Hudbay posts record quarterly earnings amid high prices, low cost production

Driven by steady operating performance, expanded margins from strong copper and gold exposure, as well as a focus on cost control across the business, Hudbay generated revenue of $757-million, adjusted Ebitda of $421-million and attributable earnings of $159-million in the quarter.

First quarter net earnings attributable to owners and earnings per share attributable to owners were $190-million and $0.48 apiece, respectively.

The group produced 27 929 t of copper and 61 700 oz of gold, respectively, in the quarter under review, in line with expectations.

Hudbay continues to operate at an industry-leading low consolidated cash cost of $1.80.

The company is on track to meet its full-year guidance of between 110 000 and 138 000 t of copper and between 217 000 and 272 000 oz of gold, at a consolidated cash cost of between $0.10 and $0.30 per pound of copper.

Hudbay had $1-billion of cash on hand and total liquidity of $1.4-billion at the end of March, while net debt decreased by $434-million to $5.6-million.

The company’s unique copper and gold diversification across its operations provides exposure to higher copper and gold prices, which, together with a focus on cash control, continues to expand margins and generate attractive free cash flow.

While the majority of Hudbay’s revenue is derived from copper production, revenue from gold production represents a meaningful portion of total revenues. Gold revenues comprised 39% of the group’s revenue in the first quarter of the year.

OPERATIONS

Hudbay’s Peru operations produced 20 573 t of copper and 8 770 oz of gold in the first quarter of the year, in line with quarterly cadence expectations after the depletion of Pampacancha at the end of 2025, offset by record mill throughput during the first quarter.

Peru cash costs, net of by-product credits, of $0.70 was better than expected as the Peru operations demonstrated strong cost control and benefitted from higher by-product prices.

The group’s Manitoba operations produced 47 743 oz of gold, 2 535 t of copper, 4 565 t of zinc and 213 208 oz of silver in thequarter, in line with quarterly cadence expectations.

Manitoba cash costs of $408/oz outperformed the low end of the 2026 yearly guidance range of between $500/oz to $800/oz as a result of higher by-product prices.

Hudbay’s British Columbia operations produced 4 821 t of copper, 5 187 oz of gold and 43 042 oz of silver in the reporting quarter, in line with quarterly cadence expectations.

British Columbia cash costs of $2.41/lb of copper was within the 2026 cost guidance range of between $1.50/lb to $2.50/lb.