Management's Discussion and Analysis of Results of Operations and Financial Condition For the year ended December 31, 2024 February 18, 2025 TA BL E O F CONTENTS | I | n | t | r | o | du | c | t | i | o | n | 1 | O | u | r | B | u | s | i | n | e | s | s | 1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ...

Financial Data and Key Metrics Changes - Hudbay Minerals achieved record revenues exceeding $2 billion and record free cash flow generation of over $350 million in 2024, demonstrating strong financial performance [6][10] - Adjusted EBITDA for the fourth quarter was $257 million, a 25% increase from the prior quarter, leading to a full-year adjusted EBITDA of $823 million, up from $648 million in 2023 [14] - The company reduced net debt by over $500 million in 2024, resulting in a net debt to adjusted EBITDA ratio of 0.6 times, down from 1.6 times at the end of 2023 [18] Business Line Data and Key Metrics Changes - Peru operations produced 34,000 tons of copper and 38,000 ounces of gold in Q4 2024, with full-year production of 99,000 tons of copper and 98,000 ounces of gold, exceeding guidance [20][21] - Manitoba operations achieved record annual gold production of 214,000 ounces in 2024, with cash costs of $607 per ounce, significantly below guidance [24][28] - British Columbia operations produced 6,000 tons of copper and 4,600 ounces of gold in Q4 2024, with full-year production below guidance due to lower grades [30][31] Market Data and Key Metrics Changes - The portion of revenues from gold increased to 35% in 2024, up from 29% in 2023, highlighting the diversification of revenue sources [13] - Cash costs in Peru were $1.18 per pound for copper in 2024, outperforming the low end of the annual cost guidance range [22] - Manitoba's sustaining cash costs averaged $868 per ounce in 2024, making it the lowest-cost gold mine in Canada [29] Company Strategy and Development Direction - The company is focused on advancing the Copper World project in Arizona, which has received key permits and is expected to significantly increase copper production [11][52] - Hudbay plans to continue optimizing mill throughput in British Columbia and Peru, with a focus on maintaining strong cost control and operational efficiencies [9][38] - The company aims to replicate the success of the New Britannia refurbishment project across its operations, emphasizing disciplined capital allocation [45][49] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving stable production and costs in 2025, despite a reduction in guidance primarily due to challenges at Pampacancha [66][68] - The company anticipates strong demand for copper in the long term, driven by supply constraints and robust market fundamentals [61] - Management highlighted the importance of maintaining a resilient balance sheet to support growth initiatives and capitalize on market opportunities [10][61] Other Important Information - The company completed a successful equity offering in May 2024, contributing to cash and cash equivalents of $582 million by year-end [16] - Hudbay is executing the largest exploration program in its history in Snow Lake, aiming to extend mine life and discover new deposits [54] - The company is committed to producing made-in-America copper cathode at the Copper World project, enhancing its strategic positioning [126] Q&A Session Summary Question: Can you provide more color on your 2025 production guidance in Peru? - Management noted that the reduction is primarily due to more mining dilution than expected in Pampacancha, with conservative resource-to-reserve conversion factors applied [66][67] Question: What kind of interest are you seeing for the Copper World minority interest process? - Management indicated strong interest from various types of investors, including traditional partners and strategic investors, expecting a competitive process [82][83] Question: How much exposure does the Manitoba business have to the Canadian dollar? - The company conservatively budgeted for a CAD/USD exchange rate of $1.35, with a significant impact on cash flow and EBITDA from exchange rate fluctuations [100] Question: What is the timeline for potential production from the Caballito and Maria Reina deposits? - Management indicated that production from these deposits is unlikely before the early 2030s, but they are working on plans to mitigate lower-grade future years [94][97] Question: Can you elaborate on the dilution in ore losses? - Management clarified that the issue appears to be more geostatistical rather than operational, with ongoing updates to models to improve accuracy [108][109]

FEBRUARY 19, 2025 Q4 2024 RESULTS PRESENTATION 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 ...

For the quarter ended December 2024, HudBay Minerals (HBM) reported revenue of $584.9 million, down 2.9% over the same period last year. EPS came in at $0.18, compared to $0.20 in the year-ago quarter.The reported revenue represents a surprise of +1.51% over the Zacks Consensus Estimate of $576.2 million. With the consensus EPS estimate being $0.18, the company has not delivered EPS surprise.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectat ...

分组1 - HudBay Minerals reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate, but down from $0.20 per share a year ago [1] - The company posted revenues of $584.9 million for the quarter, exceeding the Zacks Consensus Estimate by 1.51%, but down from $602.19 million year-over-year [2] - HudBay Minerals has surpassed consensus EPS estimates two times in the last four quarters [1][2] 分组2 - The stock has gained approximately 13% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $573.73 million, and for the current fiscal year, it is $0.79 on revenues of $2.22 billion [7] - The Zacks Industry Rank for Mining - Miscellaneous is in the bottom 34% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Core Insights - Hudbay Minerals Inc. achieved record financial performance in 2024, with significant improvements in production and cost management, leading to a transformed balance sheet and reduced net debt [2][5][26] Financial Performance - The company reported record annual revenue of $2,021.2 million and adjusted EBITDA of $822.5 million, a 27% increase from 2023 [5][26] - Full year consolidated copper production reached 137,943 tonnes, gold production was 332,240 ounces, and silver production totaled 3,983,851 ounces, representing increases of 5%, 7%, and 11% respectively compared to 2023 [5][22] - The consolidated cash cost per pound of copper produced was $0.46, a 43% improvement from 2023, while sustaining cash costs were $1.62, down from $1.72 [27][48] Production Highlights - Gold production in Manitoba exceeded guidance, achieving 214,225 ounces against a target of 170,000 to 200,000 ounces [5][21] - Peru operations produced 33,988 tonnes of copper and 38,079 ounces of gold in Q4 2024, with cash costs of $1.00 per pound for copper, demonstrating strong cost performance [8][40] - The fourth quarter saw consolidated copper production of 43,262 tonnes, a 38% increase from Q3 2024, and gold production of 94,161 ounces, a 6% increase [13][17] Debt and Liquidity - The company reduced net debt by $512 million in 2024, ending the year with net debt of $525.7 million, significantly lower than $1,037.7 million at the end of 2023 [2][20] - Total liquidity increased by 76% to $1,007.8 million at the end of 2024, providing financial flexibility for future projects [11][20] Growth Initiatives - Hudbay is advancing several growth projects, including the Copper World project in Arizona, which is fully permitted and expected to increase copper production by over 50% once operational [2][10] - The company plans to invest $205 million in growth capital expenditures in 2025, focusing on high-return projects and mill throughput improvements [10][18] Operational Efficiency - The New Britannia mill in Manitoba exceeded throughput expectations, achieving approximately 2,020 tonnes per day in Q4 2024, significantly above its design capacity [11][9] - The company continues to optimize operations in British Columbia and Peru, with ongoing initiatives to enhance mill throughput and reduce costs [12][50]

Core Viewpoint - Wall Street analysts anticipate HudBay Minerals (HBM) will report quarterly earnings of $0.18 per share, reflecting a 10% year-over-year decline, with revenues expected to be $576.2 million, down 4.3% from the previous year [1]. Earnings Estimates - Over the past 30 days, the consensus EPS estimate has been revised downward by 4.5%, indicating a collective reassessment by analysts of their initial forecasts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Projections - Analysts project 'Revenue from contracts- Copper' to reach $365.97 million, indicating a year-over-year increase of 1.2% [5]. - 'Revenue from contracts- Zinc' is expected to be $18.78 million, reflecting a 0.4% increase from the previous year [5]. - 'Revenue from contracts- Gold' is estimated at $179.98 million, showing a year-over-year decline of 2.1% [5]. - 'Revenue from contracts- Silver' is projected to be $21.21 million, indicating a significant year-over-year increase of 79.8% [6]. Production Estimates - 'Contained metal in concentrate and dore produced - Zinc' is expected to reach 7,604.43 tons, up from 5,747 tons reported in the same quarter last year [6]. - 'Contained metal in concentrate and dore produced - Copper' is forecasted at 43,152.43 tons, down from 45,450 tons in the previous year [7]. - 'Contained metal in concentrate and dore produced - Silver' is estimated at 1,037,537 ounces, compared to 1,197,082 ounces a year ago [7]. - 'Contained metal in concentrate and dore produced - Gold' is projected to be 79,992.27 ounces, down from 112,776 ounces in the same quarter last year [8]. - 'Contained metal in concentrate and dore produced - Molybdenum' is estimated at 361.72 tons, compared to 397 tons a year ago [8]. Sales Price Estimates - The estimated 'Realized Sales Prices - Copper' is $4.19 per pound, up from $3.77 per pound in the previous year [9]. - The average prediction for 'Realized Sales Prices - Gold' is $2,632.2 per ounce, compared to $2,062 per ounce reported in the same quarter last year [9]. Sales Volume Estimates - The consensus estimate for 'Payable metal in concentrate and dore sold - Gold' is 77,363.18 ounces, down from 104,840 ounces a year ago [10]. - HudBay Minerals shares have experienced a 5% change in the past month, compared to a 4.9% move in the Zacks S&P 500 composite [10].

Core Viewpoint - HudBay Minerals (HBM) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended December 2024, with the consensus outlook indicating a significant impact on the stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $0.18 per share, reflecting a year-over-year decrease of 10% [3]. - Revenues are projected to be $576.2 million, which is a decline of 4.3% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 9% over the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for HudBay Minerals is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -11.77%, suggesting a bearish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [5][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, HudBay Minerals exceeded expectations by posting earnings of $0.13 per share against an expected $0.05, resulting in a surprise of +160% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - While HudBay Minerals does not currently appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [16].

Group 1 - The Stargate project is expected to significantly impact various industries, particularly in AI, big tech, semiconductors, and healthcare [1] - The company employs a research-driven approach to identify high-conviction stocks with strong growth potential across dynamic sectors [1] - Investment ideas are supported by thorough research and strategic foresight, aimed at helping investors navigate complex markets [1] Group 2 - The analysis includes both low-risk and selective high-risk investment opportunities that could outperform the market [1]

Group 1 - Hudbay Minerals Inc. will host a conference call on February 19, 2025, to discuss its fourth quarter and full year 2024 results, along with 2025 production and cost guidance [1][2] - A news release with the fourth quarter and full year 2024 results will be issued before the market opens on February 19, 2025, and will be available on the company's website [2] - An archived audio webcast of the conference call will be accessible on Hudbay's website after the call [2] Group 2 - Hudbay is a copper-focused critical minerals company with operations in Canada, Peru, and the United States, featuring a strong pipeline of copper growth projects [3][4] - The company's operating portfolio includes the Constancia mine in Peru, Snow Lake operations in Canada, and Copper Mountain mine in Canada, with copper as the primary metal produced [4] - Hudbay's growth pipeline consists of several projects, including the Copper World project in Arizona, Mason project in Nevada, and Llaguen project in Peru, along with expansion and exploration opportunities [4] Group 3 - Hudbay's purpose statement emphasizes its commitment to people, communities, and the planet, aiming to provide essential metals sustainably and create better futures [5] - The company's mission focuses on creating sustainable value and strong returns through community relations, exploration, mine development, and efficient operations [5]