Hudbay Minerals Reports Record First Quarter Revenue and EBITDA
The mining company ended the first quarter with over $1 billion in cash and cash equivalents
Hudbay Minerals Inc. (HBM), a producer of copper and other metals, reported record quarterly revenue of $757.3 million for the first quarter of 2026. The company also achieved record quarterly adjusted EBITDA of $421.9 million and record adjusted net earnings attributable to owners of $159.1 million.
Financial performance was driven by steady operating performance and expanding margins resulting from copper and gold exposure. Gold revenues accounted for 39% of gross revenue during the period. The company generated $102.3 million in free cash flow.
Cost performance reached record lows, with consolidated cash costs, net of by-product credits, falling to $(1.80) per pound of copper. Sustaining cash costs, net of by-product credits, were $0.00 per pound. In Peru, cash costs of $0.70 per pound were better than expected due to strong cost control and higher by-product prices. Manitoba operations reported a cash cost of $408 per ounce of gold, which outperformed the low end of the 2026 annual guidance range of $500 to $800 per ounce.
Production remained in line with quarterly cadence expectations. Consolidated copper production reached 27,929 tonnes and gold production reached 61,700 ounces. Peru operations produced 20,573 tonnes of copper and 8,770 ounces of gold. Manitoba operations produced 47,743 ounces of gold, 2,535 tonnes of copper, 4,565 tonnes of zinc, and 213,208 ounces of silver. British Columbia operations produced 4,821 tonnes of copper, 5,187 ounces of gold, and 43,042 ounces of silver.
The company significantly reduced its net debt to $5.6 million as of March 31, 2026, down from $439.7 million at the end of 2025. This decrease followed the closing of the Copper World joint venture transaction in January 2026. Consequently, the net debt to adjusted EBITDA ratio improved to 0.0x from 0.4x in the fourth quarter of 2025.
Hudbay reaffirmed its full year 2026 consolidated production guidance of 110,000 to 138,000 tonnes of copper and 217,000 to 272,000 ounces of gold. The company also reaffirmed its 2026 consolidated cash cost guidance of $(0.30) to $(0.10) per pound of copper and sustaining cash cost guidance of $1.70 to $2.10 per pound of copper.
Following the quarter, the company repaid its outstanding 2026 senior unsecured notes on April 1, 2026, using cash on hand and a $272 million draw on revolving credit facilities. This action was taken in advance of a Copper World sanctioning decision expected later this year.