Hudbay Delivers Strong Second Quarter 2026 Results and Improves Cash Cost Guidance
HudBay raises gold cash cost guidance due to by-product boosts while advancing its Arizona growth pipeline.
HudBay Minerals Inc. (HBM) reported second-quarter 2026 revenue of $631.3M, net earnings of $137.4M ($0.34/share), and adjusted EBITDA of $321.2M. Trailing twelve-month adjusted EBITDA reached a record $1.3B. Consolidated copper production was 28,267 tonnes, with gold production at 51,234 oz. Cash cost (net of by-product credits) was $(0.40)/lb copper.
The company reaffirmed its full-year 2026 production guidance for copper at 110,000–138,000t and gold at 217,000–272,000 oz. Consolidated cash cost guidance was improved to $(0.45)–$(0.25)/lb, compared to the prior guidance of $(0.30)–$(0.10)/lb.
The earnings release highlighted the completion of the Arizona Sonoran Copper Company acquisition, the groundbreaking of the New Ingerbelle expansion at Copper Mountain, and the appointment of Eugene Lei as President & CFO. Free cash flow in Q2 was $101.8M, with H1 free cash flow exceeding $200M. HudBay Minerals Inc. holds a cash position of $890.9M with negative net debt of $80.5M.
HudBay Minerals Inc. (HBM) issued improved cash cost guidance, marking a positive surprise as the previous Q1 2026 call did not telegraph a range improvement. The revision puts consolidated cash costs firmly negative thanks to sustained high gold by-product credits. This directly boosts operating margins and free cash flow expectations for the year.
The release also notes the closing of the ASCU acquisition, which had been telegraphed, and that the Copper World DFS is nearing completion. The stock has recently pulled back from its highs amid sector weakness.
HudBay Minerals Inc. is a diversified base and precious metals producer operating three mines. The Constancia mine in Peru, which produces copper, gold, silver, and molybdenum, is an open-pit operation with a mine life of more than 15 years and a 2025 cash cost of $1.08 per pound. The Snow Lake mine in Manitoba, an underground facility producing gold, copper, zinc, and silver, has a mine life of more than 16 years and a gold cash cost of $549 per ounce. The Copper Mountain mine in British Columbia, an open-pit operation producing copper, gold, and silver, has a mine life of more than 20 years and a life-of-mine cash cost of $1.84 per pound.
The company also holds development projects including Copper World in Arizona, which is permitted and operated as a joint venture with Mitsubishi; Cactus in Arizona, acquired via ASCU; and Mason in Nevada, which is in the pre-feasibility stage. HudBay Minerals aims to grow copper production from approximately 125 kilotons in 2025 to more than 250 kilotons by 2030, with a long-term target of exceeding 350 kilotons.