Copper Mountain is located approximately 20 kilometres south of Princeton, British Columbia. Credit: Hudbay Hudbay Minerals (TSX, NYSE: HBM) has secured permission from the British Columbia government to proceed with a three-phased expansion of its Copper Mountain mine that would extend the operation into 2040.In a statement issued on Feb. 20, Hudbay said it has secured amended environmental permits issued by the BC Major Mines Office for the New Ingerbelle expansion project at Copper Mountain, one of the l ...

Group 1 - Hudbay Minerals (HBM) was previously trading at $17.15, indicating a deep value territory, but is now perceived as a growth at a reasonable price story [1] - The investment strategy focuses on identifying high-upside opportunities in overlooked sectors, particularly small-caps, energy, commodities, and special situations [1] - The analysis incorporates fundamental momentum indicators such as EPS, ROE, and revenue, along with price-volume confirmation and macroeconomic filters [1] Group 2 - The analyst has been managing personal capital since 2020 and has been advising under MiFID II after obtaining a license [1] - The educational background includes a bachelor's degree in Business Administration and Economics, with a master's thesis focused on the impact of financial results announcements on stock returns and trading volumes of micro-cap gold mining companies [1]

INVESTOR PRESENTATION FEBRUARY 2026 Cautionary Information This presentation contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this presentation, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "guidance", "scheduled", "estimates", "forecasts", "s ...

Financial Data and Key Metrics Changes - Hudbay achieved record annual revenues exceeding $2 billion, record adjusted EBITDA over $1 billion, and record free cash flow generation of more than $380 million in 2025 [5][6] - Fourth quarter revenues reached $733 million with adjusted EBITDA of $386 million, reflecting strong gross margins due to higher metal prices and business interruption insurance proceeds [7][8] - Net earnings for the fourth quarter were $128 million, or 32 cents per share, with adjusted earnings of 22 cents per share after accounting for insurance proceeds [8][10] Business Line Data and Key Metrics Changes - Copper production guidance was met for the eleventh consecutive year, with 33,000 tons produced in the fourth quarter, while gold production guidance was achieved for the fifth consecutive year with 84,000 ounces produced [5][31] - In Peru, operations produced 25,000 tons of copper and 33,000 ounces of gold in the fourth quarter, with significant increases in production compared to the third quarter [12][13] - Manitoba operations produced 47,000 ounces of gold, 3,000 tons of copper, and 6,000 tons of zinc in the fourth quarter, despite challenges from wildfires and power outages [17][19] Market Data and Key Metrics Changes - The company reported a significant increase in cash flow before changes in non-cash working capital to $337 million in the fourth quarter, reflecting higher sales volumes and metal prices [9] - Total liquidity at the end of the quarter was $994 million, including $569 million in cash and cash equivalents, with a net debt to EBITDA ratio improving to 0.4 times [10][11] Company Strategy and Development Direction - Hudbay secured a joint venture with Mitsubishi for the Copper World project, enhancing financial strength and reducing future equity contributions [6][28] - The company plans to sanction the Copper World project in 2026 and invest in high-return brownfield and greenfield opportunities to drive production growth [30][45] - A new quarterly dividend of $0.01 per share was introduced, marking a 100% increase over the previous semi-annual dividend [28][29] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the diversified operating platform, achieving production guidance despite challenges such as wildfires and social unrest [5][6] - The outlook for 2026 includes a projected 5% increase in consolidated copper production and a 9% decrease in gold production due to the depletion of Pampacancha [31][32] - The company expects to maintain strong financial discipline and continue reducing total debt while exploring capital redeployment opportunities [30][34] Other Important Information - The company is advancing the installation of pebble crushers in Peru to enhance mill throughput starting in the second half of 2026 [16] - Hudbay's operations in British Columbia are focused on ramping up mining activities and implementing standardized practices to improve efficiency [19][20] Q&A Session Summary Question: Capital allocation framework in volatile markets - Management emphasized the importance of the new capital allocation framework to balance growth opportunities and returns, especially in the current volatile market [51][52] Question: SAG rehabilitation work in British Columbia - Management provided details on the planned replacement of the SAG mill feed head, indicating a project period of several weeks with expected stabilization of operations [55][56] Question: Production guidance and technical report for Manitoba - Management clarified that the updated three-year production guidance would not include new drilling and that a technical report for Manitoba is not yet determined [62][63]

Financial Data and Key Metrics Changes - Hudbay achieved record annual revenues exceeding $2 billion, record Adjusted EBITDA over $1 billion, and record free cash flow generation of more than $380 million in 2025 [5][6] - Fourth quarter revenues reached $733 million, with Adjusted EBITDA of $386 million, and net earnings of $128 million, or 32 cents per share [7][8] - Consolidated cash costs were -63 cents per pound, with sustaining cash costs at 94 cents per pound, showing significant improvement compared to the previous quarter [8][10] Business Line Data and Key Metrics Changes - Copper production for the fourth quarter was 33,000 tons, while gold production was 84,000 ounces, despite operational challenges [7][12] - In Peru, copper production increased by 38% and gold production by 25% compared to the third quarter, driven by high-grade Pampacancha ore [12][13] - Manitoba operations produced 47,000 ounces of gold and 3,000 tons of copper in the fourth quarter, with a focus on stabilizing production post-wildfires [17][19] Market Data and Key Metrics Changes - Revenue from gold represented 41% of total revenues in the fourth quarter, indicating a growing contribution from gold sales [9] - The company reported total liquidity of $994 million, including $569 million in cash and cash equivalents, and a net debt to EBITDA ratio improved to 0.4 times [10][11] Company Strategy and Development Direction - Hudbay secured a joint venture with Mitsubishi for the Copper World project, enhancing financial strength and reducing future equity contributions [6][25] - The company plans to sanction the Copper World project in 2026 and invest in high-return brownfield and greenfield opportunities [29][30] - A new quarterly dividend of $0.01 per share was introduced, marking a 100% increase over the previous semi-annual dividend [28] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the diversified operating platform, achieving production guidance despite challenges like wildfires and social unrest [5][6] - The outlook for 2026 includes a 5% increase in consolidated copper production and a 9% decrease in gold production due to the depletion of Pampacancha [31][32] - The company expects to maintain historically low cash costs and strong margins, benefiting from higher gold production as a by-product [34][35] Other Important Information - The company is advancing the installation of pebble crushers in Peru to enhance mill throughput starting in the second half of 2026 [16] - Hudbay's exploration strategy includes a significant focus on the Snow Lake region, with plans for extensive drilling and resource estimation [40][41] Q&A Session Summary Question: Capital allocation framework in volatile markets - Management emphasized the importance of a holistic capital allocation framework to balance growth opportunities and shareholder returns, especially in volatile markets [51][52] Question: SAG rehabilitation work in British Columbia - Management provided details on the planned replacement of the SAG mill feed head, expecting minimal disruption to operations during the process [55][56] Question: Production guidance for Manitoba - Management clarified that the upcoming three-year production guidance will not include new drilling results, but updates will be provided as exploration progresses [62][63] Question: Pre-feasibility study for Mason - Management indicated that a pre-feasibility study for Mason is underway, with completion expected later next year, and no current plans for partnership [71][72]

Financial Data and Key Metrics Changes - Hudbay achieved record annual revenues exceeding $2 billion, record adjusted EBITDA over $1 billion, and record free cash flow generation of more than $380 million in 2025 [4] - Fourth quarter revenues reached $733 million, with adjusted EBITDA of $386 million, and net earnings of $128 million, or 32 cents per share [6][8] - Consolidated cash costs were -63 cents per pound, and sustaining cash costs were 94 cents per pound, showing significant improvement compared to the previous quarter [8][10] Business Line Data and Key Metrics Changes - Copper production guidance was met for the eleventh consecutive year, while gold production guidance was achieved for the fifth consecutive year [4][31] - In the fourth quarter, Hudbay produced 33,000 tons of copper and 84,000 ounces of gold, with Peru operations showing strong performance [6][12] - Manitoba operations produced 47,000 ounces of gold, 3,000 tons of copper, and 6,000 tons of zinc in the fourth quarter, despite challenges [17] Market Data and Key Metrics Changes - Revenue from gold represented 41% of total revenues in the fourth quarter, indicating a growing contribution from gold sales [9] - The company reported a total liquidity of $994 million at the end of the quarter, including $569 million in cash and cash equivalents [10] Company Strategy and Development Direction - The company secured a joint venture with Mitsubishi for the Copper World project, enhancing financial strength and reducing future equity contributions [5] - Hudbay plans to invest in high-return brownfield and greenfield projects, with a focus on operational excellence and capital allocation [29][30] - The introduction of a quarterly dividend of $0.01 per share marks the first dividend increase in the company's history [27] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the diversified operating platform, achieving strong financial performance despite challenges like wildfires and social unrest [4][5] - The company expects copper production to increase by 5% in 2026, while gold production is anticipated to decrease by 9% due to the depletion of Pampacancha [31][32] - Management expressed confidence in maintaining industry-leading cost performance and generating substantial free cash flow [29][34] Other Important Information - The company has reduced long-term debt by $185 million since the end of 2024, achieving a net debt to EBITDA ratio of 0.4 times [10] - Hudbay's capital expenditures for 2026 are expected to include $435 million in sustaining capital and $140 million in growth capital [36][37] Q&A Session Summary Question: How will the capital allocation framework adapt to current market conditions? - Management emphasized the importance of a holistic approach to capital allocation, balancing growth opportunities with shareholder returns [52][54] Question: What is the expected downtime for SAG rehabilitation work in British Columbia? - Management indicated that planned replacement work is expected to take about a month, with operations stabilizing progressively during that period [56][58] Question: Will the updated three-year production guide for Manitoba include new drilling? - Management clarified that a new technical report for Manitoba has not been decided yet, but ongoing drilling is expected to yield positive results [63][70] Question: What is the status of the Maria Reina and Caballito permits in Peru? - Management noted that the permitting process is likely delayed due to the current political environment in Peru, with confidence in obtaining the permits post-elections [79]

Core Viewpoint - Hudbay Minerals Inc. has received key permit amendments for the New Ingerbelle expansion project at its Copper Mountain mine, enhancing copper and gold production, securing jobs, and providing economic benefits [1][2]. Project Development and Economic Impact - The New Ingerbelle expansion is designed to access higher-grade gold mineralization and improve operational efficiency, with a stripping ratio approximately three times lower than current mining areas [5]. - The project is projected to produce approximately 750,000 tonnes of copper, 900,000 ounces of gold, and 5.5 million ounces of silver over its lifespan, positioning Copper Mountain as a critical supplier for the global energy transition [5]. - The expansion is expected to generate over C$11.5 billion in provincial Gross Domestic Product, preserving more than 800 direct jobs and ensuring long-term financial stability for the region [5]. Community Engagement and Partnerships - Throughout the permitting process, the company engaged proactively with local communities and Indigenous bands to ensure transparency and collaborative oversight [3]. - Hudbay finalized refreshed Participation Agreements with the Upper Similkameen Indian Band and Lower Similkameen Indian Band, reinforcing its commitment to strong Indigenous partnerships and responsible mining practices [4]. Commitment to Sustainable Development - The company emphasizes its commitment to responsible resource development and the expansion of copper production, which is vital for electrification and the global energy transition [4]. - Hudbay's mission is to create sustainable value and strong returns by leveraging its strengths in community relations, focused exploration, mine development, and efficient operations [14].

Q4 2025 Results Presentation February 20, 2026 Cautionary Information This presentation contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this presentation, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "guidance", "scheduled", "estimates", "for ...

Core Insights - HudBay Minerals reported revenue of $732.9 million for the quarter ended December 2025, marking a year-over-year increase of 25.3% but falling short of the Zacks Consensus Estimate of $763.81 million by 4.05% [1] - The company's EPS for the same period was $0.22, compared to $0.18 a year ago, but this also represented a significant miss of 44.4% against the consensus estimate of $0.40 [1] Financial Performance - Payable metal in concentrate and dore sold for Molybdenum was 190.00 tons, below the average estimate of 290.65 tons [4] - Gold production was 84,298.00 ounces, slightly above the average estimate of 83,565.30 ounces [4] - Payable metal sold for Copper in British Columbia was 3,747.00 tons, compared to the estimated 4,555.19 tons [4] - Payable metal sold for Silver in British Columbia was 45,298.00 ounces, below the average estimate of 52,037.99 ounces [4] Revenue Breakdown - Revenue from external customers in Peru was $447.3 million, slightly below the estimate of $451.74 million, with a year-over-year change of +28.9% [4] - Revenue from British Columbia was $59.4 million, compared to the estimated $67.2 million, representing a +5.6% change year-over-year [4] - Revenue from Manitoba was $226.2 million, below the estimate of $245.57 million, with a year-over-year increase of +24.5% [4] - Revenue from contracts totaled $707.7 million, compared to the average estimate of $766.32 million, reflecting a +19.8% year-over-year change [4] Contract Revenue Specifics - Revenue from contracts for Zinc was $12.5 million, significantly lower than the estimate of $41.17 million, representing a year-over-year decline of -23.8% [4] - Revenue from contracts for Silver was $16.3 million, compared to the estimated $39.31 million, with a +3.8% change year-over-year [4] - Revenue from contracts for Molybdenum was $9.9 million, below the average estimate of $14.78 million, with a +8.8% year-over-year change [4] - Revenue from contracts for Copper was $383.3 million, slightly below the estimate of $388.89 million, with a +9.8% change year-over-year [4] Stock Performance - HudBay Minerals shares returned +2.6% over the past month, while the Zacks S&P 500 composite experienced a -1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

分组1 - HudBay Minerals reported quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.40 per share, representing an earnings surprise of -44.40% [1] - The company posted revenues of $732.9 million for the quarter ended December 2025, missing the Zacks Consensus Estimate by 4.05%, compared to year-ago revenues of $584.9 million [2] - The stock has increased approximately 24.6% since the beginning of the year, outperforming the S&P 500's gain of 0.2% [3] 分组2 - The earnings outlook for HudBay Minerals is mixed, with the current consensus EPS estimate for the coming quarter at $0.39 on revenues of $688.78 million, and $1.57 on revenues of $2.79 billion for the current fiscal year [7] - The Zacks Industry Rank for Mining - Miscellaneous is currently in the top 21% of over 250 Zacks industries, indicating a favorable outlook for the sector [8]