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- **Resilient Q3 Performance**: Maintained production guidance despite wildfires and social unrest, with adjusted EBITDA of $143 million.
- **Copper World Breakthrough**: Mitsubishi's $600 million investment slashes Hudbay's capital contribution to $200 million, boosting IRR to 90%.
- **Operational Excellence**: Peru gold production exceeds guidance; Manitoba resumes post-wildfires with 92% gold recovery; British Columbia SAG-2 project on track for 2026 ramp-up.
- **Debt Reduction**: Total debt reduced by $330 million since 2024, net debt-to-EBITDA ratio of 0.5x.
- **Growth Pipeline**: Copper World to increase copper production by over 50%, with first production in 2029.

**【CEO Opening Remarks】**
Hudbay demonstrated resilience in Q3 2025, maintaining production guidance despite wildfires in Manitoba and social unrest in Peru. The company secured Mitsubishi as a 30% joint venture partner for the Copper World project, reducing Hudbay's capital contribution to $200 million and enhancing the project's IRR to 90%. Adjusted EBITDA was $143 million, with cash flows of $114 million, supporting debt reduction to $1 billion.

**【Operational Highlights】**
- **Peru**: Produced 18,000 tons of copper and 26,000 ounces of gold, with gold production exceeding guidance due to high-grade ore from Pampakancha. Social unrest caused a nine-day shutdown but operations resumed in October with strong performance.
- **Manitoba**: Resumed operations post-wildfires, producing 22,000 ounces of gold. Gold recoveries reached 92% at New Britannia, but production was deferred by a week due to October power outages. Full-year gold production expected near the low end of guidance.
- **British Columbia**: Copper production was 5,200 tons, impacted by SAG-1 mill repairs and lower-grade stockpiles. SAG-2 project progress allowed 50,000 tons/day throughput in September, with full ramp-up expected by mid-2026.

**【Financial Performance】**
- Adjusted EBITDA: $143 million (Q3 2025)
- Cash generated from operations: $114 million
- Debt reduction: $330 million since 2024, net debt-to-EBITDA ratio of 0.5x
- Capital expenditures deferred: $35 million (sustaining: $15M, growth: $20M)

**【Copper World Project】**
Mitsubishi's $600 million investment (closing in late 2025/early 2026) will fund feasibility studies and pre-sanction costs. Hudbay expects Copper World to increase annual copper production by over 50%, targeting first production in 2029.

**【Q&A Highlights】**
- **Copper Mountain**: SAG-1 repairs delayed Q3 throughput, but SAG-2 project progress offset losses. 2026 production expected to meet guidance with 50,000 tons/day throughput by mid-2026.
- **Capital Allocation**: $100 million of $150 million pre-sanction spending for Copper World in 2025, with $50 million in 2026. Sustaining CapEx in 2026 expected to align with 2025 levels, excluding deferred projects.
- **Peru Risks**: Stable bureaucracy supports operations, but social unrest remains a challenge. Hudbay maintains strong community engagement to mitigate risks.


Hudbay Minerals Inc (HBM) Q3 2025 Earnings Call Transcript

Revenue

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HBM

HBM fundamentals

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