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Continued Free Cash Flow Generation Driven by Expanding Operating Margins; Emerging External Cost Pressures Insulated by Diversified Copper and Gold Exposure
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Hudbay has delivered several quarters of significant free cash flow generation as a result of steady operating performance, expanding margins from strong copper and gold exposure and a focus on cost control across the business. While the majority of Hudbay’s revenue continues to be derived from copper production, revenue from gold production represents a meaningful portion of total revenues. Gold revenues were 39% of gross revenue in the first quarter of 2026.
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Hudbay’s cost control efforts are focused on navigating emerging external cost pressures, such as higher fuel prices and short-term labour challenges. The Company is not experiencing any disruption to fuel availability and is mitigating the cost pressures through initiatives to further improve throughput and enhance operating efficiencies. Hudbay benefits from its diversified platform with significant by-product credits from gold production and the polymetallic nature of the Company’s ore deposits.
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With the Company’s prudent balance sheet management and further reduction in net debt during the first quarter of 2026, Hudbay is well-positioned to advance its generational growth investments across the portfolio and allocate capital to the highest risk-adjusted return opportunities to deliver significant value for stakeholders.
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Copper World DFS On-track for Completion in Mid-2026
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In January 2026, Hudbay announced the closing of the joint venture transaction with Mitsubishi, securing a premier, long-term strategic partner for the development of Copper World. The $420 million of initial proceeds received at closing from Mitsubishi will be used to directly fund the remaining DFS costs and pre-sanctioning costs in addition to the initial project development costs for Copper World. Mitsubishi will contribute an additional $180 million within 18 months of closing to complete its 30% minority investment and will also fund its pro-rata 30% share of future equity capital contributions.
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Feasibility activities for Copper World are well underway with the DFS progressing above 85% completion at the end of March. The DFS continues to be on-track for completion in mid-2026. Hudbay continues to execute detailed engineering work and other de-risking activities in preparation for a Copper World sanctioning decision expected later in 2026.
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Announced Acquisition of Arizona Sonoran to Create the Third Largest Copper District in North America
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On March 2, 2026, Hudbay entered into a definitive agreement (the “Arrangement Agreement”) pursuant to which Hudbay has agreed to acquire all of the issued and outstanding common shares of ASCU, not already owned by Hudbay, for consideration of 0.242 of a common share of Hudbay per common share of ASCU (the “Transaction”). Following completion of the Transaction, Hudbay will own a 100% interest in ASCU’s Cactus project.
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The Transaction brings together two highly complementary copper growth assets in Arizona and strengthens Hudbay’s position as a premier Americas-focused copper company with a pipeline of long‑life, low‑cost assets located in tier-one jurisdictions. When completed, the Transaction is expected to enhance Hudbay’s long‑term copper production profile, expand its U.S. growth pipeline, and benefit from increasing demand for domestically produced critical minerals in the U.S. Significant operational efficiencies and regional synergies are expected with Hudbay’s staged development of Copper World and Cactus.
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The Transaction is subject to ASCU shareholder approval at a special meeting scheduled to be held on May 11, 2026 and customary regulatory approvals. The Transaction is expected to close in the second quarter of 2026.
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Annual Reserve and Resource Update and Three-Year Production Guidance
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Hudbay provided its annual mineral reserve and resource update and issued new three-year production guidance on March 27, 2026.
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In Peru, current mineral reserve estimates total 488 million tonnes at 0.24% copper containing approximately 1.2 million tonnes of copper. The expected mine life of Constancia is now until 2040 as mill throughput rates are expected to increase to more than 90,000 tonnes per day starting in the second half of 2026 with the installation of two pebble crushers and related permit amendments. Constancia’s three-year production guidance reflects stable annual copper production averaging approximately 87,500iii tonnes of copper over the next three years, as the depletion of Pampacancha in 2025 is offset by higher mill throughput and operating efficiencies. 2027 and 2028 copper production is expected to be 90,000iii tonnes, a 9% increase from 2026 expected copper production of 82,500iii tonnes, benefitting from a full year of increased mill throughput, operating efficiencies and mine plan optimization to smooth copper production over the three-year period. The benefits of the mine plan optimization initiatives extend beyond the 3-year outlook with 2029 copper production expected to continue near these levels.
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In Snow Lake, current mineral reserve estimates total approximately 19.6 million tonnes with approximately 1.9 million ounces of gold and support a mine life to 2041, representing an extension of four years. Snow Lake’s life-of-mine production schedule has been optimized for higher mill throughput rates at New Britannia, maximizing gold production and cash flows. The ongoing exploration program in the region remains a core priority, focusing on near-mine extensions and regional satellite deposits to utilize available milling capacity. Manitoba’s three-year production guidance reflects continued strong gold production levels averaging 190,000iii ounces per year. New Britannia mill throughput is expected to continue to exceed expectations and operate above 2,200 tonnes per day, far exceeding its original design capacity of 1,500 tonnes per day. The production guidance anticipates Lalor operating between 4,000 to 4,500 tonnes per day, supplemented by contributions from the 1901 deposit with a ramp up to 1,000 tonnes per day by 2028. In 2026, Hudbay expects to complete a feasibility study on the Stall mill tailings leaching project, which has the potential to further increase gold production starting in 2028. The benefits of this project have not been reflected in the production guidance.
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In British Columbia, current mineral reserve estimates total 345 million tonnes at 0.26% copper and 0.12 grams per tonne gold, containing approximately 883 thousand tonnes of copper and 1.3 million ounces of gold. These mineral reserves support a mine life until 2045, representing an extension of two years, with additional upside potential for future resource conversion and mine life extension through 122 million tonnes of measured and indicated resources grading 0.21% copper and 0.10 grams per tonne gold and 347 million tonnes of inferred resources grading 0.24% copper and 0.12 grams per tonne gold, in each case exclusive of mineral reserves. British Columbia’s three-year copper production guidance reflects sequentially higher copper production averaging 48,000iii tonnes per year, as a result of the completion of the conversion of the third ball mill to second SAG mill in late 2025, installation of the replacement feed-end head at the primary SAG mill in the third quarter of 2026, and higher grades from the completion of the accelerated stripping program in 2026. 2027 and 2028 copper production is expected to average 57,500iii tonnes, almost double 2026 expected copper production of 30,000iii tonnes, benefitting from a full year of mill throughput at the targeted 50,000 tonnes per day and the unlocking of higher grades from the accelerated stripping program. British Columbia’s annual gold production is expected to average approximately 35,000iii ounces of gold over the next three years, reflecting sequentially higher gold production averaging 38,500iii ounces over 2027 and 2028, a 43% increase from 2026, as a result of the expected contribution from New Ingerbelle starting in 2028.
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Consolidated copper production is expected to average 147,000iii tonnes per year over the next three years, an increase of 24% from 2025 levels. Consolidated copper production is expected to average 159,000iii tonnes per year in 2027 and 2028, representing a 28% increase from expected 2026 production. The increase is due to higher expected copper production in British Columbia as a result of mill throughput ramping up to the targeted 50,000 tonnes per day in the second half of 2026, higher grades in British Columbia in 2027 from the completing of the accelerated stripping program, and higher expected mill throughput in Peru from the addition of two pebble crushers and operating efficiencies in the second half of 2026. Consolidated gold production is expected to average 243,000iii ounces per year over the next three years, reflecting continued strong production in Manitoba and the expected contribution from New Ingerbelle in British Columbia starting in 2028.
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| Contained Metal in Concentrate and Doré1 | 2026 Guidance | 2027 Guidance | 2028 Guidance | |
| Peru | ||||
| Copper | tonnes | 75,000 – 90,000 | 80,000 – 100,000 | 80,000 – 100,000 |
| Gold | ounces | 15,000 – 20,000 | 17,000 – 21,000 | 17,000 – 21,000 |
| Silver | ounces | 1,900,000 – 2,400,000 | 1,200,000 – 1,400,000 | 2,000,000 – 2,500,000 |
| Molybdenum | tonnes | 900 – 1,100 | 1,100 – 1,400 | 500 – 700 |
| Manitoba | ||||
| Gold | ounces | 180,000 – 220,000 | 170,000 – 210,000 | 160,000 – 200,000 |
| Zinc | tonnes | 16,000 – 21,000 | 16,000 – 21,000 | 29,000 – 36,000 |
| Copper | tonnes | 10,000 – 13,000 | 10,000 – 14,000 | 9,000 – 13,000 |
| Silver | ounces | 800,000 – 1,000,000 | 950,000 – 1,200,000 | 1,000,000 – 1,300,000 |
| British Columbia | ||||
| Copper | tonnes | 25,000 – 35,000 | 50,000 – 70,000 | 50,000 – 60,000 |
| Gold | ounces | 22,000 – 32,000 | 26,000 – 38,000 | 38,000 – 52,000 |
| Silver | ounces | 200,000 – 290,000 | 500,000 – 660,000 | 420,000 – 580,000 |
| Total | ||||
| Copper | tonnes | 110,000 – 138,000 | 140,000 – 184,000 | 139,000 – 173,000 |
| Gold | ounces | 217,000 – 272,000 | 213,000 – 269,000 | 215,000 – 273,000 |
| Zinc | tonnes | 16,000 – 21,000 | 16,000 – 21,000 | 29,000 – 36,000 |
| Silver | ounces | 2,900,000 – 3,690,000 | 2,650,000 – 3,260,000 | 3,420,000 – 4,380,000 |
| Molybdenum | tonnes | 900 – 1,100 | 1,100 – 1,400 | 500 – 700 |
| 1 Metal reported in concentrate and doré is prior to refining losses or deductions associated with smelter terms and includes other secondary products. | ||||
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Large Exploration Drill Program Continues in Snow Lake
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Hudbay continues to execute the largest exploration program in Snow Lake in the Company’s history through extensive geophysical surveying and multi-phased drilling campaigns as part of Hudbay’s threefold exploration strategy:
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- Near-mine Exploration at Lalor and 1901 to Further Increase Near-term Production and Extend Mine Life – Near-mine exploration at the Lalor mine and the adjacent 1901 deposit continued to support near-term production growth and mine life extension. The exploration program will continue during 2026 to potentially increase mineral reserves and resources and enable resource conversion. The Company completed development of the initial exploration drift at the 1901 deposit in 2025 and commenced delivery of zinc-rich development ore for processing at Stall. Activities at the 1901 deposit over the next two years will focus on exploration and definition drilling, orebody access and establishing the critical infrastructure required to support full production beginning in late 2027. Exploration activities will include step-out drilling to potentially extend the orebody, as well as infill drilling aimed at converting inferred mineral resources within the gold lenses to mineral reserves.
- Testing Regional Satellite Deposits to Utilize Available Processing Capacity and Increase Production – Hudbay increased its regional land package by more than 250% in 2023 through the acquisition of Rockcliff Metals Corp. (“Rockcliff”), which included the addition of several known deposits located within trucking distance of the Snow Lake processing infrastructure. The deposits acquired as part of the Rockcliff acquisition, together with several deposits already owned by Hudbay in Snow Lake, have created an attractive portfolio of regional deposits in Snow Lake, including the Talbot, New Britannia, Rail, Pen II, Watts, 3 Zone and WIM deposits. The continued strong performance from the New Britannia mill has freed up processing capacity at the Stall mill, where there is approximately 1,500 tonnes per day of available capacity which could be utilized by regional satellite deposits to potentially increase production and extend the life of the Snow Lake operations beyond 2041.
- Exploring Large Land Package for New Anchor Deposit to Significantly Extend Mine Life – A majority of the land claims acquired as part of the Rockcliff acquisition in 2023 have been untested by modern deep geophysics, which was the discovery method for the Lalor deposit. A large geophysics program is currently underway consisting of surface electromagnetic surveys using cutting edge techniques that enable the team to detect targets at depths of almost 1,000 metres below surface. The planned geophysics program includes 600 kilometres of ground electromagnetic surveys and an extensive airborne geophysics survey in 2026.
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Talbot Drilling Confirms Resource Expansion Potential
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Talbot is a copper-zinc-gold rich volcanogenic massive sulfide (“VMS”) deposit located within trucking distance of existing processing infrastructure in Snow Lake. Successful drilling campaigns are expected to expand the resource base and support a pre-feasibility study (“PFS”) aimed at upgrading mineral resources to mineral reserves and extending the overall mine life of the Snow Lake operations. During the first quarter of 2026, the drilling program was expanded to a fleet of eight drill rigs to fast track the completion of the infill portion of the program. Six of the rigs will remain at site in the second quarter to focus on geotechnical drilling required for the PFS and testing additional targets to expand the footprint of the deposit at depth. These efforts will determine the future scope of a PFS including shaft versus ramp access and the best location for a future exploration drift. Hudbay intends to update Rockcliff’s prior mineral resource estimate for Talbot using Hudbay’s standard methods that have demonstrated high mineral resource to reserve conversion rates.
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Dividend Declared
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A quarterly dividend of C$0.01 per share was declared on April 30, 2026. The dividend will be paid out on June 26, 2026 to shareholders of record as of close of business on June 9, 2026.
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In February 2026, Hudbay’s Board of Directors approved the introduction of a new quarterly dividend of C$0.01 per share as the Company achieved certain financial milestones ahead of schedule and significantly improved its financial position. The new total annual dividend amount of C$0.04 per share represents an increase of 100% or C$0.02 per share over the previous total annual dividend, which was paid semi-annually, and is the first dividend increase in the Company’s history.
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Intention to Renew Normal Course Issuer Bid
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Hudbay’s board of directors has approved the renewal of the Company’s normal course issuer bid (“NCIB”) for up to 5% of the Company’s issued and outstanding common shares (“Shares”), subject to the approval of the Toronto Stock Exchange (the “TSX”). If approved by the TSX, the NCIB will be conducted in accordance with the requirements of the TSX and applicable securities laws, with purchases to be made as appropriate opportunities arise from time to time.
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If approved by the TSX, Hudbay will be authorized to acquire up to 5% of its issued and outstanding Shares, for cancellation over a 12-month period. The actual number of Shares which may be purchased by Hudbay pursuant to the NCIB, if any, and the timing of such purchases will be determined by management of the Company and will be subject to a number of factors, including market conditions, share price, available cash resources and other opportunities to invest capital for growth. No purchases have been made under the current NCIB since its implementation in May 2025.
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Purchases under the NCIB will be made through the facilities of the TSX, New York Stock Exchange, or through alternative Canadian trading systems and in accordance with applicable regulatory requirements at a price per Share equal to the market price at the time of acquisition. Any Shares purchased under the NCIB will be cancelled upon their purchase. Hudbay intends to fund the purchases from its cash flow from operations.
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Hudbay has elected to implement the NCIB because it believes that, from time to time, the market price of the Shares may not fully reflect the underlying value of Hudbay’s business and future prospects. Hudbay believes that, at such times, the purchase of the Shares for cancellation may constitute a desirable use of capital and would be in the best interests of shareholders. There cannot be any assurance as to how many Shares, if any, will ultimately be purchased pursuant to the NCIB if approved by the TSX. Any subsequent renewals of the NCIB will be in Hudbay’s discretion and subject to further TSX approval.
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Website Links
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Management’s Discussion and Analysis:
https://www.hudbayminerals.com/MDA526
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Conference Call and Webcast
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| Date: | Friday, May 1, 2026 |
| Time: | 11:00 a.m. ET |
| Webcast: | www.hudbay.com |
| Dial in: | 647-846-8185 or 1-833-752-3516 |
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Qualified Person and NI 43-101
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The technical and scientific information in this news release related to all of Hudbay’s material mineral projects other than the Copper Mountain mine has been approved by Olivier Tavchandjian, P. Geo., Senior Vice President, Exploration and Technical Services. The technical and scientific information in this news release related to the Copper Mountain mine has been approved by Marc-Andre Brulotte, P. Geo., Executive Director, Global Mineral Resource Evaluation. Messrs. Tavchandjian and Brulotte are qualified persons pursuant to NI 43‑101.
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For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources at Hudbay’s material mineral properties, as well as data verification procedures and a general discussion of the extent to which the estimates of scientific and technical information may be affected by any known environmental, permitting, legal title, taxation, sociopolitical, marketing or other relevant factors, please see the technical reports for the Company’s material properties are available on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov.
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Non-GAAP Financial Performance Measures
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Adjusted net earnings (loss) attributable to owners, adjusted net earnings (loss) per share attributable to owners, adjusted EBITDA, net debt, net debt to adjusted EBITDA, free cash flow, cash cost, sustaining and all-in sustaining cash cost per pound of copper produced, cash cost and sustaining cash cost per ounce of gold produced, combined unit cost and ratios based on these measures are non-GAAP performance measures. These measures do not have a meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently.
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Management believes adjusted net earnings (loss) attributable to owners and adjusted net earnings (loss) per share attributable to owners provides an alternate measure of the Company’s performance for the current period and gives insight into its expected performance in future periods. These measures are used internally by the Company to evaluate the performance of its underlying operations and to assist with its planning and forecasting of future operating results. As such, the Company believes these measures are useful to investors in assessing the Company’s underlying performance. Hudbay provides adjusted EBITDA to help users analyze the Company’s results and to provide additional information about its ongoing cash generating potential in order to assess its capacity to service and repay debt, carry out investments and cover working capital needs. Net debt is shown because it is a performance measure used by the Company to assess its financial position. Net debt to adjusted EBITDA is shown because it is a performance measure used by the Company to assess its financial leverage and debt capacity. Free cash flow is shown as it provides investors and management additional information in assessing the Company’s ability to generate cash flow from current operations after investing in capital to sustain the operations. Cash cost, sustaining and all-in sustaining cash cost per pound of copper produced are shown because the Company believes they help investors and management assess the performance of its operations, including the margin generated by the operations and the Company. Cash cost and sustaining cash cost per ounce of gold produced are shown because the Company believes they help investors and management assess the performance of its Manitoba operations. Combined unit cost is shown because Hudbay believes it helps investors and management assess the Company’s cost structure and margins that are not impacted by variability in by-product commodity prices.
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The following tables provide detailed reconciliations to the most comparable IFRS measures.
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Adjusted Net Earnings (Loss) Reconciliation
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| Three Months Ended | ||||||
| (in $ millions) | Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | |||
| Net earnings for the period | 191.5 | 128.0 | 99.2 | |||
| Tax expense | 147.5 | 129.1 | 72.1 | |||
| Earnings before tax | 339.0 | 257.1 | 171.3 | |||
| Adjusting items: | ||||||
| Mark-to-market adjustments1 | (38.7 | ) | (5.7 | ) | (3.1 | ) |
| Foreign exchange loss (gain) | 10.7 | (5.4 | ) | (3.1 | ) | |
| Re-evaluation adjustment – environmental provision | 2.1 | (0.2 | ) | 12.8 | ||
| Manitoba cost of sales and other expense from temporary shutdown | — | 0.5 | — | |||
| Peru cost of sales from temporary shutdown | — | 2.1 | — | |||
| Insurance Recovery | — | (25.0 | ) | — | ||
| Variable consideration adjustment – stream revenue and accretion | 0.1 | — | (10.5 | ) | ||
| Inventory adjustments | — | 0.7 | 1.2 | |||
| Restructuring charges | — | — | 0.1 | |||
| Reduction of obligation to renounce flow-through share expenditures, net of provisions | (3.3 | ) | (1.6 | ) | (1.9 | ) |
| Loss/write-down on disposal of PP&E | 1.0 | 2.9 | 0.6 | |||
| Changes in other provisions (non-capital) | — | — | 0.7 | |||
| Adjusted earnings before income taxes | 310.9 | 225.4 | 168.1 | |||
| Tax expense | (147.5 | ) | (129.1 | ) | (72.1 | ) |
| Tax impact on adjusting items | (3.2 | ) | (10.3 | ) | (2.8 | ) |
| Adjusted net earnings | 160.2 | 86.0 | 93.2 | |||
| Adjusted net earnings attributable to non-controlling interest: | ||||||
| Net (earnings) loss for the period | (1.1 | ) | — | 1.2 | ||
| Adjusting items, including tax impact | — | — | (0.6 | ) | ||
| Adjusted net earnings – attributable to owners | 159.1 | 86.0 | 93.8 | |||
| Adjusted net earnings ($/share) – attributable to owners | 0.40 | 0.22 | 0.24 | |||
| Basic weighted average number of common shares outstanding (millions) | 396.9 | 396.3 | 395.0 | |||
| 1 Includes changes in fair value of the gold prepayment liability, Canadian junior mining investments, other financial assets and liabilities at fair value through net earnings and share-based compensation (recoveries) expenses. Also includes gains and losses on disposition of investments. | ||||||
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Adjusted EBITDA Reconciliation
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| Three Months Ended | ||||||
| (in $ millions) | Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | |||
| Net earnings for the period | 191.5 | 128.0 | 99.2 | |||
| Add back: | ||||||
| Tax expense | 147.5 | 129.1 | 72.1 | |||
| Other (income) expenses | (33.8 | ) | (14.6 | ) | 14.4 | |
| Other operating expenses | 10.1 | (13.6 | ) | 5.2 | ||
| Depreciation and amortization | 99.9 | 152.5 | 108.1 | |||
| Amortization of deferred revenue and variable consideration adjustment | (19.5 | ) | (24.0 | ) | (29.3 | ) |
| Adjusting items (pre-tax): | ||||||
| Re-evaluation adjustment – environmental provision | 2.1 | (0.2 | ) | 12.8 | ||
| Inventory adjustments | — | 0.7 | 1.2 | |||
| Overhead costs incurred during Peru temporary suspension (cash) | — | 1.3 | — | |||
| Option agreement proceeds | 0.6 | 0.9 | 1.5 | |||
| Realized loss on non-QP hedges | — | — | (1.9 | ) | ||
| Share-based compensation expenses1 | 23.5 | 25.8 | 3.9 | |||
| Adjusted EBITDA | 421.9 | 385.9 | 287.2 | |||
| 1 Share-based compensation expenses reflected in cost of sales and selling and administrative expenses. | ||||||
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Net Debt Reconciliation
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| (in $ millions) | ||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||||
| Total debt | 1,009.4 | 1,008.6 | 1,108.7 | |||
| Less: Cash and cash equivalents1 | (1,003.8 | ) | (568.9 | ) | (562.6 | ) |
| Less: Short-term investments | — | — | (20.0 | ) | ||
| Net debt | 5.6 | 439.7 | 526.1 | |||
(in $ millions, except net debt to adjusted EBITDA ratio) | ||||||
| Net debt | 5.6 | 439.7 | 526.1 | |||
| Adjusted EBITDA (12-month period) | 1,195.6 | 1,060.9 | 895.5 | |||
| Net debt to adjusted EBITDA | 0.0 | 0.4 | 0.6 | |||
| 1 As at March 31, 2026 cash and cash equivalents includes $370.7 million in cash held by Copper World LLC. These funds are contractually restricted for the advancement of the Copper World project and are not available to the general Hudbay group. | ||||||
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| Trailing Adjusted EBITDA | Three Months Ended | |||||||||
| (in $ millions) | Mar. 31, 2026 | Dec. 31, 2025 | Sep. 30, 2025 | Jun. 30, 2025 | Mar. 31, 2025 | |||||
| Earnings for the period | 191.5 | 128.0 | 222.4 | 114.7 | 99.2 | |||||
| Add back: | ||||||||||
| Tax expense | 147.5 | 129.1 | 108.1 | 38.4 | 72.1 | |||||
| Other (income) expenses | (33.8 | ) | (14.6 | ) | 19.6 | — | 14.4 | |||
| Other operating expenses | 10.1 | (13.6 | ) | 9.1 | 7.1 | 5.2 | ||||
| Depreciation and amortization | 99.9 | 152.5 | 82.7 | 96.4 | 108.1 | |||||
| Amortization of deferred revenue and variable consideration adjustment | (19.5 | ) | (24.0 | ) | (6.3 | ) | (15.4 | ) | (29.3 | ) |
| Adjusting items (pre-tax): | ||||||||||
| Impairment reversal | — | — | (322.3 | ) | — | — | ||||
| Consideration received from non-core project | — | — | (14.9 | ) | — | — | ||||
| Re-evaluation adjustment – environmental provision | 2.1 | (0.2 | ) | 1.4 | (13.8 | ) | 12.8 | |||
| Inventory adjustments | — | 0.7 | (1.3 | ) | 3.5 | 1.2 | ||||
| Overhead costs incurred during Manitoba temporary suspension (cash) | — | — | 16.0 | 3.2 | — | |||||
| Overhead costs incurred during Peru temporary suspension (cash) | — | 1.3 | 7.3 | — | — | |||||
| Realized loss on non-QP hedges | — | — | — | (0.4 | ) | (1.9 | ) | |||
| Option agreement proceeds | 0.6 | 0.9 | 1.1 | 1.0 | 1.5 | |||||
| Share-based compensation expenses1 | 23.5 | 25.8 | 19.7 | 10.5 | 3.9 | |||||
| Adjusted EBITDA | 421.9 | 385.9 | 142.6 | 245.2 | 287.2 | |||||
| LTM2 | 1,195.6 | 1,060.9 | 932.3 | 995.7 | 895.5 | |||||
| 1 Share-based compensation expense reflected in cost of sales and administrative expenses. | ||||||||||
| 2 LTM (last twelve months) as of March 31, 2026. Annual consolidated results may not be calculated based on the amounts presented in this table due to rounding. | ||||||||||
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Free Cash Flow Reconciliation
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| (in $ millions) | Three Months Ended | ||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | |||||
| Cash generated from operations | 211.3 | 209.4 | 124.8 | ||||
| Adjusting items: | |||||||
| Change in non-cash working capital | 2.6 | (127.5 | ) | (38.7 | ) | ||
| Cash sustaining capital expenditures1 | 106.4 | 111.9 | 79.1 | ||||
| Free cash flow | 102.3 | 225.0 | 84.4 | ||||
| Cash sustaining capital expenditures1 | |||||||
| Total sustaining capital costs | 87.0 | 91.8 | 62.5 | ||||
| Capitalized lease and equipment financing cash payments – operating sites | 15.7 | 12.5 | 12.8 | ||||
| Community agreement cash payments | 3.7 | 7.6 | 3.8 | ||||
| Cash sustaining capital expenditures1 | 106.4 | 111.9 | 79.1 | ||||
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| Three Months Ended | ||||||||||
| (in $ millions) | Mar. 31, 2026 | Dec. 31, 2025 | Sept. 30, 2025 | Jun. 30, 2025 | LTM2 | |||||
| Cash generated from operations | 211.3 | 209.4 | 113.5 | 259.6 | 794.1 | |||||
| Adjusting items: | ||||||||||
| Change in non-cash working capital | 2.6 | (127.5 | ) | 43.2 | 66.0 | (15.7 | ) | |||
| Cash sustaining capital expenditures1 | 106.4 | 111.9 | 86.4 | 107.2 | 411.9 | |||||
| Free cash flow | 102.3 | 225.0 | (16.1 | ) | 86.7 | 397.9 | ||||
| Cash sustaining capital expenditures1 | ||||||||||
| Total sustaining capital costs | 87.0 | 91.8 | 71.2 | 88.6 | 338.6 | |||||
| Capitalized lease and equipment financing cash payments – operating sites | 15.7 | 12.5 | 14.3 | 13.4 | 55.9 | |||||
| Community agreement cash payments | 3.7 | 7.6 | 0.9 | 5.2 | 17.4 | |||||
| Cash sustaining capital expenditures1 | 106.4 | 111.9 | 86.4 | 107.2 | 411.9 | |||||
| 1 Excludes amortization of decommissioning and restoration PP&E assets and accretion of decommissioning and restoration liabilities related to producing sites. | ||||||||||
| 2 LTM (last twelve months) as at March 31, 2026 | ||||||||||
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Copper Cash Cost Reconciliation
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| Consolidated | Three Months Ended | |||||
| Net pounds of copper produced1 | ||||||
| (in thousands) | Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | |||
| Peru | 45,356 | 55,199 | 44,738 | |||
| Manitoba | 5,589 | 7,333 | 7,648 | |||
| British Columbia | 10,628 | 10,373 | 15,864 | |||
| Net pounds of copper produced | 61,573 | 72,905 | 68,250 | |||
| 1 Contained copper in concentrate. | ||||||
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| Consolidated | Three Months Ended | |||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||||||||||
| Cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | ||||||
| Mining | 93.0 | 1.51 | 103.2 | 1.42 | 91.2 | 1.34 | ||||||
| Milling | 91.2 | 1.48 | 96.5 | 1.32 | 80.6 | 1.18 | ||||||
| G&A | 61.6 | 1.00 | 73.4 | 1.01 | 43.6 | 0.64 | ||||||
| Onsite costs | 245.8 | 3.99 | 273.1 | 3.75 | 215.4 | 3.16 | ||||||
| Treatment & refining | 3.1 | 0.05 | 5.8 | 0.08 | 14.0 | 0.21 | ||||||
| Freight & other | 22.6 | 0.37 | 25.1 | 0.34 | 24.3 | 0.35 | ||||||
| Cash cost, before by-product credits | 271.5 | 4.41 | 304.0 | 4.17 | 253.7 | 3.72 | ||||||
| By-product credits | (382.1 | ) | (6.21 | ) | (350.0 | ) | (4.80 | ) | (284.7 | ) | (4.17 | ) |
| Cash cost, net of by-product credits | (110.6 | ) | (1.80 | ) | (46.0 | ) | (0.63 | ) | (31.0 | ) | (0.45 | ) |
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| Consolidated | Three Months Ended | |||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||||||||||
| Supplementary cash cost information | $ millions | $/lb1 | $ millions | $/lb1 | $ millions | $/lb1 | ||||||
| By-product credits2: | ||||||||||||
| Zinc | 12.4 | 0.20 | 12.2 | 0.17 | 13.8 | 0.20 | ||||||
| Gold3 | 297.4 | 4.83 | 302.2 | 4.15 | 225.4 | 3.30 | ||||||
| Silver3 | 43.4 | 0.71 | 27.3 | 0.37 | 26.1 | 0.38 | ||||||
| Molybdenum & other | 28.9 | 0.47 | 8.3 | 0.11 | 19.4 | 0.29 | ||||||
| Total by-product credits | 382.1 | 6.21 | 350.0 | 4.80 | 284.7 | 4.17 | ||||||
| Reconciliation to IFRS: | ||||||||||||
| Cash cost, net of by-product credits | (110.6 | ) | (46.0 | ) | (31.0 | ) | ||||||
| By-product credits | 382.1 | 350.0 | 284.7 | |||||||||
| Treatment and refining charges | (3.1 | ) | (5.8 | ) | (14.0 | ) | ||||||
| Share-based compensation expense | 2.9 | 2.6 | 0.7 | |||||||||
| Inventory adjustments | — | 0.7 | 1.2 | |||||||||
| Change in product inventory | 13.0 | 4.3 | 12.0 | |||||||||
| Royalties and statutory contributions4 | 5.1 | 3.2 | 1.9 | |||||||||
| Overhead costs incurred during Peru temporary suspension (cash) | — | 1.3 | — | |||||||||
| Depreciation and amortization5 | 99.9 | 152.5 | 108.1 | |||||||||
| Cost of sales6 | 389.3 | 462.8 | 363.6 | |||||||||
| 1 Per pound of copper produced. | ||||||||||||
| 2 By-product credits are computed as revenue per consolidated financial statements, including amortization of deferred revenue and pricing and volume adjustments. | ||||||||||||
| 3 Gold and silver by-product credits do not include variable consideration adjustments with respect to stream arrangements. Variable consideration adjustments are cumulative adjustments to gold and silver stream deferred revenue primarily associated with the net change in mineral reserves and resources or amendments to the mine plan that would change the total expected deliverable ounces under the precious metal streaming arrangement. For the three months ended March 31, 2026 the variable consideration adjustments amounted to loss of $0.1 million (three months ended March 31, 2025 – gain of $9.9 million and December 31, 2025 – $nil). | ||||||||||||
| 4 Certain of the Company’s properties are subject to royalty arrangements based on mineral production at the properties. Royalties include net smelter return (“NSR”) royalty and price participation agreements. | ||||||||||||
| 5 Depreciation is based on concentrate sold. | ||||||||||||
| 6 As per the consolidated financial statements. | ||||||||||||
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| Peru | Three Months Ended | ||||
| (in thousands) | Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||
| Net pounds of copper produced1 | 45,356 | 55,199 | 44,738 | ||
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1 Contained copper in concentrate.
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| Peru | Three Months Ended | |||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||||||||||
| Cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | ||||||
| Mining | 34.5 | 0.76 | 37.6 | 0.68 | 31.0 | 0.69 | ||||||
| Milling | 43.4 | 0.96 | 52.0 | 0.94 | 44.4 | 0.99 | ||||||
| G&A | 33.2 | 0.73 | 47.8 | 0.87 | 22.5 | 0.51 | ||||||
| Onsite costs | 111.1 | 2.45 | 137.4 | 2.49 | 97.9 | 2.19 | ||||||
| Treatment & refining | (1.6 | ) | (0.04 | ) | 2.5 | 0.05 | 6.7 | 0.15 | ||||
| Freight & other | 14.1 | 0.31 | 17.3 | 0.31 | 15.2 | 0.34 | ||||||
| Cash cost, before by-product credits | 123.6 | 2.72 | 157.2 | 2.85 | 119.8 | 2.68 | ||||||
| By-product credits | (91.8 | ) | (2.02 | ) | (126.0 | ) | (2.28 | ) | (70.2 | ) | (1.57 | ) |
| Cash cost, net of by-product credits | 31.8 | 0.70 | 31.2 | 0.57 | 49.6 | 1.11 | ||||||
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| Peru | Three Months Ended | |||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||||||||||
| Supplementary cash cost information | $ millions | $/lb1 | $ millions | $/lb1 | $ millions | $/lb1 | ||||||
| By-product credits2: | ||||||||||||
| Gold3 | 44.9 | 0.99 | 104.7 | 1.90 | 35.0 | 0.78 | ||||||
| Silver3 | 22.9 | 0.50 | 13.2 | 0.24 | 15.6 | 0.35 | ||||||
| Molybdenum | 24.0 | 0.53 | 8.1 | 0.14 | 19.6 | 0.44 | ||||||
| Total by-product credits | 91.8 | 2.02 | 126.0 | 2.28 | 70.2 | 1.57 | ||||||
| Reconciliation to IFRS: | ||||||||||||
| Cash cost, net of by-product credits | 31.8 | 31.2 | 49.6 | |||||||||
| By-product credits | 91.8 | 126.0 | 70.2 | |||||||||
| Treatment and refining charges | 1.6 | (2.5 | ) | (6.7 | ) | |||||||
| Inventory adjustments | — | (0.2 | ) | 0.4 | ||||||||
| Share-based compensation expenses | 0.5 | 0.5 | 0.1 | |||||||||
| Change in product inventory | 7.6 | 15.6 | 13.8 | |||||||||
| Royalties and statutory contributions | 1.9 | 2.9 | 1.1 | |||||||||
| Overhead costs incurred during Peru temporary suspension (cash) | — | 1.3 | — | |||||||||
| Depreciation and amortization4 | 61.4 | 115.8 | 68.2 | |||||||||
| Cost of sales5 | 196.6 | 290.6 | 196.7 | |||||||||
| 1 Per pound of copper produced. | ||||||||||||
| 2 By-product credits are computed as revenue per consolidated financial statements, including amortization of deferred revenue and pricing and volume adjustments. | ||||||||||||
| 3 Gold and silver by-product credits do not include variable consideration adjustments with respect to stream arrangements. | ||||||||||||
| 4 Depreciation is based on concentrate sold. | ||||||||||||
| 5 As per the consolidated interim financial statements. | ||||||||||||
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| British Columbia | Three Months Ended | |||
| (in thousands) | Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | |
| Net pounds of copper produced1 | 10,628 | 10,373 | 15,864 | |
| 1Contained copper in concentrate. | ||||
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| British Columbia | Three Months Ended | |||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||||||||||
| Cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | ||||||
| Mining | 16.2 | 1.53 | 26.3 | 2.54 | 21.9 | 1.38 | ||||||
| Milling | 31.5 | 2.96 | 28.3 | 2.73 | 21.8 | 1.37 | ||||||
| G&A | 8.4 | 0.79 | 9.5 | 0.91 | 6.3 | 0.40 | ||||||
| Onsite costs | 56.1 | 5.28 | 64.1 | 6.18 | 50.0 | 3.15 | ||||||
| Treatment & refining | 2.1 | 0.20 | 1.3 | 0.12 | 3.6 | 0.23 | ||||||
| Freight & other | 2.8 | 0.26 | 2.7 | 0.26 | 3.4 | 0.21 | ||||||
| Cash cost, before by-product credits | 61.0 | 5.74 | 68.1 | 6.56 | 57.0 | 3.59 | ||||||
| By-product credits | (35.4 | ) | (3.33 | ) | (18.1 | ) | (1.74 | ) | (18.3 | ) | (1.15 | ) |
| Cash cost, net of by-product credits | 25.6 | 2.41 | 50.0 | 4.82 | 38.7 | 2.44 | ||||||
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| British Columbia | Three Months Ended | |||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||||||||||
| Supplementary cash cost information | $ millions | $/lb1 | $ millions | $/lb1 | $ millions | $/lb1 | ||||||
| By-product credits2: | ||||||||||||
| Gold | 30.6 | 2.88 | 14.9 | 1.43 | 16.1 | 1.01 | ||||||
| Silver | 4.8 | 0.45 | 3.2 | 0.31 | 2.2 | 0.14 | ||||||
| Total by-product credits | 35.4 | 3.33 | 18.1 | 1.74 | 18.3 | 1.15 | ||||||
| Reconciliation to IFRS: | ||||||||||||
| Cash cost, net of by-product credits | 25.6 | 50.0 | 38.7 | |||||||||
| By-product credits | 35.4 | 18.1 | 18.3 | |||||||||
| Treatment and refining charges | (2.1 | ) | (1.3 | ) | (3.6 | ) | ||||||
| Share-based compensation expenses | 0.6 | 0.7 | 0.3 | |||||||||
| Change in product inventory | 11.3 | (9.1 | ) | (0.8 | ) | |||||||
| Inventory adjustments | — | 0.1 | 0.8 | |||||||||
| Royalties | 3.2 | 0.3 | 0.8 | |||||||||
| Depreciation and amortization3 | 18.5 | 14.1 | 16.0 | |||||||||
| Cost of sales4 | 92.5 | 72.9 | 70.5 | |||||||||
| 1 Per pound of copper produced. | ||||||||||||
| 2 By-product credits are computed as revenue per consolidated financial statements, including amortization of deferred revenue and pricing and volume adjustments. | ||||||||||||
| 3 Depreciation is based on concentrate sold. | ||||||||||||
| 4 As per consolidated interim financial statements. | ||||||||||||
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Sustaining and All-in Sustaining Cash Cost Reconciliation
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| Consolidated | Three Months Ended | |||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||||||||||
| All-in sustaining cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | ||||||
| Cash cost, net of by-product credits | (110.6 | ) | (1.80 | ) | (46.0 | ) | (0.63 | ) | (31.0 | ) | (0.45 | ) |
| Cash sustaining capital expenditures | 105.8 | 1.72 | 111.2 | 1.53 | 78.2 | 1.14 | ||||||
| Royalties and statutory contributions | 5.1 | 0.08 | 3.2 | 0.04 | 1.9 | 0.03 | ||||||
| Sustaining cash cost, net of by-product credits | 0.3 | 0.00 | 68.4 | 0.94 | 49.1 | 0.72 | ||||||
| Corporate selling and administrative expenses & regional costs | 38.1 | 0.62 | 32.0 | 0.44 | 15.3 | 0.22 | ||||||
| Accretion and amortization of decommissioning and community agreements1 | 6.5 | 0.11 | 4.0 | 0.05 | 2.0 | 0.03 | ||||||
| All-in sustaining cash cost, net of by-product credits | 44.9 | 0.73 | 104.4 | 1.43 | 66.4 | 0.97 | ||||||
| Reconciliation to property, plant and equipment additions | ||||||||||||
| Property, plant and equipment additions | 109.5 | 140.9 | 68.2 | |||||||||
| Capitalized stripping and underground development, net additions | 73.0 | 43.9 | 41.3 | |||||||||
| Total accrued capital additions | 182.5 | 184.8 | 109.5 | |||||||||
| Less other non-sustaining capital costs2 | 95.5 | 93.0 | 47.0 | |||||||||
| Total sustaining capital costs | 87.0 | 91.8 | 62.5 | |||||||||
| Capitalized lease & equipment financing cash payments – operating sites | 15.7 | 12.5 | 12.8 | |||||||||
| LOM Community agreement cash payments | 0.6 | 4.4 | 0.8 | |||||||||
| Accretion and amortization of decommissioning and restoration obligations3 | 2.5 | 2.5 | 2.1 | |||||||||
| Cash sustaining capital expenditures | 105.8 | 111.2 | 78.2 | |||||||||
| 1 Includes accretion of decommissioning relating to non-productive sites, and accretion and amortization of community agreements capitalized to Other assets. | ||||||||||||
| 2 Other non-sustaining capital costs include Copper World capitalized costs, capitalized interest, capitalized exploration, right-of-use lease asset additions, equipment financing asset additions, growth capital expenditures and reclassification related to capital spares. | ||||||||||||
| 3 Includes amortization of decommissioning and restoration PP&E assets and accretion of decommissioning and restoration liabilities related to producing sites. | ||||||||||||
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| Peru | Three Months Ended | |||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||||||||||
| Sustaining cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | ||||||
| Cash cost, net of by-product credits | 31.8 | 0.70 | 31.2 | 0.57 | 49.6 | 1.11 | ||||||
| Cash sustaining capital expenditures | 31.3 | 0.69 | 50.3 | 0.91 | 35.3 | 0.79 | ||||||
| Royalties and statutory contributions | 1.9 | 0.04 | 2.9 | 0.05 | 1.1 | 0.02 | ||||||
| Sustaining cash cost per pound of copper produced | 65.0 | 1.43 | 84.4 | 1.53 | 86.0 | 1.92 | ||||||
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| British Columbia | Three Months Ended | ||||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | |||||||||||
| Sustaining cash cost per pound of copper produced | $ millions | $/lb | $ millions | $/lb | $ millions | $/lb | |||||||
| Cash cost, net of by-product credits | 25.6 | 2.41 | 50.0 | 4.82 | 38.7 | 2.44 | |||||||
| Cash sustaining capital expenditures | 54.2 | 5.10 | 41.7 | 4.02 | 27.8 | 1.75 | |||||||
| Royalties | 3.2 | 0.30 | 0.3 | 0.03 | 0.8 | 0.05 | |||||||
| Sustaining cash cost per pound of copper produced | 83.0 | 7.81 | 92.0 | 8.87 | 67.3 | 4.24 | |||||||
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Gold Cash Cost and Sustaining Cash Cost Reconciliation
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| Manitoba | Three Months Ended | ||
| (in thousands) | Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 |
| Net ounces of gold produced1 | 47,743 | 47,423 | 60,354 |
| 1Contained gold in concentrate and doré. | |||
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| Manitoba | Three Months Ended | |||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||||||||||
| Cash cost per ounce of gold produced | $millions | $/oz | $millions | $/oz | $millions | $/oz | ||||||
| Mining | 42.3 | 886 | 39.3 | 829 | 38.3 | 634 | ||||||
| Milling | 16.3 | 341 | 16.2 | 342 | 14.4 | 239 | ||||||
| G&A | 20.0 | 419 | 16.1 | 339 | 14.8 | 245 | ||||||
| Onsite costs | 78.6 | 1,646 | 71.6 | 1,510 | 67.5 | 1,118 | ||||||
| Treatment & refining | 2.6 | 55 | 2.0 | 42 | 3.7 | 61 | ||||||
| Freight & other | 5.7 | 119 | 5.1 | 108 | 5.7 | 95 | ||||||
| Cash cost, before by-product credits | 86.9 | 1,820 | 78.7 | 1,660 | 76.9 | 1,274 | ||||||
| By-product credits | (67.4 | ) | (1,412 | ) | (45.3 | ) | (955 | ) | (54.2 | ) | (898 | ) |
| Gold cash cost, net of by-product credits | 19.5 | 408 | 33.4 | 705 | 22.7 | 376 | ||||||
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| Manitoba | Three Months Ended | |||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | ||||||||||
| Supplementary cash cost information | $millions | $/oz1 | $millions | $/oz1 | $millions | $/oz1 | ||||||
| By-product credits2: | ||||||||||||
| Copper | 34.4 | 720 | 22.1 | 466 | 32.3 | 535 | ||||||
| Zinc | 12.4 | 260 | 12.2 | 257 | 13.8 | 228 | ||||||
| Silver | 15.7 | 329 | 10.8 | 228 | 8.3 | 138 | ||||||
| Other | 4.9 | 103 | 0.2 | 4 | (0.2 | ) | (3 | ) | ||||
| Total by-product credits | 67.4 | 1,412 | 45.3 | 955 | 54.2 | 898 | ||||||
| Reconciliation to IFRS: | ||||||||||||
| Cash cost, net of by-product credits | 19.5 | 33.4 | 22.7 | |||||||||
| By-product credits | 67.4 | 45.3 | 54.2 | |||||||||
| Treatment and refining charges | (2.6 | ) | (2.0 | ) | (3.7 | ) | ||||||
| Inventory adjustments | — | 0.8 | — | |||||||||
| Share-based compensation expenses | 1.8 | 1.4 | 0.3 | |||||||||
| Change in product inventory | (5.9 | ) | (2.2 | ) | (1.0 | ) | ||||||
| Depreciation and amortization3 | 20.0 | 22.6 | 23.9 | |||||||||
| Cost of sales4 | 100.2 | 99.3 | 96.4 | |||||||||
| 1 Per ounce of gold produced. | ||||||||||||
| 2 By-product credits are computed as revenue per consolidated financial statements, amortization of deferred revenue, pricing and volume adjustments. | ||||||||||||
| 3 Depreciation is based on concentrate sold. | ||||||||||||
| 4 As per consolidated interim financial statements. | ||||||||||||
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| Manitoba | Three Months Ended | ||||||||||||
| Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | |||||||||||
| Sustaining cash cost per pound of gold produced | $millions | $/oz | $millions | $/oz | $millions | $/oz | |||||||
| Gold cash cost, net of by-product credits | 19.5 | 408 | 33.4 | 705 | 22.7 | 376 | |||||||
| Cash sustaining capital expenditures | 20.3 | 425 | 19.2 | 405 | 15.1 | 250 | |||||||
| Sustaining cash cost per pound of gold produced | 39.8 | 833 | 52.6 | 1,110 | 37.8 | 626 | |||||||
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Combined Unit Cost Reconciliation
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| Peru | Three Months Ended | |||||
| (in millions except ore tonnes milled and unit cost per tonne) | ||||||
| Combined unit cost per tonne processed | Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | |||
| Mining | 34.5 | 37.6 | 31.0 | |||
| Milling | 43.4 | 52.0 | 44.4 | |||
| G&A1 | 33.2 | 47.8 | 22.5 | |||
| Other G&A2 | (16.3 | ) | (26.7 | ) | (7.9 | ) |
| Unit cost | 94.8 | 110.7 | 90.0 | |||
| Tonnes ore milled | 8,164 | 7,628 | 8,114 | |||
| Combined unit cost per tonne | 11.61 | 14.51 | 11.09 | |||
| Reconciliation to IFRS: | ||||||
| Unit cost | 94.8 | 110.7 | 90.0 | |||
| Freight & other | 14.1 | 17.3 | 15.2 | |||
| Inventory adjustments | — | (0.2 | ) | 0.4 | ||
| Other G&A | 16.3 | 26.7 | 7.9 | |||
| Share-based compensation expenses | 0.5 | 0.5 | 0.1 | |||
| Change in product inventory | 7.6 | 15.6 | 13.8 | |||
| Royalties and statutory contributions | 1.9 | 2.9 | 1.1 | |||
| Overhead costs incurred during Peru temporary suspension (cash) | — | 1.3 | — | |||
| Depreciation and amortization | 61.4 | 115.8 | 68.2 | |||
| Cost of sales3 | 196.6 | 290.6 | 196.7 | |||
| 1 G&A as per cash cost reconciliation above. | ||||||
| 2 Other G&A primarily includes profit sharing costs. | ||||||
| 3 As per consolidated interim financial statements. | ||||||
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| British Columbia | Three Months Ended | |||||
| (in millions except tonnes ore milled and unit cost per tonne) | ||||||
| Combined unit cost per tonne processed | Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | |||
| Mining | 16.2 | 26.3 | 21.9 | |||
| Milling | 31.5 | 28.3 | 21.8 | |||
| G&A1 | 8.4 | 9.5 | 6.3 | |||
| Unit cost | 56.1 | 64.1 | 50.0 | |||
| USD/CAD implicit exchange rate | 1.38 | 1.41 | 1.43 | |||
| Unit cost – C$ | 77.7 | 90.3 | 71.7 | |||
| Tonnes ore milled | 3,078 | 2,268 | 2,761 | |||
| Combined unit cost per tonne – C$ | 25.23 | 39.80 | 25.98 | |||
| Reconciliation to IFRS: | ||||||
| Unit cost | 56.1 | 64.1 | 50.0 | |||
| Freight & other | 2.8 | 2.7 | 3.4 | |||
| Share-based compensation expenses | 0.6 | 0.7 | 0.3 | |||
| Change in product inventory | 11.3 | (9.1 | ) | (0.8 | ) | |
| Inventory adjustments | — | 0.1 | 0.8 | |||
| Royalties | 3.2 | 0.3 | 0.8 | |||
| Depreciation and amortization | 18.5 | 14.1 | 16.0 | |||
| Cost of sales2 | 92.5 | 72.9 | 70.5 | |||
| 1 G&A as per cash cost reconciliation above | ||||||
| 2 As per consolidated interim financial statements. | ||||||
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| Manitoba | Three Months Ended | |||||
| (in millions except ore tonnes milled and unit cost per tonne) | ||||||
| Combined unit cost per tonne processed | Mar. 31, 2026 | Dec. 31, 2025 | Mar. 31, 2025 | |||
| Mining | 42.3 | 39.3 | 38.3 | |||
| Milling | 16.3 | 16.2 | 14.4 | |||
| G&A1 | 20.0 | 16.1 | 14.8 | |||
| Less: Other G&A related to profit sharing costs | (11.9 | ) | (9.4 | ) | (7.2 | ) |
| Unit cost | 66.7 | 62.2 | 60.3 | |||
| USD/CAD implicit exchange rate | 1.37 | 1.39 | 1.43 | |||
| Unit cost – C$ | 91.5 | 86.7 | 86.5 | |||
| Tonnes ore milled | 360,384 | 349,082 | 404,410 | |||
| Combined unit cost per tonne2 – C$ | 254 | 248 | 214 | |||
| Reconciliation to IFRS: | ||||||
| Unit cost | 66.7 | 62.2 | 60.3 | |||
| Freight & other | 5.7 | 5.1 | 5.7 | |||
| Other G&A related to profit sharing | 11.9 | 9.4 | 7.2 | |||
| Share-based compensation expenses | 1.8 | 1.4 | 0.3 | |||
| Inventory adjustments | — | 0.8 | — | |||
| Change in product inventory | (5.9 | ) | (2.2 | ) | (1.0 | ) |
| Depreciation and amortization | 20.0 | 22.6 | 23.9 | |||
| Cost of sales2 | 100.2 | 99.3 | 96.4 | |||
| 1 G&A as per cash cost reconciliation above. | ||||||
| 2 As per consolidated interim financial statements. | ||||||
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Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “budget”, “guidance”, “scheduled”, “estimates”, “forecasts”, “strategy”, “target”, “intends”, “objective”, “goal”, “understands”, “anticipates” and “believes” (and variations of these or similar words) and statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” “occur” or “be achieved” or “will be taken” (and variations of these or similar expressions). All of the forward-looking information in this news release is qualified by this cautionary note.
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Forward-looking information includes, but is not limited to, statements with respect to Hudbay’s production, cost and capital and exploration expenditure guidance, Hudbay’s ability to advance and complete the multi-year optimization of the Copper Mountain mine in British Columbia, including with respect to the primary SAG mill repairs and related ramp-up plans, the implementation of stripping strategies and the expected benefits therefrom, the expected timing and benefits of British Columbia growth initiatives, including with respect to the development timelines associated with New Ingerbelle and any challenges to the New Ingerbelle permits (including LSIB’s recent application for judicial review), the estimated timelines and pre-requisites for sanctioning the Copper World project, including the completion and anticipated results of the DFS and the potential timing of a project sanctioning decision, expectations regarding the sanctioning of the Copper World project, expectations regarding the potential impact of recent policy decisions from the United States government, the benefits, timing and consummation of the definitive agreement with Wheaton Precious Metals Corp. (“Wheaton”) in respect of the enhanced precious metals stream at Copper World, the expected benefits of Manitoba growth initiatives, including the use of the exploration drift at the 1901 deposit and the potential utilization of excess capacity at the Stall mill, the ability for Hudbay to complete mill throughput enhancements at its operating business units in Peru, British Columbia and Manitoba, Hudbay’s future deleveraging strategies and Hudbay’s ability to deleverage and repay debt as needed, expectations with respect to the timing and the ability to satisfy the conditions required to close the proposed acquisition of ASCU and the expected benefits therefrom, expectations regarding Hudbay’s cash balance and liquidity and related cash management strategies, expectations regarding Hudbay’s capital planning strategies, including but not limited to Hudbay’s enhanced Capital Allocation Framework, the ability to obtain TSX approval for the renewal of the NCIB and statements regarding any potential Share purchases under the NCIB, including number of Shares to be repurchased and the timing thereof, expectations regarding tax synergies, expectations regarding the ability to conduct exploration work and execute on exploration programs on its properties and to advance related drill plans, expectations regarding the prospective nature of the Maria Reyna and Caballito properties and the status of the related drill permit application process, Hudbay’s evaluation and assessment of opportunities to reprocess tailings using various metallurgical technologies, the anticipated impact of brownfield and greenfield growth projects on Hudbay’s performance, anticipated exploration and expansion opportunities and extension of mine life in Snow Lake and Hudbay’s ability to find a new anchor deposit near Hudbay’s Snow Lake operations, anticipated future drill programs and exploration activities and any results expected therefrom, the enhancement of stakeholder engagement and advancement of a pre-feasibility study and related test work at the Mason copper project in Nevada, anticipated mine plans, anticipated metals prices and the anticipated sensitivity of Hudbay’s financial performance to metals prices, events that may affect Hudbay’s operations and development projects, anticipated cash flows from operations and related liquidity requirements, the ability to successfully obtain proceeds from insurance claims, the ability to achieve Hudbay’s climate change goals and initiatives, the anticipated effect of external factors on revenue, such as commodity prices, estimation of mineral reserves and resources, mine life projections, reclamation costs, economic outlook, government regulation of mining operations, and business and acquisition strategies. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Hudbay at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information.
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The material factors or assumptions that Hudbay has identified and were applied in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to:
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- the ability to achieve production, cost and capital and exploration expenditure guidance;
- no significant interruptions to Hudbay’s operations due to social or political unrest in the regions Hudbay operates, including the navigation of the complex political and social environment in Peru and the resolution of grievances raised by local communities and their residents;
- the ability to consummate the definitive agreement with Wheaton in respect of the enhanced precious metals stream at Copper World;
- no interruptions to Hudbay’s plans for advancing the Copper World project, including with respect to any successful challenges to the Copper World permits;
- no interruptions to Hudbay’s plans for advancing New Ingerbelle, including with respect to any challenges to the New Ingerbelle permits;
- Hudbay’s ability to successfully advance and complete the optimization of the Copper Mountain operations, and develop and maintain good relations with key stakeholders;
- the ability to satisfy the conditions required to close the proposed acquisition of ASCU;
- the ability to execute on its exploration plans and to advance related drill plans;
- the ability to advance the exploration program at the Maria Reyna and Caballito properties;
- the success of mining, processing, exploration and development activities;
- the scheduled maintenance and availability of Hudbay’s processing facilities;
- the accuracy of geological, mining and metallurgical estimates;
- anticipated metals prices and the costs of production;
- the supply and demand for metals Hudbay produces;
- the supply and availability of all forms of energy and fuels at reasonable prices;
- no significant unanticipated operational or technical difficulties;
- no significant interruptions to operations due to adverse effects from extreme weather events, including forest fires that have affected and may continue to affect the regions in which Hudbay operates;
- the execution of Hudbay’s business and growth strategies, including the success of its strategic investments and initiatives;
- the availability of additional financing, if needed;
- the ability to deleverage and repay debt, as needed;
- the ability to complete project targets on time and on budget and other events that may affect Hudbay’s ability to develop Hudbay’s projects;
- the timing and receipt of various regulatory and governmental approvals;
- the availability of personnel for Hudbay’s exploration, development and operational projects and ongoing employee relations;
- maintaining good relations with the employees at Hudbay’s operations;
- maintaining good relations with the labour unions that represent certain of Hudbay employees in Manitoba and Peru;
- maintaining good relations with the communities in which Hudbay operates, including the neighbouring Indigenous communities and local governments;
- no significant unanticipated challenges with stakeholders at Hudbay’s various projects;
- no significant unanticipated events or changes relating to regulatory, environmental, health and safety matters;
- no contests over title to Hudbay’s properties, including as a result of rights or claimed rights of Indigenous peoples or challenges to the validity of Hudbay’s unpatented mining claims;
- the timing and possible outcome of pending litigation and no significant unanticipated litigation;
- certain tax matters, including, but not limited to current tax laws and regulations, changes in taxation policies and the refund of certain value added taxes from the Canadian and Peruvian governments; and
- no significant and continuing adverse changes in general economic conditions or conditions in the financial markets (including commodity prices and foreign exchange rates).
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The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks related to the failure to effectively advance and complete the optimization of the Copper Mountain mine operations including with respect to the primary SAG mill repairs and related ramp-up plans, political and social risks in the regions Hudbay operates, including the complex political and social environment in Peru and potential disruptions to operations arising from community protests and grievances, risks generally associated with the mining industry and the current geopolitical environment, including future commodity prices, the potential implementation or expansion of tariffs, currency and interest rate fluctuations, energy and consumable prices, supply chain constraints and general cost escalation in the current inflationary environment, uncertainties related to the development and operation of Hudbay’s projects, the risk of an indicator of impairment or impairment reversal relating to a material mineral property, risks associated with the development of new projects, risks associated with acquisitions, investments and other strategic transactions including but not limited to the proposed acquisition of ASCU, risks related to the Copper World project, including the risk of capital cost escalation, permitting challenges, project delivery risks and financing risks, risks related to the Lalor mine plan, including the ability to convert inferred mineral resource estimates to higher confidence categories, dependence on key personnel and employee and union relations, risks related to political or social instability, unrest or change, risks in respect of Indigenous and community relations, rights and title claims, operational risks and hazards, including the cost of maintaining and upgrading Hudbay’s tailings management facilities and any unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks (including any unanticipated significant interruptions to operations due to adverse effects from extreme weather events), failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, depletion of Hudbay’s reserves, volatile financial markets and interest rates that may affect Hudbay’s ability to obtain additional financing on acceptable terms, the failure to obtain required approvals or clearances from government authorities on a timely basis, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources, and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, Hudbay’s ability to comply with Hudbay’s pension and other post-retirement obligations, Hudbay’s ability to abide by the covenants in Hudbay’s debt instruments and other material contracts, tax refunds, hedging transactions, cybersecurity risks and risks related to the reliability and security of Hudbay’s information technology and operational technology systems, including risks arising from cyber-attacks, ransomware, phishing and other malware, risks associated with the use of artificial intelligence technologies, as well as the risks discussed under the heading “Risk Factors” in Hudbay’s most recent Annual Information Form which is available on the Company’s SEDAR+ profile at www.sedarplus.ca and the Company’s EDGAR profile at www.sec.gov.
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Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, you should not place undue reliance on forward-looking information. Hudbay does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.
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Note to United States Investors
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This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which may differ materially from the requirements of United States securities laws applicable to U.S. issuers.
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About Hudbay
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Hudbay (TSX, NYSE: HBM) is a copper-focused critical minerals mining company with three long-life operations and a world-class pipeline of copper growth projects in tier-one mining jurisdictions of Canada, Peru and the United States.
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Hudbay’s operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Copper is the primary metal produced by the Company, which is complemented by meaningful gold production and by-product zinc, silver and molybdenum. Hudbay’s growth pipeline includes the Copper World project in Arizona (United States), the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru) and several expansion and exploration opportunities near its existing operations.
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The value Hudbay creates and the impact it has is embodied in its purpose statement: “We care about our people, our communities and our planet. Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures for communities.” Hudbay’s mission is to create sustainable value and strong returns by leveraging its core strengths in community relations, focused exploration, mine development and efficient operations.
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For further information, please contact:
Candace Brûlé
Senior Vice President, Capital Markets & Corporate Affairs
(416) 362-8181
[email protected]
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i Adjusted net earnings – attributable to owners and adjusted net earnings per share – attributable to owners, adjusted EBITDA, cash cost, sustaining cash cost, all-in sustaining cash cost per pound of copper produced, net of by-product credits, cash cost, sustaining cash cost per ounce of gold produced, net of by-product credits, combined unit cost, net debt, net debt to adjusted EBITDA ratio and free cash flow are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the “Non-GAAP Financial Performance Measures” section of this news release.
ii Liquidity includes $1,003.8 million in cash and cash equivalents as well as undrawn total availability of $425.2 million under Hudbay’s revolving credit facilities.
iii Calculated using the midpoint of the guidance range.
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English (US)