Hudbay Minerals Maintained at Outperform by National Bank of Canada

10:45 AM EDT, 07/11/2025 (MT Newswires) -- Hudbay Minerals (HBM) maintained its outperform rating and $16.50 price target at National Bank of Canada.

The price target is derived from a multiple of 1.10x NAV (50%) + 7.0x EV/2026 CF (50%), National Bank of Canada said in a note published on Thursday.

Hudbay recently announced the suspension of the Snow Lake operation in Manitoba due to wildfires. The miner expects to resume operation once the wildfire situation improves. The company did not revise its annual production guidance metrics despite the disruption.

National Bank estimated an EBITA impact of US$11 million per week from the stoppage at Snow Lake, or 3.3% on its current Q3/25 EBITDA estimate of US$323 million.

"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," National Bank said. "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, to see additional cash generation from Copper World given the JV process continues to advance and a discounted valuation, which all support our Outperform rating."

Hudbay traded 3.3% lower at $14.2 per share at last look Friday on the TSX.

Price: 14.28, Change: -0.45, Percent Change: -3.05

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