Hudbay Minerals reported third‑quarter 2025 revenue of $346.8 million, a decline of 18% from the $410.4 million earned in the same period last year and 15% lower than the $410.4 million reported in Q2 2025. Adjusted earnings per share fell to $0.03, missing the consensus estimate of $0.06 or $0.08 by $0.03 to $0.05. Adjusted EBITDA reached $142.6 million, while cash generated from operating activities was $222.4 million, a drop from $260 million in Q2 2025. Net debt stood at $435.9 million, and the company produced 24,205 tonnes of copper and 53,581 ounces of gold.
The earnings miss was driven primarily by operational disruptions that cut production and sales volumes. Mandatory wildfire evacuations in Manitoba forced a shutdown of the Constancia mine, the company’s largest copper contributor, which produced 18,114 tonnes of copper and 26,380 ounces of gold—about 75% of total copper output and 49% of gold. In Peru, a nine‑day interruption caused by social unrest halted the 777 mine, while a delayed 20,000‑tonne copper concentrate shipment—postponed by ocean swells—further reduced cash flow. These events lowered by‑product credits and increased operating costs, pushing the consolidated cash cost per pound of copper up to $0.42 from a negative $0.02 in Q2 2025.
Cost performance reflected the headwinds. Consolidated sustaining cash cost rose to $2.09 per pound, and all‑in sustaining cost climbed to $2.78 per pound, both higher than the $1.85‑$2.25 and $2.25‑$2.75 ranges the company had guided for 2025. The increase is largely attributable to higher operating expenses and the loss of by‑product credits from reduced Manitoba output, while the company’s disciplined cost management kept the cash cost from deteriorating further.
Hudbay’s management highlighted the resilience of its diversified platform. President and CEO Peter Kukielski said the quarter demonstrated “strength of our operating capabilities” amid the wildfire and social‑unrest disruptions. He also underscored the strategic importance of the Mitsubishi partnership, noting that the Japanese firm’s $600 million investment for a 30% stake in the Copper World project reduces Hudbay’s capital contribution and strengthens the balance sheet. The partnership is expected to close in late 2025 or early 2026 and positions Hudbay to accelerate the development of one of the largest copper projects in the United States.
The company reaffirmed its 2025 production guidance, projecting copper output near the low end of the previously announced range and gold production at the lower end of its guidance band. While the guidance for cash cost and sustaining cost for 2025 has been tightened—reflecting expectations of lower operating expenses and improved by‑product credits—the company remains confident in its ability to maintain industry‑leading margins. Management emphasized that the Copper World project will be a key growth driver once it reaches production, and that the partnership with Mitsubishi will help de‑risk the project’s capital requirements.
The Q3 results illustrate the impact of short‑term operational disruptions on earnings, while the strategic partnership and reaffirmed guidance signal a focus on long‑term growth and balance‑sheet strength. The company’s ability to navigate the headwinds and maintain cost discipline positions it to capitalize on copper demand in the coming years.
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