Hudbay Minerals Maintained at Outperform Rating With a $14.50 Price Target at National Bank of Canada

11:10 AM EDT, 06/17/2025 (MT Newswires) -- National Bank of Canada maintained its outperform rating and $14.50 price target on the shares of Hudbay Minerals (HBM) after the miner restarted its Manitoba operations that were suspended due to wildfires.

Hudbay on Monday said it resumed operations at its Snow Lake complex in the province after the lifting of evacuation orders for the region on June 14. The company suspended the mine on June 4 given the precautionary early evacuation notice for the town of Snow Lake.

National Bank said Hudbay remains well-positioned to achieve its annual guidance metrics for 2025 given the strong performance at Snow Lake.

Given the 11 days of lost production, the bank estimated an EBITDA impact of about US$10 million or 3.7% on its current second-quarter EBITDA estimate of US$275.3 million.

"HBM remains one of the more leveraged names to gold prices among its base metal peers," National Bank said. "Despite a modest impact on Q2 production from reduced operating activity in Manitoba, there was no critical impact on the company's infrastructure or guidance."

"We continue to anticipate strong gold production from the region throughout 2025, anticipate incremental expansion initiatives at Copper Mountain and Constancia to support improvements to an already stable three-year production outlook, see additional cash generation from Copper World given the JV process continues to advance and a discounted valuation all support our outperform rating," the bank added.

Price: 13.54, Change: -0.04, Percent Change: -0.33

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