Q3 2025 Hudbay Minerals Inc Earnings Call

Speaker #1: Good ladies and you for morning , gentlemen . Thank standing by . Welcome to the Hudbay . Third quarter , 2025 results conference call .

Operator: Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Hudbay Q3 2025 results Conference Call. At this time, all participants are in listen-only mode, and following the presentation, we will conduct a question-and-answer session. To join the question queue, you may press Star, then one on your telephone keypad. Should you need assistance during the conference call, you may reach an operator by pressing Star, then zero. I would like to remind everyone that this conference call is being recorded today, 12 November, at 11:00 AM Eastern Time. I would now like to turn the conference over to Candace Brûlé, Senior Vice President, Capital Markets and Corporate Affairs. Please go ahead.

Speaker #1: At this time , all participants are in listen only mode and following the presentation , we will question and answer session . To join the question queue , you may press star .

Speaker #1: Then one on your telephone keypad . Should you need during the assistance conference call , you may reach an operator by pressing star .

Speaker #1: Then zero . I would remind like to everyone that this conference call is being recorded . Today , November the 12th at 11 a.m.

Speaker #1: Time Eastern would now like . to turn the I over to Candace Brule conference Vice President , Capital Markets and Corporate Affairs . Please go ahead

Speaker #1: . Thank you .

Candace Brûlé: Thank you, operator. Good morning and welcome to Hudbay's 2025 Q3 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. 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 Lei, 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 SEDAR+ and EDGAR.

Speaker #2: Operator . morning Good and welcome to Hudbay 2020 third Quarter Results Conference Call . Hudbay financial results were issued this morning available on and are our at website WW .

Speaker #2: A corresponding PowerPoint presentation is available in the investor section of our website , and we encourage you to refer to it during this call .

Speaker #2: Our presenter today is Peter Kukielski Hudbay , President and Chief Executive Officer . Accompanying Peter for the Q&A portion of the call will be Eugene Li , our chief Financial Officer , and Andre Lauzon , our chief operating officer .

Speaker #2: 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 #2: For information on these risks and uncertainties , please consult the company's relevant filings on Kdr+ and Edgar . These documents are also available on our website .

Candace Brûlé: These documents are also available on our website. As a reminder, all amounts discussed on today's call are in US dollars unless otherwise noted. Now I'll pass the call over to Peter Kukielski.

Speaker #2: As a reminder , all amounts discussed on today's call are in US dollars , unless otherwise noted . And now I'll pass the call over to Peter Kukielski .

Peter Kukielski: Thank you, Candace Brûlé. Good morning, everyone, and thank you for joining us for today's call. The Q3 was a quarter of resilience for Hudbay as we demonstrated the company's strong operating capabilities and the benefits of our diversified operating platform as we faced mandatory wildfire evacuations in Manitoba and temporary operational interruptions in Peru. The agility of our teams and continued dedication to driving efficiencies and reliable performance helped to minimize the impacts to our operations due to these external events. This has allowed us to maintain the low end of our consolidated copper and gold production guidance ranges for 2025, and we have been able to significantly improve our consolidated cost guidance for the second time this year, which is truly remarkable given the circumstances. We continue to take steps to reduce long-term debt while reinvesting in high-return growth initiatives across the organization.

Speaker #3: Thank you . Candace . morning Good everyone , and thank you for joining us for today's call . The third quarter was a quarter of resilience for Hudbay as we demonstrated the diversified operating of our strong benefits company's capabilities platform .

Speaker #3: wildfire mandatory As we and Manitoba evacuations in temporary operational interruptions in Peru . The agility of our teams and continued dedication to driving efficiencies and reliable performance helped to minimize the impacts to our operations .

Speaker #3: Due to these events external . This us to maintain the of our low end consolidated copper and gold production guidance ranges for 2025 , and we have been able to significantly improve our consolidated cost guidance for the second time this year , which is truly remarkable given the circumstances .

Speaker #3: We continue to take steps to reduce long term debt while reinvesting in high return growth initiatives across the organization . We are delighted to have secured Mitsubishi as a premier long term partner for our Copper World project this quarter , enabling us to unlock significant value in our copper growth pipeline .

Peter Kukielski: We are delighted to have secured Mitsubishi as a premier long-term partner for our Copper World project this quarter, enabling us to unlock significant value in our copper growth pipeline. This transaction further solidifies our financial strength and significantly reduces our share of future equity contributions for the development of Copper World. We look forward to continuing to work with Mitsubishi under this strategic partnership as we advance Copper World towards a sanction decision in 2026 and first production in 2029. Hudbay's unique diversification in copper and gold, coupled with our relentless commitment to cost control, enables us to maintain industry-leading margins and deliver strong and stable cash flows. Slide 3 provides an overview of our Q3 operational and financial performance. Our operations in Manitoba showed remarkable resilience against unprecedented wildfires, prioritizing the safety of our people and communities.

Speaker #3: This transaction further solidifies our strength and financial significantly reduces our share of future equity contributions for the development of copper World . We look forward to continuing to work with Mitsubishi under this strategic partnership as we advance Copper World towards a sanctioned decision in 2026 and first production in 2029 , Hudbay is unique diversification in copper and gold , with coupled relentless commitment to control us to , enables our maintain leading industry margins deliver and strong and stable cash flows .

Speaker #3: Slide three provides an overview of our third quarter operational and financial performance . Our operations in Manitoba showed remarkable resilience against unprecedented wildfires .

Speaker #3: the safety of our people Prioritizing and communities in Peru , the team navigated regional social temporary unrest and interruptions to deliver gold production far exceeding quarterly cadence expectations And in .

Peter Kukielski: In Peru, the team navigated regional social unrest and temporary interruptions to deliver gold productions far exceeding quarterly cadence expectations. In British Columbia, our team made progress with the SAG mill conversion project, called the SAG Two project, to enhance mill throughput and drive future cash flow generation. In light of temporary operational interruptions and production deferrals, our diversified asset portfolio delivered consolidated copper production of 24,000 tons and consolidated gold production of 54,000 ounces in Q3. Consolidated copper and gold production was lower than Q2, primarily due to the impact of the wildfire disruptions that persisted in northern Manitoba for a majority of Q3, as well as the temporary production interruption in Peru for 9 days during the quarter. In addition, mill maintenance and increased processing of lower-grade stockpiles at Copper Mountain contributed to low quarter-over-quarter production.

Speaker #3: British Columbia , our team made progress with the SAG mill conversion project , called the SAG two project , to enhance mill throughput and drive future cash flow generation .

Speaker #3: In light of temporary operational interruptions and production deferrals, our diversified asset portfolio delivered consolidated copper production of 24,000 tonnes and consolidated gold production of 54,000 oz in the third quarter.

Speaker #3: Consolidated copper and gold production was lower than the second quarter , primarily due to the impact of the wildfire disruptions that persisted in northern Manitoba for a majority of the third quarter , as well as the temporary production interruption in Peru for nine days during the quarter .

Speaker #3: In addition , mill maintenance and increased processing of lower grade stockpiles at Copper Mountain contributed to lower quarter over quarter production . Consolidated silver production was zinc 730,000oz and production was 548 tonnes .

Peter Kukielski: Consolidated silver production was 730,000 ounces, and zinc production was 548 tons in the quarter. Adjusted EBITDA was $143 million in Q3, a decrease compared to Q2, primarily due to the temporary operational interruptions I mentioned, as well as lower sales volumes as a result of a delayed 20,000 dry metric tons copper concentrate shipments in Peru with high gold content, valued at approximately $60 million. This shipment was expected to be sold at the end of September, ocean swells at the port prevented it from being loaded and shipped until early October. Cash generated from operating activities was $114 million in Q3, and operating cash flow before change in non-cash working capital was $70 million.

Speaker #3: In the quarter, adjusted EBITDA was $143 million in the third quarter, a decrease compared to the second quarter, primarily due to the temporary operational interruptions I mentioned, as well as lower sales volumes.

Speaker #3: as As a result of a delayed 20,000 dry metric ton copper concentrate shipments in Peru with high gold content valued at approximately $60 million .

Speaker #3: This shipment was expected to be sold at the end of September , but ocean swells at the port prevented it from being loaded and shipped until early October .

Speaker #3: Cash generated from operating activities was $114 million in the third quarter , operating and cash flow before change in non-cash working capital was $70 million .

Speaker #3: Adjusted net earnings were $0.03 per share in the third quarter , after adjusting for various non-cash items on a pre-tax basis , including $322 million impairment a reversal related to Copper World , a $15 million contingent received from a payment non-core asset sale and various mark to market adjustments during the third We continued quarter .

Peter Kukielski: Adjusted net earnings were $0.03 per share in Q3 after adjusting for various non-cash items on a pre-tax basis, including a $322 million impairment reversal related to Copper World, a $15 million contingent payment received from a non-core asset sale, and various mark-to-market adjustments. During Q3, we continued to demonstrate industry-leading cost performance with consolidated cash costs of $0.42 per pound and consolidated sustaining cash costs of $2.09. These costs increased compared to the prior quarter, primarily as a result of lower gold by-product credits in Manitoba, partially offset by strong gold production in Peru.

Speaker #3: to demonstrate industry leading cost performance with consolidated cash costs of $0.42 per pound and consolidated sustaining cash costs of $2.09 . These costs increased compared to the prior quarter , primarily as a result of lower gold byproduct credits in Manitoba , partially offset by strong gold production in Peru .

Speaker #3: While we have reaffirmed our consolidated full year production for all primary guidance we are anticipating strong production in the we now fourth quarter , expect consolidated year full copper and gold production to be near the end of the low guidance ranges .

Peter Kukielski: While we have reaffirmed our consolidated full-year production guidance for all primary metals and we are anticipating strong production in Q4, we now expect consolidated full-year copper and gold production to be near the low end of the guidance ranges. We believe our ability to maintain our initial production guidance in the face of the recent operational interruptions is remarkable, and I am extremely proud of the team. With the strong cost performance at all our operations year to date and increased exposure to gold by-product credits, we have further improved our full-year consolidated cash cost guidance to a range of $0.15 to 0.35 per pound of copper from the previously reduced range of $0.65 to 0.85 per pound.

Speaker #3: believe We our ability to maintain our initial production guidance in the recent operational interruptions is remarkable , and I am extremely proud of the team .

Speaker #3: strong With the cost , performance at all , our operations year to date and increased exposure to gold byproduct credits . We have further improved our full year consolidated cash cost guidance to a range of $0.15 to $0.35 per pound of copper from the previously reduced range of $0.65 to $0.85 per pound .

Peter Kukielski: We are also improving our consolidated sustaining cash cost guidance range to $1.85 to $2.25 per pound of copper from the original guidance range of $2.25 to $2.65 per pound. Along with these operating cost improvements, we are also expecting total capital expenditures to be $35 million lower than the original guidance, primarily due to deferring certain expenditures to 2026. This includes $15 million in reduced sustaining capital expenditures as a result of the temporary operational interruptions and $20 million in lower growth capital expenditures that have been deferred to 2026. Turning to slide 4. We continued to further reduce debt during the quarter despite lower consolidated free cash flows. Our Peru and Manitoba operations generated positive free cash flow in the quarter, despite the temporary production interruptions.

Speaker #3: We are also improving our consolidated sustaining cash cost guidance range to $1.85 to $2.25 per pound of copper from the original guidance range of $2.25 to $2.65 per pound .

Speaker #3: Along with these operating cost improvements, we are also expecting total capital expenditures to be $35 million, lower than the original guidance, primarily due to deferring certain expenditures to 2026.

Speaker #3: This includes $15 million in reduced sustaining capital expenditures as a result of the temporary operational interruptions, and $20 million in lower growth capital expenditures that have been deferred to 2026.

Speaker #3: Turning to slide four . We continue to further reduce debt during the quarter despite lower consolidated free cash flows Peruvian . Our Manitoba operations generated positive free cash flow in the quarter , despite the temporary production interruptions .

Speaker #3: This was offset by our continued investment in optimizing our British Columbia operations with the planned stripping activities . Consolidated cash flow would have been free positive if the excess copper concentrate inventory in Peru was sold at the end of September .

Peter Kukielski: This was offset by our continued investment in optimizing our British Columbia operations with the planned stripping activities. Consolidated free cash flow would have been positive if the excess copper concentrate inventory in Peru was sold at the end of September. To continue our prudent balance sheet management, we repurchased and retired $13.2 million of senior unsecured notes through open market purchases at a discount to par during Q3. Following the quarter end, we repurchased and retired an additional $20 million in senior unsecured notes, reducing our total principal debt levels to $1 billion. Since the beginning of 2024, we have reduced total debt and gold prepay liabilities by approximately $330 million.

Speaker #3: To continue our prudent balance sheet management , we repurchased and retired $13.2 million of senior unsecured notes through open market purchases at a discount to par .

Speaker #3: During the third quarter . Following the quarter end , we repurchased and retired an additional $20 million in senior unsecured notes , reducing our total principal debt levels to $1 billion since the beginning of 2024 .

Speaker #3: We have reduced total debt and gold prepay liabilities by approximately $330 million. We ended the quarter with total liquidity of $1.04 billion, including $611 million in cash and cash equivalents and undrawn availability of $425 million under the revolving credit facilities.

Peter Kukielski: We ended the quarter with total liquidity of $1.04 billion, including $611 million in cash and cash equivalents, and undrawn availability of $425 million under the revolving credit facilities. As of 30 September, our net debt to EBITDA ratio was 0.5 times. We expect liquidity to be further enhanced upon closing of the Copper World joint venture transaction, which is anticipated to close in late 2025 or early 2026. Our strengthened balance sheet will allow us to continue to prudently reinvest in our portfolio of attractive high return brownfield and greenfield opportunities to drive production growth and long-term value creation. Taking a look at our Peru operations on slide 5. We delivered steady operating performance despite facing temporary interruptions due to social unrest.

Speaker #3: As of September 30th, our net debt to EBITDA ratio was 0.5 times. We expect liquidity to be further enhanced upon closing of the Copper World joint venture transaction, which is anticipated to close in late 2025 or early 2026.

Speaker #3: Our strength in balance sheet will allow us to continue to prudently reinvest in our portfolio of attractive high return brownfield and greenfield opportunities to drive production , growth and long term value creation .

Speaker #3: Taking a look at our Peru operations on slide five, we delivered steady operating performance despite facing temporary interruptions due to social unrest.

Speaker #3: The operations produced 18,000 tonnes of copper and 26,000 oz of gold during the third quarter, as well as 577,000 oz of silver and 195 tonnes of molybdenum. Countrywide protests that began early in the third quarter temporarily impacted the transportation routes, leading to limitations of supplies and concentrate transportation.

Peter Kukielski: The operations produced 18,000 tons of copper and 26,000 ounces of gold during Q3, as well as 577,000 ounces of silver and 195 tons of molybdenum. Countrywide protests that began early in Q3 temporarily impacted the transportation routes, leading to limitations of supplies and concentrate transportation. To manage through these limitations, we adjusted mine sequencing to prioritize Pampacancha mining activities and blend stockpile ore in the mill feed. In late September, the social unrest escalated across Peru and along with other mines in the southern mining corridor, our Constancia mine was impacted by local protests and illegal blockades. The safety of all our personnel is our top priority. We suspended operations on 22 September as a precaution. During the temporary downtime, the team performed preventative maintenance at the mill and on certain mining equipment.

Speaker #3: To manage through these limitations , we adjusted mine sequencing to prioritize pump akansha mining activities and blend stockpile ore in the middle , feed .

Speaker #3: In late September , the social unrest escalated across Peru and along with other mines in the southern mining corridor , our Constancia mine was impacted by local protests and illegal blockades .

Speaker #3: The safety our of all personnel is our top priority , so we suspended operations on September 22nd as a precaution . During the temporary downtime , the team performed preventative maintenance at the mill and on certain mining equipment .

Speaker #3: Since the restart of mining activities in October , the third and milling activities on October the 5th , the Constancia operations have normalized .

Peter Kukielski: Since the restart of mining activities on 3 October and milling of activities on 5 October, the Constancia operations have normalized. I am extremely proud of our resilient team in Peru and the way they continue to navigate the dynamic environment. Quarterly copper production was lower than the prior quarter, primarily due to lower ore milled as a result of this temporary operational shutdown, while gold production was higher due to stronger head grades from a larger contribution of the mill feed coming from Pampacancha. The Q4 is expected to be the strongest copper and gold production quarter this year in Peru. Production in the month of October totaled approximately 9,000 tons of copper and 17,000 ounces of gold, reflecting optimal mill ore feed, with continued strong ore contribution from Pampacancha and lower stockpiled ore being processed.

Speaker #3: I am extremely proud of our resilient team in Peru and the way they continue to navigate the dynamic environment . Quarterly copper production was lower than the prior quarter , primarily due to lower oil milled as a result of this temporary operational shutdown .

Speaker #3: While gold production was higher due to stronger head grades from a larger contribution of the mill feed coming from Pampaqucha, the fourth quarter is expected to be the strongest copper and gold production quarter this year in Peru.

Speaker #3: Production in the month of October totaled approximately 9000 tonnes of copper and 17,000oz of gold , reflecting optimal mill or feed . With continued strong or contribution Pampa from Cancha Lower and stockpiled oil being processed remain .

Peter Kukielski: We remain on track to achieve full-year copper production guidance in Peru, while gold production is now expected to be above the top end of the 2025 guidance range. Mill throughput averaged approximately 76,000 tons per day in Q3, lower than Q2 due to low ore mined and the temporary operational shutdown. Mill's copper grades decreased by 9% compared to Q2 as a result of the stockpiled ore feed, partially offset by higher grades from Pampacancha. Mill's gold grades significantly increased with a higher portion of ore feed from Pampacancha, where the gold grades are meaningfully higher than any other ore sources.

Speaker #3: on track to achieve full year We copper production guidance in Peru , while gold production is now expected to be above the top end of the 2025 guidance range .

Speaker #3: Mill throughput averaged approximately 76,000 tonnes per day in the third quarter , lower than the second quarter due to lower ore mined and the temporary operational shutdown copper grades .

Speaker #3: Milled decreased by 9% compared to the second quarter . As a result of the stockpiled ore feed , partially offset by higher grades from Pampa Kancha milled gold grades significantly increased , with a higher portion of all feed from Pampa where Cancha , the gold grades are meaningfully higher than in the other ore sources .

Speaker #3: Mill recoveries were of copper impacted by the nature of stockpile feed , while gold and silver recoveries were in line with metallurgical models .

Peter Kukielski: Mill recoveries of copper were impacted by the nature of stockpile feed, while gold and silver recoveries were in line with metallurgical models. The road blockades along the transportation route reopened midway through the quarter, allowing us to reduce site concentrate inventory levels and replenish supplies. As I mentioned earlier, ocean swells at the port later in the quarter impacted sales volumes, with a 20,000 ton copper concentrate shipment being deferred to early October. Cash costs were $1.30 per pound during Q3, decreasing from the prior quarter with higher gold by-product credits and lower plant maintenance costs as planned. With cash costs continuing to outperform the low end of the cash cost guidance range, we are reaffirming our full year cash cost guidance in Peru.

Speaker #3: blockades along the road transportation route The reopened midway through the quarter to , allowing us reduce site concentrate inventory levels and replenish supplies However , .

Speaker #3: as I mentioned earlier , ocean swells at the port quarter late in the impacted sales volumes with 20 000 tonne copper a concentrate shipment being deferred to early October .

Speaker #3: Cash costs were $1.30 per pound during the third quarter , decreasing from the prior quarter with higher gold byproduct credits and lower plant maintenance costs as planned , with cash costs continuing to outperform , the low end of the cash cost guidance range .

Speaker #3: We are reaffirming our full year cash cost guidance in Peru . Manitoba Moving to our operations on slide six , I want to first thank the regional operating team for all their efforts in safeguarding the company's assets and completing an efficient , orderly resumption of operations .

Peter Kukielski: Moving to our Manitoba operations on slide 6, I want to first thank the regional operating team for all their efforts in safeguarding the company's assets and completing an efficient, orderly resumption of operations. I can't imagine what our employees and their families had to endure during these unprecedented wildfires, we will continue to do our part to support the rebuilding efforts in the communities and the provinces. I will say again how proud I am of the continued resilience demonstrated by our Manitoba team and the successful restart of operations in late August following the lifting of mandatory evacuation orders. The operations produced 22,000 ounces of gold, 800 tons of copper, 500 tons of zinc, and 102,000 ounces of silver in Q3, lower than Q2 due to the 2-month wildfire evacuation that deferred gold production.

Speaker #3: can't I what our employees and imagine their families had to endure during these unprecedented wildfires , and continue to do our part we will to support the rebuilding efforts in the communities and the .

Speaker #3: And I will provinces say again , how proud I am of the continued resilience by our demonstrated Manitoba team successful restart of operations in and the late August following the lifting of mandatory evacuation orders .

Speaker #3: The operations produced 22,000 oz of gold, 800 tons of copper, 500 tonnes of zinc, and 102,000 oz of silver. In the third quarter, this was lower than the second quarter.

Speaker #3: Due to the two-month wildfire evacuation that deferred gold production, the business interruption insurance claim has been submitted to compensate for a portion of the wildfire-related downtime.

Peter Kukielski: A business interruption insurance claim has been submitted to compensate for a portion of the wildfire-related downtime. Total ore mined at Lalor reduced by over 50% during the quarter due to the temporary operational interruption. Gold grades increased by 9% compared to Q2, while copper, zinc, and silver grades were in line with the mine plan expectations. Consistent with our strategy of allocating more Lalor ore feed to New Britannia to maximize gold recoveries, the New Britannia mill achieved average throughput of approximately 2,300 tons per day over the operating period in the quarter, and gold recoveries were a record 92%, reflecting the increase in gold grades.

Speaker #3: Total ore mined at Lalor reduced by over 50% during the quarter due to the temporary operational interruption . Gold grades increased by 9% to the compared second quarter , while zinc and grades were silver line with mine plan the in expectations consistent with our strategy of allocating more or new feed to Britannia to maximize gold recoveries .

Speaker #3: The new Britannia mill achieved throughput of average approximately 2300 tonnes per day over the operating period in the quarter , and gold recoveries were a reflecting the record 92% , increase in gold grades .

Peter Kukielski: The Stall mill experienced a greater throughput impact from the wildfire shutdown as the Lalor mine prioritized mining from the gold zones over base metal zones to ensure a consistent feed to the New Britannia mill. The team focused on process optimization and enhanced gold recovery initiatives, enabling record gold recoveries of 73% at Stall in Q3. Gold cash costs for Q3 were $379 per ounce, decreasing compared to Q2, primarily due to the higher by-product credits and the recovery of secondary gold products as a result of mill tank cleanouts.

Speaker #3: mill The experienced a greater throughput impact from the wildfire shutdown , as the Lalor mine prioritized mining from the gold zones over metal zones to a feed to the ensure Britannia mill .

Speaker #3: The team focused on process optimization and enhanced gold recovery initiatives , enabling record gold recoveries of 73% at Stal . In third quarter , gold cash costs for the third the quarter were $379 per ounce , decreasing compared to the second quarter , primarily due to byproduct the higher credits and the recovery of secondary gold products .

Speaker #3: As a result of mill tank clean outs . While the Manitoba operations were previously tracking within the 2025 guidance ranges , despite the impacts significant from wildfire evacuations , we are now expecting to be slightly low end below the gold production As a of the guidance range .

Peter Kukielski: While the Manitoba operations were previously tracking within the 2025 guidance ranges, despite the significant impacts from wildfire evacuations, we are now expecting to be slightly below the low end of the gold production guidance range as a result of a week-long power outage in October from severe winter storms that further deferred gold production. With year-to-date cash costs continuing to outperform the low end of the cash cost guidance range, we are reaffirming our full year 2025 cash cost guidance range in Manitoba. Given the strong cash cost performance to date in Manitoba, Hudbay will continue to prioritize primary gold production over by-product zinc production in 2025, and full-year zinc production is now expected to be below the low end of the guidance range.

Speaker #3: of a week long power outage in October from severe winter storms that further deferred gold production with year to cash costs date continuing to outperform the end of the cash low cost guidance range , we are reaffirming our full year 2025 cash cost guidance range in Manitoba .

Speaker #3: Given the strong cash cost performance to date in Manitoba , Hudbay will continue to prioritize primary gold production over byproduct zinc production in 2025 and full year zinc production is now expected to be below the low end of the guidance range at our British .

Peter Kukielski: Looking at our British Columbia operations on slide 7, we continue to focus on advancing our optimization plans at the Copper Mountain Mine. This includes a ramp-up of mining activities to optimize ore feed to the plant and implementing site improvement initiatives that mirror Hudbay's best-in-class operating practices. In Q3, the British Columbia operations produced 5,200 tons of copper, 4,800 ounces of gold, and 51,000 ounces of silver. Production decreased compared to the prior quarter, primarily because of restricted mining efficiencies and lower grades as higher waste stripping continued. The waste stripping activities are part of the continued execution of the accelerated stripping program intended to bring higher-grade ore into the mine plan in 2027.

Speaker #3: Looking operations on slide seven , we focus on continue to advancing our optimization plans at the Copper Mine Mountain . This includes the up of mining ramp activities to optimize feed to the the oil plant and site implementing improvement initiatives that mirror S Hudbay .

Speaker #3: class best in operating practices . In the third quarter , the British Columbia operations produced 5.2 thousand tonnes of copper , 4.8 thousand ounces of gold and 51,000oz of silver decreased .

Speaker #3: Production compared to the prior quarter , primarily because of restricted mining efficiencies and lower grades as higher waste stripping continued . The waste stripping activities are part of continued the execution of the accelerated stripping program , intended to bring higher grade ore into the mine plan .

Speaker #3: In 2027 . During the third quarter , we made significant progress on the key Mill improvement project , completing the initial phase of the SAG two mill conversion in July , the subsequent ramp up demonstrated positive contribution from SAG two during the quarter , with several days achieving 50,000 tonnes per day of mill throughput .

Peter Kukielski: During Q3, we made significant progress on the key mill improvement project, completing the initial phase of the SAG 2 mill conversion in July. The subsequent ramp-up demonstrated positive contribution from SAG 2 during the quarter, with several days achieving 50,000 tons per day of mill throughput in September. The team continued to optimize the circuit as planned through the remainder of 2025, with the final phase of the project involving the conversion of an interim feed arrangement to a permanent configuration. Construction remains on target for completion in December 2025. In late September, the primary SAG mill, which I will refer to as SAG 1, required unplanned maintenance due to localized damage to the feed head. After completing the repairs in mid-October, SAG 1 restarted at a reduced rate.

Speaker #3: In September team , the continues to optimize the circuit as planned through the remainder of 2025 , with the final phase of the project involving the conversion of an arrangement interim feed to a configuration permanent .

Speaker #3: remains on target for Construction completion in December 2025 . In late primary September , the SAG mill , which I will refer to as SAG one , required unplanned maintenance due to localized damage to feed the head .

Speaker #3: After completing the repairs in mid-October , SAG when restarted at a reduced rate under enhanced monitoring controls , SAG one throughput will continue to ramp up over the course of the fourth quarter , together with the completion of the final phase of the SAG two project , Hudbay expects mill throughput to ramp up towards 50,000 tonnes per day by mid 2026 .

Peter Kukielski: Under enhanced monitoring controls, SAG one throughput will continue to ramp up over the course of the Q4. Together with the completion of the final phase of the SAG two project, Hudbay expects mill throughput to ramp up towards 50,000 tons per day by mid-2026. Total ore processed in the Q3 was 6% higher than the Q2, reflecting the completion of the first phase of the SAG two project, partially offset by planned and unplanned maintenance. During the Q3, copper recoveries were 77% and gold recoveries were 59%, both lower than the prior quarter due to the processing of lower grade stockpile material. British Columbia cash costs were $3.21 per pound in the quarter, higher than the prior quarter, largely due to lower copper production and lower by-product credits.

Speaker #3: Total processed in the third quarter was 6% higher than in the second quarter, reflecting the completion of the first phase of the SAG II project.

Speaker #3: Partially offset by planned and unplanned maintenance During the third quarter , copper . recoveries were gold recoveries were 59% . Both lower than the prior Due to the quarter .

Speaker #3: processing of lower stockpile grade material Columbia cash , British costs were $3.21 per pound in the quarter , higher than quarter , the prior largely due to lower copper production byproduct and lower .

Peter Kukielski: Q4 production is expected to be impacted by lower mill throughput from reduced levels at SAG one in October, which, together with a higher portion of ore milled from low grade stockpiles this year, is expected to result in full year copper production in British Columbia to be below the low end of the guidance range. Therefore, we are reaffirming full year cash cost guidance in British Columbia. Turning to slide 8. As I mentioned briefly in my opening remarks, our Copper World project in Arizona achieved a significant milestone this quarter with the announcement of our 30% strategic joint venture with Mitsubishi. We welcome Mitsubishi's world-class expertise as we work together to advance this high-quality copper project and unlock significant value for all our stakeholders.

Speaker #3: Fourth quarter credits is expected to production be impacted lower by a mill throughput from reduced levels at SAG one in October , which , together with a higher portion of all milled from low stockpiles this year , expected is result to in full year copper British production in Columbia to be below the low end of the range costs .

Speaker #3: well continue versus the Cash range , and therefore we are reaffirming year guidance full in British guidance Columbia to . Turning slide eight .

Speaker #3: As I mentioned briefly in my opening remarks, our Copper World project in Arizona achieved a significant milestone. This coincided with the quarter announcement of our 30% strategic joint venture with Mitsubishi.

Speaker #3: We welcome Mitsubishi's world class expertise as we work together to advance high this projects quality and unlock significant value for all our stakeholders .

Peter Kukielski: This strategic partnership validates the attractive long-term value of Copper World as a top-tier copper asset and endorses the strong technical capabilities of Hudbay. Mitsubishi is acquiring its 30% stake for an initial contribution of $600 million. This deal will provide $420 million in cash once it closes and $180 million within 18 months of its closing. These proceeds will be used to fund the remaining feasibility study and pre-sanction costs in addition to initial project development costs for Copper World. Mitsubishi will also fund its pro rata 30% share of future capital contributions. This valuation is highly attractive to Hudbay as it implies a significant premium to consensus net asset value for Copper World.

Speaker #3: strategic This partnership validates the attractive long term value of Copper a top World as tier copper asset and endorses the strong technical capabilities of Hudbay .

Speaker #3: Mitsubishi is acquiring its 30% stake for an initial contribution of $600 million . This deal will provide $420 million in cash once it closes , and $180 million within 18 months of its closing .

Speaker #3: proceeds These will be used to fund the remaining feasibility study and pre sanction costs . In addition to initial project development costs for Copper World , Mitsubishi will fund its also 30% share pro-rata of future capital contributions .

Speaker #3: This valuation is highly Hudbay as it attractive to implies a significant premium to consensus asset net value for World Copper . As a result JV of the future capital proceeds and contributions .

Peter Kukielski: As a result of the JV proceeds and future capital contributions, Hudbay's estimated share of the remaining capital contributions have been reduced to approximately $200 million based on pre-feasibility study estimates. It also defers our first capital contribution to 2028 at the earliest and significantly increases the levered IRR to Hudbay to approximately 90%. With recent achievement of our stated balance sheet targets, we have successfully completed the key elements of our prudent financing strategy as part of our 3P plan. We are very well positioned to build one of the next major copper mines in the United States while continuing to maintain a strong balance sheet to reinvest in other growth opportunities across our portfolio while continuing to de-lever. Copper World feasibility activities are underway and we are on track for the completion of a definitive feasibility study in mid-2026.

Speaker #3: Hudbay estimated share of the remaining contributions have been reduced capital to approximately $200 million , based on pre-feasibility study estimates . It also first capital contribution defers our to 2028 at the earliest , significantly and increases the level IRR to Hudbay to approximately 90% .

Speaker #3: recent With achievement of our stated balance sheet targets , successfully we have completed the elements of key prudent financing strategy as part of our £0.03 plan , we are very well positioned to build one of the next major copper mines in the United States .

Speaker #3: While continuing to maintain a strong balance sheet to reinvest in other growth opportunities across our portfolio . While continuing to deliver Copper activities feasibility world are underway and we are on track for the completion of a definitive feasibility study in mid 2026 .

Speaker #3: While continuing to maintain a strong balance sheet to reinvest in other growth opportunities across our portfolio . While continuing to deliver Copper activities feasibility world are underway and we are on track for the completion of a definitive feasibility study in mid We have detailed accelerated engineering , certain long lead items and other de-risking activities with the additional $20 million in growth capital in August .

Peter Kukielski: We have accelerated detailed engineering, certain long lead items and other de-risking activities with the additional $20 million in growth capital expenditures announced in August. We continue to expect to make a Copper World sanction decision in 2026. As part of our long-term growth pipeline, slide 9 summarizes the threefold strategy we are executing in Snow Lake as part of the largest exploration program in the company's history in Manitoba. The first objective is to execute near mine exploration at the Lalor and 1901 deposits to enhance near-term production and further extend mine life. We completed the development of the initial exploration drift at 1901 earlier this year, and the development of the haulage drift is underway.

Speaker #3: expenditures expect to announced make Copper World We sanctioned decision continue to in 2026 . As part of our long term growth pipeline . Slide nine summarizes the three fold strategy we are executing in Lake as the largest exploration program in part of the company's history in Manitoba .

Speaker #3: The first objective is to execute Near-mine exploration at Lalor and the deposits to enhance and further production extend mine . We near-term life completed the development of the initial exploration drift at 1901 .

Speaker #3: Earlier this year , and the development of the drift is haulage underway . Positive initial step out drilling from the exploration drift was earlier achieved this year and during the third quarter , some additional development oil zinc for was processing at delivered activities at 1901 .

Peter Kukielski: Positive initial step-out drilling from the exploration drift was achieved earlier this year, and during Q3, some additional zinc development ore was delivered for processing at Lalor. Activities at 1901 over the next 2 years will focus on exploration, definition drilling, ore body access, and establishing critical infrastructure for full production in 2027. Exploration activities will also target additional step-out drilling to potentially extend the ore body, as well as complete infill drilling to convert inferred mineral resources in the gold lenses to mineral reserves. The second strategic focus area is on testing regional satellite deposits within trucking distance of the Snow Lake processing infrastructure to identify potential additional ore feed to fully utilize the available processing capacity. With our significant Snow Lake land package, we have an attractive portfolio of regional deposits, including the Talbot, Rail, Pen II, Watts, 3 Zone, and WIM deposits.

Speaker #3: next two years will Over the focus on exploration definition , Orebody and access critical infrastructure for full production . In 2027 . Exploration activities will also target additional step drilling to potentially extend the out ore body .

Speaker #3: As well as complete infill drilling to convert inferred mineral gold lenses to mineral reserves resources in the . The second focus area is strategic on testing regional satellite deposits within trucking distance of the Snow Lake processing infrastructure to identify potential additional ore feed to fully utilize the available processing capacity .

Speaker #3: With our significant Snow Lake land package , we have an attractive portfolio of regional deposits , including the Talbot Rail Pen two . What's three zone and Wind deposits ?

Peter Kukielski: The most advanced of these satellites is the Talbot deposit, which I'll discuss further on the next slide. The third strategic focus is on exploring our large land package for a new potential 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 km of ground electromagnetic surveys, and an extensive airborne geophysics survey. In July, we commenced exploration drilling at the Talbot copper, zinc, gold deposit. Talbot is located within trucking distance of the Snow Lake processing facilities, making it an ideal deposit to potentially provide supplemental feeds to our Stall Mill. The current phase of the drilling program includes 4 drill rigs intended to complete 10 holes by the end of the year.

Speaker #3: The most advanced of these satellites is the Talbot deposit , which I'll discuss further next slide . And the third strategic focus is on exploring our large land package for a new potential anchor deposit to significantly extend the mine life of our snow lake operations .

Speaker #3: We are conducting the largest geophysics program in our history in Snow Lake, which includes 800 km of ground electromagnetic surveys and an extensive airborne geophysics survey.

Speaker #3: In July , we commenced exploration drilling at the Talbot Copper , zinc , gold deposit . Talbot is located within trucking distance of the Snow Lake processing facilities , making it an ideal deposit to potentially provide supplemental feed to our small mill .

Speaker #3: current phase of the drilling The program includes four drill rigs intended to complete ten holes by the end of the year after completion of the initial three holes , we are pleased to see that the core logging has confirmed the continuity of the Talbot Copper gold mineralisation at depth , and look forward to receiving the full assay results later this year .

Peter Kukielski: After completion of the initial 3 holes, we are pleased to see that the core logging has confirmed the continuity of the Talbot copper gold mineralization at depth, and look forward to receiving the full assay results later this year. This drilling will determine the future scope requirements for a pre-feasibility study, which we intend to initiate in 2026. In January 2026, we expect to kick off phase II of the Talbot drilling program, focused on infill drilling to support the pre-feasibility study. Concluding on slide 11, this quarter demonstrated the benefits of Hudbay's diversified operating base, our unique copper and gold exposure, and our resilient operating capabilities. Our continued focus on cost control enables us to maintain industry-leading margins and deliver strong and stable cash flows.

Speaker #3: will determine the This drilling future scope requirements for a pre-feasibility which study , we intend to initiate in 2026 . In January 2026 , we expect to off phase two of the kick Talbot Drilling program , focused on infill drilling to support the pre-feasibility study .

Speaker #3: Concluding on slide 11 . This quarter demonstrated the benefits of Hudbay diversified operating base . Our unique copper and gold exposure , and our resilient operating capabilities .

Speaker #3: Our continued focus on cost control enables us to maintain industry leading margins and deliver strong and stable cash flows . Once Copper World is in production , we expect our annual copper production to grow by more than 50% from current levels .

Peter Kukielski: Once Copper World is in production, we expect our annual copper production to grow by more than 50% from current levels. This will reinforce our position as one of the largest Americas-focused pure play copper producers with a well-balanced and geographically diversified portfolio of assets. Our expected production will be weighted approximately one-third in each of Canada, the United States, and Peru. The significant increase in copper production from Copper World will further enhance Hudbay's exposure to copper with more than 70% of consolidated production and revenue expected to be derived from copper. Hudbay's existing strong operating platform in tier-one mining jurisdictions and resilient balance sheet offers significant upside potential for further value creation at higher copper and gold prices.

Speaker #3: This will reinforce our position as one of the largest Americas focused pure play copper well balanced and producers with a geographically diversified portfolio of assets .

Speaker #3: Our expected will production be approximately one third weighted in each of Canada . The United States and Peru significant increase in , and the production from Copper World will further enhance Hudbay exposure to copper .

Speaker #3: With more than 70% of consolidated production and revenue expected to be derived from copper . Hudbay is strong existing operating platform in one mining tier jurisdictions and resilient Balance sheet offers significant upside potential for further value creation at higher copper and gold prices .

Peter Kukielski: We will be able to prudently advance Copper World while also being able to invest in many other high return growth opportunities to unlock value across the portfolio and create meaningful value for all our stakeholders. With that, we are pleased to take your questions.

Speaker #3: We will be able to prudently advance Copper World while also being able to invest in many other return growth high opportunities to unlock value across the portfolio and create meaningful value for all our .

Speaker #3: stakeholders And with that , we are pleased to take your questions .

Operator: Thank you. 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'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then 2. Our first question is from Lawson Winder with Bank of America Securities. Please go ahead.

Speaker #1: Thank Ladies and gentlemen . We begin the answer question and session . To join the question queue , you may press star one on your then telephone keypad .

Speaker #1: You will hear a tone acknowledging your request . If you're using a speakerphone , pick up your please handset before pressing any to keys withdraw your question , please press star then two .

Speaker #1: Our first question is from Lawson Winter with Bank of America Securities . Please go ahead .

Lawson Winder: Thank you very much, operator, Good morning, Peter, then hello, Eugene and Andres. Nice to hear from you guys today. I wanted to ask first about Copper Mountain. The construction decision, can we expect that to occur in mid-2026? Just thinking about spending around Copper World this year or in 2026, do you expect any pre-construction spending that could occur in advance of the completion of the feasibility study and a construction decision? Thank you.

Speaker #4: Thank you very much , operator , and good morning , Peter . And then hello , Eugene and Andre . Nice to hear from you guys today .

Speaker #4: I wanted to ask first about Copper Mountain . So the the construction decision , can we expect that to occur in mid 2026 .

Speaker #4: And then just thinking about spending around copper copper world this year or in 2026 , do you expect any pre-construction spending that could In advance of the completion of the occur ?

Speaker #4: Feasibility study and construction decision? Thank you.

Peter Kukielski: Morning, Lawson, and thanks for the question. The first part of your question is, yes, we do expect to complete the feasibility study in mid-2026. We expect the construction decision in 2026 as well. One of the comments that we made during the during my comments was that we did authorize an additional $20 million this year to get ahead of some of the long lead items and engineering items associated with the critical path of the project. We also expect to be spending a fair amount of money, pre-sanction money, I guess you would call it, in order to keep things moving and in order to make sure that we address the critical path properly.

Speaker #3: Morning , Lawson , and thanks for the question . So the first part of your question is , yes , we do expect we do expect to complete the feasibility study in mid 2026 .

Speaker #3: And we expect a construction decision in 2026 as well . One of the comments that we made during the during my was comments that we did authorize an additional $20 million this year to get of some ahead of the long lead items and items associated with the critical path of the project .

Speaker #3: We also expect to be spending a fair amount of money . Pre sanctioned money . I guess you would call it in order to keep things moving and in order to make sure that we address the path critical properly .

Peter Kukielski: Yeah, the answer in your question for short, in short is absolutely, we will spend on developing the project in conjunction with doing the feasibility study. Now remember that we are following an integrated project development approach, which means that the engineers, constructors, et cetera, are all in an integrated team. We are able that way to advance certain elements of the project ahead of others where there's risk. 50%, roughly, engineering will be completed before the end of the feasibility study, but in some areas as much as 70% will be completed. We are very much taking sort of a holistic approach to make sure that we address the critical path and spend on the right things even before the FID decision.

Speaker #3: yeah , the So answer in your question for short , in short , is absolutely . We will spend on developing the project in conjunction with doing the feasibility study .

Speaker #3: And I remember that we are following an project integrated development approach , which means that the engineers , constructors , etc. are all in an integrated team .

Speaker #3: We are able to advance certain elements of the project ahead of others where there's risk. So, approximately 50% of the engineering will be completed before the end of the feasibility study.

Speaker #3: But in some areas , as much as 70% will be So completed . we are very much taking sort of a holistic approach to make sure that we address the critical path and spend on the right things .

Speaker #3: Even before the FID decision .

Lawson Winder: Okay, that's helpful. Just a clarification, the $20 million, will some of that be in 2025 or will that all be in 2026?

Speaker #4: That's okay. Just a clarification: will some of the $20 million be in 2025, or will all of that be in 2026?

Eugene Lei: Hi, Lawson, Eugene here. The original budget for this year for Copper World was $90 million, and we increased that to $110 million as part of that decision to make some long lead items. If you look at the slide that we show in terms of the total funding, there's approximately $150 million in total spending from 1 January 2025 until the sanction decision expected in mid-2026. You would have, you know, from the money that we've outlined, there's a total of $150 million.

Speaker #5: Hi Lawson . Eugene here . the So original budget for this year for for Copper World was $90 million . And we increased that to $110 million as part of that decision to to make some long lead items .

Speaker #5: If you look at the slide that we that we show in terms of the total funding , there's approximately a $150 million in total spending from January the 1st , 2025 until the sanctioning decision expected in mid 2026 .

Speaker #5: So you would know from , from from the money that we've outlined , there's a total of $150 million . We expect to spend about 100 million of that this year .

Eugene Lei: We expect to spend about $100 million of that this year with about $50 remaining in H1 2026 to be in a position to sanction Copper World along the timelines that Peter outlined.

Speaker #5: And with 50 remaining in the first half of 2026 to be position to in a sanction copper World along the Peter timelines that outlined .

Lawson Winder: Okay. That's very helpful. Thanks for highlighting those noise. Then same question, I just wanted to ask about CapEx. You deferred $35 million of sustaining CapEx into 2026. The original budget for this year was about $365. Should we think about sustaining CapEx in 2026 as $365 plus the $35 from this year, or are there some other puts and takes there we should be considering, what are they?

Speaker #4: Okay . Yeah , that's very helpful . Thanks for highlighting those . notes . I just Those hadn't noticed them yet . And then same question , but I just wanted to ask about CapEx .

Speaker #4: You deferred 35 million of sustaining CapEx into 2026 . The budget for this year was about original 365 . So should we think about sustaining CapEx in 2026 as 365 plus the 35 from this year ?

Speaker #4: Or are there some other puts and takes that we should be considering ? And what are they ?

Andre Lauzon: It's Andre. There is some of it, like some of the CapEx, there is a little carryover, but a lot of the CapEx were actually deferrals related to the wildfires in Manitoba and some of the tailings, some of the blockades in Peru. Those things are just kind of offset, and there's not an increase, it's just the mine plan is just continuing. Manitoba restarted their operations and ramped back up, but they're not developing at a rate that's higher than what they did historically. It's just a sliding of a lot of that.

Speaker #3: Hi .

Speaker #6: It's Andrea , so , so there is some of it like some some of the CapEx . There is a little but a lot of the CapEx , we're actually deferrals related to the wildfires .

Speaker #6: And in Manitoba and , and some of the it tailings , was some of the blockades in Peru . So , so those things are just kind of offset .

Speaker #6: And there's not an increase . It's just the mine plan is just continuing . So Manitoba restarted their operations and and ramp back up .

Speaker #6: not But they're developing at a rate that's higher than what they did historically . So it's just a sliding a lot of of of that .

Eugene Lei: To break that $35 million down for you, Lawson, it is $15 million in deferrals in sustaining capital, but that's not additional capital. You don't add it, you don't just add it to 2026 as Andre mentioned. Then of the remaining 35, $20 million relates to growth projects that were deferred, that will be deferred in 2026. That's not new capital. Again, that's capital that will just be not spent in 2025 and spent in 2026.

Speaker #5: break that So to $35 million down for you , Lawson , it's $15 million in deferrals . And sustaining capital . But that's not additional capital .

Speaker #5: So you don't add it . You don't just add it to 2026 . As Andre mentioned . And and then of the projects remaining 35 , to growth that $20 million relates were that that deferred that are that will be deferred in 2026 .

Speaker #5: that So that's not new capital . Again , that's capital will just be just that not spent in 25 and spent in 2026 .

Lawson Winder: Yeah, that's super helpful. Just ultimately what I was trying to get at is a good baseline for sustaining CapEx for next year then would be basically this year's guidance of $365 plus or minus, say, 5%. Like, is that fair?

Speaker #4: Yeah , that's And then super helpful . just ultimately what I was trying to get at is like a good baseline for , for sustaining CapEx for next Then year .

Speaker #4: would be basically this year's guidance of 365 plus or minus a 5% . Like , is that is that fair ?

Eugene Lei: We haven't finished all the budgeting for next year, but that's a fair amount. I think every year, in Peru, depending on the year, it's whether there's a tailings dam raise or not, the capital will fluctuate by, you know, between $20 million and $30 million. In Manitoba, it's been very stable at this level. In BC, while we're continuing the stabilization program, it's gonna be at this level until the end of 2026, as we've kind of mentioned on a three-year plan basis. I think your assumption is fairly consistent.

Speaker #5: We haven't finished all the budgeting for next year . But that's I think amount . every year that's a fair there's a in Peru , depending year , whether there's a on the tailings dam raise or not .

Speaker #5: The the capital will fluctuate , you know , by between 20 and $30 million . And , and in Manitoba it's been fairly stable at this level .

Speaker #5: And and in BC , while we're continuing the stabilization program , it's going to be at this level until until the end of 26 , as we've kind of mentioned , on a three year plan So basis .

Speaker #5: I think your assumption is fairly consistent.

Lawson Winder: Okay. Thank you all very much. I appreciate it.

Speaker #4: Okay . Thank you all very much . I appreciate it .

Operator: The next question is from Ralph Profiti with Eight Capital. Please go ahead.

Speaker #1: The next question is from Ralph with Stiefel Financial . Please go ahead .

Ralph Profiti: Thanks, operator. Good morning. You know, Peter, it's been sort of surmised that some of the issues in Peru are around informal mining and regulations therein. I just wondering, can you discuss a little bit about informal mining practices in and around Maria Reina and Caballito? You know, is this a significant issue that may need to be, you know, considered when we talk about the Consulta Previa process?

Speaker #7: Thanks . Operator . Good morning . You know , Peter , the it's been sort of surmised that the some of issues are in Peru around informal mining and regulations therein .

Speaker #7: just I'm you bit about discuss a little informal mining practices in and around Mario Arena and , you know , is this a significant issue that may need to be considered when we talk about consulta previa process ?

Andre Lauzon: Hi, Ralph. It's a great question. Look, actually, there's been a fair amount of informal mining around Maria Reina and Caballito for a long time, since actually since before we bought, acquired the mineral rights for the assets. I would say that the informal miners do not constitute a material impediment to our ability to get permits or go through the Consulta Previa process or get access to exploration. In fact, you know, a lot of the work that we've done with the community is to try to prepare the communities to be able to support us with drilling themselves. It would make sense that it might be the informal miners who actually do some of the work for us.

Speaker #3: Ralph , Hi I it's a great question . Look , I actually there's been a fair amount of informal mining around Maria Arena and Caballito for a long time since actually since before we acquired the mineral rights for the assets .

Speaker #3: I would say that the informal miners do not constitute a material impediment to our ability to get permits, go through the Consulta Previa process, or gain access to exploration.

Speaker #3: In fact , you know , a lot of the work that we've done with the community is to try to prepare the communities to be able to support us with drilling themselves .

Speaker #3: And it would make sense that it might be the informal miners who actually do some of the work for us . So , so in general , I would say that in answer to your question , that informal miners are absolutely not an impediment to getting the consultant prévia done .

Andre Lauzon: In general, I would say that to, you know, answer your question, that informal miners are absolutely not an impediment to getting the Consulta Previa done. It's just more complicated right now, given the social environment in Peru, change of government, et cetera, et cetera, to get the government to conduct the Consulta Previa process to get everybody together and to ultimately get the nod that the surface rights were acquired without coercion or anything like that. What I would say about Peru also is that there's no difference today to the way it's been for the last 25 years, and the term that I would use to characterize it is stable instability.

Speaker #3: It's just more complicated right now , given the social environment in Peru , a change of government , etcetera , etcetera . To get the government to conduct the consultative process , to get everybody together and , and to ultimately get the nod that the surface rights were acquired without coercion or anything like that .

Speaker #3: What I would say about Peru also is , is that there's no difference today to the way it's been for the last 25 years , term that and the I would use to characterize it is stable instability .

Andre Lauzon: It's, you know, I've spoken many times about the time that I've spent in Peru with a pendulum swinging left and right and left and right, and the one thing that stays the same is or two things that stay the same, are the fiscal environment, but also the bureaucracy. What's really important is that stable bureaucracy to get things done, but the timelines are very, very difficult to predict, especially now with elections coming up next year. The equation of the informal miners, how that plays into the broader social environment. I don't think there's any direct impact on the prior consultation process.

Speaker #3: It's you know , I've spoken many times about the time that I've spent in Peru with the pendulum swinging left and right and left and right .

Speaker #3: And the one thing that stays the same is or two things that stay the same and the fiscal environment , but also the bureaucracy .

Speaker #3: And what's really important is that stable bureaucracy to get things done . But the timelines are very , very difficult to predict , especially now with elections coming up next year .

Speaker #3: And the equation of the informal miners , how that plays into the broader social environment . But I don't think there's any direct impact on the prior consultation process .

Eugene Lei: You know, there were small scale miners on Pampacancha prior to our permitting.

Speaker #6: There were small miners scale on Papa Concha prior to to our permitting and accessing it they , and are a stakeholder and we successfully navigated that in the past .

Eugene Lei: Right

Eugene Lei: Accessing it. They are a stakeholder, and we've successfully navigated that in the past, yeah.

Ralph Profiti: Great. Thank you for that clear understanding. That's it for my questions.

Speaker #7: Thank you for that clear understanding. That's it for my questions.

Andre Lauzon: Thank you, Ralph.

Speaker #3: Thank you . Rob .

Operator: Next question is from Orest Wowkodaw with Scotiabank. Please go ahead.

Speaker #1: Next question is from Orest with Scotiabank . Please go ahead .

Orest Wowkodaw: Hi, good morning. Maybe just shifting gears to Copper Mountain. The asset seems to be underperforming your expectations since you acquired it. Can you give us a sense of the SAG mill issue that you disclosed here most recently? Is this now going to negatively impact 2026? I'm wondering if we should already start thinking about the low end of the Copper Mountain production guide for 2026 based on this issue.

Speaker #8: Hi. Good morning. Just gears to shifting. Maybe Mountain. The asset seems to be underperforming your expectations since you acquired it.

Speaker #8: Can you give us a sense of the sag mill issue that's that you disclosed here ? Most recently ? Is this now going to negatively impact 26 ?

Speaker #8: And I'm wondering if we should already start thinking about the low end of the Copper Mountain production Guide for 26 based on this issue .

Peter Kukielski: Thanks, Orest. The first thing that I would say is that we are highly confident that Copper Mountain was the right asset to purchase. We believe strongly that the skill set that Hudbay brings to bear will ultimately be fully realized in value at Copper Mountain. Like we said, it's a 3-year optimization or stabilization and optimization process. We're sort of 2 years into it. There's a good 1 year to go, and there's a lot of work to be done. There will be some puts and takes. I think Andre always explained it as being, you know, when you renovate a house, you find a few things when you pull the sheetrock off the walls, et cetera. We'll get there. Andre, maybe you can provide a little bit more comment.

Speaker #3: Thanks. So the first thing that I would say is that we are highly confident that Copper Mountain was the right asset to purchase.

Speaker #3: We believe strongly that the skill set that Hudbay brings to bear will ultimately be fully realized in value at at Copper Mountain . Like we said , it's a it's a three year optimization or stabilization .

Speaker #3: And optimization process . We sort of two years into it , there's a good year to go there's a lot and of work to be done , and there will be some puts and takes .

Speaker #3: I think Andre always explained it as being , you know , when you renovate a house , you find a few things . When you pull the sheetrock off the walls , etc.

Speaker #3: But we'll get there. But Andre, maybe you can provide a little bit more color.

Andre Lauzon: Yeah, yeah. No, as you were saying, I was thinking that TV show Love It or List It, and we love it. We love it, and it is very much, you know, it's a journey. I'll talk to the event there, Orest, and to your specific question, but I would say, if I start with is there's been tremendous progress throughout the course of the year. The team's done an excellent job on navigating a whole number of challenges and opportunities and in terms of ramping up the mine. You know, the mine was under stripped, and there's smaller benches, and they're working through a lot of it. We've seen steady progress in that.

Speaker #6: Yeah , yeah , no , as you're saying there , it's thinking that TV show , love it or list it and we love it .

Speaker #6: We we we love it . And there's there and it is , it is very a much a , you know , it's a it's a journey .

Speaker #6: And so I'll the , to the talk to event draws and to your specific question . But I would say if I start with is there's been tremendous progress throughout the course of the year that the team has done an excellent job of navigating a whole number of , of and challenges opportunities .

Speaker #6: And in terms of ramping up the mine and the mine was under stripped and there's smaller benches and they're working through a that .

Speaker #6: And so lot of the we've seen steady progress in that . We delivered two SAG ahead of schedule or on schedule back in July .

Andre Lauzon: We delivered SAG 2 ahead of schedule or on schedule back in July and ramping that up where, you know, initially when we envisioned this, we weren't even going to turn it on until the end of the year. It's proved to be, you know, fruitful around that optionality as we got into this, the SAG one incident, if you will, that was described, Peter, earlier on in the discussion. What it appears to have happened with that example is, and we've done a lot of investigation, there's more investigation to understand, is just it was a premature liner wear. It's the same set of liners and it wasn't wearing the same as what we had thought previously.

Speaker #6: And and up where , you know , we're initially when we envisioned this , we weren't even it on going to turn year .

Speaker #6: the So it's proved to be and , you know , fruitful around that optionality as we we got into this , the SAG one incident , if you will , that that was described .

Speaker #6: Peter , earlier on in the in the discussion . And so . At what it appears to happened have with that that example is and we've done a lot of investigation .

Speaker #6: There's more investigation to understand is , is just it was a premature liner where and it's the same set of liners and it and it wasn't wearing the same as what we had thought previously .

Andre Lauzon: It's the same tonnage. It appears that our operational excellence in terms of we introduced something called a MillSlicer to really run a real stable, efficient operation. What we ended up seeing, which we didn't anticipate, was a little bit more selective wear rather than wear throughout the liners. It caused that incident. It caught us a little bit by surprise. They've repaired it. We've gone through in a very cautious, meticulous ramp-up process. We're ramping up to date. We're almost at the level right now of where we were, call it the average of prior to Q3. It's a ramp up. Is there a bit of an impact to next year? A little, but not significant.

Speaker #6: It's the same tonnage . And it appears that our operational excellence in terms of we we introduced something called a mill slicer to , to really run a stable , efficient operation .

Speaker #6: And what we ended up seeing , which we didn't anticipate was a little bit more selective , rather where than wear throughout the liners and , and it caused that incident .

Speaker #6: We it caught us a little bit by surprise . They've repaired it . We've gone through in a very cautious , meticulous ramp up process .

Speaker #6: We're ramping up to date . We're we're almost at the level right now of where we were . Call it the average of of of prior to Q3 .

Speaker #6: So it's it's a ramp up . Is there a bit of an impact to next year ? A little , bit , but not not significant .

Andre Lauzon: The unknown for us is like the ramp up on SAG 2. On the combined of SAG 2 and SAG 1 exceed our permit capacity for Copper Mountain. We were cautious in the wording. You know, as you know, we're generally conservative operators, and we wanna deliver what we say. We're confident in the forecast that we put to the end of the year. We'll update more. We're gonna know a lot more going into when we set guidance on next year. Like we said, we're pretty confident on hitting that by mid-year up to that 50,000 tons a day.

Speaker #6: And so the unknown for us is like the ramp up on SAG two on the combined of SAG two and SAG one exceed our permit capacity for for Copper Mountain .

Speaker #6: And so , so we were cautious in the wording , you know , as you know , we're we're we're generally conservative operators and we want to deliver what we say .

Speaker #6: And so we're confident in the forecast that we put to the end of the year . And then we'll update more . We're going to know a lot more going into when we set next guidance on year .

Speaker #6: But so like we said , we're pretty confident on on hitting that by mid-year up to that 50,000 tons a day .

Orest Wowkodaw: Okay, thanks. Good luck.

Speaker #8: Okay . Thanks . Good luck .

Andre Lauzon: No luck needed, but it's been a lot of hard work. I appreciate the kind words.

Speaker #6: No luck needed . But but but it's good . A lot of her work . But I appreciate the kind words .

Operator: The next question is from Marcio Farid with Goldman Sachs. Please go ahead.

Speaker #1: The next question is from Marcel Farid with Goldman Sachs . Please go ahead .

Marcio Farid: Thank you. Morning, everyone. Just on Peru, obviously, you've adjusted the mining sequence in Q3 towards the high grade Pampacancha deposit. Just trying to minimize impacts from the, from the interruptions, right? Just trying to understand, I mean, you mentioned on the release that October, the ramp up at Constancia has been quite well. Just trying to understand if you're confident that you can get back on track throughout Q4 of the year at Constancia. Thank you.

Speaker #9: Thank you. Good morning, everyone. So, just on Pedro, you've obviously adjusted the mining sequence in the third quarter, moving towards the grade at Pampa.

Speaker #9: Pampa deposit . Just trying to minimize impacts from the from the interruptions . Right . But just trying to understand I mean , you mentioned on the release that October , the ramp up at Constancia has been quite well .

Speaker #9: Just trying to understand if that you can get back on track throughout the fourth quarter of the year at Constancia . Thank you .

Andre Lauzon: Yeah. Sure. It's Andre. I'll take the question. Absolutely confident. As, you know, saw in the press release, you know, the month of October as we disclose is the highest copper production for the year. You know, we're into the high grade cycle. The team has, you know, done an excellent job. You know, I could never imagine them running with three shovels and producing at the levels that they have at Pampacancha and, you know, thoroughly impressed by the team. Pampacancha is going at a very high rate. Could finish it potentially by the end of the year, which was the original plan, by the way. The team has basically caught up.

Speaker #6: Sure . It's Andre . I'll take that . Take the question . So absolutely confident . As you saw in the in the press release , you know , the the month of October as we disclosed , is the highest copper production for the year .

Speaker #6: You know , from we're into the high grade cycle . The team is , you know , done an excellent job . You know , I could never imagine them running with three shovels and producing at the levels that they have at Papa Concha .

Speaker #6: And , you know , thoroughly impressed by the team . And so Papa Concha is going at a very , very high rate .

Speaker #6: Could finish it potentially by the end of the year , which was the original plan , by the way . So the team is , has basically caught up .

Andre Lauzon: That cadence is why we're seeing, you know, high, high copper grades through to the end of the year as well as the high gold. As, you know, Pampacancha has really contributed to us exceeding the high end of guidance on gold for Peru.

Speaker #6: And so that cadence is why we're seeing , you know , high , high copper grades through to the end of the year as well as the high gold .

Speaker #6: So as you know , Papa Concha has contributed to us really exceeding the high end of guidance on gold for for Peru

Peter Kukielski: Marcio, it's Peter. It's, like, as Andre says, we are highly confident in our ability to get the ball out of the park with Constancia for the remainder of the year.

Speaker #3: And Matthew , it's

Speaker #3: it's . as says , we are highly confident in Andre our ability to get the ball out of the park with Constancia for the remainder year of the .

Marcio Farid: Great. Can I just follow up on Manitoba as well? Obviously, gold grades has been quite strong. Just trying to understand if you can maintain and sustain that level at around 5 grams per ton. What does the mine plan look like for Manitoba? Thank you.

Speaker #9: Can I Great . just follow up on Manitoba as well ? Obviously , gold grades has been quite strong . Just trying to understand if you can maintain and sustain that level at around five grams per tonne .

Speaker #9: does the What mine plan look like for ? For Manitoba ? Thank you .

Andre Lauzon: I'll add, and if you can add if I miss something there. Manitoba, again, resilience. The team, unfortunately, with the wildfires going into the year, we were on track to exceed gold, the high end of guidance. That's why, despite being down for 2 months with the evacuations, we're still in really good shape, and the team is ramped up. We are in a high-grade cycle right now. I won't say the grade 'cause you'll project it to the end of the year, but we are in a very high-grade cycle of both copper and gold right now. The mill is sweet.

Speaker #6: So I'll , I'll add in . Peter , if I miss something . There is so so Manitoba like again resilience . The team unfortunately with the wildfires going into the year , we're on track to exceed gold .

Speaker #6: The high end of guidance , you know . And that's why you know , despite being down for two months . With the evacuations we're still in really really shape .

Speaker #6: has good ramped And . We a in a high grade are in cycle right You know , I now . won't say the great because you'll the end of project it to we are in the year .

Speaker #6: a But very , very high , high grade cycle of both copper and gold right now . And and the mill is , we , you know , to is that extent we have to slow down the rate because the grade was a little bit high .

Andre Lauzon: You know, to that extent, we have to slow down a bit because the grade was a bit high. Overall, very confident in the grade to deliver to the end of the year and meet our gold consolidated guidance, as we said.

Speaker #6: But overall , very confident in the grade to deliver to the end of the year . And , and meet our our goal , consolidated guidance .

Speaker #6: As we said .

Peter Kukielski: I would add, Marcio, that, you know, the average grade that in the mine plan is 4.5 to 4.6 grams per ton, which is the basis for our mine plan. You know, we expect to average those grades through Q4 and throughout 2026.

Speaker #3: But I would add to that that the average grade that the mine plan is four and a half to to 4.6g per tonne , which is the basis for for our mine And , you know , plan .

Speaker #3: we expect to average those grades through the fourth quarter and throughout 2026 . Yeah , great .

Andre Lauzon: Yeah.

Marcio Farid: Great. Thank you.

Speaker #9: Thank you .

Andre Lauzon: You're welcome.

Speaker #3: Welcome .

Operator: The next question is from Martin Pradier with Veritas Investment Research. Please go ahead.

Speaker #1: The next question is from Martin Poirier with Veritas Investment Research . Please go ahead .

Martin Pradier: Hi. Thank you. Some of my questions have been answered. In terms of the Q4 for BC, are you expecting to be lower than Q3? Because there's a couple of moving parts. I think you have lower grade and the throughput, I think it should be higher because now you have the second mill. I am just trying to understand that.

Speaker #10: Hi . Thank you . Some of my questions have been answered . But in terms of the Q4 for BC , are you expecting to be lower than Q3 because a couple of more moving parts , I think you have lower grade and the throughput .

Speaker #10: I think it should be higher because now you have the second mill . So I'm just trying to understand that .

Andre Lauzon: Sure. Sure. It kinda answered the question. The reason why we're saying we're right at, gonna be at the low end of copper guidance is because it is, we're dealing with that situation that I described on the ramp up. The incident that happened at the SAG one mill was right at the end of Q3. There will be compensating effects like SAG two is compensating for SAG one, but the throughput is built into that projection of achieving that low end of copper guidance.

Speaker #6: I Sure . , I kind of answered the question . The reason why we're we're saying we're right at going to be at the , at the , at the low end of copper is because guidance it is we're dealing with that situation that I described on the ramp up .

Speaker #6: So that the incident that happened at the SAG one mill was right at the end of Q3 . So there will there will be compensating effects like SAG two is is compensating for SAG one .

Speaker #6: But the throughput is is built into that projection of of achieving that low end of copper guidance .

Speaker #5: So consolidated .

Eugene Lei: On a consolidated basis.

Andre Lauzon: On a consolidated basis. That's why we're telegraphing that BC was going to be below the low end on its individual guidance is because of that incident. Otherwise, we would have been in a good spot. The ramp up's ongoing right now. We're quite pleasantly surprised and pleased with the team on how quickly they're ramping up. There is an impact in the quarter, and that's why we're telegraphing to the low end of copper guidance consolidated.

Speaker #6: On a , on a consolidated basis . So , so that's why we're telegraphing that BC was going to be below the low end on , on its individual guidance is because of that incident .

Speaker #6: Otherwise we were we would have been in a good spot . So the ramp up is ongoing right now . We're we're quite pleasantly surprised and pleased with the team .

Speaker #6: On how quickly they're ramping up . But there is an impact in the quarter and that's why we're we're telegraphing to to the low end of copper guidance .

Speaker #6: Consolidated .

Martin Pradier: Yeah, I understand that. You expect it to be higher or lower than Q3?

Speaker #10: Yeah I understand that . But you expect it to be higher or lower than Q3 .

Andre Lauzon: Lower. We are running SAG 2 in Q3. SAG one was running at its typical capacity. It's not running at full capacity right now. It's still, we're in the ramp-up mode. It's going to be close, but it's probably a little, a little bit less. The grade is, in this quarter, is different than in Q3. I'd say the grade compensates for it because we were mining a lot of low-grade stockpiling in Q3, and we are seeing a bit higher grades than normal right now. They kind of balance each other off. It's not our strongest one from BC, you know, that's why we telegraphed it to the bottom end.

Speaker #6: Or like like it's it's so we are running SAG to in in Q3 . So and and so and sag SAG one was running at its typical capacity .

Speaker #6: It's not running at full capacity right now . It's still we're in the ramp up mode . And so it's not it's going to be close but it's it's probably a little a little bit less .

Speaker #6: But the grade is in this quarter is is a different than in Q3 . I'd say the grade compensates for it because we were mining a lot of low grade stockpiling in Q3 .

Speaker #6: And and we are seeing a bit higher grades than normal right now . So they kind of balance each other off . It's it's not our strongest one from BC , you know .

Speaker #6: And that's why we telegraphed it to the bottom to the bottom end .

Martin Pradier: Great. Thank you. That's very helpful.

Speaker #10: Great . Thank you . That's very helpful .

Operator: The next question is from Fahad Tariq from Jefferies. Please go ahead.

Speaker #1: The next question is from Fahad Tariq from Jefferies . Please go ahead .

Fahad Tariq: Hi. Thanks for taking my question. Just coming back to topic, Pampacancha in the Q4, how should we be thinking about mining rates? Like, is it gonna be similar levels to the Q3? That was my understanding from the answer to the previous question.

Speaker #11: Hi . Thanks for taking my question . Just coming back to Pampaqucha in the fourth quarter . How should we be thinking about mining rates ?

Speaker #11: Like is it going to be similar levels to the third quarter ? That was my understanding from the answer to the previous question .

Andre Lauzon: Yes.

Speaker #3: Yes , yes , yes , that's .

Peter Kukielski: Yep. Yep. That's fair.

Speaker #6: Fair .

Fahad Tariq: That's fair? Okay. Then the remaining feed, should we assume that the Constancia pit is the remainder versus being stockpiled in Q4?

Speaker #11: That's fair . Okay . And then the remaining feed , should we assume that the pit is the remainder versus being stockpiles in the fourth quarter ?

Andre Lauzon: We're back mining in Constancia, it's a mixture of the two, whatever makes the most sense. Yes, we're back in it, Constancia for the remainder.

Speaker #6: We're back mining in Costanza . So mixture of the two . it's a Whatever makes the most sense . But yes , we're back in a for the remainder .

Fahad Tariq: Okay, great. Just, unrelated, but switching gears to Manitoba, can you just let us know how much you expect to receive from the insurance claim related to the wildfires?

Speaker #11: great . And then Okay , just unrelated , but switching gears to Manitoba , can you just let us know how much you expect to receive from the insurance claim related to the wildfires ?

Eugene Lei: It's a bit premature to give you a number. As you know, we have good coverage that covers both property and business interruption. Business interruption has a 30-day standard deductible. We're really grateful that there wasn't any significant damage on a property basis and given our proactive defense activities. We submitted the claim, and we'll get you a number kinda in 2026. A bit premature to give you an exact number today.

Speaker #5: It's a bit premature to to give you a number , but as you know , we have we have good coverage that covers both property and business interruption and business interruption has a 30 day standard deductible .

Speaker #5: So we're really grateful that there wasn't any significant damage on our property basis . And given our proactive defenses , activities . And defense so we're we submitted a claim and we'll we'll , we'll give you we'll get you a number kind of in 2026 .

Speaker #5: But it's a bit premature and too exact to give you a number today.

Fahad Tariq: Okay. Fair enough. Thank you.

Speaker #11: Okay . Fair enough . Thank you .

Operator: Once again, if any analyst who has a question can press star then one. The next question is from Stefan Ioannou with Cormark Securities. Please go ahead.

Speaker #1: Once again, any analyst who has a question can press star, then one. The next question is from Stefan Ioana with Cormark Securities.

Speaker #1: Please go ahead .

Stefan Ioannou: Yeah, thanks very much. Maybe a tough one to answer, just, you know, when we think about growth and the next steps for Hudbay, should we just assume in the near term, all hands on deck are gonna be focused solely on Copper World? Or should we start to think about maybe more news or thought or consideration given to other projects or assets in the company's portfolio?

Speaker #12: Yeah . Thanks very much . Maybe a tough one to answer , but just , you know , when we think about growth in the next steps for Hudbay , should we just assume in the near term , all hands on deck are going to be focused solely on on Copper World ?

Speaker #12: Or should we start to think about maybe more news, thought, or consideration given to other projects or assets in the company's portfolio?

Peter Kukielski: Morning, Stefan. Thanks for the question. The one thing that we've tried to make very, very clear is with having retired the 3P plan now, having procured the joint venture partner for Copper World, we are now in an extremely strong position to be able to fully fund Copper World, as well as to continue to pursue high return, low risk brownfields production improvement projects across the portfolio. I think what you'll see is that we talked today a little bit about the exploration efforts that are underway with advancing 1901, et cetera. We've got the pebble crushing circuit in Peru next year, a bunch of these things.

Speaker #3: Stefan , thanks for the question . I so , so the one thing that we've tried to make very , very clear is with having retired the £0.03 plan now , having procured the joint venture partner for Copper World , we are now in an extremely strong position to be able to fully fund Copper World as well as to continue to pursue high return , low risk brownfields production improvement projects across the portfolio .

Speaker #3: So I think what you'll see is that we talk today a little bit about the exploration efforts that are underway . With advancing 1901 .

Speaker #3: cetera . ET ET we've got the the pebble crushing circuit in Peru next year , a bunch of these things . So so think you can be assured that we will continue to invest in the portfolio as well as to to continue pushing Copper World .

Peter Kukielski: I think you can be assured that we will continue to invest in the portfolio as well as to continue pushing Copper World. Remember, Copper World is one single integrated team, and we are a decentralized organization with different business units who will continue to pursue.

Speaker #3: Remember , Copper World is one single integrated team , and we are a decentralized organization with business units different who will continue to pursue their other projects .

Peter Kukielski: their other projects.

Stefan Ioannou: Yeah, okay.

Eugene Lei: Stefan, if I could add to that, you know, we're in a really enviable position with our strong balance sheet and cash balance where we're gonna be able to build Copper World with very little capital till 2028. We're gonna be able to build Copper World, reduce our leverage, de-lever, and allocate capital to other business units so that we're able to reinvest in building up additional production capacity in Manitoba, in BC, in Peru, and advance even Mason. I think it's a really enviable position where coming out of the decade, we will have built Copper World, have lower debt, and invested in all the other areas and built up our entire business.

Speaker #5: Yeah , Stefan , if I , if I could add to that , you know , we're in a really enviable position with our strong balance sheet and cash balance where we're we're going to be able to build copper World with little very capital to , till 2028 .

Speaker #5: We're going to be able to build copper World , reduce our leverage . Delever and allocate capital to other business units so that we're able to reinvest in building up additional production capacity and in Manitoba , in BC , in in Peru and advance even Mason .

Speaker #5: So I think it's a really enviable position . We're coming out of the decade . We will have built Copper World , have lower debt and invested in in all the other , and areas built up our entire business .

Eugene Lei: That was the benefit of bringing in this joint venture partner to fund, you know, a significant portion of the Copper World cap, Copper World capital, was because we saw so much opportunity within our portfolio to invest to grow the other parts of the business as well. It's pretty exciting and, for us to be in this position to be able to do that.

Speaker #5: And that was the benefit of bringing in this joint venture partner to fund , you know , a significant portion of the copper world Cup , Copper World Capital was saw so much because we opportunity within our portfolio to invest , to grow the other the other parts of the business as well .

Speaker #5: And it's pretty exciting . And for us to be in this position , to be able to to do that .

Stefan Ioannou: Okay, great. No, that's very helpful. Thanks very much, guys.

Speaker #12: Okay , great . Great . That's very helpful . Thanks very much , guys .

Peter Kukielski: Welcome.

Speaker #3: Welcome .

Operator: This concludes the question and answer session. I'd like to turn the conference back over to Candace Brûlé for any closing remarks.

Speaker #1: This concludes the question and answer session . I'd like to turn the conference back over to Candace Brule for any closing remarks .

Candace Brûlé: Thank you, operator, and thank you everyone for joining us today. If you have any further questions, feel free to reach out to our investor relations team. Thanks, and have a great day.

Speaker #2: . Operator . Thank you And thank you , everyone for joining us today . If you have any further questions , feel reach out free to to our Investor Relations team .

Speaker #2: Thanks, and have a great day.

Operator: Ladies and gentlemen, this concludes the conference call for today. You may now disconnect your lines. Thank you for participating, and have a pleasant day.

Speaker #1: Ladies gentlemen , this concludes the conference call for today . You may now disconnect your lines . Thank you for participating and have a pleasant day .