Hudbay Minerals, Inc. Q1 FY2025 earnings call

• Strong performance in Q1 2025 demonstrated benefits of copper and gold diversification, enhanced operating platform, and cost control.
• Consolidated copper production 31,000 tonnes (in-line with expectations), gold production 74,000 ounces (exceeding expectations).
• Industry-leading cost performance: consolidated cash costs negative $0.45 per pound, sustaining cash costs $0.72 per pound.
• Progressed growth strategy: consolidated ownership at Copper Mountain, fully permitted at Copper World.
• Peru: Constancia mill avg throughput ~90,000 tonnes/day, on track for 2025 production guidance; advancing pebble crusher engineering studies.
• Manitoba: Impressive gold production and cost performance; ore quality improved at Lalor, upgrades at mills.
• British Columbia: Ongoing optimization efforts, on track for 2025 production guidance; acquired 100% interest in Copper Mountain.

Peru: Consolidated copper production was 31,000 tonnes, in-line with expectations. Gold production was 74,000 ounces, exceeding expectations. Cash costs were $1.11 per pound. Manitoba: Produced 60,000 ounces of gold, 3,500 tonnes of copper, 6,300 tonnes of zinc, and 286,000 ounces of silver. Gold cash costs were $376 per ounce. British Columbia: Produced 7,000 tonnes of copper, 5,600 ounces of gold, and approximately 80,000 ounces of silver. Cash costs were $2.44 per pound.

• Well positioned to deliver full-year 2025 consolidated production and cost guidance.
• Peru: Annual production expected to average ~88,000 tonnes copper and 31,000 ounces gold over 3 years.
• Manitoba: Snow Lake annual gold production expected to average >193,000 ounces over 3 years.
• British Columbia: Annual production expected to average ~44,000 tonnes copper and 28,600 ounces gold over 3 years; 2027 copper production expected 60,000 tonnes (127% increase from 2024).
• Copper World: Once in production, expected to increase long-term copper production by >50%.

• Regulatory risks related to permitting processes for projects like Maria Reyna, Caballito, and Copper Mountain's new anchor belt.
• Market price fluctuations affecting copper and gold prices, which impact revenues and cash flows.
• Operational challenges such as ore hardness affecting throughput in Peru.

Q: About Peru and Constancia, sustainability of 90,000 tonnes/day throughput and ore hardness?

A: Eugene Lei and Andre Lauzon discussed pebble rejection strategy, ability to reject ~1.5 million tonnes of pebbles annually, which helps with throughput and grade.

Q: On Manitoba cost performance, specifically Stall mill costs down $10/tonne quarter-over-quarter?

A: Peter Kukielski and Andre Lauzon mentioned operational improvements at Lalor reducing mining dilution and maximizing ore recovery, combined with identification of additional high grade gold resources.

Q: On Copper World JV process and Maria Reyna/Caballito permits?

A: Peter Kukielski stated JV process for Copper World progressing well, interest strong; for Maria Reyna and Caballito, permitting process is government-run, expected to be completed this year but disciplined.

Q: On buyback program and capital allocation?

A: Eugene Lei explained NCIB filing allows consideration of share buybacks as part of balanced capital allocation strategy, reflecting company maturing and ability to evaluate risk-adjusted returns.

Q: On Copper Mountain's new anchor belt permitting?

A: Andre Lauzon stated permitting process going well, through concordance review, expecting positive result by end of 2025 or early 2026 with production coming within couple years.