Hudbay Announces Second Quarter 2022 Results |

Hudbay Minerals Inc. ("Hudbay" or the "company") (TSX, NYSE:HBM) today released its second quarter 2022 financial results. All amounts are in U.S. dollars, unless otherwise noted.

Strong Operating and Financial Results

"Our operating performance was strong during the second quarter with higher consolidated copper and gold production and lower consolidated cash costs," said Peter Kukielski, President and Chief Executive Officer. "This was a result of a continuous focus on operating efficiencies which has allowed us to reaffirm our production and operating cost guidance for 2022. We have seen steady performance from our operations in Peru and the New Britannia mill in Manitoba achieved higher than expected throughput. We are advancing a pre-feasibility study to evaluate project optimization opportunities on the private land plan at our Copper World Complex, and we have been focused on closure activities in Flin Flon and a smooth transition of our workforce to Snow Lake."

1 The preliminary economic assessment for the Copper World Complex is preliminary in nature, includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty the preliminary economic assessment will be realized.

Summary of Second Quarter Results

Consolidated copper production in the second quarter of 2022 was 25,668 tonnes, an increase of 4% compared to the first quarter of 2022 and in line with expected quarterly cadence for the year. Consolidated gold production was 58,645 ounces, an increase of 9% compared to the previous quarter due to higher gold grades in Peru and higher gold output from New Britannia. Consolidated zinc production in the second quarter was 23% lower than the first quarter primarily due to lower tonnes and grades at 777 as the mine approached the end of its mine life and the continued transition toward mining the gold lenses at Lalor with a corresponding decrease of production from the base metal zones.

Consolidated cash cost per pound of copper produced, net of by-product credits i , in the second quarter of 2022 was $0.65, compared to $1.11 in first quarter of 2022. This improvement was a result of higher zinc and gold by-product credits and higher copper production. Consolidated sustaining cash cost per pound of copper produced, net of by-product credits i , was $1.87 in the second quarter of 2022 compared to $2.29 in the first quarter. This decrease was primarily due to the same reasons affecting consolidated cash cost. Both measures were within the 2022 guidance ranges and the company is reaffirming its full year consolidated cash cost guidance. Consolidated all-in sustaining cash cost per pound of copper produced, net of by-product credits i , was $1.93 in the second quarter of 2022, lower than $2.54 in the first quarter of 2022, due to the same reasons outlined above along with lower corporate selling and administrative expenses.

Cash generated from operating activities in the second quarter of 2022 increased to $165.6 million compared to $63.3 million in the first quarter of 2022. The increase is primarily the result of an increase in non-cash working capital, higher realized zinc metal prices and higher copper, gold and zinc sales volumes. Operating cash flow before change in non-cash working capital increased to $123.9 million during the second quarter of 2022, compared to $77.1 million in the first quarter of 2022, primarily due to the same factors above.

Net earnings and earnings per share in the second quarter of 2022 were $32.1 million and $0.12, respectively, compared to net earnings and earnings per share of $63.8 million and $0.24, respectively, in the first quarter. Second quarter earnings benefited from a non-cash gain of $60.7 million mostly related to the quarterly revaluation of the Flin Flon environmental provision, which was impacted by rising long term risk-free discount rates. Given the long-term nature of the reclamation cash flows, the related environmental provision is highly sensitive to changes in long-term risk-free discount rates and, as such, Hudbay may continue to experience quarterly environmental provision revaluations. The quarterly financial results were also negatively impacted by $95.0 million pre-tax impairment loss related to certain specific capitalized costs and assets associated with the previous stand-alone development plan for the Rosemont deposit, which were determined to no longer be recoverable.

Adjusted net earnings i and adjusted net earnings per share i in the second quarter of 2022 were $30.5 million and $0.12 per share, respectively, after adjusting for the non-cash gain related to the revaluation of the environmental provision and the specific asset impairment loss, among other items. This compares to an adjusted net earnings and adjusted net earnings per share of $5.2 million, and $0.02 per share in first quarter of 2022. Second quarter adjusted EBITDA i was $141.4 million, compared to $110.2 million in the first quarter of 2022, primarily as a result of the same factors affecting operating cash flow noted above.

As at June 30, 2022, the company's liquidity includes $258.6 million in cash as well as undrawn availability of $363.6 million under its revolving credit facilities. The company expects that current liquidity combined with cash flow from operations, particularly in the fourth quarter when production in Peru is expected to benefit from higher grades, will be sufficient to meet its liquidity needs for the foreseeable future. As such, Hudbay is well positioned to weather the volatility in commodity prices experienced during the second quarter.

1 Net debt is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release. 2 Working capital is determined as total current assets less total current liabilities as defined under IFRS and disclosed on the consolidated financial statements

1 Adjusted earnings (loss) per share and adjusted EBITDA are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release.

1 Metal reported in concentrate is prior to deductions associated with smelter contract terms. 2 Includes total payable gold and silver in concentrate and in doré sold. 3 Includes refined zinc metal and payable zinc in concentrate sold. 4 Cash cost, sustaining cash cost and all-in sustaining cash cost per pound of copper produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release. 5 Cash cost and sustaining cash cost per ounce of gold produced, net of by-product credits, were introduced in 2022 and do not have a published comparative for 2021.

1 Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled. 2 Strip ratio is calculated as waste mined divided by ore mined. 3 Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs. 4 Excludes approximately $1.3 million, or $0.16 per tonne, of COVID-related costs during the three months ended June 30, 2022, $2.3 million, or $0.32 per tonne, of COVID-related costs during the three months ended March 31, 2022 and $6.3 million, or $0.85 per tonne, during the three months ended June 30, 2021. 5 Combined unit cost, cash cost and sustaining cash cost per pound of copper produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release.

During the first quarter of 2022, the Constancia operations produced 20,880 tonnes of copper, 13,858 ounces of gold, 584,228 ounces of silver and 390 tonnes of molybdenum. Production of all metals was higher than the first quarter of 2022 due to an increase in throughput and milled grades. As previously disclosed, full year production in Peru is expected to benefit from higher grades in the fourth quarter of 2022. As such, full year production of all metals remains on track to achieve guidance ranges for 2022.

Total ore mined slightly declined in the second quarter of 2022 compared to the first quarter of 2022 due to higher amounts of waste being mined. Ore mined from Pampacancha increased in the second quarter as mining rates in the pit returned to normal productivity levels following heavy rains and delays in the water management system earlier in the year. Ore milled during the second quarter of 2022 was higher compared to the previous quarter and copper, gold and silver grades increased over the first quarter of 2022.

Combined mine, mill and G&A unit operating costs i in the second quarter of 2022 were $12.02 per tonne, lower than the first quarter of 2022 primarily due to lower milling costs and higher throughput.

Peru's cash cost per pound of copper produced, net of by-product credits i , in the second quarter of 2022 was $1.82, higher than the previous quarter primarily due to higher mining and general and administrative costs and lower by-product credits, partially offset by lower milling costs. Cash cost per pound of copper produced, net of by-product credits i , is expected to decline with higher expected copper production and contributions from precious metal by-product credits in the fourth quarter. However, full year cash cost is expected to trend towards the upper end of the 2022 guidance range, reflecting the current inflationary cost environment.

Peru's sustaining cash cost per pound of copper produced, net of by-product credits i , in the second quarter of 2022 increased to $2.62, compared to $2.27 in the first quarter, mainly due to the same factors affecting cash cost, and slightly higher sustaining capital expenditures.

1 Includes refined zinc metal sold and payable zinc in concentrate sold. 2 Includes total payable precious metals in concentrate and in doré sold. 3 Reflects combined mine, mill and G&A costs per tonne of ore milled. 4 Combined unit cost, cash cost and sustaining cash cost per ounce of gold produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release. 5 Cash cost and sustaining cash cost per ounce of gold produced were introduced in 2022 and do not have a published comparative.

During the second quarter of 2022, the Manitoba operations produced 44,787 ounces of gold, 17,053 tonnes of zinc, 4,788 tonnes of copper and 280,625 ounces of silver. Gold and silver production increased by 4% and 1%, respectively, while copper and zinc production decreased by approximately 14% and 23%, respectively, compared to the first quarter of 2022. Copper and zinc production declined due to lower grades at Lalor and 777, and precious metals production increased due to higher throughput and recoveries at the New Britannia mill. Full year production of all metals in Manitoba are on track to achieve guidance ranges for 2022.

After 18 years of steady production at the 777 mine in Manitoba, the final reserves were depleted with the last ore hoisted on June 17, 2022, consistent with the mine plan. Closure activities to safely decommission the mine commenced in the second quarter and are advancing ahead of schedule. As 777 mining activities wound down, Hudbay employees and equipment transitioned from 777 to Lalor to support Lalor's ramp-up strategy.

The company continued to advance the Lalor ramp-up strategy and remains on track to achieve 5,300 tonnes per day by the end of 2022. Hudbay also further refined the processes to separate gold and base metal ores from Lalor to optimize feed for the New Britannia and Stall mills. Metal grades form the basis of separating higher gold content ore for processing at New Britannia from base metal ore which is directed towards Stall. Lalor successfully completed planned maintenance in the second quarter to allow for increased availability in the third quarter.

Ore mined at Lalor increased by 7% in the second quarter of 2022, while production at 777 decreased as the mine approached closure in June 2022, resulting in an overall 1% decline in total ore mined in Manitoba compared to the first quarter. Mined zinc and copper grades were lower compared to the first quarter, in line with the mine plan, while precious metal grades remained relatively constant.

The New Britannia mill achieved higher than targeted throughput in the second quarter of 2022, averaging approximately 1,590 tonnes per day, due to a number of improvement initiatives aimed at increasing throughput and further improving recoveries. With the inclusion of doré, the gold and silver recoveries at the New Britannia mill have also improved significantly in relation to previous quarters. Additional improvement initiatives will continue to be advanced in the second half of 2022 to further improve gold and silver recoveries.

The combined Snow Lake mills processed 2% more ore in the second quarter compared to the first quarter of 2022, tracking the increase in Lalor's production over the same period. Stall mill recoveries were consistent with the metallurgical model for the head grades delivered. The Flin Flon concentrator consumed all available ore feed from the 777 mine in the second quarter of 2022. Last ore from 777 was processed on June 21, 2022 and closure activities to safely place the Flin Flon concentrator on long-term care and maintenance are ahead of schedule. Flin Flon mill recoveries were consistent with the metallurgical model for the head grades delivered.

Combined mine, mill and G&A unit operating costs i in the second quarter of 2022 decreased by 5% compared to the first quarter of 2022, mainly due to lower costs at 777 as the mine ceased operations during the quarter, partially offset by higher inflationary cost pressures for bulk commodities, fuel, and Lalor contractor costs. Looking ahead to the second half of 2022, the company expects combined unit operating costs to increase due to ongoing inflationary cost pressures and the removal of the lower-cost Flin Flon operations. As such, Hudbay expects the full year combined unit costs to trend towards the upper end of the 2022 guidance range.

Cash cost per ounce of gold produced, net of by-product credits i , in the second quarter of 2022 was negative $207, lower than the first quarter of 2022 and well below the 2022 guidance range as the operations benefited from higher zinc by-product credits, lower operating costs and higher gold production.

Robust Preliminary Economic Assessment Released for Copper World

In June, Hudbay released the results of the PEA of its 100%-owned Copper World Complex in Arizona, which includes the recently discovered Copper World deposits along with the Rosemont deposit. Highlights of the PEA include:

The preliminary economic assessment for the Copper World Complex is preliminary in nature, includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty the preliminary economic assessment will be realized. For additional details on the Copper World Complex PEA, please refer to the news release dated June 8, 2022 and the NI 43-101 technical report filed on July 14, 2022.

Hudbay is advancing a pre-feasibility study for Phase I of the Copper World Complex during the second half of 2022, which will focus on converting the remaining inferred mineral resources to measured and indicated and evaluating many of the project optimization and upside opportunities.

2 The valuation metrics are based on a preliminary economic assessment that includes an economic analysis of the potential viability of mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Arizona Permitting and Litigation Update

The permitting process for the Copper World Complex is expected to require state and local permits for Phase I and federal permits for Phase II. On May 23, 2022, the U.S. District Court for the District of Arizona issued a favourable ruling effectively stating that there is no obligation for the Army Corps of Engineers ("ACOE") to include Phase I of the project as part its NEPA federal review of the previous standalone Rosemont project design. Furthermore, on May 12, 2022, a decision from the 9 th Circuit Court of Appeals clarified the permitting path for Phase II, including the requirements to receive federal permits for the second phase under existing mining regulations. Hudbay expects it will be able to pursue and obtain federal permits for Phase II within the constraints imposed by the Court's decision.

On July 27, 2022, Hudbay received approval from the Arizona State Mine Inspector for its amended Mined Land Reclamation Plan ("MLRP") for the Copper World Complex. The MLRP was initially approved in October 2021 and was subsequently amended to reflect a larger private land project footprint. Hudbay expects to submit applications for the other key state-level permits for Phase I of the Copper World Complex in the second half of 2022.

On June 17, 2022, mining activities at Hudbay's 777 mine in Flin Flon, Manitoba concluded after the reserves were depleted following 18 years of steady production. The 777 deposit was a large and rich orebody and for many years was the flagship mine of Hudbay's Manitoba operations. The mine commenced production in 2004 with an initial ten-year mine life, operated steadily and successfully expanded reserves by an additional eight years. After extensive drilling in and around the mine in recent years, no new deposits were identified. The company's hydrometallurgical zinc facility in Flin Flon will also be closed after more than 25 years of successful operations. The 777 mine and the zinc plant are scheduled to be safely decommissioned by September 2022. The Flin Flon concentrator and tailings impoundment area will be shifted to care and maintenance to provide optionality should another mineral discovery occur in the Flin Flon area. Hudbay strives to achieve closure practices that align with leading standards and has developed stringent and detailed environmental plans to manage water and the remaining infrastructure and processing plants in Flin Flon.

Closure activities at the 777 mine and zinc plant have commenced and employees and equipment are transitioning to Hudbay's operations in Snow Lake, Manitoba as part of Lalor's mine ramp-up strategy.

In June, Hudbay released its annual sustainability report, which provides transparency and progress on key accomplishments and initiatives in 2021 along with goals for the upcoming year and long-term future. Hudbay believes global demand for the metals that it mines will continue to rise alongside the need for green technology that will play an essential role in meeting the challenge of climate change.

Hudbay is committed to a reduced GHG emissions future and is currently working toward specific emissions reduction targets to align with the global 2030 and 2050 climate change goals. The company is also designing the Copper World Complex in Arizona in compliance with 2030 and 2050 GHG objectives. In 2021, to better understand the nature of the company's GHG footprint and the best options for approaching and achieving sustainable GHG reductions, it began work on a 10-year Greenhouse Gas Reduction Roadmap. The roadmap will identify key sources of emissions, including Scope 3 emissions, and the nature of the changes – operational or technical – that will be required to make full or significant changes in each source area.

As a member of the Mining Association of Canada, Hudbay implements the Towards Sustainable Mining ("TSM") Protocols at all of its operations, with the goal to maintain a score of "A" or higher for all protocols. In 2021, the company achieved a rating of "AA" across all TSM tailings management protocol indicators in both Manitoba and Peru. Hudbay also saw a 7% decrease in energy intensity per tonne of ore processed, and over 50% of its indirect energy consumption was from renewable sources.

Hudbay controls a large, contiguous block of mineral rights with the potential to host mineral deposits within trucking distance of the Constancia processing facility, including the past producing Caballito property and the highly prospective Maria Reyna property. Discussions with the community of Uchucarcco related to a surface rights exploration agreement on the Maria Reyna and Caballito properties are progressing well. The company expects to finalize an agreement in the coming weeks before commencing field exploration activities. Finalization of the Uchucarcco agreement is expected to increase community investment costs in the second half of 2022.

The company is compiling results from recent drilling at the Llaguen copper porphyry target in northern Peru and remains on track to complete an initial inferred mineral resource estimate in the third quarter of 2022.

Hudbay has been actively conducting drilling activities in Manitoba with success in identifying extensions of the copper-gold rich feeder zone at the 1901 deposit and compiling results from ongoing infill drilling at Lalor.

A majority of the infill drilling to support the pre-feasibility study for the Copper World Complex has been completed, and in July, Hudbay reduced the number of drill rigs at site to three. Ongoing drilling will focus on continued confirmatory drilling in support of future feasibility studies.

A conductivity-resistivity IP ground survey will be conducted in the second half of 2022 at the Mason Valley properties located on private land claims near the Mason project. This work, in combination with a re-interpretation of geological data from past operating mines and previous exploration data, will be used to finalize a drill plan to test high grade skarn targets. The drilling program initially planned for late 2022 has been postponed to a later date considering the recent changes in the metal price environment.

A semi-annual dividend of C$0.01 per share was declared on August 8, 2022. The dividend will be paid out on September 23, 2022 to shareholders of record as of September 2, 2022.

Management's Discussion and Analysis:

http://www.hudbayminerals.com/files/doc_financials/2022/Q2/MDA222.pdf

http://www.hudbayminerals.com/files/doc_financials/2022/Q2/FS222.pdf

Qualified Person and NI 43-101

The technical and scientific information in this news release related to the company's material mineral projects has been approved by Olivier Tavchandjian, P. Geo, Vice President, Exploration and Technical Services. Mr. Tavchandjian is a qualified person pursuant to NI 43‑101.

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The Copper World Complex PEA is preliminary in nature, includes inferred resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty the PEA will be realized.

For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources at Hudbay's material properties, as well as data verification procedures and a general discussion of the extent to which the estimates of scientific and technical information may be affected by any known environmental, permitting, legal title, taxation, sociopolitical, marketing or other relevant factors, please see the technical reports for the company's material properties as filed by Hudbay on SEDAR at www.sedar.com .

Adjusted net earnings (loss), adjusted net earnings (loss) per share, adjusted EBITDA, net debt, cash cost, sustaining and all-in sustaining cash cost per pound of copper produced, cash cost and sustaining cash cost per ounce of gold produced and combined unit cost are non-IFRS performance measures. These measures do not have a meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently.

Management believes adjusted net earnings (loss) and adjusted net earnings (loss) per share provides an alternate measure of the company's performance for the current period and gives insight into its expected performance in future periods. These measures are used internally by the company to evaluate the performance of its underlying operations and to assist with its planning and forecasting of future operating results. As such, the company believes these measures are useful to investors in assessing the company's underlying performance. Hudbay provides adjusted EBITDA to help users analyze the company's results and to provide additional information about its ongoing cash generating potential in order to assess its capacity to service and repay debt, carry out investments and cover working capital needs. Net debt is shown because it is a performance measure used by the company to assess its financial position. Cash cost, sustaining and all-in sustaining cash cost per pound of copper produced are shown because the company believes they help investors and management assess the performance of its operations, including the margin generated by the operations and the company. Cash cost and sustaining cash cost per ounce of gold produced are shown because the company believes they help investors and management assess the performance of its Manitoba operations. Combined unit cost is shown because Hudbay believes it helps investors and management assess the company's cost structure and margins that are not impacted by variability in by-product commodity prices.

During 2021, there were non-recurring adjustments for Manitoba operations, including severance, past service pension costs, write-downs of certain machinery and equipment, and inventory supplies write-downs as well as non-cash impairment charges related to an updated Flin Flon closure plan and lower long term discount rates in the fourth quarter, none of which management believes are indicative of ongoing operating performance and therefore are adjusting items in the calculations of adjusted net earnings (loss) and adjusted EBITDA.

Cash cost and sustaining cash cost per pound of zinc produced was a previously disclosed non-IFRS measure, most recently published in the company's MD&A for the year ended December 31, 2021, dated February 23, 2022. With the planned closure of 777 mine and Flin Flon operations, including the zinc plant, in the second quarter of 2022, the production profile of Manitoba has shifted from zinc to gold and therefore the company has ceased providing this measure on a go forward basis.

In the first and second quarter of 2022, Hudbay recorded a non-cash gain of $79.9 million and $60.7 million, respectively, mostly related to the quarterly revaluation of its Flin Flon environmental provision, which was impacted by rising long-term risk-free discount rates. With closure of 777 mine and Flin Flon operations in the second quarter of 2022 and given the long-term nature of the reclamation cash flows, quarterly revaluation of the corresponding environmental provision remains highly sensitive to changes in long-term risk-free discount rates and, as such, the company expects to continue to experience quarterly environmental provision revaluations, which is not indicative of its ongoing operating performance. This item has been included prospectively in the calculation of adjusted earnings.

The following tables provide detailed reconciliations to the most comparable IFRS measures.

Adjusted Net Earnings (Loss) Reconciliation

1 Includes changes in fair value of the gold prepayment liability, Canadian junior mining investments, other financial assets and liabilities at fair value through profit or loss and share-based compensation expenses. 2 Changes from movements to environmental obligation closure estimates are primarily related to the Flin Flon operations, which were fully depreciated as of March 31, 2022, as well as other Manitoba non-operating sites. 3 Includes closure costs for Flin Flon operations.

1 Environmental obligation adjustments were presented within other (income) expense for 2021 periods. 2 Share-based compensation expenses reflected in cost of sales and selling and administrative expenses.

1 Per pound of copper produced.

1 Per pound of copper produced. 2 By-product credits are computed as revenue per financial statements, including amortization of deferred revenue and pricing and volume adjustments. 3 Gold and silver by-product credits do not include variable consideration adjustments with respect to stream arrangements. Variable consideration adjustments are cumulative adjustments to gold and silver stream deferred revenue primarily associated with the net change in mineral reserves and resources or amendments to the mine plan that would change the total expected deliverable ounces under the precious metal streaming arrangement. For the three months ended June 30, 2022 the variable consideration adjustments amounted to income of $nil, the three months ended March 31, 2022 - income of $3,245 and for the three months ended June 30, 2021 - of $nil. 4 Depreciation is based on concentrate sold. 5 As per IFRS financial statements.

Sustaining and All-in Sustaining Cash Cost Reconciliation

1 Includes accretion of decommissioning relating to non-productive sites, and accretion and amortization of current community agreements. 2 Other non-sustaining capital costs include Arizona capitalized costs, capitalized interest, capitalized exploration, growth capital expenditures.

1 Only includes exploration costs incurred for locations near to existing mine operations.

Manitoba Gold Cash Cost and Sustaining Cash Cost Reconciliation

1 Per ounce of gold produced. 2 By-product credits are computed as revenue per financial statements, amortization of deferred revenue and pricing and volume adjustments. For more information, please see the realized price reconciliation table in the Q1 2022 Management Discussion and Analysis posted on hudbayminerals.com 3 Silver by-product credits do not include variable consideration adjustments with respect to stream arrangements. 4 Depreciation is based on concentrate sold. 5 As per IFRS financial statements.

1 G&A as per cash cost reconciliation above. 2 Other G&A primarily includes profit sharing costs. 3 As per IFRS financial statements.

1 G&A as per cash cost reconciliation above. 2 As per IFRS financial statements.

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "budget", "guidance", "scheduled", "estimates", "forecasts", "strategy", "target", "intends", "objective", "goal", "understands", "anticipates" and "believes" (and variations of these or similar words) and statements that certain actions, events or results "may", "could", "would", "should", "might" "occur" or "be achieved" or "will be taken" (and variations of these or similar expressions). All of the forward-looking information in this news release is qualified by this cautionary note.

Forward-looking information includes, but is not limited to, production, cost and capital and exploration expenditure guidance, expectations regarding an increase in community investments following formalization of an agreement with the community of Uchucarcco, expectations regarding the impact of COVID-19 and inflationary pressures on the cost of operations, financial condition and prospects, expectations regarding the company's cash balance and liquidity for the remainder of the year, expectations regarding the Copper World Complex project, including the company's plans for a pre-feasibility study and potential optimization work, expectations regarding the permitting requirements for the Copper World Complex and permitting related litigation, expectations regarding the Snow Lake transition, including anticipated timelines for achieving target throughput and recoveries at the New Britannia mill, increasing the mining rate at Lalor to 5,300 tonnes per day and implementing the Stall mill recovery improvement program, expectations regarding the Flin Flon closure process and the transition of personnel and equipment to Snow Lake, expectations regarding an agreement with the community of Uchucarcco and the ability to commence exploration work on the Maria Reyna and Caballito properties, anticipated mine plans, anticipated metals prices and the anticipated sensitivity of the company's financial performance to metals prices, events that may affect its operations and development projects, anticipated cash flows from operations and related liquidity requirements, the anticipated effect of external factors on revenue, such as commodity prices, estimation of mineral reserves and resources, mine life projections, reclamation costs, economic outlook, government regulation of mining operations, and business and acquisition strategies. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by Hudbay at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information.

The material factors or assumptions that Hudbay has identified and applied in drawing conclusions or making forecasts or projections are set out in the forward-looking information include, but are not limited to:

The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks associated with COVID-19 and its effect on Hudbay's operations, financial condition, projects and prospects, uncertainty with respect to the political and social environment in Peru and its potential impact on the company's mining operations, risks generally associated with the mining industry and the current geopolitical environment, including future commodity prices, currency and interest rate fluctuations, energy and consumable prices, supply chain constraints and general cost escalation in the current inflationary environment, uncertainties related to the development and operation of the company's projects, risks related to the preliminary economic assessment of the Copper World Complex, including in relation to permitting, litigation, project delivery and financing risks, risks related to the new Lalor mine plan, including the continuing ramp-up of the New Britannia mill and the ability to convert inferred mineral resource estimates to higher confidence categories, the potential that additional financial assurance will be required to support the updated Flin Flon closure plan, dependence on key personnel and employee and union relations, risks related to political or social instability, unrest or change, risks in respect of Indigenous and community relations, rights and title claims, operational risks and hazards, including the cost of maintaining and upgrading the Company's tailings management facilities and any unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, depletion of reserves, volatile financial markets and interest rates that may affect its ability to obtain additional financing on acceptable terms, the failure to obtain required approvals or clearances from government authorities on a timely basis, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources, and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, the company's ability to comply with its pension and other post-retirement obligations, the ability to abide by the covenants in its debt instruments and other material contracts, tax refunds, hedging transactions, as well as the risks discussed under the heading "Risk Factors" in Hudbay's most recent Annual Information Form.

Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, you should not place undue reliance on forward-looking information. Hudbay does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.

Note to United States Investors

This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which may differ materially from the requirements of United States securities laws applicable to U.S. issuers.

Hudbay (TSX, NYSE: HBM) is a diversified mining company with long-life assets in North and South America. The company's operations in Cusco (Peru) produce copper with gold, silver and molybdenum by-products. Its operations in Manitoba (Canada) produce gold with copper, zinc and silver by-products. Hudbay's organic pipeline includes copper development projects in Arizona and Nevada (United States), and its growth strategy is focused on the exploration, development, operation, and optimization of properties it already controls, as well as other mineral assets it may acquire that fit its strategic criteria. Hudbay's mission is to create sustainable value through the acquisition, development and operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining, and to see the regions and communities in which the company operates benefit from its presence. Further information about Hudbay can be found on www.hudbay.com .

For further information, please contact:

Candace Brûlé Vice President, Investor Relations (416) 814-4387 candace.brule@hudbay.com

_______________________________ i Adjusted net earnings and adjusted net earnings per share; adjusted EBITDA; cash cost, sustaining cash cost and all-in sustaining cash cost per pound of copper produced, net of by-product credits; cash cost and sustaining cash cost per ounce of gold produced, net of by-product credits; and net debt are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release.

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(All dollar amounts are in United States Dollars unless otherwise indicated)

Nova Royalty Corp. (" Nova " or the " Company ") (TSXV: NOVR) (OTCQB: NOVRF) is pleased to announce that, further to its news release dated January 10, 2022 it has completed its acquisition (the " Transaction ") of an existing 0.135% net smelter return (" NSR ") royalty on the Copper World and Rosemont copper projects in Arizona (the " Royalty "), owned by Hudbay Minerals Inc. (TSX: HBM) (NYSE: HBM). Nova has also been granted a Right of First Refusal in respect to an additional 0.540% NSR covering the same area as the Royalty.

The aggregate purchase price for the Transaction included upfront consideration of $1.0 million in cash (" Closing Cash Payment ") and $0.5 million in common shares of Nova (" Consideration Shares "), of which Nova issued 214,610 Consideration Shares at C$2 .950940‎ per share, calculated based on the twenty-day volume weighted average trading price of the common shares of Nova up to and including January 7, 2022 .

An additional $4.0 million in cash will be payable as follows:

Other terms of the Transaction were as disclosed in Nova's news release dated January 10, 2022 .

Nova has also completed its previously announced drawdown (the " Drawdown ") of an additional C$1.5 million (the " Drawdown Amount ") under its existing amended and restated convertible loan facility with Beedie Capital (the " Beedie Capital Facility "). The Drawdown will increase the total amount drawn under the Beedie Capital Facility to C$6.5 million , with an additional C$18.5 million remaining available to the Company. The Beedie Capital Facility carries an interest rate of 8.0% per annum on advanced funds and 1.5% per annum on standby funds.

The Drawdown Amount is convertible by Beedie Capital into 426,845 common shares of the Company at a conversion price of C$3.514152 per share which is based on a 20% premium above the 30-day volume-weighted average price of the common shares of Nova on ‎the TSX Venture Exchange (" TSXV ") calculated up to and including January 7, 2022 , in accordance with the terms of the Beedie Capital Facility‎. Any common shares of the Company issued upon conversion of the Drawdown Amount will be subject to a hold period elapsing on May 26, 2022 .

A portion of the Drawdown Amount was used to fund the Closing Cash Payment and the balance will be used for general and administrative purposes.

Nova has received conditional acceptance of the TSXV to complete the Drawdown, which remains subject to final acceptance of the TSXV.

Nova is a royalty company focused on providing investors with exposure to the key building blocks of clean energy – copper and nickel. The Company is headquartered in Vancouver, British Columbia and is listed on the TSXV under the trading symbol "NOVR" and on the US OTCQB under the ticker "NOVRF".

On Behalf of Nova Royalty Corp.,

(signed) "Alex Tsukernik" President and Chief Executive Officer

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. The forward-looking statements herein are made as of the date of this press release only, and the Company does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information in this press release includes, but is not limited to, exploration and expansion potential, production, recoveries and other anticipated or possible future developments on the Rosemont and/or Copper World projects, current commodity prices, the payment frequency of the under the Royalty, current and potential future estimates of mineral reserves and resources; future commercial production from the Rosemont and/or Copper World projects or other designated areas; and the attainment of any required regulatory approval to the acquisitions of the Royalty. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Nova to control or predict, that may cause Nova's actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, the risk factors set out under the heading "Risk Factors" in the Company's annual information form dated April 30, 2021 available for review on the Company's profile at www.sedar.com . Such forward-looking information represents management's best judgment based on information currently available. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

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While other materials have seen unstable markets in the last year, demand for lithium has continued to rise in order to meet the demands of the lithium-ion battery market.

According to a recent CBC article, one of the jurisdictions that is seeing an uptick in lithium exploration activity is Manitoba’s Snow Lake region. Snow Lake sits 200 kilometers east of Flin Flon, another area in the province that is well known for lithium production. Companies like Snow Lake Resources and Far Resources (CSE:FAT) are leading the charge in exploring the Snow Lake region, showing a glimmer of hope and promise as the province faces ongoing employment challenges in its mining sector. This follows decisions from both Hudbay Minerals (TSX:HBM,NYSE:HBM) and Vale (NYSE:VALE) to reduce their activities in Manitoba.

In their pursuit to develop a lithium hub in northern Manitoba, the miner will be developing the Stall mill, Lalor mine and a refurbished New Brit Gold mill, all near Snow Lake. “As long as there is exploration, there’s always hope for a longer future,” said Snow Lake mayor Peter Roberts.

Click here to read the full article.

Copper has seen a few volatile trading years as the COVID-19 pandemic took center stage. However, in the first quarter of 2022, prices for the red metal hit an all-time high, trading above US$5.02 per pound.

Interestingly, by looking backwards it’s easy to see that the spike is an expected feature of the long-term picture for copper prices. In recent years, the red metal has rebounded after a downtrend from about 2011 to 2015, and over the last few decades prices have increased even more dramatically.

Case in point, at the start of 2022, copper was up more than 500 percent since 2000. Although this impressive major increase doesn’t account for inflation, it is still a sizeable gain. What’s more, copper prices were more or less on the rise during the latter half of the 20th century.

So what’s the best way to view historical copper prices? According to Stefan Ioannou of Cormark Securities, it’s most pragmatic to look at historical copper prices since the 1970s or 1980s.

That’s because of one key factor that brought major changes to the industry: the rise of modern heap-leach technology. Leaching has long been used in mining operations, but the method in its modern form didn’t start gaining popularity until around 1980.

“That fundamentally changed the way we mine copper,” Ioannou said. “Up until then, a lot of copper mining was for the most part focused on sulfide mineralization producing a copper concentrate that you’d send to a smelter. With heap-leach technology, all of a sudden the giant porphyries (and) the oxidized caps associated with large porphyries down in South America became viable.”

That sounds like good news for increasing copper supply, but as Ioannou noted, large-scale deposits are often low grade, meaning that they’re more costly to mine despite relatively cheap heap-leaching methods. That’s no doubt had an effect on copper prices.

While Ioannou stated that supply and demand dynamics are the main driver behind copper prices, he also noted that grades and production costs are factors as well. Demand for copper keeps growing, and he suggested that since “the low-hanging fruit has been mined,” miners must increasingly go after more difficult, large, low-grade and costly deposits to meet that need.

“The price of copper dictates how low you can go on the grade,” he said. “Back pre-1970s, I’m guessing a lot of copper was coming from a lot higher-grade mines … as we’ve been mining more and more of these large-scale deposits that are low grade, the cost on a per-pound basis has gone up.”

Many supply and demand factors have contributed to the movement of historical copper prices over the years. For example, a report from the US Geological Survey notes that the Vietnam War meant strong demand in the mid-1960s and early 1970s, leading to price controls to limit domestic copper prices.

Much later, in July 1998, prices “had fallen to their lowest level since the Great Depression,” while an earlier production boom in the 1980s led prices to fall on the back of resulting oversupply.

Copper price performance, January 2000 to August 2022

Global demand for copper is currently dominated by China, and those following the resource market will no doubt remember a large spike in Chinese demand that sent prices for copper and other commodities soaring in recent years. China is still a strong copper demand driver, with the most recent data showing that it was the largest consumer of refined copper at 13.3 million metric tons in 2021.

US tariffs on China have impacted the Asian nation’s copper demand, and it’s tough to say what’s going to happen moving forward. The trade war between the two countries has dampened prices for metals like copper, and analysts have noted that the country’s infrastructure and property sectors, both of which require large amounts of copper and other commodities, are also showing signs of weakness.

In addition, the Chinese government is looking to rein in credit growth in the economy. Some also say the country was stockpiling copper as a strategic move during this time.

Interestingly, some take another view on the historical performance of the copper price.

Richard Schodde, managing director at MinEx Consulting, gave a presentation on the subject back in 2010 that looks at a longer timeframe — 110 years, to be exact. On that scale, historical copper prices have actually dropped significantly since the 1910s.

Schodde told the Investing News Network by email that real copper prices have dropped about 50 percent over the past 100 years, and that production costs have also fallen due to economies of scale and advances in mining and processing technologies.

That might not sound like good news for copper, but Schodde views the drop as a good thing overall. He predicts that the industry will continue to innovate in order to exploit lower-grade deposits and meet growing global demand for copper.

Plus, it’s worth considering where you get in. Looking at the graph below from Schodde, it wouldn’t be ideal if you invested in copper back in the 1910s, but it’s more likely that investors now will have jumped in at some other point on the graph. It all comes down to strategy, timing and, frankly, a bit of luck.

Copper price vs. average operating costs, 1900 to 2009

In the short term, copper price volatility is still in the cards due to market uncertainties created by US economic and foreign policies, including the trade war between the US and China, and the prolonged impact of the pandemic on the global economy.

However, some analysts are quite optimistic looking longer term. Goldman Sachs (NYSE:GS) has expressed confidence that copper’s long-term fundamentals remain strong, citing a “clear structural bull story.” The firm sees copper prices reaching US$15,000 per metric ton (or US$6.80 per pound) by 2025.

This is an updated version of an article originally published by the Investing News Network in 2015.

Don’t forget to follow us @INN_Resource for more updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Hudbay Minerals Inc. ("Hudbay" or the "company") ( TSX, NYSE: HBM) today announced the Uchucarcco community has formally approved an exploration agreement with Hudbay granting surface rights to the Maria Reyna and Caballito satellite properties located near Hudbay's Constancia mine in Peru, as shown in Figure 1. These satellite properties consist of a large, contiguous block of mineral rights held by Hudbay and have the potential to host mineral deposits within trucking distance of the Constancia processing facilities.

"We are very pleased to have reached an exploration agreement with the Uchucarcco community on these highly prospective properties," said Peter Kukielski, Hudbay's President and Chief Executive Officer. "Historic drilling at Maria Reyna indicates attractive grades over wide intersections starting at surface and the past-producing Caballito property has the potential to add higher grade copper mineralization to our Constancia operations. This exploration agreement demonstrates our commitment to partnering with the local communities and we look forward to continuing to work harmoniously with the communities to add value to our long-life operation in Peru."

The company expects to commence early field exploration activities in August and finalization of the Uchucarcco agreement is anticipated to increase community investment costs in the second half of 2022. Hudbay's planned exploration programs at Maria Reyna and Caballito have been prepared using information from the company's geophysics surveys in the region, as shown in Figure 2, and the historical drill intersections at Maria Reyna, as shown in Table 1.

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, plans to commence exploration activities on the Maria Reyna and Caballito satellite properties in Peru, the potential for mineralization at the satellite properties and the anticipated increase in 2022 community investment costs. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by the company at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information.

The material factors or assumptions that Hudbay identified and were applied by the company in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to, the timing of the exploration activities and the potential to benefit from the mineralization at the satellite properties.

The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), risks associated with the political situation in Peru, risks associated with the Consulta Previa and exploration permitting process and uncertainties related to agreements that may need to be reached with individual land possessors, as well as the risks discussed under the heading "Risk Factors" in Hudbay's most recent Annual Information Form.

For investor and media inquiries, please contact:

Candace Brûlé Vice President, Investor Relations (416) 814-4387 candace.brule@hudbay.com

Figure 1: Surface Rights Exploration Agreement Map The surface rights exploration agreement covers the area outlined in orange in this figure, located within ten kilometres from Hudbay's Constancia operation. Future exploration programs are expected to be focused on the Maria Reyna SW and Caballito areas located in the yellow outlined areas. https://www.globenewswire.com/NewsRoom/AttachmentNg/c52cd6fa-efbc-4607-9c32-b0593870c096

Figure 2: Regional Geophysics Radiometric Map Radiometric map analyzing potential mineralized porphyry systems in the region indicates that the potential size of the anomaly at Maria Reyna and Caballito could be larger than the Constancia and Pampacancha deposits. https://www.globenewswire.com/NewsRoom/AttachmentNg/6362a8fa-0fc5-44e1-8900-555d5c73f0c4

Table 1: Maria Reyna Historical Drill Results

Historical drilling in the Maria Reyna south-west zone completed by a previous owner consisted of 11 diamond drill holes covering a total of 5,585 meters. The historical drill results include 136 metres at 0.61% copper-equivalent (‘CuEq"), 106 metres at 0.55% CuEq and 160 metres at 1.03% CuEq. A qualified person has not independently verified this historical data or the quality assurance and quality control program that was applied during the execution of this drill program and, as such, Hudbay cautions that this information should not be relied upon by investors.

Notes: The intersections represent core length and are not representative of the width of the possible mineralized zone. For additional information, including drill hole locations and the data verification and quality assurance / quality control carried out by the prior owner, please refer to Management's Discussion and Analysis for Indico Resources Ltd. ("Indico") for the year ended May 31, 2014, as filed by Indico on SEDAR on September 29, 2014. Intervals were calculated with maximum of 10 metres of 0.1% CuEq internal dilution, 0.2% CuEq edge grade, minimum length of 15 metres. For CuEq calculations the following variables were used: $3.00/lb Cu, $15.00/lb Mo, $21.00/oz Ag; no allowances for metallurgical recoveries were made.

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American West Metals Limited (American West Metals or the Company) (ASX: AW1) is pleased to announce further outstanding visual results for diamond drill holes completed at the Storm Copper Project (Storm or the Project) on Somerset Island, Nunavut, Canada.

Dave O’Neill, Managing Director of American West Metals commented:

“In addition to our exciting discovery of a new copper system announced this week, the shallow drilling at the 2750N Zone has also continued to deliver spectacular results. We have now extended the strike and mineralised footprint of the thick, near surface copper at the 2750N Zone to over 200m.

“Every drill hole we have completed at the 2750N Zone has intersected wide intervals of copper with mineralisation open along strike and at depth. This is the best outcome we could hope for and shows that we are well on our way to defining a significant volume of copper here.

“The drilling has emphasized the strong continuity and expansion potential of the 2750N Zone where we are aiming to define a shallow copper resource that can support a low cost, low-footprint direct shipping ore (DSO) mining operation.

“The success at the 2750N Zone bodes well for the potential of several other near-surface high-grade zones already identified by previous drilling.

“We look forward to reporting further information and assay results in the coming weeks.”

Click here for the full ASX Release

This article includes content from American West Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

Turquoise Hill Resources Ltd. (TSX: TRQ) (NYSE: TRQ) ("Turquoise Hill" or the "Company") acknowledges the receipt today of an improved non-binding proposal from Rio Tinto International Holdings Ltd. ("Rio Tinto"), to acquire all of the outstanding common shares of the Company it does not own for cash consideration of C$40 per share (the "New Rio Tinto Proposal"). Rio Tinto has stated that the New Rio Tinto Proposal is conditional on, among other things, Turquoise Hill not raising additional equity capital.

The New Rio Tinto Proposal was delivered to the Special Committee of the Company's Board of Directors which is currently considering the proposal. Turquoise Hill shareholders do not need to take any action with respect to the proposal at this time.

Turquoise Hill is an international mining company focused on the operation and continued development of the Oyu Tolgoi copper-gold mine in Mongolia, which is the Company's principal and only material mineral resource property. Turquoise Hill's ownership of the Oyu Tolgoi mine is held through a 66% interest in Oyu Tolgoi LLC; Erdenes Oyu Tolgoi LLC, a Mongolian state-owned entity, holds the remaining 34% interest.

Forward-looking statements and forward-looking information

Certain statements made herein, including statements relating to matters that are not historical facts and statements of the Company's beliefs, intentions and expectations about developments, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements and information relate to future events or future performance, reflect current expectations or beliefs regarding future events and are typically identified by words such as "anticipate", "believe", "could", "estimate", "expect", "intend", "likely", "may", "plan", "seek", "should", "will" and similar expressions suggesting future outcomes or statements regarding an outlook. These include, but are not limited to, the Special Committee's consideration of the New Rio Tinto Proposal and other statements that are not historical facts.

Forward-looking statements and information are made based upon certain assumptions and other important factors that, if untrue, could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such statements or information. There can be no assurance that such statements or information will prove to be accurate. Such statements and information are based on numerous assumptions regarding present and future business strategies, local and global economic conditions, and the environment in which the Company will operate in the future, including: the price of copper, gold and silver; projected gold, copper and silver grades; anticipated capital and operating costs; anticipated future production and cash flows; the nature of the Company's ongoing relationship and interaction with the Government of Mongolia; the continuation of undercutting in accordance with the mine plan and design; the actual timing of first sustainable production; the availability and timing of required governmental and other approvals for the construction of the state-owned power plant and the ability of the Government of Mongolia to finance and procure the state-owned power plant within the timeframes anticipated in the Power Source Framework Agreement, as amended, subject to ongoing discussions relating to a standstill period; finalization of an agreement with Inner Mongolia Power International Cooperation Co., Ltd. on an extension of the current power import arrangements; the Company's ability to operate sustainably, its community relations and its social licence to operate in Mongolia; the amount of any additional future funding gap to complete the Oyu Tolgoi project and the availability and amount of potential sources of additional funding required therefor; the implementation and successful execution by the Company of the updated funding plan for the completion of the Oyu Tolgoi underground mine; and other risks inherent to the Company's business and/or factors beyond its control which could have a material adverse effect on the Company.

Readers are cautioned not to place undue reliance on forward-looking information or statements. By their nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predicted outcomes will not occur. Events or circumstances could cause the Company's actual results to differ materially from those estimated or projected and expressed in, or implied by, these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are included in the "Risk Factors" section of the Company's Annual Information Form, as supplemented by the "Risks and Uncertainties" section of the Company's Management Discussion and Analysis for the three and six months ended June 30, 2022 ("Q2 2022 MD&A").

Readers are further cautioned that the lists of factors enumerated in the Risk Factors section of the Company's Annual Information Form and the "Risks and Uncertainties" section of the Q2 2022 MD&A that may affect future results are not exhaustive. Investors and others should carefully consider the foregoing factors and other uncertainties and potential events and should not rely on the Company's forward-looking statements and information to make decisions with respect to the Company. Furthermore, the forward-looking statements and information contained herein are made as of the date of this document and the Company does not undertake any obligation to update or to revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking statements and information contained herein are expressly qualified by this cautionary statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220824005525/en/

Vice President Investors Relations and Communications Roy McDowall roy.mcdowall@turquoisehill.com

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Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) (“Hot Chili” or “Company”) is pleased to announce a new, shallow high grade, copper-silver drill intersection from its Valentina copper deposit in Chile.

Shallow, High Grade, Copper-Silver at Valentina

The new drill result represents exceptional near-surface grades, providing an exciting potential additional front-end ore source for the Company’s Costa Fuego coastal range copper-gold development.

Assays results returned for VALMET0002, a twin Diamond Drill (DD) hole of Reverse Circulation (RC) drill hole VAP0009 (see announcement dated 8th August 2022), recorded 3m grading 12.1% CuEq (11.8% Cu & 52.6g/t Ag) within a broader drilling intersection of 12m grading 4.6% CuEq (4.5% Cu & 16.5g/t Ag) from 25m depth down-hole.

The result confirms a significant 120m extension of high grade, copper-silver mineralisation to the south of the historical Valentina underground mine and provides material for development-related metallurgical testwork, key to the inclusion of the Valentina Resource in the Costa Fuego combined prefeasibility study (PFS) due in Q1 2023.

Copper soluble analysis has confirmed that mineralisation is principally sulphide (chalcocite, chalcopyrite, covellite) and amenable to flotation recovery, thus key to Valentina’s potential to contribute to early sulphide cash flow generation.

Valentina Shaping as a High Grade Ore Source Addition at Costa Fuego

Mineralisation at Valentina is now defined over approximately 300m strike, and is open at depth and along strike. In addition to VALMET0002, new significant intersections from the phase-2 drill programme also include:

including 2m @ 3.3% CuEq (3.2% Cu, 16.4g/t Ag)

Results have been returned for eleven of the seventeen phase-2 drillholes with assays pending for six drill holes. Of the eleven drill holes returned, four drill holes recorded significant drill intersections (outlined above), three drill holes intersected the mineralised structure (0.2% to 0.5% Cu), one drill hole intersected historical workings (ineffective), and three drill holes did not intersect mineralisation.

Phase-two drilling at Valentina has focussed on proving continuity of the mineralised trend along-strike and at-depth below the historical shallow underground mine.

Click here for the full ASX Release

This article includes content from Hot Chili Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

Copper is the third most-used metal in the world, and experts believe demand for this important commodity will rise in the coming years on the back of a tight supply situation.

For that reason, market watchers may be asking, “When will copper go up?” The general consensus is that higher copper prices are needed for mining companies to invest in copper production and exploration.

“We believe significant mine supply response will be required to meet this new area of demand growth and a higher copper price will be needed to incentivize the new production into the market,” said Daniel Greenspan, senior analyst and resource team director at CIBC Asset Management.

Copper’s supply/demand imbalance sparked a record-breaking rally in 2021, pushing prices to an all-time high of US$10,724.50 per metric ton (MT) — a record that the metal broke in March 2022, when it hit US$10,730 per MT.

The price of copper has since pulled back to about US$8,000 per MT as of mid-August on growing fears of a global recession. Is there still room for optimism for an impending bull-market for the red metal?

Copper’s many useful properties have translated into intense demand for the base metal from a diverse range of industries. Construction and electronics have long been the main drivers for copper demand, and with a conductivity rating that's second only to silver, it’s no wonder copper is also an ideal metal for use in energy storage, electric vehicles (EVs) and EV charging infrastructure.

According to S&P Global Market Intelligence, “With its significant use in solar photovoltaic panels, wind power generation and electric vehicle production, copper will be the key beneficiary of the energy transition.”

For 2022, the firm sees global copper demand from solar and wind energy generation reaching 852,000 MT, with the EV market accounting for 1.1 million MT worth of demand.

China is the world's largest consumer of the metal, and while its zero-COVID policy is wreaking havoc on its economy, most notably in the housing sector, it is driving much demand for copper as an energy metal.

The Chinese government’s Made in China 2025 and China Standards 2035 initiatives include spending US$1.4 trillion on copper-heavy infrastructure programs, including 5G networks, industrial internet, inter-city transportation and rail systems, ultra-high-voltage power transmission and EV charging stations.

Outside China, the EV market represents a growing global source of demand for copper now and into the future. As research firm Wood Mackenzie has noted, “EVs can use up to three and a half times as much copper when compared to an internal combustion engine passenger car.”

Even so, according to IDTechEx, energy storage may prove to be one of the most copper-intensive markets in the 21st century. Estimates show that lithium-ion batteries need 1.1 to 1.2 kilograms of copper for every kilowatt hour. IDTechEx forecasts that by 2027, nearly 600,000 MT of additional copper will be needed to match this demand.

Watch the full interview with Kovacevic above.

“Copper is going through a once-in-a-100-year pivot with this global transition to electrification,” Gianni Kovacevic told the Investing News Network (INN) in a mid-2021 interview about the base metal's future. “We need more copper in the next 20 years than was installed in the last 130 (years).”

Of course, demand is just one side of the story for copper prices. For more than a decade, the world’s largest copper mines have struggled with steadily declining copper grades and a lack of new copper discoveries.

In a June 2020 report, S&P Global Market Intelligence analyst Kevin Murphy paints a “dismal” picture for copper mine supply. He states that out of the 224 copper deposits discovered between 1990 and 2019, a mere 16 were discovered in the last decade. These circumstances have led to questions about whether peak copper is here.

The COVID-19 pandemic has further exacerbated challenges in the global copper supply chain as both mining and refining activities in several top copper-producing countries were slowed or halted altogether. The economic uncertainty also led miners to delay further investments in copper exploration and development — a complicating factor given that it can take more than 15 years to develop a newly discovered deposit into a producing mine.

Supply instability out of the world’s largest copper-producing countries, Chile and Peru, has also been weighing heavily on the market in 2021 and into 2022. Together, they represent a combined 40 percent of global output.

In Chile, some of the world’s biggest copper miners, including BHP (ASX:BHP,NYSE:BHP,LSE:BHP) and Anglo American (LSE:AAL,OTCQX:AAUKF), are facing proposed increases in the royalty rate via a tax reform bill. The country is also dealing with water woes as drought intensifies, causing tension over water access for miners who rely on this resource to pump copper to the surface, as well as during the smelting and concentration process.

To the north in Peru, President Pedro Castillo has copper miners nervous about the potential for higher mining taxes and royalties, not to mention ongoing sociopolitical unrest in the form of mining protests. "Without any world-class projects on the horizon, the prospects for sustaining production are not good," said Gonzalo Tamayo, an analyst at Macroconsult and a former Peruvian mines and energy minister.

Although his firm is forecasting that copper mine supply will increase by 4.3 percent in 2022, analyst Robert Edwards told INN in March that CRU Group has revised its 2022 copper supply/demand balance from a 50,000 MT surplus to a 100,000 MT deficit. Looking further out, CRU expects the copper market to realize a structural deficit by the early 2030s unless there is additional mine investment.

“If there isn’t enough physical supply, then the price will need to rise to incentivize more mines to come online, and/or there will need to be demand destruction, with a switch to alternative materials or products simply not being manufactured, in the worst-case scenario,” Edwards said.

Together, strong demand and tight supply can create the right market environment for higher prices.

Copper’s strong rally in 2021 has encouraged the idea that even higher copper prices are ahead, which could be a golden opportunity for junior copper companies. Speaking to INN, Joe Mazumdar, editor of Exploration Insights, explained why this segment of the metals market has piqued his interest.

Watch the full interview with Joe Mazumdar above.

"Some of it's battery metal exposure, it's construction," he said. "But also on the supply side, the lack of development projects and the higher permitting risk combined with more geopolitical risk in two of the major producers, Chile and Peru. They might have issues with production into a market (where) demand might grow."

So when will copper go up?

One of copper’s biggest backers, Goldman Sachs (NYSE:GS), has touted copper as a key metal in powering the green energy revolution. While the bank has culled its short-term price forecast from US$12,000 per MT back down to US$9,000 per MT, its analysts are still predicting that the metal will reach US$15,000 per MT in 2025 — a sign the firm believes in a “clear structural bull story” for the global copper market.

The Bank of America is a bit more conservative in its estimate as it sees the copper market entering a surplus in 2023 and 2024 before “flip(ping) back into deficit by 2025.” The bank has set its copper price forecast at US$3.97 per pound (US$8,750 per MT) for 2022 and US$3.29 per pound (US$7,250 per MT) for 2023.

Australia’s Office of the Chief Economist (OCE) has confidence in copper prices regaining lost ground in the next few years. It estimates that in 2022, total consumption will reach 27 million MT, while global mine production is estimated to reach around 22 million MT. “Copper demand growth is expected to be supported by global trends towards decarbonisation and renewable energy,” cites the Australian government's commodity forecaster.

The OCE sees copper prices averaging US$9,100 per MT in 2023 and US$9,000 per MT in 2024.

For its part, JPMorgan Chase (NYSE:JPM) is forecasting that copper prices will rise to US$10,000 per MT in the second half of 2022, alongside a prediction that China copper demand will rise by 5 percent year-on-year.

In a note, the investment bank states that it sees China's accelerating fixed asset investments in infrastructure and property benefiting copper and iron ore, another base metal.

This is an updated version of an article first published by the Investing News Network in 2021.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

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