Hudbay Announces Preliminary 2025 Production Results and Achieves 2025 Consolidated Copper and Gold Production Guidance

The January 16, 2026, news release provides preliminary production results for the full year 2025. Hudbay successfully achieved its consolidated production guidance for its two primary metals, copper and gold. Copper production reached 118,188 tonnes, landing at the low end of the 117,000–149,000 range. Gold production was 267,934 ounces, well within the 247,500–308,000 range. However, the company failed to meet guidance for zinc, silver, and molybdenum. Operationally, the fourth quarter was bolstered by high-grade mining at the Pampacancha deposit in Peru, which offset significant disruptions earlier in the year, including wildfires in Manitoba and social unrest in Peru. Financially, the company reported a pro-forma cash position of $992 million following the closing of the Copper World joint venture with Mitsubishi.

The news is a positive confirmation of operational resilience, though it highlights a year of "just getting by" on volume targets. - Operations: Achieving copper guidance is a significant win given that the company faced a 9-day total shutdown in Peru, a 2-month evacuation in Manitoba (Snow Lake), and major equipment failure (SAG mill) at Copper Mountain. However, copper production only exceeded the floor of the guidance by 1%, indicating no room for further error. - Financial De-risking: The most material development is the successful closing of the Mitsubishi JV (announced Jan 12, 2026). This injected $420 million immediately, with another $180 million to follow. This effectively "bulletproofs" the balance sheet for the Copper World build, reducing Hudbay's remaining equity contribution to ~$200 million. - Diversification: The "gold-heavy" Q4 in Peru (17,000 oz in October alone) acted as a critical hedge against lower copper volumes and higher costs at Copper Mountain. - Negative Deviations: The miss on Zinc (17,646 tonnes vs. 21,000 floor) is a 16% failure relative to guidance. While management attributes this to prioritizing gold zones, it represents a loss of diversified revenue.

Hudbay Minerals is a diversified miner with operations in Peru, Manitoba, and British Columbia. - Flagship Project: Copper World (Arizona, USA). This is a 100% owned (now 70% JV with Mitsubishi) project. It is fully permitted at the state level. Phase I has a 20-year mine life with expected annual production of 85,000 tonnes of copper. - Primary Assets: Constancia (Peru) provides low-cost copper/gold; Snow Lake (Manitoba) is a high-grade gold producer; Copper Mountain (BC) is a lower-grade, high-volume copper asset currently undergoing optimization.