Hudbay Minerals tops Q2 revenue and EPS estimates, announces $600 mln JV with Mitsubishi Corp

Overview

• Hudbay Q2 revenue of $536.4 mln beats analyst expectations, per LSEG data

• Adjusted EPS of $0.19 exceeds estimates, driven by strong cost control

• Co announces $600 mln Copper World JV with Mitsubishi, enhancing financial strength

Outlook

• Hudbay reaffirms 2025 copper production guidance of 117,000-149,000 tonnes

• Company improves 2025 cash cost guidance to $0.65-$0.85 per pound

• Hudbay advances Copper World project towards 2026 sanction decision

• Company highlights strategic partnership with Mitsubishi reducing funding needs

Result Drivers

• COST CONTROL - Strong cost control across operations contributed to industry-leading margins, driving financial performance

• COPPER AND GOLD EXPOSURE - Diversified exposure to copper and gold across operations supported revenue growth

• JOINT VENTURE - Copper World JV with Mitsubishi reduced funding requirements and enhanced financial strength

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty mining & metals peer group is "buy"

• Wall Street's median 12-month price target for Hudbay Minerals Inc is C$17.00, about 20.2% above its August 12 closing price of C$13.57

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNXbNXW0G