Hudbay Minerals Inc (HBM) 2025 Q2 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Hudbay Minerals Inc., second quarter 2025 results conference call. (Operator Instructions)

女士們、先生們，早安。感謝您的支持。歡迎參加 Hudbay Minerals Inc. 2025 年第二季業績電話會議。（操作員指示）

I would like to remind everyone that this conference call is being recorded today, August 13, 2025, at 11:00 AM Eastern Time.

我想提醒大家，本次電話會議將於今天，即 2025 年 8 月 13 日東部時間上午 11:00 進行錄製。

I would now like to turn the conference over to Candace Brule, Vice President, Investor Relations. Please go ahead.

現在，我想將會議交給投資人關係副總裁 Candace Brule。請繼續。

Thank you, operator. Good morning, and welcome to Hudbay's 2025 second-quarter results conference call. Hudbay's financial results were issued this morning and are available on our website at www.hudbay.com. A corresponding PowerPoint presentation is available in the Investor Events section of our website, and we encourage you to refer to it during this call.

謝謝您，接線生。早上好，歡迎參加 Hudbay 2025 年第二季業績電話會議。Hudbay 的財務表現已於今早發布，可在我們的網站 www.hudbay.com 上查閱。對應的 PowerPoint 簡報可在我們網站的「投資者活動」板塊查閱，並建議您在本次電話會議上參考。

Our presenter today is Peter Kukielski, Hudbay's President and Chief Executive Officer. Accompanying Peter for the Q&A portion of the call will be Eugene Lei, our Chief Financial Officer; and Andre Lauzon, our Chief Operating Officer.

我們今天的主持人是 Hudbay 總裁兼執行長 Peter Kukielski。陪同 Peter 參加電話會議問答環節的還有我們的財務長 Eugene Lei 和我們的營運長 Andre Lauzon。

Please note that comments made on today's call may contain forward-looking information, and this information, by its nature, is subject to risks and uncertainties and, as such, actual results may differ materially from the views expressed today. For further information on these risks and uncertainties, please consult the company's relevant filings on SEDAR+ and EDGAR. These documents are also available on our website. As a reminder, all amounts discussed on today's call are in US dollars unless otherwise noted.

請注意，今天電話會議上的評論可能包含前瞻性信息，而這些信息就其性質而言，具有風險和不確定性，因此實際結果可能與今天表達的觀點存在重大差異。有關這些風險和不確定性的更多信息，請查閱公司在 SEDAR+ 和 EDGAR 上的相關文件。這些文件也可在我們的網站上找到。提醒一下，除非另有說明，今天電話會議上討論的所有金額均以美元計算。

And now I'll pass the call over to Peter Kukielski.

現在我將電話轉給 Peter Kukielski。

Thank you, Candace. Good morning, everyone, and thank you for joining us for today's presentation. Once again, we delivered another quarter of significant free cash flow generation, driven by continued industry-leading cost margins and diversified exposure to copper and gold. This strong financial performance enabled us to further reduce long-term debt, invest in our many high-return growth projects, and further strengthen our balance sheet to its best position in well over a decade.

謝謝你，坎迪斯。大家早安，感謝大家參加今天的演講。再一次，我們在本季度實現了可觀的自由現金流，這得益於我們持續保持行業領先的成本利潤率以及對銅和黃金的多元化投資。強勁的財務表現使我們能夠進一步減少長期債務，投資於許多高回報成長項目，並進一步加強我們的資產負債表，使其達到十多年來的最佳狀態。

We are also very pleased to announce a minority joint venture agreement with Mitsubishi Corporation at our Copper World project in Arizona, which further solidifies our financial strength and significantly reduces our funding requirement to develop this attractive project. We have secured the premier joint venture partner at an attractive valuation to develop our world-class Copper World project and establish a long-term strategic partnership that will unlock significant value in our copper growth pipeline.

我們也非常高興地宣布與三菱公司在亞利桑那州的 Copper World 專案中達成少數股權合資協議，這進一步鞏固了我們的財務實力，並大大降低了開發這項有吸引力的專案所需的資金。我們以極具吸引力的估值找到了首屈一指的合資夥伴，共同開發我們世界一流的 Copper World 項目，並建立長期戰略合作夥伴關係，這將為我們的銅增長渠道釋放巨大價值。

Through a highly accretive joint venture and enhanced precious metal streaming deal and the achievement of our financial targets, we have successfully realized the key elements of our prudent 3-P financial plan and significantly derisked the Copper World project as we advance towards a sanctioned decision in 2026. I will touch on the JV transaction in more detail in a moment, but first, I will discuss our second-quarter results, starting on slide 3.

透過高增值合資企業和增強型貴金屬串流交易以及實現我們的財務目標，我們成功實現了審慎的 3-P 財務計劃的關鍵要素，並在我們朝著 2026 年獲得批准的決定邁進時大幅降低了 Copper World 專案的風險。稍後我將更詳細地討論合資交易，但首先，我將從幻燈片 3 開始討論我們的第二季業績。

The strong financial results in the second quarter were driven by steady copper production, complementary gold production, and continued cost control across the business. Our operations in Manitoba showed remarkable resilience against unprecedented wildfires, prioritizing the safety of our people and communities while still delivering strong gold production. In Peru, our steady operating performance delivered production and costs in line with our expectations. And in British Columbia, we made excellent progress on our optimization plans with the SAG mill conversion project.

第二季強勁的財務表現得益於穩定的銅產量、互補的黃金產量以及整個業務的持續成本控制。我們在馬尼托巴省的業務在面對前所未有的野火時表現出了非凡的韌性，在優先考慮我們的人民和社區的安全的同時，仍然保持著強勁的黃金產量。在秘魯，我們穩定的營運表現使產量和成本符合我們的預期。在不列顛哥倫比亞省，我們的 SAG 磨機改造專案優化計畫取得了巨大進展。

Consolidated copper production in the second quarter was 30,000 tonnes, and consolidated gold production was 56,000 ounces. Consolidated copper production was relatively in line with the first quarter as higher production in Peru offset lower production in Manitoba from a suspension of operations in June due to mandatory wildfire evacuation orders.

第二季綜合銅產量為30,000噸，綜合黃金產量為56,000盎司。綜合銅產量與第一季基本持平，因為秘魯產量的增加抵消了馬尼托巴省因強制野火疏散令而於 6 月暫停營運所造成的產量下降。

Consolidated gold production was lower than the first quarter because of the wildfire impacts in Manitoba. Consolidated silver production was 815,000 ounces and zinc production was 5,000 tonnes in the second quarter.

由於曼尼托巴省野火的影響，綜合黃金產量低於第一季。第二季綜合白銀產量為 815,000 盎司，鋅產量為 5,000 噸。

We had another quarter of industry-leading cost performance with consolidated cash cost of negative $0.02 per pound and sustaining cash cost of $1.65 per pound. The increase compared to the first quarter was due to lower byproduct credits, combined with planned higher sustaining capital expenditures, but both metrics are well below the low end of the cost guidance ranges.

本季度，我們的成本績效再次處於行業領先地位，綜合現金成本為每磅負 0.02 美元，維持現金成本為每磅 1.65 美元。與第一季相比，這一增長是由於副產品信貸減少，加上計劃增加持續資本支出，但這兩項指標都遠低於成本指導範圍的低端。

With the strong performance in the first half of the year, we are reaffirming our full-year consolidated production guidance for all metals. We are favorably tracking well below our full-year consolidated cost guidance for 2025, which has resulted in an improved cost guidance range of $0.65 to $0.85, a decrease from our original cost guidance range of $0.80 to $1 per pound.

鑑於上半年的強勁表現，我們重申全年所有金屬的綜合產量指引。我們的成本指導價格遠低於 2025 年全年綜合成本指導價格，這導致成本指導價格範圍改善至 0.65 美元至 0.85 美元，低於我們原來的每磅 0.80 美元至 1 美元的成本指導價格範圍。

In the second quarter, we achieved adjusted EBITDA of $245 million, resulting in record annual trailing 12-month adjusted EBITDA of $996 million as of June 30. Net earnings were $0.30 per share and adjusted net earnings were $0.19 per share in the second quarter after adjusting for noncash gains from foreign exchange, revaluation from environmental reclamation provisions, mark-to-market investment revaluation and flow-through share expenditures.

第二季度，我們實現調整後 EBITDA 為 2.45 億美元，截至 6 月 30 日的過去 12 個月調整後 EBITDA 達到創紀錄的 9.96 億美元。經調整外匯非現金收益、環境復墾準備金重估、以市價計價的投資重估及流通股支出後，第二季淨收益為每股 0.30 美元，調整後淨收益為每股 0.19 美元。

Cash generated from operating activities of $260 million increased compared to the first quarter as a result of higher gross margins driven by stable copper production, higher realized prices and positive working capital management. Similarly, operating cash flow before change in noncash working capital was $194 million, a $30 million increase from the first quarter as a result of lower cash taxes, offset by lower gold and copper sales volumes in Manitoba.

由於銅產量穩定、實際價格上漲和積極的營運資本管理推動毛利率上升，經營活動產生的現金流較第一季增加 2.6 億美元。同樣，非現金營運資本變動前的營運現金流為 1.94 億美元，較第一季增加 3,000 萬美元，原因是現金稅降低，但被曼尼托巴省黃金和銅銷售量的下降所抵銷。

The strong financial performance during the second quarter marked the eighth consecutive quarter of meaningful free cash flow generation, as shown on slide 4. We generated $88 million of free cash flow in the quarter. And over the last 12 months, we have generated more than $400 million in free cash flow as a result of steady operating performance, expanding margins from strong copper and gold exposure, and a focus on cost control across the business.

如投影片 4 所示，第二季強勁的財務表現標誌著連續第八個季度產生有意義的自由現金流。我們在本季產生了 8800 萬美元的自由現金流。在過去的 12 個月中，由於穩定的營運績效、強勁的銅和黃金業務帶來的利潤率成長以及對整個業務成本控制的重視，我們產生了超過 4 億美元的自由現金流。

As a result of the continued free cash flow generation and prudent balance sheet management, we repurchased and retired $50 million of senior unsecured notes at a discount to par during the quarter. This has resulted in approximately $295 million in total debt repayments and gold prepayment liability reductions since the beginning of 2024, including $133 million in total bond buybacks, $100 million of revolver repayments, and $62 million to fully repay the gold prepay facility completed in August 2024.

由於持續產生自由現金流和審慎的資產負債表管理，我們在本季以低於票面價值的價格回購並贖回了 5,000 萬美元的優先無擔保票據。這導致自 2024 年初以來總債務償還和黃金預付負債減少約 2.95 億美元，其中包括總債券回購 1.33 億美元、循環信貸償還 1 億美元，以及 6,200 萬美元用於全額償還 2024 年 8 月完成的黃金預付貸款。

We ended the quarter with $626 million in cash and cash equivalents, and our net debt reduced to $434 million. This has further improved our leverage ratio to 0.4 times as of June 30, the lowest in more than a decade. While the majority of revenues continue to be derived from copper production, gold continues to represent more than 36% of total revenues in the second quarter.

本季末，我們的現金和現金等價物為 6.26 億美元，淨債務減少至 4.34 億美元。這使得我們的槓桿率進一步改善至6月30日的0.4倍，為十多年來的最低水準。雖然大部分收入仍來自銅生產，但黃金收入在第二季仍佔總收入的 36% 以上。

Our unique copper and gold diversification continues to provide significant leverage to both higher copper and gold prices. Our fortified balance sheet and robust free cash flow generation will allow us to continue to prudently reinvest in our portfolio of attractive high-return brownfield and greenfield opportunities to drive near-term and long-term production growth.

我們獨特的銅和金多元化投資策略，持續為銅和金價格上漲提供顯著槓桿。我們穩健的資產負債表和強勁的自由現金流產生能力，將使我們能夠繼續審慎地再投資於我們極具吸引力的高回報棕地和綠地項目組合，以推動短期和長期產量增長。

Turning to slide 5. Our Peru operations produced 22,000 tonnes of copper in the second quarter, in line with quarterly cadence expectations. Copper production increased compared to the first quarter as milled copper grades exceeded first-quarter levels. Constancia also produced 7,000 ounces of gold, 552,000 ounces of silver, and 375 tonnes of molybdenum.

翻到幻燈片 5。我們的秘魯業務在第二季度生產了 22,000 噸銅，符合季度節奏預期。由於精煉銅品位超過第一季水平，銅產量與第一季相比有所增加。康斯坦西亞還生產了 7,000 盎司黃金、552,000 盎司白銀和 375 噸鉬。

During the quarter, the last major stripping program at Pampacancha was completed, which included higher amounts of waste stripping than originally planned. As a result, we replaced higher-grade Pampacancha ore with higher-grade Constancia ore in the quarter, and Pampacancha is now expected to be depleted in the first quarter of 2026 rather than in late 2025.

本季度，Pampacancha 的最後一個主要剝離計劃已經完成，其中的廢料剝離量比原計劃要多。因此，我們在本季以更高品位的 Constancia 礦石取代了更高品位的 Pampacancha 礦石，預計 Pampacancha 礦石將在 2026 年第一季枯竭，而不是 2025 年底。

Protests that started early in the third quarter temporarily impacted the transportation of supplies and concentrate and has affected mine sequencing. The Constancia mill has continued to operate during this period and the road blockades along the concentrate transportation route have since reopened, allowing us to reduce site concentrate inventory levels and replenish supplies. Despite these short-term mine plan changes, we remain on track to achieve our full-year production guidance for all metals in Peru.

第三季初開始的抗議活動暫時影響了物資和精礦的運輸，並影響了礦場的開採順序。在此期間，康斯坦西亞工廠繼續運營，精礦運輸路線上的路障也已重新開放，這使我們能夠降低現場精礦庫存水準並補充供應。儘管這些短期採礦計畫有所變化，但我們仍有望實現秘魯所有金屬的全年產量目標。

Mill throughput in the quarter was impacted by the planned semiannual mill maintenance shutdown and therefore, was lower than the first quarter. Milled copper grades increased by 13% relative to the first quarter due to higher grades in the Constancia pit, while milled gold grades remained consistent with the prior quarter as Pampacancha stripping activities were underway in both quarters. Mill recoveries for all metals remained in line with our metallurgical models for the ore type that was being processed.

本季的工廠產量受到計劃中的半年一次的工廠維護停工的影響，因此低於第一季。由於康斯坦西亞礦坑品位較高，精磨銅品位較第一季成長了13%。由於潘帕坎恰礦區兩季均在進行剝離作業，精磨金品位與上一季持平。所有金屬的精磨回收率均與我們針對所加工礦石類型的冶金模型保持一致。

The operations delivered strong cost performance in the quarter with cash cost of $1.45 per pound despite higher maintenance costs associated with the planned mill maintenance program and lower byproduct credits. We remain well positioned to achieve the full-year cash cost guidance in Peru.

儘管與計劃的工廠維護計劃相關的維護成本較高且副產品信用較低，但本季該業務仍表現出色，現金成本為每磅 1.45 美元。我們仍有能力實現秘魯全年現金成本目標。

Moving to our Manitoba operations on slide 6. I personally want to thank the dedicated on-site team who demonstrated tremendous effort and unwavering commitment during the unprecedented wildfire situation in both Flin Flon and Snow Lake during the quarter. The team tirelessly safeguarded our assets and collaborated closely with the local communities and provincial authorities, providing essential support to emergency response efforts. These efforts resulted in no damage to Hudbay's infrastructure and facilities.

轉到幻燈片 6 上的我們的曼尼托巴業務。我個人要感謝現場敬業的團隊，他們在本季弗林弗倫和雪湖發生前所未有的野火事件時表現出了巨大的努力和堅定的承諾。團隊不知疲倦地保護我們的資產，並與當地社區和省級當局密切合作，為緊急應變工作提供重要支援。這些努力並沒有對哈德貝的基礎設施和設施造成損害。

In addition, we committed over CAD2 million in funding support to our evacuated employees, including $1.6 million in direct financial support and $500,000 in a donation to the Canadian Red Cross to support wildfire emergency relief and rebuilding efforts in northern Manitoba.

此外，我們還承諾向撤離的員工提供超過200萬加元的資金支持，其中包括160萬加元的直接財政支持和向加拿大紅十字會捐款50萬加元，以支持曼尼托巴省北部的野火緊急救援和重建工作。

Despite disruptions from the mandatory evacuation orders in May and June, the Manitoba operations showed remarkable resilience and achieved several key milestones in the second quarter. The operations produced 43,000 ounces of gold, 1,600 tonnes of copper, 5,100 tonnes of zinc and 198,000 ounces of silver in the second quarter. These were lower than the first quarter, primarily due to lower production in June associated with the 13-day temporary suspension of operations from the wildfire evacuation shutdown.

儘管 5 月和 6 月強制撤離令造成乾擾，但曼尼托巴省的業務表現出了非凡的韌性，並在第二季度取得了幾個關鍵的里程碑。該礦在第二季生產了 43,000 盎司黃金、1,600 噸銅、5,100 噸鋅和 198,000 盎司白銀。這些產量低於第一季度，主要原因是由於山火疏散停工導致 13 天的暫停運營，導致 6 月產量下降。

The Lalor mine managed through a period of reduced workforce prior to and after the temporary suspension of operations. Despite these challenges, the mine averaged 3,300 tonnes per day in the second quarter, strategically prioritizing mining from gold zones to ensure a consistent feed for the New Britannia mill.

拉洛爾礦在暫停營運前後經歷了一段勞動力減少的時期。儘管面臨這些挑戰，該礦第二季的平均日產量仍達到 3,300 噸，戰略上優先從金礦區開採，以確保新不列顛尼亞工廠的穩定供應。

Gold grades were in line with mine plan expectations, while being lower than the exceptional gold grade mined in the first quarter of 2025. Continuous improvement efforts at Lalor focused on ore quality and advancing stope modifications to enhance mucking productivity. Capital development continued, aiming to secure high-grade copper gold mineralization from Zone 27 and prepare Zone 17 for the next copper gold mining front.

黃金品位符合礦場計畫預期，但低於 2025 年第一季開採的卓越黃金品位。Lalor 持續改善工作的重點是礦石品質和推進採場改造，以提高出礦生產率。資本開發仍在繼續，旨在確保 27 區高品位銅金礦化，並為 17 區下一個銅金礦開採前沿做好準備。

The New Britannia mill achieved record monthly production levels in April, exceeding 2,300 tonnes per day. This significant milestone is a testament to ongoing low capital projects and recent piping improvements that boosted throughput and maintained strong gold recoveries. New Britannia's mill throughput averaged approximately 1,800 tonnes per day during the second quarter, reflecting the record levels achieved in April, offset by lower throughput levels in June associated with the wildfire evacuation shutdown. New Britannia gold recoveries of 89% were consistent with the first quarter.

新不列顛尼亞工廠 4 月的月產量創歷史新高，超過每天 2,300 噸。這一重要里程碑證明了正在進行的低資本項目和最近的管道改進提高了吞吐量並保持了強勁的黃金回收率。新不列顛尼亞工廠第二季的日均產量平均約為 1,800 噸，反映了 4 月創下的紀錄水平，但 6 月因野火疏散停工而導致的產量下降抵消了這一影響。新不列顛尼亞黃金回收率為 89%，與第一季一致。

The Stall mill continues to process less ore compared to prior periods, which is aligned with our strategy of allocating more Lalor ore feed to New Britannia to maximize gold recoveries. The Stall mill achieved gold recoveries of 68% in the quarter, reflecting benefits from recent recovery improvement programs.

與前期相比，Stall 礦場處理的礦石量持續減少，這與我們向新不列顛尼亞分配更多 Lalor 礦石進料以最大限度提高黃金回收率的策略一致。本季度，Stall 工廠的黃金回收率達到了 68%，體現了近期回收改進計畫帶來的好處。

Gold cash costs for the second quarter were $710 per ounce, impacted by lower gold production, as previously mentioned, but were within the guidance range. On July 10, the second mandatory wildfire evacuation notice was issued for the town of Snow Lake, and we suspended the Snow Lake operations in a controlled, safe, and orderly manner. All of our employees remain safe, and there has been no structural damage to Hudbay's on-site surface infrastructure and facilities.

第二季黃金現金成本為每盎司 710 美元，受到前面提到的黃金產量下降的影響，但仍在指導範圍內。7月10日，雪湖鎮發布了第二次強制山火疏散通知，我們以可控、安全、有序的方式暫停了雪湖的運作。我們所有的員工都很安全，而且 Hudbay 現場地面基礎設施和設施也沒有受到結構性損壞。

With the strong start to the year, we continue to expect to achieve our 2025 production guidance in Manitoba. And with cash costs in the first half of the year outperforming the low end of the cost guidance range, we are still well positioned to achieve the 2025 cash cost guidance range in Manitoba.

隨著今年的強勁開局，我們繼續期望在曼尼托巴省實現 2025 年的生產目標。由於今年上半年的現金成本超過了成本指導範圍的低端，我們仍然有條件實現曼尼托巴省 2025 年的現金成本指導範圍。

At our third operating business unit, British Columbia, which is discussed on slide 7, we continue to focus on advancing our optimization plans. Copper Mountain produced 6,600 tonnes of copper, 5,700 ounces of gold and 65,000 ounces of silver. Production of gold was higher than the first quarter due largely to higher recoveries, while copper and silver were lower primarily as a result of lower head grades from the use of stockpiled ore in the second quarter.

在我們的第三個營運業務部門不列顛哥倫比亞省（第 7 張投影片中討論），我們繼續專注於推進我們的優化計劃。銅山礦產出了 6,600 噸銅、5,700 盎司黃金和 65,000 盎司白銀。黃金產量高於第一季度，主要是因為回收率較高，而銅和銀產量較低，主要是因為第二季度使用庫存礦石導致品位較低。

We remain on track to achieve our 2025 production guidance for all metals in British Columbia and continue to expect higher production in the second half of the year as the mill improvement project takes effect. Mining activities in the quarter continue to focus on execution of the three-year accelerated stripping program intended to bring higher- grade ore into the mine plan. Total material moved in the quarter increased with the effective usage of the mining fleet and continued focus on mining efficiencies, including improvements with blasted muck inventories and operator recruitment. Total material moved is expected to continue to increase quarter over quarter as per the mine plan.

我們正穩步推動不列顛哥倫比亞省所有金屬2025年的產量目標，並預計隨著選礦廠改進項目的實施，下半年產量將進一步提升。本季度的採礦活動將繼續專注於實施為期三年的加速剝離計劃，旨在將更高品位的礦石納入礦山規劃。本季物料運輸總量隨著採礦車隊的有效利用和對採礦效率的持續關注而增加，包括爆破渣料庫存和操作員招聘的改進。根據礦山計劃，預計物料運輸總量將逐季增加。

Mill throughput in the second quarter was limited by both planned and unplanned maintenance and area constraints related to the completion of the SAG conversion project. We made significant progress on this project, which entails converting the third ball mill to a second SAG mill. On July 10, we successfully completed the initial phase of the project on time and on budget. The next phase of the project involves converting an interim feed arrangement to a permanent configuration, which remains on target for completion in the second half of the year. This is anticipated to enable mill throughput to ramp up throughout the second half of the year and increase the nominal plant capacity to its permitted level of 50,000 tonnes per day in 2026.

由於計劃內和計劃外的維護以及與 SAG 轉換項目完成相關的區域限制，第二季的工廠產量受到限制。我們在這個專案上取得了重大進展，該專案需要將第三台球磨機轉換為第二台半自磨機。7月10日，我們按時、按預算成功完成了專案初始階段的工作。該專案的下一階段涉及將臨時供料裝置轉換為永久配置，預計今年下半年完成。預計這將使工廠的產量在下半年大幅提升，並在 2026 年將工廠的名義產能提高到允許的每天 50,000 噸的水平。

During the second quarter, copper recoveries were 81% and gold recoveries were 68%, both higher than the first quarter despite lower head grades. Similar to our other operations, British Columbia achieved strong cost performance this quarter. Cash costs were $2.39 per pound in the quarter, an improvement over the first quarter as a result of higher by-product credits and the realized benefits from ongoing optimization efforts. With cash costs in the low end of the 2025 guidance range for the first half of the year, we are well on track to achieve our 2025 cash cost guidance range in British Columbia.

第二季度，銅回收率為 81%，金回收率為 68%，儘管金品位較低，但回收率均高於第一季。與我們的其他業務類似，不列顛哥倫比亞省本季實現了強勁的成本績效。本季現金成本為每磅 2.39 美元，由於副產品信貸增加以及持續優化工作帶來的實際收益，較第一季有所改善。由於上半年的現金成本處於 2025 年指引範圍的低端，我們預計在英屬哥倫比亞實現 2025 年現金成本指引範圍。

We also achieved a significant permitting milestone for our New Ingerbelle growth project at Copper Mountain during the quarter. On May 12, after more than a year of detailed preparation, our permitting application was successfully accepted into review by the BC Major Mines Office and is now advancing through a Mine Review Committee process. Our team continues ongoing engagement with the local First Nations and other stakeholder groups as part of our commitment to cultivating transparency and mutually beneficial relationships.

本季度，我們也在銅山的新英格貝爾成長計畫中取得了重要的許可里程碑。5 月 12 日，經過一年多的詳細準備，我們的許可申請成功獲得 BC 主要礦山辦公室的審查，目前正在通過礦山審查委員會的程序。我們的團隊繼續與當地原住民和其他利害關係人團體保持持續接觸，這是我們致力於培養透明和互惠關係的一部分。

At our Copper World project in Arizona, we are very pleased to be welcoming Mitsubishi Corporation as our 30% strategic partner, representing an important milestone as we advance this high-quality copper project towards sanctioning and unlock significant value in our copper growth portfolio. Slide 8 discusses the details of the transaction.

在我們位於亞利桑那州的「銅世界」專案中，我們非常高興地迎來三菱商事作為我們30%股權的策略合作夥伴，這標誌著我們推進這項優質銅礦專案審批並釋放銅礦成長組合巨大價值的重要里程碑。幻燈片8討論了此次交易的細節。

Under the joint venture transaction, Mitsubishi will acquire a 30% minority equity interest in Copper World for an initial contribution of $600 million. This comprises $420 million in cash contribution at closing and $180 million within 18 months of closing. Mitsubishi will also fund its pro rata 30% share of future capital contributions. This valuation is highly attractive to Hudbay as it implies a significant premium to consensus net asset value for Copper World. As a result of the JV proceeds and future capital contributions, the levered project IRR to Hudbay significantly increases to approximately 90%.

根據合資交易，三菱將以 6 億美元的初始出資額收購 Copper World 30% 的少數股權。其中包括交易結束時的 4.2 億美元現金出資以及交易結束後 18 個月內的 1.8 億美元現金出資。三菱也將按比例承擔未來30%的資本貢獻。這項估值對 Hudbay 來說極具吸引力，因為它意味著 Copper World 的淨資產價值將大幅溢價。由於合資企業的收益和未來的資本貢獻，Hudbay 的槓桿項目 IRR 大幅增加至約 90%。

I have a long history of involvement with joint ventures over my career, including developing and operating Antamina with Mitsubishi back in the 1990s and 2000s, and I've seen how strategic joint ventures have built some of the best mines in the world. After a highly robust and competitive process, we have selected the premier partner of choice in Mitsubishi.

在我的職業生涯中，我長期參與合資企業，包括在 20 世紀 90 年代和 21 世紀初與三菱合作開發和運營安塔米納金礦，我見證了戰略合資企業如何建造出世界上最好的一些礦山。經過高度嚴格和競爭性的流程，我們選擇了三菱作為首選合作夥伴。

As noted on slide 9, Mitsubishi is one of the largest of the Japanese trading houses and is a globally integrated minerals trading and investment company. Mitsubishi currently has investments in 5 of the top 20 copper mines in the world and is looking to continue to add to that world-class pipeline. They have a significant United States business that has over 50 subsidiaries and affiliates across various business sectors and manages $9 billion in total assets in North America. This strategic partnership validates the attractive long-term value of Copper World as a world-class copper asset and endorses the strong technical capabilities of Hudbay.

如第 9 張投影片所述，三菱是日本最大的貿易公司之一，也是一家全球綜合性的礦產貿易和投資公司。三菱目前在全球前 20 大銅礦中的 5 座中擁有投資，並希望繼續擴充這一世界級的管道。他們在美國擁有重要的業務，在各個業務領域擁有 50 多家子公司和附屬公司，在北美管理 90 億美元的總資產。此次策略合作驗證了Copper World作為世界級銅資產的長期價值吸引力，並認可了Hudbay強大的技術能力。

We have also amended the Wheaton Precious Metals stream at Copper World as summarized on slide 10. This enhanced stream provides an additional contingent payment of up to $70 million on future potential mill expansion milestones and recognizes the long- term potential at Copper World. We have also modernized the ongoing payments for gold and silver from fixed pricing to 15% of spot prices to provide upside exposure to higher precious metals prices.

我們也修改了 Copper World 中的 Wheaton Precious Metals 串流，如幻燈片 10 所述。這項增強型流程為未來潛在的工廠擴建里程碑提供了高達 7,000 萬美元的額外或有支付，並認可了 Copper World 的長期潛力。我們也對黃金和白銀的持續支付方式進行了現代化改革，從固定定價改為現貨價格的 15%，以便為貴金屬價格上漲提供上行風險。

The JV transaction initial cash contributions plus future pro rata equity capital contributions from Mitsubishi provides significant financial flexibility for Hudbay by reducing our estimated share of the remaining capital contributions to approximately $200 million based on PFS estimates. It also defers our first capital contribution to 2028 at the earliest.

合資交易的初始現金貢獻加上三菱未來按比例的股權資本貢獻，為 Hudbay 提供了顯著的財務靈活性，根據 PFS 估計，我們將剩餘資本貢獻的估計份額減少至約 2 億美元。它還將我們的第一筆資本投入最早推遲到 2028 年。

Slide 11 highlights our 3-P plan that we implemented in late 2022 to guide investment and value creation at Copper World. The announcements of the Mitsubishi joint venture and the enhanced Wheaton stream, together with the recent achievement of our stated balance sheet targets has successfully completed the key elements of our 3-P plan. Since 2022, we have secured all required permits for Copper World Phase 1. Definitive feasibility studies are well underway and on track for completion by mid-2026 as we advance the project towards a sanction decision.

投影片 11 重點介紹了我們在 2022 年底實施的 3-P 計劃，旨在指導 Copper World 的投資和價值創造。三菱合資企業和增強型惠頓流程的宣布，加上我們最近實現的既定資產負債表目標，已成功完成我們 3-P 計畫的關鍵要素。自 2022 年以來，我們已獲得 Copper World 第一階段所需的所有許可。隨著我們推進該專案並最終獲得批准決定，最終可行性研究正在順利進行，預計將於 2026 年中期完成。

With the financial results we announced today, we completed all of the key elements of our prudent financing strategy. We are well positioned to build one of the next major copper mines in the United States, while continuing to maintain a strong balance sheet throughout the build.

透過今天公佈的財務結果，我們完成了審慎融資策略的所有關鍵要素。我們已做好準備，在美國建造下一個大型銅礦之一，同時在整個建設過程中繼續保持強勁的資產負債表。

Copper World will support the United States government's foreign investment and national security objectives with direct $1.5 billion of investment into the US critical mineral supply chain, which also represents one of the largest investments in Southern Arizona's history. Hudbay is the fourth largest copper company listed on the New York Stock Exchange. And with the majority of our shareholders domiciled in the United States, we are pleased to advance America's next major copper mine. Copper World is a critical minerals project that underpins the United States as a global leader in copper production. We are supported by a partner with a large operational footprint in the United States, deep ties to the domestic economy and the history of significant investment into the United States.

Copper World 將向美國關鍵礦產供應鏈直接投資 15 億美元，支持美國政府的對外投資和國家安全目標，這也是南亞利桑那州歷史上最大的投資之一。Hudbay 是紐約證券交易所上市的第四大銅業公司。由於我們的大多數股東都居住在美國，我們很高興能夠推進美國下一個大型銅礦的開採。銅世界是一個重要的礦產項目，它鞏固了美國作為全球銅生產領導者的地位。我們得到了合作夥伴的支持，該合作夥伴在美國擁有廣泛的業務範圍、與國內經濟有著深厚的聯繫，並且在美國有大量投資的歷史。

The fully permitted initial phase of the Copper World project is located on private land owned by Hudbay. The mine is expected to produce 85,000 tonnes of copper per year over an initial 20-year mine life with an average of 92,000 tonnes per year expected over the first 10 years. During the three-year construction period, Copper World is expected to create more than 1,000 jobs and will engage union labor for project construction with letters of commitments currently in place with seven US labor unions.

Copper World 專案已獲得全面許可的初始階段位於 Hudbay 擁有的私人土地上。該礦預計在最初 20 年的礦山壽命內每年生產 85,000 噸銅，在前 10 年內預計平均每年生產 92,000 噸銅。在三年的建設期內，銅世界預計將創造1000多個就業崗位，並將聘請工會工人參與項目建設，目前已與美國七個工會簽訂了承諾書。

Copper World is also expected to contribute over $850 million in US taxes and create more than 400 direct jobs and 3,000 indirect jobs in Arizona once in production. Our Made in America copper production will contribute to the domestic US copper supply chain and strengthen manufacturing capacity, national security, and energy independence.

預計 Copper World 專案一旦投入生產，還將為美國貢獻超過 8.5 億美元的稅收，並在亞利桑那州創造 400 多個直接就業機會和 3,000 多個間接就業機會。我們在美國製造的銅生產將為美國國內銅供應鏈做出貢獻，並加強製造能力、國家安全和能源獨立。

Turning to slide 13. Copper World is the most advanced greenfield project in our portfolio and offers significant copper exposure and highly attractive project economics. With this successful JV milestone at Copper World, we will continue to derisk the project by accelerating detailed engineering, some key long lead items and other derisking activities this year, resulting in an additional $20 million in growth capital expenditures that have been advanced to 2025 from future years.

翻到第 13 張投影片。Copper World 是我們投資組合中最先進的綠地項目，具有顯著的銅資源利用率和極具吸引力的項目經濟效益。隨著 Copper World 合資專案里程碑的成功，我們今年將繼續透過加速詳細工程、一些關鍵的長週期專案和其他降低風險的活動來降低專案風險，從而額外增加 2,000 萬美元的成長資本支出，並將這些支出從未來幾年提前到 2025 年。

As a result, total 2025 Arizona growth spending guidance has increased to $110 million from $90 million on a 100% basis. Copper World is one of the highest grade open pit copper projects in the Americas with mineral reserves of 385 million tonnes at 0.54% copper. Once in production, Copper World is expected to be one of the largest copper producers in the United States.

因此，2025 年亞利桑那州的總成長支出指引金額已從 9,000 萬美元增加到 1.1 億美元（增幅 100%）。Copper World 是美洲品位最高的露天銅項目之一，礦產儲量為 3.85 億噸，銅品位為 0.54%。一旦投入生產，Copper World 預計將成為美國最大的銅生產商之一。

Concluding on slide 14, Hudbay currently produces more than 130,000 tonnes of copper per year, which is further augmented by more than 250,000 ounces of gold per year, offering commodity diversification and cash flow resiliency in volatile pricing environments. In our pipeline of near-term and long-term copper growth, Copper World positions us well to benefit from strong long- term copper market fundamentals.

最後回到投影片 14，Hudbay 目前每年生產超過 13 萬噸銅，此外每年還生產超過 25 萬盎司黃金，在價格波動的環境中提供商品多樣化和現金流彈性。在我們的短期和長期銅成長通路中，Copper World 使我們處於有利地位，可以從強勁的長期銅市場基本面中獲益。

Once Copper World is in production, we expect our annual copper production to grow by more than 50% from current levels. This will reinforce our position as one of the largest Americas-focused pure-play copper producers with a well-balanced and geographically diversified portfolio of assets. Our expected production will be weighted approximately one-third in each of Canada, the United States, and Peru. And the significant increase in copper production from Copper World will further enhance Hudbay's exposure to copper with more than 70% of consolidated production and revenue expected to be derived from copper.

一旦 Copper World 投入生產，我們預計我們的年銅產量將比現在增加 50% 以上。這將鞏固我們作為專注於美洲的最大的純銅生產商之一的地位，擁有均衡且地域多樣化的資產組合。我們預計加拿大、美國和秘魯的產量各佔三分之一左右。銅世界銅產量的大幅增加將進一步增強 Hudbay 對銅的認知，預計其 70% 以上的綜合產量和收入將來自銅。

Hudbay's existing strong operating platform in Tier 1 mining jurisdictions and resilient balance sheet offers significant upside potential for further value creation at higher copper and gold prices. Through our new JV partnership, we will leverage our complementary strengths to deliver Copper World, produce domestic copper in the United States for the domestic critical mineral supply chain, and unlock significant value in our long-term copper growth pipeline. At the same time, we continue to advance our many other high-return growth opportunities to unlock value across the portfolio and create meaningful value for all our stakeholders.

Hudbay 現有的一級礦業管轄區的強大營運平台和有韌性的資產負債表為在銅和金價格上漲時進一步創造價值提供了巨大的上升潛力。透過我們新的合資夥伴關係，我們將利用我們互補的優勢來打造“銅世界”，在美國為國內關鍵礦產供應鏈生產銅，並在我們的長期銅增長渠道中釋放巨大價值。同時，我們繼續推動許多其他高回報成長機會，以釋放整個投資組合的價值，並為所有利害關係人創造有意義的價值。

And with that, we are pleased to take your questions.

我們很高興回答您的問題。

(Operator Instructions) Ralph Profiti, Stifel.

（操作員指示） Ralph Profiti，Stifel。

Thanks, operator, and good morning, everyone. Congratulations on a quite significant deal. Peter, I have one question on commercial arrangements and then maybe one for Eugene on the balance sheet.

謝謝接線員，大家早安。恭喜您達成了一項相當重要的交易。彼得，我有一個關於商業安排的問題，然後也許還有一個關於資產負債表的問題想問尤金。

Firstly, will Mitsubishi be allowed commercial offtake in proportion to that 30%, Peter? And have you looked at the ability for the commercial arrangements to place concentrates in US smelters? Or is there the possibility to either bring forward the concentrate leach facility or even expand it?

首先，彼得，三菱是否可以以 30% 的比例獲得商業承購權？您是否考慮過透過商業安排將精礦放入美國冶煉廠的能力？或者是否有可能提前建設精礦浸出設施甚至擴建它？

Ralph, thanks very much for your kind words. The short answer to your question is on the first item is yes. So they will have -- Mitsubishi will have rights to 30% offtake that's consistent with their ownership share. As far as where that concentrate would be placed, it remains to be seen because we haven't really got into that level of detail.

拉爾夫，非常感謝您的善意。對你的問題的第一點簡短答案是肯定的。因此，三菱將擁有與其所有權份額相符的 30% 承購權。至於濃縮物將被放置在哪裡，這還有待觀察，因為我們還沒有真正了解這個細節。

On the other hand, I think the other question that you raised was with respect to the Albion Process. And of course, Albion is part of the pre-feasibility study. We plan to get it into operation as soon as possible. And sorry, was your question with respect to when we would do it? Or could you repeat that, please?

另一方面，我認為您提出的另一個問題是關於阿爾比恩的進程。當然，Albion 是預可行性研究的一部分。我們計劃盡快讓它投入運作。抱歉，您的問題是關於我們什麼時候做這件事？或者您能再說一次嗎？

Yes, Peter. The potential to bring forward from year four, that concentrate leach facility, which is in the current pre-feasibility study. Is that a possibility?

是的，彼得。從第四年開始，精礦浸出設施有可能提前投入使用，目前該設施正處於預可行性研究中。有可能嗎？

Yeah. Absolutely. And that will be completely studied in the feasibility study that we undertake together with our partner, but absolutely a possibility.

是的，絕對是如此。我們將與合作夥伴一起進行可行性研究，對此進行全面研究，但這絕對是可能的。

Thank you, Peter. Eugene, when you look at the leverage ratio, the balance sheet and the cash flow generating power of Hudbay in the next few years, it reduces the project financing number to a relatively small number. And I would have thought that there's a possibility that this can perhaps be foregone. Or is there strategic special interest or cost of capital that Mitsubishi is bringing to the table? And is this the reason that this still is an advantageous to the deal? And what's your thinking behind that?

謝謝你，彼得。尤金，如果你看一下Hudbay未來幾年的槓桿率、資產負債表和現金流產生能力，你會發現專案融資額會降到一個相對較小的金額。我原本以為這是有可能被放棄的。或者三菱是否帶來了戰略特殊利益或資本成本？這是否是這仍然有利於該交易的原因？您對此有何看法？

Thanks for the question, Ralph. And yeah, we're really pleased to bring on Mitsubishi as an equity joint venture partner. And as you can see from the slides, the JV proceeds plus the capital contributions from Mitsubishi contribute to over 50% of the project capital. And using, I'll call it, light version of project level financing at about one-third, that makes Hudbay's equity contribution only 15% of the capital.

謝謝你的提問，拉爾夫。是的，我們非常高興能引進三菱作為股權合資夥伴。從投影片中您可以看到，合資企業的收益加上三菱的資本貢獻佔專案資本的 50% 以上。並且使用我稱之為約三分之一的輕量級專案級融資，這使得 Hudbay 的股權貢獻僅佔資本的 15%。

We think that kind of one-third equity is kind of the right way or one-third debt is kind of the right way to look at funding a project of this size. It's manageable. We think that there is project level financing that is available to this project in a variety of sources, both from US-based sources and potentially with our partner that will help the equity returns for both Hudbay and Mitsubishi.

我們認為，對於這種規模的項目來說，三分之一的股權或三分之一的債務是正確的融資方式。這是可以控制的。我們認為，該專案可以透過多種管道獲得專案級融資，包括來自美國的融資，也可能來自我們合作夥伴的融資，這將有助於 Hudbay 和三菱獲得股權回報。

So it's kind of an enviable position to be in. We want to build this project with a lower level of debt, but also with some debt that has a low cost of capital to generate the most efficient returns, but also sustainably be able to build this project on a risk-adjusted basis that provides the most shareholder value for our shareholders.

所以這是一種令人羨慕的地位。我們希望以較低的債務水平來建立這個項目，同時也希望透過一些資本成本較低的債務來產生最有效的回報，同時也能夠在風險調整的基礎上持續建設這個項目，為我們的股東提供最大的股東價值。

Great, thank you. It's a very strong deal. Thank you.

太好了，謝謝。這筆交易太棒了。謝謝。

Orest Wowkodaw, Scotiabank.

Orest Wowkodaw，豐業銀行。

Yeah, good morning. Yeah, I echo Ralph's comments. Congratulations on the transaction. I have a few more questions on how you're thinking about Copper World. Has there been any discussion with the US administration about potentially moving forward with the Rosemont part sooner than Phase 2, and whether there potentially might be some give and take on the permitting related to that now?

是的，早安。是的，我同意拉爾夫的評論。恭喜交易成功。關於您對 Copper World 的看法，我還有幾個問題。是否與美國政府討論過在第二階段之前推進羅斯蒙特部分的可能性，以及現在是否可能在與此相關的許可方面做出一些讓步？

Again, thank you for the kind comments. Look, I think that I guess the overall commentary is that we are completely and absolutely focused on Phase 1 of Copper World. It's fully permitted. We own the land. It's simple. It's got a 20-year mine life, 385 million tonnes of reserves. And so right now, there is no need to enter into discussions related to the next phase of Copper World.

再次感謝您的善意評論。看，我認為整體評論是我們完全、絕對地專注於《銅世界》的第一階段。這是完全允許的。我們擁有這片土地。很簡單。該礦開採壽命為20年，儲量為3.85億噸。因此目前還沒有必要進行有關「銅世界」下一階段的討論。

That said, we do think that the current federal environment is highly constructive, and we've been encouraged by the bipartisan support that we have for developing the overall project. But at this point, we are completely focused on Phase 1. Let's get that done. Let's get the feasibility study done, let's get into operation, and we'll turn our attention to Phase 2 once we've done that.

話雖如此，我們確實認為當前的聯邦環境非常具有建設性，而且我們對整個項目開發所獲得的兩黨支持感到鼓舞。但目前，我們完全專注於第一階段。讓我們完成它。讓我們完成可行性研究，開始實施，完成後我們將把注意力轉向第二階段。

Okay. The feasibility study, you mentioned, is underway. A couple of questions there. The idea of moving forward the Albion Process, if you do bring it forward, can we still assume that's not going to be at the front end, which would obviously increase the capital and the risk profile?

好的。您提到的可行性研究正在進行中。有幾個問題。如果您確實提出推進阿爾比恩進程的想法，我們是否仍然可以假設它不會處於前端，這顯然會增加資本和風險狀況？

Yeah, I think it's pretty safe to assume that, Orest. We will take a look with our partner during feasibility of what the optimal timing for it is. But at this point, we're not looking at increasing CapEx associated with Albion.

是的，我認為可以相當安全地假設這一點，奧雷斯特。我們將與我們的合作夥伴一起研究可行性，以確定最佳時機。但目前，我們並未考慮增加與 Albion 相關的資本支出。

Okay. And then it's been a couple of years since you issued a CapEx estimate for Copper World. I know you're in the early stages of the feasibility, but can you give us any sense of whether you're seeing any major cost inflation from the previous number?

好的。距離您發布 Copper World 的資本支出估算已經有幾年了。我知道您正處於可行性的早期階段，但您能否告訴我們，與先前的數字相比，您是否看到了任何重大的成本膨脹？

Sure. I mean, we live in an inflationary cost environment, and there will likely be modest increases to the initial CapEx at Copper World since the last figure that we published back in the 2023 PFS. But that being said, remember that we're also seeing higher copper prices today, and there's a more bullish long-term view of future copper price given the supply-demand fundamentals.

當然。我的意思是，我們生活在一個通貨膨脹的成本環境中，自從我們在 2023 年 PFS 中發布的最後一份數據以來，Copper World 的初始資本支出可能會適度增加。但話雖如此，請記住，我們今天也看到銅價上漲，並且考慮到供需基本面，對未來銅價的長期看法更加樂觀。

So we do see that there will be mild CapEx escalation. But in any event, Copper World will still be substantially funded even in the case of a modest CapEx increase.

因此我們確實看到資本支出將會溫和增加。但無論如何，即使資本支出適度增加，Copper World 仍將獲得大量資金。

Okay. Final question. Is there any major scope changes in the feasibility study versus the other study? I'm just wondering if you're bigger processing facility or anything like that?

好的。最後一個問題。與其他研究相比，可行性研究的範圍是否有重大變化？我只是想知道您是否有更大的加工廠或類似的東西？

No, there are no changes foreseen in the current feasibility study in terms of scope. We've contemplated the idea of an expansion after we go into production, but that won't be part of the definitive feasibility study scope.

不，目前的可行性研究在範圍方面沒有預見到任何變化。我們曾考慮過在投入生產後進行擴建的想法，但這不屬於最終可行性研究範圍。

Thank you very much and congratulations.

非常感謝，恭喜你。

Dalton Baretto, Canaccord.

道爾頓·巴雷托（Dalton Baretto），Canaccord。

Thanks. Good morning, Peter and team, really excellent work on this. I wanted to start by asking about any potential approvals here. And I'm thinking back to the challenges Nippon Steel had with their acquisition of US Steel. Do you think this transaction raises any eyebrows in Washington? And do you need any approvals there?

謝謝。早安，彼得和團隊，你們做得非常好。我想先詢問這裡是否有任何潛在的批准。我回想起新日鐵在收購美國鋼鐵公司時所遇到的挑戰。您認為這筆交易會引起華盛頓的關注嗎？您需要任何批准嗎？

I mean, that's a great question, Dalton. So I don't believe that it does. We do plan to file a CFIUS brief or whatever one calls it, but it's not a requirement, but we do plan to do that, but we don't see any complexity associated with that.

我的意思是，這是一個很好的問題，道爾頓。所以我不相信會有這樣的事。我們確實計劃提交一份 CFIUS 簡報或無論人們如何稱呼它，但這不是一項要求，但我們確實計劃這樣做，但我們認為這並不會有任何複雜性。

This project enables the production of Made in America copper, and we feel that this is job creating and aligned with the US administration's critical minerals intentions for national security and US supply chain strengthening.

該項目能夠生產「美國製造」的銅，我們認為這將創造就業機會，並符合美國政府為國家安全和加強美國供應鏈而製定的關鍵礦產意圖。

And Dalton, I would just add to what Eugene says that this is a minority stake. And this minority stake is going to facilitate the creation of a lot of jobs in the United States as well as new investment in the United States.

道爾頓，我只想補充尤金所說的，這是少數股權。這些少數股權將促進美國創造大量就業機會以及吸引新的投資。

Yeah, thanks for that, Peter. And then as a follow-up, I wanted to ask the same question Orest asked on the Albion but sort of reverse it. Your balance sheet is in great shape. And yes, there ll be a bit more CapEx involved. But on the flip side, right, there's a lack of smelting capacity in the US. There's a potential a tariff could come in on concentrate export, and then there's the obvious social benefits there. Is there any reason like what sort of reasons would you have for not bringing it to the front end?

是的，謝謝你，彼得。接下來，我想問奧雷斯特在《阿爾比恩》裡問的問題，不過我把問題反過來問了。您的資產負債表狀況良好。是的，這將會涉及更多的資本支出。但另一方面，美國缺乏冶煉能力。精礦出口可能會被徵收關稅，但這顯然會帶來社會效益。有什麼理由嗎？例如，您不將其帶到前端的原因是什麼？

Dalton, I think that that's a subject that needs to be properly studied in the feasibility study. So you can be absolutely assured that as we go through the feasibility study with our partner that we will investigate the optimal approach to developing this project. But at this point, we are saying that Albion will be coming to production separately, will be part of a separate estimate. But for sure, we will study it in the feasibility study.

道爾頓，我認為這是一個需要在可行性研究中進行適當研究的主題。因此，您可以絕對放心，當我們與合作夥伴進行可行性研究時，我們將探索開發該專案的最佳方法。但目前，我們說《Albion》將單獨投入生產，將成為單獨估算的一部分。但可以肯定的是，我們將在可行性研究中對此進行研究。

Great, thank you, Peter. That's all for me.

太好了，謝謝你，彼得。對我來說就這些了。

Fahad Tariq, Jefferies.

法哈德·塔里克，傑富瑞。

Hi, thanks for taking my question. Can you maybe walk through Manitoba in the third quarter? I'm just trying to get a better sense of grades and see if the high grades will continue and potentially be an offset for the continued shutdowns. Thanks.

你好，謝謝你回答我的問題。你能在第三季走過馬尼托巴嗎？我只是想更了解成績狀況，看看高分能否持續下去，並有可能抵消持續停課的影響。謝謝。

Sure. Thanks for the question. It's Andre. So the grades are pretty much the same right through the year. So they're pretty flat through to the end of the year. So there's no major variation from what we're seeing. We did have a very strong quarter as a surprise in Q1 with grades, but -- and those happen from time to time, but it's very consistent through the year.

當然。謝謝你的提問。是安德烈。因此全年的成績都差不多。因此到年底為止，它們的銷售量基本上持平。因此，與我們所看到的相比，並沒有太大的變化。我們第一季的業績確實非常強勁，這令人驚訝，但這種情況時有發生，但全年都非常穩定。

And so the fire situation is actually getting much, much better, and they've been getting rain and the fires passed through town. And so we're really expecting operations to resume this month and looking forward to that, meeting our guidance forecast that we're projecting to the end of the year.

因此，火災情況實際上已經好轉了很多，而且一直在下雨，火勢已經蔓延到整個城鎮。因此，我們確實希望本月能夠恢復運營，並期待能夠達到我們預計到今年年底的指導預測。

Okay. And then apologies if I missed the answer to this or if this was already asked, but are you having any discussions with the current US administration that could help with Copper World Phase 2 or Mason permitting?

好的。然後，如果我錯過了這個問題的答案或這個問題已經被問過了，我很抱歉，但是您是否與現任美國政府進行過任何討論，以幫助獲得 Copper World 第二階段或 Mason 許可？

Fahad, no. We're not having discussions right now related to Phase 2. We're completely focused on Phase 1. Phase 2 down the road, let's get Phase 1 done. And then once it's behind us, we'll focus on what Phase 2 might look like. But what I would add or what I added is that we do view the current environment in the United States on a bipartisan basis as well as the current administration to be highly constructive with respect to the project. And I think that will stand Phase 2 in good stead, but we're focused on Phase 1 right now because it's on private land, 385 million tonnes of reserves, 20-year mine life, perfect partner. We've got our work cut out for us.

法哈德，不。我們目前還沒有討論第二階段的相關事宜。我們完全專注於第一階段。第二階段即將到來，讓我們先完成第一階段。一旦它過去了，我們就會注意到第二階段可能會是什麼樣子。但我想補充的是，或者說我已經補充的是，我們確實從兩黨角度看待美國當前的環境以及現任政府對該計畫的高度建設性。我認為這將為第二階段帶來良好的發展，但我們現在專注於第一階段，因為它位於私人土地上，擁有 3.85 億噸儲量、20 年的礦山壽命，是完美的合作夥伴。我們已經做好準備工作了。

On the Mason one there, Peter, I think with this deal allows us to look at our portfolio at other opportunities, and Mason is another great opportunity in our portfolio. And with the current administration and permitting, it's ripe to be advanced as well. So I think this deal does set us up to be able to look at other opportunities in our portfolio.

關於梅森，彼得，我認為這筆交易讓我們能夠從投資組合中尋找其他機會，而梅森是我們投資組合中的另一個絕佳機會。在現任政府的批准和支持下，該計畫也已成熟，可以進一步推進。因此我認為這筆交易確實讓我們能夠尋找投資組合中的其他機會。

Absolutely.

絕對地。

Thank you.

謝謝。

Matthew Murphy, BMO Capital Markets.

馬修·墨菲，BMO資本市場。

Hi. Just modeling out the Copper World financing, the waterfall you have in terms of project financing structure, how do we think about order of funding sources then? Is that representative that like first, you would do the Wheaton stream, then project finance and then this JV capital would get drawn, and then your capital goes in last alongside whatever else additional capital Mitsubishi has to put in?

您好。剛才您模擬了 Copper World 的融資情況，就專案融資結構而言，您有瀑布式的流程，那麼我們如何考慮資金來源的順序呢？那位代表是不是說，首先，你會進行惠頓流程，然後是專案融資，然後提取合資資本，最後你的資本與三菱必須投入的其他額外資本一起投入？

Matt, it's Eugene here. Actually, the waterfall is a simplification of the sources of capital rather than the order. The order of capital is a much longer spreadsheet. But I think what you can -- the priority of the funding is the first funding comes from this JV partner and the proceeds that are in this deal, $420 million on closing, followed by $180 million within 18 months of closing. That's sort of the first piece of capital that's going to be used.

馬特，我是尤金。其實，瀑布模型是對資金來源的簡化，而不是對順序的簡化。資本的順序是一個更長的電子表格。但我認為你可以——融資的優先順序是第一筆資金來自這個合資夥伴，這筆交易的收益在交易結束時為 4.2 億美元，然後在交易結束後 18 個月內為 1.8 億美元。那是即將使用的第一筆資金。

The -- upon sanctioning, the Wheaton stream, $50 million of the $230 million is due. And having spent about $100 million in project spend, the next $180 million of Wheaton comes through.

經批准後，惠頓溪將獲得 2.3 億美元中的 5,000 萬美元。在花費了約 1 億美元的項目支出後，惠頓的下一筆 1.8 億美元也已到位。

So the first significant portion of capital comes directly from the JV proceeds and Wheaton. The project financing, we expect to be arranged at the time of sanctioning, and that would be available to be drawn as the next piece of capital. And then the last piece of capital would be the 70-30 piece of equity that Hudbay and Mitsubishi jointly fund. So that's one of the reasons why we said in our -- in this agreement that it allows Hudbay's equity funding to be delayed until 2028 at the earliest, which is what gives us the very strong IRR of 90-plus percent from a project to Hudbay versus a project IRR of around 20% for the project.

因此，第一大筆資本直接來自合資企業收益和惠頓。我們預計專案融資將在批准時安排好，並可作為下一筆資本提取。最後一筆資金將由 Hudbay 和三菱共同出資，佔股 70% 和 30%。這就是我們在協議中所說的原因之一——它允許 Hudbay 的股權融資最早推遲到 2028 年，這使得 Hudbay 的專案內部收益率 (IRR) 非常高，達到 90% 以上，而該專案的內部收益率僅為 20% 左右。

Got it. Okay, thanks for that. Separate question. Good to hear that you've fared okay through the fires. That's a relief. Just have you been able to do your exploration programs this summer? And what's the outlook for getting drilling to work? And maybe I'll include Peru as part of that question. Do you have any update on your timing where you actually get drills turning in Peru?

知道了。好的，謝謝。單獨的問題。很高興聽到你在火災中安然無恙。這真讓人鬆了一口氣。今年夏天你能完成你的探索計畫嗎？鑽探工作的前景如何？也許我會把秘魯也納入這個問題。您是否對在秘魯進行鑽探的時間有任何更新？

Sure, Matt. It's Peter. So we did conduct an exploration program, we started an exploration program in Manitoba during the summer. Obviously, that was interrupted by the wildfires, both in Flin Flon and in Snow Lake. So exploration there has been paused right now. Once the conditions abate, then we'll go back into exploration. So there's nothing significant coming out of Manitoba right now, but we do expect to have a very, very strong continuing exploration program through the winter.

當然，馬特。是彼得。所以我們確實進行了一項探索計劃，我們在夏天在曼尼托巴省啟動了一項探索計劃。顯然，弗林弗倫和雪湖的野火打斷了這一進程。因此那裡的探索目前已暫停。一旦情況緩解，我們就會重新開始探索。因此，目前馬尼托巴省還沒有任何重大進展，但我們確實希望在整個冬季繼續開展非常非常強勁的勘探計劃。

In Peru, the same -- the status is similar. We don't have a time at which we'll start exploration at Maria Reyna and Caballito because the Consulta Previa process has to be completed first. That's underway right now. We don't have a precise date of when we'll get it because it's in the hands of the government, but it's the last piece that remains before we actually start drilling.

在秘魯，情況也類似。我們尚未確定何時開始探索瑪麗亞雷納 (Maria Reyna) 和卡巴利托 (Caballito)，因為必須先完成 Consulta Previa 流程。目前這項工作正在進行中。我們不知道何時能得到它，因為它在政府手中，但這是我們真正開始鑽探之前剩下的最後一塊。

Peter, just to add to that is so as we press released earlier, we did sign an agreement with Mosakahiken Cree Nation around the Talbot deposit. And the area has cleared for us from the fires from those, and we have two drills currently operating and drilling off that deposit. So a couple of the other drills are capped, as Peter mentioned, but that program is up and running and doing well. So we'll look to see some results in the future.

彼得，補充一點，正如我們之前發布的新聞稿，我們確實與 Mosakahiken Cree Nation 簽署了有關 Talbot 礦床的協議。我們已經清理了該地區的火災痕跡，目前我們有兩個鑽機正在運行，正在對礦床進行鑽探。正如彼得所提到的那樣，其他一些訓練受到了限制，但該項目已經啟動並運行，並且進展良好。因此我們期待未來能看到一些成果。

Perfect. Thank you.

完美的。謝謝。

Shane Nagle, National Bank Financial.

謝恩‧納格爾 (Shane Nagle)，國家銀行金融。

Thanks, operator. Most of my questions have been asked here, but congratulations again on a good transaction at Copper World and a good quarter as well. Just a couple of questions. One, maybe on the intricacies of this matching contribution, the $180 million. Is that basically covering your costs as they're incurred within the project? And is that $180 million truly Hudbay share? Or is that $180 million into the JV? Just trying to better understand the mechanics of that second contribution.

謝謝，接線生。我的大部分問題都在這裡提出來了，但還是要再次祝賀 Copper World 的交易順利，並且本季表現良好。僅有幾個問題。首先，也許要了解這筆 1.8 億美元的配套捐款的複雜程度。這基本上涵蓋了專案內產生的成本嗎？那 1.8 億美元真的是 Hudbay 的股份嗎？還是向合資企業投入 1.8 億美元？只是想更理解第二個貢獻的機制。

Hi, Shane, the $180 million is straight into the JV. And as I think I mentioned to Matt, that's basically the first $600 million of project work will be funded from the JV proceeds, including the initial earn-in and the matching contribution, which will be within 18 months of closing.

你好，Shane，這 1.8 億美元將直接投入合資企業。我想我跟馬特提過，基本上，項目首期 6 億美元的資金將來自合資企業的收益，包括初始盈利和配套出資，這些都將在項目結束後的 18 個月內完成。

Okay. So it's not entirely net to Hudbay in terms of the total $600 million number. It's kind of into the JV?

好的。因此，就 6 億美元的總額而言，這對 Hudbay 來說並不完全是淨收入。這有點像合資企業？

Yes, that's the most efficient way to take the proceeds into the project and ensure the project gets developed with the lowest level of equity capital contribution for Hudbay going forward.

是的，這是將收益投入到專案中的最有效方式，並確保該專案以最低的股權資本投入水準為 Hudbay 未來發展提供保障。

Okay. And then just secondly, on Constancia and Pampacancha. You mentioned the mine sequencing being impacted in Q3 just due to the protest, and we'll see the deposit now depleted in Q1. Does this mean that there's more stockpiles to be processed in Q3 as well as a result of that?

好的。其次，關於 Constancia 和 Pampacancha。您提到，由於抗議活動，礦山排序在第三季受到影響，我們將看到礦藏在第一季枯竭。這是否意味著第三季將有更多的庫存需要處理？

This is Andre. Yeah, you're correct. So there's so we're processing a little bit more stockpile in the quarter but not slowing down Pampacancha. So Pampacancha is going full bore. So it's more of a blend of the two looking forward.

這是安德烈。是的，你說得對。因此，我們在本季處理的庫存會稍微多一些，但不會影響 Pampacancha 的進度。因此，Pampacancha 正在全力以赴。因此，這更像是兩種期待的融合。

Thank you. And that concludes our question-and-answer session. I'd like to turn the conference back over to Candace Brule for any closing remarks.

謝謝。我們的問答環節到此結束。我想將會議交還給 Candace Brule 做最後發言。

Thank you, operator, and thank you, everyone, for joining us today. If you have any further questions, please reach out to our Investor Relations team.

謝謝接線生，也謝謝大家今天加入我們。如果您有任何其他問題，請聯絡我們的投資者關係團隊。

Thank you. This brings to the close of today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

謝謝。今天的電話會議到此結束。您可以斷開線路。感謝您的參與，祝您有個愉快的一天。