Latest news with #CopperWorld
Yahoo
a day ago
- Business
- Yahoo
HBM Sells 30% Stake in Copper World to Mitsubishi for $600M
Hudbay Minerals Inc. HBM has entered into a joint venture agreement with Mitsubishi Corporation MSBHF that will help advance its Copper World project in Arizona. Under the agreement, Mitsubishi will acquire a 30% minority stake for an initial cash contribution of $600 million. 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report HudBay Minerals Inc (HBM) : Free Stock Analysis Report Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report Mitsubishi Corp. (MSBHF) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
a day ago
- Business
- Yahoo
Hudbay Minerals Inc (HBM) Q2 2025 Earnings Call Highlights: Strong Cash Flow and Strategic ...
Release Date: August 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Hudbay Minerals Inc (NYSE:HBM) reported significant free cash flow generation for the eighth consecutive quarter, driven by strong copper and gold production and cost control. The company announced a minority joint venture agreement with Mitsubishi Corporation for the Copper World project, enhancing financial strength and reducing funding requirements. Hudbay Minerals Inc (NYSE:HBM) achieved industry-leading cost performance with consolidated cash costs of 2 cents per pound and sustaining cash costs of $1.65 per pound. The company successfully repurchased and retired $50 million of senior unsecured notes, further reducing total debt and improving the leverage ratio to 0.4 times. Hudbay Minerals Inc (NYSE:HBM) reaffirmed its full-year consolidated production guidance for all metals and improved its cost guidance range for 2025. Negative Points Consolidated gold production was lower than the first quarter due to wildfire impacts in Manitoba. Protests in Peru temporarily impacted the transportation of supplies and concentrate, affecting mine sequencing. The Manitoba operations faced disruptions from mandatory wildfire evacuation orders, resulting in lower production in June. The Copper Mountain operations in British Columbia experienced lower copper and silver production due to lower head grades from stockpiled ore. There is potential for modest increases in initial capital expenditures for the Copper World project due to an inflationary cost environment. Q & A Highlights Warning! GuruFocus has detected 8 Warning Sign with HBM. Q: Will Mitsubishi be allowed commercial offtake in proportion to their 30% stake, and is there potential to bring forward the concentrate leach facility? A: Peter Kukilski, CEO: Yes, Mitsubishi will have rights to 30% offtake consistent with their ownership share. The potential to bring forward the concentrate leach facility will be studied in the feasibility study, and it is a possibility. Q: With the leverage ratios and cash flow generating power, is there a possibility to forego project financing? A: Eugene Lee, CFO: The JV proceeds and capital contributions from Mitsubishi cover over 50% of the project capital. A light version of project-level financing is manageable and helps optimize equity returns for Hudbay and Mitsubishi. Q: Has there been any discussion with the US administration about moving forward with the Rosemont part sooner than phase two? A: Peter Kukilski, CEO: We are focused on phase one of Copper World, which is fully permitted. While the federal environment is constructive, we are not currently discussing phase two. Q: Are there any major scope changes in the feasibility study compared to previous studies? A: Peter Kukilski, CEO: No major scope changes are foreseen in the current feasibility study. An expansion after production is contemplated but not part of the current study. Q: How does the project financing structure work for Copper World? A: Eugene Lee, CFO: The first funding comes from the JV partner's proceeds, followed by the Wheaton stream. Project financing will be arranged at the time of sanctioning, with Hudbay and Mitsubishi's equity contributions coming last. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
NHK
2 days ago
- Business
- NHK
Mitsubishi to invest $600 mil. in US copper mine project
Japan's Mitsubishi Corporation said on Thursday it would spend 600 million dollars to buy a 30 percent stake in a copper mine project in the United States. The move came after the Trump administration recently hiked tariffs on copper products. The trading house said it reached the deal with the project's Canadian owner, Hudbay Minerals. The venture is called Copper World and is being developed in outside Tucson, Arizona. The two firms plan to start mining around 2029, with an anticipated output of as much as 100,000 tons per year. The US is the second-largest consumer of copper in the world. Mitsubishi said it expected demand to increase in the country, citing its rising population, the growing power needs in the AI industry, and the shift to electrification. President Donald Trump slapped 50 percent levies on some copper goods in August. They targeted semi-finished products like wires and pipes, as well as copper-intensive items such as cables and electrical components. The White House said the duties were aimed at boosting domestic copper production.
&w=3840&q=100)
Business Standard
3 days ago
- Business
- Business Standard
Mitsubishi to invest $600 million for 30% stake in US copper mine project
Mitsubishi Corporation will invest $600 million in a copper mining project in Arizona, marking its first US copper mine stake in 45 years, the company announced on Thursday. This comes as the United States, under President Donald Trump, implements steep import tariffs on semi-finished copper products. The transaction includes $420 million for the equity stake and $180 million as a matching contribution toward development costs. The Japanese trading and investment company will acquire a 30 per cent interest in the Copper World project from Canada's Hudbay Minerals. The partners plan to complete a definitive feasibility study and make a final investment decision around 2026, with operations expected to start in 2029. Arizona accounts for roughly 70 per cent of US copper mine production and offers strong access to infrastructure, the company said. The open-pit mine, near Tucson, has permits in place and is expected to produce about 100,000 tonnes annually at peak for around 20 years, with potential for expansion. Project overview Mining method: Open pit Ore reserves*: 2 Mt Resource estimate**: 5 Mt Production begins: Around 2029 Max annual production: 100,000 tonnes (approx) Life of mine: 20 years (potential for further expansion) *Economically mineable part of resources **Total quantity of minerals confirmed through geological surveys [Source: Mitsubishi Corp] Copper demand to grow 31MT by 2030 According to the International Energy Agency, global copper demand, including recycled sources, is expected to increase to 31 million tonnes by 2030, up from 27 million tonnes in 2024, with supply projected at 28 million tonnes. Copper is used in batteries, cables and motors for electric vehicles, as well as renewable energy facilities and data centres. The US accounts for 6 per cent of global copper demand, second only to China's 57 per cent, but has limited smelting capacity, which could prompt the partners to consider adding refining facilities in later years. US announces 50 per cent tariff on copper On July 30, the White House announced a 50 per cent tariff on imports of semi-finished copper and copper-based products, effective August 1. The order said copper imports threaten to impair US national security. Refined copper that has not been made into wiring, sheet, or other products will be exempt. India exported copper products worth $360 million to the US in the financial year that ended on March 31, 2025, including plates, tubes, and other semi-finished forms. The country is a net importer, with copper imports of $14.45 billion in 2024–25, mainly from Chile, Indonesia, and Australia. Mitsubishi operates copper mines in Peru, Chile Mitsubishi also has interests in two operating copper mines in Peru and three in Chile, producing 329,000 tonnes in 2024, the largest among Japanese companies, according to a report by Nikkei Asia. The Arizona project could add up to 30,000 tonnes annually, raising output by nearly 10 per cent. This would contribute to its goal of exceeding 400,000 tonnes by 2030.
Toronto Star
3 days ago
- Business
- Toronto Star
Hudbay Minerals sells Copper World stake, reports Q2 results, shares up
TORONTO - Shares of Hudbay Minerals Inc. soared higher after it announced a deal to sell a 30 per cent stake in its Copper World project in Arizona to Mitsubishi and reported its second-quarter results. The company says Mitsubishi has committed to investing US$600 million, including US$420 million for a 30 per cent equity interest in the project at closing and US$180 million within 18 months of closing.
