This Metal Producer’s Stock Is Up 52% In A Year: It Has Now Secured A Fresh $600 Million Investment For A Copper Mine

Hudbay Minerals Inc. (HBM) on Wednesday secured a major strategic partnership with Mitsubishi Corp., as it seeks to complete the development of its Copper World project in Arizona. The agreement grants Mitsubishi a 30% ownership in Copper World LLC, a Hudbay subsidiary, in exchange for a $600 million investment.

The joint venture, which is subject to standard regulatory approvals, will take the capital burden off Hudbay. The deal includes an initial $420 million payment and an additional $180 million contribution within 18 months.

Hudbay Minerals’ stock traded over 14% higher on Wednesday afternoon. On Stocktwits, retail sentiment around the company jumped to ‘extremely bullish’ territory from ‘bearish’ territory the previous day. Message volume improved to ‘high’ from ‘low’ levels in 24 hours. 

A bullish Stocktwits user expressed optimism about Hudbay Minerals’ business model.

According to pre-feasibility estimates, this collaboration boosts Hudbay’s projected internal rate of return on the Copper World project to around 90%.

“Securing Mitsubishi as a 30% partner in Copper World is an important milestone for Hudbay as we establish a long-term strategic partnership to advance this high-quality copper project towards sanctioning and to unlock significant value in our copper growth portfolio,” said Hudbay’s President and CEO, Peter Kukielski.

Copper World, expected to yield 85,000 tonnes of copper annually over 20 years, is expected to infuse $1.5 billion into the U.S. critical minerals supply chain. Located in southern Arizona, the mine is set to create over 1,000 construction jobs and 3,400 combined direct and indirect roles once operational.

Hudbay Minerals’ stock has gained over 38% year-to-date and over 53% in the last 12 months.

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