Q1 2025 Hudbay Minerals Inc Earnings Call

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Operator: Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the HudBay Minerals Incorporated first quarter 2025 results conference call. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question and answer session. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero.

Speaker Change: Good morning, ladies and gentlemen, thank you for standing by welcome to the HUD Bay Minerals incorporated first quarter 2025 results conference call.

Speaker Change: At this time, all participants are in listen only mode.

Speaker Change: Following the presentation, we will conduct a question and answer session.

Speaker Change: To join the question queue you May Press Star then one on your telephone keypad.

Speaker Change: Should you need assistance during the conference call you May signal, an operator by pressing Star then zero.

Operator: I would like to remind everyone that this conference call is being recorded today, May 12, 2025, at 11 a.m. Eastern Time.

Speaker Change: I would like to remind everyone that this conference call is being recorded today May 12, 2025 at 11, a M eastern time.

Candace Brule: I will now turn the call over to Candace Brule, Vice President, Investment Relations. Please go ahead. Thank you, Operator. Good morning, and welcome to HudBay's 2025 First Quarter Results Conference Call. HudBay's financial results were issued this morning and are available on our website at www.hudbay.com. A corresponding PowerPoint presentation is available in the Investor Events section of our website, and we encourage you to refer to it during this call.

Speaker Change: I will now turn the call over to Candace Brule, Vice President Investor Relations. Please go ahead.

Candace Brule: Thank you operator, good morning, and welcome to HUD Bay's 2025 first quarter results conference call.

Peter Kanelski: I based financial results were issued this morning and are available on our website at Www Dot High Bay Dotcom, a corresponding Powerpoint presentation is available on the investor events section of our website and we encourage you to refer to it during this call. Our presenter today is Peter can kill ski HUD based president and Chief Executive Officer.

Candace Brule: Our presenter today is Peter Kukielski, HudBay's President and Chief Executive Officer, Accompanying Peter for the Q&A portion of the call will be Eugene Lee, our Chief Financial Officer, and Andre Lauzon, our Chief Operating Officer. Please note that comments made on today's call may contain forward-looking information and this information, by its nature, is subject to risks and uncertainties, and as such, actual results may differ materially from the views expressed today. For further information on these risks and uncertainties, please consult the company's relevant filings on CDAR Plus and EDGAR. These documents are also available on our website.

Peter Kanelski: Accompanying Peter for the Q&A portion of the call will be Eugene Lee, our Chief Financial Officer, and Andre loads on our Chief operating officer.

Peter Kanelski: Please note that comments made on today's call may contain forward looking information and this information by its nature is subject to risks and uncertainties and as such actual results may differ materially from the views expressed today.

Speaker Change: For further information on these risks and uncertainties. Please consult the company's relevant filings on SEDAR Postern. Edgar. These documents are also available on our website. As a reminder, all amounts discussed on today's call are in U S dollars, unless otherwise noted and now I'll pass the call over to Peter could kill ski.

Candace Brule: As a reminder, all amounts discussed on today's call are in U.S. dollars unless otherwise noted.

Peter Kukielski: And now I'll pass the call over to Peter Kukielski. Thank you, Candace. Good morning, everyone. And thank you for joining us for today's call. Our strong performance in the first quarter of 2025 demonstrated the benefits of HudBay's unique copper and gold diversification from our enhanced operating platform in North and South America, and our resilience through effective cost control. This has allowed us to continue to generate substantial free cash flow and achieve industry leading margins. Consistent execution across all three of our operations has delivered in-line consolidated copper production and better-than-expected gold production this quarter. We continue to benefit from strong and consistent mill throughput in Peru, higher grades and higher mill throughput in Manitoba, and ongoing optimization efforts in British Columbia.

Peter Kanelski: Thank you Candice good morning, everyone and thank you for joining us for today's call.

Peter Kanelski: Strong performance in the first quarter of 2025 demonstrated the benefits of HUD Bay's unique copper and gold diversification from our enhanced operating platform in North and South America, and our resilience through effective cost control.

Peter Kanelski: This has allowed us to continue to generate substantial free cash flow and achieved industry leading margins.

Peter Kanelski: Consistent execution across all three of our operations has delivered inline consolidated copper production and better than expected gold production this quarter.

Peter Kanelski: We continue to benefit from strong and consistent mill throughput in Peru, higher grades and higher mill throughput in Manitoba and ongoing optimization efforts in British Columbia.

Peter Kukielski: We are extremely well positioned to deliver our full year 2025 consolidated production and cost guidance. We also made significant progress in advancing our growth strategy during the quarter. We consolidated ownership at Copper Mountain to increase our exposure to a high-quality asset in the Tier 1 jurisdiction. And we are now fully permitted at Copper World, which once in production will increase our long-term copper production by more than 50%. We are executing our plan to continue to increase exposure to copper and gold and unlock significant value for all our stakeholders. Turning to slide three, the results in the first quarter reflect stable copper production, complementary gold production, and exceptional cost performance across the business.

Peter Kanelski: We are extremely well positioned to deliver our full year 2025 consolidated production and cost guidance.

Peter Kanelski: We also made significant progress in advancing our growth strategy during the quarter, we consolidated ownership at copper mountain to increase our exposure to a high quality asset in a tier one jurisdiction.

Peter Kanelski: And we are now fully permitted as copperweld, which once in production will increase our long term copper production by more than 50%.

Peter Kanelski: We're executing our plan to continue to increase exposure to copper and gold and unlocked significant value for all our stakeholders.

Peter Kanelski: Turning to slide three the results in the first quarter reflects stable copper production complementary gold production and exceptional cost performance across the business.

Peter Kukielski: Consolidated copper production was 31,000 tons, in line with quarterly cadence expectations. Consolidated gold production was 74,000 ounces, exceeding our expectations for the quarter, primarily due to continued outperformance in Manitoba, which I'll touch on in a moment. We had another quarter of industry leading cost performance with record low consolidated cash costs of negative 45 cents per pound and sustaining cash costs of 72 cents per pound. These costs significantly improved compared to last quarter as a result of higher by-product credits and strong operating cost performance across all business units, partially offset by planned lower production levels in Peru during the quarter.

Peter Kanelski: Consolidated copper production was 31000 tons in line with quarterly cadence expectations.

Peter Kanelski: Consolidated gold production was 74000 ounces exceeding our expectations for the quarter, primarily due to continued outperformance in Manitoba, which I'll touch on in a moment.

Peter Kanelski: We had another quarter of industry, leading cost performance with record low consolidated cash costs of negative <unk> 45 per pound and sustaining cash costs of 72 cents per pound.

Peter Kanelski: These costs significantly improved compared to last quarter as a result of higher byproduct credits and strong operating cost performance across all business units, partially offset by planned lower production levels in Peru during the quarter.

Peter Kukielski: First quarter adjusted EBITDA achieved a new quarterly record of $287 million and represented a further 12% increase compared to the strong adjusted EBITDA generated in the fourth quarter. Adjusted net earnings per share was $0.24 in the first quarter, representing a sharp increase from the fourth quarter as a result of higher gross margins from strong revenue growth on the back of higher realized copper and gold prices and strong unit cost control. We ended the quarter with $583 million in cash and cash equivalents, including short-term investment. Our net debt was $526 million, maintaining our leverage ratio of 0.6 times at the end of the first quarter, in line with the last quarter.

Peter Kanelski: First quarter adjusted EBITDA achieved a new quarterly record of $287 million and represents the third the 12% increase compared to the strong adjusted EBITDA generated in the fourth quarter.

Peter Kanelski: Adjusted net earnings per share was 24 cents in the first quarter, representing a sharp increase from the fourth quarter as a result of higher gross margins from strong revenue growth on the back of higher realized copper and gold prices and strong unit cost control.

Peter Kanelski: We ended the quarter with $583 million in cash and cash equivalents, including short term investments.

Peter Kanelski: Our net debt was $526 million, maintaining a leverage ratio of 0.6 times at the end of the first quarter in line with the last quarter.

Peter Kanelski: HUD Bay has successfully delivered seven consecutive quarters of meaningful free cash flow generation as shown on slide four.

Peter Kukielski: HudBay has successfully delivered seven consecutive quarters of meaningful free cash flow generation as shown in slide four. This is a result of the benefits from recent brownfields investments, continuous operational improvement efforts, and steady cost control across the business. Over the last 12 months, we have generated more than $350 million in free cash flow and nearly $900 million in adjusted EBITDA. While the majority of revenues continue to be derived from copper, gold represented a higher portion of total revenues at 38% in the first quarter, compared to 35% in the fourth quarter of 2024. Our unique copper and gold diversification provides significant leverage to higher copper and gold prices.

Peter Kanelski: This is a result of the benefits from recent brownfields investments continuous operational improvement efforts and steady cost control across the business.

Peter Kanelski: Over the last 12 months, we have generated more than $350 million in free cash flow and nearly $900 million in adjusted EBITDA.

Peter Kanelski: While the majority of revenues continue to be derived from copper gold represented a higher portion of total revenues at 38% in the first quarter compared to 35% in the fourth quarter of 2024.

Peter Kanelski: Oh unique copper and gold diversification provides significant leverage to higher copper and gold prices.

Peter Kukielski: For every 10% increase in annual copper price, operating cash flows are expected to increase by an additional $100 million. And a similar 10% increase in annual gold price adds $56 million to operating cash flows. The unique copper and gold diversification, together with strong operating cost performance at all operations, continues to position HudBay as the lowest cost copper producer among our peers. Our fortified balance sheets and robust free cash flow generation will allow us to continue to prudently reinvest in our portfolio of attractive high-return brownfield and greenfield opportunities to drive near-term and long-term production growth. Now turning to our operating assets, starting on slide five, Peru's first quarter production was in line with quarterly cadence expectations as we are completing the final stripping phase at Pampacancha.

Peter Kanelski: For every 10% increase in annual copper price operating cash flows are expected to increase by an additional $100 million.

Peter Kanelski: And a similar 10% increase in annual gold price adds $56 million to operating cash flows.

Peter Kanelski: The unique copper and gold diversification together with strong operating cost performance at all operations continues to position Hebei is the lowest cost copper producer among our peers.

Peter Kanelski: Our fortified balance sheet and robust free cash flow generation will allow us to continue to prudently reinvest in our portfolio of attractive high return brownfield and greenfield opportunities to drive near term and long term production growth.

Peter Kanelski: Now turning to our operating assets starting on slide five.

Peter Kanelski: Peru's first quarter production was in line with quarterly cadence expectations. As we are completing the final stripping phase of pump a gunshot cleansed.

Peter Kukielski: Constancia produced 20,000 tons of copper, 8,000 ounces of gold, 550,000 ounces of silver, and approximately 400 tons of molybdenum. We are on track to achieve our 2025 production guidance for all metals in Peru. The Constantia mill achieved an average of approximately 90,000 tons per day in the first quarter, consistent with recent quarters and far exceeding original design capacity. Mill recoveries for all metals remained in line with our metallurgical models for the ore type that was being processed. The operations delivered better than expected cost performance in the first quarter. Combined unit operating costs were $11.09 per ton, a 27% improvement over the fourth quarter as we experienced lower overall on-site costs than the previous quarter was impacted by a planned plant shutdown.

Peter Kanelski: Constancia produced 20000 tons of copper 8000 ounces of gold 550000 ounces of silver and approximately 400 tons of molybdenum.

Peter Kanelski: We are on track to achieve our 2025 production guidance for all metals in Peru.

Peter Kanelski: The Constancia mill achieved an average of approximately 90000 tonnes per day in the first quarter consistent with recent quarters and far exceeding the original design capacity.

Peter Kanelski: Mill recoveries for all metals remained in line with our metallurgical models for the ore type that was being processed.

Peter Kanelski: The operations delivered better than expected cost performance in the first quarter combined unit operating costs were $11 nine per ton, a 27% improvement over the fourth quarter as we experienced lower overall onsite costs in the previous quarter was impacted by a planned plant shutdown.

Peter Kukielski: Our unit operating cost performance continues to position Constancia as one of the lowest cost open pit copper mines in South America. Cash costs in the first quarter were $1.11 per pound, which outperformed our quarterly cadence expectations as a result of strong operating cost performance and higher byproduct prices. Cash costs outperformed the low end of the 2025 guidance range, positioning us well to achieve the full year cash cost guidance in Peru. Looking forward, we are advancing engineering studies for the construction of a pebble crusher at Constantia commencing in late 2025. This is expected to further increase throughput levels starting in the second half of 2026.

Peter Kanelski: Our unit operating cost performance continues to position Constancia is one of the lowest cost open pit copper mines in South America.

Peter Kanelski: Cash costs in the first quarter were $1.11 per pound, which outperformed our quarterly cadence expectations. As a result of strong operating cost performance and higher byproduct prices.

Peter Kanelski: Cash costs outperformed the low end of the 2025 guidance range positioning us well to achieve the full year cash cost guidance in Peru.

Peter Kanelski: Looking forward, we are advancing engineering studies for the construction of a pebble crusher constancia commencing in late 2025.

Peter Kanelski: This is expected to further increase throughput levels starting in the second half of 2026.

Peter Kanelski: In Manitoba, we achieved impressive metal production and cost performance in the quarter as shown on slide six.

Peter Kukielski: In Manitoba, we achieved impressive metal production and cost performance in the quarter as shown on slide six. This resulted in gold production and cash costs significantly exceeding our budgeted targets for the quarter. The operations produced 60,000 ounces of gold, a meaningful 17% increase compared to the fourth quarter due to higher grades. The operations also produced 3.5 thousand tons of copper, 6.3 thousand tons of zinc, and 286 thousand ounces of silver in the first quarter. We saw significant improvements in ore quality at Laroor, which aligns with the improvements in mining techniques we have been implementing, including long-haul muck fragmentation and anticipated higher-grade precious metal sequencing.

Peter Kanelski: This resulted in gold production and cash cost significantly exceeding our budgeted targets for the quarter.

Peter Kanelski: The operations produced 60000 ounces of gold a meaningful 17% increase compared to the fourth quarter due to higher grades the.

Peter Kanelski: The operation has also produced three 5000 tonnes of copper six 3000 tons of zinc and 286000 ounces of silver in the first quarter.

We saw significant improvements in all quality at Lalor, which aligns with the improvements in mining techniques, we have been implementing including long hold muck fragmentation and anticipated higher grade precious metals sequences.

Recent enhancements at both the new Britannia install mills have been contributing to the strong performance in snow Lake.

Peter Kukielski: Recent enhancements at both the New Britannia and Stall Mills have been contributing to the strong performance in Snow Lake. New Britannia achieved an average throughput of 2,100 tons per day in the first quarter with the installation of new elongated cyclones. This upgrade mirrors successful upgrades previously completed at stall as we continue to look for low capital projects to boost throughput while maintaining strong gold recovery. New Britannia gold recoveries of 90% were consistent with the fourth quarter. At the Stall Mill, a slight quarter-over-quarter reduction in throughput occurred as we were able to divert more ore to New Britannia.

Peter Kanelski: <unk> achieved an average throughput of 2100 tonnes per day in the first quarter with the installation of new elongated cycle times.

Peter Kanelski: This upgrade mirrors successful upgrades previously completed its toll as we continue to look for low capital projects to boost throughput, while maintaining strong gold recoveries.

Peter Kanelski: New Britannia gold recoveries of 90% were consistent with the fourth quarter.

Peter Kanelski: At the stall mill is slight quarter over quarter reduction in throughput occurred as we were able to divert more or two new Britannia.

Peter Kukielski: The mill achieved gold recoveries of 70% in the quarter, realizing the efforts of our recent Recovery Improvement Program. The Manitoba operations continue to drive operating efficiencies resulting in improved cost performance on both a unit operating basis and on a cash cost basis. Gold cash costs were $376 per ounce, a 38% decrease compared to the fourth quarter as a result of higher gold production, lower mining and milling costs, and favorable exchange rates.

Peter Kanelski: <unk> achieved gold recoveries of 70% in the quarter realizing the efforts of our recent recovery improvement programs.

Peter Kanelski: The Manitoba operations continued to drive operating efficiencies, resulting in improved cost performance on both a unit operating basis and on a cash cost basis.

Peter Kanelski: Gold cash costs were $376 per ounce, a 38% decrease compared to the fourth quarter as a result of higher gold production lower mining and milling costs and favorable exchange rates.

Peter Kukielski: We are well on track to achieve our production guidance for all metals and cash cost guidance in Manitoba in 2025.

Peter Kanelski: We are well on track to achieve our production guidance for all metals and cash cost guidance in Manitoba in 2025.

Peter Kanelski: Moving to our third operating business units on slide seven our British Columbia operations benefited from ongoing optimization efforts in the first quarter.

Peter Kukielski: Moving to our third operating business unit on slide 7, our British Columbia operations benefited from ongoing optimization efforts in the first quarter. We continue to focus on advancing our optimization plans for Copper Mountain, including opening up the mine and optimizing the mine ore feed for the plant, as well as implementing plant improvement initiatives. This has resulted in increased total tons moved and improved mill reliability. The operations produced 7,000 tons of copper, 5.6 thousand ounces of gold and approximately 80,000 ounces of silver. Production of all metals increased compared to the fourth quarter, largely due to higher grades.

Peter Kanelski: We continue to focus on advancing our optimization plans for copper mountain, including opening up the mine and optimizing the mine ore feed for the plant as well as implementing plant improvement initiatives.

Peter Kanelski: This has resulted in increased total tonnes moved and improved mill reliability.

Peter Kanelski: The operations produced 7000 tonnes of copper five 6000 ounces of gold and approximately 80000 ounces of silver production.

Peter Kanelski: Production of all metals increased compared to the fourth quarter largely due to higher grades.

Peter Kukielski: We are on track to achieve our 2025 production guidance for all metals in British Columbia and we continue to expect high production levels in the second half of the year associated with the completion of mill improvement projects. On the mining side, we continue to execute the three-year accelerated stripping program to bring higher-grade ore into the mine plan. The focus in the quarter was on mining efficiencies and operator recruitment to effectively utilize the available haul truck fleet. As a result, total material moved is expected to continue to increase quarter over quarter in 2025 as per the mine plan.

Peter Kanelski: We are on track to achieve our 2025 production guidance for all metals in British Columbia, and we continue to expect higher production levels in the second half of the year associated with the completion of mill improvement projects.

Peter Kanelski: On the mining side, we continue to execute the three year accelerated stripping program to bring higher grade ore into the mine plant.

Peter Kanelski: The focus in the quarter was on mining efficiencies and operator recruitment to effectively utilize the available hold truck fleet.

Peter Kanelski: As a result total material moved is expected to continue to increase quarter over quarter in 2025 as per the mine plan.

Peter Kukielski: Mill throughput in the first quarter was similar to the fourth quarter and a number of initiatives were implemented to increase throughput later this year. Additionally, with the planned conversion of the third ball mill to a second sag mill in the second half of 2025, mill throughput is anticipated to ramp up towards 50,000 times per day in 2026. The accelerated stripping efforts unlocked a higher-grade mining sequence during the first quarter, which reduced the use of stockpiles for ore feed and enabled higher milled copper and gold grades in the quart compared to last quarter. Copper recoveries were 78% and gold recoveries were 63% in the quarter.

Peter Kanelski: Mill throughput in the first quarter was similar to the fourth quarter and a number of initiatives were implemented to increase throughput later this year.

Peter Kanelski: Additionally, with the planned conversion of the third ball mill to a second Sag mill in the second half of 2025 mill throughput is anticipated to ramp up towards 50000 tonnes per day in 2026.

Peter Kanelski: The accelerated stripping if it's unlocked a higher grade mining sequence during the first quarter, which reduced the use of stockpiles for feed and enabled higher milled copper and gold grades in the quarter compared to last quarter.

Peter Kanelski: Copper recoveries was 78% and gold recoveries was 63% in the quarter.

Peter Kukielski: Similar to our other operations, British Columbia achieved strong cost performance, cash costs were $2.44 per pound in the quarter and improvement over the fourth quarter as a result of higher by-product credits and the realized benefits from ongoing optimization efforts. We are on track to achieve our 2025 cash cost guidance range in British Columbia.

Peter Kanelski: Similar to our other operations British Columbia achieved strong cost performance cash costs with $2.44 per pound in the quarter an improvement over the fourth quarter as a result of higher byproduct credits and the realized benefits from ongoing optimization efforts.

We are on track to achieve our 2025 cash cost guidance range in British Columbia.

Peter Kukielski: At the end of March, we announced the acquisition of Mitsubishi Materials' 25% minority interest in coffee mounts.

Peter Kanelski: At the end of March we announced the acquisition of Mitsubishi materials, 25% minority interest in copper mountain.

Peter Kukielski: The transaction closed at the end of April and resulted in HudBay consolidating 100% interest in the Copper Mountain mine. This highly accretive transaction increases our exposure to a long life, high quality copper asset in a tier one mining jurisdiction and demonstrates our conviction in the long term benefits from our optimization efforts. It also reinforces HudBay's position as the second largest copper producer in Canada.

Peter Kanelski: Transaction closed at the end of April and resulted in Hebei consolidating 100% interest in the cough Mountain mine.

Peter Kanelski: This highly accretive transaction increases our exposure to a long life high quality copper asset in a tier one mining jurisdiction and demonstrates our conviction in the long term benefits from our optimization efforts.

Peter Kanelski: It also reinforces HUD based position as the second largest copper producer in Canada.

Peter Kukielski: At the end of March, we released our three-year production outlook with our annual reserve and resource update, as summarized on slide eight. In Peru, annual production is expected to average approximately 88,000 tons of copper and 31,000 ounces of gold over the next three years. This reflects steady copper production levels as higher mill throughput is expected to offset lower grades starting in 2026 after the depletion of Pampacancha in late 2025.

Peter Kanelski: At the end of March we released our three year production outlook with our annual reserve and resource update as summarized on slide eight.

Peter Kanelski: In Peru annual production is expected to average approximately 88000 tons of copper and 31000 ounces of gold over the next three years. This.

Peter Kanelski: This reflects steady copper production levels as higher mill throughput is expected to offset lower grades starting in 2026 after the depletion of pump a country in late 2025.

Peter Kukielski: In Manitoba, the life of mine production schedule has been optimized for higher mill throughput rates at New Britannia, maximizing gold production and cash flows. Snow Lake annual gold production is expected to average more than 193,000 ounces over the next three years. We increased the gold production guidance in all three years compared to prior guidance and the most recent technical report as a result of the continued impressive operating performance. In British Columbia, annual production is expected to average approximately 44,000 tons of copper and 28.6 thousand ounces of gold over the next three years. Upon completion of HudBay's optimization activities, 2027 copper production is expected to be 60,000 tonnes, representing a 127% increase from 2024.

Peter Kanelski: In Manitoba the life of mine production schedule has been optimized for higher mill throughput rates at new Britannia maximizing gold production and cash flows.

Peter Kanelski: Snow Lake annual gold production is expected to average more than 193000 ounces over the next three years.

Peter Kanelski: We increased the gold production guidance in all three years compared to prior guidance and the most recent technical report as a result of the continued impressive operating performance.

Peter Kanelski: In British Columbia annual production is expected to average approximately 44000 tons of copper and 28.6 thousand ounces of gold over the next three years.

Peter Kanelski: Upon completion of HUD Bay's optimization activities 2027, copper production is expected to be 60000 tonnes, representing 827% increase from 2024.

Peter Kukielski: The 2027 copper production guidance is 20% higher than the contemplated production in the most recent technical report as a result of the deferral of higher grades from 2026 to 2027 with the current accelerated stripping schedule. Consolidated coffer production over the next three years is expected to average 144,000 tons, representing a 4% increase from 2024. This increase is driven by higher copper production in British Columbia, which more than offsets the depletion of the Pampacancho deposit in Peru at the end of 2025. Consolidated gold production over the next three years is expected to average 253,000 ounces with higher gold production levels in Manitoba compared to prior guidance.

Peter Kanelski: The 2027 copper production guidance is 20% higher than the contemplated production in the most recent technical report as a result of the deferral of higher grades from 'twenty to 'twenty six to 2027 with the current accelerated stripping schedule.

Peter Kanelski: Consolidated copper production over the next three years is expected to average 144000 tonnes, representing a 4% increase from 2024.

Peter Kanelski: This increase is driven by higher copper production in British Columbia, which more than offsets the depletion of the pump a conscious deposit in Peru at the end of 2025.

Peter Kanelski: Consolidated gold production over the next three years is expected to average 253000 ounces with higher gold production levels in Manitoba compared to prior guidance.

Peter Kukielski: These steady copper and gold production levels over the next three years will allow us to continue to generate meaningful cash flow to reinvest in our high return brownfield opportunities and our copper world growth project.

Peter Kanelski: These steady copper and gold production levels over the next three years will allow us to continue to generate meaningful cash flow to reinvest in our high return brownfield opportunities and our copperweld growth project.

Peter Kanelski: Turning to slide nine Copperweld is the most advanced greenfield projects in our portfolio and offer significant copper exposure and highly attractive project economics.

Peter Kukielski: Turning to slide nine, Copper World is the most advanced greenfield project in our portfolio and offers significant copper exposure and highly attractive project economics. Copper World is a fully permitted project on private land and is expected to produce 85,000 tons of copper per year over the initial 20-year mine life in the first phase. The project generates an NPV of $1.1 billion and an after-tax IRR of 19% at a profit price of $3.75 per pound. Copper World is one of the highest grade open pit copper projects in the Americas with mineral reserves of 385 million tons at 0.54% copper.

Peter Kanelski: Copperweld is a fully permitted project on private land and is expected to produce 85000 tons of copper per year over the initial 20 year mine life in the first phase the project generates an NPV of $1.1 billion and an after tax IRR of 19% at a copper price of $3.75.

Peter Kanelski: Per pound.

Peter Kanelski: Copperweld as one of the highest grade open pit copper projects in the Americas with mineral reserves of 385 million tonnes at 0.54% copper.

Peter Kukielski: Once in production, Copper World is expected to be the fourth-largest copper producer in the United States and will increase our consolidated copper production by more than 50% from current levels, as mentioned earlier. Copper World will be a meaningful copper producer in the U.S. domestic supply chain, producing made-in-America copper cathode to be sold to domestic U.S. customers.

Peter Kanelski: Once in production Copperweld is expected to be the fourth largest copper producer in the United States and will increase our consolidated copper production by more than 50% from current levels as mentioned earlier.

Peter Kanelski: Copperweld will be a meaningful copper producer in the U S domestic supply chain, producing maiden America copper cathode to be sold to domestic U S customers.

Peter Kanelski: In January of 2025, we received the final major permits required for the development and operation of Copperweld <unk>.

Peter Kukielski: In January of 2025, we received the final major permit required for the development and operation of copper weld. Since then, we have commenced the Minority Joint Venture Partnership process and have been focused on advancing feasibility studies to progress the project towards a potential sanctioned decision in 2026.

Peter Kanelski: Since then we have commenced the minority joint venture partnership process and they've been focused on advancing feasibility studies to progress the project towards a potential sanction decision in 2026.

Peter Kanelski: We have several exploration opportunities as part of our long term growth pipeline, including many promising targets in snow Lake.

Peter Kukielski: We have several exploration opportunities as part of our long-term growth pipeline, including many promising targets in Snow Lake.

Peter Kukielski: Slide 10 summarizes the threefold strategy we are executing with the largest exploration program currently underway in Snow Lake. The first goal is to focus on near-mine exploration at Lalor in 1901 to enhance near-term production and extend mine life. At Lalor Northwest, follow-up drilling continued to intersect copper-gold mineralization, including 16.4 grams per tonne gold over 3.7 metres, as well as 2.6% copper over 3.5 metres. Our plans for 2025 include continued surface drilling at both Laurel Northwest and Laurel Down Plunge to test the extent of the mineralization. Additionally, we released positive step out drilling results at 1901 in March that intersected significant copper gold mineralization, including 14.3% copper over 2.5 meters and 8.3 grams per tonne gold over 3.2 meters.

Peter Kanelski: Slide 10 summarizes the three fold strategy, we are executing with the largest exploration program currently underway in snow Lake.

Peter Kanelski: The first goal is to focus on near mine exploration at Lalor and 19, no one to enhance near term production and extend mine life at Lalor northwest follow up drilling continued to intersect copper gold mineralization, including $16 four grams per ton gold over three seven meters as well as to <unk>.

Peter Kanelski: 6% copper over three five meters.

Our plans for 2025 include continued surface drilling at both La northwest and Laura down plunged test the extent of the mineralization.

Peter Kanelski: Additionally, we released positive step out drilling results at 19 O. One in March that intersected significant copper gold mineralization, including $14, 3% copper over two five meters and eight three grams per ton gold over three two meters.

Peter Kukielski: Further exploration at 1901 is planned for 2025, targeting additional step-out drill holes to potentially extend the ore body and infill drilling to convert inferred mineral resources in the gold lenses to mineral reserves.

Peter Kanelski: Further exploration that 19, no. One is planned for 2025 targeting additional step out drill holes to potentially extend the ore body and infill drilling to convert inferred mineral resources in the gold lenses to mineral reserves.

Peter Kukielski: The second strategic goal is to test regional satellite deposits for potential ore feed to utilize the available processing capacity at our stall mill and further increase production. With our significant Snow Lake land package, we have an attractive portfolio of regional deposits, including the Talbot, Rail, Penn II, Watts, Three Zone, and WIM deposits.

Peter Kanelski: The second strategic goal is to test regional satellite deposits will potential ore feed to utilize the available processing capacity at our stall mill and further increase production.

Peter Kanelski: With our significant snow Lake land package, we have an attractive portfolio of regional deposits, including the Talbot rail into what's three zone and women deposits.

Peter Kukielski: And finally, the third and probably the most exciting goal is to explore our large land package for a new anchor deposit to significantly extend the mine life of our snow lake operation. We are conducting the largest geophysics program in our history in Snow Lake, consisting of 800 kilometers of ground electromagnetic surveys and an extensive airborne geophysical survey.

Peter Kanelski: And finally, the third and probably the most exciting goal is to explore our large land package for a new anchor deposit to significantly extend the mine life of our snow Lake operations.

We are conducting the largest geophysics program in our history in snow Lake consisting of 800 kilometers of ground electromagnetic surveys and an extensive airborne Geophysical survey.

Peter Kukielski: Turning to slide 11, an important part of how we operate is in our commitment to earning trust and building transparency with communities near our operations. In Manitoba, our indigenous relations strategy has been effective in guiding positive relationships with First Nations communities and advancing shared opportunities. As part of this strategy, we are very pleased to have signed two exploration agreements over the first quarter.

Peter Kanelski: Turning to slide 11, and important part of how we operate is in our commitment to earning trust and building transparency with communities near our operations.

Peter Kanelski: In Manitoba are indigenous relations strategy has been effective in guiding positive relationships with first nations communities and advancing shared opportunities.

Peter Kanelski: As part of this strategy. We are very pleased to have signed two exploration agreements over the first quarter.

Peter Kukielski: Our first ever exploration agreement in Manitoba was signed with the Kichiwapa Cree Nation in February, reflecting our commitment to meaningful collaboration as we explore for new mineral resources in Stow Lake and Flin Flon. In April, we signed an exploration agreement with the Moosakahegan Cree Nation, marking a significant step towards building positive relationships on our projects in the Moose Lake region. including the Talbot Copper Zinc Gold Deposit. We expect to commence a summer drill program at Talbot to potentially upgrade the existing mineral resource estimate. Additionally, in Flin Flon, we continue to advance tailings reprocessing studies to recover critical minerals and precious metals while creating environmental and social benefits for the region.

Peter Kanelski: Our first ever exploration agreement in Manitoba was signed with the Kitschy Whopper Cree nation in February reflecting our commitment to meaningful collaboration as we explore for new mineral resources in snow Lake and plentiful.

Peter Kanelski: In April we signed an exploration agreement with a moussaka Hagen cremation, marking a significant step towards building positive relationships on our projects and the Moose Lake region, including the Talbot copper zinc gold deposits.

Peter Kanelski: We expect to commence the summer drill program at Talbot to potentially upgrade the existing mineral resource estimate.

Peter Kanelski: Additionally, insulin phone, we continue to advance tailings reprocessing studies to recover critical minerals in precious metals, while creating environmental and social benefits for the region.

Peter Kukielski: An early economic study on the zinc plant tailings reprocessing opportunity has confirmed the potential for a technically viable reprocessing alternative, and we are progressing with further engineering work.

Peter Kanelski: And early economic study on the zinc plant tailings reprocessing opportunity has confirmed the potential for a technically viable reprocessing alternative.

Peter Kanelski: And we are progressing with further engineering work.

Peter Kukielski: In Peru, the drill permits for the highly prospective Maria Reina and Caballito properties near Constancia continue to proceed through the regulatory process. The Drill Permit Environmental Impact Assessments were approved by the government last year.

Peter Kanelski: In Peru, the drill permits for the highly prospective Maria Reyna in Cabo Youtube properties near Constancia continue to proceed through the regulatory process.

Peter Kanelski: The drill permit environmental impact assessments were approved by the government last year.

Peter Kukielski: The government is carrying out the remaining steps in the regulatory process and is targeting completion in 2025. Once we receive the drill permits, we plan to initiate an extensive 18-month drill program to test the potential of these properties that are located within tracking distance of the Constancia Processing Facility and provide significant growth potential for our Peru business.

Peter Kanelski: The government is carrying out the remaining steps in the regulatory process and is targeting completion in 2025.

Peter Kanelski: Once we receive the drill permits we plan to initiate an extensive 18 month drilling program to test the potential of these properties that are located within trucking distance of the Constancia processing facility and provides significant growth potential for our Peru business.

Peter Kukielski: As part of our long-term pipeline of high-quality growth opportunities, we also have the Mason Copper Project in Nevada.

Peter Kanelski: As part of our long term pipeline of high quality growth opportunities. We also have the Mason copper project in Nevada Mesa.

Peter Kukielski: Mason is one of the largest undeveloped copper porphyry deposits in North America and has the potential to be the third largest copper mine in the United States once in operation. The mine plant contemplates a 27-year mine life with an average annual copper production of roughly 140,000 tons over the first 10 years. We continue to advance our local stakeholder engagement as we advance additional metallurgical studies. While Mason is not as advanced as Copper World, Mason represents a significant opportunity to unlock value in a high-quality copper asset located in the United States.

Peter Kanelski: Mason as one of the largest undeveloped copper porphyry deposits in North America and has the potential to be the third largest copper mine in the United States once in operation.

Peter Kanelski: The mine plan contemplates a 27 year mine life with an average annual copper production of roughly 140000 tons over the first 10 years.

Peter Kanelski: We continue to advance our local stakeholder engagement as we advance additional metallurgical studies.

Peter Kanelski: While Mason is not as advanced as Copperweld Mason represents a significant opportunity to unlock value in our high quality copper asset located in the United States.

Peter Kanelski: Concluding on slide 12, HUD Bay's, leading copper development and exploration pipeline with low cost stable operating platform and tier one jurisdictions offers investors meaningful copper exposure complementary gold exposure and strong near term cash flow generation we.

Peter Kukielski: Concluding on slide 12, HudBay's leading copper development and exploration pipeline and low-cost, stable operating platform in Tier 1 jurisdictions offers investors meaningful copper exposure, complementary gold exposure, and strong near-term cash flow generation. We currently produce more than 130,000 tons of copper per year, which is further augmented by more than 250,000 ounces of gold per year, offering commodity diversification and cash resiliency in volatile pricing environments. We believe that copper has the best long-term supply and demand fundamentals in the sector as global copper mine supply will be unable to meet demand from the global energy transition and AI technology needs.

Peter Kanelski: We currently produce more than 130000 tons of copper per year, which is further augmented by more than 250000 ounces of gold per year, offering commodity diversification and cash flow resiliency in volatile pricing environments.

Peter Kanelski: We believe that copper has the best long term supply and demand fundamentals in the sector as global copper mine supply will be unable to meet demand from the global energy transition and AI technology needs.

Peter Kukielski: HudBay's strong operating platform and resilient balance sheet offers significant upside potential for further value creation at higher copper and gold prices, and as we prudently advance our many high return copper growth opportunities.

Peter Kanelski: HUD based strong operating platform and resilient balance sheet offers significant upside potential for further value creation at higher copper and gold prices and as we prudently advance any high return copper growth opportunities.

Peter Kukielski: And with that, we are pleased to take your questions. Thank you.

And with that we are pleased to take your questions.

Peter Kanelski: Thank you ladies and gentlemen, we will now begin the question and answer session.

Operator: Ladies and gentlemen, we will now begin the question and answer session. To join the question queue, you may press star then 1 on your telephone keypad. You will hear a tone acknowledging a request. If you are using a speakerphone, please pick up your handset before pressing any key. To withdraw your question, please press star then 2. We will pause for a moment as callers join the queue.

Peter Kanelski: To join the question queue you May Press Star then one on your telephone keypad.

Peter Kanelski: You will hear a tone acknowledging your request if you were using a speakerphone. Please pick up your handset before pressing any keys to withdraw. Your question. Please press Star then two we will pause for a moment as callers join the queue.

Orest Wowkodaw: Our first question is from Orest Wowkodaw with Scotiabank. Please go ahead. Hi, good morning.

Peter Kanelski: Our first question is from Auris walk of Dow with Scotiabank. Please go ahead.

Auris Walk: Hi, Good morning, a question around Peru and Constancia.

Orest Wowkodaw: Question around Peru and Constancia. The throughput that you've been operating at has been pretty impressive, close to 90,000 tons a day. Do you, I'm just curious if you think that's sustainable moving forward? Or at what point do you see the ore hardness, perhaps starting to bring that down?

Auris Walk: To put that you've been operating at its been pretty impressive close to 90000 tonnes. A day do you I'm. Just curious if you think that's sustainable moving forward or at what point do you see the ore hardness.

Auris Walk: Perhaps starting to bring that down.

Peter Kukielski: Morning, Orest. Thanks for the question. I mean, we've been super pleased with the performance in Peru. It's actually been pleased with the performance throughout the business in this past quarter. We are fairly confident in operating in Peru at the moment. We think that the results that we have are repeatable.

Tony Laura: Tony Laura Thanks for the question.

Tony Laura: I mean, we've been Super pleased with the performance in Peru, It's actually been pleased with the performance throughout the.

Tony Laura: But the business in this past quarter.

Tony Laura: We are fairly confident in operating in Peru at the moment, we think that the results that we have are repeatable, but why don't I turn it over to Andre to give you a little bit more color about hardness.

André Lauzon: But why don't I turn it over to Andre to give you a little bit more color about how Yeah, hi, Orest, it's Andre. Thanks for the question. So in the quarter, we did, we did actually go through some harder materials. Well, there's some softer and harder material. What our strategy has been is, we've been using pebble rejection since about mid-December, when we get through the harder feeds. And, and even with some of those harder feeds, we're seeing, I know you quote the 90,000 on average with those are with maintenance days and that, we're seeing an excess of some days over 100,000 tons per day.

Speaker Change: Yeah, Hi, Earth foundry.

Speaker Change: Yeah. Thanks for the question.

Speaker Change: So in the quarter, we did a we did actually go through some harder materials, while there's some sort of software and harder material. What our strategy has been is we've been using pebble rejection since about mid December when we get through the harder feeds them and even with some of those harder feeds we're seeing I know you quote the 90000 on average with those.

Speaker Change: With me on things that we're seeing in excess of some days over 100000 tons per day, and we're very pleased with that and so what that does for US is it allows us to push to test the limits of our closely downstream our flotation are thinking errors or pumps all of those in anticipation for the highest.

André Lauzon: And we're very pleased with that. And so what that does for us is, we're, it allows us to push to test the limits of our flow sheet downstream, our flotation, our thickeners, our pumps, all of those in anticipation for the higher throughput when the pebble crushers come in. And so, so, so your question is, is the pebble rejection has been been quite successful. We have the ability to reject probably about a million and a half tons of pebbles a year. And it has two benefits. What the first one, as you mentioned, like you're seeing in throughput, but the other is on grade, because the pebbles that we reject tend to be much lower grade around 0.13 copper.

Speaker Change: With a pebble crushers come in and so.

Speaker Change: To your question is is the purple rejection has been being quite successful we have the ability to reject probably about 1 million tons of pebbles, a year and it has two benefits. The first one is you mentioned that youre seeing in throughput, but the other is on green because the pebbles that we reject tend to be much lower grade.

Speaker Change: Around one three copper and the remaining are Pete is bumped up and we replenished the.

André Lauzon: And the remaining feed is bumped up and we replenish the feed through the sag mills with much higher grade materials. So, so I guess in short, we're pretty comfortable in terms of what we've done to date. And we're going to continue doing that through the course of the year.

Speaker Change: The feed through the Sag mills with much higher raw materials. So.

Speaker Change: So I guess insured we're pretty comfortable in terms of what we've done to date and we were going to continue doing that through the course of the year and then as we can.

André Lauzon: And then, as we, we, Peter mentioned in the in the in the conference call notes, that we're planning on putting pebble crushers in later this year, that will further enhance our production going in 2026 and beyond.

Speaker Change: <unk> mentioned in the conference call no.

Speaker Change: We're planning on putting pebble crushers in later this year.

Speaker Change: That will further enhance our production going in 2026 and beyond.

Orest Wowkodaw: Okay, and as a follow up, the changes to the Peru regulations that you can flex up throughput by up to 10% is that what's the baseline for that in terms of what that's being measured against? Great, Andre.

Speaker Change: Okay and as a follow up.

Speaker Change: The changes to the Peru regulations that you can.

Speaker Change: Next up throughput by up to 10% is that.

Speaker Change: What's the baseline for that in terms of what that's being measured against.

Speaker Change: Great.

Speaker Change: Okay.

Unknown Executive: I believe that the final number, and I don't have it in front of me, it gets up to, is it 20, can you help me Candace, I don't have it in front of me, is it 24 million years? We'll get it to you offline, the actual number, but it's, I believe it's 24.

Speaker Change: I believe the final the final number and I don't have it in front of me.

Speaker Change: It gets up to.

Speaker Change: 'twenty.

Speaker Change: Well, we cannot say I don't have in front of me.

Speaker Change: Hum.

24 million.

Speaker Change:

Speaker Change: If we can we'll get into T offline, the Oxford, the actual number but it's a I believe it's 24.

Speaker Change:

Speaker Change: For the Formula.

Speaker Change: Yes, well have to get back to you on that or is there I.

Orest Wowkodaw: We'll have to get back to you on that, Orest. Okay, thank you very much.

Speaker Change: I don't have it in front of me here.

Speaker Change: Okay. Thank you very much.

Speaker Change: Yes.

Matthew Murphy: The next question is from Matthew Murphy with BMO Capital Markets. Please go ahead. Hi, I'm just looking at the cost performance, strong cost. Q1, and maybe just starting on Manitoba, so stall mill costs were down $10 a ton, quarter over quarter. Anything funny in those numbers? Or can you talk about some of the optimization you're putting in place to achieve these costs? Funny match, sure. I think we've been just really, really pleased with the level of performance of the Manitoba team. So, they've been super disciplined in making sure that they continue to perform. They've done an incredible job at reducing mine dilution and maximizing ore recovery through continuous improvements in the mining process.

Speaker Change: The next question is from Matthew Murphy with BMO capital markets. Please go ahead.

Matthew Murphy: Hi, I'm, just looking at the cost performance strong costs.

Matthew Murphy: In Q1, and then maybe.

Speaker Change: Maybe just starting on Manitoba, so the stall mill costs were down 10 Bucks a ton quarter over quarter anything funny in those numbers or can you talk about some of the optimization you're.

Matthew Murphy: Putting in place to achieve these cost.

Tony Metro: Tony Metro.

Speaker Change: I think we've been just really really pleased with the level of performance of the of the Manitoba team. So they've been super disciplined in making sure that they are.

Tony Metro: <unk> continued to before.

Tony Metro: They've done an incredible job at reducing dilution and maximizing oil recovery through continuous improvements in the mining process.

Operator: I think that these operational improvements, when you combine them with the identification of additional high-grade minerals, Ladies and gentlemen, this is the conference operator. We've lost our connection with the main speaker's location and will rejoin it shortly. Please stand by.

Tony Metro: I think that these operational improvements when you combine them with the identification of additional height.

Speaker Change: Ladies and gentlemen, this is the conference operator, we've lost Ark.

Speaker Change: Connection with the main speakers location and will join us shortly please standby.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: [music].

Speaker Change: Ladies and gentlemen, the main speakers have connected with US. Please go ahead.

Peter Kukielski: Ladies and gentlemen, the main speakers have connected with us. Please go ahead. Sorry about that, Matt. I was saying that the operating team at Lala has done a really, really good job at reducing mining dilution and maximizing ore recovery to the continuous improvement processes in the mining at the mining site. And these operational improvements, when you combine them with the identification of additional high-grade gold resources, have resulted in pretty positive reconciliation of the order of 10% in contained gold that's been extracted compared to our reserve model in 2024. So I think we're in pretty good shape to be able to replicate that.

Speaker Change: Sorry about that Matt I was saying that the operating team at Lauder has done a really really good job at reducing mining dilution and maximizing oil recovery to the continuous improvement.

Speaker Change: Processes in the mining at the mining site and these operational improvements when you combine them with the identification of additional high grade gold resources and resulted in a pretty positive reconciliation of the order of 10% and contained gold has been expected compared to our reserve modeling 2024.

Speaker Change: We're in pretty good shape to be able to replicate that but Andrea would you add anything to that.

André Lauzon: But Andre, would you add anything to that? So, no, no, I have nothing to add there, Peter. Okay, thank you.

Speaker Change: So our normal.

Andrea: Nothing to add there Peter.

Speaker Change: Thank you.

Matthew Murphy: Okay, great.

Speaker Change: Okay, Great and then as another question I'm just interested in a pumper gotcha.

Matthew Murphy: And then as another question, I'm just interested in Pampa Concha. As you're stripping, are you seeing anything that's going to inform how far it goes this year? Or is it? Is it more or less as you expected in terms of what you're seeing in the PIP? It is more or less what you expected. It's going to be depleted by the end, by December of 2025. There really is limited ability to extend it beyond Q4 2025, because the deposits are already well defined. But that said, Constantia is a super strong copper producer, even after the depletion of Pampacancha, and it'll maintain the 85,000 to 90,000 tons of copper production levels in 2026 and beyond.

Speaker Change: As your stripping are you seeing anything that's going to inform how far it goes this year or is it a is it more or less as you expected in terms of what youre seeing in the pet.

Speaker Change: It is Matt it is more or less what do you expect that it's going to be depleted.

Speaker Change: And by December of 2025, and there really is limited ability to extend it beyond Q4 of 2025, because the deposits are already well defined.

Speaker Change: That said no constancia is a super strong copper producer even after the depletion of Pampa <unk> and it will maintain the 85 to 90000 tonnes of copper production levels in 2026 and beyond.

Peter Kukielski: And, you know, as you know, the next satellite opportunity that we have is to explore Maria Reina and Caballito. And those are highly prospective and located within tracking distance of Constantia. And they've got the potential to significantly increase production beyond the 85,000 to 90,000 tons per annum. So yes, short answer to your question is Pampacancha will be depleted in 2025. But we've got line of sight to something much better. And with the improvements that Andre talked about, with throughput at the mine, we're very confident of our ability to sort of maintain production at the level that we're talking about.

Speaker Change: As you know the next satellite opportunity that we have an extraordinary arena and Kevin Utah and those are highly prospective and located within trucking distance of Constancia and they've got the potential to significantly increase production beyond the 85 to 90000 tonnes per annum. So yes short answer to your question is pump country will be featured in 2020.

Speaker Change: But we've got line of sight to something much better and with the improvements that Andre talked about with throughput at the mine, we're very confident of our ability to sort of maintain production at the level that we're talking about.

Speaker Change: Okay. Thank you.

Matthew Murphy: Okay, thank you.

Speaker Change: Welcome.

Ralph Profiti: The next question is from Ralph Profiti with Stiefel. Please go ahead. Thanks, Operator. Good day, everyone.

Ralph <unk>: The next question is from Ralph <unk> with Stifel. Please go ahead.

Ralph <unk>: Thanks, Operator, good day, everyone, Peter and maybe Eugene have you begun the process of prioritizing certain partnerships at copper world.

Ralph Profiti: Peter, and maybe Eugene, have you begun the process of prioritizing certain partnerships at Copper World, narrowing down that list? Or are you still in the process of sort of widening and it's more of a fulsome analysis still? And, you know, specifically, I'm looking at notwithstanding today's interest in the gold price, interest from gold mining partners, has that come in proportion to the gold price? Or has that level of interest from that particular party been Thanks, Ralph. I would say that, you know, the JV process is progressing very well. We've received lots and lots of interest, as you'd expect, given the quality of the asset.

Speaker Change: <unk> down that list or useful in the process of sort of widening and it's more of a fulsome analysis still and specifically I'm looking at notwithstanding today's interest in the gold price our interests from gold mining partners, how does that come in proportion to the gold price or has that level of interest from that particular party been consistent.

Speaker Change: Thanks, Rob I would say that the JV process is progressing very well, we have received lots and lots of interest as you would expect given the quality of the asset.

Peter Kukielski: And I think the fact is that permitted copper development projects in the US are scarce, and permitted conversion facilities that will produce cathode copper from concentrate are non-existent outside of copper weld. So that, layered on with the effect of gold prices, resulted in an extremely robust process. We've had tons of interest. And, yeah, you know, certainly the gold parties have shown interest. I would not say disproportionately. It's nothing beyond what you would expect, but interest has been very, very strong in the motoring of the process, as you'd expect.

Speaker Change: And I think the fact is that permitted copper development projects in the U S. A.

Speaker Change: And permitted.

Speaker Change: Conversion facilities that will produce cathode copper.

Speaker Change: From concentrate on existent outside of Copperweld, so that layered on with the effect of gold prices resulted in an extremely robust process, we've had tons of interest.

Speaker Change: And yes, certainly the both parties have shown interest.

Speaker Change: I would not say disproportionately nothing beyond what you would expect but interest has been very very strong and we're motoring along with the proceeds.

Speaker Change: As you'd expect.

Speaker Change: Okay.

Speaker Change: Okay.

Ralph Profiti: And then you have mentioned Maria Reyna and Kobayito both in the Q&A and your prepared remarks.

Speaker Change: And then you have mentioned a marina and Kobo <unk> both in the Q&A in your prepared remarks, and I'm. Just wondering if you if we can be a little bit more definitive on unexpected completion within 2025 of getting those permits and whether or not it's a stretch to expect certain results are some results within 2025 on drilling.

Peter Kukielski: And I was just wondering if you if we can be a little bit more definitive on on expected completion within 2025 of getting those permits and whether or not it's a stretch to expect certain results or some results within 2025 on drilling. Yeah, it's a good question. So if I back up a little bit, I think that you're aware that the environmental impact assessments for Maria Arena and Caballito were approved last year. We then agreed with the Peruvian government to combine the permitting processes for both satellites so that the government could continue with the remaining regulatory steps for both simultaneously, which streamlines the approach may take a little bit longer, but it'll be more efficient and better for all parties.

Speaker Change: Yeah.

Speaker Change: Yes.

Speaker Change: It's a good question. So if I back up a little bit I think that you are aware that we have the environmental impact assessment.

Maria Reyna: Maria Reyna <unk>.

Maria Reyna: Last year, we then agreed with the Peruvian government to combine the pivoting processes for both.

Maria Reyna: Satellites, so that the government could continue with the remaining regulatory steps, but property simultaneously, which streamlines. The approach may take a little bit a little bit longer, but it'll be more efficient and better all policies.

Peter Kukielski: So, what I'd say is, you know, the process that remains right now is a government-run process. And we're being disciplined, you know, we're not rushing it. I know that, you know, we know from our Pampa country experience that sometimes it takes longer than you might expect. But the key right now is to let the government complete this process. We've been told that it'll be completed this year. We do know that these will be mines one day. And I think that we have the right approach in being patient. I believe that it's certainly worth the wait.

Maria Reyna: So.

Maria Reyna: What I'd say is you know.

Maria Reyna: The process that remains right now is the government drug process and we are being disciplined we are not rushing it I know that we know from our pump a country experience that sometimes it takes longer than you might expect.

Maria Reyna: But the key right now is to let the government completes its process.

Maria Reyna: <unk> been told that it will be completed this year.

Maria Reyna: We do know that these will be minus one day and I think that we have the right approach and be patient.

Maria Reyna: I believe that it's certainly worth the wait with that said I cant really define specifically when we would start drilling it'll be literally as soon as we get the permits in hand, and we expect that that will be concluded this year.

Peter Kukielski: With that said, I can't really define specifically when we would start drilling. It'll be literally as soon as we get the permits in hand. And we expect that that'll be concluded this year. But we can't rush the process.

Maria Reyna: But we can't rush the process.

Ralph Profiti: Thank you, Peter, for those important answers. You're welcome.

Speaker Change: Thank you Peter for those important answers.

Speaker Change: Youre welcome.

Operator: Again, if you have a question, please press star then 1.

Speaker Change: Again, if you have a question. Please press Star then one.

Dalton Baretto: The next question is from Dalton Baretto with Canaccord Genuity. Please go ahead. Thanks, operator. Good morning, Peter and team. And congratulations on a great quarter.

Speaker Change: The next question is from Dalton Barreto with Canaccord Genuity. Please go ahead.

Dalton Barreto: Thanks, operator, and good morning, Peter and team and congratulations on a great quarter.

Dalton Barreto: Peter I'm trying to understand copper world space too in the context of sort of today's world. If you will.

Dalton Baretto: Peter, I'm trying to understand COPPA World Phase 2 in the context of sort of today's world, if you will. And I guess my first question is around permitting for Phase 2. Based on recent executive actions from President Trump, what can you do on Phase 2 permitting to bring it forward, if anything? And what would it take to get Phase 2 on the Fast 41 track? Thanks. Sure. And thank you, Dalton, for those kind comments. I think the first comment that I'd make is that the permitting backdrop in the U.S. is very positive and constructive at the moment.

Speaker Change: And I guess my first question is around permitting for phase two.

Speaker Change: Based on recent executive actions from President Trump what can you do on phase II permitting to bring it forward if anything and what would it take to get phase two on the fast 41 track.

Sure and thank you for that.

Speaker Change: I think the first comment I'd make is that the permitting backdrop in the U S is very positive and constructive at the moment.

Peter Kukielski: So that said, your comment relates to phase two. I'll say that for phase one, it kind of doesn't make a difference because there's only state permits that are required and it's fully permitted. It does certainly help with respect to the idea of advancing phase two a little bit earlier. It also adds to sentiment around phase two, which helps in the joint venture partnering process and it helps all around. I'd also add that it creates a lot more interest potentially in our mason project. With just respect specifically to Phase 2, the focus right now has very much to be on Phase 1 and getting that going.

Speaker Change: So that said your comment relates to page two I will say that for phase one it kind of doesn't make a difference because it is early state permits that are required and it's fully permitted.

Speaker Change: It does certainly help with respect to the idea of advancing phase two a little bit earlier. It also adds to sentiment around phase two.

Speaker Change: Which helps in the joint venture partnering process. It helps all around I would also add that it makes it.

Speaker Change: It creates a lot more interest potentially Mason project.

Speaker Change: Which is.

Speaker Change: Specifically to phase two the focus right now is very much to be on phase, one and getting that going and one wouldnt really wants to.

André Lauzon: And one wouldn't really want to confuse the process of Phase 1 with Phase 2. So the time for advancing Phase 2 is not really now. The time is once we get going with Phase 1. The Fast 41 thing has been around for a long, long time. It goes to previous administrations.

Speaker Change: Confuse the process of phase one with phase two so the time for advancing phase two is not really now the time is once we get going with phase one.

Speaker Change: The fast in the first 41 thing has been around for a long long time, because two previous administration and I think it creates a really good constructive sentiment in the space, but it is not really applicable to the copperweld project.

Dalton Baretto: And I think, you know, it creates a really good constructive sentiment in the space, but it's not really applicable to the Copperwell project. Andre, is there anything you would add to what I've said? No, I think you're quite clear is right now is the plan is the plan. And we're happy with what the government's, you know, promoting, but, but there's no change in what we want to do right now. Great, thanks, guys.

Speaker Change: Andre is there anything you would add to what I've said.

No I think you're quite clear.

Right right now is the plan is the plan and where.

Speaker Change: We're happy with what the government.

Promoting but.

Speaker Change: But theres no change in what we want to do right now.

Speaker Change: Great. Thanks, guys and then maybe just as a follow up on the sort of financing side of copper World as you go on through the.

Eugene Lee: And then maybe just as a follow up on the sort of financing side of Copperworld, as you're going through the JV process, as well as maybe looking at renegotiating the stream, are you putting in mechanisms to build in value for phase two? And if so, how are you thinking about that? Thanks. Hi Dalton, it's Eugene here. Thank you for your question. I think, as Peter outlined, there's lots of robust interest in the copper world as a project, and that includes Phase 2. We're not going to negotiate with the JV over the conference call, so I think we're not at liberty to talk about what value we expect and what people are attributing to it.

Speaker Change: The JV process as well as maybe looking at negotiating the stream are you putting in mechanisms.

Speaker Change: Built in value for phase two and if so how are you thinking about that thanks.

Eugene Lee: Hi, Dalton, it's Eugene here.

Peter Kanelski: Thank you for your question I think as Peter outlined there is lots of robust interest in an <unk> world at the project and that includes a phase two we're not going to negotiate.

Peter Kanelski: The JV over the conference call. So I think we're not at Liberty to talk about with value stack and what people are attributing to it I think holistically as Peter outlined this is a multi phase project with 1 billion tonnes of copper at the highest grade undeveloped copper deposits as the Americas with the lowest capital intensity in that can go on for 20 years on private.

Eugene Lee: I think holistically, as Peter outlined, this is a multi-phase project with a billion tons of copper. The highest-grade undeveloped copper deposit in America is with the lowest capital intensity, and that can go on for 20 years on private land and much more if we get into Phase 2. I think there's value in this asset, and we expect that parties will see that in the JV process. Great. Thanks, Eugene. I'll jump back in queue.

Peter Kanelski: Landed much more if we get into phase III. So I think there is value in this asset.

We expect that.

Peter Kanelski: You will see that in the JV process.

Speaker Change: Great. Thanks, I'll jump back in queue.

Bryce Adams: The next question is from Bryce Adams with Desjardins Securities. Please go ahead.

Speaker Change: The next question is from Bryce Adams with Desjardin Securities. Please go ahead.

Bryce Adams: Hi all, sorry if this was asked already, my call dropped and I had to rejoin, but regarding the buyback program that was board approved, if that's TSX approved, given your growth options, how does it fit into the capital allocation framework, how active do you expect to be, and are there any guideposts for how that program could be used? Hi, and thank you for your question, Bryce. It's Eugene Lee again here. Regarding the NCIB, I think it really reflects the company maturing, and we believe it's good practice for companies of our size to have an NCIB in place, kind of like how we filed the base shelf prospectus last year.

Bryce Adams: Hi, I'm sorry, if this was asked already in my call dropped and I had to rejoin but regarding the buyback program that was board approved if that's T. S X approved given your growth options, how does it fit into the capital allocation framework. How active do you expect to be and are there any guideposts for how that program could be used.

Speaker Change: Hi, Thank you for your question Bryce and Eugene Lee again here regarding the NCI D. I think it really reflects.

Speaker Change: The company maturing and we believe it is good practice for companies of our size to happening in CIB in place.

Speaker Change: How we Wildish base shelf prospectus last year.

Eugene Lee: In the context of the transformed balance sheet, as you highlight, and on the positive end, and fairly volatile markets on the negative end, that kind of some value dislocations, we're going to consider share buybacks, as well as bond repurchases as part of our balanced capital allocation strategy to maximize risk-adjusted returns. We are in a very strong financial position to prudently advance our many high return growth initiatives, like the Copper Mountain Optimization that Peter and Andre talked about, like brownfield projects both in expansion in Peru and Manitoba, and obviously the Copper World Development Project. We have a long-term goal of providing meaningful shareholder returns in the form of sustainable dividends and or share repurchases.

Speaker Change: In the context of the transform balance sheet as you highlighted on the positive end and fairly easy volatile.

Speaker Change: Markets are negative and that's about that kind of result in some valley dislocations, we're going to consider share buybacks as well as bond repurchases as part of our balanced capital allocation strategy to maximize our risk adjusted returns.

Speaker Change: We are very strong financial position to prudently advance our money high return growth initiatives like the copper mountain optimization that Peter and Andre talked about like a brownfield.

Speaker Change: Council projects spoken expansion in Peru, and Manitoba, and obviously, the copper gold development project.

Speaker Change: We have a long term goal of providing a meaningful shareholder returns in the form of sustainable dividends and share repurchases and I think this anti it'd be filing at something that we would then tend to file kind of for many years all of them will give us a facility to consider that holistically as we allocate capital across the platform.

Eugene Lee: I think this NCIB filing is something that we would intend to file for many years to follow and will give us a facility to consider that holistically as we allocate capital across the platform and grow the company sustainably.

Speaker Change: And grow the company sustainably.

Eugene Lee: Thank you, Eugene. So it's good housekeeping, but not a priority. Is that the quick summary? I think if we hadn't filed the NCIB, we don't have the ability to buy back shares. Today, we do, and we'll evaluate that in the context of the opportunities that are available to us, understanding that there are many high return growth projects. And so I would say, we now can answer the question, we can buy back shares versus a month ago, we would not be in a position to. And a year ago, our balance sheet was in no position to.

Speaker Change: Thank you Jay so it's good housekeeping, but not a priority that is that a quick summary.

Speaker Change: I think if we hadn't filed the NCI beat we don't have the ability to buy back shares today, we do and we'll reevaluate that in the context of the opportunities are available to us understanding there are many high growth high return growth projects, So I would say.

We now can answer the question that we can buy back shares versus a month ago.

Speaker Change: Would not be in a position to win a year ago, our balance sheet with no position too. So I think again reflects us maturing at the company and that's something that we would consider in the context of <unk>.

Bryce Adams: So I think, again, it reflects us maturing as a company. And it's something that we would consider in the context of valuations, as well as the opportunities for risk adjusted returns in our portfolio. Okay.

Speaker Change: Valuations as well as the opportunities for <unk>.

Speaker Change: Our risk adjusted returns in our portfolio.

Jane: Okay. Thank you Jane Thanks Goodbye.

Bryce Adams: Thank you, Jane.

Unknown Executive: Thanks, HudBay.

Speaker Change: And the final question today is a follow up from Dalton Barreto with Canaccord Genuity. Please go ahead.

Dalton Baretto: And the final question today is a follow-up from Dalton Baretto with Canaccord Genuity.

Dalton Baretto: Please go ahead. Now, thanks for taking my follow up, guys. Just a quick question on Copper Mountain. Just around New Engerbell, can you just give us an update on sort of where that permitting stands and remind us when that deposit comes into the mine plan? Thanks.

Dalton Barreto: Thanks for taking my follow up guys. Just a quick question on copper mountain.

Speaker Change: Just around new angry about can you just give us an update on sort of where that permitting stands then remind us when that deposit comes into the mine plan.

Speaker Change: Sure Andrew would you like to take that.

André Lauzon: So Andre, would you like to take that? Sure, sure. So the permitting process has been going very well. We've been working very closely with the regulators and the local First Nations, the upper and lower Samoac Mi'kmaq Bands. The process went through initial screening. We just finished what they call a concordance review, which is a process where the government has gone through and agreed that we provided all of the studies and it meets the criteria for what was required. And so now they're going into a, in simple terms, a regulatory review process. And so we hope to be at a positive result by the end of this year or early into next.

Speaker Change: Sure sure. So so the the permitting process has been going very well, we've been working very closely with the regulators.

Speaker Change: First nations in the upper and lower smoking bans.

Speaker Change: The process went through initial screening we just finished the what they call us the Concordance review, which is a process where the government is.

Speaker Change: <unk> gone through and see it and agreed that we provided all of the <unk>.

Speaker Change: Studies and it meets the criteria for rubles required and so now they're going into a wood.

Speaker Change: Simple terms of regulatory review process and so we.

Speaker Change: We hope to be at a positive result by the end of this year or early into next.

André Lauzon: And it's probably within a couple of years that you'd expect to see that production. And that's reflected in our guidance. Great. Thanks for that, Andre. That's all I have.

Speaker Change: It's probably within a couple of years that you'd expect to see that that production that's reflected in our guidance.

Great. Thanks for that Entre, that's all I have.

Speaker Change: This concludes the question and answer session I would like to turn the conference back over to Candace Brule for any closing remarks.

Operator: This concludes the question and answer session.

Candace Brule: I would like to turn the conference back over to Candace Brule for any closing remarks. Thank you, operator. Thank you, everyone, for joining us today. And thanks for your patience as we work through that little technical issue. If you have any further questions, please feel free to reach out to our investor relations team. Thanks and have a great day.

Candace Brule: Thank you operator, thank you everyone for joining us today and thank you for your patience as we work through that little technical issue. If you have any further questions. Please feel free to reach out to our Investor relations team, Thanks and have a great day.

Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. © The Ultimate Parody Site!

Speaker Change: This brings to a close today's conference call. You may disconnect. Your lines. Thank you for participating and have a pleasant day.

Speaker Change: Yeah.

Speaker Change: [music].

Speaker Change: Uh huh.

Speaker Change: [music].