Hudbay Minerals (TSX, NYSE: HBM) has increased forecast life-of-mine gold production at its Snow Lake operations in Manitoba, Canada, by about 60% to 2.8 million ounces under an enhanced mine plan.
The new forecast compares with 1.8 million oz in Hudbay’s 2021 technical report, while higher proven and probable reserves extend the operation’s mine life by two years to 2043.
Hudbay expects Snow Lake to produce an average of 185,000 oz. of gold annually from 2026 through 2030, supported by strong throughput at the New Britannia mill and higher recoveries at the Stall operation.
The updated plan represents a 37% increase in production over the five-year period, adding about 250,000 oz. compared with the previous plan.
“The strong margins and steady gold production will ensure Snow Lake continues to be a meaningful free cash flow contributor and provide complementary gold exposure for Hudbay,” CEO Peter Kukielski said.
The expanded plan reinforces Snow Lake’s transformation from a zinc-focused operation into a significant source of gold for Hudbay, providing diversification as the company advances its copper growth pipeline.
Stronger margins
Hudbay forecasts average gold cash costs of $821 per oz. from 2026 through 2030, with sustaining cash costs averaging $1,379 per oz. over the same period.
The company says those costs should allow Snow Lake to maintain strong operating margins while contributing free cash flow to support its broader portfolio.
“Transitioning this operation from a zinc-rich operation to a leading Canadian gold operation over the last five years has been transformative for Hudbay and we look forward to sustainable production in the decades ahead,” Kukielski said.
Source: https://www.mining.com/hudbay-lifts-snow-lake-gold-output-estimate-by-60/
