Hudbay Delivers Strong Fourth Quarter and Record Full Year 2024 Results; Achieves 2024 Consolidated Production and Cost Guidance and Provides 2025 Annual Guidance

Press Release

TORONTO, Feb. 19, 2025 Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM) today released its fourth quarter and full year 2024 financial results, and announced 2025 annual production and cost guidance. All amounts are in U.S. dollars, unless otherwise noted. All production and cost amounts reflect the Copper Mountain mine on a 100% basis, with Hudbay owning a 75% interest in the mine.

“Hudbay delivered record financial performance and a transformed balance sheet in 2024, driven by the achievement of consolidated production guidance for all metals with gold production significantly exceeding the top end of the guidance range and the outperformance of our twice-improved consolidated cash cost guidance,” said Peter Kukielski, President and Chief Executive Officer. “Our enhanced operating platform achieved steady copper production, record high gold production and industry-leading cost performance, generating record annual free cash flows in 2024. The free cash flow generation and the successful equity offering in May have contributed to the significant $512 million reduction in net debt in 2024 and the transformation of our balance sheet to be in the lowest leverage position of our peers. This has put us in an excellent position to reinvest in our portfolio of high-return growth projects to unlock significant near-term and long-term value for our stakeholders. Our near-term brownfield growth projects include attractive mill improvement projects in British Columbia and Peru, which are expected to increase mill throughput levels starting in 2026. Our Copper World project in Arizona is now fully permitted and we look forward to prudently advancing this high-quality copper development project towards a construction sanctioning decision in 2026, and once in production, Copper World is expected to increase our consolidated copper production by more than 50% from current levels.”

Delivered Record Annual Results, Led by Record Gold Production from Manitoba Operations and Record Revenues; 2024 Consolidated Production and Cost Guidance Achieved

• Achieved record annual revenue of $2,021.2 million and record annual adjusted EBITDAⁱ of $822.5 million.
• Enhanced operating platform achieved 2024 consolidated production guidance for all metals with record gold production exceeding the top end of the 2024 guidance range. Full year consolidated copper production of 137,943 tonnes, gold production of 332,240 ounces and silver production of 3,983,851 ounces increased by 5%, 7% and 11% respectively, compared to full year 2023.
• Significantly outperformed the twice-improved 2024 consolidated cash cost guidance. Strong cost control and meaningful exposure to gold by-product credits resulted in better-than-expected consolidated 2024 cash costⁱ and sustaining cash costⁱ per pound of copper produced, net of by-product credits, of $0.46 and $1.62, respectively, an improvement of 43% and 6%, respectively, compared to 2023.
• Peru full year copper production was within the 2024 guidance range while gold production exceeded the top end of guidance as additional gold benches were prioritized in the fourth quarter. Peru full year cash costs of $1.18 per pound outperformed the 2024 annual guidance range.
• Manitoba full year gold production of 214,225 ounces exceeded the top end of the 2024 guidance range of 170,000 to 200,000 ounces. Manitoba full year cash costs of $606 per ounce outperformed the lower end of 2024 annual guidance range of $700 to $900 per ounce.
• British Columbia full year copper production was below the low end of the 2024 guidance range, as expected, while full year gold production was in line with the 2024 annual guidance range. Copper production was lower than the guidance range as a result of lower grades in stockpiled ore and lower throughput during the ramp-up of stabilization and optimization efforts throughout the year. British Columbia continues to advance mill optimization initiatives with the goal to achieve higher mill throughput in 2025.
• Cash and cash equivalents and short-term investments increased by $332.0 million to $581.8 million during 2024 due to a successful equity offering and strong operating cash flows bolstered by higher copper and gold prices, which enabled a $512.0 million reduction in net debtⁱ during 2024.

Delivered Strong Fourth Quarter Operating and Financial Results

• Fourth quarter consolidated copper production of 43,262 tonnes was in line with quarterly production cadence expectations and increased 38% from the third quarter of 2024. Consolidated gold production of 94,161 ounces significantly exceeded expectations and represented an increase of 6% from the strong levels achieved in the third quarter of 2024.
• Strong operating cost performance with consolidated cash costⁱ and sustaining cash costⁱ per pound of copper produced, net of by-product credits, in the fourth quarter of 2024 of $0.45 and $1.37, respectively, representing another quarter of industry-leading cost performance.
• Peru operations continued to benefit from strong and consistent mill throughput, achieving averages of approximately 87,000 tonnes per day in the fourth quarter, despite a planned semi-annual mill maintenance shutdown. The on-time completion of the Pampacancha stripping program contributed to higher grade ore during the fourth quarter. Peru operations produced 33,988 tonnes of copper and 38,079 ounces of gold in the fourth quarter of 2024, in line with quarterly cadence expectations. Peru cash costⁱ per pound of copper produced, net of by-product credits, was $1.00 in the fourth quarter, demonstrating continued strong cost performance.
• Manitoba operations produced 51,438 ounces of gold in the fourth quarter of 2024, significantly exceeding management’s expectations in both production and efficiency. Manitoba cash costⁱ per ounce of gold produced, net of by-product credits, was $607 during the fourth quarter, reflecting better-than-expected operating performance and continued strong operating cost margins.
• British Columbia operations produced 5,927 tonnes of copper at a cash costⁱ per pound of copper produced, net of by-product credits, of $3.00 in the fourth quarter of 2024, reflecting reduced mill throughput versus the third quarter of 2024 as a result of ramp-up periods following mill maintenance shutdowns during the quarter.Achieved revenue of $584.9 million and operating cash flow before change in non-cash working capital of $231.5 million in the fourth quarter of 2024, a 20% and 24% increase, respectively, from the third quarter of 2024. Strong financial results were driven by higher realized gold prices as well as strong copper production in Peru, while delivering on higher grades, throughput and cost control initiatives across all business units.
• Achieved revenue of $584.9 million and operating cash flow before change in non-cash working capital of $231.5 million in the fourth quarter of 2024, a 20% and 24% increase, respectively, from the third quarter of 2024. Strong financial results were driven by higher realized gold prices as well as strong copper production in Peru, while delivering on higher grades, throughput and cost control initiatives across all business units.
• Fourth quarter net earnings attributable to owners and earnings per share attributable to owners were $21.2 million and $0.05, respectively. After adjusting for items on a pre-tax basis such as a non-cash $17.4 million foreign exchange loss, a $14.1 million write-down of PP&E, a $10.3 million mark-to-market revaluation gain on various instruments such as unrealized strategic copper hedges, investments and share-based compensation, and a non-cash loss of $2.5 million related to a quarterly revaluation of closed site environmental reclamation provision, among other items, fourth quarter adjusted earningsⁱ per share attributable to owners was $0.18.
• Adjusted EBITDAⁱ was $257.3 million during the fourth quarter of 2024, a 25% increase compared to the third quarter of 2024.
• Financial results in the fourth quarter would have been even higher if excess copper inventory in Peru at the end of December 2024 was sold. A total of approximately 30,000 wet metric tonnes of copper concentrate was unsold at the end of December, compared to normal levels of 15,000 wet metric tonnes. The excess copper concentrate inventory in Peru is expected to be sold in the first quarter of 2025.

Achieved Significant Debt Reduction and Transformed Balance Sheet

• Hudbay’s unique copper and gold diversification in Peru and Canada provides exposure to higher copper and gold prices and attractive free cash flow generation.
• While the majority of revenues continue to be derived from copper production, gold represented an increasing portion of total revenues at 35% in 2024 compared to 29% in 2023, which was driven by high gold prices and record gold production in Manitoba.
• Impressive operating cash flow and free cash flow generation in 2024 reflects continued strong copper and gold production in Peru and higher gold production from Manitoba following the full repayment of the gold prepayment liability in August 2024, as well as operating cash flow contributions from British Columbia.
• Strong operating cash flow generation and the net proceeds from the equity offering in May 2024 allowed the company to significantly deleverage and transform the balance sheet with $245 million of combined debt repayments and gold prepayment liability reductions in 2024.
• Further reduced net debtⁱ to $525.7 million in the fourth quarter of 2024, representing the fourth consecutive quarter of lower net debt as a result of deleveraging efforts and capitalizing on strong operating cash flow generation.
• Record annual adjusted EBITDAⁱ of $822.5 million in 2024 was a substantial increase from $647.8 million in 2023.
• The increase in cash and reduction in long-term debt significantly reduced the company’s net debt to adjusted EBITDA ratioⁱ to 0.6x at the end of 2024 compared to 1.6x at the end of 2023, well within the targeted 1.2x net debt to adjusted EBITDA ratio outlined in the three prerequisites plan (the “3-P plan”) for advancing Copper World, and transforming Hudbay from one of the highest leverage positions to the lowest leverage position among industry peers.
• In November 2024, further improved long-term balance sheet resilience with a proactive three-year extension of the company’s senior secured revolving credit facilities from October 2025 to November 2028. The extended credit facilities provide increased financial flexibility to accretively maintain the 4.50% coupon 2026 senior unsecured notes outstanding to maturity and advance Copper World towards a sanctioning decision in accordance with the 3-P plan. The $450 million revolving credit facilities include an improved pricing grid reflecting the enhanced financial position of Hudbay and feature an opportunity to increase the facility by an additional $150 million at Hudbay’s discretion during the four-year tenor, providing additional financial flexibility.
• Total liquidity substantially increased by 76% to $1,007.8 million at the end of 2024 from $573.7 million at the end of 2023.

Advancing Growth Initiatives to Further Enhance Copper and Gold Exposure

• Received all major permits required for the development and operation of Copper World with the receipt of the Air Quality Permit in January 2025 and the Aquifer Protection Permit in August 2024. Copper World is now the highest grade and lowest capital intensity fully permitted copper project in the Americas.
• Continuing to progress the 3-P plan for Copper World in 2025 with definitive feasibility study activities and minority joint venture partner process underway.
• The successful completion of the planned stripping program at Pampacancha in September unlocked significantly higher copper and gold grades in the fourth quarter of 2024, which together with maintaining strong operating performance at Constancia has generated meaningful free cash flow in Peru.
• The New Britannia mill continued to exceed throughput expectations, driving continued strong gold production and free cash flow generation in Manitoba. The New Britannia mill achieved throughput levels of approximately 2,020 tonnes per day in the fourth quarter, exceeding its original design capacity of 1,500 tonnes per day and its 2024 budgeted capacity of 1,800 tonnes per day due to the successful implementation of process improvement initiatives and effective preventative maintenance measures. After three years of operations, a post-project review of the New Britannia refurbishment investment has increased the unlevered IRR to 36% from 19% at project sanction in 2020.
• Hudbay has successfully implemented post-acquisition plans to stabilize the Copper Mountain operations through mining fleet ramp-up activities and increased mill reliability and performance. Efforts are now focused on optimizing the operations in 2025 through execution of the planned accelerated stripping program and mill throughput improvement projects.
• Drill permitting for highly prospective Maria Reyna and Caballito properties near Constancia continues to advance through the multi-step regulatory process with the conclusion of the process expected in 2025.
• The development of an access drift to the 1901 deposit in Snow Lake is progressing well and first ore mining is expected in the second quarter of 2025 to enable confirmation of the optimal mining method for the deposit. Underground step-out drilling to-date has intersected copper-gold mineralization and additional drilling is planned for 2025. The development of an adjacent haulage drift has been initiated to de-risk planned full production in 2027.
• Large 2024 exploration program in Snow Lake continued testing targets near Lalor and regional satellite properties throughout the winter months with encouraging results. 2025 exploration plans include a large geophysics program and follow-up drilling at Lalor Northwest located 400 metres from Lalor’s underground infrastructure, along with the testing of a deep geophysical target at the Cook Lake North property.
• Continuing to advance Flin Flon tailings reprocessing opportunities through metallurgical test work and early economic evaluation to assess the possibility of producing critical minerals and precious metals while reducing the environmental footprint.

2025 Guidance Reflects Stable Copper and Gold Production at Industry-leading Margins

• Consolidated copper production of 133,000 tonnes, based on the midpoint of the 2025 guidance range, is expected to remain stable with 2024 levels, reflecting higher expected production in British Columbia as mill throughput optimization plans are implemented, offset by a lower portion of ore feed from the high-grade Pampacancha satellite deposit in Peru.
• Consolidated gold production of 277,750 ounces, based on the midpoint of the 2025 guidance range, is expected to be lower than 2024 production, reflecting a lower portion of ore feed from Pampacancha in 2025 and the accelerated mining of high-grade gold benches in late 2024, partially offset by continued strong gold production in Manitoba.
• Consolidated cash costⁱ, net of by-product credits, in 2025 is expected to be within $0.80 to $1.00 per pound as the company continues to focus on maintaining strong cost control across the business, driving industry-leading margins.
• Total sustaining capital expenditures are expected to be $365 million in 2025, reflecting some deferrals from 2024 and higher sustaining spending at the operations.
• Total growth capital expenditures are expected to be $205 million in 2025 as Hudbay reinvests in several high-return growth projects in 2025 to deliver increased copper exposure. This includes $55 million for mill throughput improvement projects in British Columbia, $25 million for mill throughput improvement projects in Peru and $65 million for Copper World de-risking activities and feasibility studies.
• Exploration expenditures are expected to total $40 million in 2025 as the company continues to execute the large multi-year exploration program in the Snow Lake region, which continues to be partially funded by critical minerals premium flow-through financing that was completed in the fourth quarter.

Summary of Fourth Quarter Results

Consolidated copper production of 43,262 tonnes in the fourth quarter of 2024 was in line with quarterly production cadence and represented a significant increase of 38% from the third quarter of 2024. Consolidated gold production of 94,161 ounces significantly exceeded expectations and represented an increase of 6% from the third quarter of 2024. Consolidated silver production was 1,311,658 ounces in the quarter, a 33% increase from the third quarter of 2024, while consolidated zinc production was 8,385 tonnes, in line with the prior quarter. The increase in production was primarily due to higher grades in Peru and continued strong gold production in Manitoba.

Cash generated from operating activities of $238.1 million increased by $91.9 million in the fourth quarter of 2024 compared to the third quarter of 2024. Operating cash flow before change in non-cash working capital was $231.5 million during the fourth quarter of 2024, reflecting an increase of $45.2 million from the third quarter of 2024. This increase reflects higher copper and gold sales volumes driven by higher grades in Peru and continued strong gold production in Manitoba.

Net earnings attributable to owners in the fourth quarter of 2024 was $21.2 million, or $0.05 per share, compared to $49.8 million, or $0.13 per share in the third quarter of 2024. The fourth quarter of 2024 was impacted by various non-cash charges for foreign exchange losses, write-offs of previously capitalized PP&E and revaluation of share-based compensation due to a higher share price.

Adjusted net earnings attributable to ownersⁱ and adjusted net earnings per share attributable to ownersⁱ were $70.3 million and $0.18 per share, respectively, in the fourth quarter of 2024, after adjusting for items on a pre-tax basis such as a non-cash $17.4 million foreign exchange loss, a $14.1 million write-down of PP&E, a $10.3 million mark-to-market revaluation gain on various instruments such as unrealized strategic copper hedges, investments and stock based compensation, and a non-cash loss of $2.5 million related to a quarterly revaluation of a closed site environmental reclamation provision, among other items. This compares to adjusted net earnings attributable to ownersⁱ of $50.3 million, or $0.13 per share, in the third quarter of 2024.

In the fourth quarter, adjusted EBITDAⁱ was $257.3 million, a 25% increase compared to $206.2 million in the third quarter of 2024 as higher copper and gold grades led to increased sales volumes. Sales volumes would have been even higher in the fourth quarter of 2024 if excess copper concentrate in Peru was sold. Copper concentrate inventory levels totaled approximately 30,000 wet metric tonnes in Peru at the end of the quarter, higher than normal levels of 15,000 wet metric tonnes because of the strong production ramp-up late in the year. The excess copper concentrate in Peru is expected to be sold in the first quarter of 2025.

In the fourth quarter of 2024, consolidated cash costⁱ per pound of copper produced, net of by-product credits, was $0.45 compared to $0.18 in the third quarter of 2024, as higher copper production more than offset higher mining, milling and general and administrative (“G&A”) costs in the fourth quarter, but by-product credits were lower on a per pound basis. Consolidated sustaining cash costⁱ per pound of copper produced, net of by-product credits, was $1.37 in the fourth quarter of 2024 compared to $1.71 in the third quarter of 2024, with the decrease driven by strong cost control and lower sustaining capital expenditures in the fourth quarter.

Consolidated all-in sustaining cash costⁱ per pound of copper produced, net of by-product credits, was $1.53 in the fourth quarter of 2024, lower than $1.95 in the third quarter of 2024 mainly due to the same reason outlined above as well as lower corporate G&A and regional cost in the fourth quarter.

As at December 31, 2024, total liquidity was $1,007.8 million, including $541.8 million in cash and cash equivalents, $40.0 million in short-term investments as well as undrawn availability of $426.0 million under the company’s revolving credit facilities. Net debtⁱ declined to $525.7 million at the end of 2024 compared to $1,037.7 million at the end of 2023.

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