By Robb M. Stewart

Hudbay Minerals expects copper and gold production toward the lower end of its 2025 target following disruptions at its Canadian and Peruvian operations in the latest quarter.

The Canadian miner logged a drop in revenue for the third quarter, though earnings were buoyed by the reversal of an impairment related to its Arizona copper project.

The copper producer's earnings attributable to owners rose to $224.4 million, or 56 cents a share, in the third quarter from $117.7 million, or 13 cents, a year earlier.

The rise reflected a pretax impairment reversal of $322.3 million on the carrying value of its Copper World project following an investment from Mitsubishi.

Adjusted for non-cash items, per-share earnings fell to 3 cents. That was below the 7-cent mean estimate of analysts polled by FactSet.

Revenue for the three months declined 29% to $346.8 million, missing the $463.2 million forecast by analysts.

Financial results for the quarter were affected by the deferral of a 20,000 dry metric ton copper concentrate shipment in Peru, valued at about $60 million, from the end of September into early October due to ocean swells at the port.

Hudbay, which operates mines in Peru and Canada, produced 24,205 metric tons of copper in the latest quarter, down from 29,956 tons the quarter before and 31,354 in the same period last year. Gold output was down 40% from last year at 53,581 troy ounces, while silver production declined 26% on-year to 730,394 ounces.

The Peru operations were temporarily shuttered for nine days during the quarter after local protests and blockades disrupted the transportation of supplies and concentrate. That followed an escalation in protests in Lima and around the country and instances of rioting.

The company's Snow Lake operations also were disrupted by mandatory evacuation orders during much of the third quarter due to risks from wildfires in Manitoba.

The miner said it now expects to achieve the low end of its consolidated copper and gold production guidance, though cost guidance for 2025 has improved. The company has set a target in 2025 of 117,000 to 149,000 tons of copper and 247,500 to 308,000 ounces of gold.

Cash costs are expected to be between 15 cents and 35 cents a pound, where it had previously anticipated 65 cents to 85 cents a pound. The company said it expects a sustaining cash cost range for the year of $1.85 to $2.25 a pound of copper, compared with earlier guidance for $2.25 to $2.65 a pound, thanks to cost control and increased exposure to gold by-product credits.

Hudbay, which in August lined up a $600 million investment from Mitsubishi for a 30% interest in its Copper World project in Arizona that is projected to produce 85,000 tons of copper a year, said it is advancing toward a decision to sanction the project next year. Feasibility studies are under way and the company said it is accelerating detailed engineering and is lining up certain long-lead items.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

November 12, 2025 06:43 ET (11:43 GMT)

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