Hudbay Minerals Inc. Q1 FY2026 earnings call

• Had a great start to the year, achieving key operational, financial, and growth milestones. Delivered record revenue, adjusted EBITDA, and adjusted earnings in Q1. • Leading operating cost performance led to record low consolidated cash costs and strong free cash flow generation. • Peru operations: Steady operating performance, on track to achieve 2026 production guidance. Constantia was recognized as the safest open pit operation in Peru. • Manitoba operations: Demonstrated strong operational agility, prioritized gold ore feed for the new Britannia mill. • British Columbia operations: Advanced multi-year optimization plans, achieved milestones in mining productivity and project permitting. New Ingabel project received permits and is a priority resource project. • Announced annual mineral reserve and resource update, extended mine lives, and improved three-year production outlook.

Peru operations: Produced 21,000 tons of copper, 9,000 ounces of gold, 530,000 ounces of silver, and 380 tons of molybdenum in the first quarter. First quarter cash costs in Peru were 70 cents per pound of copper, a 23% increase compared to the fourth quarter. Manitoba operations: Produced 48,000 ounces of gold, 2,500 tons of copper, 5,000 tons of zinc, and 213,000 ounces of silver in the quarter. British Columbia operations: Produced 4.8 thousand tons of copper, 52,000 ounces of gold, and 43,000 ounces of silver in the first quarter. British Columbia cash costs were $2.41 per pound of copper. Revenue from gold represents 39% of gross revenues in the first quarter.

• All operations on track to achieve 2026 production and cost guidance. • Copper World's DFS progressing above 85% completion at end of March and on track for mid-2026 completion. • Acquisition of Arizona Sonoran expected to close in Q2 2026. • Pre-feasibility study at Mason copper project in Nevada expected to be completed in 2027.

• Legal review of LSIB on New Ingabel permit amendment could potentially affect timeline. • Emerging external cost pressures such as higher fuel prices pose risks to cost control. • Uncertainties related to regulatory processes and potential delays in permitting for growth projects.

Q: Just wondering, have you set a goal for how much of the revised budget by the time sanctioning does come will, say, be locked in, contracted, and committed?

A: We will lock in pricing on all equipment between DFS and FID. Already placed orders and been preparing for FID well over a year in advance.

Q: On the LSIB judicial review, are you needing to have a legal strategy around this to preserve the 2028 timeline for New Inger Bell?

A: Remain confident in regulatory process, believe court will uphold decision, and will work constructively with LSIB to resolve concerns.

Q: On the CapEx at Copperworld, how much can you lock up in the next sort of 12 months or so in terms of dollars?

A: Still working on final estimate and DFS, fleet pricing is in line with estimates, project is low capital intensity with good economic case.

Q: When will we get an updated PFS with HUD-based sort of overlaid view and respective post-transaction closing at Cactus?

A: Updated PFS for Cactus will be in next year, not year-end, permitting is progressing.

Q: Any color on input cost pressures or supply constraints?

A: Fairly insulated by gold byproduct, Manitoba largely insulated from oil price effects.

Q: Switching gears to kind of the growth profile, how you're thinking about the sequencing between Cactus and potentially Copper World Phase 2?

A: Progress Cactus in sequence with Copper World, with synergies, and phase two would come after Cactus.

Q: Any color on labor balance at Lawler?

A: Team is working on bringing in more people, working on contracts with mining contractor to address labor challenges.

Q: About capital return, can we consider the probability that HUD-BAE might be more active in the buyback in 26?

A: Look at capital allocation holistically, not committing to set dollar amount for buybacks currently, focus on funding growth and reducing debt.

Q: Just following on the discussion with respect to sequencing in Arizona, do you feel comfortable giving like a date in terms of production start?

A: CopperWorld targeted start mid-2029, Cactus sequencing depends on PFS update and metal prices, phase two permits applied quickly after phase one is up.