Hudbay Minerals (HBM) Q4 2024 earnings summary

Executive summary

• Achieved record annual revenue of $2,021.2 million and record free cash flow of $357 million in 2024, driven by operational excellence, disciplined capital allocation, and strong cost control.

• Net debt reduced by $512 million, reaching a net debt/adjusted EBITDA ratio of 0.6x, the lowest among peers, and transforming the balance sheet.

• Met or exceeded 2024 production and cost guidance for all metals, with record gold production and industry-leading cost performance.

• All major permits for the Copper World project in Arizona received, advancing to feasibility and joint venture processes.

• Advanced key growth projects, including exploration in Snow Lake and Peru, and strategic investment in Arizona Sonoran.

Financial highlights

• Fourth quarter 2024 adjusted EBITDA was $257.3 million, up 25% sequentially; full-year adjusted EBITDA reached $823 million, up from $648 million in 2023.

• Full-year free cash flow was $357 million; cash and cash equivalents at year-end were $582 million, with total liquidity of $1,008 million.

• Adjusted net earnings per share in Q4 were $0.18, a 40% increase from Q3; full-year adjusted EPS was $0.48, up from $0.23 in 2023.

• Q4 consolidated copper production was 43,000 tonnes (up 38% sequentially); gold production was 94,000 ounces (up 6%).

• Net debt reduced to $526 million from $1,038 million at the end of 2023.

Outlook and guidance

• 2025 copper production guidance midpoint is 133,000 tonnes, stable year-over-year; gold production guidance midpoint is 277,750 ounces, reflecting strong Manitoba output but lower Peru grades.

• 2025 copper cash costs expected at $0.80–$1.00/lb; sustaining cash costs at $2.25–$2.65/lb.

• 2025 capital expenditures expected at $580 million, with $365 million sustaining and $205 million growth capital.

• Exploration spending in 2025 guided at $40 million, focused on Snow Lake and Peru.

• Focus on maintaining strong cost control, high margins, and advancing key projects including Copper World and mill optimizations.