Hudbay Keeps Copper Guidance

Hudbay Minerals has maintained its 2026 production guidance across copper, zinc, and molybdenum after first-quarter output came broadly in line with expectations, keeping the Canadian miner on track despite lower ore grades in parts of its North American portfolio.

Hudbay Keeps Copper Guidance Unchanged

Hudbay expects to produce 110,000–138,000 tonnes of copper in 2026 across its operations in Peru and Canada. The guidance follows 2025 copper output of 118,188 tonnes and reflects the company’s view that stronger second-half performance can offset weaker grades reported in the first quarter.

First-quarter copper production fell 10% year on year to 27,929 tonnes. The decline was mainly caused by lower ore grades in Manitoba and British Columbia, where output dropped sharply compared with the same period last year. However, Hudbay’s Peruvian operations helped stabilize the group total, with copper production rising 1% to 20,573 tonnes.

Peru Throughput Supports Constancia Outlook

Hudbay’s Constancia operation in Peru remains central to its 2026 copper production plan. Although the Pampacancha mine was depleted at the end of 2025, the company said record mill throughput helped offset the impact on production.

The company expects additional support in the second half of 2026 from the installation of pebble crushers at Constancia. Hudbay also received approval from the Peruvian government on 6 March to raise permitted mill throughput to 31.3 million tonnes per year, up 5% from the previous 29.9 million tonnes. This gives the company more operating flexibility at a time when copper supply reliability remains a key concern for global smelters, traders, and industrial buyers.

North American Growth Remains a Strategic Focus

Hudbay expects higher second-half output from its British Columbia assets as mill improvement work supports better performance. In Manitoba, zinc production fell 27% year on year to 4,565 tonnes because of lower ore grades, but the company expects improved grade sequencing and higher ore output at the Lalor mine in Snow Lake to lift production later in the year.

The company is also building a longer-term copper growth platform in the United States. Hudbay agreed to acquire Arizona Sonoran Copper Company in an all-share transaction valued at about C$1.5 billion and is advancing the Copper World project in Arizona with Mitsubishi’s US subsidiary. These projects position Hudbay for greater exposure to North American copper demand linked to power infrastructure, manufacturing, electric vehicles, and energy transition investment.

Market Impact

○ Impacted Metals: Copper concentrate, contained copper, zinc concentrate, molybdenum concentrate

○ Direction: Stable

○ Time Horizon: 2026

○ Affected Industries: Copper smelting, zinc smelting, mining, power infrastructure, electric vehicles, manufacturing, construction, energy transition

○ Related Price Reports: Copper Weekly Price Report, Zinc Weekly Price Report, Molybdenum Weekly Price Report

○ Watch Item: Monitor whether Hudbay’s second-half mill improvements in Peru and British Columbia are enough to keep 2026 copper output within guidance.

SuperMetalPrice Commentary
Hudbay’s unchanged guidance is important because it signals operational confidence despite lower first-quarter grades in Canada. For copper buyers and investors, the main message is stability rather than immediate supply expansion.
The larger strategic point is Hudbay’s shift toward a broader North American copper platform. With Constancia providing current production support and Arizona projects adding future optionality, the company is positioning itself for a market where secure copper supply is becoming increasingly valuable.