Hudbay gets go-ahead for New Ingerbelle expansion
Record Profits and New Ingerbelle Permitting Success Solidify Hudbay's North American Copper Dominance
The most recent news release (February 20, 2026) confirms that Hudbay has received the final amended Mines Act and Environmental Management Act permits for the New Ingerbelle expansion at its Copper Mountain mine in British Columbia. This project is expected to produce 750,000 tonnes of copper and 900,000 ounces of gold over its life. Simultaneously, the company released record fiscal year 2025 results, reporting $2.2 billion in revenue and $1.06 billion in adjusted EBITDA. The company also announced a 100% increase in its quarterly dividend and the successful closing of the $600 million strategic partnership with Mitsubishi Corporation for the Copper World project in Arizona.
- Financial Performance: The record $1.06 billion EBITDA for 2025 represents a massive leap from the $647 million reported in 2023, driven by a full year of 100% ownership of Copper Mountain and high-grade production from the Pampacancha deposit in Peru.
- De-risking Growth: The New Ingerbelle permit is the "green light" for the primary growth engine of the B.C. business unit. Without this expansion, the Copper Mountain asset would face a significantly shorter life and declining grades.
- Liquidity and Balance Sheet: Closing the Mitsubishi JV provided $420 million in immediate cash, with another $180 million due within 18 months. This has reduced Hudbay’s net debt to adjusted EBITDA ratio to a very conservative 0.4x, effectively removing the "debt overhang" risk that historically weighed on the stock.
- Capital Allocation: The dividend increase to C$0.01 quarterly signifies management's confidence in sustainable free cash flow, even as they prepare to sanction the $1.3 billion Copper World project in 2026.
Hudbay is a diversified mining company with a focus on copper and gold. It operates three main hubs: - Constancia (Peru): A low-cost open-pit copper mine with significant gold and silver byproducts. - Snow Lake (Manitoba): A high-grade gold and base metal operation centered on the Lalor mine. - Copper Mountain (British Columbia): A large-scale copper-gold mine (100% owned as of 2025). - Flagship Growth Project: Copper World (Arizona), a fully permitted project expected to produce 85,000 tonnes of copper annually for 20 years, making Hudbay the third-largest copper cathode producer in the U.S.