Hudbay Delivers Strong Second Quarter 2025 Results

Executive Summary

• Hudbay reported strong Q2 2025 results with revenue of $536.4 M, adjusted EBITDA of $245.2 M and net earnings of $117.7 M, delivering record 12‑month adjusted EBITDA of $995.9 M.
• The company reduced net debt to $434.1 M (net‑debt/EBITDA = 0.4x) and repurchased $50 M of senior notes, enhancing balance‑sheet strength.
• Announced a $600 M minority joint‑venture with Mitsubishi Corporation for Copper World (30% stake), providing $420 M at closing and $180 M within 18 months, and an enhanced Wheaton precious‑metals stream.

Key Details

• Financial Performance
• Revenue: $536.4 M (Q2 2025)
• Adjusted EBITDA: $245.2 M (down from $287.2 M Q1)
• Net earnings attributable to owners: $117.7 M; EPS $0.30 (up 17% YoY)
• Free cash flow: $87.8 M in Q2, >$400 M annualized over the last twelve months

• Cash & equivalents increased to $625.5 M; total liquidity $1.05 B

• Debt Reduction

• Repurchased and retired $50 M of senior unsecured notes at a discount.
• Total principal debt down to $1.07 B; net debt reduced by $91.6 M YoY to $434.1 M.

• Net‑debt/adjusted EBITDA ratio improved to 0.4x (lowest in over a decade).

• Copper World JV

• Mitsubishi to invest $600 M for a 30% equity interest in Copper World LLC.
• Funding structure: $420 M at closing, $180 M within 18 months; Mitsubishi also funds its pro‑rata share of future equity contributions.

• Expected to raise cash & equivalents >$1.0 B (pro forma) and total liquidity >$1.5 B, eliminating Hudbay’s net debt on the project.

• Wheaton Stream Enhancement

• Non‑binding term sheet to amend Wheaton stream: up to $70 M contingent payment for future mill expansion, shift from fixed pricing to 15% of spot gold/silver prices, maintaining $230 M initial deposit.

• Production & Cost Guidance

• Consolidated copper production Q2: 29,956 t; gold: 56,271 oz.
• Reaffirmed FY2025 copper guidance 117–149 kt and gold 247,500–308,000 oz.

• Improved FY2025 cash‑cost guidance to $0.65–$0.85 per lb copper (down from $0.80–$1.00).

• Operating Highlights

• Peru: 21,710 t Cu, 7,366 oz Au; cash cost $1.45/lb Cu (in line with guidance).
• Manitoba: 43,235 oz Au, 1,612 t Cu; cash cost $710/oz Au (consistent with range).

• British Columbia: 6,634 t Cu; cash cost $2.39/lb Cu (slightly higher due to stockpiled ore).

• Growth Initiatives

• $33.1 M growth capital spent in Q2 on brownfield mill upgrades and greenfield copper projects.
• Copper Mountain SAG‑mill conversion phase completed July 10; final phase on track for H2 2025.

• Exploration: drilling at Talbot (Snow Lake), development of 1901 zinc deposit, large geophysics program across Snow Lake land package.

• Dividend

• Semi‑annual dividend declared: C$0.01 per share (record date Sep 2, payable Sep 19).

Notable Quotes

“We delivered another quarter of significant free cash flow generation driven by continued industry‑leading cost margins and diversified exposure to copper and gold,” – Peter Kukielski, President & CEO.