Hudbay Minerals Inc. HBM announced that its Copper World project received an Air Quality Permit  from the Arizona Department of Environmental Quality. This marks the final major permit Hudbay Minerals needed for the development and operation of its project in Arizona. HBM expects the project to generate 85,000 tons of copper per year over an initial 20-year mine life.

Details on Hudbay Minerals’ Copper World Project

HBM’s fully-owned Copper World project located in Pima County is expected to boost the company’s consolidated annual copper production by 50%. The project will enhance the company’s presence in the U.S. market as the project’s Made-in-America copper cathode is likely to be sold entirely to domestic U.S. customers. This is expected to make Hudbay Minerals’ project the third-largest cathode producer  in the United States. The project is expected to generate 400 direct jobs and up to 3,000 indirect jobs in Arizona.

Hudbay Minerals secured the three necessary state permits for the project — the Mined Land Reclamation Plan, the Aquifer Protection Permit, and the Air Quality Permit .

The company planned $1.7 billion in capital investment to develop Copper World and expects to commence a minority joint venture partner process for the project in early 2025.

HBM’s Q3 Performance

Hudbay Minerals reported third-quarter 2024 earnings of 13 cents per share, beating the Zacks Consensus Estimate of 5 cents. The company posted earnings of 7 cents a year ago.

HBM posted revenues of $485.8 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate of $468 million. The top line grew 1.3% year over year. 

The company recorded $840 million in adjusted EBITDA and lowered its net debt by $506 million for the 12 months ending Sept. 30, 2024. HBM’s net debt to adjusted EBITDA ratio is currently at 0.7X. This improved balance sheet will help the company progress toward its financial goals and finance the project.

Hudbay Minerals Stock’s Price Performance

Shares of the Hudbay Minerals have risen 58.4% in the past year against the industry's 19.5% decline.

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HBM's Zacks Rank & Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, Fortuna Mining Corp. FSM and Equinox Gold Corp. EQX. CRS sports a Zacks Rank #1 (Strong Buy) at present, and FSM and EQX carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology has an average trailing four-quarter earnings surprise of 14.1%. The Zacks Consensus Estimate for CRS’s fiscal 2025 earnings is pegged at $6.61 per share. Its shares skyrocketed 162.7% last year.

Fortuna Mining has an average trailing four-quarter earnings surprise of 53.6%. The Zacks Consensus Estimate for FSM’s 2024 earnings is pegged at 48 cents per share. FSM’s shares gained 26.5% last year.

Equinox Gold has an average trailing four-quarter earnings surprise of 39.2%. The Zacks Consensus Estimate for EQX’s 2024 earnings is pegged at 43 cents per share. EQX’s shares gained 9.6% last year.

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