In the first quarter of 2025, Hudbay Minerals Inc. reported substantial earnings, reflecting strong operational efficiencies and market conditions in copper and gold production. The Canadian mining company, which focuses on copper and gold production across three key operations in Peru, Manitoba, and British Columbia, generated revenue of $594.9 million, marking an increase from $525.0 million in the same period a year ago.

In terms of production, the company’s consolidated copper output was 30,958 tonnes for the quarter, aligning with quarterly expectations, while gold production was recorded at 73,784 ounces, exceeding earlier targets primarily due to higher grades from the Manitoba operations. The copper production from this quarter saw a decrease from the 43,262 tonnes produced in the preceding quarter, while gold output saw a rise from the 90,392 ounces produced last year.

Hudbay’s cost performance showcased improvements with consolidated cash costs for copper production hitting a record low of negative $0.45 per pound, a drastic drop from $0.45 in the fourth quarter of 2024. Additionally, sustaining cash costs stood at $0.72 per pound, down from $1.37 previously. In Manitoba, the cash cost for gold production dipped to $376 per ounce from $736 in Q4 2024, showing a significant reduction influenced by improved grades and mining techniques.

Adjusted EBITDA rose to $287.2 million in the first quarter, up 34% year-over-year and a 12% increase from the previous quarter. This increase was driven by improved efficiency and strong sales prices. Net income for the quarter attributed to shareholders reached $100.4 million, or $0.25 per share, compared to $22.3 million and $0.06 per share a year ago.

Hudbay maintained its robust financial standing with $582.6 million in cash and short-term investments and net debt reported at $526.1 million, with a net debt-to-adjusted EBITDA ratio of 0.6x, unchanged from the end of 2024 but notably improved from 1.3x at the same time last year.

Moving forward, Hudbay has reaffirmed its 2025 production guidance, expecting consolidated copper production to fall between 117,000 and 149,000 tonnes and gold production projected between 247,500 to 308,000 ounces. The company’s stable core operations and strong cash flow generation position it favorably to pursue further growth opportunities in light of increasing copper and gold prices.