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Is Hudbay Building America's Next Critical Minerals Giant?
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Key Takeaways
HBM's Copper World in Arizona gains $600 million funding and 30% backing from Mitsubishi.
HBM's Phase 1 aims to produce 85,000 tons of copper annually and create over 4,000 jobs in Arizona.
Set to start in 2026, HBM's Copper World could become the first major new U.S. copper mine of the decade.
Hudbay Minerals’ (HBM - Free Report) Copper World project in Arizona is fast emerging as a potential cornerstone of U.S. copper independence — and, by extension, energy security. The project’s trajectory fits neatly with Washington’s “Made in America” industrial push, aimed at reshoring supply chains critical to the energy transition and defense manufacturing.
Under a new joint venture with Mitsubishi Corporation, Hudbay has secured a 30% equity partner and $600 million in funding for the fully permitted Phase 1 of Copper World. Once operational, the mine is expected to produce 85,000 tons of copper annually over a 20-year life, creating roughly 1,000 construction jobs and more than 3,000 indirect positions in Arizona. The partnership is positioned not merely as a mining venture, but as a strategic initiative reinforcing U.S. industrial resilience. Hudbay CEO Peter Kukielski called the project “Made in America copper,” highlighting its role in strengthening domestic supply chains for clean energy technologies, electric vehicles, and defense applications. With copper deemed a critical mineral by U.S. policymakers, Copper World’s contribution could help reduce reliance on imports from politically unstable regions.
The project’s pathway appears unusually streamlined — Phase 1 sits entirely on Hudbay’s private land, insulating it from the federal hurdles that have long plagued U.S. mine development. Still, Copper World’s success will hinge on maintaining bipartisan goodwill and navigating an increasingly activist regulatory environment.
Hudbay has set a target for sanctioning Copper World in 2026, following which it could become the first major new U.S. copper mine of the decade — a milestone for both the company and America’s broader industrial policy agenda.
Peer Updates
Ero Copper’s (ERO - Free Report) third quarter reflected strong operational turnaround and clear strategic execution across its Brazilian copper and gold assets. Ero Copper’s focus on optimization, mechanization and deleveraging is paying off. At the Caraíba complex, debottlenecking boosted mill throughput to record highs, while Tucumã delivered a 19% production increase as the ramp-up advanced toward nameplate capacity.
Xavantina’s mechanization drove a 17% rise in gold output, complemented by the commercialization of high-grade gold concentrate stockpiles — a key cash-generation lever. Ero Copper is also advancing exploration at Furnas, targeting new copper growth. Its 2025 strategy to stabilize, deleverage, and expand has repositioned Ero Copper as one of Brazil’s most efficient mid-tier miners.
NexGen Energy’s (NXE - Free Report) strategy focuses on developing Rook I into one of the world’s most advanced uranium projects amid surging global nuclear demand. With CAD 1.2 billion in cash and federal approvals nearing, NexGen is construction-ready and well-funded for its next phase. The company has secured multiple long-term offtake agreements with utilities and is negotiating further deals that could include prepayment financing, illustrating its integrated commercial strategy. Concurrently, exploration at Patterson Corridor East is expanding resource potential beyond Arrow, reinforcing long-term optionality. NexGen’s disciplined execution, strong indigenous partnerships, and global financing base position it as a cornerstone supplier in the West’s nuclear fuel chain.
HBM’s Price Performance, Valuation and Estimates
Shares of HBM have surged 104.8% in the year-to-date period compared with 25.2% increase for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Hudbay trades at a forward price-to-sales ratio of 2.76, above the industry average. It is also higher than its five-year median of 1.14. HBM carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Hudbay’s 2025 earnings implies a 72.9% rise from the year-ago period’s level.
Image: Bigstock
Is Hudbay Building America's Next Critical Minerals Giant?
Key Takeaways
Hudbay Minerals’ (HBM - Free Report) Copper World project in Arizona is fast emerging as a potential cornerstone of U.S. copper independence — and, by extension, energy security. The project’s trajectory fits neatly with Washington’s “Made in America” industrial push, aimed at reshoring supply chains critical to the energy transition and defense manufacturing.
Under a new joint venture with Mitsubishi Corporation, Hudbay has secured a 30% equity partner and $600 million in funding for the fully permitted Phase 1 of Copper World. Once operational, the mine is expected to produce 85,000 tons of copper annually over a 20-year life, creating roughly 1,000 construction jobs and more than 3,000 indirect positions in Arizona. The partnership is positioned not merely as a mining venture, but as a strategic initiative reinforcing U.S. industrial resilience. Hudbay CEO Peter Kukielski called the project “Made in America copper,” highlighting its role in strengthening domestic supply chains for clean energy technologies, electric vehicles, and defense applications. With copper deemed a critical mineral by U.S. policymakers, Copper World’s contribution could help reduce reliance on imports from politically unstable regions.
The project’s pathway appears unusually streamlined — Phase 1 sits entirely on Hudbay’s private land, insulating it from the federal hurdles that have long plagued U.S. mine development. Still, Copper World’s success will hinge on maintaining bipartisan goodwill and navigating an increasingly activist regulatory environment.
Hudbay has set a target for sanctioning Copper World in 2026, following which it could become the first major new U.S. copper mine of the decade — a milestone for both the company and America’s broader industrial policy agenda.
Peer Updates
Ero Copper’s (ERO - Free Report) third quarter reflected strong operational turnaround and clear strategic execution across its Brazilian copper and gold assets. Ero Copper’s focus on optimization, mechanization and deleveraging is paying off. At the Caraíba complex, debottlenecking boosted mill throughput to record highs, while Tucumã delivered a 19% production increase as the ramp-up advanced toward nameplate capacity.
Xavantina’s mechanization drove a 17% rise in gold output, complemented by the commercialization of high-grade gold concentrate stockpiles — a key cash-generation lever. Ero Copper is also advancing exploration at Furnas, targeting new copper growth. Its 2025 strategy to stabilize, deleverage, and expand has repositioned Ero Copper as one of Brazil’s most efficient mid-tier miners.
NexGen Energy’s (NXE - Free Report) strategy focuses on developing Rook I into one of the world’s most advanced uranium projects amid surging global nuclear demand. With CAD 1.2 billion in cash and federal approvals nearing, NexGen is construction-ready and well-funded for its next phase. The company has secured multiple long-term offtake agreements with utilities and is negotiating further deals that could include prepayment financing, illustrating its integrated commercial strategy. Concurrently, exploration at Patterson Corridor East is expanding resource potential beyond Arrow, reinforcing long-term optionality. NexGen’s disciplined execution, strong indigenous partnerships, and global financing base position it as a cornerstone supplier in the West’s nuclear fuel chain.
HBM’s Price Performance, Valuation and Estimates
Shares of HBM have surged 104.8% in the year-to-date period compared with 25.2% increase for the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, Hudbay trades at a forward price-to-sales ratio of 2.76, above the industry average. It is also higher than its five-year median of 1.14. HBM carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Hudbay’s 2025 earnings implies a 72.9% rise from the year-ago period’s level.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.