Hudbay Minerals now expects its Snow Lake operation in Manitoba to produce 2.8 million ounces of gold over its life, 60% more than it forecast in 2021. The mine's reserves now run to 2043.
At a glance
- Snow Lake should average 185,000 ounces of gold a year from 2026 through 2030, at a cash cost of $821 an ounce.
- Mineral reserves grew 38% by tonnage to 27 million tonnes holding about 2 million ounces of gold.
- The old Britannia mine nearby holds an inferred 2.4 million ounces, which Hudbay sees as a possible new anchor deposit.
Background
Hudbay Minerals is a Canadian miner best known for copper, with mines in Peru and British Columbia and the Copper World project in Arizona. Snow Lake, in northern Manitoba, is its main gold operation. A technical report sets out how much metal a mine is expected to produce and at what cost, and investors use it to value the asset.
What happened
Hudbay released an updated Snow Lake mine plan on Monday that lifts total expected gold output to 2.8 million ounces. Its 2021 technical report had forecast 1.8 million ounces. The operation should produce about 201,000 ounces this year and average 185,000 ounces a year through 2030.
Reserves as of September 1 stand at 27 million tonnes containing roughly 2 million ounces of gold. That is 38% more tonnage than the January estimate, and it stretches the reserve mine life to 2043, or 18 years.
Why the numbers went up
The gains come from moving more ore through the mills and getting more gold out of it. The New Britannia mill runs at more than 2,000 tonnes a day and is ramping up to 2,300 tonnes. The Stall mill should rise from 2,300 to 3,000 tonnes a day by 2030.
Recoveries improve as well. Hudbay expects combined gold recovery to climb from 88.3% this year to 91.2% by 2028. A project to treat hot tailings at Stall is due to start in early 2028.
What it means
Snow Lake is becoming a steady cash generator for a company still seen mainly as a copper miner. Hudbay puts cash costs at $821 an ounce and sustaining cash costs at $1,379 an ounce for 2026 to 2030. Both sit far below today's gold price.
The plan also leaves room to grow. Hudbay is exploring the historic Britannia mine, which produced 600,000 ounces between 1949 and 1958 and another 800,000 ounces from 1995 to 2005. It now holds an inferred resource of about 2.4 million ounces.
Our read
Outlook: neutral. About 185,000 ounces a year is too small to shift global gold supply. The plan matters more for Hudbay's cash flow than for the gold price.
What to watch
- Progress on the New Britannia and Stall mill expansions toward their target rates.
- Exploration results from the Britannia deposit that could turn inferred ounces into reserves.
- Whether Snow Lake hits its 2026 target of about 201,000 ounces.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-03.
Detailed analysis
Timeline
- 2026-09-01: Effective date of Snow Lake's updated mineral reserve estimate.
- 2026-09-28: Hudbay publishes the new Snow Lake mine plan, raising life-of-mine gold output by 60%.
Supply Drivers
Mill expansions to 2,300 and 3,000 tonnes a day are the main source of the extra gold.
Mining Production
Snow Lake's life-of-mine output rises to 2.8 million ounces on higher mill throughput and better recoveries.
What could lift prices
- Cash costs of $821 an ounce leave wide margins at current gold prices.
- Britannia's 2.4 million inferred ounces could add another production centre.
What could weigh on prices
- Output falls to an average of 126,000 ounces a year from 2031 to 2035.
- Inferred resources at Britannia are the least certain category and may not become reserves.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Canada | Medium | A longer-lived Manitoba mine supports local jobs and provincial gold output until 2043. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Gold Mining | Positive | Better recoveries and larger reserves show how older districts can keep producing for decades. |
Who gains, who loses
- Hudbay shareholders: A 60% larger gold profile adds steady cash flow alongside the company's copper business.
- No clear loser: The plan adds output at an existing mine without taking share from any rival.
Other ways this could play out
- If the mill ramp-ups run late, near-term output could fall short of the 185,000-ounce average.
- If Britannia drilling succeeds, Hudbay could add a new mine and lift output after 2030.
Price risks
- A deep fall in gold prices would narrow the margin over Snow Lake's $1,379 sustaining cost.
- Higher operating costs than the C$262 a tonne planned for 2026 would erode cash flow.
Historical comparison
- 1949-1958 and 1995-2005: The Britannia mine produced 600,000 and 800,000 ounces of gold in its two earlier lives.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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