Toronto-listed shares of Hudbay Minerals Inc. (TSX: HBM) surged nearly 9% on Monday, closing at C$36.69, as the company benefited from a broad rally in mining stocks that propelled Canada's main stock index to a new all-time high. The stock traded between C$34.64 and C$36.73 during the session, according to Investing.com data.
The rally was driven by a 0.9% rise in three-month copper futures on the London Metal Exchange, which reached $13,624.32 per tonne. Copper prices were supported by optimism surrounding potential peace talks between the United States and Iran, which also weighed on oil prices and the U.S. dollar. The S&P/TSX Composite Index climbed 0.7% to 34,778.98 points, with the mining sub-index surging 3.1%.
Hudbay was among the top performers on the index, alongside Aya Gold & Silver and Americas Gold & Silver, each advancing more than 5%. Lundin Mining rose 5.13%, while Ero Copper traded at C$38.81, up from its previous close of C$37.30. The broader market moved higher as investors latched onto any hope for an end to the conflict, even if the chances remain slim, according to Brian Madden, chief investment officer at First Avenue Investment Counsel.
Hudbay's U.S.-listed shares were not traded on Monday due to the Memorial Day holiday on the New York Stock Exchange. The stock closed at $24.39 on Friday. For now, the Toronto-listed shares offer the more accessible route for investors.
The company's strong quarterly performance earlier this month provided additional momentum. For the first quarter, Hudbay reported revenue of $757.3 million, adjusted EBITDA of $421.9 million, and adjusted net earnings attributable to owners of $159.1 million. CEO Peter Kukielski highlighted the company's steady operating performance, expanded margins from strong copper and gold exposure, and a focus on cost control.
Hudbay reaffirmed its 2026 production outlook, targeting 110,000 to 138,000 tonnes of copper and 217,000 to 272,000 ounces of gold. The company has been actively expanding its U.S. copper holdings, striking a $1.48 billion deal in March to acquire the remaining stake in Arizona Sonoran Copper Company, which includes the Cactus project in Arizona. RBC Capital Markets analyst Sam Crittenden noted that the deal adds another meaningful project to Hudbay's Arizona pipeline.
The current rally is underpinned by several factors that could shift quickly, including Middle East headlines, copper price movements, and Hudbay's project execution. The company has flagged risks such as volatile commodity prices, rising costs, permitting challenges, political and social risks in Peru, and the uncertainty surrounding the closure of the Arizona Sonoran deal.
Overall, Hudbay's strong quarterly results, coupled with favorable copper market dynamics and strategic expansion, have positioned the stock as a standout in the mining sector. Investors will be watching closely for further developments on the U.S.-Iran talks and upcoming production milestones.
