Hudbay Delivers Record Revenue and EBITDA, Bolstered by Low Costs and Expanding Copper-Gold Operations

Consistent Operational Execution Fuels Record Revenue and Historic EBITDA

Hudbay Minerals (TSX, NYSE: HBM) reported record quarterly revenue of $757.3 million and record adjusted EBITDA of $421.9 million in the first quarter of 2026. This performance was supported by steady copper and gold production, disciplined cost control, and higher realized metal prices. The company’s focus on maintaining efficient operations and strategic cost management yielded industry-leading cash costs and robust free cash flow, setting a new company benchmark for quarterly and trailing twelve-month EBITDA ($1.2 billion).

Industry-Leading Cost Structure Enhances Margins Despite External Pressures

Hudbay’s consolidated cash cost, net of by-product credits, reached a record low of $(1.80) per pound of copper, while sustaining cash cost was $0.00 per pound—both metrics are standout achievements in the sector. The company's diversified revenue base (with gold contributing 39% of gross revenue) and solid by-product credits helped insulate margins against rising input costs. Free cash flow hit $102.3 million for the quarter. Net debt was slashed to just $5.6 million, a dramatic improvement from $439.7 million at year-end 2025, reflecting strong liquidity and prudent balance sheet management.

Production Guidance Reaffirmed Across All Assets; Expansion Plans on Track

Total first-quarter production included 27,929 tonnes of copper and 61,700 ounces of gold—both in line with expectations. Despite lower grades following the depletion of high-grade Pampacancha ore, Hudbay reaffirmed its full-year guidance: consolidated copper output of 110,000–138,000 tonnes and gold at 217,000–272,000 ounces. With the Copper World project feasibility study progressing (85% complete as of quarter-end) and the acquisition of Arizona Sonoran set to close soon, Hudbay is positioned to deliver generational copper growth.

Growth Investments Advance: Feasibility, Mine Life, and U.S. Project Integration

Hudbay continues to advance a pipeline of expansion projects and exploration programs. Reserve and resource updates extended mine lives at key sites, with Snow Lake’s life extended to 2041 and Copper Mountain to 2045. The joint venture with Mitsubishi on Copper World injected $420 million in cash, accelerating studies and de-risking steps. The pending acquisition of Arizona Sonoran Copper Company will make Hudbay a dominant player in the US copper sector, responding to surging demand for domestically sourced critical minerals.

Financial Discipline and Capital Allocation Support Shareholder Value

The balance sheet remains a pillar of Hudbay’s strategy: the company closed Q1 with over $1 billion in cash and $1.43 billion in total liquidity. All 2026 notes have been repaid, using available cash and low-cost credit, ensuring ongoing flexibility for project sanctioning and future growth. The board declared a quarterly dividend of C$0.01 per share, doubling the annual rate, and signaled intention to renew share buybacks (NCIB) up to 5% of common shares.

Consolidated Cost Performance Highlights

Looking Ahead: Expansion, Exploration, and Shareholder Returns

With multiple growth levers in motion—Copper World construction, Arizona Sonoran acquisition, mine life extensions, and the industry’s largest Snow Lake exploration program—Hudbay’s risk-adjusted profile remains favorable. Operational efficiency and cost discipline have resulted in superior financial flexibility, supporting both expansion and enhanced shareholder returns. Investors should watch for potential re-rating catalysts as guidance is reaffirmed, development decisions approach, and copper/gold market dynamics remain robust.

Key Takeaway: Hudbay’s performance in early 2026 demonstrates how diversified production, operating agility, and financial stewardship can set the foundation for long-cycle growth and industry leadership. For those tracking copper and gold producers with multi-jurisdictional exposure and disciplined cost management, Hudbay stands out as a company building for the future, not just the present.

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