Canada’s Hudbay delivers record Q3 adjusted earnings
Canadian diversified miner Hudbay Minerals has delivered record quarterly adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $413-million in the three months ended September 30.
This marked a 29% quarter-on-quarter increase compared to the second quarter’s adjusted Ebitda of $321-million, mostly owing to higher realised copper prices and higher copper, gold and silver sales volumes.
The group’s 12-month adjusted Ebitda amounted to a record $1.5-billion while it is on track to meet its full-year copper guidance for the twelfth consecutive year and its full-year gold guidance for the sixth consecutive year.
“The strength of our diversified operating platform and the dedication of our people helped to achieve a new record for mill throughput at Constancia, significant increases in mine productivity at Lalor, record mill throughput at New Britannia and record gold recoveries at Stall during the third quarter.
“Our three-year operational turnaround at Copper Mountain has delivered the first quarter of positive free cashflow since our acquisition. We are extremely well positioned to continue to prudently reinvest in several high-return growth opportunities across the business to further enhance our exposure to copper and gold,” comments Hudbay CEO Peter Kukielski.
CFO Eugene Lei adds that Hudbay’s diversified operations in Canada and Peru continued to achieve strong copper and gold production, with operating efficiencies that offset external cost pressures, and allowed the company to improve its 2026 full-year consolidated cash cost guidance for a second time this year, and also improve its 2026 full-year sustaining cash cost guidance.
The company’s consolidated cash cost, net of byproduct credits, was $0.19/lb in the third quarter, compared with $0.40/lb in the second quarter.
Hudbay generated more than $200-million in free cashflow in the reporting quarter and more than $400-million free cashflow in the year-to-date – even after investing $325-million in sustaining capital across operations.
Lei confirms the strong cashflow generation enables the company to fund its share of the Copper World development, which it reached a final investment decision on earlier this year together with Mitsubishi.
Hudbay produces copper, gold, silver, zinc and molybdenum from operations in Canada, Peru and the US. The company generated record revenue of $765-million in the quarter under review, with net earnings attributable to owners having amounted to $149-million, or $0.34 apiece.
The group’s consolidated copper production of 30 152 t and consolidated gold production of 69 513 oz in the quarter represented quarter-on-quarter increases of 7% and 36%, respectively.
Hudbay aims to produce between 110 000 t and 138 000 t of copper in the full year and between 217 000 oz and 272 000 oz of gold.
Silver, zinc and molybdenum production amounted to 897 578 oz, 3 691 t and 301 t, respectively, in the quarter under review.
Hudbay declared a quarterly dividend of C$0.01 apiece on November 11.