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TORONTO - Hudbay Minerals Inc. (TSX, NYSE:HBM), a mining company with a market capitalization of $3.89 billion and showing strong financial health according to InvestingPro analysis, announced Wednesday that Mitsubishi Corporation will acquire a 30% interest in the Copper World project in Arizona for an initial cash contribution of $600 million. The company’s stock has delivered an impressive 21.73% return year-to-date, reflecting investor confidence in its growth strategy.
The transaction includes $420 million for the equity stake at closing and $180 million as a matching contribution within 18 months. The deal is subject to customary closing conditions and expected to close in late 2025 or early 2026. With a healthy current ratio of 2.32, InvestingPro data shows Hudbay’s liquid assets comfortably exceed its short-term obligations, positioning the company well for this significant investment.
The fully-permitted Copper World project is projected to produce approximately 85,000 tonnes of copper annually over a 20-year mine life. The development represents a $1.5 billion investment in the U.S. critical minerals supply chain and is expected to create more than 1,000 jobs during construction, with 400 direct jobs and up to 3,000 indirect jobs once in full production.
"Securing Mitsubishi as a 30% partner in Copper World is an important milestone for Hudbay as we establish a long-term strategic partnership to advance this high-quality copper project towards sanctioning," said Peter Kukielski, Hudbay’s President and Chief Executive Officer.
The partnership significantly reduces Hudbay’s financial commitment, with the company’s estimated share of remaining capital contributions decreasing to approximately $200 million based on pre-feasibility study estimates. Hudbay’s first capital contribution is deferred until 2028 at the earliest.
Hudbay also announced it has agreed on terms with Wheaton Precious Metals Corp. to amend their existing precious metals streaming agreement, which includes an additional contingent payment of up to $70 million on a future potential mill expansion.
The definitive feasibility study for Copper World is underway with expected completion by mid-2026, positioning the project for a potential sanction decision that year.
Based on the press release statement, the Copper World project has proven and probable mineral reserves of 385 million tonnes at 0.54% copper, making it one of the highest-grade open pit copper projects in the Americas. With revenue growth of 8.92% in the last twelve months and a strong financial health score from InvestingPro, Hudbay demonstrates robust operational execution. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Hudbay Minerals Inc. has temporarily suspended operations at its Snow Lake site in northern Manitoba due to mandatory wildfire evacuation orders. The company is working closely with local authorities to ensure the safety of its employees and has implemented emergency preparedness procedures. While Hudbay initially planned to maintain reduced production levels, the continued spread of the wildfires necessitated a complete temporary shutdown. The company has confirmed that essential personnel authorized by emergency services will remain on site to assist with emergency activities. Hudbay has stated that its infrastructure and facilities face a low risk of damage from the fires. In other developments, Hudbay’s recent annual shareholders’ meeting resulted in the election of all nine nominated directors with overwhelming support. John E.F. Armstrong and Peter Kukielski received the highest approval, with 99.83% of votes in favor. The lowest approval rating was 98.54%, secured by Colin Osborne.
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