Hudbay Minerals Inc. (NYSE:HBM) shares jumped 3.2% after the diversified mining company posted second-quarter results that surpassed analyst expectations, fueled by strong margins from its copper and gold operations despite temporary wildfire-related disruptions in Manitoba.
The firm reported adjusted earnings of $0.19 per share for the quarter, well above the analyst consensus of $0.11. Revenue reached $536.4 million, slightly exceeding estimates of $534.39 million, supported by the company’s diversified commodity mix, with gold contributing over 36% of total revenues.
During the quarter, Hudbay produced 29,956 tonnes of copper and 56,271 ounces of gold, even with a 13-day temporary shutdown of its Manitoba operations due to wildfire evacuation orders. The company maintained industry-leading cost efficiency, posting a consolidated cash cost per pound of copper of -$0.02, net of by-product credits.
“We delivered another quarter of significant free cash flow generation driven by continued industry-leading cost margins and diversified exposure to copper and gold,” said Peter Kukielski, President and Chief Executive Officer.
“Our strong financial performance enabled us to further reduce long-term debt, invest in our many high-return growth projects and further strengthen our balance sheet to its best position in over a decade.”
Hudbay generated $87.8 million in free cash flow during the quarter, marking its eighth consecutive quarter of substantial free cash flow. This allowed the company to repurchase and retire an additional $50 million of senior unsecured notes at a discount to par, lowering total principal debt to $1.07 billion.
The miner reaffirmed its full-year 2025 production guidance of 117,000 to 149,000 tonnes of copper and 247,500 to 308,000 ounces of gold while improving its consolidated cash cost guidance to $0.65–$0.85 per pound, down from the previous $0.80–$1.00 per pound range.
Hudbay also announced a $600 million joint venture with Mitsubishi Corporation for a 30% minority stake in its Copper World project, significantly reducing the company’s funding requirements for developing the site.
Hudbay Minerals Inc stock price
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.