Hudbay Provides Annual Reserve and Resource Update with Mine Life Extensions and Improved Three-Year Production Outlook

Core Viewpoint - Hudbay Minerals Inc. has released its annual mineral reserve and resource update, along with a new three-year production guidance, indicating a significant increase in copper and gold production driven by exploration initiatives and operational improvements [1][2]. Group 1: Mineral Reserves and Resources - Current mineral reserve estimates total 488 million tonnes at 0.24% copper, containing approximately 1.2 million tonnes of copper, with an expected mine life extending to 2040 for the Constancia operation [4][7]. - The expected mine life for Snow Lake has been extended by four years to 2041, with average annual gold production expected to be 190,000 ounces over the next three years [14][16]. - Current mineral reserves in Snow Lake total 19.6 million tonnes with approximately 1.9 million ounces of gold, reflecting a significant increase in reserves due to high-grade resource conversions [14][15]. Group 2: Production Guidance - Consolidated copper production is expected to average 147,000 tonnes per year over the next three years, a 24% increase from 2025 production levels [53]. - For 2027 and 2028, consolidated copper production is projected to average 159,000 tonnes per year, representing a 28% increase from expected 2026 production [53][54]. - Consolidated gold production is expected to average 243,000 ounces per year over the next three years, reflecting a decrease of 9% from 2025 levels due to the depletion of the high-grade Pampacancha deposit [53][55]. Group 3: Operational Improvements - The Constancia operation is expected to increase mill throughput rates to over 90,000 tonnes per day starting in the second half of 2026, supported by the installation of two pebble crushers [4][54]. - The Copper Mountain mine's production is expected to average approximately 48,000 tonnes of copper and 35,000 ounces of gold over the next three years, with operational optimization initiatives underway [47][56]. - The New Britannia mill is expected to continue operating above 2,200 tonnes per day, significantly exceeding its original design capacity, contributing to strong gold production levels [55]. 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 [30][31]. - The company has increased its land package in Snow Lake by over 250% through the acquisition of Rockcliff Metals Corp., enhancing its portfolio of regional deposits [33][35]. - The Talbot deposit is undergoing extensive drilling to expand its resource base and support a pre-feasibility study aimed at upgrading mineral resources to reserves [35][36]. Group 5: Project Developments - The Copper World project in Arizona is advancing towards a sanctioning decision in 2026, with Hudbay holding a 70% interest following a joint venture transaction with Mitsubishi [59][60]. - The project includes the East deposit and new deposits defined after an expanded drill program, with key state permits already received for development [60].