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Hudbay Minerals: Initiation Of Coverage- Why Its Copper World Strategy Could Be A Game-Changer!

Hudbay Minerals, Inc. reported a strong start to 2026, achieving record revenue, adjusted EBITDA, and adjusted net earnings in the first quarter. The company generated consolidated copper production of 28,000 tonnes and gold production of 62,000 ounces, with quarterly revenues reaching $757 million and adjusted EBITDA at $422 million. Steady operational performance, effective cost control, and favorable metal prices contributed to record-low consolidated cash costs of negative $1.80 per pound of copper, partly due to high gold byproduct credits, which accounted for 39% of gross revenues. Free cash flow amounted to $102 million for the quarter, bringing the trailing 12-month total to approximately $400 million. The balance sheet strengthened with cash and cash equivalents exceeding $1 billion and total liquidity of $1.4 billion as of March 31, while net debt approached zero and the net debt-to-EBITDA ratio hit its lowest level in over a decade.