• Copper: A highly conductive base metal essential for electrical wiring, construction, and industrial applications.
• Zinc: A base metal primarily used for galvanizing steel to prevent corrosion, and in various alloys.
• Gold: A precious metal valued for its use in jewelry, investment, and as a component in electronics.
• Silver: A precious metal utilized in jewelry, investment, industrial applications, and photography due to its high conductivity.

Hudbay Minerals (HBM) Major Customers

• Increased stringency and enforcement of Environmental, Social, and Governance (ESG) standards and the necessity of maintaining a strong Social License to Operate (SLO). Failure to meet rapidly evolving expectations from investors, regulators, and local communities regarding environmental stewardship (e.g., carbon footprint, water management, biodiversity impact), social responsibility (e.g., Indigenous relations, labor practices, community consent), and corporate governance can lead to significant project delays or cancellations, increased financing costs, difficulty in securing permits, and even loss of market access. This fundamentally threatens the traditional mining model by elevating non-financial risks to critical project viability.
• Accelerated advancements and adoption of metal recycling and "urban mining" technologies. As processes for efficiently and economically recovering valuable metals from electronic waste, industrial scrap, and other end-of-life products improve and gain scale, this growing supply of "secondary" metals could increasingly compete with and potentially reduce the long-term demand for newly mined "primary" metals. This shift towards a more circular economy could exert downward pressure on commodity prices and challenge the economic viability of future mining projects.

Hudbay Minerals' main products and their estimated global addressable market sizes are as follows:

• Copper: The global copper market size was estimated at USD 241.88 billion in 2024. Other estimates for the global copper market size in 2024 include USD 333.15 billion and USD 362.28 billion. The market is projected to reach USD 339.95 billion by 2030, USD 548.20 billion by 2034, or USD 59.51 billion by 2034.
• Gold: The global gold market was valued at USD 291.68 billion in 2024. It is projected to reach USD 400 billion by the end of 2030 or USD 457.91 billion by 2032.
• Zinc: The global zinc market was estimated at USD 36.26 billion in 2024. Other estimates for the global zinc market size in 2024 include USD 27.2 billion and USD 23.36 billion. The market is projected to reach USD 54.11 billion by 2032, USD 48.51 billion by 2032, or USD 42.46 billion by 2035.
• Silver: The global silver market size was valued at USD 87.12 billion in 2024. Another estimate for the global silver market in 2024 is USD 22.50 billion. It is projected to grow to USD 202.07 billion by 2033 or USD 34.94 billion by 2034.

Expected Drivers of Future Revenue Growth for Hudbay Minerals (HBM)

• Increased Copper Production from Existing Operations: Hudbay Minerals anticipates a significant increase in consolidated copper production over the next three years, with an expected average of 153,000 tonnes per year, representing a 16% increase from 2023. This growth is primarily driven by stable operations at its three long-life mines in the Americas. Specifically, the company expects average annual copper production of 44,000 tonnes from Copper Mountain over the next three years, including a substantial 60,000 tonnes in 2027, marking a 127% increase from 2024, partly due to full ownership and optimization efforts at the mine. The Constancia operations are also expected to average approximately 88,000 tonnes of copper annually over the next three years.
• Continued Strong Gold Production: The company forecasts average annual consolidated gold production of 272,500 ounces over the next three years, reflecting robust production in Manitoba and contributions from high-grade gold zones at Pampacancha in Peru. Annual gold production from Snow Lake is expected to average over 193,000 ounces over the next three years. The high-grade Pampacancha satellite deposit is expected to contribute to higher copper and gold production until the third quarter of 2025.
• Advancement of the Copper World Project: The Copper World project in Arizona is identified as a significant long-term growth driver. Hudbay continues to de-risk this project, with remaining state-level permits expected in 2024, and a construction sanctioning decision anticipated in 2026. Once in production, Copper World is expected to increase Hudbay's consolidated copper production by more than 50% from current levels.
• Mill Improvement Projects and Operational Efficiencies: Hudbay is implementing brownfield mill improvement projects in British Columbia and Peru, which are expected to increase mill throughput levels starting in 2026. At Constancia, engineering studies for the construction of a pebble crusher are advancing, commencing in late 2025, which is expected to further increase throughput levels starting in the second half of 2026. These efforts, along with continuous operational improvement and cost control across business units, are anticipated to enhance production and margins.

Share Repurchases

• Hudbay Minerals received approval for a Normal Course Issuer Bid (NCIB) to repurchase up to 19,751,983 shares, representing 5% of its outstanding shares, over a 12-month period from May 30, 2025, to May 29, 2026.
• This NCIB marks the company's first-time share buyback program in recent years, driven by management's belief that the market price of its shares may not fully reflect their intrinsic value.
• The share repurchases will be funded through the company's cash and cash equivalents, along with cash flow generated from operations.

Share Issuance

• Hudbay completed an equity offering that contributed to a significant reduction in its net debt during 2024.
• The company reported equity issuance, net of share issuance costs, of $386.2 million for the six months ended June 30, 2024.
• For the six months ended June 30, 2025, share issuance, net of costs, amounted to $4.2 million.

Inbound Investments

• Mitsubishi Corporation agreed to a strategic investment of $600 million for a 30% interest in Copper World LLC, which owns the fully-permitted Copper World project in Arizona.
• The $600 million investment includes an initial cash payment of $420 million for the equity interest at closing and a subsequent $180 million matching contribution within 18 months.
• This partnership significantly reduces Hudbay's estimated remaining capital contributions for the Copper World project to approximately $200 million and defers Hudbay's first capital contribution until at least 2028.

Outbound Investments

• Hudbay completed the buyout of the remaining 25% interest in the Copper Mountain asset in March 2025, taking full control of its operations to optimize and ramp up production.

Capital Expenditures

• Hudbay projects total capital expenditures of $580 million for 2025, with a primary focus on the Copper World project and other growth initiatives. This includes $365 million for sustaining capital and $215 million for growth capital.
• Key growth capital projects for 2025 include $75 million for mill upgrades in British Columbia, $25 million for mill throughput improvements in Peru, and $110 million for Copper World feasibility studies and de-risking activities in Arizona.
• In 2024, total sustaining capital expenditures were $293.1 million, with growth capital expenditures for Peru and Manitoba totaling $7.8 million.