditures.

C$130 Million Bilateral Letter of Credit Facility

Hudbay has a C$130.0 million bilateral letter of credit facility ("LC Facility") with a major Canadian financial institution. The LC Facility has no financial covenants and enables Hudbay to issue up to C$130.0 million of letters of credit to beneficiaries on an unsecured basis at attractive rates, including C$30.0 million sub-limit for financial letters of credit. As at September 30, 2026, the Manitoba business unit had drawn $55.8 million in letters of credit under the LC Facility.

Surety Bonds and Letters of Credit

As at September 30, 2026, the United States business unit had $54.3 million in surety bonds issued to support future reclamation and closure obligations and the Peru business unit had $145.6 million in letters of credit issued with various Peruvian financial institutions to support future reclamation and other operating matters. In addition, the British Columbia business unit had $83.9 million in surety bonds issued to support future reclamation and $1.8 million in surety bonds and letters of credit to support other operating matters. No cash collateral is required to be posted under these surety bonds.

Working Capital

Working capital increased by $910.7 million to $845.1 million from December 31, 2025 to September 30, 2026, primarily due to a decrease in the current portion of long-term debt of $472.1 million as a result of a full repayment of the 2026 senior unsecured debt which was funded using available cash on hand and $272.0 million through a draw on the Company's senior secured revolving credit facility, an increase in cash and cash equivalents of $219.8 million primarily as a result of the $411.7 million net proceeds from the sale of Copper World non-controlling interest and increases in operating cash flows, partially offset by repayments of 2026 senior unsecured debt and other cash outflows, an increase in trade and other receivables of $188.5 million primarily related to the deferred consideration receivable from the sale of the non-controlling interest in Copper World, an increase in other financial assets of $49.9 million as a result of an increase in restricted cash from the proceeds received from the municipal bonds, a decrease of $25.5 million in taxes payable, a decrease of $23.2 million relating to deferred revenue, a decrease in other liabilities of $11.3 million primarily relating to share-based compensation paid in the first quarter of 2026 and a decrease in other financial liabilities of $8.0 million primarily as a result of the revaluation of derivative liabilities and payments made for community agreements. These increases are offset by a $80.4 million increase in trade and other payables and a decrease in inventory by $5.8 million.

Cash Flows

The following table summarizes Hudbay's cash flows for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025 and for nine months ended September 30, 2026 and September 30, 2025:

(in $ millions)	Three months ended						Nine months ended
(in $ millions)	Sept. 30, 2026		Jun. 30, 2026		Sept. 30, 2025		Sept. 30, 2026		Sept. 30, 2025
Operating cash flow before change in non-cash working capital	313.9		210.1		70.3		732.7		427.4
Change in non-cash working capital	(99.0	)	86.9		43.2		(9.5	)	70.5
Cash generated from operating activities	214.9		297.0		113.5		723.2		497.9
Cash used in investing activities	(262.9	)	(154.5	)	(99.9	)	(584.0	)	(284.8	)
Cash (used in) generated from financing activities	(53.8	)	(253.8	)	(26.3	)	84.3		(145.7	)
Effect of movement in exchange rates on cash	(0.4	)	(1.6	)	(1.7	)	(3.7	)	1.9
Net (decrease) increase in cash	(102.2	)	(112.9	)	(14.4	)	219.8		69.3

Cash Flow from Operating Activities

Cash generated from operating activities was $214.9 million during the third quarter of 2026, an increase of $101.4 million compared to the same period in 2025. Operating cash flow before change in non-cash working capital was $313.9 million during the third quarter of 2026, reflecting an increase of $243.6 million compared to the third quarter of 2025. The increase in operating cash flows before change in working capital compared to the third quarter of 2025 was primarily the result of higher metal prices and sales volumes, partially offset by higher cash taxes paid which are a function of high taxable profits in earlier quarters in Peru and Manitoba that were subsequently payable.

During the nine months ended September 30, 2026 cash generated from operating activities was $723.2 million, an increase of $225.3 million compared to the same period in 2025. Operating cash flow before changes in non-cash working capital for the nine months ended September 30, 2026 was $732.7 million, an increase of $305.3 million compared to the same period in 2025. The increase was primarily the result of higher metal prices and sales volumes. This was partially offset by a significant increase in cash taxes paid of $132.9 million and stock based compensation paid, compared to the same period in 2025.

Cash Flow from Investing and Financing Activities

During the third quarter of 2026, Hudbay spent $316.7 million in investing and financing activities, primarily driven by $216.5 million in capital expenditures, $45.0 million in net purchases of investments, $22.0 million in repayments on the revolving credit facility, $15.5 million in capitalized lease and equipment financing payments, $6.5 million in transaction costs related to the acquisition of Arizona Sonoran, $5.0 million in deferred land payments associated with the private land purchases completed by Arizona Sonoran, $4.2 million in interest paid on Hudbay's long-term debt, $3.2 million in dividends paid and $3.2 million in financing costs paid. This was partially offset by $9.7 million in interest income received.

During the nine months ended September 30, 2026 Hudbay spent $499.7 million in investing and financing activities, primarily driven by the $509.6 million in capital expenditures,$472.5 million repurchase of the 2026 senior unsecured note, $83.7 million in net purchases of investments, $48.0 million in capitalized lease and equipment financing payments, $34.2 million in interest paid on Hudbay's long-term debt, $22.0 million in repayments on the revolving credit facility and $8.9 million in dividends paid. This was partially offset by proceeds of $411.7 million from the sale of Copper World non-controlling interest, $272.0 million cash proceeds received from the drawdown of the revolving credit facility and $25.8 million in interest income received.

Capital Expenditures

The following summarizes accrued and cash additions to capital assets for the periods indicated:

	Three months ended						Nine months ended				Guidance
	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025		Sep. 30, 2026		Sep. 30, 2025		Annual
(in $ millions)	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025		Sep. 30, 2026		Sep. 30, 2025		2026^2,5
Sustaining capital expenditures
Peru ¹	33.8		26.4		23.6		83.1		96.5		140.0
Manitoba ¹	25.9		20.7		5.5		63.8		29.3		105.0
British Columbia ^1,3	33.3		33.0		42.1		113.2		96.5		190.0
Total sustaining capital expenditures	93.0		80.1		71.2		260.1		222.3		435.0

Growth capital expenditures
Peru	6.8		6.0		1.5		14.2		3.7		40.0
Manitoba	8.1		2.5		1.3		14.0		5.2		15.0
British Columbia	40.3		30.6		21.3		80.4		48.8		115.0
Total growth capital expenditures - excluding Copper World	55.2		39.1		24.1		108.6		57.7		170.0
Copper World growth capitalized costs⁴	66.9		38.3		18.4		134.8		43.5		245.0

Capitalized exploration	7.7		8.4		2.8		21.9		7.3		25.0
Cactus Project capitalized costs	5.9		4.0		-		9.9		-
Right-of-use asset and property, plant & equipment financing additions	40.4		34.7		3.7		111.4		32.6
LOM community agreement accruals	8.1		(0.6	)	13.6		7.4		14.2
Non-cash capitalized stripping and development	4.1		6.1		7.4		19.6		22.3
Grants and other capitalized costs	0.2		(0.3	)	(0.4	)	(0.2	)	(2.2	)
Total other non-sustaining capital costs	188.5		129.7		69.6		413.4		175.4
Total accrued capital additions	281.5		209.8		140.8		673.5		397.7

Reconciliation to cash capital additions:
Other capitalized costs²	(52.6	)	(40.2	)	(24.7	)	(138.4	)	(69.1	)
Change in capital accruals and other	(12.4	)	(16.7	)	(5.7	)	(25.5	)	(5.1	)
Acquisition of property, plant & equipment - cash	216.5		152.9		110.4		509.6		323.5

¹Peru, Manitoba and British Columbia sustaining capital expenditures include capitalized stripping costs and capitalized development.

² Other capitalized costs primarily include right-of-use lease and equipment financing additions, which are excluded from guidance in 2026, community agreement additions and non-cash capitalized stripping.

³Includes 100% of Copper Mountain mine production. On April 30, 2025 Hudbay completed the acquisition of the remaining 25% interest in the Copper Mountain mine and now owns 100%.

⁴Copper World growth capital shown on a 100% basis.

⁵British Columbia growth capital increased by an additional $30 million, compared to the original 2026 guidance of $85 million due to additional costs associated with the development of infrastructure for New Ingerbelle. Copper World growth capital increased by $110 million, compared to the original guidance of $135 million before project sanctioning.

For the three and nine months ended September 30, 2026, total accrued capital expenditures increased by $140.7 million and $275.8 million, respectively, compared to the same period in 2025, primarily due to a planned increase in growth capital in British Columbia and Copper World growth capital.

Sustaining capital expenditures in Peru for the three and nine months ended September 30, 2026 were $33.8 million and $83.1 million, respectively, representing an increase of $10.2 million for the quarter and a decrease of $13.4 million for the nine month period compared to the same periods in 2025 as a result of the timing of various stripping campaigns and civil work projects. Sustaining capital expenditures in Manitoba for the three and nine months ended September 30, 2026 were $25.9 million and $63.8 million, respectively, representing an increase of $20.4 million and $34.5 million, respectively, compared to the same periods in 2025. These increases were primarily driven by project spending on the SART plant and tailing dam raise, as well as prior year spending levels being impacted by wildfire related shutdowns. Sustaining capital expenditures in British Columbia for the three and nine months ended September 30, 2026 were $33.3 million and $113.2 million, respectively, representing a decrease of $8.8 million for the quarter and an increase of $16.7 million for the nine month period compared to the same periods in 2025. Sustaining capital spending included $17.9 million and $82.7 million, respectively, of capitalized stripping related to Hudbay's planned three-year accelerated stripping campaign to access higher grade ore. The quarterly decrease was primarily driven by lower capitalized stripping costs during the period, partially offset by key sustaining projects including the SAG mill feed-end replacement. The nine month increase was primarily due to higher stripping costs driven by increased mine maintenance and fuel expenses, as well as overall larger mill project scopes.

Growth capital spending in Manitoba for the three and nine months ended September 30, 2026 was $8.1 million and $14.0 million, respectively, representing an increase of $6.8 million and $8.8 million, respectively, compared to the same period in 2025. The increases were primarily due to ongoing development activities at the 1901 deposit and feasibility work on the Stall hot tailings project.

Growth capital expenditures in British Columbia for the three and nine months ended September 30, 2026 were $40.3 million and $80.4 million, respectively, representing an increase of $19.0 million and $31.6 million, respectively, compared to the same period in 2025. The increases were primarily driven by the advancement and scope expansion of the New Ingerbelle project, equipment purchases dedicated to the project, exploration drilling, and mine expansion activities, partially offset by the completion of the Ball Mill 3 to Secondary SAG project in 2026.

Growth capital expenditures in Peru for the three and nine months ended September 30, 2026 were $6.8 million and $14.2 million, respectively, representing an increase of $5.3 million and $10.5 million, respectively compared to the same period in 2025. The increases were primarily driven by the pebble crusher implementation and the rougher cell project.

Copper World's capital expenditures for the three and nine months ended September 30, 2026 were $66.9 million and $134.8 million, respectively, mainly related to ongoing carrying costs and feasibility preparation. Initial growth capital guidance of $135 million primarily related to feasibility study costs and de-risking activities until a Copper World project sanctioning decision and did not include post-project sanctioning construction costs. With the sanctioning of Copper World, the Company now expects growth expenditures related to the Copper World joint venture to total $245 million in 2026, reflecting an increase of $110 million related to project construction and development costs in the fourth quarter of 2026.

Capitalized exploration for the three months and nine months ended September 30, 2026 was $7.7 million and $21.9 million, respectively, primarily related to New Ingerbelle.

Full year 2026 sustaining capital expenditures are expected to be $35 million lower than guidance levels due to lower capitalized stripping in Peru and British Columbia and capital deferrals and efficiencies. Full year growth capital expenditures, excluding the Copper World joint venture expenditures, are tracking in line with the revised guidance levels of $170 million reflecting the additional $30 million in infrastructure development costs at New Ingerbelle in British Columbia announced in the second quarter of 2026. As disclosed with the Copper World FID announcement and noted above, Hudbay provided post-FID spending guidance at Copper World of $110 million for the fourth quarter of 2026.

Capital Commitments

As at September 30, 2026, Hudbay had outstanding capital commitments in Canada of approximately $69.9 million, of which $37.7 million can be terminated, approximately $9.5 million in Peru primarily related to sustaining capital commitments and exploration option agreements, all of which can be terminated, and approximately $199.6 million in the United States, primarily related to the Copper World project, of which $197.4 million can be terminated.

Contractual Obligations

The following table summarizes Hudbay's significant contractual obligations as at September 30, 2026:

	Total	Less than 12 months	13 - 36 months	37 - 60 months	More than 60 months
Payment Schedule (in $ millions)	Total	Less than 12 months	13 - 36 months	37 - 60 months	More than 60 months
Long-term debt obligations¹	1,002.7	52.6	882.3	4.7	63.1
Property, plant and equipment financing and lease obligations²	305.9	105.2	128.9	53.4	18.4
Purchase obligation - capital commitments	279.0	198.8	68.6	1.0	10.6
Purchase obligation - other commitments³	1,289.1	524.3	334.1	119.5	311.2
Deferred payment and contingent obligations	36.8	3.0	6.0	13.5	14.3
Pension and other employee future benefits obligations⁴	89.1	4.3	15.0	8.0	61.8
Deferred land payments	114.6	5.0	109.6	-	-
Community agreement obligations^{5, 6}	116.1	56.9	10.9	9.2	39.1
Decommissioning and restoration obligations⁶	534.7	11.9	12.9	11.4	498.5
Total	3,768.0	962.0	1,568.3	220.7	1,017.0

¹Long-term debt obligations include scheduled interest payments, as well as principal repayments.

² Lease obligations include payments related to short-term, low-value and variable lease obligations.

³Primarily made up of trades payables, accrued liabilities, long-term agreements with operational suppliers, obligations for power purchases, concentrate handling and fleet and port services.

⁴ Discounted.

⁵Represents community agreement obligations and various finalized land user agreements, including Pampacancha.

⁶ Undiscounted before inflation.

In addition to the contractual obligations included in the above payment schedule, Hudbay also has the following commitments which impact Hudbay's financial position:

- A profit-sharing plan with most Manitoba employees;

- A profit-sharing plan with all Peru employees;

- Share-based compensation;

- Wheaton precious metals stream agreement for the Constancia mine;

- Government royalty payments related to the Constancia mines;

- Participation agreements related to the Copper Mountain mine, and

- Contracts related to future production and sales, such as royalties.

Outstanding Share Data

As of November 10, 2026, the final trading day prior to the date of this MD&A, there were 444,150,822 common shares of Hudbay issued and outstanding. In addition, there were 2,396,375 stock options outstanding.

TREND ANALYSIS AND QUARTERLY REVIEW

A detailed quarterly and annual summary of financial and operating performance can be found in the "Summary of Results" section at the end of this MD&A. The following table sets forth selected consolidated financial information for each of Hudbay's eight most recently completed quarters:

(in $ millions, except per share amounts, production on a copper equivalent basis and average realized copper price)	2026			2025				2024
	Q3	Q2	Q1	Q4²	Q3	Q2	Q1	Q4²
Production on a copper equivalent basis (tonnes)	56,152	51,449	57,635	71,242	46,224	53,693	58,611	77,769
Average realized copper price ($/lb)	6.49	6.13	5.81	5.17	4.37	4.36	4.49	4.09
Average realized gold price ($/oz)	4,190	4,312	4,468	3,580	3,522	3,135	3,002	2,327
Revenue	765.9	631.3	757.3	732.9	346.8	536.4	594.9	584.9
Gross profit	346.2	269.0	368.0	270.1	65.3	176.5	231.3	184.4
Income before tax	290.2	240.4	339.0	257.1	330.5	153.1	171.3	103.7
Net income	151.0	138.1	191.5	128.0	222.4	114.7	99.2	19.3
Net income - attributable	149.5	137.4	190.4	128.0	222.4	117.7	100.4	21.2
Adjusted net earnings ¹- attributable	149.5	113.5	159.1	86.0	10.1	75.5	93.8	70.3
Earnings per share attributable:
Basic and diluted	0.34	0.34	0.48	0.32	0.56	0.30	0.25	0.05
Adjusted net earnings¹ per share - attributable	0.34	0.28	0.40	0.22	0.03	0.19	0.24	0.18
Operating cash flow before change in non-cash working capital	313.9	210.1	208.7	336.9	70.3	193.9	163.5	231.5
Adjusted EBITDA¹	413.4	321.2	421.9	385.9	142.6	245.2	287.2	257.3
Adjusted EBITDA LTM¹	1,542.4	1,271.6	1,195.6	1,060.9	932.3	995.9	895.7	823.3

² Annual consolidated results may not calculate based on amounts presented in this table due to rounding.

On a quarterly basis, Hudbay's revenue is primarily impacted by metal prices, production mix and sales volumes of the key metals Hudbay produces. In addition to these factors, gross profit, net earnings (loss) attributable, earnings (loss) per share attributable, operating cash flow before change in non-cash working capital and adjusted EBITDA are also impacted by input costs. Net earnings (loss) and earnings (loss) per share are further impacted by net finance expense and re-evaluation adjustments of Hudbay's closed site environmental provision.

During the third quarter of 2026, copper equivalent production, sales, and financial performance increased compared to the second quarter of 2026, driven by higher realized copper prices of $6.49 per pound and higher copper equivalent production of 56,152 tonnes. Revenue grew to $765.9 million and gross profit expanded to $346.2 million, supported by stronger production and sales volumes in Manitoba, the realization of delayed Peru concentrate shipments from the second quarter, and consistent operational execution across all business units. Operating cash flow before non-cash working capital increased to $313.9 million, while quarterly Adjusted EBITDA rose to $413.4 million, delivering a record trailing twelve-month adjusted EBITDA of $1,542.4 million.

During the second quarter of 2026, copper equivalent production, sales and gross margin declined compared to the most recent period, primarily driven by lower overall production volumes and lower realized gold prices compared to the first quarter of 2026. Consequently, revenue, gross profit and income before tax decreased during the quarter. Sales volumes was impacted by a temporary build-up of concentrate inventory at the port in Peru. This accumulation was caused by ocean swells that resulted in temporary port closures and delayed scheduled shipments, which have been realized during the first half of July 2026. In addition, given global political tensions, energy and consumable input prices have risen and this has exerted pressure on gross profit.

During the first quarter of 2026, revenue and gross profit reached record levels, driven by higher realized metal prices and disciplined cost management, which resulted in record quarterly and last twelve months adjusted EBITDA. While consolidated copper equivalent production decreased to 56,152 tonnes compared to the most recent quarter following the planned depletion of Pampacancha, consolidated cash cost improved following the successful initial ramp up of the secondary SAG mill, leading to improved throughput levels and enhanced operational efficiencies. Operating cash flow decreased primarily due to higher cash taxes paid and elevated share-based compensation payments resulting from higher share prices, these were partially offset by lower depreciation charges following the Pampacancha closure and by higher realized metal prices across all metals.

During the fourth quarter of 2025, copper equivalent production increased to 71,242 tonnes compared to the most recent quarters. This was primarily due to higher realized price across all metals, partially offset by a one-week power outage in Manitoba during the fourth quarter of 2025 due to weather related constraints. Hudbay achieved record quarterly revenue of $732.9 million as a result of high metal prices, despite the one-week operational interruption in Manitoba in October. In addition, along with continued strong cost control and productivity gains coming from previous investments in optimization efforts, Hudbay achieved record high gross profit. The cumulative effect of the high commodity prices, cost control and optimization efforts resulted in Hudbay achieving record adjusted EBITDA over a twelve month period of $1.06 billion.

During the third quarter of 2025, copper equivalent production decreased to 46,224 tonnes because of reduced copper and zinc output. This was primarily due to the temporary suspension of operations in Manitoba in July and August related to the wildfire evacuation order and the Peru temporary suspension for nine days during the third quarter of 2025 caused by social unrest. As a result of the social unrest impacting transportation routes earlier in the quarter and ocean swells impacting port shipments in late September, a 20,000 dry metric tonne copper concentrate shipment valued at $60 million was deferred to early October 2025. The temporary operational suspensions during the quarter increased pressure on gross margins and operating cash flow compared to the earlier quarters. Earnings in the third quarter of 2025 also included an after-tax impairment reversal of $242.7 million, following the announcement of the Copper World joint venture transaction with Mitsubishi for a 30% minority interest.

After adjusting for the fixed costs associated with the temporary suspensions in Manitoba and Peru, production costs continue to be well controlled and comparable to prior periods.

During the second quarter of 2025, copper equivalent production decreased to 53,693 tonnes because of reduced copper, gold and silver output. This was primarily due to the temporary suspension of operations in Manitoba in June related to the wildfire evacuation order. This was partially offset by record average gold prices and high copper prices which positively impacted gross profits and contributing to increased net income and higher earnings per share in the second quarter of 2025. While higher profitability led to significant cash taxes paid of $43.9 million, the business's strong operating performance caused the overall impact to operating cash flow before changes in non-cash working capital to remain positive. Higher foreign exchange gains due to the strengthening of the Canadian dollar along with declining net interest cost as a result of Hudbay's deleveraging efforts led to reduced net finance expenses in the second quarter. Adjusted EBITDA over the last twelve months hit a record high of $995.9 million as a result of strong operating performances at the Manitoba and Peru operations resulting in higher sales volumes, benefitting from high copper and gold prices. Net debt to EBITDA is now at its lowest level since the development of the Peru operation more than a decade ago given the business's strong operating performance in conjunction with the same aforementioned deleveraging efforts. The lower net debt and stronger cash position is despite larger reinvestment in the business through growing capital expenditures in recent years.

During the first quarter of 2025, copper equivalent production decreased to 58,611 tonnes as expected, reflecting lower production of copper, gold and silver primarily related to lower planned grades in Peru as the final stripping phase at the Pampacancha deposit was underway. This was partially offset by higher gold production in Manitoba and record average gold prices and high copper prices which positively impacted gross profits.

The Manitoba operations delivered strong quarterly throughput as expected and unlocked better-than-expected grades, resulting in higher production that exceeded Hudbay's quarterly cadence expectations. Strong cost control, a weaker Canadian dollar and meaningful exposure to gold by-product credits resulted in consolidated cash cost¹ and sustaining cash cost¹per pound of copper produced, net of by-product credits, in the first quarter of 2025 of $(0.45) and $0.72, respectively, contributing to the increased gross margin and very strong growth in adjusted EBITDA. Higher profits since 2023 in Peru and Canada have resulted in significant cash taxes paid of $117.5 million in the first quarter of 2025, which is reflected in operating cash flow before changes in non-cash working capital. In addition, deleveraging efforts including the repurchases of the Company's senior secured notes over the course of 2024 led to declining net interest cost to service Hudbay's long term debt.

During the fourth quarter of 2024, copper equivalent production increased to 77,769 tonnes. Hudbay's Manitoba and Peru operations delivered strong quarterly production as expected and unlocked higher grade helping the Company exceed 2024 annual gold guidance. Strong cost control and meaningful exposure to gold by-product credits resulted in consolidated cash cost¹ and sustaining cash cost¹ per pound of copper produced, net of by-product credits¹, in the fourth quarter of 2024 of $0.45 and $1.37, respectively, contributing to Hudbay's outperformance of its improved full year 2024 cost guidance. Furthermore, the settlement of the gold prepayment liability in the third quarter of 2024, allowed Hudbay to capitalize on surging gold prices. Since acquiring Copper Mountain in June 2023, Hudbay has moved to optimization efforts which have been focused on ramping up the mining fleet to execute a planned accelerated stripping campaign to gain access to higher grades, as well as plant improvement initiatives to improve mill reliability and recoveries.

NON-GAAP FINANCIAL PERFORMANCE MEASURES

Adjusted net earnings (loss) attributable to owners, adjusted net earnings (loss) per share attributable to owners, adjusted EBITDA, realized prices, net debt, net debt to adjusted EBITDA, free cash flow, 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 gross 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 Hudbay'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. Realized price is shown to understand the average realized price of metals sold to third parties in each reporting period. Free cash flow is shown as it provides investors and management additional information in assessing the Company's ability to generate cash flow from current operations after investing in capital to sustain the operations. Cash cost, sustaining and all-in sustaining cash cost per pound of copper produced are shown because Hudbay 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 Hudbay 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 cost structure and margins that are not impacted by variability in by-product commodity prices.

Adjusted Net Earnings - Attributable to owners

Adjusted net earnings attributable to owners represents net earnings (loss) excluding certain impacts such as mark-to-market adjustments, foreign exchange (gains) loss, revaluation adjustment - environmental provisions for closed sites, variable consideration adjustment related to stream agreements, impairment charges and reversal of impairment charges on assets, (gain) loss on disposal of assets, evaluation costs, temporary shut down costs other items that are not indicative of the underlying operating performance of Hudbay's core business; and tax effect and non-controlling interest of the previously discussed items. These measures are not necessarily indicative of net earnings (loss) as determined under IFRS. The following table provides a reconciliation of net earnings and non-controlling interest per the condensed consolidated interim statements of income, to adjusted net earnings attributable to owners of the Company for the three months ended September 30 and June 30, 2026, and September 30, 2025 and nine months ended September 30, 2026 and 2025.

	Three months ended						Nine months ended
(in $ millions)	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025		Sep. 30, 2026		Sep. 30, 2025
Earnings for the period	151.0		138.1		222.4		480.6		436.3
Tax expense	139.2		102.3		108.1		389.0		218.6
Earnings before tax	290.2		240.4		330.5		869.6		654.9
Adjusting items:
Mark-to-market adjustments¹	5.4		(38.2	)	8.7		(71.5	)	11.9
Foreign exchange (gain) loss	(0.7	)	12.0		8.8		22.0		(13.2	)
Re-evaluation adjustment - environmental provision	(11.8	)	5.5		1.4		(4.2	)	0.4
Manitoba cost of sales and other expense from temporary shutdown	-		-		24.2		-		29.5
Peru cost of sales from temporary shutdown	-		-		10.9		-		10.9
Consideration received from previously sold non-core project	(0.9	)	-		(14.9	)	(0.9	)	(14.9	)
Copper World impairment reversal	-		-		(322.3	)	-		(322.3	)
Variable consideration adjustment - stream revenue and accretion	-		-		-		0.1		(10.5	)
Inventory adjustments	-		0.9		(1.3	)	0.9		3.4
Evaluation expenses	13.4		9.2		-		25.5		-
Insurance recovery	-		(11.5	)	-		(11.5	)	-
Restructuring charges	-		-		-		-		0.1
Reduction of obligation to renounce flow-through share expenditures, net of provisions	(1.0	)	(2.8	)	(0.8	)	(7.1	)	(3.9	)
Loss/write-down on disposal of PP&E	3.9		0.5		(0.3	)	5.4		0.6
Changes in other provisions (non-capital)	-		-		-		-		0.7
Adjusted earnings before income taxes	298.5		216.0		44.9		828.3		347.6
Tax expense	(139.2	)	(102.3	)	(108.1	)	(389.0	)	(218.6	)
Tax impact of adjusting items	(8.3	)	0.5		73.3		(12.0	)	47.5
Adjusted net earnings	151.0		114.2		10.1		427.3		176.5
Adjusted net earnings attributable to non-controlling interest:
Net (earnings) loss for the period	(1.5	)	(0.7	)	-		(3.3	)	4.2
Adjusting items, including tax impact	-		-		-		-		(1.1	)
Adjusted net earnings - attributable to owners	149.5		113.5		10.1		424.0		179.6
Adjusted net earnings ($/share) - attributable to owners	0.34		0.28		0.03		1.07		0.45
Basic weighted average number of common shares outstanding (millions)	444.1		400.4		395.7		397.7		395.3

¹ Includes changes in fair value of Canadian junior mining investments, unrealized changes in other financial assets and liabilities at fair value through net earnings and share-based compensation expenses (recoveries). Also includes gains and losses on disposition of investments.

Adjusted EBITDA

Adjusted EBITDA is net earnings before net finance expense/income, tax expense/recoveries, depreciation and amortization of property, plant and equipment and deferred revenue, as well as certain other adjustments. Hudbay calculates adjusted EBITDA by excluding certain adjustments included within Hudbay's adjusted net earnings attributable measure which reflects the underlying performance of Hudbay's core operating activities. The measure also removes the impact of non-cash items and financing costs that are not associated with measuring the underlying performance of Hudbay's operations. However, Hudbay's adjusted EBITDA is not the measure defined as EBITDA under Hudbay's senior notes or revolving credit facilities and may not be comparable with performance measures with the same name reported by other companies. Adjusted EBITDA should not be considered as a substitute for earnings, which is calculated in accordance with IFRS. Hudbay provides adjusted EBITDA to help users analyze their results and to provide additional information about Hudbay's ongoing cash generating potential in order to assess its capacity to service and repay debt, carry out investments and cover working capital needs.

The following table presents the reconciliation of earnings per the condensed consolidated interim statements of income, to adjusted EBITDA for the three months ended September 30 and June 30, 2026, and September 30, 2025 and nine months September 30, 2026 and 2025:

	Three months ended						Nine months ended
(in $ millions)	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025		Sep. 30, 2026		Sep. 30, 2025
Earnings for the period	151.0		138.1		222.4		480.6		436.3
Add back:
Tax expense	139.2		102.3		108.1		389.0		218.6
Net finance (income) expense	(4.0	)	(20.7	)	19.6		(58.5	)	34.0
Other operating expense	12.5		(4.8	)	7.5		14.2		17.9
Evaluation expenses	13.4		9.2		1.2		25.5		2.7
Depreciation and amortization	102.0		88.8		82.7		290.7		287.2
Amortization of deferred revenue and variable consideration adjustment	(10.3	)	(9.5	)	(6.3	)	(39.3	)	(51.0	)
Adjusting items (pre-tax):
Impairment reversal	-		-		(322.3	)	-		(322.3	)
Consideration received from sale of non-core project	(0.9	)	-		(14.9	)	(0.9	)	(14.9	)
Re-evaluation adjustment - environmental provision	(11.8	)	5.5		1.4		(4.2	)	0.4
Inventory adjustments	-		0.9		(1.3	)	0.9		3.4
Overhead costs incurred during Manitoba temporary suspension (cash)	-		-		16.0		-		19.2
Overhead costs incurred during Peru temporary suspension (cash)	-		-		7.3		-		7.3
Option agreement proceeds	0.7		1.0		1.1		2.3		3.6
Realized loss on non-QP hedges	(1.2	)	(0.1	)	-		(1.3	)	(2.3	)
Share-based compensation expense	22.8		10.5		20.1		57.5		34.9
Adjusted EBITDA	413.4		321.2		142.6		1,156.5		675.0

Net Debt

The following table presents Hudbay's calculation of net debt as at September 30, 2026 and December 31, 2025:

(in $ millions)	Sep. 30, 2026		Dec. 31, 2025
Total long-term debt	838.7		1,008.6
Cash and cash equivalents¹	(788.7	)	(568.9	)
Restricted cash related to unspent proceeds on senior unsecured municipal bonds ²	(50.1	)	-
Net debt ²	(0.1	)	439.7

¹ As at September 30, 2026 cash and cash equivalents includes $290.1 million in cash held by Copper World LLC. These funds are contractually restricted for the advancement of the Copper World project and are not available to the general Hudbay group.

²Hudbay calculates net debt as total long-term debt less cash and cash equivalents and restricted cash related to unspent proceeds of its senior unsecured municipal bond financing. For further information on the restricted cash related to unspent proceeds of senior unsecured municipal bond financing please see note 12 in the consolidated interim financial statements.

Net Debt to Adjusted EBITDA Ratio

The following table presents Hudbay's calculation of net debt to adjusted EBITDA, both metrics have been reconciled above to the most comparable IFRS measure, as at September 30, 2026 and December 31, 2025:

(in $ millions, except net debt to adjusted EBITDA ratio)	Sep. 30, 2026		Dec. 31, 2025
Net debt	(0.1	)	439.7
Adjusted EBITDA for the last twelve months	1,542.4		1,060.9
Net debt to adjusted EBITDA	0.0		0.4

The following table presents the reconciliation of earnings per the condensed consolidated interim statements of income, to adjusted EBITDA for the twelve months ended September 30, 2026 and December 31, 2025:

	Twelve months ended
(in $ millions)	Sep. 30, 2026		Dec. 31, 2025
Earnings for the period	608.6		564.3
Add back:
Tax expense	518.1		347.7
Net finance (income) expense	(73.1	)	19.4
Other operating expense	(0.8	)	2.9
Evaluation expenses	26.3		3.5
Depreciation and amortization	443.2		439.7
Amortization of deferred revenue and variable consideration adjustment	(63.3	)	(75.0	)
Adjusting items (pre-tax):
Impairment reversal	-		(322.3	)
Consideration received from previously sold non-core project	(0.9	)	(14.9	)
Re-evaluation adjustment - environmental provision	(4.4	)	0.2
Inventory adjustments	1.6		4.1
Overhead costs incurred during Manitoba temporary suspension (cash)	-		19.2
Overhead costs incurred during Peru temporary suspension (cash)	1.3		8.6
Option agreement proceeds	3.2		4.5
Realized loss on non-QP hedges	(1.3	)	(2.3	)
Share-based compensation expense	83.9		61.3
Adjusted EBITDA for the last twelve months	1,542.4		1,060.9

The following table presents the calculation of the last twelve months adjusted EBITDA:

	Three months ended								LTM¹
Trailing Adjusted EBITDA (in $ millions)	Sept. 30, 2026		Jun. 30, 2026		Mar. 31, 2026		Dec. 31, 2025		LTM¹
Earnings for the period	151.0		138.1		191.5		128.0		608.6
Add back:
Tax expense	139.2		102.3		147.5		129.1		518.1
Net finance (income)	(4.0	)	(20.7	)	(33.8	)	(14.6	)	(73.1	)
Other operating expenses (income)	12.5		(4.8	)	6.5		(15.0	)	(0.8	)
Evaluation expense	13.4		9.2		2.9		0.8		26.3
Depreciation and amortization	102.0		88.8		99.9		152.5		443.2
Amortization of deferred revenue and variable consideration adjustment	(10.3	)	(9.5	)	(19.5	)	(24.0	)	(63.3	)
Adjusting items (pre-tax):
Consideration received from previously sold non-core project	(0.9	)	-		-		-		(0.9	)
Re-evaluation adjustment - environmental provision	(11.8	)	5.5		2.1		(0.2	)	(4.4	)
Inventory adjustments	-		0.9		-		0.7		1.6
Overhead costs incurred during Peru temporary suspension (cash)	-		-		-		1.3		1.3
Realized loss on non-QP hedges	(1.2	)	(0.1	)	-		-		(1.3	)
Option agreement proceeds	0.7		1.0		0.6		0.9		3.2
Share-based compensation expenses	22.8		10.5		24.2		26.4		83.9
Adjusted EBITDA	413.4		321.2		421.9		385.9		1,542.4

¹ LTM (last twelve months) as of September 30, 2026.

Free Cash Flow

Hudbay defines free cash flow as cash generated from operations adjusted for changes in non-cash working capital, sustaining capital expenditures and cash payments from operating sites related to leases, equipment financings and community agreements. Free cash flow is intended to provide additional information only and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS Accounting Standards. This measure is not necessarily indicative of cash flow from operations as determined under IFRS Accounting Standards. The following table presents Hudbay's calculation of free cash flow and reconciles to the most directly comparable IFRS measure:

Three months ended

Nine months ended

(in $ millions)

Sep. 30,
2026

Sep. 30,
2025

Sep. 30,
2026

Sep. 30,
2025

Cash generated from operations

214.9

113.5

723.2

497.9

Less:

Change in non-cash working capital

(99.0

)

43.2

(9.5

)

70.5

Adjusted sustaining capital expenditures

112.0

86.4

326.1

272.7

Free cash flow

201.9

(16.1

)

406.6

154.7

Adjusted sustaining capital expenditures

Total sustaining capital costs¹

93.0

71.2

260.1

222.3

Capitalized lease and equipment financing cash payments - operating sites

14.5

14.3

44.8

40.5

Community agreement cash payments

4.5

0.9

21.2

9.9

Adjusted sustaining capital expenditures

112.0

86.4

326.1

272.7

¹ See reconciliation to property, plant & equipment additions on page 64 of this MD&A.

The following table presents the calculation of the last twelve months free cash flow:

	Three months ended						LTM¹
(in $ millions)	Sept. 30, 2026		Jun. 30, 2026	Mar. 31, 2026	Dec. 31, 2025		LTM¹
Cash generated from operations	214.9		297.0	211.3	209.4		932.6
Less:
Change in non-cash working capital	(99.0	)	86.9	2.6	(127.5	)	(137.0	)
Adjusted sustaining capital expenditures	112.0		108.3	106.4	111.9		438.6
Free cash flow	201.9		101.8	102.3	225.0		631.0

Adjusted sustaining capital expenditures
Total sustaining capital costs²	93.0		80.1	87.0	91.8		351.9
Capitalized lease and equipment financing cash payments - operating sites	14.5		15.2	15.7	12.5		57.9
Community agreement cash payments	4.5		13.0	3.7	7.6		28.8
Adjusted sustaining capital expenditures	112.0		108.3	106.4	111.9		438.6

¹LTM (last twelve months) as at September 30, 2026

²See reconciliation to property, plant & equipment additions on page 65 of this MD&A.

Cash Cost, Sustaining and All-in Sustaining Cash Cost (Copper Basis)

Cash cost per pound of copper produced ("cash cost") is a non-GAAP measure that management uses as a key performance indicator to assess the performance of its operations. Hudbay's calculation designates copper as the primary metal of production as it has been the largest component of revenues. The calculation is presented in four manners:

- Cash cost, before by-product credits - This measure is gross of by-product revenues and is a function of the efforts and costs incurred to mine and process all ore mined. However, the measure divides this aggregate cost over only pounds of copper produced, Hudbay's primary metal of production. This measure is generally less volatile from period to period, as it is not affected by changes in the price received for by-product metals. It is, however, affected by the relative mix of copper concentrate and zinc concentrate production, where an increase in production of zinc concentrate will tend to result in an increase in cash cost under this measure.

- Cash cost, net of by-product credits - In order to calculate the net cost to produce and sell copper, the net of by-product credits measure subtracts the revenues realized from the sale of the metals other than copper. The by-product revenues from zinc, gold, and silver are significant and are integral to the economics of Hudbay's operations. The economics that support Hudbay's decision to produce and sell copper would be different if Hudbay did not receive revenues from the other significant metals being extracted and processed. This measure provides management and investors with an indication of the minimum copper price consistent with positive operating margins, assuming realized by-product metal prices are consistent with those prevailing during the reporting period. It also serves as an important operating statistic that management and investors utilize to measure its operating performance versus that of its competitors. However, it is important to understand that if by-product metal prices decline alongside copper prices, the cash cost net of by-product credits would increase, requiring a higher copper price than that reported to maintain positive cash flows and operating margins.

- Sustaining cash cost, net of by-product credits - This measure is an extension of cash cost that includes cash sustaining capital expenditures, including payments on capitalized leases, payments on equipment financing, capitalized sustaining exploration, net smelter returns royalties, payments on certain long-term community agreements, as well as accretion and amortization for expected decommissioning activities for producing assets. It does not include corporate selling and administrative expenses. It provides a more fulsome measurement of the cost of sustaining production than cash cost, which is focused on operating costs only.

- All-in sustaining cash cost, net of by-product credits - This measure is an extension of sustaining cash cost that includes corporate G&A, regional costs, accretion and amortization for community agreements relating to current operations, and accretion for expected decommissioning activities for non-producing sites. Due to the inclusion of corporate selling and administrative expenses, all-in sustaining cash cost is presented on a consolidated basis only.

The tables below present a detailed build-up of cash cost and sustaining cash cost, net of by-product credits, by business unit in addition to consolidated all-in sustaining cash cost, net of by-product credits, and reconciliations between cash cost, net of by-product credits, to the most comparable IFRS measures of cost of sales for the three months ended September 30, and June 30, 2026 and September 30, 2025 and nine months ended September 30, 2026 and 2025. Cash cost, net of by-product credits may not calculate exactly based on amounts presented in the tables below due to rounding.

Consolidated

Three months ended

Nine months ended

(in thousands)

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Sep. 30, 2026

Sep. 30, 2025

Peru

45,353

42,871

39,934

133,580

132,535

Manitoba

6,640

5,216

1,856

17,445

13,058

British Columbia

14,480

14,231

11,572

39,339

42,062

Net pounds of copper produced¹

66,473

62,318

53,362

190,364

187,655

¹ Contained copper in concentrate.

Consolidated	Three months ended
	Sep. 30, 2026				Jun. 30, 2026				Sep. 30, 2025
Cash cost per pound of copper produced	$ millions		$/lb		$ millions		$/lb		$ millions		$/lb
Cash cost, before by-product credits	310.9		4.68		285.0		4.57		198.0		3.71
By-product credits	(323.8	)	(4.87	)	(309.7	)	(4.97	)	(175.8	)	(3.29	)
Cash cost, net of by-product credits	(12.9	)	(0.19	)	(24.7	)	(0.40	)	22.2		0.42

Consolidated	Nine months ended
	Sep. 30, 2026				Sep. 30, 2025
Cash cost per pound of copper produced	$ millions		$/lb		$ millions		$/lb
Cash cost, before by-product credits	867.4		4.56		697.3		3.71
By-product credits	(1,015.6	)	(5.34	)	(707.8	)	(3.77	)
Cash cost, net of by-product credits	(148.2	)	(0.78	)	(10.5	)	(0.06	)

Consolidated	Three months ended
	Sep. 30, 2026				Jun. 30, 2026				Sep. 30, 2025
Cash cost per pound of copper produced	$ millions		$/lb		$ millions		$/lb		$ millions	$/lb
Mining	138.3		2.08		117.0		1.88		70.2	1.32
Milling	94.6		1.42		94.4		1.51		75.8	1.42
G&A	62.2		0.94		52.2		0.84		31.8	0.59
Onsite costs	295.1		4.44		263.6		4.23		177.8	3.33
Treatment & refining	(9.4	)	(0.14	)	(0.1	)	(0.01	)	5.3	0.10
Freight & other	25.2		0.38		21.5		0.35		14.9	0.28
Cash cost, before by-product credits	310.9		4.68		285.0		4.57		198.0	3.71

Consolidated

Nine months ended

Sep. 30, 2026

Sep. 30, 2025

Cash cost per pound of copper produced

$ millions

$/lb

$ millions

$/lb

Mining

348.3

1.83

247.2

1.32

Milling

280.2

1.47

249.0

1.32

G&A

176.0

0.93

118.5

0.63

Onsite costs

804.5

4.23

614.7

3.27

Treatment & refining

(6.4

)

(0.03

)

22.6

0.12

Freight & other

69.3

0.36

60.0

0.32

Cash cost, before by-product credits

867.4

4.56

697.3

3.71

Consolidated	Three months ended
	Sep. 30, 2026			Jun. 30, 2026			Sep. 30, 2025
Supplementary cash cost information	$ millions		$/lb ¹	$ millions		$/lb ¹	$ millions		$/lb ¹
By-product credits²:
Zinc	19.3		0.29	9.2		0.15	9.9		0.18
Gold³	255.7		3.85	242.6		3.89	134.8		2.53
Silver³	27.2		0.41	35.4		0.57	13.9		0.26
Molybdenum & other	21.6		0.32	22.5		0.36	17.2		0.32
Total by-product credits	323.8		4.87	309.7		4.97	175.8		3.29
Reconciliation to IFRS:
Cash cost, net of by-product credits	(12.9	)		(24.7	)		22.2
By-product credits	323.8			309.7			175.8
Treatment and refining charges	9.4			0.1			(5.3	)
Inventory adjustments	-			0.9			(1.3	)
Share-based compensation expense	1.0			1.2			1.7
Change in product inventory	(10.9	)		(17.3	)		(19.6	)
Royalties and statutory contributions⁵	7.3			3.6			2.0
Overhead costs incurred during Manitoba temporary suspension (cash)	-			-			16.0
Overhead costs incurred during Peru temporary suspension (cash)	-			-			7.3
Depreciation and amortization⁴	102.0			88.8			82.7
Cost of sales⁶	419.7			362.3			281.5

¹Per pound of copper produced.

²By-product credits are computed as revenue per financial statements, including amortization of deferred revenue and pricing and volume adjustments. For more information, please see the realized price reconciliation table on page 33 of this MD&A for these figures.

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 September 30, 2026 the variable consideration adjustments amounted to $nil (three months ended September 30, 2025 - $nil and June 30, 2026 -$nil).

⁴Depreciation is based on concentrate sold.

⁵ Certain of Hudbay's properties are subject to royalty arrangements based on mineral production at the properties. Royalties include net smelter return royalty and price participation agreements.

⁶ As per consolidated interim financial statements.

Consolidated

Nine months ended

Sep. 30, 2026

Sep. 30, 2025

Supplementary cash cost information

$ millions

$/lb¹

$ millions

$/lb¹

By-product credits²:

Zinc

40.9

0.22

31.0

0.17

Gold³

795.7

4.18

556.0

2.95

Silver³

106.0

0.56

63.4

0.34

Molybdenum & other

73.0

0.38

57.4

0.31

Total by-product credits

1,015.6

5.34

707.8

3.77

Reconciliation to IFRS:

Cash cost, net of by-product credits

(148.2

)

(10.5

)

By-product credits

1,015.6

707.8

Treatment and refining charges

6.4

(22.6

)

Inventory adjustments

0.9

3.4

Share-based compensation expense

5.1

3.3

Change in product inventory

(15.2

)

3.8

Royalties and statutory contributions⁵

16.0

6.1

Overhead costs incurred during Manitoba temporary suspension (cash)

19.2

Overhead costs incurred during Peru temporary suspension (cash)

7.3

Depreciation and amortization⁴

290.7

287.2

Cost of sales⁶

1,171.3

1,005.0

¹Per pound of copper produced.

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 nine months ended September 30, 2026 the variable consideration adjustments amounted to a gain of $0.1 million (nine months ended September 30, 2025 - gain of $9.9 million).

⁴Depreciation is based on concentrate sold.

⁵ Certain of Hudbay's properties are subject to royalty arrangements based on mineral production at the properties. Royalties include net smelter return royalty and price participation agreements.

⁶ As per consolidated interim financial statements.

Peru

Three months ended

Nine months ended

(in thousands)

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Sep. 30, 2026

Sep. 30, 2025

Net pounds of copper produced¹

45,353

42,871

39,934

133,580

132,535

¹Contained copper in concentrate.

Peru	Three months ended
	Sep. 30, 2026				Jun. 30, 2026				Sep. 30, 2025
Cash cost per pound of copper produced	$ millions		$/lb		$ millions		$/lb		$ millions		$/lb
Mining	49.5		1.09		42.2		0.98		34.8		0.87
Milling	45.3		1.00		50.9		1.19		40.8		1.02
G&A	32.9		0.73		25.4		0.59		19.3		0.48
Onsite costs	127.7		2.82		118.5		2.76		94.9		2.37
Treatment & refining	(5.3	)	(0.12	)	(0.5	)	(0.01	)	3.4		0.08
Freight & other	15.6		0.34		12.7		0.30		9.4		0.24
Cash cost, before by-product credits	138.0		3.04		130.7		3.05		107.7		2.69
By-product credits	(36.7	)	(0.81	)	(59.7	)	(1.39	)	(55.5	)	(1.39	)
Cash cost, net of by-product credits	101.3		2.23		71.0		1.66		52.2		1.30

Peru	Nine months ended
	Sep. 30, 2026				Sep. 30, 2025
Cash cost per pound of copper produced	$ millions		$/lb		$ millions		$/lb
Mining	126.2		0.94		93.9		0.71
Milling	139.6		1.05		143.0		1.08
G&A	91.5		0.68		65.0		0.49
Onsite costs	357.3		2.67		301.9		2.28
Treatment & refining	(7.4	)	(0.06	)	10.0		0.07
Freight & other	42.4		0.32		37.0		0.28
Cash cost, before by-product credits	392.3		2.94		348.9		2.63
By-product credits	(188.2	)	(1.41	)	(177.5	)	(1.34	)
Cash cost, net of by-product credits	204.1		1.53		171.4		1.29

Peru	Three months ended
	Sep. 30, 2026		Jun. 30, 2026			Sep. 30, 2025
Supplementary cash cost information	$ millions	$/lb ¹	$ millions		$/lb ¹	$ millions		$/lb ¹
By-product credits²:
Gold³	8.4	0.18	16.3		0.38	31.3		0.78
Silver³	7.1	0.16	21.0		0.49	7.0		0.18
Molybdenum	21.2	0.47	22.4		0.52	17.2		0.43
Total by-product credits	36.7	0.81	59.7		1.39	55.5		1.39
Reconciliation to IFRS:
Cash cost, net of by-product credits	101.3		71.0			52.2
By-product credits	36.7		59.7			55.5
Treatment and refining charges	5.3		0.5			(3.4	)
Inventory adjustments	-		-			(1.3	)
Share-based compensation expenses	0.2		0.2			0.2
Change in product inventory	5.4		(20.3	)		(26.9	)
Royalties and statutory contributions	1.6		1.3			1.5
Overhead costs incurred during Peru temporary suspension (cash)	-		-			7.3
Depreciation and amortization⁴	63.8		45.4			50.0
Cost of sales⁵	214.3		157.8			135.1

¹Per pound of copper produced.

²By-product credits are computed as revenue per financial statements, including amortization of deferred revenue and pricing and volume adjustments.

³Gold and silver by-product credits do not include variable consideration adjustments with respect to stream arrangements.

⁴Depreciation is based on concentrate sold.

⁵ As per the consolidated interim financial statements.

Peru

Nine months ended

Sep. 30, 2026

Sep. 30, 2025

Supplementary cash cost information

$ millions

$/lb ¹

$ millions

$/lb ¹

By-product credits²:

Gold³

69.6

0.52

83.6

0.63

Silver³

51.0

0.38

36.3

0.27

Molybdenum

67.6

0.51

57.6

0.44

Total by-product credits

188.2

1.41

177.5

1.34

Reconciliation to IFRS:

Cash cost, net of by-product credits

204.1

171.4

By-product credits

188.2

177.5

Treatment and refining charges

7.4

(10.0

)

Inventory adjustments

0.2

Share-based compensation expenses

0.9

0.5

Change in product inventory

(7.3

)

(9.1

)

Royalties and statutory contributions

4.8

3.6

Overhead costs incurred during Peru temporary suspension (cash)

7.3

Depreciation and amortization⁴

170.6

174.2

Cost of sales⁵

568.7

515.6

¹Per pound of copper produced.

²By-product credits are computed as revenue per financial statements, including amortization of deferred revenue and pricing and volume adjustments.

³Gold and silver by-product credits do not include variable consideration adjustments with respect to stream arrangements.

⁴Depreciation is based on concentrate sold.

⁵ As per the consolidated interim financial statements.

British Columbia

Three months ended

Nine months ended

(in thousands)

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Sep. 30, 2026

Sep. 30, 2025

Net pounds of copper produced¹

14,480

14,231

11,572

39,339

42,062

¹Contained copper in concentrate.

British Columbia	Three months ended
	Sep. 30, 2026				Jun. 30, 2026				Sep. 30, 2025
Cash cost per pound of copper produced	$ millions		$/lb		$ millions		$/lb		$ millions		$/lb
Mining	37.3		2.57		31.3		2.20		19.6		1.69
Milling	31.1		2.15		27.2		1.91		29.1		2.52
G&A	7.5		0.52		7.9		0.56		7.1		0.61
Onsite costs	75.9		5.24		66.4		4.67		55.8		4.82
Treatment & refining	(5.4	)	(0.37	)	(0.6	)	(0.04	)	1.0		0.09
Freight & other	3.3		0.22		3.5		0.24		3.0		0.26
Cash cost, before by-product credits	73.8		5.09		69.3		4.87		59.8		5.17
By-product credits	(29.0	)	(2.00	)	(23.5	)	(1.65	)	(22.7	)	(1.96	)
Cash cost, net of by-product credits	44.8		3.09		45.8		3.22		37.1		3.21

British Columbia	Nine months ended
	Sep. 30, 2026				Sep. 30, 2025
Cash cost per pound of copper produced	$ millions		$/lb		$ millions		$/lb
Mining	84.8		2.16		65.7		1.56
Milling	89.8		2.28		72.3		1.72
G&A	23.8		0.60		19.5		0.46
Onsite costs	198.4		5.04		157.5		3.74
Treatment & refining	(3.9	)	(0.10	)	6.7		0.16
Freight & other	9.6		0.24		9.7		0.23
Cash cost, before by-product credits	204.1		5.18		173.9		4.13
By-product credits	(87.9	)	(2.23	)	(63.2	)	(1.50	)
Cash cost, net of by-product credits	116.2		2.95		110.7		2.63

British Columbia	Three months ended
	Sep. 30, 2026			Jun. 30, 2026			Sep. 30, 2025
Supplementary cash cost information	$ millions		$/lb ¹	$ millions		$/lb ¹	$ millions		$/lb ¹
By-product credits²:
Gold	25.7		1.77	20.7		1.45	20.4		1.76
Silver	3.3		0.23	2.8		0.20	2.3		0.20
Total by-product credits	29.0		2.00	23.5		1.65	22.7		1.96
Reconciliation to IFRS:
Cash cost, net of by-product credits	44.8			45.8			37.1
By-product credits	29.0			23.5			22.7
Treatment and refining charges	5.4			0.6			(1.0	)
Inventory adjustments	-			-			-
Change in product inventory	(12.9	)		(2.6	)		4.2
Share-based compensation expense	0.3			0.6			0.5
Royalties	5.7			2.3			0.5
Depreciation and amortization³	17.5			22.2			16.4
Cost of sales⁴	89.8			92.4			80.4

¹Per pound of copper produced.

²By-product credits are computed as revenue per financial statements, including amortization of deferred revenue and pricing and volume adjustments.

³Depreciation is based on concentrate sold.

⁴ As per consolidated interim financial statements.

British Columbia

Nine months ended

Sep. 30, 2026

Sep. 30, 2025

Supplementary cash cost information

$ millions

$/lb ¹

$ millions

$/lb ¹

By-product credits²:

Gold

77.0

1.96

56.3

1.34

Silver

10.9

0.27

6.9

0.16

Total by-product credits

87.9

2.23

63.2

1.50

Reconciliation to IFRS:

Cash cost, net of by-product credits

116.2

110.7

By-product credits

87.9

63.2

Treatment and refining charges

3.9

(6.7

)

Inventory adjustments

2.2

Change in product inventory

(4.2

)

7.0

Share-based compensation expense

1.5

1.0

Royalties

11.2

2.5

Depreciation and amortization³

58.2

49.2

Cost of sales⁴

274.7

229.1

¹Per pound of copper produced.

²By-product credits are computed as revenue per financial statements, including amortization of deferred revenue and pricing and volume adjustments.

³Depreciation is based on concentrate sold.

⁴ As per consolidated interim financial statements.

Consolidated	Three months ended
	Sep. 30, 2026				Jun. 30, 2026				Sep. 30, 2025
All-in sustaining cash cost per pound of copper produced	$ millions		$/lb		$ millions		$/lb		$ millions	$/lb
Cash cost, net of by-product credits	(12.9	)	(0.19	)	(24.7	)	(0.40	)	22.2	0.42
Cash sustaining capital expenditures	112.6		1.69		107.9		1.73		87.5	1.64
Royalties and statutory contributions	7.3		0.11		3.6		0.06		2.0	0.03
Sustaining cash cost, net of by-product credits	107.0		1.61		86.8		1.39		111.7	2.09
Corporate selling and administrative expenses, share-based compensation & regional costs	37.4		0.56		23.5		0.38		35.1	0.66
Accretion and amortization of decommissioning and community agreements¹	5.0		0.08		3.6		0.06		3.9	0.07
All-in sustaining cash cost, net of by-product credits	149.4		2.25		113.9		1.83		150.7	2.82
Reconciliation to property, plant and equipment additions:
Property, plant and equipment additions	246.1				160.0				97.6
Capitalized stripping net additions	35.1				49.8				43.2
Total accrued capital additions	281.2				209.8				140.8
Less other non-sustaining capital costs²	188.2				129.7				69.6
Total sustaining capital costs	93.0				80.1				71.2
Capitalized lease & equipment financing cash payments - operating sites	14.5				15.2				14.3
LOM Community agreement cash payments	1.7				10.1				-
Accretion and amortization of decommissioning and restoration obligations ³	3.4				2.5				2.0
Cash sustaining capital expenditures	112.6				107.9				87.5

¹ Includes accretion of decommissioning liability relating to non-producing sites, and accretion and amortization of community agreements capitalized to Other assets.

²Other non-sustaining capital costs include Copper World capitalized costs, Cactus Project 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.

³Includes amortization of decommissioning and restoration PP&E assets and accretion of decommissioning and restoration liabilities related to producing sites.

Consolidated

Nine months ended

Sep. 30, 2026

Sep. 30, 2025

All-in sustaining cash cost per pound of copper produced

$ millions

$/lb

$ millions

$/lb

Cash cost, net of by-product credits

(148.2

)

(0.78

)

(10.5

)

(0.06

)

Cash sustaining capital expenditures

325.7

1.71

274.0

1.46

Royalties and statutory contributions

16.0

0.08

6.1

0.04

Sustaining cash cost, net of by-product credits

193.5

1.01

269.6

1.44

Corporate selling and administrative expenses, share-based compensation & regional costs

102.6

0.54

74.5

0.39

Accretion and amortization of decommissioning and restoration obligations and community agreements¹

15.1

0.08

9.1

0.05

All-in sustaining cash cost, net of by-product credits

311.2

1.63

353.2

1.88

Reconciliation to property, plant and equipment additions:

Property, plant and equipment additions

515.6

259.4

Capitalized stripping net additions

157.9

138.3

Total accrued capital additions

673.5

397.7

Less other non-sustaining capital costs²

413.4

175.4

Total sustaining capital costs

260.1

222.3

Sustaining capitalized lease & equipment financing cash payments - operating sites

44.8

40.5

LOM Community agreement cash payments

12.4

4.9

Accretion and amortization of decommissioning and restoration obligations ³

8.4

6.3

Cash sustaining capital expenditures

325.7

274.0

¹ Includes accretion of decommissioning liability relating to non-producing sites, and accretion and amortization of community agreements capitalized to Other assets.

²Other non-sustaining capital costs include Copper World 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.

³Includes amortization of decommissioning and restoration PP&E assets and accretion of decommissioning and restoration liabilities related to producing sites.

Peru	Three months ended
	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025
Sustaining cash cost per pound of copper produced	$ millions	$/lb	$ millions	$/lb	$ millions	$/lb
Cash cost, net of by-product credits	101.3	2.23	71.0	1.66	52.2	1.30
Cash sustaining capital expenditures	43.6	0.96	43.8	1.02	30.5	0.77
Royalties and statutory contributions	1.6	0.04	1.3	0.03	1.5	0.04
Sustaining cash cost per pound of copper produced	146.5	3.23	116.1	2.71	84.2	2.11

Peru

Nine months ended

Sep. 30, 2026

Sep. 30, 2025

Sustaining cash cost per pound of copper produced

$ millions

$/lb

$ millions

$/lb

Cash cost, net of by-product credits

204.1

1.53

171.4

1.29

Cash sustaining capital expenditures

118.1

0.88

120.9

0.91

Royalties and statutory contributions

4.8

0.04

3.6

0.03

Sustaining cash cost per pound of copper produced

327.0

2.45

295.9

2.23

British Columbia	Three months ended
	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025
Sustaining cash cost per pound of copper produced	$ millions	$/lb	$ millions	$/lb	$ millions	$/lb
Cash cost, net of by-product credits	44.8	3.09	45.8	3.22	37.1	3.21
Cash sustaining capital expenditures	40.7	2.81	40.6	2.85	48.4	4.18
Royalties and statutory contributions	5.7	0.40	2.3	0.16	0.5	0.04
Sustaining cash cost per pound of copper produced	91.2	6.30	88.7	6.23	86.0	7.43

British Columbia

Nine months ended

Sep. 30, 2026

Sep. 30, 2025

Sustaining cash cost per pound of copper produced

$ millions

$/lb

$ millions

$/lb

Cash cost, net of by-product credits

116.2

2.95

110.7

2.63

Cash sustaining capital expenditures

135.5

3.44

115.8

2.75

Royalties and statutory contributions

11.2

0.29

2.5

0.06

Sustaining cash cost per pound of copper produced

262.9

6.68

229.0

5.44

Gold Cash Cost and Gold Sustaining Cash Cost

Cash cost per ounce of gold produced ("gold cash cost") is a non-GAAP measure that management uses as a key performance indicator to assess the performance of Hudbay's Manitoba operations. This alternative cash cost calculation designates gold as the primary metal of production as it represents a substantial component of revenues for Hudbay's Manitoba business unit and should therefore be less volatile over time than Manitoba cash cost per pound of copper. The calculation is presented in three manners:

- Gold cash cost, before by-product credits - This measure is gross of by-product revenues and is a function of the efforts and costs incurred to mine and process all ore mined. However, the measure divides this aggregate cost over only ounces of gold produced, the assumed primary metal of production. This measure is generally less volatile from period to period, as it is not affected by changes in the price received for by-product metals.

- Gold cash cost, net of by-product credits - In order to calculate the net cost to produce and sell gold, the net of by-product credits measure subtracts the revenues realized from the sale of the metals other than gold. The by-product revenues from copper, zinc, and silver are significant and are integral to the economics of Hudbay's Manitoba operation. The economics that support its decision to produce and sell gold would be different if Hudbay did not receive revenues from the other significant metals being extracted and processed. This measure provides management and investors with an indication of the minimum gold price consistent with positive operating margins, assuming realized by-product metal prices are consistent with those prevailing during the reporting period. It also serves as an important operating statistic that management and investors utilize to measure Hudbay's operating performance at its Manitoba operation versus that of its competitors. However, it is important to understand that if by-product metal prices decline alongside gold prices, the gold cash cost net of by-product credits would increase, requiring a higher gold price than that reported to maintain positive cash flows and operating margins.

- Gold sustaining cash cost, net of by-product credits - This measure is an extension of gold cash cost that includes cash sustaining capital expenditures, capitalized exploration, net smelter returns royalties, as well as accretion and amortization for expected decommissioning activities for producing assets. It does not include corporate selling and administrative expenses. It provides a more fulsome measurement of the cost of sustaining production than gold cash cost, which is focused on operating costs only.

The tables below present a detailed build-up of gold cash cost and gold sustaining cash cost, net of by-product credits, for the Manitoba business unit, and reconciliations between gold cash cost, net of by-product credits, to the most comparable IFRS measures of cost of sales for the three months ended September 30, and June 30, 2026 and September 30, 2025 and nine months ended September 30, 2026 and 2025. Gold cash cost, net of by-product credits, may not calculate exactly based on amounts presented in the tables below due to rounding.

Manitoba

Three months ended

Nine months ended

(in thousands)

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Sep. 30, 2026

Sep. 30, 2025

Net ounces of gold produced¹

57,261

40,344

22,441

145,348

126,030

¹ Contained gold in concentrate and doré.

Manitoba	Three months ended
	Sep. 30, 2026				Jun. 30, 2026				Sep. 30, 2025
Cash cost per ounce of gold produced	$ millions		$/oz¹		$ millions		$/oz¹		$ millions		$/oz¹
Mining	51.5		899		43.5		1,078		15.8		704
Milling	18.2		318		16.3		404		5.9		263
G&A	21.8		381		18.9		469		5.4		241
Onsite costs	91.5		1,598		78.7		1,951		27.1		1,208
Treatment & refining	1.3		23		1.0		25		0.9		40
Freight & other	6.3		109		5.3		131		2.5		111
Cash cost, before by-product credits	99.1		1,730		85.0		2,107		30.5		1,359
By-product credits	(76.0	)	(1,327	)	(53.7	)	(1,331	)	(22.0	)	(980	)
Gold cash cost, net of by-product credits	23.1		403		31.3		776		8.5		379

Manitoba

Nine months ended

Sep. 30, 2026

Sep. 30, 2025

Cash cost per ounce of gold produced

$ millions

$/oz¹

$ millions

$/oz¹

Mining

137.3

944

87.6

695

Milling

50.8

349

33.7

267

G&A

60.7

418

34.0

270

Onsite costs

248.8

1,711

155.3

1,232

Treatment & refining

4.9

5.9

Freight & other

17.3

119

13.3

106

Cash cost, before by-product credits

271.0

1,864

174.5

1,385

By-product credits

(197.1

)

(1,356

)

(112.6

)

(894

)

Gold cash cost, net of by-product credits

73.9

508

61.9

491

Manitoba	Three months ended
Supplementary cash cost information	Sep. 30, 2026			Jun. 30, 2026			Sep. 30, 2025
Supplementary cash cost information	$ millions		$/oz ¹	$ millions		$/oz¹	$ millions		$/oz ¹
By-product credits²:
Copper	39.4		688	32.8		813	7.4		330
Zinc	19.3		337	9.2		228	9.9		441
Silver	16.9		295	11.6		288	4.7		209
Other	0.4		7	0.1		2	-		-
Total by-product credits	76.0		1,327	53.7		1,331	22.0		980
Reconciliation to IFRS:
Cash cost, net of by-product credits	23.1			31.3			8.5
By-product credits	76.0			53.7			22.0
Treatment and refining charges	(1.3	)		(1.0	)		(0.9	)
Share-based compensation expenses	0.5			0.4			1.0
Inventory adjustments	-			0.9			-
Change in product inventory	(3.4	)		5.6			3.1
Overhead costs incurred during Manitoba temporary suspension (cash)	-			-			16.0
Depreciation and amortization³	20.7			21.2			16.3
Cost of sales⁴	115.6			112.1			66.0

¹ Per ounce of gold produced.

²By-product credits are computed as revenue per financial statements, amortization of deferred revenue and pricing and volume adjustments.

³Depreciation is based on concentrate sold.

⁴ As per consolidated interim financial statements.

Manitoba

Nine months ended

Supplementary cash cost information

Sep. 30, 2026

Sep. 30, 2025

$ millions

$/oz ¹

$ millions

$/oz ¹

By-product credits²:

Copper

106.6

734

61.5

488

Zinc

40.9

281

31.0

246

Silver

44.2

304

20.3

161

Other

5.4

(0.2

)

Total by-product credits

197.1

1,356

112.6

894

Reconciliation to IFRS:

Cash cost, net of by-product credits

73.9

61.9

By-product credits

197.1

112.6

Treatment and refining charges

(4.9

)

(5.9

)

Share-based compensation expenses

2.7

1.8

Inventory adjustments

0.9

1.0

Change in product inventory

(3.7

)

5.9

Overhead costs incurred during Manitoba temporary suspension (cash)

19.2

Depreciation and amortization³

61.9

63.8

Cost of sales⁴

327.9

260.3

¹ Per ounce of gold produced.

²By-product credits are computed as revenue per financial statements, amortization of deferred revenue and pricing and volume adjustments.

³Depreciation is based on concentrate sold.

⁴ As per consolidated interim financial statements.

Manitoba

Three months ended

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Sustaining cash cost per ounce of gold produced

$ millions

$/oz

$ millions

$/oz

$ millions

$/oz

Gold cash cost, net of by-product credits

23.1

403

31.3

776

8.5

379

Cash sustaining capital expenditures

28.3

495

23.5

582

8.6

383

Sustaining cash cost per ounce of gold produced

51.4

898

54.8

1,358

17.1

762

Manitoba

Nine months ended

Sep. 30, 2026

Sep. 30, 2025

Sustaining cash cost per ounce of gold produced

$ millions

$/oz

$ millions

$/oz

Gold cash cost, net of by-product credits

73.9

508

61.9

491

Cash sustaining capital expenditures

72.1

496

37.3

296

Sustaining cash cost per ounce of gold produced

146.0

1,004

99.2

787

Combined Unit Cost

Combined unit cost ("unit cost") and zinc plant unit cost is a non-GAAP measure that management uses as a key performance indicator to assess the performance of Hudbay's mining and milling operations. Combined unit cost is calculated by dividing the cost of sales by mill throughput. This measure is utilized by management and investors to assess Hudbay's cost structure and margins and compare it to similar information provided by other companies in the industry. Unlike cash cost, this measure is not impacted by variability in by-product commodity prices since there are no by-product deductions; costs associated with profit-sharing and similar costs are excluded because of their correlation to external metal prices. In addition, the unit costs are reported in the functional currency of the operation which minimizes the impact of foreign currency fluctuations. In all, the unit cost measures provide an alternative perspective on operating cost performance with minimal impact from external market prices.

The tables below present a detailed combined unit cost for the Peru and Manitoba business units, and reconciliations between these measures to the most comparable IFRS measures of cost of sales for the three months ended September 30, 2026 and 2025 and June 30, 2026 and nine months ended September 30, 2026 and 2025.

Peru	Three months ended						Nine months ended
(in millions except ore tonnes milled and unit cost per tonne)	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025		Sep. 30, 2026		Sep. 30, 2025
Combined unit cost per tonne processed	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025		Sep. 30, 2026		Sep. 30, 2025
Mining	49.5		42.2		34.8		126.2		93.9
Milling	45.3		50.9		40.8		139.6		143.0
G&A¹	32.9		25.4		19.3		91.5		65.0
Less: Other G&A²	(13.4	)	(8.4	)	(3.8	)	(38.1	)	(18.1	)
Unit cost	114.3		110.1		91.1		319.2		283.8
Tonnes ore milled (in thousands)	8,402		7,828		6,992		24,394		22,665
Combined unit cost per tonne	13.60		14.06		13.03		13.09		12.52
Reconciliation to IFRS:
Unit cost	114.3		110.1		91.1		319.2		283.8
Freight & other	15.6		12.7		9.4		42.4		37.0
Other G&A	13.4		8.4		3.8		38.1		18.1
Share-based compensation expenses	0.2		0.2		0.2		0.9		0.5
Inventory adjustments	-		-		(1.3	)	-		0.2
Change in product inventory	5.4		(20.3	)	(26.9	)	(7.3	)	(9.1	)
Royalties and statutory contributions	1.6		1.3		1.5		4.8		3.6
Overhead costs incurred during Peru temporary suspension (cash)	-		-		7.3		-		7.3
Depreciation and amortization	63.8		45.4		50.0		170.6		174.2
Cost of sales³	214.3		157.8		135.1		568.7		515.6

¹ G&A as per cash cost reconciliation above.

² Other G&A primarily includes profit sharing costs.

⁴ As per consolidated interim financial statements.

Manitoba	Three months ended						Nine months ended
(in millions except tonnes ore milled and unit cost per tonne)	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025		Sep. 30, 2026		Sep. 30, 2025
Combined unit cost per tonne processed	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025		Sep. 30, 2026		Sep. 30, 2025
Mining	51.5		43.5		15.8		137.3		87.6
Milling	18.2		16.3		5.9		50.8		33.7
G&A¹	21.8		18.9		5.4		60.7		34.0
Less: Other G&A related to profit sharing costs	(13.1	)	(9.6	)	(1.8	)	(34.6	)	(16.2	)
Unit cost	78.4		69.1		25.3		214.2		139.1
USD/CAD implicit exchange rate	1.40		1.38		1.39		1.39		1.41
Unit cost - C$	109.7		95.6		35.3		296.8		195.7
Tonnes ore milled (in thousands)	389		319		137		1,068		848
Combined unit cost per tonne - C$	282		300		258		278		231
Reconciliation to IFRS:
Unit cost	78.4		69.1		25.3		214.2		139.1
Freight & other	6.3		5.3		2.5		17.3		13.3
Other G&A related to profit sharing	13.1		9.6		1.8		34.6		16.2
Share-based compensation expenses	0.5		0.4		1.0		2.7		1.8
Inventory adjustments	-		0.9		-		0.9		1.0
Change in product inventory	(3.4	)	5.6		3.1		(3.7	)	5.9
Overhead costs incurred during Manitoba temporary suspension (cash)	-		-		16.0		-		19.2
Depreciation and amortization	20.7		21.2		16.3		61.9		63.8
Cost of sales²	115.6		112.1		66.0		327.9		260.3

¹ G&A as per cash cost reconciliation above.

² As per consolidated interim financial statements.

British Columbia	Three months ended					Nine months ended
(in millions except tonnes ore milled and unit cost per tonne)	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025	Sep. 30, 2026		Sep. 30, 2025
Combined unit cost per tonne processed	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025	Sep. 30, 2026		Sep. 30, 2025
Mining	37.3		31.3		19.6	84.8		65.7
Milling	31.1		27.2		29.1	89.8		72.3
G&A¹	7.5		7.9		7.1	23.8		19.5
Unit cost	75.9		66.4		55.8	198.4		157.5
USD/CAD implicit exchange rate	1.38		1.39		1.38	1.38		1.39
Unit cost - C$	104.7		92.3		77.3	274.7		219.5
Tonnes ore milled (in thousands)	3,060		3,616		3,087	9,755		8,748
Combined unit cost per tonne - C$	34.20		25.52		25.02	28.16		25.09
Reconciliation to IFRS:
Unit cost	75.9		66.4		55.8	198.4		157.5
Freight & other	3.3		3.5		3.0	9.6		9.7
Change in product inventory	(12.9	)	(2.6	)	4.2	(4.2	)	7.0
Shared based compensation	0.3		0.6		0.5	1.5		1.0
Inventory adjustments	-		-		-	-		2.2
Royalties	5.7		2.3		0.5	11.2		2.5
Depreciation and amortization	17.5		22.2		16.4	58.2		49.2
Cost of sales²	89.8		92.4		80.4	274.7		229.1

¹ G&A as per cash cost reconciliation above.

² As per consolidated interim financial statements.

ACCOUNTING CHANGES AND CRITICAL ESTIMATES

New standards and interpretations

For information on new standards and interpretations adopted and new standards issued but not yet effective, refer to note 4 of Hudbay's September 30, 2026 consolidated interim financial statements.

Estimates and judgements

The preparation of the consolidated interim financial statements in accordance with IFRS requires Hudbay to make judgements, estimates and assumptions that affect the application of accounting policies, reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated interim financial statements, and reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates.

Hudbay reviews these estimates and underlying assumptions on an ongoing basis based on its experience and other factors, including expectations of future events that Hudbay believes to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Certain accounting estimates and judgements have been identified as being "critical" to the presentation of Hudbay's financial condition and results of operations because they require Hudbay to make subjective and/or complex judgments about matters that are inherently uncertain; or there is a reasonable likelihood that materially different amounts could be reported under different conditions or using different assumptions and estimates.

For more information on judgements and estimates, refer to note 2 of Hudbay's September 30, 2026 consolidated interim financial statements.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate internal control over financial reporting ("ICFR"). ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated interim financial statements for external purposes in accordance with IFRS.

Hudbay did not make any changes to ICFR during the three months ended September 30, 2026 that materially affected or are reasonably likely to materially affect Hudbay's ICFR.

NOTES TO READER

Forward-Looking Information

This MD&A contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this MD&A, 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 MD&A 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, Hudbay's ability to advance and complete the multi-year optimization of the Copper Mountain mine in British Columbia, the implementation of stripping strategies and the expected benefits therefrom, the expected timing and benefits of British Columbia growth initiatives, including with respect to the development timelines associated with New Ingerbelle and any challenges to the New Ingerbelle permits (including the Lower Similkameen Indian Band's application for judicial review), expectations regarding the timing, construction, funding structure, benefits of, and costs associated with, advancing and developing the Copper World project, as well as targets for first production expectations regarding the potential impact of recent policy decisions from the United States government, the ability to receive expected payments pursuant to the definitive agreement with Wheaton Precious Metals Corp. ("Wheaton") in respect of the enhanced precious metals stream at Copper World, the expected benefits of Manitoba growth initiatives, including the advancement of the projects contemplated by the updated Snow Lake mine plan, the use of the exploration drift at the 1901 deposit and the potential utilization of excess capacity at the Stall mill, the ability for Hudbay to complete mill throughput enhancements at its operating business units in Peru, British Columbia and Manitoba, Hudbay's future deleveraging strategies and Hudbay's ability to deleverage and repay debt as needed, expectations regarding the timing and costs associated with Cactus pre-feasibility work and Mason pre-feasibility work, and related strategies regarding growth and development opportunities in the United States, the enhancement of stakeholder engagement and advancement of PFS and related test work at Cactus and Mason, expectations regarding Hudbay's cash balance and liquidity and related cash management strategies, expectations regarding Hudbay's capital planning strategies, including but not limited to Hudbay's enhanced capital allocation framework, the payment and timing of future dividends, expectations regarding sustaining capital projects, including but not limited to the Stall Hot Tails Leaching project, the construction of a cyanide recycling initiative at the New Britannia mill and construction of a dam lift at the Anderson Tailings Impoundment Area, 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, 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 exploration and 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 ability to successfully obtain proceeds from insurance claims, the ability to achieve Hudbay's climate change goals and initiatives, 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 and the resolution of grievances raised by local communities and their residents;

- the ability to receive expected payments pursuant to the definitive agreement with Wheaton in respect of the enhanced precious metals stream at Copper World;

- no interruptions to Hudbay's plans for advancing the Copper World project, in accordance with the DFS, and including with respect to any challenges to the Copper World permits or land rights;

- no interruptions to Hudbay's plans for advancing New Ingerbelle, including with respect to any challenges to the New Ingerbelle permits or land rights;

- Hudbay's ability to successfully advance and complete the optimization of the Copper Mountain operations, and develop and maintain good relations with key stakeholders;

- the ability to execute on its exploration plans and to advance related drill plans;

- 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 forest fires that have affected and may continue to 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 complex political and social environment in Peru and potential disruptions to operations arising from community protests and grievances, 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 associated with the development of new projects, risks associated with acquisitions, investments and other strategic transactions, risks related to the Copper World project and the recent DFS, risks related to ongoing litigation in respect of certain land rights, risks from community opposition, project delivery risks, joint venture risks 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 (including any unanticipated significant interruptions to operations due to adverse effects from extreme weather events), 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, cybersecurity risks and risks related to the reliability and security of Hudbay's information technology and operational technology systems, including risks arising from cyber-attacks ransomware, phishing and other malware, risks associated with the use of artificial intelligence technologies, as well as the risks discussed under the heading "Risk Factors" in Hudbay's most recent Annual Information Form and under the heading "Financial Risk Management" in Hudbay's most recent Annual Management's Discussion and Analysis, each of 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 MD&A 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 MD&A 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.

Qualified Persons and NI 43-101

The technical and scientific information in this MD&A related to the Constancia mine and Copper World project has been approved by Olivier Tavchandjian, P. Geo, Senior Vice President, Exploration and Technical Services. Mr. Tavchandjian is a qualified person pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The technical and scientific information in this MD&A related to the Copper Mountain mine and Snow Lake, Manitoba operations has been approved by Marc-Andre Brulotte, P. Geo, Executive Director, Global Mineral Resource Evaluation. Mr. Brulotte is a qualified person 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 Hudbay's material properties, which are available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov.

SUMMARY OF HISTORICAL RESULTS

The following unaudited tables set out a summary of quarterly and annual results for the Company.

			Q3 2026			Q2 2026			Q1 2026			2025⁴			Q4 2025			Q3 2025			Q2 2025			Q1 2025			2024 ⁴		Q4 2024		Q3 2024
Consolidated Financial Condition ($ millions)
Cash and cash equivalents and short-term investment		$	788.7		$	890.9		$	1,003.8		$	568.9		$	568.9		$	611.1		$	625.5		$	582.6		$	581.8	$	581.8	$	483.3
Total long-term debt			838.7			860.2			1,009.4			1,008.6			1,008.6			1,047.0			1,059.6			1,108.7			1,107.5		1,107.5		1,108.9
Net debt¹			(0.1	)		(80.5	)		5.6			439.7			439.7			435.9			434.1			526.1			525.7		525.7		625.6
Free cash flow			201.9			101.8			102.3			380.0			225.0			(16.1	)		86.7			84.4			350.5		146.9		86.3
Consolidated Financial Performance ($ millions except per share amounts)
Revenue		$	765.9		$	631.3		$	757.3		$	2,211.0		$	732.9		$	346.8		$	536.4		$	594.9		$	2,021.2	$	584.9	$	485.8
Cost of sales			419.7			362.3			389.3			1,467.8			462.8			281.5			359.9			363.6			1,467.4		400.5		346.0
Earnings (loss) before tax			290.2			240.4			339.0			912.0			257.1			330.5			153.1			171.3			251.6		103.7		79.7
Net earnings (loss)			151.0			138.1			191.5			564.3			128.0			222.4			114.7			99.2			67.8		19.3		50.3
Net earnings (loss) attributable to owners¹			149.5			137.4			190.4			568.5			128.0			222.4			117.7			100.4			76.7		21.2		49.7
Basic and diluted earnings (loss) per share attributable to owners		$	0.34		$	0.34		$	0.48		$	1.44		$	0.32		$	0.56		$	0.30		$	0.25		$	0.20	$	0.05	$	0.13
Adjusted earnings (loss) per share attributable to owners ¹		$	0.34		$	0.28		$	0.40		$	0.67		$	0.22		$	0.03		$	0.19		$	0.24		$	0.48	$	0.18	$	0.13
Operating cash flow before change in non-cash working capital			313.9			210.1			208.7			764.3			336.9			70.3			193.9			163.5			691.1		231.5		188.3
Adjusted EBITDA ¹			413.4			321.2			421.9			1,060.9			385.9			142.6			245.2			287.2			823.3		257.3		206.0
Consolidated Operational Performance
Contained metal in concentrate and doré produced ²
Copper	tonnes		30,152			28,267			27,929			118,188			33,069			24,205			29,956			30,958			137,943		43,262		31,354
Gold	ounces		69,513			51,234			61,700			267,934			84,298			53,581			56,271			73,784			332,240		94,161		89,073
Silver	ounces		897,587			845,161			787,449			3,468,143			1,002,985			730,394			814,989			919,775			3,983,851		1,311,658		985,569
Zinc	tonnes		3,691			4,760			4,565			17,646			5,703			548			5,130			6,265			33,339		8,385		8,069
Molybdenum	tonnes		301			277			380			1,282			325			185			375			397			1,323		195		362
Payable metal in concentrate and doré sold
Copper	tonnes		30,223			23,780			29,544			114,534			34,132			18,280			30,354			31,768			125,094		37,927		27,760
Gold	ounces		61,033			56,266			66,562			260,261			84,424			38,279			62,466			75,092			335,342		92,734		73,232
Silver	ounces		839,702			674,490			923,051			3,190,552			871,006			418,418			894,160			1,006,968			3,549,816		1,150,518		663,413
Zinc ³	tonnes		4,887			2,635			3,897			15,152			3,972			3,452			2,871			4,857			25,120		5,261		8,607
Molybdenum	tonnes		270			298			375			1,334			190			269			427			448			1,287		182		343
Cash cost ¹	$/lb	$	(0.19	)	$	(0.40	)	$	(1.80	)	$	(0.22	)	$	(0.63	)	$	0.42		$	(0.02	)	$	(0.45	)	$	0.46	$	0.45	$	0.18
Sustaining cash cost ¹	$/lb	$	1.61		$	1.39		$	0.00		$	1.30		$	0.94		$	2.09		$	1.65		$	0.72		$	1.62	$	1.37	$	1.71
All-in sustaining cash cost ¹	$/lb	$	2.25		$	1.83		$	0.78		$	1.74		$	1.43		$	2.82		$	2.03		$	0.97		$	1.88	$	1.53	$	1.95

¹This is considered a non-GAAP financial performance measures with no standardized definition under IFRS. For further information, please see discussion under the "Non-GAAP Financial Performance Measures" section of this MD&A. The above table sets forth selected non-GAAP financial performance measures for each of the Company's nine most recently completed quarters and three most recently completed years; detailed reconciliations for non-comparable prior periods can be found in Hudbay's MD&A for these prior periods in the "Non-GAAP Financial Performance Measures" section of these documents.

² Metal reported in concentrate is prior to deductions associated with smelter contract terms and includes other secondary products.

³ Includes refined zinc metal sold.

⁴Annual consolidated results may not calculate based on amounts presented in this table due to rounding.

			Q3 2026		Q2 2026		Q1 2026		2025⁴		Q4 2025		Q3 2025		Q2 2025		Q1 2025		2024 ⁴		Q4 2024		Q3 2024
Peru Operations
Constancia ore mined¹	tonnes		12,667,888		10,962,399		10,701,375		21,539,089		5,610,915		564,579		6,735,316		8,628,279		15,046,190		4,186,058		3,022,931
Copper	%		0.27		0.28		0.29		0.31		0.31		0.25		0.34		0.28		0.34		0.40		0.36
Gold	g/tonne		0.03		0.04		0.03		0.03		0.03		0.02		0.03		0.03		0.04		0.04		0.04
Silver	g/tonne		3.40		3.68		3.11		3.18		3.27		1.92		3.26		3.14		3.08		3.88		3.20
Molybdenum	%		0.01		0.01		0.01		0.02		0.01		0.01		0.02		0.02		0.01		0.02		0.02
Pampacancha ore mined¹	tonnes		-		-		-		9,563,442		4,152,000		4,260,081		762,172		389,189		9,317,499		4,037,264		1,777,092
Copper	%		-		-		-		0.40		0.43		0.38		0.26		0.44		0.55		0.63		0.48
Gold	g/tonne		-		-		-		0.29		0.27		0.31		0.24		0.26		0.32		0.38		0.27
Silver	g/tonne		-		-		-		4.78		4.84		4.87		4.59		3.68		5.61		6.43		6.23
Molybdenum	%		-		-		-		0.01		0.01		0.01		0.01		0.01		0.01		0.00		0.01
Strip Ratio			0.66		0.88		0.83		1.04		0.57		1.38		1.47		1.02		1.78		1.22		2.62
Ore milled	tonnes		8,402,491		7,827,509		8,163,847		30,292,668		7,627,853		6,991,744		7,559,047		8,114,024		31,933,624		7,999,453		8,137,248
Copper	%		0.30		0.30		0.31		0.33		0.39		0.31		0.34		0.30		0.36		0.48		0.32
Gold	g/tonne		0.04		0.04		0.06		0.11		0.18		0.16		0.05		0.05		0.14		0.20		0.11
Silver	g/tonne		3.44		3.75		3.09		3.72		4.19		3.94		3.58		3.22		3.84		5.28		3.70
Molybdenum	%		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01
Copper recovery	%		82.7		82.0		81.5		84.3		84.5		83.2		84.5		84.6		85.0		87.8		82.6
Gold recovery	%		45.7		48.8		59.9		69.2		74.7		72.1		56.0		56.5		70.7		73.3		68.1
Silver recovery	%		62.1		59.9		65.4		66.7		71.1		65.2		63.5		66.0		68.8		71.4		67.0
Molybdenum recovery	%		34.2		39.9		36.0		37.4		38.8		33.9		38.7		35.7		41.7		37.1		39.0
Contained metal in concentrate
Copper	tonnes		20,572		19,446		20,573		85,155		25,038		18,114		21,710		20,293		99,001		33,988		21,220
Gold	ounces		5,267		5,282		8,770		74,480		32,865		26,380		7,366		7,869		98,226		38,079		20,331
Silver	ounces		577,231		564,505		531,199		2,415,134		731,017		577,446		551,979		554,692		2,708,262		969,502		648,209
Molybdenum	tonnes		301		277		380		1,282		325		185		375		397		1,323		195		362
Payable metal sold
Copper	tonnes		21,382		15,755		21,056		84,438		28,361		11,769		21,418		22,890		88,138		28,775		18,803
Gold	ounces		3,238		4,042		15,162		71,755		37,874		9,798		9,721		14,362		103,364		37,459		9,795
Silver	ounces		518,411		418,640		676,119		2,239,832		650,384		258,215		616,578		714,654		2,343,820		824,613		365,198
Molybdenum	tonnes		270		298		375		1,334		190		269		427		448		1,287		182		343
Unit cost ^2,3	$/tonne	$	13.60	$	14.06	$	11.61	$	13.02	$	14.51	$	13.03	$	13.59	$	11.09	$	12.91	$	15.25	$	12.78
Peru cash cost³	$/lb	$	2.23	$	1.66	$	0.70	$	1.08	$	0.57	$	1.30	$	1.45	$	1.11	$	1.18	$	1.00	$	1.80
Peru sustaining cash cost³	$/lb	$	3.23	$	2.71	$	1.43	$	2.02	$	1.53	$	2.11	$	2.63	$	1.92	$	1.86	$	1.48	$	2.78

¹ Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not fully reconcile to ore milled.

²Reflects combined mine, mill and G&A costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.

³This is considered a non-GAAP financial performance measures with no standardized definition under IFRS. For further information, please see discussion under the "Non-GAAP Financial Performance Measures" section of this MD&A. The above table sets forth selected non-GAAP financial performance measures for each of the Company's nine most recently completed quarters and three most recently completed years; detailed reconciliations for non-comparable prior periods can be found in Hudbay's MD&A for these prior periods in the "Non-GAAP Financial Performance Measures" section of these documents.

⁴Annual consolidated results may not calculate based on amounts presented in this table due to rounding.

		Q3 2026	Q2 2026	Q1 2026	2025¹	Q4 2025	Q3 2025	Q2 2025	Q1 2025	2024 ¹	Q4 2024	Q3 2024
Manitoba Operations
Total ore mined²	tonnes	383,628	321,719	349,980	1,180,121	353,819	139,006	303,062	384,234	1,626,935	422,454	411,295
Gold	g/tonne	5.12	4.41	4.72	5.35	5.51	5.42	4.97	5.46	4.68	4.61	5.45
Copper	%	0.86	0.84	0.80	0.79	0.82	0.67	0.61	0.95	0.85	0.95	0.91
Zinc	%	1.66	2.25	2.10	2.41	2.55	1.93	2.46	2.42	2.84	2.95	2.73
Silver	g/tonne	29.15	28.33	26.22	30.43	29.52	31.57	29.94	31.23	27.14	31.91	30.45
Stall Concentrator:
Ore milled	tonnes	182,222	148,037	178,981	572,704	169,274	43,940	144,204	215,286	893,510	222,004	222,621
Gold	g/tonne	3.21	3.30	3.26	3.45	3.24	3.10	3.19	3.86	3.42	3.36	4.23
Copper	%	0.64	0.66	0.53	0.67	0.69	0.56	0.56	0.76	0.71	0.73	0.89
Zinc	%	2.47	3.81	3.22	3.90	4.32	3.61	4.20	3.44	4.33	4.62	4.12
Silver	g/tonne	27.83	27.46	29.68	28.31	24.97	31.04	29.55	29.53	26.54	29.90	30.20
Gold recovery	%	73.6	70.8	73.5	70.1	71.3	72.6	67.9	70.1	68.6	69.6	70.5
Copper recovery	%	89.1	83.7	85.9	86.7	86.5	83.4	84.7	88.3	87.4	84.4	88.3
Zinc recovery	%	82.1	84.5	79.3	79.0	78.0	34.6	84.8	84.7	86.2	81.7	88.1
Silver recovery	%	58.3	55.4	57.5	55.4	55.6	50.3	51.9	58.7	56.8	55.1	57.8
New Britannia Concentrator:
Ore milled	tonnes	207,041	170,477	181,403	624,631	179,808	92,765	162,934	189,124	715,198	185,592	191,298
Gold	g/tonne	6.77	5.31	6.06	6.87	6.68	6.88	6.48	7.37	6.29	5.99	6.77
Copper	%	1.04	1.00	1.04	0.95	1.08	0.76	0.65	1.18	1.04	1.17	0.93
Zinc	%	0.94	0.97	1.09	1.09	1.30	1.00	1.01	1.00	0.99	1.08	1.12
Silver	g/tonne	29.94	29.73	22.75	31.75	31.17	32.18	30.29	33.35	27.78	33.97	30.24
Gold recovery - concentrate and doré	%	91.9	90.5	90.4	89.8	88.6	91.8	89.4	90.3	89.7	90.2	90.0
Copper recovery	%	91.5	90.9	90.8	89.2	88.6	90.0	87.4	90.3	93.6	91.3	92.8
Silver recovery - concentrate and doré	%	82.7	84.5	82.2	79.0	77.1	78.5	78.0	81.6	80.9	79.6	79.9
Combined Concentrator:
Ore milled	tonnes	389,263	318,514	360,384	1,197,335	349,082	136,705	307,138	404,410	-	-	-
Gold	g/tonne	5.10	4.38	4.67	5.23	5.01	5.66	4.94	5.50	-	-	-
Copper	%	0.85	0.84	0.79	0.82	0.89	0.70	0.61	0.96	-	-	-
Zinc	%	1.65	2.29	2.14	2.44	2.77	1.84	2.51	2.30	-	-	-
Silver	g/tonne	28.95	28.67	26.19	30.10	28.16	31.82	29.95	31.32	-	-	-
Gold recovery	%	86.5	83.6	84.5	83.6	83.2	88.4	82.9	82.8	-	-	-
Copper recovery	%	90.7	88.4	89.2	88.2	87.7	88.3	86.3	89.5	-	-	-
Zinc recovery	%	82.1	84.5	79.3	79.0	78.0	34.6	84.8	84.7	-	-	-
Silver recovery	%	71.7	71.5	68.3	68.4	67.8	69.7	65.9	70.1	-	-	-

¹Annual consolidated results may not calculate based on amounts presented in this table due to rounding.

²Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled. Total ore mined includes tonnes from Lalor and 1901.

			Q3 2026		Q2 2026		Q1 2026		2025 ⁴		Q4 2025		Q3 2025		Q2 2025		Q1 2025		2024 ⁴		Q4 2024		Q3 2024
Manitoba Operations (continued)
Total Manitoba contained metal in concentrate and doré produced⁵
Gold	ounces		57,261		40,344		47,743		173,453		47,423		22,441		43,235		60,354		214,225		51,438		62,468
Copper	tonnes		3,012		2,366		2,535		9,249		3,326		842		1,612		3,469		12,536		3,347		3,398
Zinc	tonnes		3,691		4,760		4,565		17,646		5,703		548		5,130		6,265		33,339		8,385		8,069
Silver	ounces		268,346		209,478		213,208		800,198		214,493		102,132		197,970		285,603		995,090		283,223		281,397
Total Manitoba payable metal sold in concentrate and doré
Gold	ounces		51,777		47,066		45,274		169,041		43,226		23,118		46,932		55,765		212,243		50,239		57,238
Copper	tonnes		2,793		2,466		2,658		7,651		2,024		769		2,133		2,725		11,602		3,321		2,931
Zinc¹	tonnes		4,887		2,635		3,897		15,152		3,972		3,452		2,871		4,857		25,120		5,261		8,607
Silver	ounces		268,074		209,383		193,472		729,314		175,324		112,142		209,594		232,255		956,460		282,158		244,974
Combined unit cost ^2,3	C$/tonne	$	282	$	300	$	254	$	236	$	248	$	258	$	241	$	214	$	226	$	233	$	211
Gold cash cost ³	$/oz	$	403	$	776	$	408	$	549	$	705	$	379	$	710	$	376	$	606	$	607	$	372
Sustaining gold cash cost ³	$/oz	$	898	$	1,358	$	833	$	875	$	1,110	$	762	$	1,025	$	626	$	868	$	908	$	553

¹ Includes refined zinc metal sold.

² Reflects combined mine, mill and G&A costs per tonne of milled ore.

³ This is considered a non-GAAP financial performance measures with no standardized definition under IFRS. For further information, please see discussion under the "Non-GAAP Financial Performance Measures" section of this MD&A. The above table sets forth selected non-GAAP financial performance measures for each of the Company's nine most recently completed quarters and three most recently completed years; detailed reconciliations for non-comparable prior periods can be found in Hudbay's MD&A for these prior periods in the "Non-GAAP Financial Performance Measures" section of these documents.

⁴Annual consolidated results may not calculate based on amounts presented in this table due to rounding.

⁵Metal reported in concentrate is prior to deductions associated with smelter terms and includes other secondary products.

			Q3 2026		Q2 2026		Q1 2026		2025⁵		Q4 2025		Q3 2025		Q2 2025		Q1 2025		2024 ⁵		Q4 2024		Q3 2024
British Columbia Operations ⁴
Ore mined¹	tonnes		5,117,530		3,276,090		2,916,152		9,368,918		2,395,166		1,815,689		2,509,969		2,648,094		11,360,125		2,374,044		3,098,863
Strip Ratio			2.97		6.22		7.06		7.46		7.18		8.84		7.50		6.73		5.98		7.36		6.05
Ore milled	tonnes		3,060,204		3,616,083		3,078,342		11,016,842		2,268,405		3,087,443		2,900,008		2,760,986		12,656,679		2,880,927		3,363,176
Copper	%		0.27		0.23		0.20		0.27		0.26		0.22		0.28		0.33		0.25		0.26		0.24
Gold	g/tonne		0.12		0.08		0.08		0.09		0.09		0.08		0.09		0.10		0.08		0.09		0.09
Silver	g/tonne		0.76		0.88		0.67		1.02		1.10		0.78		0.97		1.28		0.96		0.92		0.73
Copper recovery	%		79.5		77.3		78.9		78.6		78.4		76.6		81.0		78.3		82.4		79.5		84.1
Gold recovery	%		61.0		62.9		64.7		63.6		63.3		59.2		68.2		63.4		60.5		55.8		67.3
Silver recovery	%		69.5		69.7		64.6		69.7		71.4		65.5		71.8		69.8		71.8		69.0		71.2
Contained metal in concentrate produced
Copper	tonnes		6,568		6,455		4,821		23,784		4,705		5,249		6,634		7,196		26,406		5,927		6,736
Gold	ounces		6,985		5,608		5,187		20,001		4,010		4,760		5,670		5,561		19,789		4,644		6,274
Silver	ounces		52,010		71,178		43,042		252,811		57,475		50,816		65,040		79,480		280,499		58,933		55,963
Payable metal sold
Copper	tonnes		6,048		5,559		5,830		22,445		3,747		5,742		6,803		6,153		25,354		5,831		6,026
Gold	ounces		6,018		5,158		6,126		19,465		3,324		5,363		5,813		4,965		19,735		5,036		6,199
Silver	ounces		53,217		46,467		53,460		221,406		45,298		48,061		67,988		60,059		249,536		43,747		53,241
Combined unit cost ^2,3	C$/tonne	$	34.20	$	25.52	$	25.23	$	28.12	$	39.80	$	25.02	$	24.51	$	25.98	$	20.39	$	23.22	$	15.58
Cash cost³	$/lb	$	3.09	$	3.22	$	2.41	$	3.06	$	4.82	$	3.21	$	2.39	$	2.44	$	2.74	$	3.00	$	1.81
Sustaining cash cost ³	$/lb	$	6.30	$	6.23	$	7.81	$	6.12	$	8.87	$	7.43	$	5.18	$	4.24	$	5.29	$	5.76	$	5.06

¹ Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not fully reconcile to ore milled.

²Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.

⁴ Copper Mountain mine results are stated at 100%. On April 30, 2025 Hudbay completed the acquisition of the remaining 25% interest in the Copper Mountain mine and now owns 100%.

⁵ Annual consolidated results may not calculate based on amounts presented in this table due to rounding.

	TSX, NYSE - HBM 2026 No. 29

25 York Street, Suite 800 Toronto, Ontario Canada M5J 2V5 tel 416 362-8181 fax 416 362-7844 hudbay.com	News Release

Hudbay Delivers Record Third Quarter 2026 Results, Further Improves Cost Guidance and Advances Copper Growth Pipeline

Toronto, Ontario, November 12, 2026 - Hudbay Minerals Inc. ("Hudbay" or the "Company") (TSX, NYSE: HBM) released its third quarter 2026 financial results today. All amounts are in U.S. dollars, unless otherwise noted.

"Hudbay delivered record performance this quarter, with revenue of $766 million achieving a new record and adjusted EBITDAⁱ of $413 million resulting in record trailing twelve-month adjusted EBITDA of $1.5 billion, and we are well on our way to delivering the 12^th consecutive year of achieving annual consolidated copper production guidance and the 6^th consecutive year of achieving annual consolidated gold production guidance," said Peter Kukielski, Chief Executive Officer. "The strength of our diversified operating platform and the dedication of our people helped to achieve a new record for mill throughput at Constancia, significant increases in mine productivity at Lalor, record mill throughput at New Britannia and record gold recoveries at Stall during the third quarter. Our three-year operational turnaround at Copper Mountain has delivered the first quarter of positive free cash flowⁱ since our acquisition. We are extremely well positioned to continue to prudently reinvest in several high-return growth opportunities across the business to further enhance our exposure to copper and gold. Following the quarter, Hudbay and Mitsubishi achieved a significant milestone with the final investment decision at Copper World, one of the best copper growth projects in the Americas, offering some of the highest copper grades, lowest cash costs and favourable capital intensity. We continue to solidify our position as a premier Americas-focused copper producer with a pipeline of long-life, low-cost assets in tier-one jurisdictions."

"Our diversified operations in Canada and Peru continued to achieve strong copper and gold production, with operating efficiencies, which have more than offset external cost pressures and allowed us to improve our 2026 full-year consolidated cash cost guidance for a second time this year and also improve our 2026 full-year sustaining cash cost guidance," said Eugene Lei, President and Chief Financial Officer. "We generated over $200 million in free cash flow during this quarter and more than $400 million year-to-date, even after investing over $325 million in sustaining capital across our operations. Our strong free cash flow generation and balance sheet strength position us well to fund our share of the Copper World project and make generational investments in our operating mines to double our copper production per share. This is consistent with our disciplined capital allocation framework, which focuses on generating the highest risk-adjusted returns while advancing our industry-leading growth pipeline."

Delivered Record Third Quarter Results; Production Guidance Reaffirmed and Cost Guidance Further Improved

• Achieved record quarterly revenue of $765.9 million, net earnings attributable to ownersⁱ of $149.5 million, and quarterly adjusted EBITDAⁱ of $413.4 million, driven by steady operating performance, attractive operating margins and strong exposure to copper and gold across Hudbay's diversified operating portfolio.

• Continued to demonstrate industry-leading margins with consolidated cash costⁱ and sustaining cash costⁱ, net of by-product credits, of $(0.19) and $1.61 per pound of copper, respectively, in the third quarter of 2026.

• Reaffirmed full year 2026 consolidated production guidance including 110,000 to 138,000 tonnes of copper and 217,000 to 272,000 ounces of gold.

	TSX, NYSE - HBM 2026 No. 29

• Further improved full year 2026 consolidated cash costⁱ guidance range to $(0.55) to $(0.35) per pound of copper, an additional improvement from the previously updated guidance range of $(0.45) to $(0.25) per pound of copper, as year-to-date results are trending well below the low end of the cash cost range.

• Improved full year 2026 consolidated sustaining cash cost guidance range to $1.40 to $1.80 per pound of copper from the original guidance range of $1.70 to $2.10 per pound of copper as a result of strong exposure to gold by-product credits and continued strong operating cost control. Full year 2026 consolidated sustaining capital expenditures expected to be $35 million lower than guidance levels due to lower capitalized stripping in Peru and British Columbia and capital deferrals and efficiencies.

• Peru operations demonstrated steady operating performance with production of 20,572 tonnes of copper and 5,267 ounces of gold in the third quarter of 2026. Peru cash costⁱ, net of by-product credits, of $2.23 per pound exceeded the upper end of the 2026 annual guidance range of $1.70 to $2.10 per pound primarily due to lower by-product credits, partially offset by better treatment and refining charges.

Achieved record Constancia mill throughput of approximately 91,000 tonnes per day in the third quarter, on track to achieve 34 million tonnes per annum in 2027.

• Manitoba operations demonstrated strong operating performance and executed on the commitment to deliver a stronger second half of 2026 with production of 57,261 ounces of gold, 3,012 tonnes of copper, 3,691 tonnes of zinc and 268,346 ounces of silver in the third quarter of 2026. Manitoba cash costⁱ of $403 per ounce of gold outperformed the low end of the 2026 annual guidance range of $500 to $800 per ounce as a result of higher by-product prices.

Continued to exceed Snow Lake mill performance expectations with record New Britannia mill throughput of 2,250 tonnes per day and record Stall gold recoveries of 73.6% in the third quarter.

• British Columbia operations showed improving operating performance with production of 6,568 tonnes of copper, 6,985 ounces of gold and 52,010 ounces of silver in the third quarter of 2026, in line with quarterly cadence expectations. British Columbia cash costⁱ of $3.09 per pound of copper was higher than the annual cost guidance range of $1.50 to $2.50 per pound primarily due to elevated fuel prices, higher fuel consumption from increased material moved and timing of equipment maintenance. While British Columbia cash cost is expected to improve in the fourth quarter with higher expected production volumes, full year cash cost is expected to track towards the high end of the annual guidance range.

Achieved Copper Mountain mill throughput of approximately 43,500 tonnes per day in September, reflecting successive monthly increases after the completion of mill maintenance at the primary SAG mill in July, and on track to achieve the targeted 50,000 tonnes per day by the end of the year. The third quarter represented the first quarter of positive free cash flowⁱ at Copper Mountain since its acquisition by Hudbay, demonstrating the benefits from continued operating efficiencies, recent mill improvement initiatives and ongoing execution of the accelerated stripping program.

• Cash and cash equivalents were $788.7 million and total liquidityⁱⁱ was $964.3 million at the end of the third quarter of 2026, before giving effect to a $250 million increase in size to Hudbay's credit facilities in November 2026. Cash and cash equivalents exclude $50.1 million in U.S. municipal bond proceeds that are classified as restricted cash and reflect $45.0 million in net purchases of investments and $22.0 million of debt repayments during the third quarter of 2026.

Record Trailing Twelve-month EBITDA and Free Cash Flow Generation; Strong Balance Sheet and Significant Financial Flexibility

• Delivered free cash flowⁱ generation of $201.9 million during the third quarter of 2026, reflecting an increase of approximately $100 million compared to the second quarter through higher production and continued strong operating margins. Generated more than $400 million of free cash flow year-to-date in 2026 despite investing over $325 million of sustaining capital in the business over this period. This has resulted in record trailing twelve-month free cash flow generation of $631.0 million.

	TSX, NYSE - HBM 2026 No. 29

• Achieved quarterly adjusted EBITDAⁱ of $413.4 million in the third quarter of 2026, resulting in record trailing twelve-month adjusted EBITDAⁱ of $1,542.4 million.

• Recorded net debtⁱ of negative $0.1 million as at September 30, 2026, positioning the Company well to reinvest in high-return growth capital projects across the business, including the recently announced final investment decision ("FID") to proceed with the development and construction of Copper World.

• Net debt to adjusted EBITDA ratioⁱ was 0.0x in the third quarter of 2026, significantly improved from 0.4x in the fourth quarter of 2025 as a result of the initial proceeds received from Mitsubishi Corporation ("Mitsubishi") on closing of the Copper World joint venture transaction in January 2026, along with strong cash flows from operations.

Advancing Brownfield and Greenfield Investments to Drive Strong Returns and Significant Production Growth

The base case for Copper World contemplates a 15-year mine life utilizing mineral reserves and requires only state and local permits ("Base Case") and expands the concentrator in year five to enable a 43% increase in average annual copper production to 120,000 tonnes in years six to 10 compared to 84,000 tonnes over the first five years. The Base Case generates an after-tax net present value (8%) of $1.2 billion and internal rate of return of 17% at a long-term copper price of $5.00 per pound, which increases to $2.3 billion and 22%, respectively, at a copper price of $6.00 per pound.
The extension case for Copper World contemplates a 37-year mine life utilizing only measured and indicated mineral resources and expands mining activities onto federal lands in year 10, subject to obtaining federal permits ("Extension Case"), maintaining annual copper production of 117,000 tonnes from years 11 to 20. The Extension Case generates an after-tax net present value (8%) of $2.5 billion and internal rate of return of 19% at a long-term copper price of $5.00 per pound, increasing to $4.0 billion and 24%, respectively, at a copper price of $6.00 per pound.
As a result of Hudbay's capital allocation strategy and prudent Copper World funding plan, the levered internal rate of return to Hudbay increases to 32% at $5.00 per pound of copper long-term in the Base Case and to 44% at $6.00 per pound of copper in the Extension Case.

Updated five-year averageⁱⁱⁱ annual gold production of 185,000 ounces reflects continued strong mill throughput rates at New Britannia and higher gold recoveries at Stall, representing a 37% increase in total gold production from an additional 250,000 ounces produced over the same five-year period in the Snow Lake 2021 technical report.
Snow Lake updated mineral reserve estimates increased contained gold to 2.0 million ounces, and the updated mine plan represents a conservative view based on Hudbay's historical high resource-to-reserve conversion rate of 90%^iv and ongoing exploration activities. There remains 1.5 million ounces of gold contained in inferred mineral resource estimates.

	TSX, NYSE - HBM 2026 No. 29

• Continuing to derisk the long-term Mason project in Nevada through PFS and other site activities. The Mason PFS is expected to be completed in the second half of 2027.

Positive Exploration Results Across the Business

Summary of Third Quarter Results

Cash generated from operating activities was $214.9 million during the third quarter of 2026, reflecting a decrease of $82.1 million compared to the second quarter of 2026, primarily driven by unfavourable changes in non-cash working capital. Operating cash flow before changes in non-cash working capital was $313.9 million during the third quarter of 2026, an increase of $103.8 million compared to the second quarter of 2026, primarily reflecting higher realized copper prices and increased sales volumes.

Adjusted EBITDAⁱ was $413.4 million in the third quarter of 2026, a 29% increase compared to $321.2 million in the second quarter of 2026, primarily due to higher realized copper prices and higher copper, gold and silver sales volumes.

	TSX, NYSE - HBM 2026 No. 29

Adjusted net earnings attributable to ownersⁱ and adjusted net earnings per share attributable to ownersⁱ in the third quarter of 2026 were $149.5 million and $0.34 per share, respectively, after adjusting for various non-cash items on a pre-tax basis including $13.4 million in evaluation expenses, a $5.4 million mark-to-market revaluation net loss on various financial instruments, share-based compensation and offsetting mark-to-market gains on investments, a non-cash $11.8 million gain in re-evaluation adjustment on environmental provisions, among other items. This compares to adjusted net earnings attributable to ownersⁱ and net earnings per share attributable to ownersⁱ of $113.5 million and $0.28 per share, respectively, in the second quarter of 2026. The increase is a result of higher realized metal prices for copper and zinc and the aforementioned higher sales volumes.

Consolidated cash costⁱ, net of by-product credits, in the third quarter of 2026 was $(0.19) per pound of copper, compared to $(0.40) per pound in the second quarter of 2026. The increase from the second quarter of 2026 was in line with the expected cost cadence and is the result of lower by-product credits and slightly higher mine operating costs.

Consolidated sustaining cash costⁱ, net of by-product credits, in the third quarter of 2026 was $1.61 per pound of copper, compared to $1.39 per pound in the second quarter of 2026. This increase was primarily due to the same factors impacting consolidated cash cost noted above. Consolidated all-in sustaining cash costⁱ, net of by-product credits, in the third quarter of 2026 was $2.25 per pound of copper, higher than the second quarter of 2026 due to the same reasons noted above.

As at September 30, 2026, total liquidityⁱⁱ was $964.3 million, including $788.7 million in cash and cash equivalents, which excludes $50.1 million in U.S. municipal bond proceeds that are classified as restricted cash, and undrawn availability of $175.6 million under Hudbay's revolving credit facilities (prior to giving effect to the $250 million increase in size to the credit facilities in November 2026). Cash and cash equivalents reflect $45.0 million in net purchases of investments and $22.0 million in debt repayments during the third quarter of 2026. Net debtⁱ at the end of the third quarter was negative $0.1 million. Hudbay expects that its current liquidity, together with cash flows from operations, will be sufficient to meet the Company's liquidity needs for the next 12 months. With the successful execution of its disciplined capital allocation strategy, attracting Mitsubishi as a long-term strategic joint venture partner and a prudent project funding plan, Hudbay's Copper World capital contributions are expected to be approximately $500 million, representing less than 25% of the initial growth capital, with capital contributions not expected to be required until 2028.

Consolidated Financial Condition (in $ millions, except net debt to adjusted EBITDA ratio)	Sep. 30, 2026	Jun. 30, 2026	Dec. 31, 2025
Cash and cash equivalents¹	788.7	890.9	568.9
Total long-term debt	838.7	860.2	1,008.6
Net debt^2,3	(0.1)	(80.5)	439.7
Working capital⁴	845.1	751.8	(65.6)
Total assets	8,360.9	8,062.0	6,223.3
Equity attributable to owners of the Company	4,949.6	4,797.2	3,231.0
Net debt to adjusted EBITDA²	0.0	(0.1)	0.4

¹ As at September 30, 2026 cash and cash equivalents include $290.1 million in cash held by Copper World LLC (June 30, 2026 - $334.5 million and December 31, 2025 - $nil). These funds are contractually restricted solely for the advancement of the Copper World project and are not available to the general Hudbay group and excludes $50.1 million of restricted cash related to unspent proceeds from senior unsecured municipal bond financing.

² Net debt and net debt 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.

³ Hudbay calculates net debt as total long-term debt less cash and cash equivalents and restricted cash related to unspent proceeds of its senior unsecured municipal bond financing.

⁴ Working capital is determined as total current assets less total current liabilities as defined under IFRS and disclosed on the consolidated interim financial statements.

	TSX, NYSE - HBM 2026 No. 29

Consolidated Financial Performance

Three Months Ended

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Revenue

$ millions

765.9

631.3

346.8

Cost of sales

$ millions

419.7

362.3

281.5

Earnings before tax

$ millions

290.2

240.4

330.5

Net earnings

$ millions

151.0

138.1

222.4

Net earnings attributable to owners

$ millions

149.5

137.4

222.4

Basic and diluted attributable earnings per share

$/share

0.34

0.34

0.56

Adjusted earnings attributable per share¹

$/share

0.34

0.28

0.03

Operating cash flow before change in non-cash working capital

$ millions

313.9

210.1

70.3

Adjusted EBITDA¹

$ millions

413.4

321.2

142.6

Free cash flow¹

$ millions

201.9

101.8

(16.1)

¹ Adjusted earnings attributable per share, adjusted EBITDA and free cash flow are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see discussion under the "Non-GAAP Financial Performance Measures" section of this news release.

Consolidated Production and Cost Performance

Three Months Ended

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Contained metal in concentrate and doré produced¹

Copper

tonnes

30,152

28,267

24,205

Gold

ounces

69,513

51,234

53,581

Silver

ounces

897,587

845,161

730,394

Zinc

tonnes

3,691

4,760

548

Molybdenum

tonnes

301

277

185

Payable metal sold

Copper

tonnes

30,223

23,780

18,280

Gold²

ounces

61,033

56,266

38,279

Silver²

ounces

839,702

674,490

418,418

Zinc

tonnes

4,887

2,635

3,452

Molybdenum

tonnes

270

298

269

Consolidated cash cost per pound of copper produced³

Cash cost

$/lb

(0.19)

(0.40)

0.42

Sustaining cash cost

$/lb

1.61

1.39

2.09

All-in sustaining cash cost

$/lb

2.25

1.80

2.82

¹ Metal reported in concentrate is prior to deductions associated with smelter contract terms and includes other secondary products.

² Includes total payable gold and silver in concentrate and in doré sold and other secondary products.

³ Cash cost, sustaining cash cost and all-in 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.

	TSX, NYSE - HBM 2026 No. 29

Peru Operations Review

Peru Operations		Three Months Ended
		Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Constancia ore mined¹	tonnes	12,667,888	10,962,399	564,579
Copper	%	0.27	0.28	0.25
Gold	g/tonne	0.03	0.04	0.02
Silver	g/tonne	3.40	3.68	1.92
Molybdenum	%	0.01	0.01	0.01
Pampacancha ore mined^1,2	tonnes	-	-	4,260,081
Copper	%	-	-	0.38
Gold	g/tonne	-	-	0.31
Silver	g/tonne	-	-	4.87
Molybdenum	%	-	-	0.01
Total ore mined	tonnes	12,667,888	10,962,399	4,824,660
Strip ratio³		0.66	0.88	1.38
Ore milled	tonnes	8,402,491	7,827,509	6,991,744
Copper	%	0.30	0.30	0.31
Gold	g/tonne	0.04	0.04	0.16
Silver	g/tonne	3.44	3.75	3.94
Molybdenum	%	0.01	0.01	0.01
Copper recovery	%	82.7	82.0	83.2
Gold recovery	%	45.7	48.8	72.1
Silver recovery	%	62.1	59.9	65.2
Molybdenum recovery	%	34.2	39.9	33.9
Contained metal in concentrate
Copper	tonnes	20,572	19,446	18,114
Gold	ounces	5,267	5,282	26,380
Silver	ounces	577,231	564,505	577,446
Molybdenum	tonnes	301	277	185
Payable metal sold
Copper	tonnes	21,382	15,755	11,769
Gold	ounces	3,238	4,042	9,798
Silver	ounces	518,411	418,640	258,215
Molybdenum	tonnes	270	298	269
Combined unit operating cost^4,5	$/tonne	13.60	14.06	13.03
Cash cost⁵	$/lb	2.23	1.66	1.30
Sustaining cash cost⁵	$/lb	3.23	2.71	2.11

¹ Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled.

² Pampacancha has been depleted as of December 31, 2025.

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 costs, cash cost and sustaining cash cost per pound of copper produced, net of by-product credits, are non-GAAP financial performance measure 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.

	TSX, NYSE - HBM 2026 No. 29

During the third quarter of 2026, the Peru operations produced 20,572 tonnes of copper, 5,267 ounces of gold, 577,231 ounces of silver and 301 tonnes of molybdenum. Production of copper, silver and molybdenum was slightly higher compared to the second quarter of 2026, reflecting higher mill throughput as a result of efficiency improvements and the impacts of the planned semi-annual plant maintenance shutdown during the second quarter of 2026. Production of gold was comparable to the second quarter of 2026. Hudbay is on track to achieve its 2026 production guidance for all metals in Peru with gold production expected to exceed the top end of the guidance range.

Total material moved during the third quarter of 2026 was 25.0 million tonnes, reflecting operational efficiencies from mining exclusively in one pit, including shorter hauling distances and improved productivity resulting from haul route optimizations. These optimizations resulted in achieving a new monthly record for total volume of material moved in July 2026. Total ore mined during the quarter increased by 16% to 12.7 million tonnes compared to the second quarter of 2026, supported by active mining across three exposed ore phases and positive reconciliation yielding higher tonnage than predicted by the geological model.

Combined mine, mill and G&A unit operating costⁱ in the third quarter of 2026 was $13.60 per tonne, representing a 3% decrease compared to the second quarter of 2026, primarily due to higher ore tonnage milled and reduced mill maintenance costs following the completion of the planned semi-annual plant maintenance shutdown in the second quarter. This efficiency gain was partially offset by higher social spending during the quarter.

Cash costⁱ, net of by-product credits, in the third quarter of 2026 was $2.23 per pound of copper, an increase of 34% compared to the second quarter of 2026, primarily due to lower silver and gold by-product credits and higher profit sharing, combined with the continued higher fuel prices with higher fuel consumption from increased material moved. This was partially offset by lower plant maintenance costs following the completion of the semi-annual mill shutdown in the second quarter of 2026.

Year-to-date cash cost continues to outperform the low-end of the 2026 guidance range as a result of strong operating cost performance and higher by-product prices, despite external cost pressures. Hudbay is well positioned to achieve the full year 2026 cash cost guidance range in Peru.

Sustaining cash costⁱ, net of by-product credits, in the third quarter of 2026 was $3.23 per pound of copper, an increase of 19% compared to the second quarter of 2026, primarily due to the same reasons affecting cash costs above, as well as higher hauling costs related to additional material sent to the tailings management facility.

	TSX, NYSE - HBM 2026 No. 29

Manitoba Operations Review

Manitoba Operations		Three Months Ended
Manitoba Operations		Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Lalor
Ore mined¹	tonnes	383,628	321,719	139,006
Gold	g/tonne	5.12	4.41	5.42
Copper	%	0.86	0.84	0.67
Zinc	%	1.66	2.25	1.93
Silver	g/tonne	29.15	28.33	31.57
New Britannia
Ore milled	tonnes	207,041	170,477	92,765
Gold	g/tonne	6.77	5.31	6.88
Copper	%	1.04	1.00	0.76
Zinc	%	0.94	0.97	1.00
Silver	g/tonne	29.94	29.73	32.18
Gold recovery²	%	91.9	90.5	91.8
Copper recovery	%	91.5	90.9	90.0
Silver recovery²	%	82.7	84.5	78.5
Stall Concentrator
Ore milled	tonnes	182,222	148,037	43,940
Gold	g/tonne	3.21	3.30	3.10
Copper	%	0.64	0.66	0.56
Zinc	%	2.47	3.81	3.61
Silver	g/tonne	27.83	27.46	31.04
Gold recovery	%	73.6	70.8	72.6
Copper recovery	%	89.1	83.7	83.4
Zinc recovery	%	82.1	84.5	34.6
Silver recovery	%	58.3	55.4	50.3
Total Concentrators Combined
Ore milled	tonnes	389,263	318,514	136,705
Gold	g/tonne	5.10	4.38	5.66
Copper	%	0.85	0.84	0.70
Zinc	%	1.65	2.29	1.84
Silver	g/tonne	28.95	28.67	31.82
Gold recovery	%	86.5	83.6	88.4
Copper recovery	%	90.7	88.4	88.3
Zinc recovery	%	82.1	84.5	34.6
Silver recovery	%	71.7	71.5	69.7
Total contained metal in concentrate and doré³
Gold	ounces	57,261	40,344	22,441
Copper	tonnes	3,012	2,366	842
Zinc	tonnes	3,691	4,760	548
Silver	ounces	268,346	209,478	102,132
Total payable metal sold⁴
Gold	ounces	51,777	47,066	23,118
Copper	tonnes	2,793	2,466	769
Zinc	tonnes	4,887	2,635	3,452
Silver	ounces	268,074	209,383	112,142

	TSX, NYSE - HBM 2026 No. 29

Manitoba Operations

Three Months Ended

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Combined unit operating cost^5,6,7

C$/tonne

282

300

258

Gold cash cost^7,8

$/oz

403

776

379

Gold sustaining cash cost⁷

$/oz

898

1,358

762

¹ Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled.

² Gold and silver recovery includes total recovery from concentrate and doré.

³ Total metal reported in concentrate is prior to deductions associated with smelter terms and includes other secondary products. Doré includes sludge, slag and carbon fines.

⁴ lncludes other secondary products.

⁵ Reflects combined mine, mill and G&A costs per tonne of ore milled.

⁶ Excludes overhead costs of $16.0 million or C$163 per tonne of ore milled incurred during temporary suspension during the three months ended September 30, 2025.

⁷ Combined unit cost, cash cost, 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.

⁸ Excludes overhead costs of $16.0 million or $713 per ounce of gold produced incurred during temporary suspension during the three months ended September 30, 2025.

The Manitoba operations produced 57,261 ounces of gold, 3,012 tonnes of copper, 3,691 tonnes of zinc and 268,346 ounces of silver in the third quarter of 2026. Production of gold, copper and silver increased compared to the second quarter of 2026 as a result of higher mill throughput and improved gold feed grades, while zinc production decreased due to lower zinc feed grades. Hudbay is on track to achieve its 2026 production guidance for all metals in Manitoba.

The Lalor mine hoisted an average of approximately 4,200 tonnes of ore per day during the third quarter of 2026, strategically prioritizing gold feed. Development activity at the 1901 deposit focused on exploration and infill drilling, orebody access, and critical infrastructure, with late 2027 remaining the targeted timeline for full production. Total ore mined in Manitoba in the third quarter of 2026 increased compared to the second quarter of 2026, driven by improved equipment utilization and haulage efficiencies. The gold grades increased by 16% compared to the second quarter of 2026 as production prioritized gold-focused mining areas.

The New Britannia mill achieved a new quarterly mill throughput record, averaging approximately 2,250 tonnes per day in the third quarter of 2026, aligning with gold ore output from Lalor and achieving new record gold recoveries of approximately 92% during the quarter.

The Stall mill demonstrated higher quarterly throughput compared to the third quarter of 2025 and the second quarter of 2026, matching Lalor base metal production, while achieving new record gold recoveries of 74% as a result of recovery focused initiatives.

Combined mine, mill and G&A unit operating costsⁱ were C$282 per tonne in the third quarter of 2026. Combined unit costs improved from the second quarter of 2026 as higher ore throughput offset elevated variable site expenses, including operational testing of the continuous miner unit at Lalor.

	TSX, NYSE - HBM 2026 No. 29

Cash costⁱ, net of by-product credits, was $403 per ounce of gold in the third quarter of 2026. This represents a decrease of 48% compared to the second quarter of 2026, primarily due to higher gold production and higher by-product credits driven by higher metal prices and volumes, which were partially offset by higher mining and G&A costs. Hudbay is well positioned to achieve its 2026 cash cost guidance range in Manitoba.

Sustaining cash costⁱ, net of by-product credits, was $898 per ounce of gold in the third quarter of 2026, lower than the second quarter of 2026, primarily reflecting the same factors affecting cash costs, partially offset by higher sustaining capital. As reflected in the Company's 2026 annual guidance, sustaining capital expenditures are expected to be higher than 2025, in part due to one-time investments to raise the dam at the Anderson Tailings Impoundment Area and the New Britannia mill cyanide recycling project.

Hudbay initiated early works on the Stall Hot Tails Leaching project to unlock additional gold recovery from material processed at the Stall mill through leaching at New Britannia. Hudbay has also initiated early evaluation work on processing legacy tailings and mineralized piles to utilize excess mill capacity.

British Columbia Operations Review

British Columbia Operations		Three months ended
		Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Ore mined¹	tonnes	5,117,530	3,276,090	1,815,689
Strip ratio²		2.97	6.22	8.84
Ore milled	tonnes	3,060,204	3,616,083	3,087,443
Copper	%	0.27	0.23	0.22
Gold	g/tonne	0.12	0.08	0.08
Silver	g/tonne	0.76	0.88	0.78
Copper recovery	%	79.5	77.3	76.6
Gold recovery	%	61.0	62.9	59.2
Silver recovery	%	69.5	69.7	65.5
Total contained metal in concentrate
Copper	tonnes	6,568	6,455	5,249
Gold	ounces	6,985	5,608	4,760
Silver	ounces	52,010	71,178	50,816
Total payable metal sold
Copper	tonnes	6,048	5,559	5,742
Gold	ounces	6,018	5,158	5,363
Silver	ounces	53,217	46,467	48,061
Combined unit operating cost^3,4	C$/tonne	34.20	25.52	25.02
Cash cost⁴	$/lb	3.09	3.22	3.21
Sustaining cash cost⁴	$/lb	6.30	6.23	7.43

¹ Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled.

² Strip ratio is calculated as waste mined divided by ore mined.

³ Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.

⁴ 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.

The third quarter represented the first quarter of positive free cash flowⁱ at Copper Mountain since its acquisition by Hudbay, demonstrating the benefits from continued operating efficiencies, recent mill improvement initiatives and ongoing execution of the accelerated stripping program.

	TSX, NYSE - HBM 2026 No. 29

The British Columbia operations produced 6,568 tonnes of copper, 6,985 ounces of gold and 52,010 ounces of silver in the third quarter of 2026. Compared to the second quarter of 2026, copper and gold production increased as higher head grades and improved recoveries offset the impact of maintenance downtime on the primary SAG mill. Silver production decreased due to localized head grade variations. Hudbay is on track to achieve its 2026 full year production guidance for all metals in British Columbia.

Total material movement at Copper Mountain was approximately 26.9 million tonnes (approximately 292,300 tonnes per day) in the third quarter of 2026. Compared to the second quarter of 2026, total material movement decreased by 11% due to fleet availability constraints and reduced productivity in the active mining areas. Waste movement associated with the New Ingerbelle east haul road development totaled 5.6 million tonnes during the quarter.

Total ore mined at Copper Mountain in the third quarter of 2026 was 5.1 million tonnes, an increase of 56% compared to the second quarter of 2026. The increase was driven by favourable ore release timing from the north pit.

Copper Mountain achieved mill throughput of approximately 43,500 tonnes per day in September, reflecting successive monthly mill throughput increases after the completion of mill maintenance at the primary SAG mill in July, and Hudbay is on track to achieve the targeted 50,000 tonnes per day by the end of the year. The mill processed 3.1 million tonnes of ore during the third quarter of 2026, 15% lower than the second quarter of 2026, reflecting 33 days of planned maintenance downtime for the primary SAG mill feed end head replacement. Higher hourly operating throughput following the restart partially offset the planned outage.

Milled copper head grades averaged 0.27% in the third quarter of 2026, representing an increase of 17% compared to the second quarter of 2026, due to higher grade ore released from active mining faces. Copper recoveries slightly increased to approximately 80% in the third quarter, representing an improvement compared to the second quarter of 2026. Gold recoveries were lower than the second quarter of 2026, while circuit optimization efforts continue to focus on managing flotation response at coarser grind sizes.

Combined mine, mill and G&A unit operating costsⁱ in the third quarter of 2026 were C$34.20 per tonne milled, higher than the second quarter of 2026. This unit operating cost increase was driven by lower capitalized stripping, higher fuel and mobile equipment maintenance costs, and additional maintenance expenses associated with the planned primary SAG mill shutdown.

Cash costⁱ, net of by-product credits, in the third quarter of 2026 was $3.09 per pound of copper produced. Cash cost decreased by 4% compared to the second quarter of 2026, benefiting from higher copper production, lower treatment and refining charges, and strong gold and silver by-product credits, which offset higher site operating costs. Higher copper production is expected in the fourth quarter of 2026 resulting in full year cash costs expected to track toward the high end of the annual guidance range in British Columbia.

Sustaining cash costⁱ, net of by-product credits, was $6.30 per pound of copper in the third quarter of 2026, slightly higher than the second quarter of 2026 due to higher royalty costs, partially offset by lower cash costs and reduced sustaining capital expenditures.

Following the June groundbreaking, the New Ingerbelle project continued to advance infrastructure development in the third quarter of 2026, with construction of key infrastructure connecting the expansion on the west side of the Similkameen river to existing operations on the east side progressing on schedule. Key milestones achieved during the quarter included completion of the west access road and establishment of a temporary construction bridge to facilitate the installation of the permanent bridge. Hudbay also continued to advance construction of the east haul road, which was 38% complete at the end of the third quarter. The New Ingerbelle expansion is expected to support continuous operations beyond 2040 and provide access to higher grade ore at approximately one third of the strip ratio compared to recent historical mining areas.

	TSX, NYSE - HBM 2026 No. 29

Approved Copper World Project Construction; Advancing Next Major U.S. Copper Mine Towards First Production in 2029

Copper World will be one of the largest open-pit copper mines in the United States. It is anticipated to increase Hudbay's consolidated annual copper production to approximately 250,000 tonnes, doubling current production levels together with other brownfield growth projects underway. The DFS outlines annual copper production of 102,000 tonnes over the first 10 years, an 11% increase when compared to 92,000 tonnes in Hudbay's 2023 PFS. Copper World is expected to deliver average annual EBITDAⁱ of $661 million over the first 10 years in the Base Case and $735 million over the next 10 years in the Extension Case at a copper price of $5.00 per pound. Using a copper price of $6.00 per pound, Copper World's annual EBITDA over these periods increases to $859 million and $963 million in the Base Case and Extension Case, respectively, representing an 80% to 90% increase in Hudbay's consolidated annual EBITDA as compared to 2025.

• Base Case average annual copper production is 102,000 tonnes over the first 10 years at average cash costs^v and sustaining cash costs^v of $1.65 and $2.22 per pound of copper, respectively.

• Concentrator expansion enables a 43% increase in average annual copper production to 120,000 tonnes in years six to 10 compared to 84,000 tonnes over the first five years.

• Base Case annual average EBITDA is $566 million over the mine life at a long-term copper price of $5.00 per pound, increasing to $742 million at a long-term copper price of $6.00 per pound.

• Extension Case average annual copper production over the first 10 years is similar to the Base Case with 101,000 tonnes and increases to 117,000 tonnes over the period from year 11 to 20. Average cash costs^v and sustaining cash costs^v over the 10-year period from year 11 to 20 are expected to be $1.76 and $2.20 per pound of copper, respectively.

• Extension Case average annual EBITDA is $522 million over the mine life and $735 million over the period from year 11 to 20 at a long-term copper price of $5.00 per pound.

	TSX, NYSE - HBM 2026 No. 29

Copper World is one of the lowest capital intensity copper projects, maintaining an attractive capital intensity of approximately $22,600 per annual copper tonne using average production in years five to twelve, including the expansion growth capital in years three and four. With initial growth capital of $2.07 billion^vⁱ ($1.84 billion net of precious metals stream deposit), which includes approximately $200 million related to changes in project scope since the 2023 PFS, Hudbay has put in place prudent funding and a low leverage financing plan. The sources of capital include Mitsubishi's $600 million initial joint venture equity investment and Wheaton Precious Metals Corp.'s $230 million deposit for the existing precious metals stream, followed by approximately $650 million in anticipated project-level debt financing, representing less than 30% leverage. This defers Hudbay's first pro-rata equity capital contribution to 2028.

Executing Staged U.S. Growth Investment Strategy to Unlock Copper Growth Pipeline

Enhanced Gold Production Profile at the Snow Lake Operations

Hudbay released an updated Snow Lake mine plan on September 28, 2026. The updated Snow Lake mine plan reflects a 37% increase in gold production over the next five yearsⁱⁱⁱ and a 60% increase in total gold production over the life-of-mine, based on current mineral reserves, compared to the prior 2021 Snow Lake technical report. The updated Snow Lake mine plan maintains average production of 185,000 ounces of gold over the next five yearsⁱⁱⁱ reflecting several optimization initiatives including higher mill throughput at New Britannia and higher gold recoveries at the Stall mill to better utilize the combined 6,300 tonnes per day of processing capacity.

	TSX, NYSE - HBM 2026 No. 29

The increase in reserves and extension of mine life is due to resource conversion at Lalor and 1901, higher reserves at the WIM and 3 Zone satellite deposits and the first reserve estimates for the Talbot and Rail satellite deposits following the completion of infill and geotechnical drilling. Hudbay expects to continue to achieve high rates of resource to reserve conversion and further optimize the mine plan.

Manitoba Exploration Strategy to Further Optimize the Mine Plan and Discover a New Anchor Deposit

Potential to convert the 1.5 million ounces of gold in inferred resources to reserves through infill drilling.
Hudbay has historically converted approximately 90% of inferred resources to reserves at the Lalor deposit over the past five yearsⁱ^v.

Lalor and 1901 continue to show extensions of high-grade, stacked lenses, and remain open down plunge.
Mine life extensions at the current anchor will further increase cash flows and defer growth capital associated with the development of satellite deposits.

3) Discovery of a New Anchor Deposit - Meaningfully add to current production levels and significantly extend mine life through the discovery of the next major anchor deposit in the region.

The Britannia Gold Project provides the opportunity to re-develop an underexplored, past-producing deposit with the potential to become a new anchor in the Snow Lake camp.
Regional exploration on the large and highly prospective land package, including exploration for both volcanogenic massive sulphide (VMS) and orogenic gold deposits.

	TSX, NYSE - HBM 2026 No. 29

Constancia Drilling Campaign Intersects Potential High-Grade Copper-Molybdenum Feeder System

Two deep diamond drill holes successfully intersected lateral and down-dip extensions of the skarn envelopes and mineralized breccia zones below and adjacent to the Constancia pit. Drill holes CO-26-003 and CO-26-005 intersected significant widths of mineralized breccia extending beyond the limits of the current resource at grades higher than current reserve grades. A re-assessment of the localized structural and geological controls on mineralization is underway to support target definition for follow up drilling. The initial results indicate meaningful width and grade, while showing potential for orebody extensions at depth.

Highlights of the breccia drill hole intercepts are as follows (please refer to Exhibit 1 for further information):

• Hole CO-26-003 intersected 245 metres at 0.43% copper and 0.03% molybdenum, including 124 metres at 0.55% copper and 0.05% molybdenum from 478 metres.

• Hole CO-26-005 intersected 302 metres at 0.36% copper and 0.02% molybdenum from 396 metres, including 64 metres at 0.50% copper and 0.04% molybdenum from 618 metres.

New Ingerbelle Infill and Expansion Drilling Nearing Completion

Proactive Two-Year Extension and Upsize of Senior Secured Revolving Credit Facilities

Industry Recognition of Hudbay's Growth Success

	TSX, NYSE - HBM 2026 No. 29

Key Leadership Appointment

Board Appointment

Dividend Declared

A quarterly dividend of C$0.01 per share was declared on November 11, 2026. The dividend will be paid out on December 18, 2026 to shareholders of record as of close of business on December 1, 2026.

Website Links

Hudbay: www.hudbay.com

Management's Discussion and Analysis:

https://www.hudbayminerals.com/MDA1126

Financial Statements:

https://www.hudbayminerals.com/FS1126

Conference Call and Webcast

Date:	Thursday, November 12, 2026
Time:	11:00 a.m. ET
Webcast:	www.hudbay.com
Dial in:	647-846-8185 or 1-833-752-3516

	TSX, NYSE - HBM 2026 No. 29

Qualified Person and NI 43-101

The technical and scientific information in this news release related to the Constancia mine and Copper World project 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 and Snow Lake, Manitoba operations has been approved by Marc-Andre Brulotte, P. Geo., Executive Director, Global Mineral 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, which are available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov.

Without limiting the generality of the foregoing, please refer to Exhibit 1 for further information regarding the quality assurance program and quality control measures applied in connection with the Constancia exploration results described in this news release.

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, net debt to adjusted EBITDA, free cash flow, 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 provide alternate measures 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. Free cash flow is shown as it provides investors and management additional information in assessing the Company's ability to generate cash flow from current operations after investing in capital to sustain the operations. 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.

	TSX, NYSE - HBM 2026 No. 29

Adjusted Net Earnings (Loss) Reconciliation

	Three Months Ended
(in $ millions)	Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Earnings for the period	151.0	138.1	222.4
Tax expense	139.2	102.3	108.1
Earnings before tax	290.2	240.4	330.5
Adjusting items:
Mark-to-market adjustments¹	5.4	(38.2)	8.7
Foreign exchange (gain) loss	(0.7)	12.0	8.8
Re-evaluation adjustment - environmental provision	(11.8)	5.5	1.4
Manitoba cost of sales and other expense from temporary shutdown	-	-	24.2
Peru cost of sales from temporary shutdown	-	-	10.9
Consideration received from sale of non-core project	(0.9)	-	(14.9)
Copper World impairment reversal	-	-	(322.3)
Inventory adjustments	-	0.9	(1.3)
Evaluation expenses	13.4	9.2	-
Insurance recovery	-	(11.5)	-
Reduction of obligation to renounce flow-through share expenditures, net of provisions	(1.0)	(2.8)	(0.8)
Loss/write-down on disposal of PP&E	3.9	0.5	(0.3)
Adjusted earnings before income taxes	298.5	216.0	44.9
Tax expense	(139.2)	(102.3)	(108.1)
Tax impact of adjusting items	(8.3)	0.5	73.3
Adjusted net earnings	151.0	114.2	10.1
Adjusted net earnings attributable to non-controlling interest:
Net earnings for the period	(1.5)	(0.7)	-
Adjusted net earnings - attributable to owners	149.5	113.5	10.1
Adjusted net earnings ($/share) - attributable to owners	0.34	0.28	0.03
Basic weighted average number of common shares outstanding (millions)	444.1	400.4	395.7

	TSX, NYSE - HBM 2026 No. 29

Adjusted EBITDA Reconciliation

	Three Months Ended
(in $ millions)	Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Earnings for the period	151.0	138.1	222.4
Add back:
Tax expense	139.2	102.3	108.1
Net finance (income) expense	(4.0)	(20.7)	19.6
Other operating expenses	12.5	(4.8)	7.5
Evaluation expenses	13.4	9.2	1.2
Depreciation and amortization	102.0	88.8	82.7
Amortization of deferred revenue and variable consideration adjustment	(10.3)	(9.5)	(6.3)
Adjusting items (pre-tax):
Impairment reversal	-	-	(322.3)
Consideration received from sale of Eva Copper Project	(0.9)	-	(14.9)
Re-evaluation adjustment - environmental provision	(11.8)	5.5	1.4
Inventory adjustments	-	0.9	(1.3)
Overhead costs incurred during Manitoba temporary suspension (cash)	-	-	16.0
Overhead costs incurred during Peru temporary suspension (cash)	-	-	7.3
Option agreement proceeds	0.7	1.0	1.1
Realized loss on non-QP hedges	(1.2)	(0.1)	-
Share-based compensation expenses	22.8	10.5	20.1
Adjusted EBITDA	413.4	321.2	142.6

Net Debt Reconciliation

(in $ millions)	Sep. 30, 2026	Jun. 30, 2026	Dec. 31, 2025
Total long-term debt	838.7	860.2	1,008.6
Cash and cash equivalents¹	(788.7)	(890.9)	(568.9)
Restricted cash related to unspent proceeds on senior unsecured municipal bonds²	(50.1)	(49.8)	-
Net debt²	(0.1)	(80.5)	439.7
Net debt	(0.1)	(80.5)	439.7
Adjusted EBITDA (12-month period)	1,542.4	1,271.6	1,060.9
Net debt to adjusted EBITDA	(0.0)	(0.1)	0.4

¹ As at September 30, 2026 cash and cash equivalents includes $290.1 million in cash held by Copper World LLC (June 30, 2026 - $334.5 million and December 31, 2025 - $nil). These funds are contractually restricted for the advancement of the Copper World project and are not available to the general Hudbay group.

² Hudbay calculates net debt as total long-term debt less cash and cash equivalents and restricted cash related to unspent proceeds of its senior unsecured municipal bond financing. For further information on the restricted cash related to unspent proceeds of senior unsecured municipal bond financing please see note 12 in the consolidated interim financial statements.

	TSX, NYSE - HBM 2026 No. 29

Trailing Adjusted EBITDA (in $ millions)	Three months ended
Trailing Adjusted EBITDA (in $ millions)	Sep. 30, 2026	Jun. 30, 2026	Mar. 31, 2026	Dec. 31, 2025	Sep. 30, 2025
Earnings for the period	151.0	138.1	191.5	128.0	222.4
Add back:
Tax expense	139.2	102.3	147.5	129.1	108.1
Net finance (income) expense	(4.0)	(20.7)	(33.8)	(14.6)	19.6
Other operating expenses (income)	12.5	(4.8)	6.5	(15.0)	7.5
Evaluation expense	13.4	9.2	2.9	0.8	1.2
Depreciation and amortization	102.0	88.8	99.9	152.5	82.7
Amortization of deferred revenue and variable consideration adjustment	(10.3)	(9.5)	(19.5)	(24.0)	(6.3)
Adjusting items (pre-tax):
Impairment reversal	-	-	-	-	(322.3)
Consideration received from sale of non-core project	(0.9)	-	-	-	(14.9)
Re-evaluation adjustment - environmental provision	(11.8)	5.5	2.1	(0.2)	1.4
Inventory adjustments	-	0.9	-	0.7	(1.3)
Overhead costs incurred during Manitoba temporary suspension (cash)	-	-	-	-	16.0
Overhead costs incurred during Peru temporary suspension (cash)	-	-	-	1.3	7.3
Realized loss on non-QP hedges	(1.2)	(0.1)	-	-	-
Option agreement proceeds	0.7	1.0	0.6	0.9	1.1
Share-based compensation expenses¹	22.8	10.5	24.2	26.4	20.1
Adjusted EBITDA	413.4	321.2	421.9	385.9	142.6
LTM²	1,542.4	1,271.6	1,195.6	1,060.9	932.3

¹ Share-based compensation expense reflected in cost of sales and administrative expenses.

²LTM (last twelve months) as of September 30, 2026.

	TSX, NYSE - HBM 2026 No. 29

Free Cash Flow Reconciliation

	Three months ended
(in $ millions)	Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Cash generated from operations	214.9	297.0	113.5
Adjusting items:
Change in non-cash working capital	(99.0)	86.9	43.2
Adjusted sustaining capital expenditures	112.0	108.3	86.4
Free cash flow	201.9	101.8	(16.1)
Adjusted sustaining capital expenditures
Total sustaining capital costs	93.0	80.1	71.2
Capitalized lease and equipment financing cash payments - operating sites	14.5	15.2	14.3
Community agreement cash payments	4.5	13.0	0.9
Adjusted sustaining capital expenditures	112.0	108.3	86.4

¹ Excludes amortization of decommissioning and restoration PP&E assets and accretion of decommissioning and restoration liabilities related to producing sites.

	Three months ended
(in $ millions)	Sep. 30, 2026	Jun. 30, 2026	Mar. 31, 2026	Dec. 31, 2025	LTM¹
Cash generated from operations	214.9	297.0	211.3	209.4	932.6
Adjusting items:
Change in non-cash working capital	(99.0)	86.9	2.6	(127.5)	(137.0)
Adjusted sustaining capital expenditures	112.0	108.3	106.4	111.9	438.6
Free cash flow	201.9	101.8	102.3	225.0	631.0
Adjusted sustaining capital expenditures
Total sustaining capital costs	93.0	80.1	87.0	91.8	351.9
Capitalized lease and equipment financing cash payments - operating sites	14.5	15.2	15.7	12.5	57.9
Community agreement cash payments	4.5	13.0	3.7	7.6	28.8
Adjusted sustaining capital expenditures	112.0	108.3	106.4	111.9	438.6

¹ LTM (last twelve months) as at September 30, 2026.

² Excludes amortization of decommissioning and restoration PP&E assets and accretion of decommissioning and restoration liabilities related to producing sites.

	TSX, NYSE - HBM 2026 No. 29

Copper Cash Cost Reconciliation

Consolidated Net pounds of copper produced (in thousands)	Three Months Ended
	Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Peru	45,353	42,871	39,934
Manitoba	6,640	5,216	1,856
British Columbia	14,480	14,231	11,572
Net pounds of copper produced¹	66,473	62,318	53,362

¹ Contained copper in concentrate.

Consolidated	Three Months Ended
	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025
Cash cost per pound of copper produced	$ millions	$/lb¹	$ millions	$/lb¹	$ millions	$/lb¹
Mining	138.3	2.08	117.0	1.88	70.2	1.32
Milling	94.6	1.42	94.4	1.51	75.8	1.42
G&A	62.2	0.94	52.2	0.84	31.8	0.59
Onsite costs	295.1	4.44	263.6	4.23	177.8	3.33
Treatment & refining	(9.4)	(0.14)	(0.1)	(0.01)	5.3	0.10
Freight & other	25.2	0.38	21.5	0.35	14.9	0.28
Cash cost, before by-product credits	310.9	4.68	285.0	4.57	198.0	3.71
By-product credits	(323.8)	(4.87)	(309.7)	(4.97)	(175.8)	(3.29)
Cash cost, net of by-product credits	(12.9)	(0.19)	(24.7)	(0.40)	22.2	0.42

Consolidated	Three Months Ended
	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025
Supplementary cash cost information	$ millions	$/lb¹	$ millions	$/lb¹	$ millions	$/lb¹
By-product credits²:
Zinc	19.3	0.29	9.2	0.15	9.9	0.18
Gold³	255.7	3.85	242.6	3.89	134.8	2.53
Silver³	27.2	0.41	35.4	0.57	13.9	0.26
Molybdenum & other	21.6	0.32	22.5	0.36	17.2	0.32
Total by-product credits	323.8	4.87	309.7	4.97	175.8	3.29
Reconciliation to IFRS:
Cash cost, net of by-product credits	(12.9)		(24.7)		22.2
By-product credits	323.8		309.7		175.8
Treatment and refining charges	9.4		0.1		(5.3)
Share-based compensation expense	1.0		1.2		1.7
Inventory adjustments	-		0.9		(1.3)
Change in product inventory	(10.9)		(17.3)		(19.6)
Royalties and statutory contributions⁵	7.3		3.6		2.0
Overhead costs incurred during Manitoba temporary suspension (cash)	-		-		16.0
Overhead costs incurred during Peru temporary suspension (cash)	-		-		7.3
Depreciation and amortization⁴	102.0		88.8		82.7
Cost of sales⁶	419.7		362.3		281.5

¹ Per pound of copper produced.

² By-product credits are computed as revenue per financial statements, amortization of deferred revenue and pricing and volume adjustments.

	TSX, NYSE - HBM 2026 No. 29

⁴ Depreciation is based on concentrate sold.

⁵ Certain of the Company's properties are subject to royalty arrangements based on mineral production at the properties. Royalties include net smelter return ("NSR") royalty and price participation agreements.

⁶ As per consolidated interim financial statements.

Peru (in thousands)	Three Months Ended
Peru (in thousands)	Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Net pounds of copper produced¹	45,353	42,871	39,934

¹ Contained copper in concentrate.

Peru	Three Months Ended
Peru	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025
Cash cost per pound of copper produced	$ millions	$/lb	$ millions	$/lb	$ millions	$/lb
Mining	49.5	1.09	42.2	0.98	34.8	0.87
Milling	45.3	1.00	50.9	1.19	40.8	1.02
G&A	32.9	0.73	25.4	0.59	19.3	0.48
Onsite costs	127.7	2.82	118.5	2.76	94.9	2.37
Treatment & refining	(5.3)	(0.12)	(0.5)	(0.01)	3.4	0.08
Freight & other	15.6	0.34	12.7	0.30	9.4	0.24
Cash cost, before by-product credits	138.0	3.04	130.7	3.05	107.7	2.69
By-product credits	(36.7)	(0.81)	(59.7)	(1.39)	(55.5)	(1.39)
Cash cost, net of by-product credits	101.3	2.23	71.0	1.66	52.2	1.30

Peru	Three Months Ended
Peru	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025
Supplementary cash cost information	$ millions	$/lb¹	$ millions	$/lb¹	$ millions	$/lb¹
By-product credits²:
Gold³	8.4	0.18	16.3	0.38	31.3	0.78
Silver³	7.1	0.16	21.0	0.49	7.0	0.18
Molybdenum	21.2	0.47	22.4	0.52	17.2	0.43
Total by-product credits	36.7	0.81	59.7	1.39	55.5	1.39
Reconciliation to IFRS:
Cash cost, net of by-product credits	101.3		71.0		52.2
By-product credits	36.7		59.7		55.5
Treatment and refining charges	5.3		0.5		(3.4)
Inventory adjustments	-		-		(1.3)
Share-based compensation expenses	0.2		0.2		0.2
Change in product inventory	5.4		(20.3)		(26.9)
Royalties and statutory contributions	1.6		1.3		1.5
Overhead costs incurred during Peru temporary suspension (cash)	-		-		7.3
Depreciation and amortization⁴	63.8		45.4		50.0
Cost of sales⁵	214.3		157.8		135.1

¹ Per pound of copper produced.

	TSX, NYSE - HBM 2026 No. 29

² By-product credits are computed as revenue per financial statements, 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 consolidated interim financial statements.

British Columbia (in thousands)	Three Months Ended
British Columbia (in thousands)	Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Net pounds of copper produced¹	14,480	14,231	11,572

¹ Contained copper in concentrate.

British Columbia	Three Months Ended
British Columbia	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025
Cash cost per pound of copper produced	$ millions	$/lb	$ millions	$/lb	$ millions	$/lb
Mining	37.3	2.57	31.3	2.20	19.6	1.69
Milling	31.1	2.15	27.2	1.91	29.1	2.52
G&A	7.5	0.52	7.9	0.56	7.1	0.61
Onsite costs	75.9	5.24	66.4	4.67	55.8	4.82
Treatment & refining	(5.4)	(0.37)	(0.6)	(0.04)	1.0	0.09
Freight & other	3.3	0.22	3.5	0.24	3.0	0.26
Cash cost, before by-product credits	73.8	5.09	69.3	4.87	59.8	5.17
By-product credits	(29.0)	(2.00)	(23.5)	(1.65)	(22.7)	(1.96)
Cash cost, net of by-product credits	44.8	3.09	45.8	3.22	37.1	3.21

British Columbia	Three Months Ended
British Columbia	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025
Supplementary cash cost information	$ millions	$/lb¹	$ millions	$/lb¹	$ millions	$/lb¹
By-product credits²:
Gold	25.7	1.77	20.7	1.45	20.4	1.76
Silver	3.3	0.23	2.8	0.20	2.3	0.20
Total by-product credits	29.0	2.00	23.5	1.65	22.7	1.96
Reconciliation to IFRS:
Cash cost, net of by-product credits	44.8		45.8		37.1
By-product credits	29.0		23.5		22.7
Treatment and refining charges	5.4		0.6		(1.0)
Share-based compensation expense	0.3		0.6		0.5
Change in product inventory	(12.9)		(2.6)		4.2
Royalties	5.7		2.3		0.5
Depreciation and amortization³	17.5		22.2		16.4
Cost of sales⁴	89.8		92.4		80.4

¹ Per pound of copper produced.

² By-product credits are computed as revenue per financial statements, including amortization of deferred revenue and pricing and volume adjustments.

³ Depreciation is based on concentrate sold.

⁴ As per consolidated interim financial statements.

	TSX, NYSE - HBM 2026 No. 29

Sustaining and All-in Sustaining Cash Cost Reconciliation

Consolidated	Three Months Ended
Consolidated	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025
All-in sustaining cash cost per pound of copper produced	$ millions	$/lb	$ millions	$/lb	$ millions	$/lb
Cash cost, net of by-product credits	(12.9)	(0.19)	(24.7)	(0.40)	22.2	0.42
Cash sustaining capital expenditures	112.6	1.69	107.9	1.73	87.5	1.64
Royalties	7.3	0.11	3.6	0.06	2.0	0.03
Sustaining cash cost, net of by-product credits	107.0	1.61	86.8	1.39	111.7	2.09
Corporate selling and administrative expenses & regional costs	37.4	0.56	23.5	0.38	35.1	0.66
Accretion and amortization of decommissioning and community agreements¹	5.0	0.08	3.6	0.06	3.9	0.07
All-in sustaining cash cost, net of by-product credits	149.4	2.25	113.9	1.83	150.7	2.82
Reconciliation to property, plant and equipment additions:
Property, plant and equipment additions	246.1		160.0		97.6
Capitalized stripping net additions	35.1		49.8		43.2
Total accrued capital additions	281.2		209.8		140.8
Less other non-sustaining capital costs²	188.2		129.7		69.6
Total sustaining capital costs	93.0		80.1		71.2
Capitalized lease & equipment financing cash payments - operating sites	14.5		15.2		14.3
LOM Community agreement cash payments	1.7		10.1		-
Accretion and amortization of decommissioning and restoration obligations³	3.4		2.5		2.0
Cash sustaining capital expenditures	112.6		107.9		87.5

¹ Includes accretion of decommissioning relating to non-producing sites, and accretion and amortization of community agreements capitalized to Other assets.

² Other non-sustaining capital costs include Copper World capitalized costs, Cactus project 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 Includes amortization of decommissioning and restoration PP&E assets and accretion of decommissioning and restoration liabilities related to producing sites.

	TSX, NYSE - HBM 2026 No. 29

Peru

Three Months Ended

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Sustaining cash cost per pound of copper produced

$ millions

$/lb

$ millions

$/lb

$ millions

$/lb

Cash cost, net of by-product credits

101.3

2.23

71.0

1.66

52.2

1.30

Cash sustaining capital expenditures

43.6

0.96

43.8

1.02

30.5

0.77

Royalties

1.6

0.04

1.3

0.03

1.5

0.04

Sustaining cash cost per pound of copper produced

146.5

3.23

116.1

2.71

84.2

2.11

British Columbia

Three Months Ended

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Sustaining cash cost per pound of copper produced

$ millions

$/lb

$ millions

$/lb

$ millions

$/lb

Cash cost, net of by-product credits

44.8

3.09

45.8

3.22

37.1

3.21

Cash sustaining capital expenditures

40.7

2.81

40.6

2.85

48.4

4.18

Royalties

5.7

0.40

2.3

0.16

0.5

0.04

Sustaining cash cost per pound of copper produced

91.2

6.30

88.7

6.23

86.0

7.43

Gold Cash Cost and Sustaining Cash Cost Reconciliation

Manitoba (in thousands)	Three Months Ended
Manitoba (in thousands)	Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Net ounces of gold produced¹	57,261	40,344	22,441

¹ Contained gold in concentrate and doré.

Manitoba	Three Months Ended
Manitoba	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025
Cash cost per ounce of gold produced	$ millions	$/oz	$ millions	$/oz	$ millions	$/oz
Mining	51.5	899	43.5	1,078	15.8	704
Milling	18.2	318	16.3	404	5.9	263
G&A	21.8	381	18.9	469	5.4	241
Onsite costs	91.5	1,598	78.7	1,951	27.1	1,208
Treatment & refining	1.3	23	1.0	25	0.9	40
Freight & other	6.3	109	5.3	131	2.5	111
Cash cost, before by-product credits	99.1	1,730	85.0	2,107	30.5	1,359
By-product credits	(76.0)	(1,327)	(53.7)	(1,331)	(22.0)	(980)
Gold cash cost, net of by-product credits	23.1	403	31.3	776	8.5	379

	TSX, NYSE - HBM 2026 No. 29

Manitoba	Three Months Ended
Manitoba	Sep. 30, 2026		Jun. 30, 2026		Sep. 30, 2025
Supplementary cash cost information	$ millions	$/oz¹	$ millions	$/oz¹	$ millions	$/oz¹
By-product credits²:
Copper	39.4	688	32.8	813	7.4	330
Zinc	19.3	337	9.2	228	9.9	441
Silver	16.9	295	11.6	288	4.7	209
Other	0.4	7	0.1	2	-	-
Total by-product credits	76.0	1,327	53.7	1,331	22.0	980
Reconciliation to IFRS:
Cash cost, net of by-product credits	23.1		31.3		8.5
By-product credits	76.0		53.7		22.0
Treatment and refining charges	(1.3)		(1.0)		(0.9)
Inventory adjustments	-		0.9		-
Share-based compensation expenses	0.5		0.4		1.0
Change in product inventory	(3.4)		5.6		3.1
Overhead costs incurred during temporary suspension	-		-		16.0
Depreciation and amortization³	20.7		21.2		16.3
Cost of sales⁴	115.6		112.1		66.0

¹ Per ounce of gold produced.

² By-product credits are computed as revenue per financial statements, amortization of deferred revenue and pricing and volume adjustments.

³ Depreciation is based on concentrate sold.

⁴ As per consolidated interim financial statements.

Manitoba

Three months ended

Sep. 30, 2026

Jun. 30, 2026

Sep. 30, 2025

Sustaining cash cost per ounce of gold produced

$ millions

$/oz

$ millions

$/oz

$ millions

$/oz

Gold cash cost, net of by-product credits

23.1

403

31.3

776

8.5

379

Cash sustaining capital expenditures

28.3

495

23.5

582

8.6

383

Sustaining cash cost per ounce of gold produced

51.4

898

54.8

1,358

17.1

762

	TSX, NYSE - HBM 2026 No. 29

Combined Unit Cost Reconciliation

Peru (in millions except ore tonnes milled and unit cost per tonne)	Three Months Ended
Combined unit cost per tonne processed	Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Mining	49.5	42.2	34.8
Milling	45.3	50.9	40.8
G&A¹	32.9	25.4	19.3
Other G&A²	(13.4)	(8.4)	(3.8)
Unit cost	114.3	110.1	91.1
Tonnes ore milled (in thousands)	8,402	7,828	6,992
Combined unit cost per tonne	13.60	14.06	13.03
Reconciliation to IFRS:
Unit cost	114.3	110.1	91.1
Freight & other	15.6	12.7	9.4
Inventory adjustments	-	-	(1.3)
Other G&A	13.4	8.4	3.8
Share-based compensation expenses	0.2	0.2	0.2
Change in product inventory	5.4	(20.3)	(26.9)
Royalties and statutory contributions	1.6	1.3	1.5
Overhead costs incurred during Peru temporary suspension (cash)	-	-	7.3
Depreciation and amortization	63.8	45.4	50.0
Cost of sales³	214.3	157.8	135.1

¹ G&A as per cash cost reconciliation above.

² Other G&A primarily includes profit sharing costs.

³ As per consolidated interim financial statements.

British Columbia (in millions except tonnes ore milled and unit cost per tonne)	Three Months Ended
Combined unit cost per tonne processed	Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Mining	37.3	31.3	19.6
Milling	31.1	27.2	29.1
G&A¹	7.5	7.9	7.1
Unit cost	75.9	66.4	55.8
USD/CAD implicit exchange rate	1.38	1.39	1.38
Unit cost - C$	104.7	92.3	77.3
Tonnes ore milled (in thousands)	3,060	3,616	3,087
Combined unit cost per tonne - C$	34.20	25.52	25.02
Reconciliation to IFRS:
Unit cost	75.9	66.4	55.8
Freight & other	3.3	3.5	3.0
Share-based compensation expenses	0.3	0.6	0.5
Change in product inventory	(12.9)	(2.6)	4.2
Royalties	5.7	2.3	0.5
Depreciation and amortization	17.5	22.2	16.4
Cost of sales²	89.8	92.4	80.4

¹ G&A as per cash cost reconciliation above.

² As per consolidated interim financial statements.

	TSX, NYSE - HBM 2026 No. 29

Manitoba (in millions except tonnes ore milled and unit cost per tonne)	Three Months Ended
Combined unit cost per tonne processed	Sep. 30, 2026	Jun. 30, 2026	Sep. 30, 2025
Mining	51.5	43.5	15.8
Milling	18.2	16.3	5.9
G&A¹	21.8	18.9	5.4
Less: Other G&A related to profit sharing costs	(13.1)	(9.6)	(1.8)
Unit cost	78.4	69.1	25.3
USD/CAD implicit exchange rate	1.40	1.38	1.39
Unit cost - C$	109.7	95.6	35.3
Tonnes ore milled (in thousands)	389	319	137
Combined unit cost per tonne - C$	282	300	258
Reconciliation to IFRS:
Unit cost	78.4	69.1	25.3
Freight & other	6.3	5.3	2.5
Other G&A related to profit sharing	13.1	9.6	1.8
Share-based compensation expenses	0.5	0.4	1.0
Inventory adjustments	-	0.9	-
Change in product inventory	(3.4)	5.6	3.1
Overhead costs incurred during Manitoba temporary suspension (cash)	-	-	16.0
Depreciation and amortization	20.7	21.2	16.3
Cost of sales²	115.6	112.1	66.0

¹ G&A as per cash cost reconciliation above.

² As per consolidated interim financial statements.

	TSX, NYSE - HBM 2026 No. 29

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.

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 and the resolution of grievances raised by local communities and their residents;

	TSX, NYSE - HBM 2026 No. 29

the ability to receive expected payments pursuant to the definitive agreement with Wheaton in respect of the enhanced precious metals stream at Copper World;
no interruptions to Hudbay's plans for advancing the Copper World project, in accordance with the DFS, and including with respect to any challenges to the Copper World permits or land rights;
no interruptions to Hudbay's plans for advancing New Ingerbelle, including with respect to any challenges to the New Ingerbelle permits or land rights;
Hudbay's ability to successfully advance and complete the optimization of the Copper Mountain operations, and develop and maintain good relations with key stakeholders;
the ability to execute on its exploration plans and to advance related drill plans;
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 forest fires that have affected and may continue to 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 complex political and social environment in Peru and potential disruptions to operations arising from community protests and grievances, 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 associated with the development of new projects, risks associated with acquisitions, investments and other strategic transactions, risks related to the Copper World project and the recent DFS, risks related to ongoing litigation in respect of certain land rights, risks from community opposition, project delivery risks, joint venture risks 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 (including any unanticipated significant interruptions to operations due to adverse effects from extreme weather events), 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, cybersecurity risks and risks related to the reliability and security of Hudbay's information technology and operational technology systems, including risks arising from cyber-attacks, ransomware, phishing and other malware, risks associated with the use of artificial intelligence technologies, as well as the risks discussed under the heading "Risk Factors" in Hudbay's most recent Annual Information Form and under the heading "Financial Risk Management" in Hudbay's most recent Annual Management's Discussion and Analysis, each of which is available on the Company's SEDAR+ profile at www.sedarplus.ca and the Company's EDGAR profile at www.sec.gov.

	TSX, NYSE - HBM 2026 No. 29

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.

	TSX, NYSE - HBM 2026 No. 29

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 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 Cactus 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 safe, efficient operations.

For further information, please contact:

Candace Brûlé

Senior Vice President, Capital Markets & Corporate Affairs

(416) 362-8181

investor.relations@hudbay.com

____________________

ⁱ Adjusted net earnings attributable to owners and adjusted net earnings 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 and 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; and free cash flow are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-GAAP Financial Performance Measures" section of this news release.

ⁱⁱ Liquidity includes $788.7 million in cash and cash equivalents and $175.6 million in undrawn availability under Hudbay's revolving credit facilities, (prior to giving effect to the $250 million increase in size to the credit facilities in November 2026), and excludes $50.1 million in municipal bond proceeds classified as restricted cash.

ⁱⁱⁱ Snow Lake average gold production over the 2026 to 2030 five-year period. Total life-of-mine ("LOM") gold production compares total LOM gold production in the 2021 technical report to total LOM gold production in the 2026 updated mine plan plus actual production since 2021.

^iv Snow Lake resource-to-reserve conversion rate based on the historical conversion at the Lalor deposit from 2022 to 2026.

^v Copper World cash costs and sustaining cash costs are non-GAAP financial performance measures with no standardized definition under IFRS. Sustaining cash costs includes sustaining capital expenditures, equipment financing and royalties. By-product credits calculated using amortization of deferred revenue for gold and silver stream sales. By-products calculated assuming the following long-term commodity prices: gold stream price of $540 per ounce (representing 15% of market price), silver stream price of $6.75 per ounce (representing 15% of market price), and molybdenum price of $17.50 per pound.

^vi Copper World total initial growth capital expenditures less $127 million of equipment financing. Equipment financing payments are incorporated in sustaining cash costs.

	TSX, NYSE - HBM 2026 No. 29

Exhibit 1: Constancia Breccia Drill Hole Intercept Highlights

Drill holes CO-26-003 and CO-26-005 intersected significant widths of mineralized breccia extending beyond the limits of the current resource and are being followed up with additional drilling.

Hole ID	From (m)	To (m)	Intercept (m)	Estimated true width (m)¹	Cu (%)²	Au (g/t)²	Mo (g/t)²	Ag (g/t)²
CO-26-003	399	644	245	233	0.43	0.05	364.6	1.4
including	478	602	124	118	0.55	0.06	531.1	1.5
CO-26-005	396	698	302	267	0.36	0.04	202.9	1.6
including	618	682	64	57	0.50	0.06	402.5	1.6

1. True widths are estimated based on drill angle and intercept geometry of mineralization.

2. All copper, gold, silver and molybdenum values are uncut.

Hole ID	Easting (m)	Northing (m)	Elevation (m ASL)	Azimuth (degrees)	Dip (degrees)	Length (m)	Core size
CO-26-003	201,456	8,399,347	4,099	220	(68)	838.4	HQ
CO-26-005	201,129	8,399,059	4,197	54	(66)	854.6	HQ

Note: The quality assurance program and quality control measures applied for purposes of monitoring the accuracy and precision of the results from this drilling and exploration program comply with ISO/IEC 17025 general requirements and industry best practices. These measures are also substantially similar to the quality assurance program and quality control measures applied at Constancia, which are described further in Hudbay's most recent NI 43-101 technical report for its Constancia project filed in March 2021, a copy of which is available on Hudbay's website and on Hudbay's SEDAR+ and EDGAR profiles.

Figure 1: Constancia Breccia Schematic Geometry

Hudbay's ongoing 2026 drilling exploration program at the Constancia operations in southern Peru has intersected significant widths of mineralized breccia extending beneath and adjacent to the existing reserve and resource envelope, as shown in Figure 1.

FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE

I, Peter Kukielski, Chief Executive Officer of Hudbay Minerals Inc., certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Hudbay Minerals Inc. (the "issuer") for the interim period ended September 30, 2026.

2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. Responsibility: The issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 Control framework: The control framework the issuer's other certifying officer and I used to design the issuer's ICFR is the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

5.2 N/A

5.3 N/A

6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on July 1, 2026 and ended on September 30, 2026 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: November 12, 2026

(signed) "Peter Kukielski"
Peter Kukielski
Chief Executive Officer

FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE

I, Eugene Lei, President and Chief Financial Officer of Hudbay Minerals Inc., certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Hudbay Minerals Inc. (the "issuer") for the interim period ended September 30, 2026.

5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer and I have, as at the end of the period covered by the interim filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

5.2 N/A

5.3 N/A

Date: November 12, 2026

(signed) "Eugene Lei"
Eugene Lei
President and Chief Financial Officer

Source: View Original Filing on SEC EDGAR

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