HBM Sells 30% Stake in Copper World to Mitsubishi for $600M
Copper World is one of the highest-grade open-pit copper projects in the Americas, boasting proven and probable reserves of 385 million tons at 0.54% copper. Securing Mitsubishi as a 30% partner for Copper World will help HBM advance the project toward sanctioning and help unlock significant value in its copper growth portfolio. Notably, Mitsubishi is the strategic partner and has investments in some of the world's large and high-quality copper assets.
Mitsubishi's $600 million initial investment will consist of $420 million at closing and $180 million within 18 months of closing. Mitsubishi will also fund its pro-rata 30% share of future equity capital contributions. This strategic deal will sharply reduce Hudbay Minerals' upfront funding needed to develop the project.
HBM Secures Additional Value Through Wheaton Stream Amendment
Hudbay Minerals has also amended the existing precious metals streaming agreement with Wheaton Precious Metals WPM for 100% of the gold and silver produced at Copper World. In addition to the initial $230 million stream deposit, the revised deal with Wheaton provides an additional contingent payment of up to $70 million on a future potential mill expansion. Also, ongoing payments for gold and silver have been amended from fixed pricing to 15% of spot prices, giving HBM upside exposure to precious metals prices.
The combined impact of the Mitsubishi investment, pro-rata contributions and the amended Wheaton stream is expected to reduce Hudbay Mineral's estimated share of remaining capital requirements to around $200 million, while deferring its first capital outlay until 2028.
Copper World Poised to be a Key Growth Driver for HBM
Hudbay Minerals plans to advance Copper World toward a sanction decision in 2026. Feasibility study for Copper World is underway with expected completion of a definitive feasibility study by mid-2026.
The mine is expected to produce 85,000 tons copper annually over an initial 20-year mine life. Once in production, Copper World is expected to boost Hudbay Mineral's consolidated copper output by more than 50%.
Hudbay Minerals Delivers Solid Q2 Results
HudBay Minerals reported second-quarter 2025 earnings of 19 cents per share compared with break-even earnings per share a year ago. This was driven by higher gross margins and cost control.
The company reported revenues of $536.4 million, 26% higher than last year. Consolidated copper production was 29,956 tons and gold production was 56,271 ounces. The figures came in lower than the first quarter of 2025 due to the impacts of a temporary suspension of operations in Manitoba as a result of mandatory wildfire evacuation orders.
HBM, however, maintained its 2025 consolidated production guidance of 117,000-149,000 tons of copper and 247,500-308,000 ounces of gold.
A Quick Look at a Peer's Q2 Performance
Freeport-McMoRan Inc. FCX reported adjusted earnings per share of 54 cents in the second quarter, a 17% increase year over year.
Freeport-McMoRan's revenues rose roughly 14.5% year over year to $7,582 million. Copper production fell around 7.1% year over year to 963 million pounds in the reported quarter.
For full-year 2025, Freeport-McMoRan projects consolidated sales volumes at around 3.95 billion pounds of copper, 1.3 million ounces of gold and 82 million pounds of molybdenum.
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This article originally published on Zacks Investment Research (zacks.com).
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