Hudbay Provides Annual Reserve and Resource Update, Three-Year Production Outlook and Positive Snow Lake Exploration Results

Core Viewpoint - Hudbay Minerals Inc. has released its annual mineral reserve and resource update along with a three-year production guidance, highlighting a stable copper and gold production profile supported by high-quality assets and robust exploration efforts [1][2]. Group 1: Mineral Reserves and Resources - Current mineral reserve estimates for Constancia total 517 million tonnes at 0.25% copper, containing approximately 1.3 million tonnes of copper, with an extended mine life to 2041 due to positive drilling results [3][4]. - The mineral reserves at Copper Mountain are estimated at 346 million tonnes at 0.25% copper, supporting a mine life until 2043, with significant upside potential for future resource conversion [44][49]. Group 2: Production Guidance - Consolidated copper production is expected to average 144,000 tonnes per year over the next three years, with a projected increase to 161,000 tonnes in 2027, reflecting a 17% increase from 2024 [4][52]. - Gold production is expected to average 253,000 ounces per year over the next three years, driven by strong performance in Manitoba and contributions from Pampacancha [4][54]. Group 3: Operational Highlights - The company plans to optimize production at Copper Mountain, with expected annual copper production of 44,000 tonnes and a significant increase to 60,000 tonnes in 2027, representing a 127% increase from 2024 [55][46]. - The Snow Lake operations are expected to maintain strong gold production levels, averaging over 193,000 ounces per year, with a record annual production of 214,225 ounces achieved in 2024 [14][54]. Group 4: Exploration Initiatives - Hudbay is executing a large exploration program in Snow Lake, focusing on near-mine exploration to increase production and mineral reserves, as well as testing regional satellite deposits [31][37]. - Positive drilling results from the 1901 deposit and Lalor Northwest indicate significant copper-gold mineralization, reinforcing the potential for new discoveries [34][36]. Group 5: Copper World Project - The Copper World project in Arizona has proven and probable mineral reserves of 385 million tonnes at 0.54% copper, with a projected average annual copper production of 85,000 tonnes over a 20-year mine life [59][64]. - The project has received key state permits and is expected to have a strong economic profile, with an after-tax NPV of $1.1 billion at a copper price of$3.75 per pound [63][61].