HBM · Hudbay Minerals Inc.

Hudbay delivered record financial performance in Q1 2026, with revenue up 27% year-over-year to $757.3 million and net income attributable to owners surging 89% to $190.4 million — driven by elevated realized copper and gold prices, disciplined cost management, and stable production across all three operating jurisdictions (Peru, Manitoba, British Columbia). Gross profit expanded sharply to $368.0 million (48.6% margin), supported by lower mine operating costs per tonne and favorable by-product credits, particularly from gold (which contributed 39% of gross revenue). The company achieved a record consolidated cash cost of $(1.80)/lb copper — the first time it has reported a negative cash cost — reflecting both operational efficiency and strong by-product pricing. Financial strength accelerated dramatically: net debt fell to just $5.6 million, a $434.1 million reduction from December 31, 2025, directly attributable to the $420 million upfront cash contribution from Mitsubishi upon closing the Copper World joint venture in January 2026. This capital infusion enabled Hudbay to repay its $472.5 million 2026 senior unsecured notes on April 1, 2026, using a combination of cash and a $272 million revolver draw — preserving liquidity flexibility ahead of the anticipated Copper World sanctioning decision later this year. Management reaffirmed full-year 2026 production and cost guidance, signaling confidence in operational execution despite the depletion of high-grade Pampacancha ore at Constancia, which was offset by record mill throughput. Strategic momentum remains strong: the Copper World DFS is on track for mid-2026, the ASCU acquisition advances U.S. growth, and exploration at Snow Lake and Talbot continues to de-risk and extend mine life. With $1.4 billion in total liquidity and a net debt-to-adjusted EBITDA ratio of 0.0x, Hudbay enters the second half of 2026 with exceptional balance sheet capacity to fund development, return capital, or pursue accretive opportunities.