Hudbay lifts Snow Lake gold output estimate by 60%
Longer mine life and stronger recoveries position the Manitoba operation to generate steady free cash flow through 2043.
Hudbay Minerals has raised its forecast for gold production at the Snow Lake operation in Manitoba, Canada, by approximately 60% to 2.8 million ounces. This revised estimate, part of an enhanced mine plan, surpasses the 1.8 million ounces projected in Hudbay's 2021 technical report. The extended mine life has been extended by two years to 2043 due to increased proven and probable reserves.
Hudbay anticipates the Snow Lake operation to yield an average of 185,000 ounces of gold per year from 2026 to 2030. This forecast is underpinned by robust throughput at the New Britannia mill and improved recoveries at the Stall operation, resulting in a 37% increase in production over the five-year period compared to the previous plan.
The enhanced plan highlights Snow Lake's transformation from a zinc-focused operation to a significant gold contributor, providing diversification as Hudbay advances its copper growth pipeline.
CEO Peter Kukielski emphasized that strong margins and consistent gold production will ensure Snow Lake remains a key free cash flow contributor, offering complementary gold exposure for Hudbay. The company forecasts average gold cash costs of $821 per ounce from 2026 to 2030, with sustaining cash costs averaging $1,379 per ounce over the same period.
These favorable costs are expected to maintain strong operating margins and free cash flow to support the broader portfolio. Kukielski expressed optimism about the operation's transition and the sustainability of production for decades to come.
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