11:21 AM EDT, 08/13/2025 (MT Newswires) -- (Adds National Bank comment and updates shares.)

Hudbay Minerals ( HBM ) on Wednesday reported a surge in adjusted earnings in the second quarter due to attractive operating cost margins and significant exposure to copper and gold across the company's operating portfolio.

Adjusted earnings, excluding most one-time items, rose to US$75.5 million, or US$0.19 per share, from US$0.2 million, or nil per share.

Revenue rose to US$536.4 million from US$425.5 million. Adjusted EBITDA was US$245.2 million, up from US$145 million.

The company produced 29,956 tonnes of copper, down from 28,578 tonnes. Gold production was 56,271 ounces, down from 58,614 ounces. Hudbay produced 814,989 ounces of silver, up from 738,707 ounces. Zinc production was 5,130 tonnes of zinc, down from 8,087 tonnes.

The company reaffirmed full-year 2025 consolidated production guidance of 117,000 to 149,000 tonnes of copper and 247,500 to 308,000 ounces of gold.

Separately, Hudbay said Mitsubishi agreed to acquire a 30% interest in its Copper World subsidiary that owns the Copper World project in Arizona for an initial cash contribution of US$600 million.

The cash contribution is composed of US$420 million as consideration for the 30% equity stake at closing and US$180 million as a matching contribution within 18 months of closing.

The transaction is scheduled to close in late 2025 or early 2026, pending receipt of certain regulatory approvals and satisfaction of customary closing conditions.

The company also agreed on terms with Wheaton Precious Metals ( WPM ) to amend an existing precious metals streaming agreement. The updated structure aligns with the current development plan for Copper World.

In addition to an initial US$230 million streaming deposit, the amendment provides an additional contingent payment of up to US$70 million on a future potential mill expansion. Ongoing payments for gold and silver were amended from fixed pricing to 15% of spot prices.

The company said it is well positioned to advance Copper World toward a sanction decision in 2026. A definitive feasibility study is underway and is expected to be completed by mid-2026.

National Bank of Canada maintained its outperform rating and $16.50 price target following the news.

National Bank said the sale of a 30% interest in Copper World at a favorable valuation highlights the significant strategic value of the project as Hudbay progresses towards development in the second half of 2026.

Hudbay shares were last seen up $2.64 to $16.21 on the Toronto Stock Exchange.

Price: 16.06, Change: +2.49, Percent Change: +18.35