Hudbay Minerals' Q1 2025: Navigating Contradictions in Production, Costs, and Project Timelines

Peru production and cost performance, Copper World project timeline and development strategy, cost performance and optimization strategy in Manitoba, pebble rejection and throughput sustainability, permitting process and advancement for Copper World are the key contradictions discussed in Hudbay Minerals' latest 2025Q1 earnings call.



Strong Financial Performance and Cost Management:
- Hudbay Minerals reported adjusted EBITDA of $287 million, reflecting a 12% increase from the previous quarter, and a 73% year-on-year increase.
- This performance was driven by industry-leading cost control, with record low consolidated cash costs of -$0.45 per pound and sustaining cash costs of $0.72 per pound, due to higher byproduct credits and strong operational cost performance across all business units.

Copper and Gold Production:
- Consolidated copper production was steady at 31,000 tonnes, while gold production exceeded expectations at 74,000 ounces.
- The increase in gold production was primarily due to higher grades and improved mining techniques at their Manitoba operations.

Operational Efficiency and Cost Reduction:
- Manitoba operations achieved a 38% reduction in gold cash costs to $376 per ounce, due to increased gold production, lower mining and milling costs, and favorable exchange rates.
- In British Columbia, cash costs improved to $2.44 per pound, driven by higher byproduct credits and ongoing optimization efforts.

Growth and Expansion Strategy:
- Hudbay consolidated ownership at Copper Mountain, increasing exposure to a high-quality Tier-1 asset, and is fully permitted at Copper World, which will increase long-term copper production by more than 50%.
- Advancements in exploration and permitting efforts, including the acquisition of Mitsubishi Materials' minority interest and progress on exploration agreements, are positioning Hudbay for future growth.