2025 Annual Report
the
Gold Standard
in Copper
CEO MESSAGE OUR FEATURE STORIES OUR COMPANY BUSINESS AND FINANCIAL REVIEW SUSTAINABILITY APPROACH
PEOPLE
COMMUNITIES PLANET SUSTAINABILITY PERFORMANCE ABOUT THIS REPORT
Table of Contents
CEO MESSAGE 3
OUR FEATURE STORIES 7
OUR COMPANY 13
Overview 14
Values and Purpose 15
Corporate Governance 16
Board of Directors 17
Business Conduct 19
Risk Management 21
Strategy 23
Management Team 24
BUSINESS AND FINANCIAL REVIEW 25
Overview 26
Key Accomplishments 27
Operations and Financial Summary 28
Business Activities 29
Financials 31
Business Objectives for 2026 32
SUSTAINABILIT Y APPROACH 33
Sustainability Governance 34
Materiality 38
Stakeholder Engagement 41
United Nations Sustainable Development Goals 44
Human Rights and Security 45
Tailings Stewardship 47
Responsible Supply Chain 49
PEOPLE 51
Our Approach 54
Peru 56
Manitoba 59
British Columbia 61
Arizona and Nevada 63
COMMUNITIES 65
Our Approach 68
Peru 71
Manitoba 74
British Columbia 76
Arizona and Nevada 78
PLANET 80
Our Approach 83
Peru 87
Manitoba 90
British Columbia 92
Arizona and Nevada 94
SUSTAINABILIT Y PERFORMANCE 95
Basis of Reporting 96
Key Performance Data 97
2025 Targets and Achievements 119
2026 Targets 120
GRI and SASB Content Index 121
CSDS 2 Index 137
ABOUT THIS REPORT 139
Contact Us 144
Glossary 145
Our Annual Report
Cover photo: One of our employees stops for a photo underground at our Snow Lake operations in Manitoba, Canada. Hudbay has had a presence in Manitoba for nearly 100 years, and we pride ourselves on our ability to create shared prosperity for our communities and local governments that spans generations.
Two haul trucks at our Copper Mountain mine in British Columbia, Canada. In 2025, these trucks operated on shallower inclines
compared to 2024, which resulted
in lower fuel consumption per kilometre. This, in turn, reduced overall energy intensity for the mine site.
Welcome to Hudbay's 2025 Annual Report. It captures our strategic priorities and direction, offers annual financial and sustainability performance (aligned with recognized global reporting standards), and provides insights and feature stories about Hudbay's priorities, activities and operations. For more information on our climate-related disclosures, please see our Climate-Related Disclosure Supplement.
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Watch Video
I can think of no better way to end one year and begin another. Reflecting on our achievements over the past year, I want to acknowledge each team member's contribution to
a year marked by resilience and that saw us meeting our consolidated copper production guidance for the 11th consecutive year."
Peter Kukielski
President and CEO
The Gold Standard in Copper
Our theme this year is not a boast about things we've done. Rather, it is a commitment to a goal we are pursuing relentlessly across Hudbay, in everything we do - in performance, in sustainability, as an employer and as a neighbour -to set the Gold Standard in Copper. Our achievements in 2025 exemplified
this commitment.
During a year marked by wildfires and adverse weather in Manitoba and social unrest in Peru, Hudbay employees showed grit and resilience while delivering steady performance and execution. In the face of these challenges, our people kept each other safe and still delivered on our consolidated guidance.
In Arizona, we secured both a premier long-term strategic partner and the final financial element in our Three Prerequisites (3-P) Plan, with Mitsubishi Corporation's (Mitsubishi) acquisition of a 30% interest in Copper World for an initial cash contribution of $600 million.
The agreement with Mitsubishi, a robust market for copper and gold alongside the unique diversification of our copper and gold platform, and a steadfast focus on fiscal discipline, allowed us to further strengthen our balance sheet and contributed to historic achievement. In January 2026, for the first time in our nearly 100-year history, Hudbay surpassed a $10 billion market capitalization.
I can think of no better way to end one year and begin another. Reflecting on our achievements over the past year, I want to acknowledge each team member's contribution to a year marked by resilience and that saw us meeting our consolidated copper production guidance for the 11th consecutive year.
In 2025, across the Company, every business unit and division played a part in helping Hudbay strengthen its foundation for enduring success across every aspect of our operations.
Peru
The South America Business Unit demonstrated remarkable operational resilience and delivered exceptional performance throughout 2025. Most notably, Peru reported zero lost-time incidents for the year and still delivered its targeted copper guidance and exceeded its gold guidance despite challenges related to nationwide social unrest.
In September, along with other mines in the southern mining corridor, Constancia was affected by local protests and illegal blockades near the mine site. These actions disrupted routines at the mine, led to disruptions in our supply and
concentrate transportation routes, and ultimately resulted in a brief shutdown of mining and milling operations to ensure the safety of our employees and the protestors.
The protests were resolved peacefully in alignment with the Voluntary Principles on Security and Human Rights, reinforcing the importance of building strong relationships with our neighbours and contributing to the prosperity of local communities and the region. A recent ranking conducted in Peru recognized Hudbay
as the leading private sector mining firm with the highest number of community Works for Taxes projects in 2025.
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As noted, our team in Peru continued to outperform during this period. In addition to meeting copper guidance and exceeding gold guidance, we successfully completed all planned projects for the year. In 2026, we plan to make further major investments in our processing infrastructure with new pebble crushers and improvements in Constancia's flotation circuit, which together with additional permitting amendments, are expected to further increase throughput to 34 million tonnes per year by 2027. These steps will help ensure that Constancia maintains steady annual copper production despite the depletion of the high-grade Pampacancha satellite deposit in December 2025. Constancia is expected to remain highly productive throughout its long mine life, currently projected to 2040.
During the year, we continued to work on strengthening relationships and progress towards exploratory drilling at Maria Reyna and Caballito. We are also building relationships with more communities in the region, and, in light of steady, strong copper prices, we are re-evaluating the potential of the Llaguen project in northern Peru.
Manitoba
In 2025, the leading story for Manitoba and its people, as well as for Hudbay, was the impact of wildfires that raged across northern Manitoba and Saskatchewan from late spring into August (see feature story on page 7). The communities of
Flin Flon, Snow Lake and surrounding areas were evacuated during the summer, and there were temporary shutdowns and production cuts at our Lalor mine and at our mills. While the impact of the fires was devastating, the response of our people in Manitoba and across the organization was inspiring - their actions brought Hudbay's values to life.
As the fires raged, many of our employees were volunteer firefighters, putting themselves on the line for their communities. Equally, the emergency responders at our Manitoba operations did incredible work to ensure the safety and security of our operations.
Hudbay's roots and much of its future lie in Manitoba. We felt it was important to support relief efforts, such as the Canadian Red Cross' work in the region, and initially donated C$500,000. Subsequently, in partnership with Vale Base Metals and Alamos Gold, we collectively contributed C$1.25 million to support residents and Indigenous communities directly affected by the fires. Hudbay also established a community relief fund, to which we contributed $2 for every
$1 donated by our employees, raising an additional C$137,208.
Both during and beyond the wildfires, the Manitoba Business Unit (MBU) demonstrated operational excellence and resilience. Snow Lake is the lowest cost gold mine in Canada and is expected to consistently deliver an average of 185,000+ ounces of gold per year for many years. The MBU is a major contributor to our significant free cash flow generation and our continued deleveraging achievements.
Building on Manitoba's platform, we are moving forward with an ambitious exploration program of approximately $50 million for the region reflecting our confidence its contribution can grow even further. This exploration program is underpinned by a three-pronged approach to find a new anchor deposit, conduct near-mine exploration at Lalor and 1901, and upgrade our satellite deposits. These deposits constitute an attractive potential supplemental feed to the Stall and New Britannia mills, while we continue to search for the next anchor deposit in Manitoba.
Our regional exploration strategy is conducted in concert with community engagement initiatives, focusing on economic reconciliation through partnerships with First Nations and Indigenous groups, such as the Kiciwapa Cree Nation, the Mosakahiken Cree Nation and the Red River Métis.
We also made progress on studies aimed at advancing the processing and recovery of valuable ore from the tailings' ponds around Flin Flon, which will also reduce the environmental legacy of those tailings. At Snow Lake, we are moving forward with additional improvement initiatives to further enhance milling efficiencies and maximize cash flows.
British Columbia
Hudbay's purchase of Copper Mountain in 2023 expanded our resource base and company scale, which contributed to enhancing our shareholder base. Since the acquisition, we have been applying Hudbay's expertise, with a focus on improving the mine's operational efficiency - including processes, safety and culture. These efforts reflect our confidence in Copper Mountain's potential as
a near-term growth engine for Hudbay.
In July, the Copper Mountain team delivered the early completion of the first phase of conversion of the mine's existing ball mill 3 into a secondary semi-autogenous grinding (SAG) mill. The combination of two SAG mills and two ball mills increased the mine's grinding capacity, and by September, it achieved a throughput of
50,000 tonnes per day (tpd) for several days. Despite a mechanical failure with SAG 1 in late September, Copper Mountain is ramping up towards a consistent 50,000 tpd by mid-2026. The two SAG mills are also expected to improve energy efficiency and copper recoveries at the mine.
To complement the mine's increased milling capacity, we are pursuing development activities to add production and mine life extension as well as taking steps to reduce operational bottlenecks. In late February 2026, we received the permits for the development of the New Ingerbelle satellite pit, which will support continued copper production, increase gold production and provide the potential for mine life extensions. We have plans in 2026 to drill at New Ingerbelle to convert high value inferred resources and further extend mine life at Copper Mountain.
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In February 2026, we finalized refreshed participation agreements with the Upper Similkameen Indian Band (USIB) and the Lower Similkameen Indian Band (LSIB), a critical milestone in advancing closer ties between these communities and the mine.
To ensure Copper Mountain reaches its potential, we need to make certain that the project delivers lasting benefits to local communities and that their interests and concerns are reflected in every aspect of the operation, from planning
to execution. This is why our participation agreements, which ensure First Nations benefit from skills training and employment, are foundational to Copper Mountain's success.
Arizona and Nevada
In August, we announced a joint venture partnership with Mitsubishi Corporation for Copper World (see feature story on page 9). For a 30% joint venture interest in the project, Mitsubishi committed to an initial investment of
$600 million, comprising $420 million at closing and $180 million within 18 months of closing.
An aerial view of part of our Copper Mountain mine in British Columbia, Canada.
By securing a joint venture partner, Hudbay completed the final financial hurdles of its prudent 3-P financial plan for sanctioning and developing Copper World. We are continuing with feasibility studies and expect to complete the definitive feasibility study in mid-2026, followed by our final sanction decision for the project.
Our partnership with Mitsubishi has had a material impact on the Copper World project and Hudbay. This agreement marks the first time in several decades that Mitsubishi has partnered with a
mid-tier miner. Establishing a long-term strategic partnership with an organization of Mitsubishi's stature and history not only validates the project's remarkable potential but also recognizes Hudbay's operating and development capabilities, the strength of our deleveraged balance sheet and our growing reputation as a leader in the copper sector.
Joint venture partnerships have built some of the world's best mines. By leveraging our complementary strengths, Hudbay and
Mitsubishi are well positioned to deliver a world-class copper project, contribute directly to the critical minerals supply chain of the United States with "made in America" copper and create value for all our stakeholders.
At present, we are actively advancing the next stage of Copper World's development, which includes expanding our workforce to meet growing demands, proceeding with feasibility and engineering studies, anticipating and mitigating potential risks and challenges, and further strengthening our relationships with local communities, unions and governments.
In Nevada, our Mason project presents another long-life copper project with outstanding potential, and we plan to initiate pre-feasibility studies in 2026.
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Crossing a Financial Threshold
Hudbay's focus over the past several years on strengthening our balance sheet, reducing debt and maintaining financial discipline across the business has been as important to the Company's future as any mining project.
In 2025, we reaped significant rewards from our efforts.
During the year, we achieved record annual revenue of $2.2 billion, record annual adjusted EBITDA1 of $1.1 billion and generated over
$380 million in free cash flow, all while significantly deleveraging, leaving us with the lowest financial leverage among our peer group. Encouragingly, the market took note of what was happening
at Hudbay. As mentioned earlier, we achieved a record market capitalization of $10 billion.
Over the same period, our share price rose by approximately 134%, following an approximately 60% gain in 2024.
We finish the year in arguably the best financial position Hudbay has seen in its nearly 100-year history. We are well-positioned to continue reducing debt while investing in the opportunities available through our outstanding growth pipeline, not just at Copper World, but across our operations and our high-potential project portfolio.
We also recognize that realizing these opportunities depends on maintaining, and whenever possible increasing, our financial discipline and vigilance. Going forward, our commitment to prudent financial management remains unwavering.
Sustainability
As we enter what I believe will be a period of unprecedented growth, development and productivity for Hudbay, it is essential to reaffirm that sustainability is central to our purpose.
We remain committed to meeting our 2030 greenhouse gas reduction targets at each of
our producing operations and to working closely with our mines to advance their plans to reduce emissions in areas with the greatest impact
on their operations. Across all our mines and projects, we concentrate on tangible emissions rather than theoretical targets. Our goal is to make a real difference.
Reducing Hudbay's carbon footprint is an important part of our sustainability strategy. As outlined in the Planet section of this report, we are also focused on water stewardship, biodiversity protection and contributing to the
well-being of communities near our operations. Everywhere we operate, we seek to engage with Indigenous and local communities and to find ways, particularly through supporting local development and employment opportunities,
to strengthen our ties to our neighbours.
Looking Forward
Hudbay is firmly established in Peru, is advancing game-changing developments in Arizona, and has a highly prospective project in Nevada, but we remain a Canadian company. In Manitoba, we anticipate long term gold growth driven by an exceptional portfolio of low capital intensity projects, while In British Columbia, we are looking forward to the New Ingerbelle expansion. Given recent changes in the national mining ecosystem, Hudbay will soon be recognized as the number one copper producer in Canada.
With the performance of our mines in BC and Manitoba, the significant potential to expand both our base metal and gold production in both provinces, and the exceptional promise of Copper World coupled with the impact of the announcement of our acquisition of Arizona Sonoran in March 2026, Hudbay is poised to become a North American leader in copper and other critical minerals.
We are supporting our ambitions through investments in exploration and development everywhere we operate. Our roots are in Canada, and we are working to open the doors to further opportunity as we build a North American copper champion.
Hudbay ended 2025 in an exceptionally strong position. We have the right team, the right partners, the right financial approach, and the right properties in the right places.
Looking at our people and our potential, I can think of no other company that is better able, or better placed, to set the Gold Standard in Copper.
Peter Kukielski
President and Chief Executive Officer
1 Net debt and net debt to adjusted EBITDA ratio are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the "Non-GAAP Financial Performance Measures" section in the Company's management's discussion and analysis for the period ended December 31, 2025.
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FEATURE S T OR Y
MANIT OB A
Hudbay is woven into the story of northern Manitoba. We began there as
a company almost 100 years ago, and the town of Flin Flon grew up around our first mines. Today, we still have a presence in Flin Flon, and our thriving gold-copper mine, Lalor, is located two hours to the east, near the town of Snow Lake. We are at home in northern Manitoba.
In the summer of 2025, spurred by unusually warm temperatures and a lengthy drought, the northern region of Manitoba experienced the most catastrophic wildfires since the province began keeping electronic records 30 years ago. Over 1.55 million hectares were burned, and more than 17,000 people were displaced. The communities of Flin Flon, Snow Lake, Creighton and Denare Beach, where many of our employees live, were all impacted, and, as the fire encroached on their borders, all of them had to be evacuated at different times during the summer.
Inevitably, Hudbay's operations were impacted by the fires, and we took steps to protect our properties, but throughout the summer, our
first concern was always the safety and wellbeing of our people, our neighbours and their communities. During this period of incredible challenge, Hudbay's Manitoba team demonstrated outstanding resilience and a deep alignment with our purpose - We care about our people, our communities and our planet.
As it became clear, in late spring 2025, that the region was facing an exceptionally severe wildfire season, the MBU collaborated with municipalities in the area, as well as the
provincial government to monitor the situation, and to keep people informed about developments. The MBU issued over 80 "Plant Wide Notices" related to "Fire Communication" that included information on the status of the
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fires, community status updates,
possible evacuation orders, mental health programs and support initiatives -
some public, some specific to Hudbay employees - that were available to help people manage the impact of the fires on their daily lives. While gathering the information for the notices was a team effort, most were issued directly by the head of the MBU, initially Rob Carter and then John O'Shaughnessy, serving as a regular reminder that the fires and their impact were top priority for
Hudbay's leadership.
As the fires raged, Hudbay contributed to regional firefighting efforts. During the June fires, 60 Hudbay employees volunteered as firefighters, and during the July fires, 54 Hudbay employees volunteered as firefighters and dozens more took an active role in subsequent events. Mine rescue teams from Lalor provided emergency medical support
and assisted front-line firefighting efforts. In Snow Lake, Hudbay employees,
Jodi Cockle and Jon Young, volunteered in municipal roles, coordinating local fire defence strategies.
Hudbay also supported local authorities by providing personal protective equipment (PPE), maintenance equipment, material supplies and fuel access for response crews. The Company engaged external specialists to provide guidance on protecting vulnerable assets on or near our operations. Additionally,
Hudbay kept essential workers on-site or on standby during evacuations to safeguard infrastructure and help bring operations back online, safely and quickly, after receiving the "all clear" from local authorities.
When fire-driven evacuation orders were issued, first for Flin Flon on May 28, 2025 and later in the summer for Snow Lake on July 10, 2025, we focused on supporting our people and their communities.
As thousands of residents were uprooted, forced to leave their homes with little notice, Hudbay recognized the financial and emotional strain this placed on families. Initially, we committed $500,000 in direct financial support for evacuated employees, then increased it to $1 million, and finally to $1.6 million, helping
them cover the unexpected costs of
accommodation, supplies and travel during the emergency. We also implemented a flexible leave policy to ensure employees kept getting paid despite operational disruptions.
Our support for communities went beyond our workforce. We set up a Community Relief Donations Fund, pledging to double all employee contributions. Later, in partnership with our peers in the region, Alamos Gold and Vale Base Metals, we jointly donated close to $1.5 million to the Canadian Red Cross, helping to fund household and personal items, along with mental health services.
A helicopter helps put out fires near our operations in northern Manitoba in 2025.
When evacuation orders were lifted in affected communities, we helped our people make a safe transition back to their homes and back to work. And while our operations were shut down due to the fires, Hudbay sustained no significant damage and resumed activities safely and efficiently by August 27, 2025. Our capacity to respond to and recover from the wildfires reflects both Hudbay's culture and the resilience and grit of northern Manitoba, where that culture has its deepest roots.
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FEATURE S T OR Y
C ORPOR ATE
On August 13, 2025, Hudbay announced that it had signed a $600 million joint venture partnership with Mitsubishi Corporation, the storied Japan-based, globally integrated trading and investment company, for its Copper World project.
Under the agreement, Mitsubishi committed to acquiring a 30% interest in Copper World, with an initial cash contribution of $420 million at closing and an additional $180 million within 18 months. The joint venture partnership closed on January 12, 2026. Through the deal and the achievement of the Company's stated balance sheet targets ahead of schedule, Hudbay completed the final financial elements of its prudent 3-P strategy for developing Copper World, which is expected to become the next major copper mine in the US.
Beyond its contribution to moving Copper World forward, the agreement highlights an evolution in the Company's approach to mine development, leveraging partnerships to reduce risk, increase flexibility and extend reach. Simply put, strategic partnerships will open more doors and create more opportunities for Hudbay while delivering greater value to its stakeholders.
Mitsubishi Corporation traces its origins back centuries, making it an ideal partner in an industry where time horizons are long -
for exploration, negotiation, planning, development and, ultimately, profitability. Global trading houses are known for their "patient capital" approach. They are comfortable with investments measured in decades rather than quarters. That mindset aligns perfectly with Hudbay's portfolio of
long-life assets - projects like Copper World and Constancia that require time, persistence, and multiple commodity cycles to realize their full, long-lasting value. Hudbay's strengthened balance sheet made us an even more attractive partner for Mitsubishi.
Forging long-term partnerships: the Mitsubishi Corporation and Hudbay teams reach an agreement on a joint venture for Hudbay's Copper World project in Arizona, USA.
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Building our relationship took several years. We spent this time aligning our philosophies and values, while also demonstrating the project's potential and organizational capacity. Mitsubishi's investment is a notable vote of
confidence, especially from a global resource investor that had not partnered with a mid-tier miner for decades.
For Hudbay, the decision highlights the success of our long-term focus on cost management, thoughtful development, and disciplined operations.
With respect to Copper World, our partnership with Mitsubishi means the initial development of the project is effectively funded, and that Hudbay will not need to make any major capital investments until later in the project lifecycle - further derisking the project and preserving the strength and flexibility of our balance sheet.
Another long-term partner also played an instrumental role in building Copper World's exceptional financial foundation. Recognizing the project's outstanding long-term potential, Wheaton Precious Metals, a leader in the precious metals streaming sector, worked with Hudbay to amend its existing
precious metals streaming agreement. The new terms further strengthened Hudbay's financial exposure to the project and provided commitments for potential future expansions.
Partnerships are also playing a key role in Hudbay's activities beyond Copper World. In 2024, after extensive negotiations, Hudbay announced a joint venture agreement with Marubeni Corporation, which was further amended in 2026 to include the Japan Organization for Metals and Energy Security (JOGMEC). Marubeni and JOGMEG collectively have the option to fund at least C$18 million on exploration activities over the next several years to earn a 30% interest in three properties in Flin Flon, with Hudbay carrying out the exploration. The partnership has opened the way to exploration we might not have pursued at this time.
Our arrangements with Mitsubishi, Marubeni
and Wheaton all demonstrate the potential of partnerships, and affirm our conviction that partnerships are value enhancing. They are an important tool, and we will use them strategically, alongside other capital allocation
tools, when they make sense.
As Hudbay looks ahead to expansion at existing operations and new greenfield opportunities, such as the Mason project in Nevada, and more recently the Cactus project in Arizona, partnerships will remain an increasingly important tool in our toolkit. Whether we engage in partnerships through deepening relationships with existing partners or finding new ones, they will enable us to grow at our own pace and provide options and flexibility while maintaining capital discipline. It's a lesson we all learned on our first team activity - whether it was hockey, soccer or a school play - working effectively with others makes us stronger.
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FEATURE S T OR Y
A Commitment to CommunityPER U
Hudbay acquired the Constancia deposit in 2011. We began development and construction of the mine in 2012, and commercial production was achieved in 2015.
In the intervening years, Constancia has become one of the lowest cost open pit copper mines in South America with an estimated mine life of 15 years. Many factors contributed to this achievement, notably the close, mutually beneficial relationships we established with communities near Constancia. We support local businesses and provide direct employment to many people, helping them gain valuable, transferable skills they could apply to other mines and industries.
During our time at Constancia, we have also been affected by the social unrest and illegal blockades that occasionally occur in Peru.
A member of our Community Relations team meets with a local community member near our Constancia mine in Peru. We invest in our communities through long-term employment, local procurement and economic development to improve their quality of life and ensure communities benefit from our presence.
Fortunately, no serious incidents have occurred, due to both our focus on keeping people
safe - employees and protesters alike - and the broad support we enjoy among our neighbours.
However, in 2025, after several months of political unrest, a wave of regional protests swept across Peru's southern mining corridor, where Constancia and many of its peers' operations are located. Constancia was impacted by illegal blockades near the mine site. These activities disrupted the mine's operations and forced the drivers hauling copper concentrate to the port to take alternative routes.
Eventually, in late September, the decision was made to suspend operations at the mine as a precaution to ensure people's safety and to allow for a cool-down period, during which local authorities could address the protests.
Throughout the period of unrest, we maintained regular contact with community representatives, worked closely with community relations teams, and coordinated with local authorities to pursue a peaceful resolution.
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At all times, our actions were guided by the Voluntary Principles on Security and Human Rights, which Hudbay adopted in 2011. These principles were designed to help organizations like Hudbay maintain employee and operational safety while respecting human rights and international humanitarian law.
While the operations were temporarily suspended, our people were not idle. They performed preventive maintenance on the mill and other equipment. The team adapted its plans to mitigate the impacts of the social disruptions on the operations by increasing productivity at Pampacancha, bringing in higher grades and maintaining strong momentum before Pampacancha mining activities were completed at the end of the year.
In early October, following respectful dialogue and negotiations with community representatives, operations at Constancia resumed and the mill was quickly ramped up to full production. Despite interruptions and slowdowns that necessitated a new mine plan and concentrate routes, the Constancia team showed incredible resilience, and the mine met its copper guidance, exceeded its gold guidance
and remained on target for costs.
Constancia's remarkable performance despite considerable challenges underscores its value as a long-term resource for Hudbay, for communities near the mine and for Peru. This is a powerful message that we back with action. In recent years, we have made upgrades to our mill and increased throughput. These efforts include innovations such as installing a
100% hybrid liner in a mill with a 26x41 square-foot footprint. The hybrid liner incorporates metal, for strength, and rubber, which reduces the weight of the liner and makes it better able to withstand impacts associated with operating the mill. The new liner also helps reduce power consumption at the mill.
Constancia marks Hudbay's first use of this innovative approach at any of its operations. In 2026, we will introduce two pebble crushers and enhancements in the flotation circuit. Together with the ongoing permitting process for Maria Reyna and Caballito, these investments reaffirm Constancia's contribution to the region's
In December 2025, ProInversión, Peru's private investment promotion agency, recognized the Company as the leading private mining firm with the highest number of Works for Taxes projects.
lasting prosperity.
In December 2025, ProInversión, Peru's private investment promotion agency, recognized the Company as the leading private mining firm with the highest number of Works for Taxes projects.
This recognition underscores our corporate social responsibility policy and our commitment to closing social infrastructure gaps. Peru's Works
for Taxes program is a funding mechanism for local infrastructure and services development.
Looked at in balance, the story of Constancia is one of remarkable productivity and performance and constructive partnerships with local communities. Together, we are united by the shared conviction that Constancia must - and will - deliver enduring benefits to all our stakeholders.
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Our CompanyHudbay is a copper-focused critical minerals company with three long-life operations and a pipeline of copper growth projects in tier-one mining jurisdictions (Canada, Peru and the United States). Hudbay's operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Hudbay's growth pipeline includes the Copper World project in Arizona (United States), the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru), and several expansion and exploration opportunities near our existing operations. Hudbay also plans to add the Cactus project in Arizona (United States) to its growth pipeline through the acquisition of Arizona Sonoran Copper Company Inc. (Arizona Sonoran), announced in March 2026.
IN THIS SECTION
Overview 14
Values and Purpose 15
Corporate Governance 16
Board of Directors 17
Business Conduct 19
Risk Management 21
Strategy 23
Management Team 24
CEO MESSAGE OUR FEATURE STORIES
OUR COMPANY
BUSINESS AND FINANCIAL REVIEW SUSTAINABILITY APPROACH
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The value Hudbay creates and the impact it has is embodied in its purpose statement: "We care about our people, our communities and our planet. Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures for communities." Hudbay's mission is to create sustainable value and strong returns by leveraging its core strengths in community relations, focused exploration, mine development and efficient operations.
The Company is governed by the Canada Business Corporations Act, and its shares are listed under the symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima.
Peru
Constancia mine (Chumbivilcas) -15-year mine life
100% ownership
Open pit long-life copper/molybdenum mine
90,000-tonnes-per-day (tpd) concentrator processes Constancia ore
Annual average copper and gold production of ~87,500 tonnes and 18,500 ounces, respectively1
Operated the higher-grade copper/gold satellite open pit Pampacancha mine from 2021 until the end of 2025
Exploration properties near Constancia
Maria Reyna
Caballito
Kusiorcco
Llaguen (Otuzco)
100% ownership
Open pit copper project
Located near existing infrastructure, water and power supply
Manitoba, Canada
Snow Lake - 16-year mine life (based on mineral reserve estimates only)
100% ownership
Lalor is an underground gold/copper/zinc/ silver mine
1901 is an underground zinc/gold deposit
New Britannia mill processes gold-rich ore and Stall concentrator processes base metal ore
Annual average gold production of 190,000 ounces2
Exploration properties
WIM
Rail
New Britannia and its satellite zones
Talbot
Pen II
Watts
British Columbia, Canada
Copper Mountain - 20-year mine life
Acquired by Hudbay in 2023
100% ownership
Open pit copper/gold/silver mine
Targeted 50,000 tpd mill throughput
Annual average copper and gold production of ~48,000 tonnes and ~35,000 ounces, respectively3
United States
Copper World (Arizona) - 20-year mine life4
70% ownership
Open pit copper project
Expected annual average copper production of 85,000 tonnes over the mine life of Phase I4
Phase I with a 20-year mine life, requiring only state and local permits
BRITISH COLUMBIA
Copper Mountain New Ingerbelle Exploration
MANITOBA
Lalor 1901, WIM, 3 Zone
New Britannia
Flin Flon Tailings Reprocessing
Exploration
NEVADA
Mason Exploration
ARIZONA
Copper World
Cactus Exploration
PERU
Constancia Llaguen Exploration
Operations Development Exploration
Phase II has the potential to further extend the mine life through an expansion onto federal land
Mason (Nevada) - 27-year mine life
100% ownership
Open pit copper project
Expected annual average copper production of 139,000 tonnes5
Cactus (Arizona) - ~20-year mine life
100% ownership pending acquisition of Arizona Sonoran announced March 2026
Open pit copper project
Establishes a major copper hub in southern Arizona, adding to Hudbay's existing Arizona business, including the Copper World project
Expected annual average copper production of 103,000 tonnes based on Arizona Sonoran 2025 pre-feasibility study estimates6
Other Properties
Tailings reprocessing projects in Flin Flon, Manitoba
Flin Flon exploration projects in partnership with Marubeni and JOGMEC
Greenfield exploration properties in Canada, Peru and the United States
Annual average over the 2026-2028 period using the midpoint of three-year annual guidance for Peru dated March 27, 2026.
Annual average over the 2026-2028 period using the midpoint of three-year annual guidance for Manitoba dated March 27, 2026.
Annual average over the 2026-2028 period using the midpoint of three-year annual guidance for British Columbia dated March 27, 2026.
Based on Phase I of the Copper World mine plan, as contemplated in the pre-feasibility study dated September 8, 2023.
Mason production displays first 10-year average copper production of 139,000 tonnes, as disclosed in the 2021 preliminary economic assessment.
Cactus production displays first 10-year average copper production of 103,000 tonnes, as disclosed in the Cactus pre-feasibility study. The Cactus pre-feasibility study does not reflect Hudbay's technical or project design assumptions and should not be construed as such.
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Values and Purpose We care about our people, our communities and our planet.Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures
for communities.
Mission
To create sustainable value and strong returns by leveraging our core strengths in community relations, focused exploration, mine development and efficient operations.
WE TRANSFORM LIVES
We invest in our employees, their families and local communities through long-term employment, local procurement and economic development to improve their quality of life and ensure the communities benefit from our presence.
WE OPERATE RESPONSIBLY
From exploration to closure, we operate safely and responsibly, we welcome innovation and we strive to minimize our environmental footprint while following leading operating practices in all facets of mining.
WE PROVIDE CRITICAL METALS
We produce copper and other metals needed for everyday products and essential for applications to support the energy transition towards a more sustainable future.
Values
Dignity and Respect
We treat our stakeholders and each other in ways that bring out the very best in each of us.
Caring
We sustain and contribute to the well-being of people and the environment in which we operate.
Openness
We speak freely and listen with care about opportunities, issues and concerns.
Trustworthiness
We can count on each other to do the right thing, and we follow through on our commitments.
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Corporate Governance
Hudbay's purpose, mission and core values serve as guiding principles and support strong governance. Effective leaders, who are committed to transparency, accountability and ethical conduct, shape the Company's culture and ensure responsible decision-making for long-term success.
The Board of Directors at Hudbay is responsible for providing direction and oversight to the Company. Our Corporate Governance Guidelines set clear expectations for the functioning of the Board, its committees, individual directors and senior management. These expectations include upholding the highest standards of ethical conduct and prioritizing the Company's and shareholders' best interests.
Our Board members possess strong judgment and character, along with the knowledge to contribute meaningfully to the Company. As of January 1, 2026, nine out of 10 Board members were independent, non-executive directors, with Peter Kukielski, Hudbay's President and CEO, being the sole non-independent, executive director.
In 2025, Carol T. Banducci and Igor Gonzales did not stand for re-election at the annual meeting. Hudbay thanks them for their years of dedicated service and valuable contributions to the Company. Following a formal search, John E. F. Armstrong was nominated and elected at the annual meeting in May 2025 and Laura Tyler was appointed to the Board in September 2025. Their biographies are available on the Hudbay website.
The Board actively promotes diversity in gender, viewpoints, backgrounds, experiences and other demographics, including representation of Indigenous peoples, persons with disabilities and members of visible minority groups. As of January 1, 2026, 40% of our directors were women and one of our other directors identified as a member of an Indigenous group.
We employ the best people to foster a culture of openness, collaboration and curiosity, and to produce metals that are essential for modern society and a sustainable future.
The Board has five standing committees - Audit; Compensation and Human Resources; Corporate Governance and Nominating; Environmental, Health, Safety and Sustainability; and Technical -to assist the Board in fulfilling its duties.
To learn more, see our
Managemen t Information Circular .
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Board of Directors
David S. Smith Chair | John E. F. Armstrong Director | Jeane L. Hull Director | Carin S. Knickel Director | Peter Kukielski President and CEO | |
Director Since | 2019 | 2025 | 2023 | 2015 | 2019 |
Independent | Yes | Yes | Yes | Yes | No |
Gender (M/F) | M | M | F | F | M |
As of January 1, 2026, the following members were elected to Hudbay's Board of Directors:
Learn more:
Board of Directors' Biographies
Governance Policies, Standards,
Guidelines and Committee Charters Management Information Circular
George E. Lafond Director | Stephen A. Lang Director | Colin Osborne Director | Paula C. Rogers Director | Laura Tyler Director | |
Director Since | 2022 | 2019 | 2018 | 2023 | 2025 |
Independent | Yes | Yes | Yes | Yes | Yes |
Gender (M/F) | M | M | M | F | F |
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When assessing director nominees, we consider relevant skills and expertise, judgment and character, diversity, and the extent to which the interplay of an individual's expertise, skills, knowledge and experience with that of other members of the Board will build a board that
is effective, diverse, collegial and responsive to the needs of the Company.
50%identify as a member of a designated group1
Board Representation
Armstrong
Hull
Knickel
Kukielski
Lafond
Lang
Osborne
Rogers
Smith
Tyler
Audit Committee Member Member Member Chair
Compensation and Human Resources Committee Member Member Chair
Corporate Governance and Nominating Committee Chair Member Member
Environmental, Health, Safety and Sustainability Committee Member Chair Member
Armstrong
Technical Committee Chair Member Member
Hull
Knickel
Kukielski
Lafond
Lang
Osborne
Rogers
Smith
Tyler
Category Skill/Experience Leadership Public Company CEO
Includes women, Indigenous peoples and visible minorities.
Business Strategy, Capital Markets and M&A
70%have a high degree of experience in ESG2
Includes at least one of health, safety, environment and operations, and communities and sustainability.
Functional Experience
Core Industry
Governance
Finance and Financial Reporting
Health, Safety, Environment and Operations Government Relations and Regulatory Affairs Communities and Sustainability
Project Development and Execution Mine Planning, Metallurgy and Geology Mining Industry
Corporate Governance
Human Resources/Executive Compensation Risk Management
For more detail on the skills and qualifications of our directors, see our Management
Information Circular .
Other International Business
Indicates a high degree of experience or expertise in the subject area Indicates a reasonable degree of knowledge or some experience in the subject area.CEO MESSAGE OUR FEATURE STORIES
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Business Conduct
As we continue to grow, our commitment to maintaining the highest standards of conduct becomes even more critical. These standards, rooted in our core values, are articulated in our Code of Business Conduct and Ethics (the Code), as well as the Supplier Code of Conduct and Ethics. Our Customer Code of Conduct and Ethics establishes similar expectations for all customers engaging with Hudbay. These principles encompass avoiding conflicts of interest, ensuring compliance with legal requirements, safeguarding confidential information, maintaining a safe and healthy workplace, and fostering a culture of respect. Upholding these values is essential to sustaining trust and integrity as our organization evolves.
All Board members and employees are required to confirm their commitment to and understanding of our Code of Business Conduct when they join the Company. Directors and executive officers must also disclose any conflicts of interest to
the Board.
Each year, individuals with a Hudbay email address reaffirm their compliance with the Code, the Confidentiality and Insider Trading Policy, and the Statement on Anti-Corruption. Additionally, they acknowledge their understanding of our Whistleblower Policy, which strictly prohibits discrimination, harassment or retaliation against those reporting conduct that violates our Code
or any applicable laws.
While employees are free to participate in the political process as private citizens, our Code prohibits political contributions made on behalf of Hudbay. The Company remains committed to non-partisanship, ensuring engagement with all relevant government officials regardless of their political affiliations.
Compliance Training
Oversight of our global compliance program is provided by our Legal group. This includes adherence to our annual Certification Policy, which requires all new employees to read the Code upon hire or appointment and acknowledge that they will abide by it.
The Certification Policy also requires that all directors, officers and active employees across the organization annually certify their understanding of the Code and acknowledge they will abide by it.
We regularly conduct training sessions across the organization relating to applicable laws prohibiting bribery to ensure employees, especially those who may interact with government officials and other third parties, understand such laws and know how to comply
with them. In early 2025, we completed an online certification campaign in which all active employees received copies of the Code and our key compliance policies (including anti-corruption
policies) and were asked to e-sign the policies to certify their understanding of the policies and their compliance with them.
Our operations produce metals that are essential for modern society and a sustainable future while respecting our employees, our communities, the environment and the planet.
Building on our commitment to compliance and continuous improvement, we updated our Global Supplier Due Diligence Policy in January 2024, informed by insights from an internal audit of vendor onboarding procedures in Peru and recommendations from a third-party review. The revisions address key findings and align our practices with evolving global standards. Specifically, the updates aim to address internal audit findings regarding vendor onboarding in Peru, meet OECD requirements for due diligence and conflict minerals, integrate anti-slavery and responsible sourcing standards, and support our transition
to automated due diligence screening tools.
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Risks, Issues or Complaints
We conduct thorough assessments of bribery and corruption risks relevant to our business units and corporate office. Risks in Peru continue to pose the most significant challenges due to difficulties in monitoring compliance among contractors, agents and potentially employees as the Company grows, coupled with increased enforcement of anti-corruption laws. To mitigate these risks, we conduct targeted training on the Canadian Corruption of Foreign Public Officials Act (CFPOA) and the US Foreign Corrupt Practices Act (FCPA) for specific groups or roles deemed appropriate. This includes anti-corruption compliance training in Peru that addresses jurisdiction-relevant matters. We also have internal controls to pre-emptively detect potential violations and to monitor elevated-risk vendors.
In 2025, there were no substantiated accusations of corruption involving employees, contractors, agents or business partners. Although some allegations of minor fraud or breaches of our Code are made from time to time, most claims
in 2025, many of which were unsubstantiated, concerned behaviour contrary to applicable policies and procedures.
Stakeholders can report issues through various channels, including the following:
All projects and operating sites have a grievance process dedicated to addressing community concerns. Further details on community concerns in 2025 are presented in the Communities section of this report.
Shareholders can communicate directly with our Board of Directors by emailing our
Board Chair at chair@hudbay.com. The Chair of Hudbay's Audit Committee oversees confidential reports regarding perceived violations of the Company's internal and accounting controls, auditing matters, or violations of our Code or Supplier Code of Conduct via our whistleblower hotline.
Reports are managed in accordance with our Whistleblower Policy, and the committee chair ensures that reports are appropriately investigated. Reports can be submitted
by calling +1 877 457-7318 or visiting
https://www.clearviewconnects.com.
Canada's National Contact Point (NCP) for the Organisation for Economic Co-operation
and Development (OECD) serves as a platform for dialogue, aiding businesses, employee organizations and other concerned parties in resolving issues. Canada's NCP can be reached by email at ncp.pcn@international.gc.ca or by calling +1 343 203-2341.
The independent Canadian Ombudsperson for Responsible Enterprise (CORE) investigates human rights complaints related to Canadian companies operating overseas. More information about CORE's roles and responsibilities and complaint process is available on its website.
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Risk Management
Our operations, exploration and other activities are governed by a diverse framework of laws and regulations across multiple jurisdictions. We take a disciplined approach to identifying new and heightened risks, recognizing that these risks can vary significantly across the legal, environmental and social contexts of each region.
As we continue to grow and adapt, robust risk management is vital to achieving our business objectives and ensuring long-term success. We employ a comprehensive strategy to address complex risks and opportunities, with a particular focus on critical sustainability challenges such as climate change, water stewardship and community relations. By prioritizing effective risk management, we build resilience and accountability in an ever-changing global landscape.
Hudbay's enterprise risk management (ERM) framework provides a unified approach to identifying, analyzing and mitigating existing and emerging strategic risks. This framework is designed to embed effective risk management
practices and tools into the organization's culture, systems and processes.
The Board of Directors oversees Hudbay's risk management by evaluating the Company's principal risks. The Audit Committee supports this by reviewing policies and monitoring systems designed to manage these risks. Each committee is responsible for overseeing specific risks assigned by the Board or the Audit Committee and reviewing management's risk
management strategies.
Hudbay's executives are responsible for:
Operating within the risk appetite set by the Board;
We implement leading operating practices in all facets of our operations.
For detailed information on Hudbay's long-term and emerging risks and their potential impact on the business, please refer to the "Risk Factors" section of our Annua l Information Form .
Integrating risk management into strategic planning, budgeting, resource allocation and operational processes, including human resources, finance and compliance; and
Actively monitoring and addressing key business risks.
Risks are assigned to individuals with the relevant expertise and knowledge to ensure effective management and monitoring. Each business unit maintains risk registers, overseen by its respective vice president. Risks are consolidated at the company level, with Tier 1 and Tier 2 risks reported to the Board and appropriate oversight committees.
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Precautionary Approach
Hudbay is dedicated to applying the precautionary approach throughout the mine lifecycle - a risk management principle that emphasizes preventive measures when an activity may pose potential risks to human health or the environment. We prioritize preventive actions when they are within our capability and when potential harm, though unlikely, remains plausible.
By conducting baseline environmental and social impact assessments, we identify risks and develop action plans to avoid, mitigate or manage potentially significant impacts. This includes implementing appropriate monitoring and management systems, and ensuring responsible land reclamation and mine closure. Stakeholder input is actively sought at every stage.
Further details on how Hudbay integrates the precautionary approach into its material sustainability practices are provided throughout this report.
Climate Risks
We are dedicated to understanding and addressing the short-, medium- and long-term risks associated with climate change for our business and the communities in which we operate.
The Board's Environmental, Health, Safety and Sustainability (EHSS) Committee oversees climate-related risks. Through our ERM process, corporate and site leaders identify, review and manage such risks, with each risk assigned to a
designated risk owner. To date, we have reviewed the following climate risks:
Physical risks - In our most recent survey of locations, we identified the increased potential for wildfires associated with extremely hot and dry conditions. Worker safety is related to this risk, and several controls have been implemented to address it.
Transition risks - In our latest assessment, we identified medium-term transition risks. These include the cost of carbon, regulatory considerations and product market risks, particularly concerning emissions intensity per unit of product. To mitigate these risks, we have developed a GHG emissions reduction approach that we anticipate will have no adverse impact on our business performance.
To mitigate climate risks and deliver on our GHG reduction commitments, the ESG Steering
Committee, a group of leadership team members charged with providing a deeper level of planning for sustainability matters, conducted a thorough analysis of our GHG reduction efforts. In
January 2025, following this review, the committee approved a new approach that better reflects the diversified nature of our business.
This approach considers the differences between underground and open pit mining operations, and the unique demands of various business units in different locations.
Moving forward, we are committed to 2030 GHG intensity reduction targets for each of our business units aligned with their operational contexts. This will allow us to better track our performance and provide greater transparency for stakeholders.
We are also committed to setting a company-wide 2040 emissions reduction target for our Scope 1 and 2 GHG emissions, to be published in next year's Annual Report.1
Along with Scope 1 and 2 targets, we have developed a phased approach to understanding and addressing our Scope 3 emissions (see page 84).2
The demand for copper to support the energy transition remains strong, and we are confident that our efforts position us favourably in the evolving landscape of sustainability and
climate action.
The Task Force on Climate-related Financial Disclosures (TCFD) recommendations are voluntary guidelines focused on assessing climate-related risks and opportunities for businesses. Since 2021, we have mapped our disclosures to the TCFD's 11 disclosure recommendations across four key areas -governance, strategy, risk management, and metrics and targets. This year, we have advanced our disclosures to more closely align with Canadian Sustainability Disclosure Standard 2 (CSDS 2), which is the Canadian equivalent of the globally recognized IFRS S2. These disclosures are
largely represented in a separate Climate-Related Disclosure Supplement.
Scope 1 emissions are direct greenhouse gas (GHG) emissions from sources that are owned or controlled by an organization. Scope 2 emissions are indirect GHG emissions from the generation of purchased electricity, steam, heating and cooling, including from electricity purchased from the grid.
Scope 3 emissions are indirect GHG emissions not included in Scope 1 or 2 that are generated from activities not owned or controlled by Hudbay but that are included in our value chain.
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StrategyOur mission is to create sustainable value and strong returns by leveraging our core strengths in community relations, focused exploration, mine development and efficient operations.
Copper Focus - We believe copper has the best long-term supply-and-demand fundamentals. Global copper mine supply is challenged due to declining industry grades, limited exploration
Process - We develop a clear understanding of how an investment or acquisition can create value through our robust due diligence and capital allocation process, which draws on our
We believe copper has the strongest long-term supply-and-demand fundamentals and offers shareholders the greatest opportunity for sustained risk-adjusted returns. Copper is essential to meeting the energy transition and
AI technology needs - it is one of the most widely used metals in renewable energy systems and is a key component for power networks, circuit boards and cooling systems in data processing centres. Through the discovery and successful development of economic mineral deposits, and through highly efficient, low-cost operations to extract the metals, we believe sustainable value will be created for all stakeholders.
Hudbay's successful development, ramp-up and operation of the Constancia open pit mine in Peru, our long history of underground mining and full lifecycle experience in northern Manitoba, our track record of reserve expansion through effective exploration, and our organic pipeline
of copper development projects, including Copper World and Mason, give us a competitive advantage in delivering sustainable value relative to other mining companies of similar scale.
Over the past decade, we have built a world-class asset portfolio by executing a consistent longterm growth strategy focused on copper. We continuously work to generate strong free cash flow and optimize the value of our producing assets through exploration, brownfield expansion projects, and efficient and safe operations.
Furthermore, we intend to sustainably grow Hudbay through the exploration and development of our robust project pipeline, as well as through the acquisition of other properties that meet our stringent strategic criteria.
To ensure that any investment in our existing assets or acquisition of other mineral assets is consistent with our purpose and mission, we have established a number of criteria for evaluating these opportunities. The criteria include the following:
Sustainability - We focus on jurisdictions that support responsible mining activity. Our current geographic focus is on select investment-grade countries in the Americas that have strong rule of law and respect for
human rights, consistent with our longstanding commitment to ESG principles.
success and an insufficient pipeline of development-ready projects, while demand will continue to increase through global
decarbonization initiatives and the rapid growth of AI data processing centres. We believe this long-term supply/demand gap will create opportunities for increased risk-adjusted returns.
Gold Credit Exposure - While our primary focus is on copper, we recognize and value the polymetallic nature of copper deposits, particularly the counter-cyclical nature of gold in our portfolio.
Quality - We focus on investing in long-life, low-cost, expandable, high-quality assets that can capture peak pricing across multiple commodity cycles and generate free cash flow through the troughs of price cycles.
Potential - We consider the full spectrum of acquisition and investment opportunities, from early-stage exploration to producing assets, that offer significant incremental potential for exploration, development, expansion and optimization beyond the stated resources and mine plan.
technical, social, operational and project execution expertise.
Operatorship - We believe value is created by leveraging Hudbay's competitive advantages in safe and efficient operations as well as in effective exploration, project development and community relations. While operatorship is a key criterion, we are open to joint ventures and partnerships that de-risk our portfolio and increase risk-adjusted returns.
Capital Allocation - We pursue investments and acquisitions that are accretive to Hudbay on a per share basis. Given that our strategic focus includes allocating capital to assets at various stages of development, when evaluating accretion, we will consider measures such as internal rate of return (IRR), return on invested capital (ROIC), net asset value per share, and contained reserves and resources per share.
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Management TeamHudbay's proven management team is responsible for executing our strategies and demonstrating our purpose.
As of January 1, 2026, the following were members of Hudbay's management team:
Learn more:
Managemen t Team Biographies
Peter Kukielski
President and
Chief Executive Officer
Javier Del Rio
Senior Vice President, US Business Unit
Eugene Lei
Chief Financial Officer
Patrick Donnelly
Senior Vice President, Legal and Organizational Effectiveness
Andre Lauzon
Chief Operating Officer
Mark Gupta
Senior Vice President, Corporate Development and Strategy
Candace Brûlé
Senior Vice President, Capital Markets and Corporate Affairs
Olivier Tavchandjian
Senior Vice President, Exploration and Technical Services
Robert Carter
Senior Vice President, Canada
Jon Douglas
Vice President and Treasurer
Warren Flannery
Vice President, Copper World
Mark Haber
Vice President, Legal and Corporate Secretary
Thomas Karanikolas
Vice President, Finance
John O'Shaughnessy
Vice President, Manitoba Business Unit
Audra Walsh
Vice President, South America Business Unit
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Business and Financial ReviewIn 2025, Hudbay delivered record-breaking financial performance and established a groundbreaking joint venture partnership. Manitoba and Peru both overcame considerable external challenges to achieve our full-year consolidated copper guidance for the 11th consecutive year and consolidated gold guidance for the fifth consecutive year since establishing stand-alone gold guidance. We are also proud to have outperformed
our twice-improved annual cost guidance.
IN THIS SECTION
Overview 26
Key Accomplishments 27
Operations and Financial Summary 28
Business Activities 29
Financials 31
Business Objectives for 2026 32
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2025 was a transformative year for Hudbay as we delivered record annual revenue of $2.2 billion and exceeded $1 billion in adjusted EBITDA.1
Our diversified operating platform demonstrated exceptional resilience, overcoming external challenges in Manitoba and Peru, to generate over
$380 million in free cash flow and achieve a third consecutive year of record financial performance. We saw a standout performance in Peru, driven by high-grade Pampacancha ore, record monthly throughput at the New Britannia mill in Manitoba, and the successful completion of the second SAG mill feed system in British Columbia.
Prudent strategic financial planning and execution have enabled Hudbay to realize its balance sheet deleveraging goals and lower its cost of capital.
We now have the financial flexibility to sanction Copper World in 2026, embark on generational investments in the Company's operating portfolio and commence increases in shareholder returns with our first-ever dividend increase as part of our holistic Capital Allocation Framework. We are
well-positioned to continue delivering attractive growth while maximizing long-term risk-adjusted returns for our shareholders.
One of Hudbay's 10 battery-electric
vehicles in Manitoba that is helping
the local business unit rely less on diesel fuel.
1 Adjusted EBITDA is a non-GAAP financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the "Non-GAAP Financial Performance Measures" section in the Company's management's discussion and analysis for the period ended December 31, 2025.
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Key Accomplishments
Achieved record annual revenue of $2.2 billion and record annual adjusted EBITDA1 of
$1.1 billion in 2025, demonstrating the resilience and strength of Hudbay's diversified operating platform.
Reduced long-term debt by $185 million
through open market repurchases since 2024.
Achieved full-year consolidated copper and gold production guidance, with 118,188 tonnes of copper and 267,934 ounces of gold, despite mandatory wildfire evacuations in Manitoba and temporary operational interruptions in Peru resulting in production deferrals during the year.
Eleventh consecutive year in which Hudbay achieved its annual consolidated copper production guidance,2 since Constancia declared commercial production.
Fifth consecutive year of achieving annual consolidated gold production guidance, since establishing stand-alone gold production guidance.
Outperformed the twice-improved 2025 consolidated cash cost guidance, driven by strong cost control, higher metal prices
and meaningful exposure to gold byproduct credits, resulting in consolidated cash cost1 and sustaining cash cost,1 net of byproduct credits, of $(0.22) and $1.30 per pound of copper, respectively, in 2025, an improvement of 148% and 20%, respectively, compared to 2024.
Enhanced Capital Allocation Framework embedded into Hudbay's annual financial planning cycle to provide a holistic approach to capital allocation decisions, including capital deployment into brownfield projects, greenfield projects, strategic investments
and exploration, while considering debt repurchases, share buybacks and dividends.
Closed an accretive $600 million joint venture transaction with Mitsubishi Corporation in January 2026, securing a premier, long-term 30% strategic partner for the development of Copper World. Definitive feasibility study on track for completion in mid-2026 with a sanctioning decision expected in 2026.
Our operations have a solid track record of resilience and meeting guidance targets despite challenges.
Financial transformation has positioned the Company to introduce a new quarterly dividend of C$0.01 per share, an annual increase of 100% compared to the former semi-annual C$0.01 per share dividend, representing the Company's first dividend increase in its history.
Adjusted net earnings (loss) - attributable to owners and adjusted net earnings (loss) per share - attributable to owners, adjusted EBITDA, cash cost, sustaining cash cost, all-in sustaining cash cost per pound of copper produced, net of byproduct credits, cash cost, sustaining cash cost per ounce of gold produced, net of byproduct credits, combined unit cost, net debt, net debt to adjusted EBITDA ratio and free cash flow are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the "Non-GAAP Financial Performance Measures" section in the Company's management's discussion and analysis for the period ended December 31, 2025.
Hudbay's consolidated copper production guidance range was revised in 2020 due to the impact of COVID-19 at the operations. Hudbay's 2020 copper production was within the revised guidance ranges. Prior to 2021, Hudbay provided guidance on a precious metal equivalent instead of gold as a stand-alone metal.
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Operations and Financial SummaryOperations Summary
For the years ended December 31
Financial Summary
OPERATING PERFORMANCE (metal in concentrate and doré)1 | 2025 | 2024 | FINANCIAL PERFORMANCE (in $ millions) | DEC. 31, 2025 | DEC. 31, 2024 | |
Production | Revenue | $ 2,211.0 | $ 2,021.2 | |||
Copper (tonnes) | 118,188 | 137,943 | Earnings before tax | 912.0 | 251.6 | |
Gold (ounces) | 267,934 | 332,340 | Net earnings | 564.3 | 67.8 | |
Silver (ounces) | 3,468,143 | 3,983,851 | Basic earnings per share | 1.44 | 0.20 | |
Zinc (tonnes) | 17,646 | 33,339 | Operating cash flow before change in non-cash working capital | 764.3 | 691.1 | |
Molybdenum (tonnes) | 1,282 | 1,323 | Adjusted EBITDA4 | 1,060.9 | 822.5 | |
Payable metal sold | Free cash flow4 | 380.0 | 350.5 | |||
Copper (tonnes) | 114,534 | 125,094 |
Gold2 (ounces) | 260,261 | 335,342 |
Silver2 (ounces) | 3,190,552 | 3,549,816 |
Zinc (tonnes) | 15,152 | 25,120 |
Molybdenum (tonnes) Consolidated cash cost per pound of copper prod | 1,334 uced3 | 1,287 |
FINANCIAL CONDITION (in $ millions) DEC. 31, 2025 DEC. 31, 2024
Cash and cash equivalents $ 568.9 $ 581.8
Working capital5 (65.6) 511.3
Total assets 6,223.3 5,487.6
Total long-term debt 1,008.6 1,107.5
Cash cost ($/lb) | (0.22) | 0.46 | Equity6 3,231.0 2,553.2 | |
Sustaining cash cost ($/lb) | 1.30 | 1.62 | Net debt to adjusted EBITDA4 0.4 0.6 | |
All-in sustaining cast cost ($/lb) | 1.74 | 1.88 | ||
Metal reported in concentrate and doré are prior to refining losses or deductions associated with smelter contract terms.
Includes total payable gold and silver in concentrate and doré sold and other secondary products.
Cash costs, sustaining cash costs and all-in sustaining cash costs are non-GAAP financial performance measures with no standardized definition under IFRS. For further details on why Hudbay believes cash costs are a useful performance indicator, please refer to the Company's management's discussion and analysis for the period ended December 31, 2025.
Adjusted EBITDA, free cash flow and net debt to adjusted EBITDA are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the "Non-GAAP Financial Performance Measures" section in the Company's management's discussion and analysis for the period ended December 31, 2025.
Working capital is determined as total current assets less total current liabilities as defined under IFRS and disclosed on the consolidated interim financial statements. Working capital as of December 31, 2025 was impacted by an increase in the current portion of long-term debt as the 2026 senior unsecured notes had a maturity date within one year as of the financial reporting date.
Equity attributable to owners of the Company.
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Business ActivitiesPeru
Peru operations produced 85,155 tonnes of copper and 74,480 ounces of gold in 2025 with full-year copper production within the 2025 guidance range, while gold production far exceeded the top end of the annual guidance range.
Strong production output was attributable to the 2025 mine plan optimization, which prioritized Pampacancha mining activities and fully depleted the high-grade satellite deposit in December.
Peru full-year cash cost1 of $1.08 per pound of copper outperformed the low end of the 2025 annual guidance range of $1.35 to $1.65 per pound because of stable operating cost performance and higher byproduct credits.
We intend to advance the installation of pebble crushers in Peru to increase mill throughput rates starting in the second half of 2026, which will allow Constancia to deliver steady annual copper production despite lower grades from the depletion of Pampacancha.
Hudbay's efforts to increase mill throughput align with the Peru Ministry of Energy and Mines' regulatory change to allow mining companies to operate up to 10% above permitted levels.
Manitoba
Manitoba operations produced 173,453 ounces of gold, 9,249 tonnes of copper, 17,646 tonnes of zinc and 800,198 ounces of silver in 2025.
Production was below the low end of the guidance range for gold and zinc, while copper and silver production were within the guidance range in 2025.
Manitoba full-year cash cost1 of $549 per ounce of gold outperformed the low end of the 2025 annual guidance range of $650 to $850 per ounce as a result of productivity gains and lower treatment and refining charges.
We continued to advance our large Snow Lake exploration program to further increase near-term production and mineral reserves, test regional satellite deposits for additional mill feed to utilize available capacity at Stall and explore the large land package for a new anchor deposit to meaningfully extend mine life.
The 1901 deposit delivered 6,600 tonnes of development ore in 2025 as the project progresses towards full production in 2027. During the year, haulage and exploration drifts were prioritized as infrastructure was being installed.
We advanced engineering work on the Flin Flon tailings reprocessing opportunity to assess the economic viability of producing critical minerals and precious metals and the potential to reduce the overall environmental footprint.
Despite the wildfire challenges in 2025,
New Britannia achieved its second-highest annual throughput of 624,631 tonnes as Lalor delivered production from the gold zones, ensuring a consistent feed to the mill.
British Columbia
British Columbia operations produced
23,784 tonnes of copper, 20,001 ounces of gold and 252,811 ounces of silver in 2025. Copper production was below the low end of the production guidance range, while the operations achieved full-year 2025 production guidance for gold and silver.
Full-year cash cost1 of $3.06 per pound of copper achieved the 2025 annual cost guidance range of $2.45 to $3.45 per pound.
Throughout 2025, Hudbay continued to focus on its multi-year optimization plan at Copper Mountain, centred on ramping up mining activities and implementing standardized operating practices.
We enable world-class production and are leaders in operational excellence.
Adjusted EBITDA, free cash flow, cash cost and sustaining cash cost per pound of copper produced, net of byproduct credits, and net debt are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the "Non-GAAP Financial Performance Measures" section in the Company's management's discussion and analysis for the period ended December 31, 2025.
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Arizona and Nevada
In Arizona, we closed the accretive $600 million joint venture transaction with Mitsubishi Corporation in January 2026, securing a premier, long-term 30% strategic partner for the development of Copper World. A definitive feasibility study is on track for completion in
mid-2026, with a sanctioning decision expected in 2026.
Mitsubishi's initial investment and its future pro-rata equity capital contributions, together
with the Wheaton Precious Metals Corp. stream,1 provide significant financial flexibility by reducing Hudbay's estimated share of the remaining capital contributions to approximately $200 million based on pre-feasibility study estimates and deferring Hudbay's first capital contribution to 2028 at the earliest.
We advanced plans to initiate a pre-feasibility study for the Mason copper project in Nevada.
Corporate
Hudbay has delivered several quarters of meaningful free cash flow generation as a result of steady operating performance, expanding margins from strong copper and gold exposure and a focus on cost control across the business. This has resulted in Hudbay achieving record annual adjusted EBITDA2 of $1,060.9 million and record annual free cash flow2 of $380.0 million in 2025.
As of December 31, 2025, Hudbay had approximately $569 million in cash and cash equivalents, resulting in a reduction in net debt2 to $439.7 million compared to $525.7 million
at December 31, 2024.
Hudbay continued its prudent balance sheet management and further reduced overall debt levels, making a total of $102.5 million in debt repayments during 2025. These deleveraging efforts have reduced total principal debt to
$1,008.6 million as of December 31, 2025.
As of December 31, 2025, Hudbay had approximately $569 million in cash and cash equivalents, resulting in a reduction in net debt2 to $439.7 million compared to $525.7 million
at December 31, 2024.
We operate responsibly through each stage of the mining cycle.
For further information regarding the terms agreed to with Wheaton Precious Metals Corp. to enhance and amend the existing precious metals streaming agreement, please see Hudbay's August 13, 2025 news release.
Adjusted EBITDA, free cash flow, cash cost and sustaining cash cost per pound of copper produced, net of byproduct credits, and net debt are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the "Non-GAAP Financial Performance Measures" section in the Company's management's discussion and analysis for the period ended December 31, 2025.
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Financials
2025 was a milestone year for Hudbay's financial achievements. The Company delivered record annual revenue of $2.2 billion and surpassed $1 billion in adjusted EBITDA1. At the same time, we reached a market capitalization of $10 billion and, through prudent financial management, continued to strengthen our balance sheet.
Adjusted EBITDA1 of $1,060.9 million in 2025 was a 29% increase from $822.5 million in 2024, setting a new annual record. The increase was driven by higher realized metal prices and stable operating performance, resulting in strong cost control across the business.
Our focus on performance and operational efficiency enabled us to report that, for the 11th consecutive year, Hudbay achieved its annual consolidated copper guidance and, for
the fifth consecutive year, its annual consolidated gold guidance.
Consolidated 2025 cash cost1 and sustaining cash cost1 was $(0.22) and $1.30, respectively, per pound of copper, net of byproduct credits. Hudbay significantly outperformed its twice-improved 2025 consolidated cash cost guidance, driven by higher metal prices and a significant increase in gold byproduct credits, partially offset by higher general and administrative costs due to higher employee profit sharing in Peru and Manitoba.
Operating cash flow before change in
non-cash working capital increased to a record
$764.3 million in 2025 from $691.1 million in 2024. The increase in operating cash flow before changes in working capital was primarily driven by higher gross margins, reflecting higher metal prices, and stable cost performance despite temporary operational interruptions during the year. This was partially offset by a significant increase in cash taxes paid of $268.4 million, compared to $132.5 million in 2024, reflecting earlier periods of high taxable income mainly
at the Peru and Manitoba operations.
We maintained our focus on strengthening our balance sheet and increasing our financial flexibility. Our net debt1 decreased by $86.0 million to
We are a low-cost operator that maintains a strong balance sheet
and a disciplined approach to capital allocation.
To learn more, please see our
Consolidated Financia l Statements and
Management's Discussion an d Analysis .
$439.7 million as at December 31, 2025, compared to $525.7 million at December 31, 2024. Our ongoing net debt1 reduction efforts further improved our net debt to adjusted EBITDA1 ratio to 0.4 at the end of 2025 compared to 0.6 at the end of 2024.
1 Adjusted EBITDA, free cash flow, cash cost and sustaining cash cost per pound of copper produced, net of byproduct credits, net debt and net debt to adjusted EBITDA are non-GAAP financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the "Non-GAAP Financial Performance Measures" section in the Company's management's discussion and analysis for the period ended December 31, 2025.
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Business Objectives for 2026
Hudbay's key objectives for 2026 are focused on continued operational excellence, advancement of organic growth opportunities, and prudent capital allocation to deliver attractive high-return growth:
Demonstrate continued operational excellence to generate substantial free cash flow through consistent copper and gold production, industry-leading cost performance and high-return brownfield reinvestment opportunities.
Increase mill throughput at Constancia to approximately 90,000 tonnes per day in the second half of 2026 through the installation of two pebble crushers.
Continue mill throughput improvements at New Britannia and recovery enhancements at the Stall mill.
Advance the 1901 deposit towards full production by the end of 2027.
Our operations have a solid track record of
resilience and meeting guidance targets despite challenges.
Ramp up mill throughput at Copper Mountain to its permitted capacity of 50,000 tonnes per day in the second half of 2026.
Advance attractive organic growth opportunities to deliver significant increase in long-term production.
Complete the definitive feasibility study at Copper World in mid-2026 with final sanctioning decision expected in 2026.
Progress New Ingerbelle permitting and development activities to add production and mine life extension at Copper Mountain.
Advance economic evaluations of regional satellite properties in Snow Lake, including the Talbot copper-gold-zinc deposit and the New Britannia gold deposit, to further optimize the mine plan and extend mine life.
Execute extensive Snow Lake exploration program to look for new anchor deposits to meaningfully extend mine life.
Initiate pre-feasibility study activities at Mason to de-risk project development.
Advance Flin Flon tailings reprocessing opportunities through pre-feasibility analysis.
Prepare for exploration activities at Maria Reyna and Caballito to identify high-grade satellite deposits within trucking distance of Constancia's milling infrastructure and provide significant long-term upside potential in Peru.
Implement the Capital Allocation Framework to maintain strong financial discipline and maximize returns.
Continue to reduce total debt outstanding and maintain significant financial flexibility throughout Copper World project build.
Source the most efficient project-level financing for Copper World as part of the Company's prudent financial plan for developing the project.
Evaluate all types of capital redeployment opportunities, including reinvestments and shareholder returns to generate the highest risk-adjusted returns.
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Sustainability ApproachOur commitment to care for people, communities and the planet has created a strong foundation for our continued progress. We are guided by our values and responsible practices, which are underpinned by the policies, procedures and numerous voluntary codes
to which we adhere. These tools enable us to build a future rooted in environmental stewardship, ethical operations and meaningful community partnerships.
IN THIS SECTION
Sustainability Governance 34
Materiality 38
Stakeholder Engagement 41
United Nations Sustainable Development Goals 44
Human Rights and Security 45
Tailings Stewardship 47
Responsible Supply Chain 49
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Sustainability Governance
Effective sustainability governance is the foundation for driving meaningful progress on sustainability goals and aligning with stakeholder priorities. We ensure our core strategies and operations support our Sustainability Management Framework through clearly defined leadership roles, established accountability mechanisms and an ongoing commitment to building a culture of transparency and responsibility.
The Board's five committees - particularly the Environmental, Health, Safety and Sustainability (EHSS) Committee - oversee Hudbay's sustainability activities. Meeting quarterly, the EHSS Committee reviews our human rights, social, environmental, health and safety policies, systems and programs. It assesses key EHSS risks and monitors the effectiveness of our management systems through certification processes and Towards Sustainable Mining (TSM) performance assessments.
The President and CEO is responsible for
the day-to-day business operations, while the Chief Operating Officer (COO) establishes the Company's sustainability governance. Business unit and operations leaders are accountable for achieving and maintaining sustainable projects and operations and are supported by dedicated personnel who manage routine health, safety, environmental, human rights, community relations, social programming and other sustainability-related matters.
In 2025, senior management created an ESG Steering Committee to provide deeper oversight and planning for all sustainability matters. The Committee consists of the COO, Chief Financial Officer and three senior vice presidents.
We ensure sustainable practices that align with our long-term commitment to responsible growth.
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Hudbay's Sustainability Management Framework forms the foundation for operating in an environmentally and socially responsible manner.
Our comprehensive management systems - which include key policies such as our Code of Business Conduct, Human Rights Policy, Environmental, Health, Safety and Sustainability Policy, Supplier Code of Conduct and Ethics and Customer Code of Conduct and Ethics - articulate our sustainability commitments throughout the business and value chain.
Each operation maintains a formal management system supporting sustainability performance, with health and safety and environmental components certified to ISO 45001 and 14001 standards, respectively. In 2025, our Manitoba and Peru business units maintained their ISO certifications; Copper Mountain is scheduled to complete its ISO certification in 2026.
In collaboration with the corporate office, the sustainability team holds monthly calls with safety leads at each business unit, and quarterly calls focused on environmental and community topics, led by the respective subject matter experts.
These processes enhance the reporting structure from business units to the corporate office and the Board committee, while fostering collaboration and best practice sharing
among leads across the organization.
Our Management System contains company-wide policies and procedures. Annual updates are initiated to review and reissue any document that is five years old, or to schedule a review of specific topics when a new need or opportunity is identified. In 2025, our Travel Safety Procedure was revised, and a new Progressive Reclamation Standard was implemented. The related Information System integrates information to manage incidents, corrective actions, injuries and stakeholder engagement activities, thereby improving data security and the audit trail.
SUSTAINABILIT Y MANAGEMENT FR AMEWORK
SVP, EXPLORATION AND TECHNICAL
SERVICES
SVP, LEGAL AND ORGANIZATIONAL EFFECTIVENESS
SVP, CAPITAL MARKETS AND CORPORATE
AFFAIRS
CEO
CFO
COO
BOARD OF DIRECTORS
VPs
OPERATIONS AND PROJECTS
CORPORATE
SUSTAINABILITY TEAM
DIRECTOR,
INTERNAL AUDIT
Systems, support, and
internal assurance for Code of Business Conduct
AUDIT COMMITTEE
EHSS
COMMITTEE
ESG
STEERING COMMITTEE
Allocation of resources and oversight to ensure responsible operations
Systems, support,
and internal assurance for environment, health and safety, and social performance
Systems, support,
and internal assurance for financial and regulatory compliance
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Towards Sustainable Mining
As a voluntary Mining Association of Canada (MAC) member, we participate in MAC's TSM program. This program empowers mining companies to fulfill society's demand for minerals, metals and energy products in a socially, economically and environmentally responsible manner through site-level performance assessments. TSM is recognized as an industry-leading practice and has been adopted by national mining associations around the world. Our participation in TSM supports Hudbay's accountability and transparency through site-level evaluations and public reporting across the following protocols:
Community and People
Indigenous and Community Relationships
Safety and Health
Crisis Management and Communications Planning
Prevention of Child and Forced Labour
Environment and Climate Change
Climate Change
Biodiversity Conservation Management
Water Stewardship
Tailings Management
New
Safe, Healthy and Respectful Workplaces
Equitable, Diverse and Inclusive Workplaces
In 2025, we achieved an A rating or higher across the following indicators:
Safety and Health Protocol - All business units achieved AA or higher.
Indigenous and Community Relationships Protocol - Constancia achieved AAA ratings across all indicators, Copper Mountain achieved two AAA ratings and three AA ratings, and Manitoba achieved three AA ratings and two
A ratings.
Tailings Management Protocol - Constancia and Copper Mountain achieved AA ratings across five indicators, and Manitoba received five A ratings across all indicators.
Biodiversity Conservation Management Protocol - All business units achieved a AAA rating across all indicators, with the exception of one AA rating for Copper Mountain mine for biodiversity reporting.
Water Stewardship Protocol - Each business unit achieved at least one AAA rating, with Constancia achieving four AAA ratings; Manitoba achieving two AAA ratings, one AA and one A; and Copper Mountain achieving one AAA and three AA ratings.
Climate Change Protocol - All business units achieved a level A or higher.
We publicly report these assessments on the
MAC website.
MAC's TSM Responsible Sourcing Alignment Supplement maps the TSM protocols to emerging performance frameworks, such as the International Council on Mining and Metals (ICMM) Mining Principles, the World Gold Council's (WGC) Responsible Gold Mining Principles and the Responsible Minerals Initiative (RMI) Risk Readiness Assessment, which includes the International Copper Alliance and the Copper Mark.
The process of developing a consolidated mining standard with a multi-stakeholder oversight system began in 2023 with the Copper Mark, ICMM, MAC and WGC. Hudbay is contributing to this effort through an industry advisory group, where we advise, along with others, on the standard's content, verification process and claims process. There is also a stakeholder advisory group that has met several times throughout the process. With the conclusion of public consultations, the partners are working through the comments, which will then be shared with the advisory groups for their input. The final standard will be issued via the evolving Copper Mark construct.
Under the TSM framework, third-party verification is required every three years, while annual
self-assessments are conducted in between. In 2025, third-party verification was conducted for Manitoba and Peru, and an internal assessment was completed for Copper Mountain.
International Systems and Performance Standards
We use the following international best practice standards to guide our sustainability efforts and drive continuous improvement:
ISO 14001 - environmental management systems standard
ISO 45001 - occupational health and safety management systems standard
Towards Sustainable Mining - The Mining Association of Canada's set of tools and indicators to drive performance and ensure key mining risks are managed responsibly.
Voluntary Principles on Security and Human Rights - An operating framework that ensures security practices include respect for human rights.
IFC Performance Standards - The International Finance Corporation (IFC), part of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries. Hudbay
follows the IFC's Performance Standards on Environmental and Social Sustainability at our Constancia site in Peru.
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Disclosing our sustainability performance in the most transparent way possible is a responsible business practice and vital for building and preserving stakeholder trust. Hudbay voluntarily participates in the following international reporting standards, disclosure frameworks
and programs:
Global Reporting Initiative (GRI) - An independent, international organization that provides the world's most widely used standards for sustainability reporting, known as the GRI Standards.
Sustainability Accounting Standards Board (SASB) - An independent non-profit organization that aims to improve industry-specific standards for the disclosure of financially material sustainability information.
Canadian Sustainability Standards Board (CSSB) - A Canadian organization that supports alignment with the recently developed International Sustainability Standards Board (ISSB) reporting standards, including IFRS S1 and S2 - known in Canada as CSDS 1 and 2. While CSDS 1 is under consideration, this year's reporting has been informed by the CSDS 2 standard, which specifically relates to climate-related disclosures.
The disclosures in this report have been mapped to the GRI Standards, the SASB Metals & Mining Standard and CSDS 2.
Industry Involvement
Hudbay is an active participant in the jurisdictions where we operate, engaging with industry associations and multi-stakeholder groups through membership, financial support, knowledge sharing, and involvement in committees and working groups. Our memberships include:
Alianza para Obras por Impuestos - ALOXI (Alliance for Works for Taxes)
American Exploration and Mining Association
AMIGOS - Arizona Mining & Industry Get Our Support
Arizona Chamber of Commerce & Industry
Arizona Mining Association
Arizona Regional Economic Development Foundation
Arizona Small Business Association
Arizona Trails Association
Arizona Transportation Builders Association
Several Arizona Chambers of Commerce -Greater Vail Area, Green Valley/Sahuarita, Tucson Hispanic, Tucson Metro
Asociación Vida Perú (a non-profit organization that donates medical equipment and medicines)
BlackNorth Initiative
Cámara de Comercio Perú Canadá (Peru-Canada Chamber of Commerce)
Canadian Council for Indigenous Business
Canadian Institute of Mining, Metallurgy and Petroleum and relevant societies
Coalition for Energy Efficient Comminution (CEEC) (an international, not-for-profit, registered charity committed to sharing energy-efficient mining and mineral processing solutions)
Cusco Chamber of Commerce
Empresarios por la Educación (a Peruvian private sector organization to develop and promote educational projects)
Extractive Industries Transparency Initiative (EITI)
Flin Flon and District Chamber of Commerce
Indigenous Chamber of Commerce (Manitoba)
Instituto de Ingenieros de Minas del Perú (Peruvian mining engineers association)
International Zinc Association
Manitoba Employers Council
Metropolitan Pima Alliance
Mining Association of British Columbia
Mining Association of Canada
Mining Association of Manitoba Inc.
Mining Foundation of the Southwest (US)
Mining Safety Round Table (a collaborative group of safety-committed mining companies that share experiences and identify best practices)
National Mining Association (US)
National Society of Mining, Oil and Energy (SNMPE) (Peru)
Nevada Mining Association
Nogales-Santa Cruz Chamber of Commerce
Princeton and District Chamber of Commerce
Public Relations Society of America Southern Arizona Chapter
Saskatchewan Mining Association
Snow Lake Chamber of Commerce
Sociedad de Comercio Exterior del Perú -COMEX (Peruvian business association made up of the largest export and import companies)
Sociedad Geológica del Perú - SGP (Peruvian geological association)
Southeast Arizona Economic Development Group
Southeastern Arizona Contractors Association
Southern Arizona Business Coalition
Southern Arizona Leadership Council
Voluntary Principles Lima Working Group
Women in Mining Peru - WiM PERU
Women's Mining Coalition
Yerington Chamber of Commerce
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MaterialityOur material sustainability issues are those with the greatest potential risks and opportunities for the Company, and where Hudbay may have the greatest potential impacts on the economy, the environment, and people and human rights.
As part of our commitment to ensuring our priorities align with changes in our business and address emerging issues, we assess both the financial materiality of sustainability topics to the Company, and the impact of the Company's activities on the environment and society. This comprehensive approach underscores the importance of a dual perspective, encouraging stakeholders to assess both the impact of sustainability factors on the Company's financial
performance and the influence on the Company's operations in the broader world.
Our material topics were revised in 2024. We engaged external consultants to conduct a peer review and standards review. Based on this review, we developed a set of questions that were sent to an expanded pool of participants, including the Board and external stakeholders such as insurers, analysts, customers and investors. Notably, we compared the questionnaire results with those of our ERM framework, including a comparison of the topics against our financial material threshold.
The exercise confirmed our five focus areas and affirmed the most material topics of tailings and waste management, water management, community relations, Indigenous relations, and health and safety. Management systems and associated routines support these focus areas.
The alignment between risk management frameworks and materiality assessments is emphasized by both SASB and IFRS S1, a framework developed by the ISSB. Higher business risk issues typically involve external elements that can pose challenges to manage directly, such as community perceptions, fluctuations in metal prices, or individual behaviours. Conversely, lower business risks have less impact on our business or can be mitigated directly through our systems and processes. The corresponding sections of this report discuss our due diligence and mitigation for these risks. Please see our Glossary for material topic definitions.
Methodology
Our assessment was conducted internally and supported by a third-party consulting firm:
Identified key material topics after doing peer, standards and rating agency reviews (SASB, GRI)
Topics were ranked by financial impact on the business and potential external impact on communities and the environment
Involved external stakeholders for the first time through a questionnaire
Allowed direct feedback via a questionnaire with open-ended questions
Feedback alignment with ERM framework
Validation session with ESG Steering Committee
The results of the materiality assessment were incorporated into the Company's strategy in 2025.
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Environment
Air emissions
Climate change mitigation and resilience Energy and GHG management Integrated mine closure
Land and biodiversity
Tailings and waste management Water management
Labour
Diversity, equity and inclusion Health and safety
Labour relations
Workforce training and development
Summary of Our Material Topics and Priority Issues
Governance
Business ethics and transparency Data privacy and cybersecurity
Government relations and public policy
Economic
Economic impact Responsible procurement
Society
Community relations Human rights Indigenous relations Local market presence Security practices
Highly material topics
Material topics Relevant topics Financially material
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The following table shows the alignment of our priority issues with the GRI 14 Sector Standard for Mining, the SASB Metals & Mining Standard and CSDS 2. Specific reporting indicators are disclosed in our reporting framework index.
PRIORITY ISSUE GRI STANDARDS SASB CSDS 2
Boundaries
Following our materiality review, we considered how to report on our material topics and where exceptions lie within the boundaries of our
Business ethics and transparency
Government relations and public policy
Governance Anti-corruption
Strategy, policies and practices
Business ethics and transparency
reporting. Based on stakeholder expectations and business risk, the following requirements were deemed appropriate:
Safety statistics are tracked and reported for
Community relations Stakeholder engagement
Security practices
Human rights assessment Local communities
Community relations
all contractor activities under Hudbay contracts and Hudbay supervision (e.g., activities of contractors working on Hudbay sites, activities of exploration contractors).
Environmental incidents related to transportation
Indigenous relations Rights of Indigenous Peoples Security, human rights and rights of
Indigenous Peoples
Health and safety Occupational health and safety Workforce health and safety
Labour relations Labour/management relations Labour relations
between Hudbay locations are generally tracked, reviewed and reported by Hudbay.
Grievances are accepted and investigated with respect to local contractors and security
activities related to Hudbay and are included in
Workforce training and development
Employment Labour practices
the grievance numbers and characterization in this report.
Economic impact Economic performance Indirect economic impacts Procurement practices
Water management Water Water management
Location- and market-based Scope 2
GHG emissions are calculated and reported.
Exploration sites have special considerations in our reporting:
Tailings and waste management
Effluents and waste Waste and hazardous materials management
Sites for which we do not maintain managerial control are excluded.
Climate change mitigation and resilience
Economic performance Energy
Emissions
Greenhouse gas emissions Energy management
Governance Metrics and targets
Corporate exploration with managerial control over the site is included and reported by country, although we do not collect or report energy, GHG emissions or local market presence data.
Business unit exploration with managerial control over the site is included and embedded in the business unit numbers.