Hudbay Enhances Gold Production Profile at Snow Lake, Extends Reserve Mine Life to 18 Years and Identifies Further Growth Potential from Resource Conversion and the Britannia Gold Project

HudBay Minerals Inc. (HBM) has released a mine plan, reserve, and resource update for its Snow Lake operations in Manitoba. The figures provided are scoped specifically to the mine level rather than the company as a whole.

The update extends the reserve mine life by two years to 2043. When combined with a four-year extension announced in March 2026, management states this adds six years of mine life in 2026. Five-year average annual gold production from 2026 to 2030 is projected at 185,000 oz, representing a 37% increase compared to the 2021 technical report, or an additional approximately 250,000 oz over that same five-year window. Total life-of-mine gold production is now stated at 2.8 moz, up 60% from the 1.8 moz reported in the 2021 technical report.

Reserves as of Sept. 1, 2026, stand at 27.0 Mt containing approximately 2.0 moz Au. This represents an increase of 7.5 Mt in tonnage (38%) and 124,000 oz Au versus Jan. 1, 2026. Inferred resources, exclusive of reserves, total 21 Mt containing 1.5 moz Au, marking a 26% increase in tonnage despite conversion into reserves.

New reserves have been established for the first time at Talbot (2.71 Mt @ 1.46 g/t Au, 1.92% Cu, 1.14% Zn, with a 10-year life) and Rail (1.51 Mt @ 0.53 g/t Au, 1.96% Cu). Additionally, the 3 Zone probable reserve is recorded at 1.153 Mt @ 2.81 g/t Au. The Britannia Gold Project, formerly the New Britannia mine and currently on care and maintenance, carries 8.26 Mt of inferred resources @ 2.87 g/t Au (approximately 760 koz) across Upper Britannia, Lower Britannia, Boundary, and Birch, which management has pitched as a potential new anchor deposit.

Operational milestones include the 1901 project on track for full production in late 2027, which will take the Lalor shaft to 5,000 tpd. Stall hot tails leaching is scheduled for commissioning in early 2028. New Britannia is ramping to 2,300 tpd from 2027, with a permitted capacity of 2,500 tpd, while Stall is ramping from approximately 2,300 tpd to 3,000 tpd by 2030.

Reserve and resource cut-offs utilize $3,600/oz Au, $5.00/lb Cu, $1.25/lb Zn, and $40.00/oz Ag at an exchange rate of 1.33 C$/US$. Net smelter return (NSR) cut-offs range from C$150 to C$223/t depending on the deposit and mill route. Management’s COO stated that the three-year 2026–2028 average of approximately 190,000 oz Au and 11,500 t Cu is consistent with previously issued three-year production guidance.

HudBay is hosting a Snow Lake analyst and investor site visit on Oct. 1, 2026. A supporting NI 43-101 technical report is promised within 45 days.

HudBay Minerals Inc. (HBM) has extended its mine life by two years to 2043, adding 124,000 ounces of gold reserves, a 6.6% increase on a base of approximately 2.0 million ounces. The update includes first-time reserves at the Talbot and Rail projects, along with an addition of 4.2 million tonnes of inferred resources despite heavy conversion. The company also quantified the Britannia Gold Project with approximately 760,000 ounces of inferred resources, supported by existing underground infrastructure and two historical producing periods that yielded 600,000 ounces from 1949–1958 and 800,000 ounces from 1995–2005.

The near- and medium-term production and cost profile remains unchanged. The release states that the 2026–2028 average is consistent with previously issued three-year production guidance. The 2026–2030 average of 185,000 ounces is below the approximately 190,000 ounces per year average the company was already guiding to, meaning no guidance raise occurred.

Headline percentage increases of 37% and 60% are benchmarked against the 2021 technical report rather than current guidance or the March 2026 reserve update. On a like-for-like basis against January 1, 2026, reserves grew by 124,000 ounces of gold, or 6.6%, and mine life extended by two years out of an 18-year total. The release contains an internal inconsistency: the 2026–2043 mine plan table sums to 1,931,000 ounces of gold, versus the 2.8 million ounces headline figure. This implies the life-of-mine figure includes pre-2026 production and cannot be reconciled directly to the reserve-based table presented.

The incremental value lies in the 2030s and 2040s, characterized by declining gold grades and rising unit costs, which materially discounts its net present value contribution.

HudBay Minerals Inc. (HBM) is a copper-focused producer with significant gold and by-product zinc, silver, and molybdenum operations in Canada, Peru, and the United States.

At its Constancia mine in Cusco, Peru, the company operates a 100% owned open-pit copper-molybdenum facility that produces gold and silver credits. The site holds reserves of 487.1 million tonnes grading 0.240% copper. In June 2026, the permit was expanded to 34 million tonnes per annum, up from 31 million tonnes per annum. The mine achieved a record throughput of approximately 90,700 tonnes per day in the first quarter of 2026, and its mine life has been extended to 2040. During the second quarter of 2026, Constancia produced 19,446 tonnes of copper and 5,282 ounces of gold, with a cash cost of $1.66 per pound.

The Snow Lake operation in Manitoba, also 100% owned, includes the Lalor underground gold-copper-zinc mine, the New Britannia gold mill, the Stall base metals concentrator, the 1901 zinc-gold deposit, satellite deposits, and the dormant Britannia Gold Project. In the second quarter of 2026, Snow Lake produced 40,344 ounces of gold, 2,366 tonnes of copper, 4,760 tonnes of zinc, and 209,478 ounces of silver, with a gold cash cost of $776 per ounce.

HudBay acquired 100% ownership of the Copper Mountain mine in British Columbia in April 2025. This open-pit copper-gold-silver operation holds reserves of 345.0 million tonnes grading 0.256% copper, with a mine life extending to 2045. The New Ingerbelle expansion was permitted in February 2026, with groundbreaking scheduled for June 2026; the project is expected to yield approximately 750,000 tonnes of copper, 900,000 ounces of gold, and 5.5 million ounces of silver over its life. In the second quarter of 2026, Copper Mountain produced 6,455 tonnes of copper and 5,608 ounces of gold, with a cash cost of $3.22 per pound.

The company’s growth pipeline includes Copper World in Arizona, a 70/30 joint venture with Mitsubishi that is fully permitted with a definitive feasibility study approximately 95% complete and a sanction targeted for late 2026. Additional projects include Cactus in Arizona, acquired in June 2026 with a preliminary feasibility study update expected in the second half of 2027; Mason in Nevada, with a preliminary feasibility study also targeted for the second half of 2027; and Llaguen in Peru, which is in the exploration phase. Management aims to produce more than 250,000 tonnes of copper per year by 2030, increasing to more than 350,000 tonnes per year with the staged development of Cactus.