Hudbay Announces Completion of Consulta Previa at Pampacancha

Hudbay Minerals Inc. ("Hudbay" or the "company") ( TSX, NYSE: HBM) today announced that in accordance with Peru's Consulta Previa law, additional consultation between the Peruvian government and the local community of Chilloroya has been completed with the community's support. Upon completion of the Consulta Previa process, the Peruvian regulators granted Hudbay the final mining permit for the development and operation of the Pampacancha deposit. The company is working toward completion of the remaining individual land-user agreements to allow for full site access for development at Pampacancha.

In January 2021, the company commenced limited pre-development activities including haul road construction and site preparation work. Pre-stripping activities are expected to commence once all of the individual land-user agreements have been completed. The company will provide updated 2021 production and cost guidance with its fourth quarter and full year 2020 results in February.

"We are pleased that the government and the community were able to complete the Consulta Previa process despite challenges caused by the pandemic," said Peter Kukielski, Hudbay's President and Chief Executive Officer. "This milestone demonstrates the strong relationships with our local communities, and we are grateful for their support as we pursue the development of Pampacancha for the benefit of all of our stakeholders."

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, plans to commence the development of Pampacancha. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by the company at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information.

The material factors or assumptions that Hudbay identified and were applied by the company in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to, the expected timing of development and production activities on the Pampacancha deposit, the expected timing for reaching remaining agreements with individual land-user community members and no significant unanticipated delays to the development of Pampacancha.

The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), risks associated with the political situation in Peru, risks associated with reaching additional agreements with individual land-user community members, risks associated with the rainy season in Peru as well as the risks discussed under the heading "Risk Factors" in Hudbay's most recent Annual Information Form.

Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, you should not place undue reliance on forward-looking information. Hudbay does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.

About Hudbay

Hudbay (TSX, NYSE: HBM) is a diversified mining company primarily producing copper concentrate (containing copper, gold and silver) and zinc metal. Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and copper projects in Arizona and Nevada (United States). The company's growth strategy is focused on the exploration, development, operation and optimization of properties it already controls, as well as other mineral assets it may acquire that fit its strategic criteria. Hudbay's vision is to be a responsible, top-tier operator of long-life, low-cost mines in the Americas. Hudbay's mission is to create sustainable value through the acquisition, development and operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining, and to see the regions and communities in which the company operates benefit from its presence. 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. Further information about Hudbay can be found on www.hudbay.com .

For further information, please contact:

Candace Brûlé
Director, Investor Relations
(416) 814-4387
candace.brule@hudbay.com

News Provided by GlobeNewswire via QuoteMedia

Hudbay Minerals HBM:CA HBM Copper Investing

	2024 - Q1			2023 - Q4		2023 - Q1
Operating Information

Copper (Caraíba Operations)
Ore Processed (tonnes)		853,371			812,202		772,548
Grade (% Cu)		1.08			1.59		1.33
Cu Production (tonnes)		8,091			11,760		9,327
Cu Production (000 lbs)		17,838			25,926		20,564
Cu Sold in Concentrate (tonnes)		9,461			11,429		9,464
Cu Sold in Concentrate (000 lbs)		20,859			25,197		20,865
Cu C1 cash cost ⁽¹⁾⁽²⁾	$	2.30		$	1.75	$	1.89

Gold (Xavantina Operations)
Ore Processed (tonnes)		37,834			34,416		35,763
Grade (g / tonne)		16.38			17.18		11.85
Au Production (oz)		18,234			16,867		12,443
Au C1 cash cost ⁽¹⁾	$	395		$	413	$	436
Au AISC ⁽¹⁾	$	797		$	991	$	946

Financial Highlights ($ in millions, except per share amounts)
Revenues	$	105.8		$	116.4	$	101.0
Gross profit		31.2			41.9		40.1
EBITDA ⁽¹⁾		17.8			73.7		48.1
Adjusted EBITDA ⁽¹⁾		43.3			50.3		44.5
Cash flow from operations		17.2			49.4		16.4
Net (loss) income		(6.8	)		37.1		24.5
Net (loss) income attributable to owners of the Company		(7.1	)		36.5		24.2
Per share (basic)		(0.07	)		0.37		0.26
Per share (diluted)		(0.07	)		0.37		0.26
Adjusted net income attributable to owners of the Company ⁽¹⁾		16.8			20.7		22.5
Per share (basic)		0.16			0.21		0.24
Per share (diluted)		0.16			0.21		0.24

Cash, cash equivalents, and short-term investments		51.7			111.7		236.6
Working (deficit) capital ⁽¹⁾		(28.6	)		25.7		218.8
Net debt ⁽¹⁾		415.1			314.5		174.2

	Previous Guidance	Updated Guidance
Consolidated Copper Production (tonnes)
Caraíba Operations	42,000 - 47,000	Unchanged
Tucumã Operations	17,000 - 25,000	Unchanged
Total	59,000 - 72,000	Unchanged

Consolidated Copper C1 Cash Costs ⁽¹⁾ Guidance
Caraíba Operations	$1.80 - $2.00	Unchanged
Tucumã Operations	$0.90 - $1.10	Unchanged
Total	$1.50 - $1.75	Unchanged

The Xavantina Operations
Au Production (ounces)	55,000 - 60,000	60,000 - 65,000
Gold C1 Cash Cost ⁽¹⁾ Guidance	$550 - $650	Low End of Range
Gold AISC ⁽¹⁾ Guidance	$1,050 - $1,150	Low End of Range

Caraíba Operations
Growth		$80 - $90
Sustaining		$100 - $110
Total, Caraíba Operations		$180 - $200

Tucumã Project
Growth		$65 - $75
Capitalized Ramp-Up Costs		$4 - $6
Sustaining		$2 - $5
Total, Tucumã Project		$71 - $86

Xavantina Operations
Growth		$3 - $5
Sustaining		$15 - $18
Total, Xavantina Operations		$18 - $23

Consolidated Exploration Programs		$30 - $40

Company Total
Growth		$148 - $170
Capitalized Ramp-Up Costs		$4 - $6
Sustaining		$117 - $133
Exploration		$30 - $40
Total, Company		$299 - $349

Date:	Wednesday, May 8, 2024
Time:	11:30 am Eastern time (8:30 am Pacific time)
Dial in:	Canada/USA: 1-844-763-8274, International: +1-647-484-8814 please dial in 5-10 minutes prior and ask to join the call
Pre-Register:	Registration link (https://dpregister.com/DiamondPassRegistration/register?confirmationNumber=10023373&linkSecurityString=f82a87e37a) (pre-register to bypass the live operator queue)
Replay:	Canada/USA: 1-855-669-9658, International: +1-604-674-8052
Replay Passcode:	0848

Reconciliation:	2024 - Q1			2023 - Q4			2023 - Q1
Cost of production	$	42,227		$	39,790		$	36,285
Add (less):
Transportation costs & other		1,252			1,853			1,339
Treatment, refining, and other		5,170			7,332			6,463
By-product credits		(2,440	)		(3,394	)		(2,810	)
Incentive payments		(1,199	)		(1,693	)		(1,237	)
Net change in inventory		(3,893	)		1,434			(1,185	)
Foreign exchange translation and other		(7	)		20			15
C1 cash costs		41,110			45,342			38,870
(Gain) loss on foreign exchange hedges		(276	)		(4,185	)		(932	)
C1 cash costs including foreign exchange hedges	$	40,834		$	41,157		$	37,938

Mining	$	25,256		$	26,646		$	23,210
Processing		7,177			8,177			6,554
Indirect		5,947			6,581			5,453
Production costs		38,380			41,404			35,217
By-product credits		(2,440	)		(3,394	)		(2,810	)
Treatment, refining and other		5,170			7,332			6,463
C1 cash costs		41,110			45,342			38,870
(Gain) loss on foreign exchange hedges		(276	)		(4,185	)		(932	)
C1 cash costs including foreign exchange hedges	$	40,834		$	41,157		$	37,938

Costs per pound
Payable copper produced (lb, 000)		17,838			25,926			20,564

Mining	$	1.42		$	1.03		$	1.13
Processing	$	0.40		$	0.32		$	0.32
Indirect	$	0.33		$	0.25		$	0.27
By-product credits	$	(0.14	)	$	(0.13	)	$	(0.14	)
Treatment, refining and other	$	0.29		$	0.28		$	0.31
Copper C1 cash costs	$	2.30		$	1.75		$	1.89
(Gain) loss on foreign exchange hedges	$	(0.02	)	$	(0.16	)	$	(0.05	)
Copper C1 cash costs including foreign exchange hedges	$	2.28		$	1.59		$	1.84

Costs
Mining	$	3,820		$	3,430		$	2,567
Processing		2,259			2,315			1,905
Indirect		1,229			1,352			1,052
Production costs		7,308			7,097			5,524
Smelting and refining costs		90			113			76
By-product credits		(189	)		(248	)		(176	)
C1 cash costs	$	7,209		$	6,962		$	5,424
Site general and administrative		1,353			1,492			1,232
Accretion of mine closure and rehabilitation provision		92			111			105
Sustaining capital expenditure		3,254			5,499			3,013
Sustaining leases		2,122			1,861			1,660
Royalties and production taxes		510			785			338
AISC	$	14,540		$	16,710		$	11,772

Costs per ounce
Payable gold produced (ounces)		18,234			16,867			12,443

Mining	$	209		$	203		$	206
Processing	$	124		$	137		$	153
Indirect	$	67		$	80		$	85
Smelting and refining	$	5		$	7		$	6
By-product credits	$	(10	)	$	(14	)	$	(14	)
Gold C1 cash cost	$	395		$	413		$	436
Gold AISC	$	797		$	991		$	946

	March 31, 2024			December 31, 2023			March 31, 2023
Current portion of loans and borrowings	$	16,059		$	20,381		$	9,221
Long-term portion of loans and borrowings		450,743			405,852			401,595
Less:
Cash and cash equivalents		(51,692	)		(111,738	)		(209,908	)
Short-term investments		—			—			(26,739	)
Net debt (cash)	$	415,110		$	314,495		$	174,169

	Three months ended March 31,
US$ Millions (except per share amounts)	2024	2023
Revenue	937.0	751.3
Gross profit	185.4	213.3
Attributable net earnings ^a	13.9	146.6
Net earnings	58.6	165.3
Adjusted earnings ^a,b	45.2	125.7
Adjusted EBITDA ^b	362.9	336.9
Basic and diluted earnings per share ("EPS") ^a	0.02	0.19
Adjusted EPS ^a,b	0.06	0.16
Cash provided by operating activities	267.5	211.9
Adjusted operating cash flow ^b	313.7	235.1
Adjusted operating cash flow per share ^b	0.41	0.30
Free cash flow from operations ^b	67.7	71.1
Free cash flow ^b	(1.7)	(34.2)
Cash and cash equivalents	365.5	184.2
Net debt excluding lease liabilities ^b	981.4	9.1
Net debt ^b	1,241.9	34.6

^a Attributable to shareholders of Lundin Mining Corporation.
^b These are non-GAAP measures. Please refer to the Company's discussion of non-GAAP and other performance measures in its Management's Discussion and Analysis for the three months ended March 31, 2024 and the Reconciliation of Non-GAAP Measures section at the end of this news release.

(Contained metal) ^a	2024	2023
(Contained metal) ^a	Q1	Total	Q4	Q3	Q2	Q1
Copper (t) ^b	88,013	314,798	103,337	89,942	60,057	61,462
Zinc (t)	45,688	185,161	50,719	49,774	36,115	48,553
Nickel (t)	3,255	16,429	3,729	4,290	4,686	3,724
Gold (koz) ^b	33	149	44	35	34	36
Molybdenum (t) ^b	864	2,024	928	1,096	—	—
a. Tonnes (t) and thousands of ounces (koz)
b. Candelaria and Caserones production is on a 100% basis.

	Three months ended March 31, 2024
Operations	Candelaria	Caserones	Chapada	Eagle	Neves-Corvo	Zinkgruvan
($000s, unless otherwise noted)	(Cu)	(Cu)	(Cu)	(Ni)	(Cu)	(Zn)	Total
Sales volumes (Contained metal):
Tonnes	33,536	35,211	8,742	2,163	5,886	15,825
Pounds (000s)	73,934	77,627	19,273	4,769	12,976	34,888
Production costs							567,134
Less: Royalties and other							(19,970)
							547,164
Deduct: By-product credits							(165,308)
Add: Treatment and refining							46,951
Cash cost	139,490	166,439	38,735	19,249	42,057	22,837	428,807
Cash cost per pound	1.89	2.14	2.01	4.04	3.24	0.65
Add: Sustaining capital	99,532	42,754	29,199	4,078	22,413	14,341
Royalties	2,968	8,814	1,617	2,678	735	—
Reclamation and other closure accretion and depreciation	2,167	1,040	2,679	1,968	1,335	1,186
Leases & other	3,033	15,381	765	1,236	64	78
All-in sustaining cost	247,190	234,428	72,995	29,209	66,604	38,442
AISC per pound ($/lb)	3.34	3.02	3.79	6.12	5.13	1.10

	Three months ended March 31, 2023
Operations	Candelaria	Caserones	Chapada	Eagle	Neves-Corvo	Zinkgruvan
($000s, unless otherwise noted)	(Cu)	(Cu)	(Cu)	(Ni)	(Cu)	(Zn)	Total
Sales volumes (Contained metal):
Tonnes	35,570	—	9,072	2,735	8,031	16,612
Pounds (000s)	78,418	—	20,000	6,030	17,705	36,623
Production costs							417,764
Less: Royalties and other							(12,086)
							405,678
Deduct: By-product credits							(156,965)
Add: Treatment and refining							36,615
Cash cost	173,692	—	47,318	14,640	29,892	19,786	285,328
Cash cost per pound	2.21	—	2.37	2.43	1.69	0.54
Add: Sustaining capital	90,686	—	16,027	7,102	25,061	14,468
Royalties	—	—	2,223	5,686	1,730	—
Reclamation and other closure accretion and depreciation	2,307	—	1,801	2,958	1,324	1,061
Leases & other	3,143	—	966	747	158	102
All-in sustaining cost	269,828	—	68,335	31,133	58,165	35,417
AISC per pound ($/lb)	3.44	—	3.42	5.16	3.29	0.97

	Three months ended March 31,
($thousands)	2024	2023
Net earnings	58,555	165,311
Add back:
Depreciation, depletion and amortization	184,492	120,247
Finance income and costs	35,694	15,699
Income taxes	50,566	48,693
	329,307	349,950
Unrealized foreign exchange loss (gain)	(15,500)	8,644
Unrealized losses (gains) on derivative contracts	52,832	(20,666)
Ojos del Salado sinkhole (recoveries) expenses	(1,031)	4,582
Revaluation loss (gain) on marketable securities	(2,430)	(438)
Gain on disposal of subsidiary	—	(5,718)
Other	(322)	589
Total adjustments - EBITDA	33,549	(13,007)
Adjusted EBITDA	362,856	336,943

	Three months ended March 31,
($thousands, except share and per share amounts)	2024	2023
Net earnings attributable to Lundin Mining shareholders	13,883	146,620
Add back:
Total adjustments - EBITDA	33,549	(13,007)
Tax effect on adjustments	(1,767)	(3,126)
Deferred tax arising from foreign exchange translation	(6,300)	(6,007)
Non-controlling interest on adjustments	5,852	1,202
Total adjustments	31,335	(20,938)
Adjusted earnings	45,218	125,682

Basic weighted average number of shares outstanding	773,048,710	771,216,060

Net earnings attributable to shareholders	0.02	0.19
Total adjustments	0.04	(0.03)
Adjusted earnings per share	0.06	0.16

Reconciliation:	2024 - Q1			2023 - Q4			2023 - Q1
Net (Loss) Income	$	(6,830	)	$	37,052		$	24,500
Adjustments:
Finance expense		4,634			5,284			6,526
Finance income		(1,468	)		(1,989	)		(4,138	)
Income tax (recovery) expense		(1,853	)		8,415			4,666
Amortization and depreciation		23,296			24,980			16,506
EBITDA	$	17,779		$	73,742		$	48,060
Foreign exchange loss (gain)		18,996			(24,871	)		(8,621	)
Share based compensation		6,545			477			5,017
Unrealized (gain) loss on copper derivatives		(64	)		955			—
Adjusted EBITDA	$	43,256		$	50,303		$	44,456

	March 31, 2024			December 31, 2023			March 31, 2023
Current assets	$	129,960		$	199,487		$	331,241
Less: Current liabilities		(158,565	)		(173,800	)		(112,448	)
Working (deficit) capital	$	(28,605	)	$	25,687		$	218,793

Cash and cash equivalents		51,692			111,738			209,908
Short-term investments		—			—			26,739
Available undrawn revolving credit facilities		105,000			150,000			150,000
Available liquidity	$	156,692		$	261,738		$	386,647

	Three months ended March 31,
($thousands)	2024	2023
Cash provided by operating activities	267,531	211,875
Sustaining capital expenditures	(213,260)	(155,564)
General exploration and business development	13,451	14,765
Free cash flow from operations	67,722	71,076
General exploration and business development	(13,451)	(14,765)
Expansionary capital expenditures	(55,981)	(90,519)
Free cash flow	(1,710)	(34,208)

($thousands)	March 31, 2024	December 31, 2023
Debt and lease liabilities	(1,417,892)	(1,273,162)
Current portion of total debt and lease liabilities	(183,702)	(212,646)
Less deferred financing fees (netted in above)	(5,729)	(6,374)
	(1,607,323)	(1,492,182)
Cash and cash equivalents	365,451	268,793
Net debt	(1,241,872)	(1,223,389)
Lease liabilities	260,463	277,208
Net debt excluding lease liabilities	(981,409)	(946,181)

Hudbay Announces Completion of Consulta Previa at Pampacancha

1. Global X Copper Miners ETF (ARCA:COPX)

2. United States Copper Index Fund (ARCA:CPER)

3. iShares Copper and Metals Mining ETF (NASDAQ:ICOP)

4. Sprott Copper Miners ETF (NASDAQ:COPP)

5. Sprott Junior Copper Miners ETF (NASDAQ:COPJ)

6. iPath Series B Bloomberg Copper Subindex Total Return ETN (ARCA:JJC)

Overview

Company Highlights

Key Project

Casino Project

Management Team

Dr. Paul West-Sells - President

Bill Williams – Interim Chairman

Sandeep Singh - Chief Executive Officer

Varun Prasad - CFO

Cameron Brown - Special Technical Advisor

Shena Shaw - VP, Environmental and Community Affairs

Dr. Klaus Zeitler - Director

Tara Christie - Director

Michael Vitton - Director

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