Hudbay Minerals Inc.

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the HUD-Bay fourth quarter 2025 results conference call. At this time, all participants are in listen-only mode, and following the presentation, we will conduct a question and answer session. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. Should you need assistance during the conference call, you may reach an operator by pressing star then zero. I would like to remind everyone that this conference call is being recorded today, February the 20th at 11 a.m. Eastern Time. I would now like to turn the conference over to Candice Boulay, Vice President, Capital Markets and Corporate Affairs. Please go ahead.

Thank you, Operator. Good morning and welcome to HUD-based fourth quarter and full year 2025 results conference call. HUD-based 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. Our presenters today are Peter Kakilski, HUD-based President and Chief Executive Officer, and Eugene Lee, our Chief Financial Officer. Accompanying Peter and Eugene for the Q&A portion of the call will be Andre Lauzon, our Chief Operating Officer. 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 CDAR Plus and EDGAR. These documents are also available on our website. As a reminder, all amounts discussed on today's call are in U.S. dollars unless otherwise noted. And now I'll pass the call over to Peter Kokilski.

Thank you, Candice. Good morning, everyone, and thank you for joining us for today's call. 2025 was a transformative year for HUD-BAY as we achieved the third consecutive year of record financial performance. We delivered record annual revenues of more than $2 billion record annual adjusted EBITDA of over $1 billion, and record annual free cash flow generation of more than $380 million. Our diversified operating platform demonstrated resilience and enabled us to deliver our 11th consecutive year of achieving copper production guidance and fifth consecutive year of achieving gold production guidance. We also outperformed our twice improved consolidated cash cost guidance demonstrating industry-leading cost performance. These achievements are even more remarkable considering the significant challenges we had to overcome with wildfire evacuations in Manitoba and social unrest in Peru last year. We are delighted to have secured Mitsubishi as a premier long-term partner for our Copper World project in a precedent-setting joint venture transaction. This transaction enables us to unlock significant value in our copper growth pipeline further solidifies our financial strength and significantly reduces our share of future equity contributions for the development of Copperworld. Our prudent strategic financial planning and execution has enabled us to achieve our balance sheet deleveraging goals ahead of schedule and lowered our cost of capital. We now have the financial flexibility to sanction Copperworld in 2026, embark on generational investments in our operating portfolio, and commence increases in shareholder returns with our first ever dividend increase as part of our holistic capital allocation framework. This will allow us to continue to deliver attractive growth and maximize long-term risk-adjusted returns for our stakeholders. Slide 4 provides an overview of our fourth quarter operational and financial performance. The fourth quarter underscored our commitment to operational excellence with standout performance in Peru, driven by high-grade Pampa Cancha ore, record monthly throughput achieved at the New Britannia Mill in Manitoba, and a successful completion of the Sagville feed system in British Columbia. We achieved $733 million in record revenues and $386 million in record-adjusted EBITDA during the fourth quarter. We produced 33,000 tons of copper and 84,000 ounces of gold in the quarter, despite an eight-day power outage in Manitoba and lower throughput levels in British Columbia. Our operations in Peru had a strong finish to the year with a final quarter of Pampacancha mining activities. Fourth quarter net earnings were $128 million, or 32 cents per share, reflecting strong gross margins as a result of higher metal prices and $25 million received for business interruption insurance from the mandatory wildfire evacuations in Manitoba. After adjusting for the insurance proceeds and other non-cash items, fourth quarter adjusted earnings was 22 cents per share. We continue to demonstrate industry-leading cost performance in the fourth quarter with consolidated cash costs of negative 63 cents per pound and consolidated sustaining cash costs of 94 cents per pound. These costs significantly improved compared to the third quarter, primarily as a result of higher copper production and higher gold byproduct credits. Turning to slide five, HUD Bay's unique diversification in copper and gold, coupled with our relentless commitment to cost control, enables us to maintain industry-leading margins and deliver strong and reliable cash flows. Operating cash flow before change in non-cash working capital was $337 million in the quarter, a meaningful increase compared to the third quarter, reflecting higher copper and gold sales volumes from normalized operations after the temporary interruptions and higher metal prices. After accounting for the capital investments to sustain production, we generated $228 million in free cash flow during the quarter, bringing annual free cash flow to $388 million in 2025 and achieving new quarterly and annual record levels. While the majority of revenues continue to be derived from copper, revenue from gold continues to represent a growing portion of total revenues with 41% of gold revenues in the fourth quarter. Our deleveraging efforts continued in the fourth quarter as we repurchased and retired an additional $39 million of senior unsecured notes through open market purchases at a discount to par. We are proud to say that since the end of 2024, we have reduced our long-term debt by $185 million, bringing our total debt levels to $1 billion today. We ended the quarter with total liquidity of $994 million, including $569 million in cash and cash equivalents and undrawn availability of $425 million under our revolving credit facilities. Our net debt to EBITDA ratio further improved to 0.4 times at the end of December. After year end, Our cash and cash equivalence balance increased to $992 million with the closing of the Copperwell joint venture transaction in early January. This increases our adjusted total liquidity to over $1.4 billion and further lowers our net leverage ratio to zero times. This financial transformation demonstrates the benefits of our diversified operating platform, industry-leading costs, and prudent balance sheet management. we are extremely well positioned to prudently reinvest in our portfolio of attractive high-return brownfield and greenfield opportunities to drive production growth and long-term value creation. In Peru, we exceeded the top end of the annual gold production guidance range and achieved the copper production guidance range despite the impact of a temporary operational interruption due to social unrest as shown on slide six. Our Peru operations had the strongest quarter of the year in the fourth quarter as we continued to see strong copper and gold grades from Pampa Concha and we processed less ore from low-grade stockpiles compared to the prior quarter. We continued to optimize the mine plan with more ore mined from Pampa Concha during the quarter than previously expected, resulting in the accelerated depletion of Pampa Concha in late December as opposed to early 2026. The operations produced 25,000 tons of copper, 33,000 ounces of gold, 731,000 ounces of silver, and 325 tons of molybdenum during the quarter. Production of copper, gold, and silver increased by 38%, 25%, and 27% respectively compared to the third quarter due to higher ore milled as the third quarter was impacted by the temporary operational interruptions. Mill throughput increased to 7.6 million tons in the quarter due to higher mill availability than the third quarter, partially offset by the scheduled semi-annual mill maintenance shutdown in the fourth quarter. Mill's copper grades increased by 26% compared to the third quarter, with higher grades from Pampacuncha and less ore processed from stockpiles. Mill's gold grades also increased with a strong gold contribution from Pampacuncha. Mill recoveries were in line with our metallurgical models based on the ore being processed. Fourth quarter cash costs in Peru were 57 cents per pound of copper, decreasing by 56% compared to the third quarter with the benefit of higher gold byproduct credits partially offsetting higher profit sharing. Full year cash costs in Peru outperformed the low end of the guidance range and improved by 8% from 2024 due to lower treatments and refining charges and higher byproduct credits. Fourth quarter metal sold was higher than the prior quarter as some copper concentrate sales in the third quarter were impacted by ocean swells and were deferred to the fourth quarter. While copper concentrate inventory levels normalized at the end of last year, there were elevated levels of precious metals contained in the inventory concentrate due to a higher portion of Pampacantia production in the second half of the year. resulting in a shift of some precious metal sales from December 2025 to 2026. We continue to advance the installation of pebble crushers in Peru to increase mill throughput rates starting in the second half of 2026, which will allow Constancio to deliver steady annual copper production despite lower grades from the depletion of Pampa Cancha. These efforts align with the Peru Ministry of Energy and Mines regulatory change to allow mining companies to operate up to 10% above permitted levels. Turning to slide seven, our Manitoba operations were previously tracking within the 2025 guidance ranges despite the wildfire impacts. However, as a result of the weather-related power outage in October and the subsequent ramp-up period required to restore full operations, gold and zinc production fell below the low end of the respective ranges. That said, we successfully achieved guidance for copper and silver despite these interruptions. Performance in the fourth quarter demonstrates that our Manitoba operations have normalized following the significant wildfire disruptions. Our Manitoba operations produced 47,000 ounces of gold, 3,000 tons of copper, 6,000 tons of zinc, and 214,000 ounces of silver in the quarter. Full year production in Manitoba was lower than the prior year as a result of production deferrals from the wildfires, the weather related power outage and associated ramp up to restore full operations. However, we continue to focus on safety and achieved a 15% reduction in total recordable injury frequency in 2025. At the Lalor mine, the focus was on stabilizing production after resuming operations. Lalor averaged over 4,200 tons per operating day in the quarter, strategically prioritizing mining from the gold zones to ensure feed for the New Britannia mill. Gold grade slightly increased compared to the third quarter as we continue to improve ore quality and focus on prioritizing gold zones at Lalor. Consistent with our strategy of allocating more LALOR ore feeds to New Britannia to maximize gold recoveries, the New Britannia mill achieved average throughput of approximately 2,300 tons per day in December, reaching a new monthly throughput record. The ore mill continued to focus on process optimization and enhancing gold recovery initiatives, which resulted in achieving over 70% gold recovery from our base metal ore streams. The storm will process significantly less ore in 2025 compared to 2024 in alignment with our strategy to allocate more Lalo ore feed to New Britannia. The 1901 deposit delivered 6,600 tons of development ore in 2025 as the project progresses towards full production in 2027. During the year, the team focused on establishing 1901 underground infrastructure and haulage and exploration drifts. Manitoba sales volumes in the fourth quarter reflect a rebuild of inventory levels as operations normalized. Manitoba gold cash costs in the fourth quarter were $705 per ounce, increasing compared to the third quarter, primarily due to higher overall costs in the quarter as operations normalized. Despite the production headwinds in 2025, full-year gold cash costs were $549 per ounce, a 9% improvement from 2024 and outperforming the lower end of the cash cost guidance range. The strong cost performance was supported by the prioritization of high margin gold production over byproduct zinc production. In British Columbia, we continue to focus on advancing our multi-year optimization plan centered on ramping up mining activities and implementing standardized operating practices as shown on slide eight. We produced 4.7,000 tons of copper, 4,000 ounces of gold, and 57,000 ounces of silver in British Columbia in the fourth quarter. Production was lower compared to the prior quarter, primarily reflecting reduced mill throughput caused by unplanned maintenance on the primary sag mill. Full year production achieved the guidance range for gold and silver, while copper production fell below the low end of the guidance range because of the impacts of the primary sag mill unplanned maintenance and a higher amount of low-grade stockpiled ore processed throughout the year. Mining activities continued to focus on executing a three-year accelerated stripping program to unlock higher-grade ore starting in 2027. Total ore mined in the fourth quarter was 2.4 million tons, a 32% increase from the third quarter as we optimized the mining sequence and enhanced maintenance practices which increased mining rates to a targeted 300,000 tons per day in December. To sustain this momentum, a new production loader was commissioned in January 2026, and a new shovel is currently scheduled for deployment in March. Mill enhancement initiatives continued in the fourth quarter with the successful completion of the permanent feeder for the second sag mill in December. The second sag mill continued to demonstrate positive contributions to overall throughput in the fourth quarter. The mill processed 27 percent less ore in the fourth quarter compared to the third as a result of unplanned maintenance on the primary sag mill to address localized damage to the feed end head. Operations were further constrained by elevated clay content in the ore and the planned decrease in feed pile to accommodate the construction and tie-ins for the second sag expansion project. The team implemented several additional initiatives in 2025 to mitigate further challenges and build long-term mill reliability, including completing crushing circuit chute modifications, installing advanced grinding control instrumentation, and a redesigned sag liner package. Despite throughput constraints, fourth quarter milled copper grades were 18% higher than the third quarter, driven by higher grades in ore mined. Copper recoveries improved to 78%, and gold recoveries saw a 7% increase over the third quarter. While the primary sag mill continues to operate under a reduced load, it is being rigorously monitored ahead of a feed-end head replacement in mid-2026. The mill remains on track to achieve its permitted capacity of 50,000 tons per day in the second half of 2026. British Columbia cash costs and sustaining cash costs were higher than the prior quarter, largely driven by the ramp-up of mining activities advancing the accelerated stripping program combined with the impact of lower production and byproduct credits due to the lower mill availability. Despite the headwinds in the second half of 2025, the business unit demonstrated strong cost discipline, enabling the operations to achieve the full-year cash cost guidance range. I'm now going to turn it over to Eugene Lee to introduce our capital allocation framework. Eugene.