Hudbay Delivers Record Fourth Quarter and Full Year 2025 Results; Achieves 2025 Consolidated Copper and Gold Production and Cost Guidance

Positive factors

• Record annual revenue of $2.2 billion and record annual adjusted EBITDA of $1.1 billion.
• Achieved full year consolidated copper and gold production guidance.
• Significantly outperformed the twice-improved 2025 consolidated cash cost guidance.
• Peru operations had the strongest quarter of the year in the fourth quarter with production of 25,038 tonnes of copper, 32,865 ounces of gold and 731,017 ounces of silver as strong copper and gold grades were mined from Pampacancha.
• Manitoba full year cash cost of $549 per ounce of gold outperformed the low end of the 2025 annual guidance range.
• British Columbia full year cash cost of $3.06 per pound of copper achieved the 2025 annual cost guidance range.
• Delivered another quarter of record free cash flow generation with $228.2 million achieved during the fourth quarter of 2025, resulting in $387.9 million in free cash flow in 2025.
• Net debt decreased by $86.0 million to $439.7 million as at December 31, 2025 compared to $525.7 million at December 31, 2024.
• Net debt to adjusted EBITDA ratio was 0.4x at the end of the fourth quarter of 2025, a further improvement from 0.6x at the end of the fourth quarter of 2024.
• Introduced a new quarterly dividend of C$0.01 per share, an annual increase of 100%.
• Closed the accretive $600 million joint venture transaction with Mitsubishi Corporation for the development of Copper World.
• Talbot Initial Drilling Results Confirm Resource Expansion Potential with all the holes yielding positive results and four of them returning mineralized intercepts with economic potential.
• New Britannia mill throughput is expected to continue to exceed expectations and operate above 2,200 tonnes per day in 2026, far exceeding its original design capacity of 1,500 tonnes per day.

Negative factors

• Manitoba operations produced 173,453 ounces of gold, 9,249 tonnes of copper, 17,646 tonnes of zinc and 800,198 ounces of silver in 2025. Production was below the low end of the guidance range for gold and zinc, while copper and silver production was within the guidance range in 2025. These production levels were achieved despite the impacts of over two months of production deferrals due to wildfire evacuations, ramp-up activities throughout the summer and unexpected downtime from an eight-day weather-related power outage in October.
• British Columbia operations produced 23,784 tonnes of copper, 20,001 ounces of gold and 252,811 ounces of silver in 2025. Copper production was below the low end of the production guidance range, while the operations achieved full year 2025 production guidance for gold and silver. Copper production in 2025 was impacted by reduced throughput at the primary semi-autogenous grinding ("SAG") mill in the fourth quarter of 2025 and a higher portion of low-grade stockpiles utilized as ore feed in 2025.
• Consolidated gold production in 2026 is expected to be lower than 2025 production, reflecting the depletion of Pampacancha in 2025.
• Peru, 2026 copper production is expected to be 82,500 tonnes, a slight decrease of 3% from 2025 due to the depletion of Pampacancha.
• Peru expects to install two pebble crushers to increase mill throughput in the second half of 2026, in addition to implementing other mill optimization initiatives. Gold production is expected to decline to 17,500 ounces, lower than 2025 levels as Hudbay optimized the mine plan in 2025 during a period of social unrest by prioritizing Pampacancha mining activities and supplementing mill ore feed from low-grade stockpiles.
• British Columbia cash cost, net of by-product credits, was $4.82 per pound of copper in the fourth quarter, reflecting the production impacts from the primary SAG mill maintenance.