Hudbay Provides an Update on Manitoba Operations due to Wildfire Evacuation Order

Rhea-AI Summary

Hudbay Minerals (TSX, NYSE: HBM) has temporarily suspended operations in Snow Lake, Manitoba due to advancing wildfires and evacuation orders affecting Snow Lake, Flin Flon, and surrounding areas. The company has implemented emergency preparedness procedures, maintaining only essential personnel authorized by emergency services. Hudbay believes its infrastructure and facilities in both locations have a low risk of fire damage. The company has committed $1 million in direct financial support for evacuated employees and established a Community Relief Donations Fund with employee donation matching. Despite the temporary suspension, Hudbay expects to achieve its 2025 annual guidance metrics for Manitoba operations due to strong year-to-date performance. The company is actively supporting firefighting efforts with external firefighters, equipment, and resources while maintaining close communication with local authorities.

Positive

• Company expects to maintain 2025 annual guidance metrics despite disruption
• Infrastructure and facilities in Snow Lake and Flin Flon have low risk of fire damage
• $1 million committed in direct financial support for evacuated employees
• Established employee donation matching program through Community Relief Donations Fund

Negative

• Temporary suspension of operations in Snow Lake region
• Exploration activities in Flin Flon and Snow Lake regions are paused
• Production levels were already reduced prior to complete suspension

Insights

Mining Industry Analyst

Hudbay's temporary operations suspension due to wildfires shows strong crisis management while maintaining 2025 guidance despite production interruption.

Hudbay Minerals has temporarily suspended operations in Snow Lake, Manitoba, following a precautionary evacuation notice due to advancing wildfires, after already dealing with fire-related disruptions near Flin Flon. This suspension follows their earlier May 29th announcement about reduced production levels in Snow Lake while managing fires near Flin Flon.

Despite these operational challenges, the company maintains that its infrastructure and facilities have a low risk of fire damage. This assessment suggests the impact is primarily operational rather than related to potential asset impairment, which is crucial for valuation considerations.

The suspension's financial impact appears manageable as Hudbay still expects to achieve its annual guidance metrics for Manitoba in 2025, indicating strong year-to-date performance before the disruption. This suggests the company had built sufficient operational buffer in its production schedule to absorb temporary setbacks.

Hudbay's emergency response includes $1 million in direct financial support for evacuated employees and a matching donation fund, demonstrating strong community engagement during the crisis. Their deployment of firefighters and coordination with local authorities reflects robust emergency preparedness protocols.

The temporary nature of this suspension, combined with maintained guidance and minimal asset risk, suggests this event represents a short-term operational disruption rather than a fundamental business challenge. However, investors should monitor the situation for any extended suspension that could eventually impact production targets if the wildfire situation deteriorates.

TORONTO, June 04, 2025 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “Company”) (TSX, NYSE: HBM) continues to respond to the evolving wildfire situation in northern Manitoba and is working closely with local authorities to ensure its employees remain safe as well as comply with the regional wildfire evacuation orders for Snow Lake, Flin Flon and surrounding areas.

Hudbay’s news release dated May 29, 2025 outlined the Company's response to fires near Flin Flon and plans to maintain operations in Snow Lake at temporarily reduced production levels. However, as the fires advance across the province, a precautionary early evacuation notice was issued yesterday for the town of Snow Lake. In response, Hudbay has enacted its emergency preparedness procedures and enabled a controlled, safe and orderly temporary suspension of operations in Snow Lake. This proactive measure positions Hudbay well for a safe return to full operations once conditions permit. Only essential Hudbay personnel, authorized by emergency services, will remain in Snow Lake to assist with emergency activities. The Company believes its infrastructure and facilities in Snow Lake and Flin Flon are well-protected from the wildfires and have a low risk of being damaged.

"The safety of our employees, their families, our First Nations partners and the communities we serve remains our top priority. With the wildfires spreading, Hudbay has taken additional actions to support our employees, including $1 million in direct financial support and establishing a Community Relief Donations Fund," said Rob Carter, Hudbay’s Senior Vice President, Canada. "We are collaborating closely with local communities and municipal and provincial authorities to provide support during this challenging time. We will continue to monitor the situation, ensuring a safe return to full operations as soon as it is advisable."

Given the strong year-to-date performance in Snow Lake, the Company still expects to achieve its annual guidance metrics for Manitoba in 2025. Hudbay's exploration activities in the Flin Flon and Snow Lake regions also remain paused as fire mitigation efforts are underway.

Building on its commitment to support Manitoba and the communities near its operations, Hudbay is taking the following actions in response to the wildfire evacuation orders:

• An early commitment of $1 million in direct financial support for evacuated Hudbay employees.
• Establishing a Community Relief Donations Fund, where Hudbay will double the total amount donated by its employees across the company.
• Continue to support community and emergency response efforts.
• To aid firefighting efforts, Hudbay has deployed external firefighters to prepare for response activities.
• Executing safeguarding plans to protect Hudbay assets.
• Maintaining communication with the local communities and provincial authorities about the resources Hudbay has available to assist emergency response efforts, such as supplies, equipment and water trucks.

Forward-Looking Information

This news release contains “forward-looking statements” and “forward-looking information” (collectively, “forward- looking information”) within the meaning of applicable Canadian and United States securities legislation. Forward- looking information includes information that relates to, among other things, statements with respect to potential impacts from wildfires on the Company’s operations in Manitoba, including the ability to achieve guidance expectations. Forward-looking information is not, and cannot be, a guarantee of future results or events.

Forward-looking information is based on, among other things, assumptions related to the duration of the suspension of operations, the return to normal operations and the ability to achieve annual guidance that, while considered reasonable by Hudbay 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. 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. 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 copper-focused critical minerals mining company with three long-life operations and a world-class pipeline of copper growth projects in tier-one mining-friendly jurisdictions of Canada, Peru and the United States.

Hudbay’s operating portfolio includes the Constancia mine in Cusco (Peru), the Snow Lake operations in Manitoba (Canada) and the Copper Mountain mine in British Columbia (Canada). Copper is the primary metal produced by the company, which is complemented by meaningful gold production and by-product zinc, silver and molybdenum. Hudbay’s growth pipeline includes the Copper World project in Arizona (United States), the Mason project in Nevada (United States), the Llaguen project in La Libertad (Peru) and several expansion and exploration opportunities near its existing operations.

The value Hudbay creates and the impact it has is embodied in its purpose statement: “We care about our people, our communities and our planet. Hudbay provides the metals the world needs. We work sustainably, transform lives and create better futures for communities.” Hudbay’s mission is to create sustainable value and strong returns by leveraging its core strengths in community relations, focused exploration, mine development and efficient operations.

For further information, please contact:

Candace Brûlé
Vice President, Investor Relations, Financial Analysis and External Communications
(416) 814-4387
investor.relations@hudbay.com

FAQ

Why did Hudbay Minerals (HBM) suspend operations in Snow Lake?

Hudbay suspended operations in Snow Lake due to a precautionary early evacuation notice issued for the town as wildfires advanced across northern Manitoba, ensuring employee safety and compliance with regional evacuation orders.

How much financial support is Hudbay providing for the wildfire situation?

Hudbay is providing $1 million in direct financial support for evacuated employees and has established a Community Relief Donations Fund where the company will match employee donations.

Will the wildfire disruption affect Hudbay's 2025 guidance?

Despite the temporary suspension, Hudbay expects to achieve its annual guidance metrics for Manitoba in 2025 due to strong year-to-date performance in Snow Lake.

What measures has Hudbay taken to protect its facilities from the wildfires?

Hudbay has deployed external firefighters, implemented safeguarding plans, and maintains that its infrastructure and facilities in Snow Lake and Flin Flon have a low risk of being damaged by the wildfires.

How is Hudbay supporting the wildfire emergency response?

Hudbay is supporting emergency response efforts by providing supplies, equipment, water trucks, deploying external firefighters, and maintaining communication with local communities and provincial authorities.