Emerson

Emerson Sosa asked about the pecking order of Hudbay's various projects, including New Ingerbelle, 1901 Deposit, and Mason, beyond the priority of Copper World. He also questioned if the Copper World concentrator leach facility could be accelerated and how the ramp-up of production from 1901 and Talbot might impact Manitoba's asset economics and all-in cash costs.

Answer

President and CEO Peter Kukielski, COO Andre Lauzon, and CFO Eugene Lei confirmed Copper World as the top priority, but noted that a strong balance sheet allows for investment in high-return projects across all business units. Peter Kukielski stated that the concentrator leach facility could be considered for acceleration but not during main mine construction. He also indicated that Manitoba's All-in Sustaining Costs are expected to remain around $1,200/ounce due to existing infrastructure.

Emerson Sosa asked about the pecking order of Hudbay's projects beyond Copper World, including New Ingerbelle, 1901 Deposit, and Mason. He also inquired if the Copper World concentrator leach facility, originally planned for 2032, could be brought forward given copper's critical mineral status. Finally, he asked how the economic profile and all-in cash costs of the Manitoba asset might change with increased production from 1901, Talbot, and other deposits.

Answer

President and CEO Peter Kukielski stated that Copper World is the clear priority, but Hudbay has capital for lowest risk-adjusted return projects at each business unit, including New Ingerbelle in British Columbia, pebble crushing in Peru, and various initiatives in Manitoba. He indicated that Manitoba's all-in sustaining costs are targeted to remain around $1,200 per ounce due to existing infrastructure. Regarding the Copper World leach facility, Peter Kukielski said it would be considered for earlier implementation but not during initial mine construction to avoid diverting the project team. CFO Eugene Lei confirmed that the 2026 growth capital budget already includes funding for these various projects.

Emerson Zou of Goldman Sachs asked for the rationale behind entering the Bitcoin mining industry, whether the transactions are subject to regulation, and if Cango has plans to sell its Bitcoin holdings.

Answer

Executive Jiayuan Lin explained the move into Bitcoin mining was driven by a positive outlook on the cryptocurrency's future and its potential to utilize surplus electricity, a discovery made while exploring other energy projects. Lin clarified the $400 million acquisition was an offshore transaction not subject to Chinese regulation. He stated the current strategy is to 'mine and hold' Bitcoin to optimize the financial model, though they remain open to adjusting holdings based on market conditions.

Emerson from Goldman Sachs questioned the rationale behind the lowered revenue guidance and asked how management balances long-term strategic goals with short-term financial pressures.

Answer

Executive Jiayuan Lin stated the reduced guidance reflects a strategic scaling back of certain operations to reallocate resources and cut costs in response to market conditions. He elaborated that the company balances short- and long-term objectives through an integrated planning process, focusing on immediate execution efficiency and cost control while maintaining strategic flexibility to adapt to market changes.