Hudbay Minerals Plans Share Buyback to Enhance Value for Shareholders
Hudbay Receives TSX Approval for Normal Course Issuer Bid
Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM) has recently secured approval from the Toronto Stock Exchange (TSX) to initiate a normal course issuer bid (NCIB) for its common shares. This move reflects the company's commitment to enhancing shareholder value by repurchasing shares in line with applicable regulations.
Details of the Normal Course Issuer Bid
The approved NCIB permits Hudbay to repurchase up to 19,751,983 shares, marking 5% of its issued and outstanding shares as of May 22, 2025. This strategic decision comes as the company aims to provide shareholders with a means for capital return while managing the fluctuating market conditions.
Understanding the Repurchase Strategy
The repurchase process will adhere to the guidelines established by the TSX and will be conducted through open market transactions. It is crucial to note that the timing and quantity of shares bought back will depend significantly on various factors such as market trends, share prices, and available capital.
Limits and Conditions on Share Purchases
Within the scope of the NCIB, Hudbay will be limited to a daily purchase cap of 425,832 shares, equivalent to 25% of the average daily trading volume over the past six months. This structure ensures that the buyback process is managed effectively without disrupting market dynamics. Notably, the company is also authorized to undertake one significant block purchase each week that exceeds these limits.
Duration of the Buyback Program
The company anticipates commencing share repurchases around May 30, 2025, extending through May 29, 2026, or until all authorized shares have been repurchased. Each share buyback will result in immediate cancellation, effectively reducing the total number of outstanding shares and potentially uplifting share value.
Why Hudbay Chose to Implement the NCIB
Hudbay's management believes that at times, the market price of its shares may not accurately reflect the intrinsic value and future prospects of the business. Therefore, the company sees the buyback as a prudent use of capital, benefitting shareholders by enhancing their investment value.
Company Overview and Growth Prospects
Hudbay, listed on both the TSX and NYSE under the ticker HBM, is a leading mining company focused on copper and other critical minerals. The company operates three major mines and has an extensive pipeline of copper growth projects spanning key regions in Canada, Peru, and the United States. Their primary operations consist of the Constancia mine, the Snow Lake operations, and the Copper Mountain mine, with notable outputs in copper, gold, and by-products such as zinc and silver.
Sustainable Practices and Community Engagement
Hudbay is committed to responsible mining and sustainable development. The company aligns its operations with a purpose-driven approach, aiming to create positive impacts within the communities they operate. Their mission emphasizes the importance of social responsibility, focusing on environmental stewardship and community relationships as core components of their business model.
Contact Information
For additional information, investors and stakeholders can reach out to:
Candace Brûlé
Vice President, Investor Relations, Financial Analysis and External Communications
(416) 814-4387
investor.relations@hudbay.com
Frequently Asked Questions
What is the purpose of Hudbay's normal course issuer bid?
The NCIB is designed to allow Hudbay to repurchase shares to enhance shareholder value when market prices may not reflect the true potential of the company.
How many shares can Hudbay repurchase under the NCIB?
Hudbay is authorized to acquire up to 19,751,983 shares, which constitutes 5% of its total outstanding shares.
When will the buyback program start?
The share buybacks are expected to commence around May 30, 2025.
What factors influence when and how many shares Hudbay will buy back?
Management will consider market conditions, share prices, and the company's available cash resources to determine the timing and amount of share repurchases.
How does Hudbay plan to fund the share buybacks?
The company intends to fund the purchases using its cash reserves and cash flow from operations.
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