6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2023

Commission File Number: 001-34244

HUDBAY MINERALS INC.
(Translation of registrant’s name into English)

25 York Street, Suite 800
Toronto, Ontario
M5J 2V5, Canada
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [   ]                    Form 40-F [X]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [   ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [   ]

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [   ]                     No [X]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____________________________

EXPLANATORY NOTE

On May 8, 2023, Hudbay Minerals Inc. (“Hudbay”) filed on the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com the following documents: (1) News Release dated May 8, 2023, (2) Unaudited Condensed Consolidated Interim Financial Statements for the period ended March 31, 2023, (3) Management's Discussion and Analysis of Results of Operations and Financial Condition for the period ended March 31, 2023, (4) Form 52-109F2 Certification of Interim Filings Full Certificate - CEO, and (5) Form 52-109F2 Certification of Interim Filings Full Certificate - CFO.

Copies of the filings are attached to this Form 6-K and incorporated herein by reference, as follows:

• Exhibit 99.1 — News Release dated May 8, 2023

• Exhibit 99.2 — Unaudited Condensed Consolidated Interim Financial Statements for the period ended March 31, 2023

• Exhibit 99.3 — Management's Discussion and Analysis of Results of Operations and Financial Condition for the period ended March 31, 2023

• Exhibit 99.4 — Form 52-109F2 Certification of Interim Filings Full Certificate - CEO

• Exhibit 99.5 — Form 52-109F2 Certification of Interim Filings Full Certificate - CFO

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

HUDBAY MINERALS INC.
(registrant)
By:	/s/ Eugene Lei
Name:	Eugene Lei
Title:	Chief Financial Officer

Date: May 9, 2023

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EXHIBIT INDEX

The following exhibits are furnished as part of this Form 6-K:

Exhibit	Description
99.1	News Release dated May 8, 2023
99.2	Unaudited Condensed Consolidated Interim Financial Statements for the period ended March 31, 2023
99.3	Management's Discussion and Analysis of Results of Operations and Financial Condition for the period ended March 31, 2023
99.4	Form 52-109F2 Certification of Interim Filings Full Certificate - CEO
99.5	Form 52-109F2 Certification of Interim Filings Full Certificate - CFO

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EX-99.1

	TSX, NYSE - HBM   2023 No. 8
25 York Street, Suite 800 Toronto, Ontario Canada M5J 2V5 tel  416 362-8181 fax 416 362-7844 hudbay.com	News Release

Hudbay Announces First Quarter 2023 Results

Toronto, Ontario, May 8, 2023 - Hudbay Minerals Inc. ("Hudbay" or the "company") (TSX, NYSE:HBM) today released its first quarter 2023 financial results. All amounts are in U.S. dollars, unless otherwise noted.

First Quarter Operating and Financial Results; Production and Cost Guidance Reaffirmed

• Consolidated production in the first quarter included 22,562 tonnes of copper and 47,240 ounces of gold. Consolidated cash cost and sustaining cash cost per pound of copper produced, net of by-product credits^[i], were $0.85 and $1.83, respectively, representing an improvement of 21% and 17%, respectively, compared to the fourth quarter of 2022.
• Reaffirmed full year 2023 consolidated production guidance of 100,000 to 128,000 tonnes of copper at a cash cost of $0.40 to $0.80 per pound^[ii] and sustaining cash cost of $1.35 to $2.05 per poundⁱⁱ as first quarter production was in line with quarterly cadence expectations.
• Peru operations successfully managed through a complex environment to maintain steady performance and produce 20,517 tonnes of copper in the first quarter. The Peru team remained focused on maintaining strong margins and achieved a cash cost per pound of copper produced, net of by-product creditsⁱ, of $1.36, which was overall in line with the strong cost performance in the fourth quarter of 2022. Transportation and supply chains in Peru have normalized since mid-February and Constancia's concentrate inventory is now at normal levels, well ahead of schedule.
  • Full mining activities resumed at the Pampacancha pit in February and the period of higher stripping from March to June is progressing well with mining of higher-grade ore now expected to commence late in the second quarter of 2023, slightly ahead of schedule.
• Manitoba operations produced 36,034 ounces of gold at a cash cost per ounce of gold produced, net of by-product creditsⁱ, of $938, which was affected by temporary challenges at the Lalor mine in the quarter that were partly offset by strong throughput and gold recoveries at the New Britannia mill.
  • Lalor ore production reached 4,800 tonnes per day late in the first quarter and throughout April after implementing changes to improve stope fragmentation and load-haul-dump equipment availability, together with many production optimization initiatives underway at the mine.
• First quarter net earnings and earnings per share were $5.5 million and $0.02, respectively. After adjusting for a non-cash gain of $8.2 million related to a quarterly revaluation of the closed site environmental reclamation provision and a $6.1 million revaluation loss related to the gold prepayment liability, among other items, first quarter adjusted earnings per share were $0.00.
• Operating cash flow before change in non-cash working capital was $85.6 million and adjusted EBITDAⁱ was $101.9 million in the first quarter.
• Cash and cash equivalents increased during the first quarter to $255.6 million and were positively impacted by the steady operation of the Constancia mill throughout the transportation and supply chain interruptions earlier in the quarter and the successful conversion of concentrate inventory into cash during the quarter, ahead of schedule.

TSX, NYSE - HBM    2023 No. 8

• Signed a new 10-year agreement for 100% renewable energy supply to Constancia, resulting in an expected 40% reduction in total Scope 1 and Scope 2 greenhouse gas emissions company-wide, in line with Hudbay's climate change target of a 50% reduction by 2030.

Executing on Growth Initiatives and Prudent Financial Planning

•On April 13, 2023, Hudbay announced a definitive agreement (the "Arrangement Agreement") to acquire all issued and outstanding common shares of Copper Mountain Mining Corporation ("Copper Mountain"), to create a 150,000-tonnes-per-year copper producer with three long-life mines in tier-one jurisdictions and a world-class pipeline of organic copper growth projects. The combined company will be the third largest Canadian copper producer and its complementary asset base and technical expertise is expected to unlock $30 million in annual operating efficiencies and corporate synergies over the course of three years.

•Three-year production guidance includes average annual copper production of 110,000 tonnes from Constancia and average annual gold production of more than 190,000 ounces from Snow Lake, a 23% and 30% increase, respectively, from 2022 levels.

•Received positive permitting update at Copper World from the Army Corps of Engineers ("ACOE") and the required state level permits continue to be expected in 2023. Pre-feasibility study for Phase I of the Copper World project is well-advanced and on track for mid-2023.

•Peru exploration activities resumed with a focus on drill permitting for highly prospective satellite properties while evaluating the potential for reserve expansion at Constancia and Pampacancha through future mining phases.

•Snow Lake exploration activities are prioritizing step-out drilling for new discoveries to support future growth in annual production and mine life extension.

•Lalor 2023 winter exploration program intersected numerous occurrences of disseminated copper sulfides over two kilometres down plunge, indicating the potential close proximity of copper-gold feeder zones similar to the deeper lenses at Lalor.

•The Stall recovery improvement program is on track for commissioning in May with ramp-up to higher metal recoveries by mid-2023.

•Nevada drill program is planned for late 2023 to test high-grade skarn and large porphyry targets identified through recent geophysical surveys on private land claims near Mason.

•To benefit from strong current gold prices, Hudbay deferred eight months of prepaid gold deliveries from 2023 into 2024, which is expected to increase the company's cash position by approximately $53 million in 2023 at prevailing gold prices.

•As an additional prudent measure to ensure free cash flow generation in 2023, Hudbay entered into a zero-cost collar program in April for approximately 10% of copper production expected in the second half of 2023 at a floor price of $3.95 per pound while providing upside to copper price increases up to $4.28 per pound.

•On track to deliver the discretionary spending reduction targets for 2023 with lower growth capital and exploration expenditures compared to 2022.

"We continue to be on track to achieve higher production and cash flows in 2023 as we successfully managed the recent Peru logistical interruptions to ensure steady operations at Constancia and are executing initiatives to increase the output from our Lalor mine in Snow Lake," said Peter Kukielski, President and Chief Executive Officer. "We took several prudent measures this quarter to improve our free cash flow for 2023 and we remain focused on being disciplined with capital allocation as we continue to de-risk Copper World. We are also pleased to be expanding our copper production profile with the recently announced combination with Copper Mountain, which creates a larger, more resilient and more diversified cash flow platform to prudently advance our leading organic copper growth pipeline."

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TSX, NYSE - HBM    2023 No. 8

Summary of First Quarter Results

Consolidated copper production in the first quarter of 2023 was 22,562 tonnes, a decrease compared to the fourth quarter of 2022 primarily due to lower copper grades in Peru and Manitoba, as planned. Consolidated gold production was 47,240 ounces, a decrease compared to the fourth quarter primarily due lower gold grades in Peru, partially offset by higher throughput in Snow Lake. Consolidated zinc production in the first quarter was 9,846 tonnes, higher than the fourth quarter primarily due to higher zinc grades and throughput in Snow Lake. First quarter production was in line with expectations and Hudbay has reaffirmed its 2023 production guidance for all metals.

Consolidated cash cost per pound of copper produced, net of by-product creditsⁱ, in the first quarter of 2023 improved to $0.85, compared to $1.08 in fourth quarter of 2022. This significant improvement was primarily a result of lower mining, milling and freight costs and higher by-product credits, partially offset by higher general and administrative costs and lower consolidated copper production. Consolidated sustaining cash cost per pound of copper produced, net of by-product creditsⁱ, was $1.83 in the first quarter compared to $2.21 in the fourth quarter. This decrease was primarily due to the same reasons outlined above and lower sustaining capital expenditures and capitalized exploration. Both measures are expected to further decline in future quarters with higher expected copper production and contributions from precious metals by-product credits. The company is reaffirming its full year 2023 consolidated cash cost and sustaining cash cost guidance. Consolidated all-in sustaining cash cost per pound of copper produced, net of by-product creditsⁱ, was $2.07 in the first quarter, 14% lower than $2.41 in the fourth quarter of 2022, primarily due to the same reasons outlined above.

Cash generated from operating activities in the first quarter of 2023 decreased to $71.3 million compared to $86.4 million in the fourth quarter of 2022. Protests and civil unrest in the southern Peru mining corridor impacted the company's Peru operations early in the first quarter; however, these disruptions have abated since mid-February. Transportation of Constancia's concentrate and critical supplies has since returned to normal. Operating cash flow before change in non-cash working capital was $85.6 million during the first quarter of 2023, compared to $109.1 million in the fourth quarter of 2022. This decrease was primarily the result of lower copper and zinc sales volumes, partially offset by higher realized prices of all metals.

Net earnings and earnings per share in the first quarter of 2023 were $5.5 million and $0.02, respectively, compared to a net loss and loss per share of $17.4 million and $0.07, respectively, in the fourth quarter of 2022. The 2023 first quarter results were positively impacted by a non-cash gain of $8.2 million related to the quarterly revaluation of the company's closed site environmental reclamation provision and a $5.0 million variable consideration adjustment with respect to stream revenue and accretion. These items were offset by a $6.1 million revaluation loss related to the gold prepayment liability.

Adjusted net earningsⁱ and adjusted net earnings per shareⁱ in the first quarter of 2023 were $0.1 million and $0.00 per share, respectively, after adjusting for the non-cash revaluation gain of the environmental reclamation provision and the revaluation loss on the gold prepayment liability, among other items. This compares to adjusted net earnings and adjusted net earnings per share of $2.6 million, and $0.01 in the fourth quarter of 2022. First quarter adjusted EBITDAⁱ was $101.9 million, compared to $124.7 million in the fourth quarter of 2022 because of the same factors affecting operating cash flow noted above.

As at March 31, 2023, the company's liquidity includes $255.6 million in cash as well as undrawn availability of $355.4 million under its revolving credit facilities.

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TSX, NYSE - HBM    2023 No. 8

Consolidated Financial Condition ($000s)	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Cash	255,563	225,665	213,359
Total long-term debt	1,225,023	1,184,162	1,181,119
Net debt1	969,460	958,497	967,760
Working capital2	100,987	76,534	161,846
Total assets	4,367,982	4,325,943	4,538,214
Equity	1,574,521	1,571,809	1,561,978

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 Performance 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 interim consolidated financial statements.

Consolidated Financial Performance		Three Months Ended
		Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Revenue	$000s	295,219	321,196	378,619
Cost of sales	$000s	228,706	251,520	293,351
Earnings (loss) before tax	$000s	17,430	(14,287)	88,861
Earnings (loss)	$000s	5,457	(17,441)	63,815
Basic and diluted earnings (loss) per share	$/share	0.02	(0.07)	0.24
Adjusted earnings per share1	$/share	0.00	0.01	0.02
Operating cash flow before change in non-cash working capital	$ millions	85.6	109.1	77.6
Adjusted EBITDA1	$ millions	101.9	124.7	110.2
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 Performance Measures" section of this news release.
Consolidated Production and Cost Performance		Three Months Ended
		Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Contained metal in concentrate and doré produced1
Copper	tonnes	22,562	29,305	24,702
Gold	ounces	47,240	53,920	53,956
Silver	ounces	702,809	795,015	784,357
Zinc	tonnes	9,846	6,326	22,252
Molybdenum	tonnes	289	344	207
Payable metal sold
Copper	tonnes	18,541	25,415	20,609
Gold2	ounces	49,720	47,256	48,343
Silver2	ounces	541,884	559,306	864,591
Zinc3	tonnes	5,628	8,230	17,306
Molybdenum	tonnes	254	421	213
Consolidated cash cost per pound of copper4
Cash cost	$/lb	0.85	1.08	1.11
Sustaining cash cost	$/lb	1.83	2.21	2.29
All-in sustaining cash cost	$/lb	2.07	2.41	2.54

¹ Metal reported in concentrate is prior to deductions associated with smelter contract terms.

² Includes total payable gold and silver in concentrate and doré sold.

³ For the three months ended March 31, 2023 and December 31, 2022 this metric includes payable zinc in concentrate sold. For the three months ended March 31, 2022, this metric also includes payable refined zinc metal 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.

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TSX, NYSE - HBM    2023 No. 8

Peru Operations Review

Peru Operations		Three Months Ended
		Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Constancia ore mined1	tonnes	3,403,181	5,614,918	6,908,151
Copper	%	0.34	0.40	0.32
Gold	g/tonne	0.04	0.04	0.04
Silver	g/tonne	2.52	3.48	3.22
Molybdenum	%	0.01	0.01	0.01
Pampacancha ore mined	tonnes	897,295	3,771,629	847,306
Copper	%	0.49	0.37	0.27
Gold	g/tonne	0.52	0.29	0.43
Silver	g/tonne	5.12	3.84	4.06
Molybdenum	%	0.01	0.01	0.01
Total ore mined	tonnes	4,300,476	9,386,547	7,755,457
Strip ratio2		1.84	0.97	1.10
Ore milled	tonnes	7,663,728	7,795,735	7,213,833
Copper	%	0.33	0.41	0.31
Gold	g/tonne	0.08	0.12	0.08
Silver	g/tonne	3.69	3.93	3.26
Molybdenum	%	0.01	0.01	0.01
Copper recovery	%	81.7	85.1	85.3
Gold recovery	%	56.8	69.6	59.8
Silver recovery	%	60.7	66.5	66.9
Molybdenum recovery	%	34.8	37.7	21.1
Contained metal in concentrate
Copper	tonnes	20,517	27,047	19,166
Gold	ounces	11,206	20,860	10,789
Silver	ounces	552,167	655,257	505,568
Molybdenum	tonnes	289	344	207
Payable metal sold
Copper	tonnes	16,316	23,789	16,825
Gold	ounces	11,781	15,116	14,452
Silver	ounces	392,207	411,129	636,133
Molybdenum	tonnes	254	421	213
Combined unit operating cost3,4,5	$/tonne	11.47	13.64	12.37
Cash cost5	$/lb	1.36	1.34	1.54
Sustaining cash cost5	$/lb	2.12	2.09	2.27

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 $0.7 million, or $0.09 per tonne, of COVID-related costs during the three months ended December 31, 2022 and $2.3 million, or $0.32 per tonne, during the three months ended March 31, 2022.

⁵ Combined unit operating 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 Performance Measures" section of this news release.

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TSX, NYSE - HBM    2023 No. 8

During the first quarter of 2023, the Constancia operations produced 20,517 tonnes of copper, 11,206 ounces of gold, 552,167 ounces of silver and 289 tonnes of molybdenum. Production levels were lower than the fourth quarter of 2022 due to lower grades from the processing of stockpiles, as discussed below. Due to this and higher stripping activities planned in the Pampacancha pit in the second quarter of 2023, Hudbay continues to expect 2023 Peru production to be higher in the second half of 2023 and the company is on track to achieve full year 2023 Peru production guidance.

Ore mined from Pampacancha in the first quarter of 2023 was 897,295 tonnes at record high grades of 0.49% copper and 0.52 grams per tonne gold. Despite this achievement, total ore mined in the first quarter of 2023 was lower than the fourth quarter of 2022 mainly due to the processing of stockpiles in order to conserve fuel during protests and civil unrest in Peru that occurred in early 2023. Since mid-February, transportation of Constancia's concentrate and critical supplies has returned to normal.

Full mining activities resumed in the Pampacancha pit in February and the period of higher stripping from March to June is progressing well with mining of higher-grade ore now expected to resume late in the second quarter of 2023, slightly ahead of the original schedule.

The logistical risk mitigation plans implemented during the first quarter, together with strong continued support from the local communities, enabled Hudbay's plant to continue to operate uninterrupted at full capacity supplemented with approximately 3.9 million tonnes of stockpiled ore. Ore milled during the first quarter of 2023 was relatively unchanged from the fourth quarter of 2022. Milled grades decreased in the first quarter compared to the fourth quarter due to the processing of lower-grade stockpiles as discussed above. Recoveries of all metals during the first quarter were lower than the fourth quarter due to higher levels of impurities in stockpile ore. Hudbay expects to continue to process a significant amount of stockpiles during the second quarter of 2023 while the company completes the planned three-month stripping period in the Pampacancha pit, in line with the mine plan.

Combined mine, mill and G&A unit operating costsⁱ in the first quarter of 2023 were 16% lower than the fourth quarter of 2022 primarily due to lower mining costs.

Peru's cash cost per pound of copper produced, net of by-product creditsⁱ, in the first quarter of 2023 was $1.36 and relatively unchanged from the fourth quarter of 2022. This cost measure remains slightly above the upper end of the 2023 guidance range. However, cash cost per pound of copper produced, net of by-product credits, is expected to decline and full year cash costs are expected to remain within the 2023 guidance range with higher expected copper production and contributions from precious metal by-product credits later this year.

Peru's sustaining cash cost per pound of copper produced, net of by-product creditsⁱ, in the first quarter of 2023 was $2.12 and relatively in line with the fourth quarter of 2022 as lower mining costs and capitalized exploration were offset by lower copper production.

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TSX, NYSE - HBM    2023 No. 8

Manitoba Operations Review

Manitoba Operations		Three Months Ended
		Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 20221
Lalor ore mined	tonnes	373,599	369,453	386,752
Gold	g/tonne	3.96	4.00	3.76
Copper	%	0.57	0.73	0.80
Zinc	%	3.32	2.17	4.06
Silver	g/tonne	18.24	19.37	22.94
New Britannia Mill:
Ore milled	tonnes	143,042	141,142	124,176
Gold	g/tonne	6.05	6.11	5.63
Copper	%	0.61	0.91	0.86
Zinc	%	0.76	0.67	0.85
Silver	g/tonne	22.39	22.09	22.03
Copper recovery - concentrate	%	91.7	89.3	89.0
Gold recovery - concentrate	%	62.0	56.6	61.4
Silver recovery - concentrate	%	61.9	55.4	63.4
Stall Concentrator:
Ore milled	tonnes	242,619	204,350	273,125
Gold	g/tonne	2.78	2.50	3.07
Copper	%	0.59	0.61	0.81
Zinc	%	4.81	3.43	5.78
Silver	g/tonne	17.14	19.24	23.68
Copper recovery	%	87.0	89.0	86.7
Zinc recovery	%	84.4	90.1	85.7
Gold recovery	%	61.9	62.4	55.8
Silver recovery	%	56.3	56.6	58.6
Total contained metal in concentrate and doré2
Gold	ounces	36,034	33,060	43,167
Copper	tonnes	2,045	2,258	5,536
Zinc	tonnes	9,846	6,326	22,252
Silver	ounces	150,642	139,758	278,789
Total payable metal sold
Gold3	ounces	37,939	32,140	33,891
Copper	tonnes	2,225	1,626	3,784
Zinc	tonnes	5,628	8,230	17,306
Silver3	ounces	149,677	148,177	228,458
Combined unit operating cost4,5	C$/tonne	216	241	176
Gold cash cost5	$/oz	938	922	416
Gold sustaining cash cost5	$/oz	1,336	1,795	1,187

¹ The 777 mine and Flin Flon concentrator information for March 31, 2022 is not disclosed in the table above. The operations were closed in June 2022. The relevant comparative information can be found in the Summary of Results section in the Management's Discussion and Analysis for the third quarter of 2022. Total contained metal in concentrate and doré, total payable metal sold, unit cost and cash costs for March 31, 2022 include the impact of the Flin Flon operations.

² Doré includes slag and carbon fines in the first quarter of 2023.

³ Includes total payable precious metals in concentrate and doré sold.

⁴ Reflects combined mine, mill and G&A costs per tonne of ore milled.

⁵ Combined unit operating 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 Performance Measures" section of this news release.

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TSX, NYSE - HBM    2023 No. 8

During the first quarter of 2023, the Manitoba operations produced 36,034 ounces of gold, 9,846 tonnes of zinc, 2,045 tonnes of copper and 150,642 ounces of silver. Production of gold, zinc and silver were higher than the fourth quarter of 2022 primarily due to higher throughput and higher grades. Copper production was lower than the fourth quarter due to lower head grades. With the completion of a number of key initiatives aimed to support higher production levels at Lalor, improved metal recoveries at the mills and a prioritization of mining higher gold grade zones at Lalor throughout the year, as planned, full year Manitoba production of all metals remains on track to achieve guidance ranges for 2023.

The Manitoba team continues to advance a number of key initiatives to support higher production levels and improved metal recoveries at Hudbay's Snow Lake operations and have made significant progress in building longhole inventory, optimizing the development drift size and focusing on shaft availability improvements to enable more ore to be hoisted to surface while minimizing inefficient trucking of ore via the ramp. The first phase of the Stall mill recovery project, consisting of new cyclone packs, state-of-the-art Jameson Cells on the copper and zinc circuits and process control improvements, is on track for commissioning in May with ramp-up to higher metal recoveries expected by mid-2023.

Ore mined at Lalor was slightly higher than the fourth quarter of 2022 despite being impacted by stope muck fragmentation issues that created delays at the rock breakers and low load-haul-dump equipment availability in March. The company implemented changes to improve stope fragmentation and load-haul-dump equipment availability, which together with the many production optimization initiatives underway at Lalor, resulted in Lalor achieving higher production levels of 4,800 tonnes per day late in the first quarter and throughout April.

The Stall mill processed 19% more ore in the first quarter compared to the fourth quarter of 2022, in line with the base metal ore production from Lalor. Stall recoveries were consistent with the metallurgical model for the head grades delivered. The New Britannia mill continued to achieve consistent production above its nameplate capacity in the first quarter of 2023, averaging approximately 1,590 tonnes per day. Hudbay continues to advance improvement initiatives at New Britannia with a focus on reducing reagent and grinding media consumption. These initiatives entail minimal capital outlays while further improving overall metal recoveries and copper concentrate grades.

Combined mine, mill and G&A unit operating costsⁱ in the first quarter decreased by 10% compared to the fourth quarter of 2022, reflecting higher throughput as a result of the production efficiency initiatives underway.

Cash cost per ounce of gold produced, net of by-product creditsⁱ, in the first quarter was $938, slightly higher than the fourth quarter of 2022 primarily due to lower by-product credits and higher G&A, partially offset by higher gold production. Full year cash costs are expected to decline to be within the 2023 guidance range with increasing gold production throughout the year from higher grades and throughput at Lalor and the completion of the Stall recovery project in the second quarter, as planned.

Sustaining cash cost per ounce of gold produced, net of by-product creditsⁱ, in the first quarter was $1,336, lower than the fourth quarter of 2022 primarily due to lower sustaining capital expenditures.

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TSX, NYSE - HBM    2023 No. 8

Combination with Copper Mountain to Create a Premier Americas-Focused Copper Producer

On April 13, 2023, Hudbay entered into the Arrangement Agreement to acquire all of the issued and outstanding common shares of Copper Mountain (the "Transaction").

Upon completion, the Transaction will create a premier Americas-focused copper mining company with annual copper production of 150,000 tonnes, based on 2023 production guidance, from three long-life mines and a world-class pipeline of organic copper growth projects. The combined company will represent the third largest copper producer in Canada based on 2023 estimated copper production, and its complementary assets are expected to unlock $30 million in annual operating efficiencies and corporate synergies over the course of three years. The combined company will be well-positioned to deliver sustainable cash flows with compelling organic growth and the opportunity for a valuation re-rate as a larger, more diversified copper producer with enhanced liquidity. The Transaction meets Hudbay's stringent financial and strategic acquisition criteria for pursing value accretive opportunities and the incremental diversified cash flows will further strengthen the company's balance sheet and support its deleveraging initiatives.

Under the terms of the Transaction, Copper Mountain shareholders will receive 0.381 of a Hudbay common share for each Copper Mountain common share held, representing approximately C$2.67 per Copper Mountain common share and a US$439 million equity value based on Hudbay's closing share price on April 12, 2023. The Transaction will be implemented by way of a court approved plan of arrangement under the Business Corporations Act (British Columbia). In addition to court approval, the Transaction is subject to customary closing conditions, including approval by Hudbay and Copper Mountain shareholders and approval under the Competition Act (Canada). The Transaction is expected to close by late June 2023.

100% Renewable Power Supply at Constancia

During the first quarter of 2023, Hudbay signed a new 10-year power purchase agreement with ENGIE Energía Perú for access to a 100% renewable energy supply to its Constancia operations in Peru. The agreement will come into effect in January 2026 following the expiry of Constancia's existing power supply agreement. The agreement provides several improvements over the existing power supply contract, including improved flexibility in power supply levels, lower contracted costs and guaranteed supply to meet fluctuating demand requirements and no penalties for reduced usage. Total Scope 1 and Scope 2 greenhouse gas ("GHG") emissions company-wide at Hudbay's current operations are expected to decline by 40% during the life of the contract, positioning the company well to achieve its 2030 climate change target of a 50% reduction in Scope 1 and Scope 2 GHG emissions.

Copper World Positive Permitting Update; Pre-Feasibility Study Well-Advanced

In March 2023, Hudbay received confirmation from the ACOE that its previous surrender of the Section 404 Clean Water Act permit for the former Rosemont project ("404 Permit") was formally accepted and revoked as requested. The ACOE also reaffirmed the validity of the March 2021 approved jurisdictional determinations whereby the ACOE determined there are no waters of the U.S. in the area submitted for analysis, which is consistent with internal studies that also contemplate the full Copper World area.

Hudbay surrendered the 404 Permit to the ACOE in April 2022 as there is no evidence of jurisdictional waters of the U.S. on the former Rosemont project site. In May 2022, Judge Soto from the U.S. District Court for the District of Arizona issued a favourable ruling that affirmed Hudbay's surrender of the 404 Permit was effective and that the new Copper World project is not connected to the previous federal permitting process.

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Hudbay commenced the permitting process for Copper World with the approval of a Mined Land Reclamation Plan in May 2022. This approval by the Arizona State Mine Inspector was challenged in state court but the challenge was dismissed in May 2023 as having no basis.

In late 2022, Hudbay submitted the state-level applications for an Aquifer Protection Permit and an Air Quality Permit to the Arizona Department of Environmental Quality. The company continues to expect to receive these two outstanding state permits in 2023.

In May 2023, the Arizona Corporation Commission approved an amendment to the Certificate of Environmental Compatibility ("CEC") authorizing the electric transmission line to site. The CEC was granted for the Rosemont project in 2012 and the amendment removed the requirements for federal permits so that the CEC can be used to construct the transmission line for Copper World.

Clearing and grading work to prepare for the development of Copper World continues at site, including the construction of roads and other facilities. Phase I of Copper World reflects an operation with processing infrastructure on Hudbay's private lands and mining occurring on patented mining claims, requiring only state and local permits. Pre-feasibility activities for Phase I are well-advanced and a pre-feasibility study is expected to be released in mid-2023. Upon receipt of the state level permits, Hudbay expects to evaluate a bulk sampling program at Copper World to continue to de-risk the project by testing grade continuity, variable cut-off effectiveness and metallurgical strategies. The company also intends to initiate a minority joint venture partner process following receipt of permits, which will allow the potential joint venture partner to participate in the funding of definitive feasibility study activities in 2024 as well as in the final project design for Copper World.

Continued Focus on Free Cash Flow Generation

Hudbay was successful in ensuring steady operation of the Constancia mill throughout the Peru transportation and supply chain interruptions experienced earlier in the quarter. This was achieved through effective logistical risk mitigation plans and with the continued strong support from the local communities. Despite building up excess concentrate inventories at site in February, the company successfully reduced concentrate inventories throughout March, well ahead of schedule, which improved sales volumes and cash flow during the quarter.

With a focus on generating positive cash flow and strong returns on invested capital in 2023, Hudbay is committed to deleveraging and disciplined capital allocation. In an effort to receive full exposure to current strong gold prices, the company amended its gold forward sale and prepay agreements during the first quarter of 2023 to defer eight months of deliveries starting with February 2023. Deliveries of the outstanding 37,500 ounces of gold will resume in fixed monthly amounts starting October 2023 and continue until August 2024. The deferral of gold deliveries is expected to increase the company's cash position in 2023 by approximately $53 million at prevailing gold prices as part of its continued focus on reducing net debt.

As an additional prudent measure to ensure free cash flow generation and continued financial discipline in 2023, Hudbay successfully extended its existing quotational period hedging program in the first quarter for approximately 8,000 tonnes of contained copper in the previously unsold concentrate inventory in Peru to lock in prevailing copper prices. In addition, in April 2023, the company entered into a zero-cost collar program for approximately 10% of copper production expected in the second half of 2023. The program is for 1,200 tonnes of copper per month for six months starting in July 2023 and establishes a floor price of $3.95 per pound while providing upside to increases in the copper price up to a maximum of $4.28 per pound.

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The company is on track to deliver its discretionary spending reduction targets by reducing growth capital and exploration spending in Arizona, Manitoba and Peru in 2023 compared to 2022. Total growth capital expenditures in the first quarter of 2023 were approximately $16.3 million, a 22% reduction from the fourth quarter of 2022. Total exploration expenses for 2023 are on track to be in line with annual guidance of $20 million, a 42% decrease from 2022 levels.

Annual Reserve and Resource Update

Hudbay provided its annual mineral reserve and resource update on March 30, 2023. Current mineral reserve estimates at Constancia total 492 million tonnes at 0.30% copper with approximately 1.5 million tonnes of contained copper. The expected mine life of Constancia has been maintained and extends until 2038. The copper contained in measured and indicated mineral resources has increased in 2023 due to success in converting inferred mineral resources.

Current mineral reserve estimates in Snow Lake total 18 million tonnes with approximately 2.1 million ounces in contained gold, and the expected mine life of the Snow Lake operations has been maintained and extends until 2038. With the Snow Lake operations achieving higher production levels after the full ramp-up of the New Britannia mill in 2022 and the transition of the Flin Flon workforce and equipment to the Lalor mine, exploration activities are now prioritizing step-out drilling to identify opportunities for meaningful additions to the mineral resource base to support future growth. Total gold contained in inferred resources was unchanged at 1.7 million ounces, which provides the potential to maintain strong production levels beyond 2030 and further extend the mine life in Snow Lake.

The company released its updated three-year production guidance with its annual mineral reserve and resource update. Annual production at the Constancia operations is expected to average approximately 110,000 tonnes of copper and 87,000 ounces of gold over the next three years, representing a 23% and 49% increase, respectively, from 2022 levels. Annual gold production from Snow Lake is expected to average more than 190,000 ounces over the next three years, which represents a further increase of 30% from 2022 levels.

Exploration Update

Constancia and Pampacancha In-Mine Exploration

Hudbay is completing a limited drill program and technical evaluations at the Constancia deposit to confirm the economic viability of adding an additional mining phase to the current mine plan that would convert a portion of the mineral resources to mineral reserves. The company is also completing a drill program at the Pampacancha deposit to test mineral reserve extension potential. The results from these drill programs and technical and economic evaluations are expected to be incorporated in the next annual mineral reserve and resource update.

Maria Reyna and Caballito Exploration

Hudbay controls a large, contiguous block of mineral rights with the potential to host satellite mineral deposits in close proximity to the Constancia processing facility, including the past producing Caballito property and the highly prospective Maria Reyna property. The company commenced early exploration activities at Maria Reyna and Caballito after completing a surface rights exploration agreement with the community of Uchucarcco in August 2022. Surface investigation activities together with baseline environmental and archaeological activities necessary to support drill permit applications have been completed. Drill permit applications are expected to be submitted in the coming months. Surface mapping and geochemical sampling confirm that both Caballito and Maria Reyna host sulfide and oxide rich copper mineralization in skarns, hydrothermal breccias and large porphyry intrusive bodies.

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Lalor Near-Mine Exploration

Hudbay commenced a winter drill program in January 2023 with four drill rigs testing the down-plunge gold and copper extensions of the Lalor deposit, in the first step-out drilling in the deeper zones at Lalor since the initial discovery of the gold and copper-gold zones in 2009 and 2010. This initial campaign consisted of eight widely spaced drill holes over a distance of two kilometres. Seven of the drill holes reached their planned minimum depth of 1,500 metres prior to the spring thaw that necessitated an early end of the program. All these drill holes intersected the zone of strong alteration known to host the Lalor mineralization and have shown many occurrences of disseminated copper sulfides indicating the potential close proximity of one or more higher grade copper-gold feeder zones similar to Lens 27 currently in production at Lalor. Furthermore, three of the holes have shown better mineral endowment with several intercepts of a minimum of four metres of copper mineralization. Although assay results are pending, these initial results are very encouraging indications that the rocks hosting the rich Cu-Au mineralization at Lalor continue down plunge. Geophysical borehole surveying will be completed on all drill holes and will help refine the targets for the next phase of drilling to be conducted in early 2024.

One additional drill rig is testing a geophysical anomaly located within 400 metres of existing Lalor underground infrastructure. Four drill holes were completed during the winter drill program and assay results from base metal and copper-gold mineralized intercepts identified from core logging are pending.

Flin Flon Tailings Reprocessing Opportunity

In 2021, Hudbay identified the opportunity to reprocess Flin Flon tailings where in excess of 100 million tonnes of tailings have been deposited for over 90 years. The company completed confirmatory drilling in 2022 which covered about two-thirds of the facility. The results indicated higher zinc, copper and silver grades than predicted from historical mill records while confirming the historical gold grade. Hudbay is completing metallurgical test work and evaluating metallurgical technologies to assess the processing viability of the Flin Flon tailings.

Mason Exploration

The Mason project is a large greenfield copper deposit located in the historic Yerington District of Nevada and is one of the largest undeveloped copper porphyry deposits in North America. Hudbay completed a PEA in 2021 which demonstrated robust project economics from a 27-year mine life operation. There is opportunity to further enhance the project economics through exploration for higher grade satellite deposits on the company's prospective land package near Mason, including Mason Valley. The Mason Valley property hosts several historical underground copper mines that were in production in the early 1900s. Much of the Mason Valley property is located on Hudbay's wholly owned private lands within 15 kilometres of the planned processing infrastructure for the Mason project and contains highly prospective skarn mineralization. A conductivity-resistivity IP ground survey conducted in the fourth quarter of 2022 was successful in identifying the mineralization associated with the historical mines and confirmed the potential for both high-grade skarn targets as well as a large porphyry target below the historical mines. These results, 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 these targets in late 2023.

Senior Management Team Appointments

In March 2023, Hudbay promoted Javier Del Rio to Senior Vice President, South America and USA and Olivier Tavchandjian to Senior Vice President, Exploration and Technical Services. In March 2023, Hudbay appointed Warren Flannery as Vice President, Business Planning and Reclamation.

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Mr. Del Rio joined Hudbay in 2010 and has been instrumental in establishing and growing the company's Peruvian business, and in early 2022, he assumed responsibility for Hudbay's Arizona business unit. He has over 30 years of mining experience and prior to joining Hudbay, he held management positions in business planning, optimization processes and business analysis with Newmont Mining Corporation in the USA and Peru.

Mr. Tavchandjian has been a key member of Hudbay's senior management team since 2017, leading Hudbay's exploration strategy and adding significant value through growing the mineral resources and reserves at all the company's key assets. He assumed responsibility for Hudbay's technical services function in April 2022, has more than 30 years of experience in strategic and life of mine planning and has provided invaluable support to the operations and corporate development teams.

Mr. Flannery is responsible for capital planning and operations strategy, as well as reclamation and non-producing facilities. He is an experienced mining professional with nearly 30 years of extensive experience in mine operations, planning and project development at global mining companies, including Vale Inco, Barrick, PotashCorp and Falconbridge. Prior to joining Hudbay, he was head of the Mining Technical group at CIBC's global mining corporate and investment banking arm for ten years, working on a broad range of capital markets financing and advisory mandates.

Website Links

Hudbay:

www.hudbay.com

Management's Discussion and Analysis:

http://www.hudbayminerals.com/files/doc_financials/2023/Q1/MDA523.pdf

Financial Statements:

http://www.hudbayminerals.com/files/doc_financials/2023/Q1/FS523.pdf

Conference Call and Webcast

Date:	Tuesday, May 9, 2023
Time:	8:30 a.m. ET
Webcast:	www.hudbay.com
Dial in:	1-416-915-3239 or 1-800-319-4610

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TSX, NYSE - HBM    2023 No. 8

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, Senior Vice President, Exploration and Technical Services. Mr. Tavchandjian is a qualified person pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

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.

Non-IFRS Financial Performance Measures

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.

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

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TSX, NYSE - HBM    2023 No. 8

Adjusted Net Earnings (Loss) Reconciliation

	Three Months Ended
(in $ millions)	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022
Profit (loss) for the period	5.4		(17.4	)	63.8
Tax expense	12.0		3.1		25.0
Profit (loss) before tax	17.4		(14.3	)	88.8
Adjusting items:
Mark-to-market adjustments 1	6.8		10.7		10.5
Peru inventory reversal	-		-		(0.5	)
Foreign exchange loss	0.3		0.2		1.5
Variable consideration adjustment - stream revenue and accretion	(5.0	)	-		(5.8	)
Re-evaluation adjustment - environmental provision4	(8.2	)	13.5		(79.9	)
Evaluation expenses	-		0.1		7.0
Restructuring charges - Manitoba 2	-		1.0		0.7
Loss on disposal of investments	0.7		0.5		-
Post-employment plan (curtailment) / past service cost adjustment	-		(2.4	)	-
Loss on disposal of plant and equipment and non-current assets - Manitoba & Arizona	0.1		0.4		-
Changes in other provisions (non-capital)3	-		5.8		-
Adjusted earnings before income taxes	12.1		15.5		22.3
Tax expense	(12.0	)	(3.1	)	(25.0	)
Tax impact on adjusting items	-		(9.8	)	7.9
Adjusted net earnings	0.1		2.6		5.2
Adjusted net earnings ($/share)	0.00		0.01		0.02
Basic weighted average number of common shares outstanding (millions)	262.0		262.0		261.7

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 Includes closure cost for the Flin Flon operations.

³ Includes changes in other provisions related to corporate restructuring costs and costs which do not pertain to operations.

⁴ Changes from movements to environmental reclamation provisions are primarily related to the Flin Flon operations, which were fully depreciated as of June 30, 2022, as well as other Manitoba non-operating sites.

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Adjusted EBITDA Reconciliation

	Three Months Ended
(in $ millions)	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022
Profit (loss) for the period	5.4		(17.4	)	63.8
Add back:
Tax expense	12.0		3.1		25.0
Net finance expense	35.0		36.7		36.7
Other expenses	5.0		18.5		9.0
Depreciation and amortization	67.4		79.4		81.1
Amortization of deferred revenue and variable consideration adjustment	(15.9	)	(10.4	)	(28.2	)
	108.9		109.9		187.4
Adjusting items (pre-tax):
Re-evaluation adjustment - environmental provision	(8.2	)	13.5		(79.9	)
Peru inventory reversal	-		-		(0.5	)
Post-employment plan (curtailment)/past service cost adjustment	-		(2.4	)	-
Share-based compensation expense1	1.2		3.7		3.2
Adjusted EBITDA	101.9		124.7		110.2

¹ Share-based compensation expenses reflected in cost of sales and selling and administrative expenses.

Net Debt Reconciliation

(in $ thousands)
	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022
Total long-term debt	1,225,023		1,184,162		1,181,119
Cash	(255,563	)	(225,665	)	(213,359	)
Net debt	969,460		958,497		967,760

Copper Cash Cost Reconciliation

Consolidated	Three Months Ended
Net pounds of copper produced1
(in thousands)	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Peru	45,233	59,628	42,254
Manitoba	4,508	4,978	12,205
Net pounds of copper produced	49,741	64,606	54,459

¹ Contained copper in concentrate.

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Consolidated	Three Months Ended
	Mar. 31, 2023				Dec. 31, 2022				Mar. 31, 2022
Cash cost per pound of copper produced	$000s		$/lb		$000s		$/lb		$000s		$/lb
Mining	64,538		1.30		79,759		1.23		87,835		1.61
Milling	61,039		1.23		65,591		1.02		69,164		1.27
Refining (zinc)	-		-		-		-		18,376		0.34
G&A	26,555		0.53		21,269		0.33		38,993		0.72
Onsite costs	152,132		3.06		166,619		2.58		214,368		3.94
Treatment & refining	18,495		0.37		19,968		0.31		12,083		0.22
Freight & other	17,776		0.36		22,055		0.34		15,607		0.29
Cash cost, before by-product credits	188,403		3.79		208,642		3.23		242,058		4.45
By-product credits	(146,111	)	(2.94	)	(138,990	)	(2.15	)	(181,673	)	(3.34	)
Cash cost, net of by-product credits	42,292		0.85		69,652		1.08		60,385		1.11

Consolidated	Three Months Ended
	Mar. 31, 2023			Dec. 31, 2022			Mar. 31, 2022
Supplementary cash cost information	$000s		$/lb1	$000s		$/lb1	$000s		$/lb1
By-product credits2:
Zinc	17,374		0.35	24,744		0.38	67,129		1.23
Gold3	93,479		1.88	76,336		1.18	84,174		1.55
Silver3	11,998		0.24	9,592		0.15	18,639		0.34
Molybdenum & other	23,260		0.47	28,318		0.44	11,731		0.22
Total by-product credits	146,111		2.94	138,990		2.15	181,673		3.34
Reconciliation to IFRS:
Cash cost, net of by-product credits	42,292			69,652			60,385
By-product credits	146,111			138,990			181,673
Treatment and refining charges	(18,495	)		(19,968	)		(12,083	)
Share-based compensation expense	79			490			448
Inventory adjustments	-			7			(461	)
Past service pension cost (curtailment)	-			(2,384	)		-
Change in product inventory	(9,409	)		(16,425	)		(20,920	)
Royalties	706			1,750			3,218
Depreciation and amortization4	67,422			79,408			81,091
Cost of sales5	228,706			251,520			293,351

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 March 31, 2023 the variable consideration adjustments amounted to an expense of $4,885, the three months ended December 31, 2022 - $nil, and for the three months ended March 31, 2022 - $3,245.

⁴ Depreciation is based on concentrate sold.

⁵ As per IFRS financial statements, excluding impairment adjustments.

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Peru	Three Months Ended
(in thousands)	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Net pounds of copper produced1	45,233	59,628	42,254

¹ Contained copper in concentrate.

Peru	Three Months Ended
	Mar. 31, 2023				Dec. 31, 2022				Mar. 31, 2022
Cash cost per pound of copper produced	$000s		$/lb		$000s		$/lb		$000s		$/lb
Mining	26,786		0.59		41,647		0.70		28,402		0.67
Milling	46,191		1.03		50,723		0.85		47,655		1.13
G&A	16,466		0.36		14,817		0.25		16,100		0.38
Onsite costs	89,443		1.98		107,187		1.80		92,157		2.18
Treatment & refining	10,603		0.24		11,962		0.20		7,585		0.18
Freight & other	12,427		0.27		15,607		0.26		9,477		0.22
Cash cost, before by-product credits	112,473		2.49		134,756		2.26		109,219		2.58
By-product credits	(50,899	)	(1.13	)	(54,563	)	(0.92	)	(43,997	)	(1.04	)
Cash cost, net of by-product credits	61,574		1.36		80,193		1.34		65,222		1.54
Peru	Three Months Ended
	Mar. 31, 2023				Dec. 31, 2022				Mar. 31, 2022
Supplementary cash cost information	$000s		$/lb1		$000s		$/lb1		$000s		$/lb1
By-product credits2:
Gold3	19,301		0.43		19,934		0.33		21,712		0.51
Silver3	8,577		0.19		7,025		0.12		12,991		0.31
Molybdenum	23,021		0.51		27,604		0.47		9,294		0.22
Total by-product credits	50,899		1.13		54,563		0.92		43,997		1.04
Reconciliation to IFRS:
Cash cost, net of by-product credits	61,574				80,193				65,222
By-product credits	50,899				54,563				43,997
Treatment and refining charges	(10,603	)			(11,962	)			(7,585	)
Inventory adjustments	-				-				(461	)
Share-based compensation expenses	(14	)			95				98
Change in product inventory	(11,135	)			(15,685	)			(4,772	)
Royalties	665				1,656				854
Depreciation and amortization4	41,960				58,256				48,362
Cost of sales5	133,346				167,116				145,715

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.

⁴ Depreciation is based on concentrate sold.

⁵ As per IFRS financial statements.

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Copper Sustaining and All-in Sustaining Cash Cost Reconciliation

Consolidated	Three Months Ended
	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022
All-in sustaining cash cost per pound of copper produced	$000s	$/lb	$000s	$/lb	$000s	$/lb
Cash cost, net of by-product credits	42,292	0.85	69,652	1.08	60,385	1.11
Cash sustaining capital expenditures	47,869	0.96	60,002	0.92	60,963	1.12
Capitalized exploration	-	-	11,500	0.18	-	-
Royalties	706	0.02	1,750	0.03	3,218	0.06
Sustaining cash cost, net of by-product credits	90,867	1.83	142,904	2.21	124,566	2.29
Corporate selling and administrative expenses & regional costs	10,215	0.20	11,876	0.19	13,060	0.24
Accretion and amortization of decommissioning and community agreements1	1,958	0.04	722	0.01	721	0.01
All-in sustaining cash cost, net of by-product credits	103,040	2.07	155,502	2.41	138,347	2.54
Reconciliation to property, plant and equipment additions:
Property, plant and equipment additions	33,554		76,933		39,399
Capitalized stripping net additions	26,984		15,169		24,146
Total accrued capital additions	60,538		92,102		63,545
Less other non-sustaining capital costs2	19,850		41,850		20,604
Total sustaining capital costs	40,688		50,252		42,941
Capitalized lease cash payments - operating sites	4,702		5,848		9,259
Community agreement cash payments	1,189		2,854		3,772
Accretion and amortization of decommissioning and restoration obligations3	1,290		1,048		4,991
Cash sustaining capital expenditures	47,869		60,002		60,963

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 and growth capital expenditures.

³ Includes amortization of decommissioning and restoration PP&E assets and accretion of decommissioning and restoration liabilities related to producing sites.

19

TSX, NYSE - HBM    2023 No. 8

Peru	Three Months Ended
	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022
Sustaining cash cost per pound of copper produced	$000s	$/lb	$000s	$/lb	$000s	$/lb
Cash cost, net of by-product credits	61,574	1.36	80,193	1.34	65,222	1.54
Cash sustaining capital expenditures	33,564	0.74	31,240	0.53	30,039	0.71
Capitalized exploration1	-	-	11,500	0.19	-	-
Royalties	665	0.02	1,656	0.03	854	0.02
Sustaining cash cost per pound of copper produced	95,803	2.12	124,589	2.09	96,115	2.27

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

Gold Cash Cost and Sustaining Cash Cost Reconciliation

Manitoba	Three Months Ended
(in thousands)	Mar. 31 2023	Dec. 31, 2022	Mar. 31 2022
Net ounces of gold produced1	36,034	33,060	43,167

¹ Contained gold in concentrate and doré.

Manitoba	Three Months Ended
	Mar. 31, 2023				Dec. 31, 2022				Mar. 31, 2022
Cash cost per ounce of gold produced	$000s		$/oz		$000s		$/oz		$000s		$/oz
Mining	37,752		1,048		38,112		1,153		59,433		1,377
Milling	14,848		412		14,868		450		21,509		498
Refining (zinc)	-		-		-		-		18,376		426
G&A	10,089		280		6,452		195		22,893		530
Onsite costs	62,689		1,740		59,432		1,798		122,211		2,831
Treatment & refining	7,892		219		8,006		242		4,498		104
Freight & other	5,349		148		6,448		195		6,130		142
Cash cost, before by-product credits	75,930		2,107		73,886		2,235		132,839		3,077
By-product credits	(42,131	)	(1,169	)	(43,407	)	(1,313	)	(114,874	)	(2,661	)
Gold cash cost, net of by-product credits	33,799		938		30,479		922		17,965		416

20

TSX, NYSE - HBM    2023 No. 8

Manitoba	Three Months Ended
	Mar. 31, 2023			Dec. 31, 2022			Mar. 31, 2022
Supplementary cash cost information	$000s		$/oz1	$000s		$/oz1	$000s		$/oz1
By-product credits2:
Zinc	17,374		482	24,744		748	67,129		1,555
Copper	21,097		585	15,382		465	39,660		919
Silver3	3,421		95	2,567		78	5,648		131
Other	239		7	714		22	2,437		56
Total by-product credits	42,131		1169	43,407		1,313	114,874		2,661
Reconciliation to IFRS:
Cash cost, net of by-product credits	33,799			30,479			17,965
By-product credits	42,131			43,407			114,874
Treatment and refining charges	(7,892	)		(8,006	)		(4,498	)
Inventory adjustments	-			7			-
(Curtailment)/past service cost	-			(2,384	)		-
Share-based compensation expenses	93			395			350
Change in product inventory	1,726			(740	)		(16,148	)
Royalties	41			94			2,364
Depreciation and amortization4	25,462			21,152			32,729
Cost of sales5	95,360			84,404			147,636

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.

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, excluding impairment adjustments.

Manitoba	Three Months Ended
	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022
Sustaining cash cost per pound of gold produced	$000s	$/oz	$000s	$/oz	$000s	$/oz
Gold cash cost, net of by-product credits	33,799	938	30,479	922	17,965	416
Cash sustaining capital expenditures	14,304	397	28,762	870	30,924	716
Royalties	41	1	94	3	2,364	55
Sustaining cash cost per pound of gold produced	48,144	1,336	59,335	1,795	51,253	1,187

21

TSX, NYSE - HBM    2023 No. 8

Combined Unit Cost Reconciliation

Peru	Three Months Ended
(in thousands except ore tonnes milled and unit cost per tonne)
Combined unit cost per tonne processed	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022
Mining	26,786		41,647		28,402
Milling	46,191		50,723		47,655
G&A1	16,466		14,817		16,100
Other G&A2	(1,539	)	(152	)	(571	)
	87,904		107,035		91,586
Less: Covid related costs	-		689		2,321
Unit cost	87,904		106,346		89,265
Tonnes ore milled	7,664		7,796		7,214
Combined unit cost per tonne	11.47		13.64		12.37
Reconciliation to IFRS:
Unit cost	87,904		106,346		89,265
Freight & other	12,427		15,607		9,477
Covid related costs	-		689		2,321
Other G&A	1,539		152		571
Share-based compensation expenses	(14	)	95		98
Inventory adjustments	-		-		(461	)
Change in product inventory	(11,135	)	(15,685	)	(4,772	)
Royalties	665		1,656		854
Depreciation and amortization	41,960		58,256		48,362
Cost of sales3	133,346		167,116		145,715

¹ G&A as per cash cost reconciliation above.

² Other G&A primarily includes profit sharing costs.

³ As per IFRS financial statements, excluding impairment adjustments.

22

TSX, NYSE - HBM    2023 No. 8

Manitoba	Three Months Ended
(in thousands except tonnes ore milled and unit cost per tonne)
Combined unit cost per tonne processed	Mar. 31, 2023		Dec. 31, 2022		Mar. 31, 2022
Mining	37,752		38,112		59,433
Milling	14,848		14,868		21,509
G&A1	10,089		6,452		22,893
Less: G&A allocated to zinc metal production	-		-		(13,407	)
Less: Other G&A related to profit sharing costs	(1,139	)	1,939		-
Unit cost	61,550		61,371		90,428
USD/CAD implicit exchange rate	1.35		1.36		1.27
Unit cost - C$	83,193		83,363		114,504
Tonnes ore milled	385,661		345,492		651,333
Combined unit cost per tonne - C$	216		241		176
Reconciliation to IFRS:
Unit cost	61,550		61,371		90,428
Freight & other	5,349		6,448		6,130
Refined zinc	-		-		18,376
G&A allocated to zinc metal production	-		-		13,407
Other G&A related to profit sharing	1,139		(1,939	)	-
Share-based compensation expenses	93		395		350
Inventory adjustments	-		7		-
(Curtailment) / past service pension	-		(2,384	)	-
Change in product inventory	1,726		(740	)	(16,148	)
Royalties	41		94		2,364
Depreciation and amortization	25,462		21,152		32,729
Cost of sales2	95,360		84,404		147,636

¹ G&A as per cash cost reconciliation above.

² As per IFRS financial statements, excluding impairment adjustments.

23

TSX, NYSE - HBM    2023 No. 8

Forward-Looking Information

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, statements with respect to the consummation and timing of the Transaction; approval by Copper Mountain's and Hudbay's shareholders; the satisfaction of the conditions precedent to the consummation of the Transaction; the strengths, characteristics and potential operating efficiencies and corporate synergies resulting from the Transaction; growth potential and expectations regarding the timing, receipt and anticipated effects of court, regulatory and other consents and approvals; the impact of the Transaction on shareholders of Hudbay and Copper Mountain and other stakeholders and other anticipated benefits of the Transaction, statements regarding the company's production, cost and capital and exploration expenditure guidance, expectations regarding reductions in discretionary spending, capital expenditures and net debt, expectations regarding the impact of inflationary pressures on the company's cost of operations, financial condition and prospects, the expected results and benefits of the new 10-year agreement for 100% renewable energy supply to Constancia, expectations regarding the company's cash balance and liquidity for 2023, expectations regarding the Copper World project, including with respect to the company's plans for a pre-feasibility study, the estimated timelines and pre-requisites for sanctioning the project and the pursuit of a potential minority joint venture partner, expectations regarding the permitting requirements for the Copper World project and permitting related litigation, the company's ability to increase the mining rate at Lalor, the anticipated timing for completing the Stall recovery improvement program and anticipated benefits therefrom, expectations regarding the ability to conduct exploration work on the Maria Reyna and Caballito properties and to advance related drill plans, the timing of mining higher-grade ore in the Pampacancha pit and the company's expectations resulting therefrom, expectations regarding the potential impact of short-term mine plan changes implemented at Constancia, expectations regarding the ability for the company to reduce greenhouse gas emissions, the company's evaluation of opportunities to reprocess tailings, expectations regarding the prospective nature of the Maria Reyna and Caballito properties, the anticipated impact of brownfield growth projects on the company's performance, anticipated expansion opportunities in Snow Lake, anticipated drill programs and exploration activities, 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 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 has identified and were applied in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to:

• the ability to satisfy the conditions to closing the Transaction, including the receipt of shareholder, regulatory and court approvals;
• that no third party would make a superior proposal to the Transaction;
• that the Arrangement Agreement would not be terminated in certain circumstances;

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TSX, NYSE - HBM    2023 No. 8

• the ability to achieve production and cost guidance;
• the ability to achieve discretionary spending reductions without impacting operations;
• no significant interruptions to operations due to social or political unrest in the regions Hudbay operates, including the navigation of the complex environment in Peru;
• no interruptions to the company's plans for advancing the Copper World project;
• the ability to ramp up exploration in respect of the Maria Reyna and Caballito properties and to advance related drill plans;
• the ability to increase the mining rate at Lalor;
• the success of mining, processing, exploration and development activities;
• the scheduled maintenance and availability of the company's processing facilities;
• the accuracy of geological, mining and metallurgical estimates;
• anticipated metals prices and the costs of production;
• the supply and demand for metals the company produces;
• the supply and availability of all forms of energy and fuels at reasonable prices;
• no significant unanticipated operational or technical difficulties;
• the execution of the company's business and growth strategies, including the success of its strategic investments and initiatives;
• the availability of additional financing, if needed;
• the ability to complete project targets on time and on budget and other events that may affect the company's ability to develop its projects;
• the timing and receipt of various regulatory and governmental approvals;
• the availability of personnel for the company's exploration, development and operational projects and ongoing employee relations;
• maintaining good relations with the labour unions that represent certain of the company's employees in Manitoba and Peru;
• maintaining good relations with the communities in which the company operates, including the neighbouring Indigenous communities and local governments;
• no significant unanticipated challenges with stakeholders at the company's various projects;
• no significant unanticipated events or changes relating to regulatory, environmental, health and safety matters;
• no contests over title to the company's properties, including as a result of rights or claimed rights of Indigenous peoples or challenges to the validity of the company's unpatented mining claims;
• the timing and possible outcome of pending litigation and no significant unanticipated litigation;
• certain tax matters, including, but not limited to current tax laws and regulations, changes in taxation policies and the refund of certain value added taxes from the Canadian and Peruvian governments; and
• no significant and continuing adverse changes in general economic conditions or conditions in the financial markets (including commodity prices and foreign exchange rates).

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 related to failure to receive approval of the Transaction by Hudbay or Copper Mountain shareholders, the required court, regulatory and other consents and approvals to effect the Transaction, the potential of a third party making a superior proposal to the Transaction, the possibility that the Arrangement Agreement could be terminated under certain circumstances, political and social risks in the regions Hudbay operates, including the uncertainty with respect to the political and social environment in Peru and its potential impact on the company's mining operations (as further described below), 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 Copper World project, including in relation to permitting, litigation, project delivery and financing risks, risks related to the Lalor mine plan, including the ability to convert inferred mineral resource estimates to higher confidence categories, 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 the company's reserves, volatile financial markets and interest rates that may affect the company's 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 company's 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 the company's most recent Annual Information Form and under the heading "Financial Risk Management" in the company's most recent management's discussion and analysis.

25

TSX, NYSE - HBM    2023 No. 8

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.

About Hudbay

Hudbay (TSX, NYSE: HBM) is a diversified mining company with long-life assets in North and South America. The company's Constancia operations in Cusco (Peru) produce copper with gold, silver and molybdenum by-products. Its Snow Lake operations in Manitoba (Canada) produce gold with copper, zinc and silver by-products. Hudbay has an organic pipeline that includes the Copper World project in Arizona and the Mason project in 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 Performance Measures" section of this news release.
ⁱⁱ Consolidated cash cost and sustaining cash cost guidance per pound of copper produced, net of by-product credits.

26

EX-99.2

Unaudited Condensed Consolidated Interim Financial Statements

(In US dollars)

HUDBAY MINERALS INC.

For the three months ended March 31, 2023 and 2022

HUDBAY MINERALS INC.
Condensed Consolidated Interim Balance Sheets
(Unaudited and in thousands of US dollars)

			Mar. 31,			Dec. 31,
	Note		2023			2022
Assets
Current assets
Cash		$	255,563		$	225,665
Trade and other receivables	6		102,763			113,182
Inventories	7		187,438			155,012
Prepaid expenses and other current assets			19,272			20,106
Other financial assets	8		1,582			1,063
Taxes receivable			5,538			9,153
			572,156			524,181
Receivables	6		13,435			13,329
Inventories	7		41,288			50,725
Other financial assets	8		9,619			9,799
Intangibles and other assets	9		48,002			49,841
Property, plant and equipment	10		3,546,370			3,552,430
Deferred tax assets			137,112			125,638
		$	4,367,982		$	4,325,943
Liabilities
Current liabilities
Trade and other payables		$	201,041		$	211,467
Taxes payable			8,873			4,051
Other liabilities	11		66,403			46,806
Other financial liabilities	12		24,333			33,301
Gold prepayment liability	13		32,255			71,208
Lease liabilities	14		17,620			16,156
Current portion of long-term debt	15		40,000			-
Deferred revenue	16		80,644			64,658
			471,169			447,647
Other financial liabilities	12		51,134			52,446
Gold prepayment liability	13		38,607			-
Lease liabilities	14		39,045			44,863
Long-term debt	15		1,185,023			1,184,162
Deferred revenue	16		379,538			404,880
Pension obligations			3,180			3,262
Other employee benefits			90,811			86,340
Environmental and other provisions	17		276,954			279,240
Deferred tax liabilities			258,000			251,294
			2,793,461			2,754,134
Equity
Share capital	19b		1,780,892			1,780,774
Reserves			25,583			26,538
Retained earnings			(231,954	)		(235,503	)
			1,574,521			1,571,809
		$	4,367,982		$	4,325,943
Commitments (note 22)

1

HUDBAY MINERALS INC.
Condensed Consolidated Interim Income Statements
(Unaudited and in thousands of US dollars, except per share amounts)

			Three months ended March 31,
	Note		2023			2022
Revenue	5a	$	295,219		$	378,619
Cost of sales
Mine operating costs			161,284			212,260
Depreciation and amortization	5b		67,422			81,091
			228,706			293,351
Gross profit			66,513			85,268
Selling and administrative expenses			9,146			11,841
Exploration expenses			8,242			18,630
Other expenses	3, 5c		4,959			9,048
Re-evaluation adjustment - environmental provision	17		(8,240	)		(79,856	)
Results from operating activities			52,406			125,605
Net interest expense on long term debt	5d		17,007			16,898
Accretion on streaming arrangements	5d		6,501			4,836
Change in fair value of financial instruments	5d		5,597			7,216
Other net finance costs	5d		5,871			7,794
Net finance expense			34,976			36,744
Profit before tax			17,430			88,861
Tax expense	18		11,973			25,046
Profit for the period		$	5,457		$	63,815
Profit per share
Basic and diluted		$	0.02		$	0.24
Weighted average number of common shares outstanding:
Basic	20		262,030,805			261,689,263
Diluted	20		262,324,929			262,267,240

2

HUDBAY MINERALS INC.
Condensed Consolidated Interim Statements of Cash Flows
(Unaudited and in thousands of US dollars)

			Three months ended March 31,
	Note		2023			2022
Cash generated from operating activities:
Profit for the period		$	5,457		$	63,815
Tax expense	18		11,973			25,046
Items not affecting cash:
Depreciation and amortization	5b		67,752			81,533
Share-based compensation			1,195			3,303
Net finance expense	5d		34,976			36,744
Inventory adjustments	7		-			(461	)
Amortization of deferred revenue and variable consideration	5a		(15,857	)		(28,219	)
Pension and other employee benefit payments, net of accruals			3,074			(708	)
Re-evaluation adjustment - environmental obligation	17		(8,240	)		(79,856	)
Decommissioning and restoration payments			(904	)		(3,341	)
Other	23a		(4,860	)		(4,052	)
Taxes paid			(8,958	)		(16,189	)
Operating cash flow before changes in non-cash working capital			85,608			77,615
Change in non-cash working capital	23b		(14,329	)		(14,308	)
			71,279			63,307
Cash used in investing activities:
Acquisition of property, plant and equipment	3		(64,952	)		(52,122	)
Community agreements	3		(1,912	)		(3,772	)
Net proceeds from disposal of investments			53			-
Proceeds from disposition of property, plant and equipment			138			-
Interest received			1,597			162
			(65,076	)		(55,732	)
Cash generated from (used in) financing activities:
Proceeds from drawdown of revolving credit facility	15b		40,000			-
Interest paid on long-term debt			-			(31,875	)
Financing costs			(3,133	)		(3,151	)
Lease payments	14		(5,364	)		(9,863	)
Gold prepayment repayments	13		(6,428	)		(18,623	)
Net proceeds from exercise of stock options			78			868
Dividends paid	19b		(1,908	)		(2,075	)
			23,245			(64,719	)
Effect of movement in exchange rates on cash			450			(486	)
Net increase (decrease) in cash			29,898			(57,630	)
Cash, beginning of the period			225,665			270,989
Cash, end of the period		$	255,563		$	213,359

3

HUDBAY MINERALS INC.
Condensed Consolidated Interim Statements of Comprehensive Profit (Loss)
(Unaudited and in thousands of US dollars)

		Three months ended March 31,
		2023			2022
Profit for the period	$	5,457		$	63,815
Other comprehensive income:
Item that will be reclassified subsequently to profit or loss:
Recognized directly in equity:
Net gain on translation of foreign currency balances		136			3,308
		136			3,308
Items that will not be reclassified subsequently to profit or loss:
Recognized directly in equity:
Gold prepayment revaluation		15			175
Tax effect		(4	)		(46	)
Remeasurement - actuarial (loss) gain		(1,245	)		18,017
Tax effect		(270	)		790
		(1,504	)		18,936
Other comprehensive (loss) income net of tax, for the period		(1,368	)		22,244
Total comprehensive profit for the period	$	4,089		$	86,059

4

HUDBAY MINERALS INC.
Condensed Consolidated Interim Statements of Changes in Equity
(Unaudited and in thousands of US dollars)

		Share capital (note 19)		Other capital reserves			Foreign currency translation reserve			Remeasurement reserve			Retained earnings			Total equity
Balance, January 1, 2022	$	1,778,848	$	57,328		$	2,907		$	(60,417	)	$	(301,838	)	$	1,476,828
Profit		-		-			-			-			63,815			63,815
Other comprehensive income		-		-			3,308			18,936			-			22,244
Total comprehensive income (loss)		-		-			3,308			18,936			63,815			86,059
Contributions by and distributions to owners:
Dividends (note 19b)		-		-			-			-			(2,075	)		(2,075	)
Stock options		-		298			-			-			-			298
Issuance of shares related to stock options redeemed		1,334		(466	)		-			-			-			868
Total contributions by and distributions to owners		1,334		(168	)		-			-			(2,075	)		(909	)
Balance, March 31, 2022	$	1,780,182	$	57,160		$	6,215		$	(41,481	)	$	(240,098	)	$	1,561,978
Profit		-		-			-			-			6,567			6,567
Other comprehensive (loss) income		-		-			(20,974	)		24,275			-			3,301
Total comprehensive (loss) income		-		-			(20,974	)		24,275			6,567			9,868
Contributions by and distributions to owners:
Dividends (note 19b)		-		-			-			-			(1,972	)		(1,972	)
Stock options		-		1,550			-			-			-			1,550
Issuance of shares related to stock options redeemed		592		(207	)		-			-			-			385
Total contributions by and distributions to owners		592		1,343			-			-			(1,972	)		(37	)
Balance, December 31, 2022	$	1,780,774	$	58,503		$	(14,759	)	$	(17,206	)	$	(235,503	)	$	1,571,809

5

HUDBAY MINERALS INC.
Condensed Consolidated Interim Statements of Changes in Equity
(Unaudited and in thousands of US dollars)

		Share capital (note 19)		Other capital reserves			Foreign currency translation reserve			Remeasurement reserve			Retained earnings			Total equity
Balance, January 1, 2023	$	1,780,774	$	58,503		$	(14,759	)	$	(17,206	)	$	(235,503	)	$	1,571,809
Profit		-		-			-			-			5,457			5,457
Other comprehensive income (loss)		-		-			136			(1,504	)		-			(1,368	)
Total comprehensive income (loss)		-		-			136			(1,504	)		5,457			4,089
Contributions by and distributions to owners:
Dividends (note 19b)		-		-			-			-			(1,908	)		(1,908	)
Stock options		-		453			-			-			-			453
Issuance of shares related to stock options redeemed		118		(40	)		-			-			-			78
Total contributions by and distributions to owners		118		413			-			-			(1,908	)		(1,377	)
Balance, March 31, 2023	$	1,780,892	$	58,916		$	(14,623	)	$	(18,710	)	$	(231,954	)	$	1,574,521

6

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

1.Reporting entity

Hudbay Minerals Inc. ("HMI" or the "Company") is a company existing under the Canada Business Corporations Act. The address of the Company's principal executive office is 25 York Street, Suite 800, Toronto, Ontario. The unaudited condensed consolidated interim financial statements ("financial statements") of the Company for the three months ended March 31, 2023 and 2022 represent the financial position and the financial performance of the Company and its subsidiaries (together referred to as "Hudbay").

Wholly owned subsidiaries as at March 31, 2023 and 2022 include HudBay Marketing & Sales Inc. ("HMS"), HudBay Peru Inc., HudBay Peru S.A.C. ("Hudbay Peru"), HudBay (BVI) Inc., Hudbay Arizona Inc, Copper World, Inc. ("Copper World") and Mason Resources (US) Inc. ("Mason").

Hudbay is a diversified mining company with long-life assets in North and South America. Hudbay's operations in Cusco (Peru) produce copper with gold, silver and molybdenum by-products. Hudbay's operations in Manitoba (Canada) produce gold with copper, zinc and silver by-products. Hudbay has an organic pipeline that includes copper development projects in Arizona and Nevada (United States), and a focused growth strategy on exploration, development, operation, and optimization of properties that Hudbay already controls, as well as other mineral assets that Hudbay may acquire that fit the Company's strategic criteria. The Company is governed by the Canada Business Corporations Act and its shares are listed under the symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima.

2.Basis of preparation

(a)Statement of compliance:

These interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and do not include all of the information required for full annual financial statements by International Financial Reporting Standards ("IFRS").

These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2022 which includes information necessary or useful to understanding the Company's business and financial statement presentation. In particular, the Company's accounting policies are presented as note 3 in the Company's audited consolidated financial statements for the year ended December 31, 2022 and have been consistently applied in the preparation of these interim financial statements.

The Board of Directors approved these interim financial statements on May 8, 2023.

(b)Use of judgements and estimates:

The preparation of the interim financial statements in conformity with IFRS requires Hudbay to make judgements, estimates and assumptions, in applying accounting policies that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim financial statements, as well as reported amounts of revenue and expenses during the reporting period. Actual results may differ from these judgements, estimates and assumptions. The interim financial statements reflect the judgements and estimates outlined by Hudbay in its audited consolidated financial statements for the year ended December 31, 2022, except as noted below.

7

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

(c)Estimation uncertainty:

The Company has assessed the economic impacts of the novel coronavirus pandemic, Russia's invasion of Ukraine and heightened social unrest following a change in Peru's political leadership in early December 2022 on its condensed consolidated interim financial statements. As at March 31, 2023, management has determined that the Company's ability to execute its medium and longer term plans and the economic viability of its assets (including the carrying value of its long-lived assets and inventory valuations) are not materially impacted.

In making this judgment, the Company has assessed various criteria including, but not limited to, existing laws, regulations, orders, disruptions and potential disruptions in our supply chain, disruptions in the markets for our products, commodity prices and foreign exchange prices and the actions that the Company has taken at its operations to protect the health and safety of its workforce and local community.

3.Reclassification of comparative amounts

Certain prior period amounts have been reclassified for consistency with the current period presentation. Evaluation expense has been reclassified and presented within other expenses on the condensed consolidated interim income statements. Community agreement payments were previously included within acquisition of property, plant and equipment in the investing activities section of the condensed consolidated interim statements of cash flows and has now been reclassified to its own line within investing activities. These reclassifications had no effect on the previously reported net loss, cash used in investing activities and net equity.

4.New standards

New standards and interpretations adopted

(a)Amendment to IAS 1 - Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements

The amendments to IAS 1 amendments help companies provide useful accounting policy disclosures. The adoption of the new standard effective January 1, 2023 did not impact the interim financial statements of the Company.

New standards issued but not yet effective

(b)Amendment to IAS 1 - Presentation of Financial Statements

The amendments to IAS 1 clarify that only covenants with which an entity is required to comply on or before the reporting date affect the classification of a liability as current or non-current. In addition, an entity has to disclose information in the notes that enables users of financial statements to understand the risk that non-current liabilities with covenants could become repayable within twelve months. Classification is unaffected by the expectations that the entity will exercise its right to defer settlement of a liability. Lastly, the amendments clarify that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets. The amendments are effective for annual periods beginning on or after January 1, 2024. Earlier application is permitted. The Company has not yet determined the effect of adoption of this amendment on its consolidated financial statements.

8

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

5.Revenue and expenses

(a)Revenue

Hudbay's revenue by significant product types:

		Three months ended March 31,
		2023			2022
Copper	$	164,242		$	208,989
Zinc		19,842			66,426
Gold		74,926			67,552
Silver		6,301			6,621
Molybdenum		18,962			9,194
Other		239			2,437
Revenue from contracts		284,512			361,219
Non-cash streaming arrangement items 1
Amortization of deferred revenue - gold		5,392			13,202
Amortization of deferred revenue - silver		5,580			11,772
Amortization of deferred revenue - variable consideration adjustments - prior periods		4,885			3,245
		15,857			28,219
Pricing and volume adjustments 2		13,345			1,264
		313,714			390,702
Treatment and refining charges		(18,495	)		(12,083	)
	$	295,219		$	378,619

¹ See note 16.

² Pricing and volume adjustments represent mark-to-market adjustments on initial estimate of provisionally priced sales, realized and unrealized changes to fair value of non-hedge derivative contracts and adjustments to originally invoiced weights and assays.

Consideration from the Company's stream agreements is considered variable (note 16). Gold and silver stream revenue can be subject to cumulative adjustments when the amount of precious metals to be delivered under the contract changes. As a result of changes in the Company's mineral reserve and resource estimate in the first quarter of 2023, the amortization rate by which deferred revenue is drawn down into income was adjusted and, as required, a variable consideration adjustment was made for all prior year stream revenues since the stream agreement inception date. This variable consideration adjustment resulted in an increase of revenue of $4,885 for the three months ended March 31, 2023 (March 31, 2022 - increase of revenue of $3,245).

9

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

    (b)Depreciation and amortization

Depreciation of PP&E and amortization of intangible assets are reflected in the condensed consolidated interim income statements as follows:

		Three months ended March 31,
		2023		2022
Cost of sales	$	67,422	$	81,091
Selling and administrative expenses		330		442
	$	67,752	$	81,533

  (c)Other expenses

		Three months ended March 31,
		2023			2022
Regional costs	$	1,069		$	1,219
Loss (gain) on disposal of PP&E		69			(532	)
Amortization of community costs (other assets)		340			562
Restructuring - Manitoba		-			748
Care & maintenance - Manitoba		3,995			-
Evaluation costs		91			7,036
Other		(605	)		15
	$	4,959		$	9,048

The Flin Flon concentrator and tailings impoundment has been shifted to care and maintenance to provide optionality should another mineral discovery occur in the Flin Flon area. During the three months ended March 31, 2023, care & maintenance costs were $3,995.

During the first quarter of 2022, there were costs incurred related to the restructuring of the Manitoba operations in preparation for the closure of 777 mine of $748. These costs were related to activities performed in advance of the mine's expected closure in June 2022.

Evaluation expenses incurred during the first quarter of 2022 primarily relate to Preliminary Economic Assessment study costs of Arizona's Copper World Complex.

10

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

(d)Net finance expense

		Three months ended March 31,
		2023			2022
Net interest expense on long-term debt
Interest expense on long-term debt	$	17,007		$	16,898
Accretion on streaming arrangements (note 16)
Additions		6,597			7,363
Variable consideration adjustments - prior periods		(96	)		(2,527	)
		6,501			4,836
Change in fair value of financial assets and liabilities at fair value through profit or loss
Gold prepayment liability (note 13)		6,097			9,108
Investments		(500	)		(1,892	)
		5,597			7,216
Other net finance costs
Net foreign exchange loss		306			1,506
Accretion on community agreements measured at amortized cost		763			610
Accretion on environmental provisions		2,404			1,892
Accretion on Wheaton refund liability		139			-
Withholding taxes		1,405			1,563
Loss on disposal of investments		652			-
Other finance expense		1,730			2,325
Interest income		(1,528	)		(102	)
		5,871			7,794
Net finance expense	$	34,976		$	36,744

Other finance expense relates primarily to standby fees on Hudbay's revolving credit facilities and leases.

6.Trade and other receivables

		Mar. 31, 2023		Dec. 31, 2022
Current
Trade receivables	$	74,376	$	84,096
Statutory receivables		23,193		25,544
Other receivables		5,194		3,542
		102,763		113,182
Non-current
Taxes receivable		13,435		13,329
	$	116,198	$	126,511

11

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

7.Inventories

		Mar. 31, 2023		Dec. 31, 2022
Current
Stockpile	$	24,784	$	26,235
Finished goods		93,199		68,029
Materials and supplies		69,455		60,748
		187,438		155,012
Non-current
Stockpile		32,100		42,785
Materials and supplies		9,188		7,940
		41,288		50,725
	$	228,726	$	205,737

The cost of inventories recognized as an expense, including depreciation, and included in cost of sales amounted to $204,910 for the three months ended March 31, 2023 (three months ended March 31, 2022 - $261,174).

During the three months ended March 31, 2023, Hudbay recognized a recovery of nil in cost of sales related to adjustments of the carrying value of Peru inventories to net realizable value (three months ended March 31, 2022 - recovery of $461). Adjustments of the carrying value of inventories to net realizable value were related to changes in commodity prices.

The increase in finished goods and work in progress inventory for the three months ended March 31, 2023 primarily related to a buildup of copper concentrate in Peru caused by the protests and civil unrest in the southern Peru mining corridor early in the first quarter. However, these disruptions have abated since mid-February. Transportation of Constancia's concentrate and critical supplies has since returned to normal.

8.Other financial assets

		Mar. 31, 2023		Dec. 31, 2022
Current
Derivative assets	$	1,096	$	577
Restricted cash		486		486
		1,582		1,063
Non-current
Investments at fair value through profit or loss		9,619		9,799
	$	11,201	$	10,862

12

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

9.Intangibles and other assets

Intangibles and other assets of $48,002 (December 31, 2022 - $49,841) includes $43,404 of other assets (December 31, 2022 - $45,074) and $4,598 of intangibles (December 31, 2022 - $4,767).

Other assets represent the carrying value of certain future community costs that relate to agreements with communities near the Peru operations which allow Hudbay to extract or explore minerals over the useful life of Peru operations. The liability remaining for these costs is recorded in agreements with communities recorded at amortized cost (note 12). Amortization of the carrying amount is recorded in the condensed consolidated interim income statements within other expenses (note 5c) or exploration expenses, depending on the nature of the agreement.

Intangibles mainly represent computer software costs.

13

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

10.Property, plant and equipment

Mar. 31, 2023		Cost		Accumulated depreciation and amortization			Carrying amount
Exploration and evaluation assets	$	75,992	$	-		$	75,992
Capital works in progress		778,086		-			778,086
Mining properties		1,985,330		(918,733	)		1,066,597
Plant and equipment		2,774,680		(1,219,959	)		1,554,721
Plant and equipment-ROU Assets1		202,704		(131,730	)		70,974
	$	5,816,792	$	(2,270,422	)	$	3,546,370
Dec. 31, 2022		Cost 2		Accumulated depreciation and amortization 2			Carrying amount
Exploration and evaluation assets	$	75,981	$	-		$	75,981
Capital works in progress		778,851		-			778,851
Mining properties		1,952,814		(891,803	)		1,061,011
Plant and equipment		2,742,617		(1,181,209	)		1,561,408
Plant and equipment - ROU Assets1		202,437		(127,258	)		75,179
	$	5,752,700	$	(2,200,270	)	$	3,552,430

¹ Includes $5,149 of capital works in progress - ROU assets (cost) that relate to the Arizona segment (December 31, 2022 - $5,413 related to the Arizona segment).

² An inconsequential offsetting adjustment to the Mining properties December 31, 2022 cost and accumulated depreciation and amortization closing balance has been reflected in the current period. There is no impact to the carrying amount.

An indicator of impairment was identified in the three months ended March 31, 2023 as a result of an updated life of mine ("LOM") plan for Peru which included updated costs reflecting recently experienced inflationary pressures. As such, management determined that a detailed impairment evaluation as at March 31, 2023 was required for the Peru CGU.

For the impairment test completed at March 31, 2023, Fair Value Less Cost of Disposal, ("FVLCD") was used to determine the recoverable amount since it is higher than value in use. FVLCD was calculated using discounted after-tax cash flows based on cash flow projections and assumptions in Hudbay's most current LOM. The fair value measurement in its entirety is categorized as Level 3 based on the degree to which fair value inputs are observable and have a significant effect on the recorded fair value.

LOM plans are based on optimized mine and processing plans and the assessment of capital expenditure requirements of a mine site. LOM plans incorporate management's best estimates of key assumptions which are discount rates, future commodity prices, production based on current estimates of recoverable reserves, future operating and capital costs, value of mineral resources not included in the LOM plan and future foreign exchange rates. The cash flows are for periods up to the date that production is expected to cease, which is 16 years for the Peru CGU.

The discount rate was based on the CGU's weighted average cost of capital, of which the two main components are the cost of equity and the after-tax cost of debt. Cost of equity was calculated based on the capital asset pricing model, incorporating the risk-free rate of return based on the US Government's marketable bond yields as at the valuation date, the Company's beta coefficient adjustment to the market equity risk premium based on the volatility of the Company's return in relation to that of a comparable market portfolio, plus a country risk premium, size premium and company-specific risk factor. Cost of debt was determined by applying an appropriate market indication of the Company's borrowing capabilities and the corporate income tax rate applicable to the segment's jurisdiction. A real discount rate of 7.00% for the Peru CGU was used to calculate the estimated after- tax discounted future net cash flows, commensurate with its individual estimated level of risk.

14

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

Commodity prices used in the impairment assessment were determined by reference to external market participant sources. The key commodity price for this assessment is the price of copper. Where applicable to each of the Group's CGUs, the cash flow calculations were based on estimates of future production levels applying forecasts for metal prices, which included forecasts for each year from 2023 to 2027 and long-term forecasts for years beginning in 2028. The cash flow calculations utilized a copper price of $3.75/lb starting in 2023. The cash flow calculations utilized a long-term copper price of $3.75/lb, and capital, operating and reclamation costs based on the most current LOM plans. A value of $210,000 was utilized to estimate the value of mineral resources not included in the LOM plan.

Expected future cash flows used to determine the FVLCD used in the impairment testing are inherently uncertain and could materially change over time. Should management's estimate of the future not reflect actual events, impairments may be identified. This may have a material effect on the Company's financial statements. Although it is reasonably possible for a change in key assumptions to occur, the possible effects of a change in any single assumption may not fairly reflect the impact on a CGU's fair value as the assumptions are inextricably linked. For example, a decrease in the assumed price of long-term copper could result in amendments to the mine plans which would partially offset the effect of lower prices. It is difficult to determine how all of these factors would interrelate; however, in deriving a recoverable amount, management believes all of these factors need to be considered. As of March 31, 2023, a reasonably possible change in one of the key assumptions, all else being equal, may cause the carrying value to exceed the recoverable amount.

Management determined that the fair value less cost to dispose exceeded the carrying value of the Peru CGU, accordingly no impairment was recorded.

11.Other liabilities

		Mar. 31, 2023		Dec. 31, 2022
Advances from customers	$	38,973	$	15,086
Environmental and other provisions (note 17)		19,849		24,091
Pension liability		4,053		4,146
Other employee benefits		3,528		3,483
	$	66,403	$	46,806

15

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

12.Other financial liabilities

		Mar. 31, 2023		Dec. 31, 2022
Current
Derivative liabilities	$	7,982	$	17,995
Deferred Rosemont acquisition consideration		9,855		9,713
Agreements with communities recorded at amortized cost		6,496		5,593
		24,333		33,301
Non-current
Deferred Rosemont acquisition consideration		9,297		9,163
Agreements with communities recorded at amortized cost		35,513		36,900
Wheaton refund liability (note 16)		6,324		6,383
		51,134		52,446
	$	75,467	$	85,747

Agreements with communities recorded at amortized cost relate to agreements with communities near the Constancia operation which allow Hudbay to extract minerals over the useful life of the Constancia operation, carry out exploration and evaluation activities in the area and provide Hudbay with community support to operate in the region.

13.Gold prepayment liability

        Gold prepayment liabilities are reflected in the condensed consolidated interim balance sheets as follows:

		Mar. 31, 2023		Dec. 31, 2022
Current	$	32,255	$	71,208
Non-current		38,607		-
	$	70,862	$	71,208

The following table summarizes changes in the gold prepayment liability:

Balance, January 1, 2022	$	140,008
Change in fair value recorded in profit or loss		3,426
Change in fair value recorded in other comprehensive income		(512	)
Repayments		(71,714	)
Balance, December 31, 2022	$	71,208
Change in fair value recorded in income statement (note 5d)		6,097
Change in fair value recorded in other comprehensive income		(15	)
Repayments		(6,428	)
Balance, March 31, 2023	$	70,862

During the first quarter of 2023, Hudbay renegotiated its agreements with various financial institutions and deferred eight months of scheduled gold deliveries. Deliveries of the outstanding 37,500 gold ounces under the new agreements will resume in monthly amounts starting in October 2023 until August 2024.

16

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

14.Lease liability

Balance, January 1, 2022	$	78,002
Additional capitalized leases		27,984
Lease payments		(35,770	)
Derecognized leases		(8,918	)
Accretion and other movements		(279	)
Balance, December 31, 2022	$	61,019
Additional capitalized leases		560
Lease payments		(5,364	)
Accretion and other movements		450
Balance, March 31, 2023	$	56,665

Lease liabilities are reflected in the condensed consolidated interim balance sheets as follows:

		Mar. 31, 2023		Dec. 31, 2022
Current	$	17,620	$	16,156
Non-current		39,045		44,863
	$	56,665	$	61,019

Hudbay has entered into leases which expire between 2023 and 2037. The interest rates on leases which were capitalized have interest rates between 2.39% and 8.49%, per annum. The range of interest rates utilized for discounting varies depending mostly on the Hudbay entity acting as lessee and duration of the lease. For certain leases, Hudbay has the option to purchase the equipment and vehicles leased at the end of the terms of the leases. Hudbay's obligations under these leases are secured by the lessor's title to the leased assets. The present value of applicable lease payments has been recognized as an ROU asset, which was included as a non-cash addition to property, plant and equipment, and a corresponding amount as a lease liability.

There are no restrictions placed on Hudbay by entering into these leases.

The following outlines expenses recognized within the Company's condensed consolidated interim income statements, relating to leases for which a recognition exemption was applied.

		Three months ended March 31,
		2023		2022
Short-term leases	$	1,175	$	11,770
Low value leases		112		204
Variable leases		6,394		10,437
Total	$	7,681	$	22,411

Payments made for short-term, low value and variable leases would mostly be captured as expenses in the condensed consolidated interim income statements, however, certain amounts may be capitalized to PP&E for the Arizona segment during its development phase and certain amounts may be reported in inventories given the timing of sales. Variable payment leases include equipment used for heavy civil works at Constancia.

17

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

15.Long-term debt

Long-term debt is comprised of the following:

		Mar. 31, 2023			Dec. 31, 2022
Senior unsecured notes (a)	$	1,188,733		$	1,188,132
Senior secured revolving credit facilities (b)		36,290			(3,970	)
		1,225,023			1,184,162
Less: current portion		(40,000	)		-
	$	1,185,023		$	1,184,162

(a)Senior unsecured notes

Balance, January 1, 2022	$	1,185,805
Accretion of transaction costs and premiums		2,327
Balance, December 31, 2022	$	1,188,132
Accretion of transaction costs and premiums		601
Balance, March 31, 2023	$	1,188,733

As at March 31, 2023, $1,200,000 aggregate principal amount of senior notes were outstanding in two series: (i) a series of 4.50% senior notes due 2026 in an aggregate principal amount of $600,000 and (ii) a series of 6.125% senior notes due 2029 in an aggregate principal amount of $600,000.

The senior notes are guaranteed on a senior unsecured basis by substantially all of the Company's subsidiaries, other than HudBay (BVI) Inc. and certain excluded subsidiaries, which include the Company's subsidiaries that own an interest in the Copper World and Mason projects and any newly formed or acquired subsidiaries that primarily hold or may develop non-producing mineral assets that are in the pre-construction phase of development. Hudbay's revolving credit facilities are secured against substantially all of the Company's assets, other than those associated with the Arizona business unit.

(b)Senior secured revolving credit facilities

Balance, January 1, 2022	$	(5,531	)
Accretion of transaction costs		1,761
Transaction costs		(200	)
Balance, December 31, 2022 1	$	(3,970	)
Proceeds from drawdown		40,000
Accretion of transaction costs		295
Transaction costs		(35	)
Balance, March 31, 2023	$	36,290

¹ Balance, representing deferred transaction costs, is in an asset position.

On March 24, 2023, Hudbay drew $40,000 under its Canadian revolving credit facility.

As at March 31, 2023, the Peru segment had nil in letters of credit issued under the Peru revolving credit facility to support its reclamation obligations and the Manitoba segment had $25,551 in letters of credit issued under the Canada revolving credit facility to support its reclamation and pension obligations.

18

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

Surety bonds

The Arizona segment had $12,835 in surety bonds issued to support future reclamation and closure obligations. No cash collateral is required to be posted under these surety bonds.

Other letters of credit

The Peru segment had $118,008 in letters of credit issued with various Peruvian financial institutions to support future reclamation and other operating matters. No cash collateral is required to be posted under these letters of credit.

On August 22, 2022, Hudbay closed a C$130.0 million bilateral letter of credit facility ("LC Facility") with a major Canadian financial institution. As at March 31, 2023, the Manitoba segment had $56,763 in letters of credit issued under the LC Facility to support its reclamation and pension obligations.

16.Deferred revenue

Peru Stream Agreement

For the three months ended March 31, 2023, the drawdown rates for the Peru stream agreement for gold and silver were $820 and $15.26 per ounce, respectively (year ended December 31, 2022 - $734 and $14.95 per ounce, respectively).

777 Stream Agreement

As of September 30, 2022 all of 777's precious metals reserves and inventory levels have been depleted and we expect no further drawdown of deferred revenue. 

As part of the streaming agreement for the 777 mine, Hudbay must repay, with precious metals credits, the stream deposit by August 1, 2052, the expiry date of the agreement. If the stream deposit is not fully repaid with precious metals credits from 777 production by the expiry date, a payment for the remaining amount will be due at the expiry date of the agreement. As the 777 mine has concluded all mining activities following the depletion of reserves and finalized the sales of produced concentrate, Hudbay concluded that the remaining stream deposit will not be repaid by means of precious metals credits from 777 production. The repayment amount is recorded as a refund liability (note 12), which is and will be discounted at the 9.0% rate inherent in the original 777 stream agreement and accreted over the remaining term of the agreement.

19

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

The following table summarizes changes in deferred revenue:

Balance, January 1, 2022	$	515,326
Amortization of deferred revenue
Liability drawdown		(72,229	)
Variable consideration adjustments - prior periods		(959	)
Accretion on streaming arrangements
Current year additions		28,718
Variable consideration adjustments - prior periods		(940	)
Effects of changes in foreign exchange		(378	)
Balance, December 31, 2022	$	469,538
Amortization of deferred revenue (note 5a)
Liability drawdown		(10,972	)
Variable consideration adjustments - prior periods		(4,885	)
Accretion on streaming arrangements (note 5d)
Current year-to-date additions		6,597
Variable consideration adjustments - prior periods		(96	)
Balance, March 31, 2023	$	460,182

Consideration from the Company's stream agreement is considered variable. Gold and silver stream revenue can be subject to cumulative adjustments when the number of ounces to be delivered under the contract changes. As a result of changes in the Company's mineral reserve and resource estimate in the first quarter of 2023 the amortization rate by which deferred revenue is drawn down into income was adjusted and, as required, a current period variable adjustment was made for all prior period stream revenues since the stream agreement inception date. This variable consideration adjustment resulted in an increase in revenue of $4,885 and a decrease of finance expense of $96 for the three months ended March 31, 2023 (December 31, 2022 - increase in revenue of $959 and an decrease of finance expense of $940).

Deferred revenue is reflected in the condensed consolidated interim balance sheets as follows:

		Mar. 31, 2023		Dec. 31, 2022
Current	$	80,644	$	64,658
Non-current		379,538		404,880
	$	460,182	$	469,538

20

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

17.Environmental and other provisions

Reflected in the condensed consolidated interim balance sheets as follows:

Mar. 31, 2023		Decommissioning, restoration and similar liabilities		Deferred share units		Restricted share units		Performance share units		Other 1		Total
Current (note 11)	$	4,290	$	7,390	$	1,374	$	880	$	5,915	$	19,849
Non-current		271,565		-		1,143		640		3,606		276,954
	$	275,855	$	7,390	$	2,517	$	1,520	$	9,521	$	296,803
Dec. 31, 2022		Decommissioning, restoration and similar liabilities		Deferred share units		Restricted share units		Performance share units		Other 1		Total
Current (note 11)	$	4,162	$	6,872	$	4,836	$	1,736	$	6,485	$	24,091
Non-current		272,240		-		2,019		1,253		3,728		279,240
	$	276,402	$	6,872	$	6,855	$	2,989	$	10,213	$	303,331

¹ Relates primarily to restructuring costs and other non-capital provisions.

DRO are remeasured at each reporting date to reflect changes in discount rates, exchange rates, and timing and extent of cash outflows which can significantly affect the liabilities. This provision has been recorded based on estimates and assumptions that management believes are reasonable; however, actual decommissioning and restoration costs may differ from expectations.

During the first quarter of 2023, the Company recorded a non-cash gain of $8,240 in the condensed consolidated interim income statements mainly related to a revaluation adjustment to the Flin Flon operation's environmental reclamation provision. The current quarter was impacted by a decrease in implied inflation rates, partially offset by decreases in long term, risk-free discount rates based on changes in Canadian bond yields. Typically, an operating location will reflect any revaluation adjustments to the environmental reclamation provision against its reclamation assets. However, as the Flin Flon operations closed in June 2022, the corresponding Flin Flon assets have been fully depreciated and cannot be reduced below residual value resulting in the remaining impact being recorded as a gain in the condensed consolidated interim income statements.

As at March 31, 2023, decommissioning, restoration and similar liabilities have been discounted to their present value at rates ranging from 2.88% to 4.32% per annum (December 31, 2022 - 3.26% to 4.75%), using pre-tax, risk-free interest rates that reflect the estimated maturity of each specific liability.

During the first quarter of 2022, the Company recorded a non-cash gain of $79,856 in the condensed consolidated interim income statements mainly related to a revaluation adjustment to the Flin Flon operation's environmental reclamation provision. The first quarter revaluation was substantially impacted by an increase in long term, risk-free discount rates based on changes in Canadian bond yields

21

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

18.Income and mining taxes

The tax expense is applicable as follows:

		Three months ended March 31,
		2023			2022
Current:
Income taxes expense	$	10,765		$	5,477
Mining taxes expense		6,357			4,978
		17,122			10,455
Deferred:
Income tax (recoveries) expense - origination, revaluation and/or reversal of temporary differences		(3,722	)		9,601
Mining tax (recoveries) expense - origination, revaluation and/or reversal of temporary difference		(1,999	)		4,990
Adjustments in respect of prior years		572			-
		(5,149	)		14,591
	$	11,973		$	25,046

Adjustments in respect of prior years refers to amounts changing due to the filing of tax returns and assessments from government authorities as well as any change identified that would result in a difference to our current or deferred tax balances as reported in the prior fiscal year end.

22

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

19.Share capital

(a)Preference shares:

Authorized: Unlimited preference shares without par value.

Issued and fully paid: Nil.

(b)Common shares:

Authorized: Unlimited common shares without par value.

Issued and fully paid:

	Three months ended Mar. 31, 2023			Year ended Dec. 31, 2022
	Common shares		Amount	Common shares		Amount
Balance, beginning of year	262,019,857	$	1,780,774	261,598,312	$	1,778,848
Exercise of options	27,705		118	421,545		1,926
Balance, end of period	262,047,562	$	1,780,892	262,019,857	$	1,780,774

During the three months ended March 31, 2023, the Company declared a dividend of C$0.01 per share. The Company paid $1,908 in dividends on March 24, 2023 to shareholders of record as of March 7, 2023.

During the year ended December 31, 2022, the Company declared two semi-annual dividends of C$0.01 per share. The Company paid $2,075 and $1,972 in dividends on March 25, 2022 and September 23, 2022 to shareholders of record as of March 8, 2022 and September 2, 2022.

(c)Equity-settled share-based compensation - stock options:

The Company's stock option plan was approved in June 2005 and amended in May 2008 (the "Plan"). Under the amended Plan, the Company may grant to employees, officers, directors or consultants of the Company or its affiliates options to purchase up to a maximum of 13 million common shares of Hudbay. The Company has determined that the appropriate accounting treatment is to classify the stock options as equity settled transactions.

The following table outlines the changes in the number of stock options outstanding:

	Mar. 31, 2023				Dec. 31, 2022
	Number of shares subject to option			Weighted- average exercise price C$	Number of shares subject to option			Weighted average exercise price C$
Balance, beginning of year	1,528,760		$	7.38	1,659,288		$	5.71
Number of units granted	801,661		$	6.75	602,614		$	9.77
Exercised	(27,705	)	$	3.76	(421,545	)	$	3.80
Forfeited	(27,848	)	$	8.37	(311,597	)	$	7.94
Balance, end of period	2,274,868		$	7.19	1,528,760		$	7.38

23

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

The following table presents the weighted average fair value assumptions used in the Black-Scholes valuation of these options:

For options granted during the period		Mar. 31, 2023		Dec. 31, 2022
Weighted average share price at grant date (CAD)	$	6.75	$	9.77
Risk-free rate		3.40%		1.81%
Expected dividend yield		0.3%		0.2%
Expected stock price volatility (based on historical volatility)		56.0%		55.9%
Expected life of option (months)		84		84
Weighted average per share fair value of stock options granted (CAD)	$	3.90	$	5.45

The following table outlines stock options outstanding and exercisable:

Mar. 31, 2023
Range of exercise prices C$	Number of options outstanding	Weighted average remaining contractual life (years)		Weighted average exercise price C$	Number of options exercisable		Weighted average share price at exercise date C$
$3.76 - $4.82	610,966	3.9	$	3.76	610,966	$	3.76
$4.83 - $5.90	3,275	6.4	$	5.89	1,091	$	5.89
$5.91 - $6.75	798,554	6.9	$	6.75	-	$	-
$6.76 - $10.17	502,832	5.9	$	9.77	173,180	$	9.72
$10.18 - $10.42	359,241	4.9	$	10.42	241,674	$	10.42

Dec. 31, 2022
Range of exercise prices C$	Number of options outstanding	Weighted average remaining contractual life (years)		Weighted average exercise price C$	Number of options exercisable		Weighted average share price at exercise date C$
$3.76 - $3.92	644,983	4.2	$	3.76	264,553	$	3.76
$3.93 - $9.00	30,283	5.9	$	6.92	9,194	$	7.04
$9.01 - $9.92	487,005	6.2	$	9.92	-	$	-
$9.93 - $10.42	366,489	5.2	$	10.42	122,628	$	10.42

Hudbay estimates expected life of options and expected volatility based on historical data, which may differ from actual outcomes.

24

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

20.Earnings per share

	Three months ended March 31,
	2023	2022
Weighted average common shares outstanding
Basic	262,030,805	261,689,263
Plus net incremental shares from:
Assumed conversion: stock options	294,124	577,977
Diluted weighted average common shares outstanding	262,324,929	262,267,240

25

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

21.Financial instruments

(a)Fair value and carrying value of financial instruments:

The following presents the fair value ("FV") and carrying value ("CV") of Hudbay's financial instruments and non-financial derivatives:

		Mar. 31, 2023				Dec. 31, 2022
		FV		CV		FV		CV
Financial assets at amortized cost
Cash1	$	255,563	$	255,563	$	225,665	$	225,665
Restricted cash1		486		486		486		486
Fair value through profit or loss
Trade and other receivables 1, 2, 3		79,570		79,570		87,638		87,638
Non-hedge derivative assets 4		1,096		1,096		577		577
Investments 5		9,619		9,619		9,799		9,799
Total financial assets	$	346,334	$	346,334	$	324,165	$	324,165
Financial liabilities at amortized cost
Trade and other payables1, 2		185,984		185,984		195,872		195,872
Deferred Rosemont acquisition consideration 8		19,152		19,152		18,876		18,876
Agreements with communities 6		36,929		42,009		35,870		42,493
Wheaton refund liability10		8,117		6,324		7,744		6,383
Senior unsecured notes 7		1,127,190		1,188,733		1,094,988		1,188,132
Senior secured revolving credit facilities		36,290		36,290		-		-
Fair value through profit or loss
Gold prepayment liability 9		70,862		70,862		71,208		71,208
Non-hedge derivative liabilities 4		7,982		7,982		17,995		17,995
Total financial liabilities	$	1,492,506	$	1,557,336	$	1,442,553	$	1,540,959

¹ Cash, restricted cash, trade and other receivables and trade and other payables are recorded at carrying value, which approximates fair value due to their short-term nature and generally negligible credit losses.

² Excludes tax and other statutory amounts.

³ Trade and other receivables contain receivables including provisionally priced receivables classified as FVTPL and various other items at amortized cost. The fair value of provisionally priced receivables is determined using forward metals prices which is a level 2 valuation method.

⁴ Derivatives are carried at their fair value, which is determined based on internal valuation models that reflect observable forward market commodity prices, currency exchange rates, and discount factors based on market US dollar interest rates adjusted for credit risk.

⁵ All investments are carried at their fair value, which is determined using quoted market bid prices in active markets for listed shares.

⁶ These financial liabilities relate to agreements with communities near the Constancia project in Peru (note 12). Fair values have been determined using a discounted cash flow analysis based on expected cash flows and a credit adjusted discount rate.

⁷ Fair value of the senior unsecured notes (note 15) has been determined using the quoted market price at period end.

⁸ Discounted value based on a risk adjusted discount rate.

⁹ The gold prepayment liability (note 13) is designated as fair value through profit or loss under the fair value option. Gains and losses related to the Company's own credit risk have been recorded at fair value through other comprehensive income. The fair value adjustment recorded in other comprehensive income for the three months ended March 31, 2023 was a gain of $15 (year ended December 31, 2022 was a gain of $512).

¹⁰ Discounted value based on a market rate at inception of the applicable Wheaton contract for carrying value (note 16) and current market rate at period end for fair value.

26

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

Fair value hierarchy

The table below provides an analysis by valuation method of financial instruments that are measured at fair value subsequent to recognition as well as financial instruments not measured at fair value but for which a fair value is disclosed. Levels 1 to 3 are defined based on the degree to which fair value inputs are observable and have a significant effect on the recorded fair value, as follows:

-Level 1:Quoted prices in active markets for identical assets or liabilities;

-Level 2:Valuation techniques use significant observable inputs, either directly or indirectly, or valuations are based on quoted prices for similar instruments; and,

-Level 3:Valuation techniques use significant inputs that are not based on observable market data.

March 31, 2023		Level 1		Level 2		Level 3		Total
Financial assets measured at fair value
Financial assets at FVTPL:
Non-hedge derivatives	$	-	$	1,096	$	-	$	1,096
Investments		9,619		-		-		9,619
	$	9,619	$	1,096	$	-	$	10,715
Financial liabilities measured at fair value
Financial liabilities at FVTPL:
Non-hedge derivatives	$	-	$	7,982	$	-	$	7,982
Gold prepayment liability		-		70,862		-		70,862
Financial liabilities at amortized cost:
Agreements with communities		-		-		36,929		36,929
Wheaton refund liability		-		-		8,117		8,117
Senior secured revolving credit facilities		36,290		-		-		36,290
Senior unsecured notes		1,127,190		-		-		1,127,190
	$	1,163,480	$	78,844	$	45,046	$	1,287,370

December 31, 2022		Level 1		Level 2		Level 3		Total
Financial assets measured at fair value
Financial assets at FVTPL:
Non-hedge derivatives	$	-	$	577	$	-	$	577
Investments		9,799		-		-		9,799
	$	9,799	$	577	$	-	$	10,376
Financial liabilities measured at fair value
Financial liabilities at FVTPL:
Non-hedge derivatives	$	-	$	17,995	$	-	$	17,995
Gold prepayment liability		-		71,208		-		71,208
Financial liabilities at amortized cost:		-				-
Agreements with communities		-		-		35,870		35,870
Wheaton refund liability		-		-		7,744		7,744
Senior unsecured notes		1,094,988		-		-		1,094,988
	$	1,094,988	$	89,203	$	43,614	$	1,227,805

27

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

The Company's policy is to recognize transfers into and transfers out of fair value hierarchy levels as of the date of the event or change in circumstances that caused the transfer. During the three months ended March 31, 2023 and year ended December 31, 2022, Hudbay did not make any such transfers.

Valuation techniques used for instruments categorized in Levels 2 and 3 are consistent with the year ended December 31, 2022.

(b)Derivatives and hedging:

Copper fixed for floating swaps

Hudbay enters into copper fixed for floating swaps in order to manage the risk associated with provisional pricing terms in copper concentrate sales agreements. As at March 31, 2023, Hudbay had 51.6 million pounds of net copper swaps outstanding at an effective average price of $3.93/lb and settling from April to August 2023. As at December 31, 2022, Hudbay had 89.7 million pounds of net copper swaps outstanding at an effective average price of $3.61/lb and settling from January to May 2023. The aggregate fair value of the transactions at March 31, 2023 was a liability of $7,874 (December 31, 2022 - a liability position of $17,269).

Zinc fixed for floating swaps

Hudbay enters into zinc fixed for floating swaps in order to manage the risk associated with provisional pricing terms in zinc concentrate sales agreements. As at March 31, 2023, Hudbay had 12.7 million pounds of net zinc swaps outstanding at an effective average price of $1.41/lb and settling from April to June 2023. As at December 31, 2022, Hudbay had 17.5 million pounds of net zinc swaps outstanding at an effective average price of $1.32/lb and settling from January to March 2023. The aggregate fair value of the transactions at March 31, 2023 was an asset of $988 (December 31, 2022 - a liability position of $149).

Transactions involving derivatives are with large multi-national financial institutions that Hudbay believes to be credit worthy.

(c)Provisionally priced receivables

Changes in fair value of provisionally priced receivables

Hudbay records changes in fair value of provisionally priced receivables related to provisional pricing in concentrate purchase, concentrate sale and certain other sale contracts. Under the terms of these contracts, prices are subject to final adjustment at the end of a future period after title transfers based on quoted market prices during the quotation period specified in the contract. The period between provisional pricing and final pricing is typically up to three months.

Changes in fair value of provisionally priced receivables are presented in trade and other receivables when they relate to sales contracts and in trade and other payables when they relate to purchase contracts. At each reporting date, provisionally priced metals are marked-to-market based on the forward market price for the quotation period stipulated in the contract, with changes in fair value recognized in revenue for sales contracts and in inventory or cost of sales for purchase concentrate contracts. Cash flows related to changes in fair value of provisionally priced receivables are classified in operating activities.

28

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

As at March 31, 2023 and December 31, 2022, Hudbay's net position consisted of contracts awaiting final pricing which are as indicated below:

Metal in concentrate		Sales awaiting final pricing		Average YTD price ($/unit)
	Unit	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2023	Dec. 31, 2022
Copper	pounds (in thousands)	50,239	79,833	4.09	3.80
Gold	troy ounces	21,689	22,079	2,094	1,823
Silver	troy ounces	75,471	71,809	24.12	23.91
Zinc Concentrate	pounds (in thousands)	13,823	18,145	1.33	1.35

The aggregate fair value of provisionally priced receivables within the copper and zinc concentrate at March 31, 2023, was an asset position of $6,677(December 31, 2022 - an asset position of $20,285).

(d)Other financial liabilities

Gold prepayment liability

The gold prepayment liability (note 13) requires settlement by physical delivery of gold ounces or equivalent gold credits. The fair value of the financial liability at March 31, 2023 was a liability of $70,862 (December 31, 2022 - a liability of $71,208).

22.Commitments

            Capital commitments

As at March 31, 2023, Hudbay had outstanding capital commitments in Canada of approximately $4,393 of which $4,389 can be terminated, approximately $28,309 in Peru, all of which can be terminated, and approximately $42,748 in Arizona, primarily related to the Copper World Complex, of which approximately $7,180 can be terminated by Hudbay.

23.Supplementary cash flow information

(a)Other cash (used in) / generated from operating activities:

		Three months ended March 31,
		2023			2022
Amortization of community agreements	$	1,610		$	562
Share based compensation paid		(5,817	)		(5,111	)
Loss (gain) on disposal of property, plant & equipment		69			(532	)
Restructuring - Manitoba		(575	)		748
Other		(147	)		281
	$	(4,860	)	$	(4,052	)

29

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

(b)Change in non-cash working capital:

		Three months ended March 31,
		2023			2022
Change in:
Trade and other receivables	$	9,780		$	20,715
Other financial assets/liabilities		(10,531	)		4,726
Inventories		(19,290	)		(18,723	)
Prepaid expenses		766			(313	)
Trade and other payables		(18,934	)		(11,258	)
Provisions and other liabilities		23,880			(8,893	)
	$	(14,329	)	$	(14,308	)

(c)Non-cash transactions:

During the year ended March 31, 2023 and 2022, Hudbay entered into the following non-cash investing and financing activities which are not reflected in the condensed consolidated interim statements of cash flows:

-Remeasurement of Hudbay's decommissioning and restoration liabilities led to a net increase in related property, plant and equipment assets of $6,112 (March 31, 2022 - a net increase of $14,182), mainly related to changes to real discount rates associated with remeasurement of the liabilities.

-Property, plant and equipment included $560 (March 31, 2022 - $7,772) of capital additions related to the recognition of ROU assets. Property, plant and equipment and other assets include nil capital additions related to agreements with communities (March 31, 2022 - $1,225).

30

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

24.Segmented information

Corporate and other activities include the Company's exploration activities in Chile, Canada and the State of Nevada. These exploration entities are not individually significant, as they do not meet the minimum quantitative thresholds for standalone segment disclosure. Corporate and other activities are not considered a segment and are included as a reconciliation to total consolidated results.

Three Months Ended March 31, 2023
		Manitoba			Peru		Arizona			Corporate and other activities			Total
Revenue from external customers	$	108,417		$	186,802	$	-		$	-		$	295,219
Cost of sales
Mine operating costs		69,898			91,386		-			-			161,284
Depreciation and amortization		25,462			41,960		-			-			67,422
Gross profit		13,057			53,456		-			-			66,513
Selling and administrative expenses		-			-		-			9,146			9,146
Exploration expenses		4,578			3,509		-			155			8,242
Other expenses		3,549			1,221		175			14			4,959
Re-evaluation adjustment - environmental provision		(8,240	)		-		-			-			(8,240	)
Results from operating activities	$	13,170		$	48,726	$	(175	)	$	(9,315	)	$	52,406
Net interest expense on long term debt													17,007
Accretion on streaming arrangements													6,501
Change in fair value of financial instruments													5,597
Other net finance costs													5,871
Profit before tax													17,430
Tax expense													11,973
Profit for the period												$	5,457

31

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

Three Months Ended March 31, 2022
		Manitoba			Peru		Arizona			Corporate and other activities			Total
Revenue from external customers	$	177,239		$	201,380	$	-		$	-		$	378,619
Cost of sales
Mine operating costs		114,907			97,353		-			-			212,260
Depreciation and amortization		32,729			48,362		-			-			81,091
Gross (loss) profit		29,603			55,665		-			-			85,268
Selling and administrative expenses		-			-		-			11,841			11,841
Exploration expenses		6,006			2,603		9,830			191			18,630
Other expenses (income)		762			1,651		6,583			52			9,048
Re-evaluation adjustment - environmental provision		(79,856	)		-		-			-			(79,856	)
Results from operating activities	$	102,691		$	51,411	$	(16,413	)	$	(12,084	)	$	125,605
Net interest expense on long term debt													16,898
Accretion on streaming arrangements													4,836
Change in fair value of financial instruments													7,216
Other net finance costs													7,794
Profit before tax													88,861
Tax expense													25,046
Profit for the period												$	63,815

March 31, 2023
		Manitoba		Peru		Arizona		Corporate and other activities		Total
Total assets	$	682,800	$	2,520,390	$	719,108	$	445,684	$	4,367,982
Total liabilities		412,477		985,806		33,148		1,362,030		2,793,461
Property, plant and equipment1		688,010		2,107,028		710,987		40,345		3,546,370

¹Included in Corporate and Other activities is $27.4 million of property, plant and equipment that is located in Nevada.

December 31, 2022
		Manitoba		Peru		Arizona		Corporate and other activities		Total
Total assets	$	690,403	$	2,532,750	$	713,567	$	389,223	$	4,325,943
Total liabilities		427,107		974,184		36,131		1,316,712		2,754,134
Property, plant and equipment1		691,836		2,115,495		704,472		40,627		3,552,430

¹Included in Corporate and Other activities is $27.4 million of property, plant and equipment that is located in Nevada.

32

HUDBAY MINERALS INC.
Notes to Unaudited Condensed Consolidated Interim Financial Statements
(in thousands of US dollars, except where otherwise noted)
For the three months ended March 31, 2023 and 2022

25.Events after the reporting period

On April 13, 2023, Hudbay entered into an agreement with Copper Mountain Mining Corporation ("Copper Mountain") pursuant to which Hudbay will acquire all of the issued and outstanding common shares of Copper Mountain (the "Proposed Transaction").

Under the terms of the Proposed Transaction, Copper Mountain shareholders will receive 0.381 of a Hudbay common share for each Copper Mountain common share held, representing approximately C$2.67 per Copper Mountain common share and a $439 million equity value based on Hudbay's closing share price on April 12, 2023. The Proposed Transaction will be implemented by way of a court approved plan of arrangement under the Business Corporations Act (British Columbia) and, in addition to court approval, is subject to customary closing conditions, including approval by Hudbay and Copper Mountain shareholders and approval under the Competition Act (Canada). The Proposed Transaction is expected to close by late June 2023.

33

EX-99.3

Management's Discussion and Analysis of

Results of Operations and Financial Condition

For the three months ended

March 31, 2023

May 8, 2023

TABLE OF CONTENTS	Page
Introduction	1
Our Business	1
Summary	2
Key Financial Results	5
Key Production Results	6
Key Costs Results	6
Recent Developments	7
Peru Operations Review	12
Manitoba Operations Review	16
Financial Review	21
Liquidity and Capital Resources	29
Financial Risk Management	33
Trend Analysis and Quarterly Review	34
Non-IFRS Financial Performance Measures	36
Accounting Changes and Critical Estimates	49
Changes in Internal Control over Financial Reporting	49
Notes to Reader	49
Summary of Results	53

INTRODUCTION

This Management's Discussion and Analysis ("MD&A") dated May 8, 2023 is intended to supplement Hudbay Minerals Inc.'s unaudited condensed consolidated interim financial statements and related notes for the three months ended March 31, 2023 and 2022 (the "consolidated interim financial statements"). The consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), including International Accounting Standard 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB").

References to "Hudbay", the "Company", "we", "us", "our" or similar terms refer to Hudbay Minerals Inc. and its direct and indirect subsidiaries as at March 31, 2023.

Readers should be aware that:

-This MD&A contains certain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") that are subject to risk factors set out in a cautionary note contained in our MD&A.

-This MD&A includes an updated discussion of the risks associated with business integration and, in particular, the risks associated with integrating Copper Mountain Mining Corporation ("Copper Mountain") into our operations following closing of our proposed acquisition of Copper Mountain and uncertainties related to its potential impact on our financial condition, financial performance and cash flows, and supplements the discussion of these risks in our most recent Annual Information Form ("AIF").

-This MD&A 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 US issuers.

-We use a number of non-IFRS financial performance measures in our MD&A.

-The technical and scientific information in this MD&A has been approved by qualified persons based on a variety of assumptions and estimates.

For a discussion of each of the above matters, readers are urged to review the "Notes to Reader" discussion beginning on page 49 of this MD&A.

Additional information regarding Hudbay, including the risks related to our business and those that are reasonably likely to affect our financial statements in the future, is contained in our continuous disclosure materials, including our most recent AIF, consolidated financial statements and Management Information Circular available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

All amounts are in US dollars unless otherwise noted.

OUR BUSINESS

We are a diversified mining company with long-life assets in North and South America. Our Constancia operations in Cusco (Peru) produce copper with gold, silver and molybdenum by-products. Our Snow Lake operations in Manitoba (Canada) produce gold with copper, zinc and silver by-products. We have an organic pipeline that includes the Copper World project in Arizona and the Mason project in Nevada (United States), and our growth strategy is focused on the exploration, development, operation, and optimization of properties we already control, as well as other mineral assets we may acquire that fit our strategic criteria. We are governed by the Canada Business Corporations Act and our shares are listed under the symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima.

1

SUMMARY

First Quarter Operating and Financial Results; Production and Cost Guidance Reaffirmed

-Consolidated production in the first quarter included 22,562 tonnes of copper and 47,240 ounces of gold. Consolidated cash cost and sustaining cash cost per pound of copper produced, net of by-product credits¹ were $0.85 and $1.83, respectively, representing an improvement of 23% and 20%, respectively, compared to 2022 levels.

-Reaffirmed full year 2023 consolidated production guidance of 100,000 to 128,000 tonnes of copper at a cash cost of $0.40 to $0.80 per pound¹ and sustaining cash cost of $1.35 to $2.05 per pound¹ as first quarter production was in line with quarterly cadence expectations.

-Peru operations successfully managed through a complex environment to maintain steady performance and produce 20,517 tonnes of copper in the first quarter. The Peru team remained focused on maintaining strong margins and achieved a cash cost per pound of copper produced, net of by-product credits¹, of $1.36, which improved by 12% compared to the same period in 2022. Transportation and supply chains in Peru have normalized since mid-February and Constancia's concentrate inventory is now at normal levels, well ahead of schedule.

•Full mining activities resumed at the Pampacancha pit in February and the period of higher stripping from March to June is progressing well with mining of higher-grade ore now expected to commence late in the second quarter of 2023, slightly ahead of schedule.

-Manitoba operations produced 36,034 ounces of gold at a cash cost per ounce of gold produced, net of by-product credits¹, of $938, which was affected by temporary challenges at the Lalor mine in the quarter that were partly offset by strong throughput and gold recoveries at the New Britannia mill.

•Lalor ore production reached 4,800 tonnes per day late in the first quarter and throughout April after implementing changes to improve stope fragmentation and load-haul-dump equipment availability, together with many production optimization initiatives underway at the mine.

-First quarter net earnings and earnings per share were $5.5 million and $0.02, respectively. After adjusting for a non-cash gain of $8.2 million related to a quarterly revaluation of our closed site environmental reclamation provision and a $6.1 million revaluation loss related to the gold prepayment liability, among other items, first quarter adjusted earnings¹ per share were $0.00.

-Operating cash flow before change in non-cash working capital was $85.6 million and adjusted EBITDA¹ was $101.9 million in the first quarter.

-Cash and cash equivalents increased during the first quarter to $255.6 million and were positively impacted by the steady operation of the Constancia mill throughout the transportation and supply chain interruptions earlier in the quarter and the successful conversion of concentrate inventory into cash during the quarter, ahead of schedule.

-Signed a new 10-year agreement for 100% renewable energy supply to Constancia, resulting in an expected 40% reduction in total Scope 1 and Scope 2 greenhouse gas emissions company-wide, in line with our climate change target of a 50% reduction by 2030.

Executing on Growth Initiatives and Prudent Financial Planning

-On April 13, 2023, Hudbay announced a definitive agreement (the "Arrangement Agreement") to acquire all issued and outstanding common shares of Copper Mountain, to create a 150,000-tonnes-per-year copper producer with three long-life mines in tier-one jurisdictions and a world-class pipeline of organic copper growth projects. The combined company will be the third largest Canadian copper producer and its complementary asset base and technical expertise is expected to unlock $30 million in annual operating efficiencies and corporate synergies over the course of three years.

-Three-year production guidance includes average annual copper production of 110,000 tonnes from Constancia and average annual gold production of more than 190,000 ounces from Snow Lake, a 23% and 30% increase, respectively, from 2022 levels.

-Received positive permitting update at Copper World from the Army Corps of Engineers ("ACOE") and the required state level permits continue to be expected in 2023. Pre-feasibility study for Phase I of the Copper World project is well-advanced and on track for mid-2023.

-Peru exploration activities resumed with a focus on drill permitting for highly prospective satellite properties while evaluating the potential for reserve expansion at Constancia and Pampacancha through future mining phases.

-Snow Lake exploration activities are prioritizing step-out drilling for new discoveries to support future growth in annual production and mine life extension.

2

-Lalor 2023 winter exploration program intersected numerous occurrences of disseminated copper sulfides over two kilometres down plunge, indicating the potential close proximity of copper-gold feeder zones similar to the deeper lenses at Lalor.

-The Stall recovery improvement program is on track for commissioning in May with ramp-up to higher metal recoveries by mid-2023.

-Nevada drill program is planned for late 2023 to test high-grade skarn and large porphyry targets identified through recent geophysical surveys on private land claims near Mason.

-To benefit from strong current gold prices, Hudbay deferred eight months of prepaid gold deliveries from 2023 into 2024, which is expected to increase our cash position by approximately $53 million in 2023 at prevailing gold prices.

-As an additional prudent measure to ensure free cash flow generation in 2023, we entered into a zero-cost collar program in April for approximately 10% of copper production expected in the second half of 2023 at a floor price of $3.95 per pound while providing upside to copper price increases up to $4.28 per pound.

-On track to deliver the discretionary spending reduction targets for 2023 with lower growth capital and exploration expenditures compared to 2022.

Summary of First Quarter Results

Cash generated from operating activities in the first quarter of 2023 increased to $71.3 million compared to $63.3 million in the same quarter of 2022. Protests and civil unrest in the southern Peru mining corridor impacted our Peru operations early in the first quarter; however, these disruptions have abated since mid-February. Transportation of Constancia's concentrate and critical supplies has since returned to normal. Despite the logistical challenges that impacted Peru, operating cash flow before change in non-cash working capital was $85.6 million during the first quarter of 2023, reflecting an increase of $8.0 million compared to the same period of 2022. Copper and zinc production during the quarter was lower than the comparative prior year period primarily due to the planned closure of the Company's 777 mine in June 2022.

Production in the first quarter of 2023 did not include any production from the 777 mine, which closed, as planned, in June 2022. The comparison in this paragraph excludes the production from the 777 mine in the first quarter of 2022 to illustrate the comparative performance of our current operations. Consolidated copper production in the first quarter of 2023 increased by 2% compared to the same period in 2022 primarily due to higher throughput and copper grades in Peru. Consolidated gold production in the first quarter of 2023 increased by 3% compared to the first quarter of 2022, due to higher Peru throughput and higher Lalor gold grades and recoveries at Stall and New Britannia. Consolidated silver production in the first quarter increased by 1% compared to the same period in 2022. Consolidated zinc production in the first quarter of 2023 declined by 27% due to the transition of mining toward the gold lenses at Lalor and a corresponding decrease of production from the base metal zones. For a comprehensive comparison to the prior period (which includes production from the 777 mine), please refer to "Manitoba Operations Review" section. First quarter production was in line with expectations, and we have reaffirmed our 2023 production guidance for all metals.

Net earnings and earnings per share in the first quarter of 2023 were $5.5 million and $0.02, respectively, compared to net earnings and earnings per share of $63.8 million and $0.24, respectively, in the first quarter of 2022. The 2023 first quarter results were positively impacted by a non-cash gain of $8.2 million related to the quarterly revaluation of our closed site environmental reclamation provision and a $5.0 million variable consideration adjustment with respect to stream revenue and accretion. These items were offset by a $6.1 million revaluation loss related to the gold prepayment liability.

Adjusted net earnings¹ and adjusted net earnings per share¹ in the first quarter of 2023 were $0.1 million and $0.00 per share, respectively, after adjusting for the non-cash revaluation gain of the environmental reclamation provision and the revaluation loss on the gold prepayment liability, among other items. This compares to adjusted net earnings and adjusted net earnings per share of $5.2 million, and $0.02 in the same period of 2022. First quarter adjusted EBITDA¹ was $101.9 million, compared to $110.2 million in the same period of 2022.

In the first quarter of 2023, consolidated cash cost per pound of copper produced, net of by-product credits¹, was $0.85, compared to $1.11 in the same period in 2022. This decrease was a result of lower mining, milling and selling and administrative expenses, partially offset by higher freight, treatment and refining charges, lower precious metal by-product credits and lower copper production. Consolidated cash cost per pound of copper produced, net of by-product credits¹, was slightly above our 2023 guidance ranges primarily due to lower production in the first quarter. Consolidated sustaining cash cost per pound of copper produced, net of by-product credits¹, was $1.83 in the first quarter of 2023 compared to $2.29 in the same period in 2022. This decrease was primarily due to the same reasons outlined above as well as lower cash sustaining capital expenditures in Peru. Both measures are expected to further decline in future quarters with higher expected copper production and contributions from precious metal by-product credits. We are reaffirming its full year 2023 consolidated cash cost and sustaining cash cost guidance.

3

Consolidated all-in sustaining cash cost per pound of copper produced, net of by-product credits¹, was $2.07 in the first quarter of 2023, lower than $2.54 in the same period in 2022, due to the same reasons outlined above as well as lower corporate selling and administrative expenses.

As at March 31, 2023, our liquidity includes $255.6 million in cash as well as undrawn availability of $355.4 million under our revolving credit facilities. We expect that our current liquidity combined with cash flow from operations, will be sufficient to meet our liquidity needs for the foreseeable future.

* Mining activities at 777 were completed in June 2022

¹ Adjusted net earnings (loss) and adjusted net earnings (loss) per share, adjusted EBITDA, cash cost, sustaining cash cost, all-in sustaining cash cost per pound of copper produced, net of by-product credits, cash cost, sustaining cash cost per ounce of gold produced, net of by-product credits, combined unit cost and net debt are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

4

KEY FINANCIAL RESULTS

Financial Condition
(in $ thousands)		Mar. 31, 2023		Dec. 31, 2022
Cash	$	255,563	$	225,665
Total long-term debt		1,225,023		1,184,162
Net debt1		969,460		958,497
Working capital2		100,987		76,534
Total assets		4,367,982		4,325,943
Equity		1,574,521		1,571,809

¹ Net debt is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, please see discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

² Working capital is determined as total current assets less total current liabilities as defined under IFRS and disclosed on the interim consolidated financial statements.

Financial Performance		Three months ended
(in $ thousands, except per share amounts or as noted below)		Mar. 31, 2023		Mar. 31, 2022
Revenue	$	295,219	$	378,619
Cost of sales		228,706		293,351
Earnings before tax		17,430		88,861
Net earnings		5,457		63,815
Basic and diluted earnings per share		0.02		0.24
Adjusted earnings per share1		0.00		0.02
Operating cash flow before changes in non-cash working capital2		85.6		77.6
Adjusted EBITDA1,2		101.9		110.2

¹ Adjusted earnings per share and adjusted EBITDA are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

² In $ millions.

5

KEY PRODUCTION RESULTS

		Three months ended			Three months ended
		Mar. 31, 2023			Mar. 31, 2022
		Peru	Manitoba	Total	Peru	Manitoba	Total
Contained metal in concentrate and doré produced1
Copper	tonnes	20,517	2,045	22,562	19,166	5,536	24,702
Gold	oz	11,206	36,034	47,240	10,789	43,167	53,956
Silver	oz	552,167	150,642	702,809	505,568	278,789	784,357
Zinc	tonnes	-	9,846	9,846	-	22,252	22,252
Molybdenum	tonnes	289	-	289	207	-	207
Payable metal sold
Copper	tonnes	16,316	2,225	18,541	16,825	3,784	20,609
Gold2	oz	11,781	37,939	49,720	14,452	33,891	48,343
Silver2	oz	392,207	149,677	541,884	636,133	228,458	864,591
Zinc3	tonnes	-	5,628	5,628	-	17,306	17,306
Molybdenum	tonnes	254	-	254	213	-	213

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 For the three months ended March 31, 2023 this metric includes payable zinc in concentrate sold. For the three months ended March 31, 2022, this metric also included payable refined zinc metal sold.

KEY COST RESULTS

		Three months ended		Guidance
		Mar. 31, 2023	Mar. 31, 2022	Annual 2023
Peru cash cost per pound of copper produced
Cash cost 1	$/lb	1.36	1.54	1.05 - 1.30
Sustaining cash cost 1	$/lb	2.12	2.27
Manitoba cash cost per ounce of gold produced
Cash cost 1	$/oz	938	416	500 - 800
Sustaining cash cost 1	$/oz	1,336	1,187
Consolidated cash cost per pound of copper produced
Cash cost 1	$/lb	0.85	1.11	0.40 - 0.80
Sustaining cash cost 1	$/lb	1.83	2.29	1.35 - 2.05
All-in sustaining cash cost 1	$/lb	2.07	2.54

¹ Cash cost, sustaining cash cost, all-in sustaining cash cost per pound of copper produced, net of by-product credits, gold cash cost, sustaining cash cost per ounce of gold produced, net of by-product credits, and unit operating cost are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

6

RECENT DEVELOPMENTS

Combination with Copper Mountain to Create a Premier Americas-Focused Copper Producer

On April 13, 2023, Hudbay entered into the Arrangement Agreement to acquire all of the issued and outstanding common shares of Copper Mountain (the "Transaction").

Upon completion, the Transaction will create a premier Americas-focused copper mining company with annual copper production of 150,000 tonnes, based on 2023 production guidance, from three long-life mines and a world-class pipeline of organic copper growth projects. The combined company will represent the third largest copper producer in Canada based on 2023 estimated copper production, and its complementary assets are expected to unlock $30 million in annual operating efficiencies and corporate synergies over the course of three years. The combined company will be well-positioned to deliver sustainable cash flows with compelling organic growth and the opportunity for a valuation re-rate as a larger, more diversified copper producer with enhanced liquidity. The Transaction meets Hudbay's stringent financial and strategic acquisition criteria for pursing value accretive opportunities and the incremental diversified cash flows will further strengthen our balance sheet and support our deleveraging initiatives.

Under the terms of the Transaction, Copper Mountain shareholders will receive 0.381 of a Hudbay common share for each Copper Mountain common share held, representing approximately C$2.67 per Copper Mountain common share and a US$439 million equity value based on Hudbay's closing share price on April 12, 2023. The Transaction will be implemented by way of a court approved plan of arrangement under the Business Corporations Act (British Columbia). In addition to court approval, the Transaction is subject to customary closing conditions, including approval by Hudbay and Copper Mountain shareholders and approval under the Competition Act (Canada). The Transaction is expected to close by late June 2023.

100% Renewable Power Supply at Constancia

During the first quarter of 2023, Hudbay signed a new 10-year power purchase agreement with ENGIE Energía Perú for access to a 100% renewable energy supply to our Constancia operations in Peru. The agreement will come into effect in January 2026 following the conclusion of Constancia's existing power supply agreement. The agreement provides several improvements over the existing power supply contract, including improved flexibility in power supply levels, lower contracted costs and guaranteed supply to meet fluctuating demand requirements and no penalties for reduced usage. Total Scope 1 and Scope 2 greenhouse gas ("GHG") emissions company-wide at our current operations are expected to decline by 40% during the life of the contract, positioning us well to achieve our 2030 climate change target of a 50% reduction in Scope 1 and Scope 2 GHG emissions.

Copper World Positive Permitting Update; Pre-Feasibility Study Well-Advanced

In March 2023, we received confirmation from the ACOE that our previous surrender of the Section 404 Clean Water Act permit for the former Rosemont project ("404 Permit") was formally accepted and revoked as requested. The ACOE also reaffirmed the validity of the March 2021 approved jurisdictional determinations whereby the ACOE determined there are no waters of the U.S. in the area submitted for analysis, which is consistent with internal studies that also contemplate the full Copper World area.

We surrendered the 404 Permit to the ACOE in April 2022 as there is no evidence of jurisdictional waters of the U.S. on the former Rosemont project site. In May 2022, Judge Soto from the U.S. District Court for the District of Arizona issued a favourable ruling that affirmed Hudbay's surrender of the 404 Permit was effective and that the new Copper World project is not connected to the previous federal permitting process.

We commenced the permitting process for Copper World with the approval of a Mined Land Reclamation Plan in May 2022. This approval by the Arizona State Mine Inspector was challenged in state court but the challenge was dismissed in May 2023 as having no basis.

In late 2022, we submitted the state-level applications for an Aquifer Protection Permit and an Air Quality Permit to the Arizona Department of Environmental Quality. We continue to expect to receive these two outstanding state permits in 2023.

7

In May 2023, the Arizona Corporation Commission approved an amendment to the Certificate of Environmental Compatibility ("CEC") authorizing the electric transmission line to site. The CEC was granted for the Rosemont project in 2012 and the amendment removed the requirements for federal permits so that the CEC can be used to construct the transmission line for Copper World.

Clearing and grading work to prepare for the development of Copper World continues at site, including the construction of roads and other facilities. Phase I of Copper World reflects an operation with processing infrastructure on Hudbay's private lands and mining occurring on patented mining claims, requiring only state and local permits. Pre-feasibility activities for Phase I are well-advanced and a pre-feasibility study is expected to be released in mid-2023. Upon receipt of the state level permits, we expect to evaluate a bulk sampling program at Copper World to continue to de-risk the project by testing grade continuity, variable cut-off effectiveness and metallurgical strategies. We also intend to initiate a minority joint venture partner process following receipt of permits, which will allow the potential joint venture partner to participate in the funding of definitive feasibility study activities in 2024 as well as in the final project design for Copper World.

Continued Focus on Free Cash Flow Generation

We were successful in ensuring steady operation of the Constancia mill throughout the Peru transportation and supply chain interruptions experienced earlier in the quarter. This was achieved through effective logistical risk mitigation plans and with the continued strong support from our local communities. Despite building up excess concentrate inventories at site in February, we successfully reduced concentrate inventories throughout March, well ahead of schedule, which improved sales volumes and cash flow during the quarter.

With a focus on generating positive cash flow and strong returns on invested capital in 2023, we are committed to deleveraging and disciplined capital allocation. In an effort to receive full exposure to current strong gold prices, we amended our gold forward sale and prepay agreements during the first quarter of 2023 to defer eight months of deliveries starting with February 2023. Deliveries of the outstanding 37,500 ounces of gold will resume in fixed monthly amounts starting October 2023 and continue until August 2024. The deferral of gold deliveries is expected to increase our cash position in 2023 by approximately $53 million at prevailing gold prices as part of our continued focus on reducing net debt.

As an additional prudent measure to ensure free cash flow generation and continued financial discipline in 2023, we successfully extended our existing quotational period hedging program in the first quarter for approximately 8,000 tonnes of contained copper in the previously unsold concentrate inventory in Peru to lock in prevailing copper prices. In addition, in April 2023, the Company entered into a zero-cost collar program for approximately 10% of copper production expected in the second half of 2023. The program is for 1,200 tonnes of copper per month for six months starting in July 2023 and establishes a floor price of $3.95 per pound while providing upside to increases in the copper price up to a maximum of $4.28 per pound.

The Company is on track to deliver our discretionary spending reduction targets by reducing growth capital and exploration spending in Arizona, Manitoba and Peru in 2023 compared to 2022. Total growth capital expenditures in the first quarter of 2023 were approximately $16.3 million, a 22% reduction from the fourth quarter of 2022. Total exploration expenses for 2023 are on track to be in line with annual guidance of $20 million, a 42% decrease from 2022 levels.

8

Annual Reserve and Resource Update

We provided our annual mineral reserve and resource update on March 30, 2023. Current mineral reserve estimates at Constancia total 492 million tonnes at 0.30% copper with approximately 1.5 million tonnes of contained copper. The expected mine life of Constancia has been maintained and extends until 2038. The copper contained in measured and indicated mineral resources has increased in 2023 due to success in converting inferred mineral resources.

Current mineral reserve estimates in Snow Lake total 18 million tonnes with approximately 2.1 million ounces in contained gold, and the expected mine life of the Snow Lake operations has been maintained and extends until 2038. With the Snow Lake operations achieving higher production levels after the full ramp-up of the New Britannia mill in 2022 and the transition of the Flin Flon workforce and equipment to the Lalor mine, exploration activities are now prioritizing step-out drilling to identify opportunities for meaningful additions to the mineral resource base to support future growth. Total gold contained in inferred resources was unchanged at 1.7 million ounces, which provides the potential to maintain strong production levels beyond 2030 and further extend the mine life in Snow Lake.

We released our updated three-year production guidance with our annual mineral reserve and resource update, as presented below. Annual production at our Constancia operations is expected to average approximately 110,000 tonnes of copper and 87,000 ounces of gold over the next three years, representing a 23% and 49% increase, respectively, from 2022 levels. Annual gold production from Snow Lake is expected to average more than 190,000 ounces over the next three years, which represents a further increase of 30% from 2022 levels.

3-Year Production Outlook Contained Metal in Concentrate and Doré1,2		2023 Guidance	2024 Guidance	2025 Guidance
Peru
Copper	tonnes	91,000 - 116,000	107,000 - 132,000	94,000 - 120,000
Gold	oz	83,000 - 108,000	96,000 - 117,000	53,000 - 64,000
Silver	oz	2,210,000 - 2,650,000	2,600,000 - 3,100,000	2,400,000 - 3,000,000
Molybdenum	tonnes	1,300 - 1,600	1,600 - 1,900	1,400 - 1,700
Manitoba
Gold	oz	175,000 - 205,000	175,000 - 205,000	175,000 - 225,000
Zinc	tonnes	28,000 - 36,000	35,000 - 43,000	35,000 - 45,000
Copper	tonnes	9,000 - 12,000	9,000 - 13,000	7,000 - 11,000
Silver	oz	750,000 - 1,000,000	800,000 - 1,000,000	900,000 - 1,200,000
Total
Copper	tonnes	100,000 - 128,000	116,000 - 145,000	101,000 - 131,000
Gold	oz	258,000 - 313,000	271,000 - 322,000	228,000 - 289,000
Zinc	tonnes	28,000 - 36,000	35,000 - 43,000	35,000 - 45,000
Silver	oz	2,960,000 - 3,650,000	3,400,000 - 4,100,000	3,300,000 - 4,200,000
Molybdenum	tonnes	1,300 - 1,600	1,600 - 1,900	1,400 - 1,700

¹ Metal reported in concentrate and doré is prior to treatment or refining losses or deductions associated with smelter terms.

² Guidance is inclusive of Hudbay's currently owned properties as at March 31, 2023 and does not include any production from Copper Mountain.

9

Exploration Update

Constancia and Pampacancha In-Mine Exploration

We are completing a limited drill program and technical evaluations at the Constancia deposit to confirm the economic viability of adding an additional mining phase to the current mine plan that would convert a portion of the mineral resources to mineral reserves. We are also completing a drill program at the Pampacancha deposit to test mineral reserve extension potential. The results from these drill programs and technical and economic evaluations are expected to be incorporated in the next annual mineral reserve and resource update.

Maria Reyna and Caballito Exploration

Hudbay controls a large, contiguous block of mineral rights with the potential to host satellite mineral deposits in close proximity to the Constancia processing facility, including the past producing Caballito property and the highly prospective Maria Reyna property. We commenced early exploration activities at Maria Reyna and Caballito after completing a surface rights exploration agreement with the community of Uchucarcco in August 2022. Surface investigation activities together with baseline environmental and archaeological activities necessary to support drill permit applications have been completed. Drill permit applications are expected to be submitted in the coming months. Surface mapping and geochemical sampling confirm that both Caballito and Maria Reyna host sulfide and oxide rich copper mineralization in skarns, hydrothermal breccias and large porphyry intrusive bodies.

Lalor Near-Mine Exploration

Hudbay commenced a winter drill program in January 2023 with four drill rigs testing the down-plunge gold and copper extensions of the Lalor deposit, in the first step-out drilling in the deeper zones at Lalor since the initial discovery of the gold and copper-gold zones in 2009 and 2010. This initial campaign consisted of eight widely spaced drill holes over a distance of two kilometres. Seven of the drill holes reached their planned minimum depth of 1,500 metres prior to the spring thaw that necessitated an early end of the program. All these drill holes intersected the zone of strong alteration known to host the Lalor mineralization and have shown many occurrences of disseminated copper sulfides indicating the potential close proximity of one or more higher grade copper-gold feeder zones similar to Lens 27 currently in production at Lalor. Furthermore, three of the holes have shown better mineral endowment with several intercepts of a minimum of four metres of copper mineralization. Although assay results are pending, these initial results are very encouraging indications that the rocks hosting the rich Cu-Au mineralization at Lalor continue down plunge. Geophysical borehole surveying will be completed on all drill holes and will help refine the targets for the next phase of drilling to be conducted in early 2024.

One additional drill rig is testing a geophysical anomaly located within 400 metres of existing Lalor underground infrastructure. Four drill holes were completed during the winter drill program and assay results from base metal and copper-gold mineralized intercepts identified from core logging are pending.

Flin Flon Tailings Reprocessing Opportunity

In 2021, Hudbay identified the opportunity to reprocess Flin Flon tailings where in excess of 100 million tonnes of tailings have been deposited for over 90 years. The company completed confirmatory drilling in 2022 which covered about two-thirds of the facility. The results indicated higher zinc, copper and silver grades than predicted from historical mill records while confirming the historical gold grade. Hudbay is completing metallurgical test work and evaluating metallurgical technologies to assess the processing viability of the Flin Flon tailings.

Mason Exploration

The Mason project is a large greenfield copper deposit located in the historic Yerington District of Nevada and is one of the largest undeveloped copper porphyry deposits in North America. We completed a PEA in 2021 which demonstrated robust project economics from a 27-year mine life operation. There is opportunity to further enhance the project economics through exploration for higher grade satellite deposits on our prospective land package near Mason, including Mason Valley. The Mason Valley property hosts several historical underground copper mines that were in production in the early 1900s. Much of the Mason Valley property is located on Hudbay's wholly owned private lands within 15 kilometres of the planned processing infrastructure for the Mason project and contains highly prospective skarn mineralization. A conductivity-resistivity IP ground survey conducted in the fourth quarter of 2022 was successful in identifying the mineralization associated with the historical mines and confirmed the potential for both high-grade skarn targets as well as a large porphyry target below the historical mines. These results, 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 these targets in late 2023.

10

Senior Management Team Appointments

In March 2023, Hudbay promoted Javier Del Rio to Senior Vice President, South America and USA and Olivier Tavchandjian to Senior Vice President, Exploration and Technical Services. In March 2023, Hudbay appointed Warren Flannery as Vice President, Business Planning and Reclamation.

Mr. Del Rio joined Hudbay in 2010 and has been instrumental in establishing and growing the company's Peruvian business, and in early 2022, he assumed responsibility for Hudbay's Arizona business unit. He has over 30 years of mining experience and prior to joining Hudbay, he held management positions in business planning, optimization processes and business analysis with Newmont Mining Corporation in the USA and Peru.

Mr. Tavchandjian has been a key member of Hudbay's senior management team since 2017, leading Hudbay's exploration strategy and adding significant value through growing the mineral resources and reserves at all the company's key assets. He assumed responsibility for Hudbay's technical services function in April 2022, has more than 30 years of experience in strategic and life of mine planning and has provided invaluable support to the operations and corporate development teams.

Mr. Flannery is responsible for capital planning and operations strategy, as well as reclamation and non-producing facilities. He is an experienced mining professional with nearly 30 years of extensive experience in mine operations, planning and project development at global mining companies, including Vale Inco, Barrick, PotashCorp and Falconbridge. Prior to joining Hudbay, he was head of the Mining Technical group at CIBC's global mining corporate and investment banking arm for ten years, working on a broad range of capital markets financing and advisory mandates.

11

PERU OPERATIONS REVIEW

		Three months ended
		Mar. 31, 2023	Mar. 31, 2022
Constancia ore mined1	tonnes	3,403,181	6,908,151
Copper	%	0.34	0.32
Gold	g/tonne	0.04	0.04
Silver	g/tonne	2.52	3.22
Molybdenum	%	0.01	0.01
Pampacancha ore mined1	tonnes	897,295	847,306
Copper	%	0.49	0.27
Gold	g/tonne	0.52	0.43
Silver	g/tonne	5.12	4.06
Molybdenum	%	0.01	0.01
Total ore mined	tonnes	4,300,476	7,755,457
Strip ratio2		1.84	1.10
Ore milled	tonnes	7,663,728	7,213,833
Copper	%	0.33	0.31
Gold	g/tonne	0.08	0.08
Silver	g/tonne	3.69	3.26
Molybdenum	%	0.01	0.01
Copper concentrate	tonnes	95,448	81,608
Concentrate grade	% Cu	21.50	23.48
Copper recovery	%	81.7	85.3
Gold recovery	%	56.8	59.8
Silver recovery	%	60.7	66.9
Molybdenum recovery	%	34.8	21.1
Combined unit operating costs3,4,5	$/tonne	11.47	12.37

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 Combined unit costs is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

⁵ Excludes approximately $0.0 million, or $0.00 per tonne, of COVID-19 related costs during the three months ended March 31, 2023 and $2.3 million, or $0.32 per tonne, of COVID-19 related costs during the three months ended March 31, 2022.

Total ore mined in the first quarter of 2023 decreased by 45% compared to the same period in 2022 mainly due to the processing of stockpiles in order to ration fuel during protests and civil unrest in Peru that occurred in early 2023. Since mid-February, transportation of Constancia's concentrate and critical supplies has returned to normal.

Full mining activities resumed in the Pampacancha pit in February and the period of higher stripping from March to June is progressing well with mining of higher-grade ore now expected to resume late in the second quarter of 2023, slightly ahead of the original schedule.

The logistical risk mitigation plans implemented during the first quarter, together with strong continued support from our local communities, enabled our plant to continue to operate uninterrupted at full capacity supplemented with approximately 3.9 million tonnes of stockpiled ore. Ore milled during the first quarter of 2023 was 6% higher than the same period in 2022 mainly due to a planned plant maintenance shutdown during the comparative 2022 quarter. Milled copper grades increased by 6% in the first quarter of 2023 compared to the same period in 2022 due to higher head grades from both Pampacancha and Constancia but were lower than the fourth quarter of 2022 due to the processing of lower-grade stockpiles as discussed above. We expect to continue to process a significant amount of stockpiles during the second quarter of 2023 while we are completing the planned three-month stripping period in the Pampacancha pit, in line with our mine plan.

12

Recoveries of copper, gold and silver during the first quarter of 2023 were 4%, 5% and 9% lower, respectively, than the comparative 2022 period due to higher levels of impurities in stockpile ore. Similar declines in recoveries were noted relative to the fourth quarter of 2022 for the same reason.

Combined mine, mill and G&A unit operating costs in the first quarter of 2023 were 7% lower primarily due to lower mining costs.

Contained metal in concentrate produced		Three months ended		Guidance
		Mar. 31, 2023	Mar. 31, 2022	Annual
				2023
Copper	tonnes	20,517	19,166	91,000 - 116,000
Gold	oz	11,206	10,789	83,000 - 108,000
Silver	oz	552,167	505,568	2,210,000 - 2,650,000
Molybdenum	tonnes	289	207	1,300 - 1,600

First quarter 2023 production of copper, gold, silver and molybdenum was 7%, 4%, 9% and 40% higher, respectively, than the comparative period in 2022 due to higher throughput, copper and silver grades and higher molybdenum recoveries. Due to the mine plan adjustments made in the first quarter of 2023 and a period of higher stripping activities in the Pampacancha pit in the second quarter of 2023, we continue to expect 2023 Peru production to be higher in the second half of 2023 and we are on track to achieve full year 2023 Peru production guidance.

 

13

         

Peru Cash Cost and Sustaining Cash Cost

		Three months ended		Guidance
		Mar. 31, 2023	Mar. 31, 2022	Annual 2023
Cash cost per pound of copper produced, net of by-product credits1	$/lb	1.36	1.54	1.05 - 1.30
Sustaining cash cost per pound of copper produced, net of by-product credits1	$/lb	2.12	2.27

¹ Cash cost and sustaining cash costs per pound of copper produced, net of by-product credits, are not recognized under IFRS. For more detail on these non-IFRS financial performance measures, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

Cash cost per pound of copper produced, net of by-product credits, in the first quarter of 2023 was $1.36, a decrease of 12% compared to the same period in 2022 due to lower mining costs, higher capitalized stripping, higher molybdenum by-product credits and higher copper production. This was partially offset by higher fuel prices and labour costs as well as higher freight and treatment and refining costs. Despite the decline from the comparative 2022 period, this cost measure remains slightly above the upper end of our 2023 guidance range. However, cash cost per pound of copper produced, net of by-product credits, is expected to decline and full year cash costs are expected to remain within the 2023 guidance range with higher expected copper production and contributions from precious metal by-product credits later this year.

Sustaining cash cost per pound of copper produced, net of by-product credits, for the first quarter of 2023 was 7% lower than the comparative 2022 period primarily due to the same factors affecting cash cost noted above, partially offset by higher sustaining capital expenditures.

14

Metal Sold

		Three months ended
		Mar. 31, 2023	Mar. 31, 2022
Payable metal in concentrate
Copper	tonnes	16,316	16,825
Gold	oz	11,781	14,452
Silver	oz	392,207	636,133
Molybdenum	tonnes	254	213

As noted above, transportation of Constancia's concentrate has normalized since mid-February 2023. As a result, we have significantly decreased the level of concentrate inventories at site to less than 7,000 wet metric tonnes as of the end of March from a peak of 47,000 wet metric tonnes in mid-February. Concentrate was transported to the port at a significantly higher rate than normal, and despite completing several port shipments in March well ahead of schedule, slightly elevated concentrate inventory remained at the port at the end of March. We continued to complete several shipments in April and concentrate inventory at the port reached normal levels by mid-April.

Peru's copper, gold and silver sales in the first quarter of 2023 were impacted by higher-than-normal unsold copper concentrate inventory levels, as described above. Furthermore, payable gold and silver sales during the first quarter of 2023 were 18% and 38% lower, respectively, than the corresponding period in 2022 due to a precious metal stream sale that settled shortly after the March 31, 2023 cutoff. Payable gold and silver included in this sale was approximately 4.5 thousand ounces of gold and 341 thousand ounces of silver.

15

MANITOBA OPERATIONS REVIEW

		Three months ended
		Mar. 31, 2023	Mar. 31, 20221
Lalor ore mined	tonnes	373,599	386,752
Gold	g/tonne	3.96	3.76
Copper	%	0.57	0.80
Zinc	%	3.32	4.06
Silver	g/tonne	18.24	22.94
New Britannia ore milled	tonnes	143,042	124,176
Gold	g/tonne	6.05	5.63
Copper	%	0.61	0.86
Zinc	%	0.76	0.85
Silver	g/tonne	22.39	22.03
Copper concentrate	tonnes	5,556	6,952
Concentrate grade	% Cu	14.29	13.70
Copper recovery - concentrate	%	91.7	89.0
Gold recovery - concentrate	%	62.0	61.4
Silver recovery - concentrate	%	61.9	63.4
Contained metal in concentrate produced
Gold	oz	17,235	13,820
Copper	tonnes	794	953
Silver	oz	63,769	55,757
Metal in doré produced2
Gold	oz	5,387	6,280
Silver	oz	11,578	10,046
Stall ore milled	tonnes	242,619	273,125
Gold	g/tonne	2.78	3.07
Copper	%	0.59	0.81
Zinc	%	4.81	5.78
Silver	g/tonne	17.14	23.68
Copper concentrate	tonnes	6,645	9,328
Concentrate grade	% Cu	18.83	20.51
Zinc concentrate	tonnes	19,198	26,469
Concentrate grade	% Zn	51.29	51.06
Copper recovery	%	87.0	86.7
Zinc recovery	%	84.4	85.7
Gold recovery	%	61.9	55.8
Silver recovery	%	56.3	58.6
Contained metal in concentrate produced
Gold	oz	13,412	15,062
Copper	tonnes	1,251	1,914
Zinc	tonnes	9,846	13,516
Silver	oz	75,295	121,888

¹ The 777 mine and Flin Flon concentrator information is not disclosed in the table above. The relevant comparative information can be found on page 55 in the Summary of Results section in this MD&A.

² Doré includes slag and carbon fines in Q1 2023.

16

Unit Operating Costs1		Three months ended
		Mar. 31, 2023	Mar. 31, 20224
Lalor	C$/tonne	136.58	126.42
New Britannia	C$/tonne	81.98	93.78
Stall	C$/tonne	34.33	30.20
Combined mine/mill unit operating costs2,3
Manitoba	C$/tonne	216	1765

¹ Reflects costs per tonne of ore mined/milled.

² Reflects combined mine, mill and G&A costs per tonne of milled ore.

³ Combined unit costs is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

⁴ The Flin Flon concentrator was decommissioned in Q3 2022. The relevant comparative information can be found on page 55 in the Summary of historical information in this MD&A.

⁵ Combined mine/mill unit operating costs shown for Q1 2022 included the Flin Flon operations and are not directly comparable to the current costs with only Snow Lake operations.

Our Manitoba team continues to advance a number of key initiatives to support higher production levels and improved metal recoveries at our Snow Lake operations and have made significant progress in building longhole inventory, optimizing the development drift size and focusing on shaft availability improvements to enable more ore to be hoisted to surface while minimizing inefficient trucking of ore via the ramp. The first phase of the Stall mill recovery project, consisting of new cyclone packs, state-of-the-art Jameson Cells on the copper and zinc circuits and process control improvements, is on track for commissioning in May with ramp-up to higher metal recoveries expected by mid-2023.

Lalor's ore production in the first quarter was impacted by stope muck fragmentation issues that created delays at the rock breakers and low load-haul-dump equipment availability in March. We implemented changes to improve stope fragmentation and load-haul-dump equipment availability, which together with the many production optimization initiatives underway at Lalor, resulted in Lalor achieving higher production levels of 4,800 tonnes per day late in the first quarter and throughout April.

Ore mined at our Manitoba operations during the first quarter of 2023 was 42% lower than the same period in 2022 mainly due to the planned closure of 777 in June 2022 which resulted in a significant decline in ore mined in the first quarter compared to the prior year period, which benefited from the full contribution of 777 mine production. Excluding 777 production, Lalor mined ore in the first quarter was 3% lower than the same period in 2022 due to the temporary issues noted above. Gold grades mined during the first quarter of 2023 were 5% higher than the same period in 2022. Copper, zinc and silver grades mined at Lalor during the first quarter of 2023 were 29%, 18% and 20% lower, respectively, compared to the same period in 2022, consistent with the mine plan.

Total mine unit operating costs during the first quarter of 2023 increased by 8% compared to the same period in 2022 due to lower ore production volumes and inflationary cost pressures on materials and consumables.

The Stall mill processed 11% less ore in the first quarter of 2023 compared to the same period in 2022, which was in line with Lalor's reduced production of base metal ore. The higher volume of mined gold ore was processed at the New Britannia mill. Stall mill recoveries were consistent with the metallurgical model for the head grades delivered. Compared to the same period in 2022, unit operating costs at the Stall mill were 14% higher due to the lower volume of ore processed.

The New Britannia mill continued to achieve consistent production above its nameplate capacity in the first quarter of 2023, averaging approximately 1,590 tonnes per day. We continue to advance improvement initiatives at New Britannia with a focus on reducing reagent and grinding media consumption. These initiatives entail minimal capital outlays while further improving overall metal recoveries and copper concentrate grades.

Combined mine, mill and G&A unit operating costs in the first quarter of 2023 increased by 23%, compared to the same period in 2022 reflecting inflationary cost pressures on materials and consumables, lower mine throughput as described above, and the standalone cost structure of Lalor compared to the same period in 2022, which included operating costs for both Lalor and the lower cost 777 mine.

17

The zinc plant in Flin Flon permanently ceased operations in June 2022. Domestic zinc concentrate treated and refined zinc metal produced during the first quarter of 2022 were 41,723 tonnes and 20,063 tonnes, respectively, with no production in the comparative 2023 period. The associated zinc plant unit operating costs in the first quarter of 2022 were C$0.62/lb. Closure activities commenced in the third quarter of 2022 and continue to progress safely during 2023.

		Three months ended		Guidance
Contained metal in concentrate and doré produced1		Mar. 31, 2023	Mar. 31, 2022	Annual
				2023
Gold2	oz	36,034	43,167	175,000 - 205,000
Copper	tonnes	2,045	5,536	9,000 - 12,000
Zinc	tonnes	9,846	22,252	28,000 - 36,000
Silver3	oz	150,642	278,789	750,000 - 1,000,000

¹ Metal reported in concentrate is prior to deductions associated with smelter terms.

² Gold production guidance includes gold contained in concentrate produced and gold in doré.

³ Silver production guidance includes silver contained in concentrate produced and silver in doré.

Metal production during the first quarter of 2023 was lower than the comparative 2022 period due to lower volumes from the closure of 777 mine in June 2022 and lower copper, zinc and silver grades at Lalor, partially offset by higher gold grades and higher gold recoveries at New Britannia. Manitoba's production of copper, gold, silver and zinc in the first quarter of 2023 was lower by 63%, 17%, 46% and 56%, respectively, than the comparative 2022 period for the reasons outlined above.

With the completion of a number of key initiatives aimed to support higher production levels at Lalor, improved metal recoveries at the mills and a prioritization of mining higher gold grade zones at Lalor throughout the year, as planned, full year Manitoba production of all metals remains on track to achieve guidance ranges for 2023.

* Mining activities at 777 were completed in June 2022

18

   

* Mining activities at 777 were completed in June 2022

19

Manitoba Cash Cost and Sustaining Cash Cost

		Three months ended		Guidance
				Annual
		Mar. 31, 2023	Mar. 31, 2022	2023
Cost per pound of gold produced
Cash cost per ounce of gold produced, net of by-product credits 1, 2	$/oz	938	416	500 - 800
Sustaining cash cost per ounce of gold produced, net of by-product credits 1, 2	$/oz	1,336	1,187

¹ Cash cost and sustaining cash cost per ounce of gold produced, net of by-product credits, are not recognized under IFRS. For more detail on this non-IFRS financial performance measure, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

² 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.

Cash cost per ounce of gold produced, net of by-product credits, in the first quarter of 2023 was $938, an increase of 125% from the comparative 2022 period, primarily due to lower throughput from Stall mill, lower by-product credits, and higher treatment and refining charges. This was partially offset by lower mining, milling, G&A, freight costs and the elimination of zinc refining costs due to the closure of 777 and the zinc plant in June 2022. Cash cost per ounce of gold produced, net of by-product credits in the first quarter of 2023 was 17% above the upper end of our 2023 guidance range; however, it was impacted by temporary production issues at Lalor and lower by-product credits, as mentioned earlier, and we expect this cost measure to decline throughout 2023. Full year cash costs are expected to decline to be within the 2023 guidance range with increasing gold production throughout the year from higher grades and throughput at Lalor and the completion of the Stall recovery project in the second quarter, as planned.

Sustaining cash cost per ounce of gold produced, net of by-product credits, for the first quarter of 2023 was $1,336, an increase of 13% from the comparative 2022 period primarily due to the same factors affecting cash cost noted above, partially offset by lower sustaining capital expenditures.

Metal Sold

		Three months ended
		Mar. 31, 2023	Mar. 31, 2022
Payable metal in concentrate and doré
Gold	oz	37,939	33,891
Copper	tonnes	2,225	3,784
Zinc 1	tonnes	5,628	17,306
Silver	oz	149,677	228,458

¹ Includes refined zinc metal and payable zinc in concentrate sold.

Sales of copper, silver, and zinc during the three months ended March 31, 2023 were lower than the comparable period in 2022 due to the same factors affecting production noted above. Gold sales during 2023 were 12% higher than the comparative period due to higher gold grades and throughput at New Britannia mill.

20

FINANCIAL REVIEW

Financial Results

In the first quarter of 2023, we recorded a net profit of $5.5 million compared to a net profit of $63.8 million in the first quarter of 2022, representing a reduction in profit of $58.3 million.

The following table provides further details on these variances:

(in $ millions)	Three months ended March 31, 2023
Increase (decrease) in components of profit or loss:
Revenues	(83.4	)
Cost of sales
Mine operating costs	51.0
Depreciation and amortization	13.7
Selling and administrative expenses	2.6
Exploration expenses	10.4
Re-evaluation adjustment - environmental obligation	(71.6	)
Other expenses	4.1
Net finance expense	1.8
Tax expense	13.1
Reduction in profit for the period	(58.3	)

Revenue

Revenue for the first quarter of 2023 was $295.2 million, $83.4 million lower than the same period in 2022, primarily as a result of lower copper prices, lower copper, zinc and silver sales volumes, and higher treatment and refining charges, partially offset by higher molybdenum and gold prices. Copper and zinc sales volumes were significantly lower than prior year due to a buildup of unsold copper concentrate inventory as a result of nation-wide road blockades in Peru during the quarter and the planned closure of the 777 mine in Manitoba in June 2022 contributing to higher production and sales in the comparative period.

21

The following table provides further details on these variances:

(in $ millions)	Three months ended March 31, 2023
Metals prices1
Lower copper prices	(22.4	)
Lower zinc prices	(4.4	)
Higher gold prices	6.9
Higher silver prices	0.4
Sales volumes
Lower copper sales volumes	(20.7	)
Lower zinc sales volumes	(45.2	)
Higher gold sales volumes	2.4
Lower silver sales volumes	(7.0	)
Other
Change in derivative mark-to-market on zinc	(0.1	)
Molybdenum and other volume and pricing differences	11.5
Variable consideration adjustments	1.6
Effect of higher treatment and refining charges	(6.4	)
Decrease in revenue in 2023 compared to 2022	(83.4	)

¹ See discussion below for further information regarding metals prices.

Our revenue by significant product type is summarized below:

	Three months ended
(in $ millions)	Mar. 31, 2023		Mar. 31, 2022
Copper	164.2		209.0
Zinc	19.8		66.4
Gold	74.9		67.6
Silver	6.3		6.6
Molybdenum	19.0		9.2
Other metals	0.2		2.4
Revenue from contracts	284.4		361.2
Amortization of deferred revenue - gold	5.4		13.2
Amortization of deferred revenue - silver	5.6		11.8
Amortization of deferred revenue - variable consideration adjustments - prior periods	4.9		3.2
Pricing and volume adjustments1	13.4		1.2
Treatment and refining charges	(18.5	)	(12.1	)
Revenue	295.2		378.6

¹ Pricing and volume adjustments represents mark-to-market adjustments on provisionally prices sales, realized and unrealized changes to fair value for non-hedge derivative contracts and adjustments to originally invoiced weights and assays.

For further detail on variable consideration adjustments, refer to note 16 of our consolidated interim financial statements.

22

Realized sales prices

This measure is intended to enable management and investors to understand the average realized price of metals sold to third parties in each reporting period. The average realized price per unit sold does not have any standardized meaning prescribed by IFRS, is unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or a substitute for measures of performance prepared in accordance with IFRS.

For sales of copper, zinc, gold and silver we may enter into non-hedge derivatives ("QP hedges") which are intended to manage the provisional pricing risk arising from quotational period terms in concentrate sales agreements. The gains and losses on QP hedges are included in the calculation of realized prices. We expect that gains and losses on QP hedges will offset provisional pricing adjustments on concentrate sales contracts.

Our realized prices for the first quarter of 2023 and 2022, respectively, are summarized below:

			Realized prices1 for the
		LME QTD 20232	Three months ended
			Mar. 31, 2023	Mar. 31, 2022
Prices
Copper	$/lb	4.05	3.98	4.53
Zinc3	$/lb	1.42	1.39	1.76
Gold4	$/oz		1,881	1,741
Silver4	$/oz		22.14	21.56

¹ Realized prices exclude refining and treatment charges and are on the sale of finished metal or metal in concentrate. Realized prices include the effect of provisional pricing adjustments on prior period sales.

² London Metal Exchange average for copper and zinc prices.

³ Includes sales of zinc concentrate and sales of zinc metal for the three months ended March 31, 2022. Zinc realized prices include premiums paid by customers for delivery of refined zinc metal, but exclude unrealized gains and losses related to non-hedge derivative contracts that are included in zinc revenues. Realized prices include the effect of provisional pricing adjustments on zinc concentrate.

⁴ Sales of gold and silver from Constancia mine are subject to our precious metals stream agreement with Wheaton, pursuant to which we recognize deferred revenue for precious metals deliveries and also receive cash payments. Stream sales are included within realized prices and their respective deferred revenue and cash payment rates can be found on page 25 of this MD&A.

Average LME copper prices during the first quarter of 2023 increased by 12% compared to the fourth quarter of 2022. The first quarter realized copper price was 2% below the LME quarterly average price as the timing of Peru sales were significantly weighted toward the end of the first quarter due to road blockades early in the quarter.

During the quarter, we successfully extended our existing quotational period hedging program to approximately 8,000 tonnes of contained copper in the previously unsold concentrate inventory in Peru to lock in prevailing copper prices.

23

The following tables provide a reconciliation of average realized price per unit sold, by metal, to revenues as shown in the consolidated financial statements.

Three months ended March 31, 2023
(in $ millions) 1	Copper		Zinc		Gold	Silver	Molybdenum	Other	Total
Revenue from contracts 2	164.2		19.8		74.9	6.3	19.0	0.2	284.4
Amortization of deferred revenue	-		-		5.4	5.6	-	-	11.0
Pricing and volume adjustments 3	(1.5	)	(2.5	)	13.2	0.1	4.1	-	13.4
By-product credits 4	162.7		17.3		93.5	12.0	23.1	0.2	308.8
Revenue, excluding mark-to-market on non-QP hedges	162.7		17.3		93.5	12.0	23.1	0.2	308.8
Payable metal in concentrate and doré sold 6	18,541		5,628		49,720	541,884	254	-	-
Realized price 7	8,775		3,074		1,881	22.14	-	-	-
Realized price 8	3.98		1.39		-	-	-	-	-
Three months ended March 31, 2022
(in $ millions) 1	Copper		Zinc		Gold	Silver	Molybdenum	Other	Total
Revenue from contracts 2	209.0		66.4		67.6	6.6	9.2	2.5	361.3
Amortization of deferred revenue	-		-		13.2	11.8	-	-	25.0
Pricing and volume adjustments 3	(3.2	)	0.7		3.4	0.2	0.1	-	1.2
By-product credits 4	205.8		67.1		84.2	18.6	9.3	2.5	387.5
Derivative mark-to-market 5	-		(0.1	)	-	-	-	-	(0.1	)
Revenue, excluding mark-to-market on non-QP hedges	205.8		67.0		84.2	18.6	9.3	2.5	387.4
Payable metal in concentrate sold 6	20,609		17,306		48,343	864,591	213	-	-
Realized price 7	9,985		3,875		1,741	21.56	-	-	-
Realized price 8	4.53		1.76		-	-	-	-	-

¹ Average realized price per unit sold may not calculate based on amounts presented in this table due to rounding.

² As per financial statements.

³ Pricing and volume adjustments represents mark-to-market adjustments on provisionally priced sales, realized and unrealized changes to fair value for non-hedge derivative contracts and adjustments to originally invoiced weights and assays.

⁴ By-product credits subtotal is used in the calculated of cash cost per pound of copper and ounce of gold produced, net of by-product credits. Cash cost per pound of copper and 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 and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

⁵ Derivative mark-to-market excludes mark-to-market on QP hedges.

⁶ Copper, zinc and molybdenum shown in metric tonnes and gold and silver shown in ounces.

⁷ Realized price for copper and zinc in $/metric tonne and realized price for gold and silver in $/oz.

⁸ Realized price for copper and zinc in $/lb.

The price, quantity and mix of metals sold, affect our revenue, operating cash flow and profit. Revenue from metals sales can vary from quarter to quarter due to production levels, shipping volumes and transfer of risk and title to customers.

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Stream Sales

The following table shows stream sales included within realized prices and their respective deferred revenue and cash payment rates:

		Three months ended
		Mar. 31, 2023
		Peru 1
Gold	oz	6,579
Silver	oz	365,644
Gold deferred revenue drawdown rate1,2	$/oz	820
Gold cash rate3	$/oz	416
Total gold stream realized price	$/oz	1,236
Silver deferred revenue drawdown rate1,2	$/oz	15.26
Silver cash rate3	$/oz	6.14
Total silver stream realized price	$/oz	21.40

		Three months ended
		Mar. 31, 2022
		Manitoba	Peru
Gold	oz	4,388	10,494
Silver	oz	86,912	643,636
Gold deferred revenue drawdown rate1,2	$/oz	1,252	734
Gold cash rate3	$/oz	429	412
Total gold stream realized price	$/oz	1,681	1,146
Silver deferred revenue drawdown rate1,2	$/oz	24.73	14.95
Silver cash rate3	$/oz	6.33	6.08
Total silver stream realized price	$/oz	31.06	21.03

¹ Subsequent to the variable consideration adjustment recorded on January 1, 2023, the deferred revenue amortization is recorded in Peru at $820/oz gold and $15.26/oz silver (March 31, 2022 - $734/oz gold and $14.95/oz silver).

² Deferred revenue drawdown rates for gold and silver do not include variable consideration adjustments.

³ The gold and silver cash rate for Manitoba increased by 1% from $400/oz and $5.90/oz effective August 1, 2015. Subsequently every year, on August 1, the cash rate will increase by 1% compounded. The weighted average cash rate is disclosed. The gold and silver cash rate for Peru increased by 1% from $400/oz and $5.90/oz effective August 4, 2019. Subsequently every year, on August 4, the cash rate will increase by 1% compounded. The weighted average cash rate is disclosed.

25

Cost of Sales

Our detailed cost of sales is summarized as follows:

(in $ thousands)	Three months ended
	Mar. 31, 2023		Mar. 31, 2022
Peru
Mining	26,786		28,402
Milling	46,191		47,655
Changes in product inventory	(11,135	)	(4,772	)
Depreciation and amortization	41,960		48,362
G&A	16,452		16,198
Inventory adjustments	-		(461	)
Freight, royalties and other charges	13,092		10,331
Total Peru cost of sales	133,346		145,715
Manitoba
Mining	37,752		59,433
Milling	14,848		21,509
Zinc plant	-		18,376
Changes in product inventory	1,726		(16,148	)
Depreciation and amortization	25,462		32,729
G&A	10,182		23,243
Freight, royalties and other charges	5,390		8,494
Total Manitoba cost of sales	95,360		147,636
Cost of sales	228,706		293,351

Total cost of sales for the first quarter of 2023 was $228.7 million, reflecting a decrease of $64.7 million from the first quarter of 2022. Peru cost of sales decreased by $12.4 million in the first quarter of 2023, compared to the same period of 2022 mainly due to changes in product inventory caused by a buildup of copper concentrate during the quarter as nation-wide road blockades delayed shipments until March 2022. Peru cost of sales were also lower in the first quarter of 2023, versus the comparative 2022 period, due to lower mining and depreciation as the mine plan for Peru was temporarily adjusted to prioritize the processing of lower grade stockpiles and shorter haulage distance ore to ensure steady operation of the plant.

Manitoba cost of sales decreased by $52.3 million in the first quarter of 2023, compared to the same period of 2022 as a result of the closure of the zinc plant in June 2022, decreases in the mining, milling and depreciation costs due to the planned closure of 777 and the Flin Flon mill, a reduction of general and administrative and freight costs and favourable movements in the foreign exchange rate as Manitoba's costs are primarily denominated in Canadian dollars. These decreases were partially offset by relatively stable fluctuations in product inventory compared to a prior year buildup of copper concentrate product inventory.

For details on unit operating costs, refer to the respective tables in the "Operations Review" section of this MD&A.

For the first quarter of 2023, other significant variances in expenses from operations, compared to the same period in 2022, include the following:

-Re-evaluation adjustment - environmental provision decreased by $71.6 million due to the relative revaluation of the environmental reclamation provision on our Manitoba non-producing sites from changes in long term risk-free discount rates and inflation rates.

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Given the long term nature of the reclamation cash flows, the related environmental reclamation provision is highly sensitive to changes in inflation rates and long-term risk-free discount rates and, as such, we may continue to experience significant quarterly closure cost provision revaluations.

-Exploration expenses decreased by $10.4 million as Copper World drilling costs expensed in the comparative 2022 period are now being capitalized.

-Other expenses decreased by $4.1 million compared to the same period in 2022, primarily related to decreases in evaluation costs as costs related to Copper World have been capitalized since May 2022, partially offset by increases in care & maintenance costs for the Flin Flon concentrator and tailings impoundment area.

Net finance expense

(in $ thousands)	Three months ended
	Mar. 31, 2023	Mar. 31, 2022
Finance costs - accrued or payable:
Interest expense on long-term debt	17,007	16,898
Withholding taxes	1,405	1,563
Loss on disposal of investments	652	-
Other accrued/payable costs1	202	2,223
Total finance costs - accrued or payable	19,266	20,684
Finance costs - non-cash:
Accretion on streaming agreements2	6,501	4,836
Change in fair value of financial assets and liabilities at fair value through profit or loss	5,597	7,216
Other non-cash costs3	3,612	4,008
Total finance costs - non-cash	15,710	16,060
Net finance expense	34,976	36,744

¹ Includes interest income and other finance expense.

² Includes variable consideration adjustment (prior periods).

³ Includes accretion on community agreements, accretion on Wheaton refund liability, unwinding of discount on provisions, and net foreign exchange losses (gains).

Net finance expense during the first quarter ended March 31, 2023, decreased by $1.8 million compared to the first quarter of 2022 primarily due to a $1.4 million increase in interest income and a $1.6 million decrease in the change in relative revaluation of the gold prepayment liability net of revaluation losses on our equity investments held at period end. This decline was offset by a $1.7 million increase due to a variable consideration adjustment net of accretion on streaming arrangements.

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Tax Expense

For the three months ended March 31, 2023, tax expense decreased by $13.1 million, compared to the same period in 2022. The following table provides further details:

	Three months ended
	Mar. 31, 2023		Mar. 31, 2022
(in $ thousands)
Deferred tax (recovery) expense - income tax1	(3,150	)	9,601
Deferred tax (recovery) expense - mining tax1	(1,999	)	4,990
Total deferred tax (recovery) expense	(5,149	)	14,591
Current tax expense - income tax	10,765		5,477
Current tax expense - mining tax	6,357		4,978
Total current tax expense	17,122		10,455
Tax expense	11,973		25,046

¹ Deferred tax expense (recovery) represents our draw down/increase of non-cash deferred income and mining tax assets/liabilities.

Income Tax Expense/Recovery

Applying the estimated Canadian statutory income tax rate of 26.3% to our profit before taxes of $17.4 million for the year-to-date of 2023 would have resulted in a tax expense of approximately $4.6 million; however, we recorded an income tax expense of $7.6 million. The significant items causing our effective income tax rate to be different than the 26.3% estimated Canadian statutory income tax rate include:

-Deductible temporary differences with respect to Peru, relating to the decommissioning and restoration liabilities, were recognized as we have determined that it is probable that we will realize the recovery of these deferred tax assets based on the timing of the reversals of the deductible temporary differences and the future projected taxable profit of the Peruvian operations. This resulted in a combined deferred tax recovery of $2.6 million.

-Foreign exchange on the translation of deferred tax balances to group currency resulted in a deferred tax recovery of $0.6 million.

-The tax expense with respect to our foreign operations are recorded using an income tax rate other than the Canadian statutory income tax rate of 26.3%, resulting in a tax expense of $7.6 million.

Mining Tax Expense

Applying the estimated Manitoba mining tax rate of 10.0% to our profit before taxes of $17.4 million for the first quarter of 2023 would have resulted in a tax expense of approximately $1.7 million; however, we recorded a mining tax expense of $4.4 million. Effective mining tax rates can vary significantly based on the composition of our earnings and the expected amount of mining taxable profits. Corporate costs and other costs not related to mining operations are not deductible in computing mining profits. A brief description of how mining taxes are calculated in our various business units is discussed below.

Manitoba

The Province of Manitoba imposes mining tax on profit related to the sale of mineral products mined in the Province of Manitoba (mining taxable profit) at the following rates:

-10% of total mining taxable profit if mining profit is C$50 million or less;

-Between mining profit of C$50 and $C55 million, mining tax is equal to a minimum of C$5 million plus mining profit less C$50 million multiplied by 65%;

-15% of total mining taxable profit if mining profits are between C$55 million and C$100 million;

-Between mining profit of C$100 million and C$105 million, mining tax is equal to a minimum of C$15 million plus mining profit less C$100 million multiplied by 57%; and

-17% of total mining taxable profit if mining profits exceed C$105 million.

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We estimate that the tax rate that will be applicable when temporary differences reverse will be approximately 10.0%.

Peru

The Peruvian government imposes two parallel mining tax regimes, the Special Mining Tax and the Modified Royalty, on companies' operating mining income on a sliding scale, with progressive rates ranging from 2.0% to 8.4% and 1.0% to 12.0%, respectively. Based on financial forecasts, we have recorded a deferred tax liability as at March 31, 2023, at the tax rate we expect to apply when temporary differences reverse.

LIQUIDITY AND CAPITAL RESOURCES

As at March 31, 2023, our liquidity includes $255.6 million in cash as well as undrawn total availability of $355.4 million under our revolving credit facilities.

Senior Unsecured Notes

We have $600.0 million aggregate principal amount of 4.5% senior notes due April 2026 and $600.0 million aggregate principal amount of 6.125% senior notes due April 2029.

Senior Secured Revolving Credit Facilities

We have two senior secured revolving credit facilities with total commitments of $450 million ("the Credit Facilities") for our Canadian and Peruvian businesses and substantially similar terms and conditions. In March 2023, we drew $40.0 million from the Canadian senior secured revolving credit facility to improve working capital flexibility during the period of high concentrate inventory levels in Peru. At March 31, 2023, we were in compliance with our covenants under the Credit Facilities and had also drawn $25.6 million in letters of credit under the Credit Facilities. In total, $65.6 million was owing under the Credit Facilities as at March 31, 2023.

C$130 Million Bilateral Letter of Credit Facility

On August 22, 2022, we closed a C$130.0 million bilateral letter of credit facility ("LC Facility") with a major Canadian financial institution. The LC Facility enables the Company to issue up to C$130.0 million of letters of credit to beneficiaries on an unsecured basis at attractive rates, with a further C$30.0 million sub-limit for financial letters of credit. This new facility was permitted under the existing terms the Credit Facilities and has no financial covenants. As at March 31, 2023, the Manitoba business unit had drawn $56.8 million in letters of credit under the LC Facility.

Surety Bonds

As at March 31, 2023, the Arizona business unit had $12.8 million in surety bonds issued to support future reclamation and closure obligations. The Peru business unit also had $118.0 million in letters of credit issued with various Peruvian financial institutions to support future reclamation and other operating matters. No cash collateral is required to be posted under these letters of credit or surety bonds.

Gold Prepay

During the fourth quarter of 2020, we entered into a gold forward sale and prepay transaction which generated $115.0 million in cash proceeds to pre-fund the expected capital requirements for the New Britannia gold mill refurbishment project. The transaction valued the future gold ounce delivery obligation at 79,954 gold ounces to be delivered in fixed monthly deliveries of 3,331 gold ounces over a 24-month period from January 2022 to December 2023.

During the first quarter of 2023, we amended our gold forward sale and prepay agreements to defer eight months of deliveries starting with February 2023. Deliveries of the outstanding 37,500 ounces of gold will resume in fixed monthly amounts starting in October 2023 until August 2024. The fair value of the financial liability at March 31, 2023 was $70.9 million.

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Financial Condition

Financial Condition as at March 31, 2023 compared to December 31, 2022

Cash increased by $29.9 million during the quarter to $255.6 million as at March 31, 2023. This increase was mainly due to cash inflows from operating activities of $71.3 million and a $40.0 million draw on our Credit Facilities. Offsetting these cash inflows was investing and other financing cash outflows of $66.9 million for capital investments and community agreements primarily at our Peru and Manitoba operations, partial repayment of our gold prepayment liability of $6.4 million, lease payments of $5.4 million, other finance payments of $3.1 million as well as dividends of $1.9 million. We hold the majority of our cash in low-risk, liquid investments with major Canadian and Peruvian financial institutions.

Working capital increased by $24.5 million to $101.0 million from December 31, 2022 to March 31, 2023, primarily due to a $39.0 million decrease in current gold prepayment liability due to an eight month deferral of gold delivery obligations, an increase in inventories of $32.4 million mainly due to a buildup of Peru finished goods inventory, an increase in cash of $29.9 million and a decrease in trade payables of $10.4 million. Offsetting these items was a $40.0 million draw on our Credit Facilities, a $19.6 million increase in other liabilities mainly due to advances from customers, a $16.0 million increase in current deferred revenue liabilities and a decrease in trade receivables of $10.4 million mainly related to timing of sales receivables.

Cash Flows

The following table summarizes our cash flows for the three months ended March 31, 2023 and March 31, 2022:

(in $ thousands)	Three months ended
	Mar. 31, 2023		Mar. 31, 2022
Operating cash flow before change in non-cash working capital	85,608		77,615
Change in non-cash working capital	(14,329	)	(14,308	)
Cash generated from operating activities	71,279		63,307
Cash used in investing activities	(65,076	)	(55,732	)
Cash generated from (used in) financing activities	23,245		(64,719	)
Effect of movement in exchange rates on cash	450		(486	)
Increase (Decrease) in cash	29,898		(57,630	)

Cash Flow from Operating Activities

Cash generated from operating activities was $71.3 million during the first quarter of 2023, an increase of $8.0 million compared with the same period in 2022. Operating cash flow before change in non-cash working capital was $85.6 million during the first quarter of 2023, reflecting a increase of $8.0 million compared to the first quarter of 2022. The increase in operating cash flows before changes in working capital is due to a reduction in exploration and evaluation spending and taxes paid.

Cash Flow from Investing and Financing Activities

During the first quarter of 2023, we spent $41.8 million in investing and financing activities, primarily driven by $65.0 million in capital expenditures, $1.9 million in community agreements, $6.4 million in partial settlement of our gold prepayment liability, $5.4 million in capitalized lease payments, $3.1 million in other finance payments as well as dividends of $1.9 million. These cash outflows were partially offset by a $40.0 million draw on our Credit Facilities.

30

Capital Expenditures

The following summarizes accrued and cash additions to capital assets for the periods indicated:

	Three months ended				Guidance
	Mar. 31, 2023		Mar. 31, 2022		Annual
(in $ millions)					20232
Manitoba sustaining capital expenditures	11.6		24.0		75.0
Peru sustaining capital expenditures1	29.1		18.9		160.0
Total sustaining capital expenditures	40.7		42.9		235.0
Arizona capitalized costs	6.1		3.1		30.0
Peru growth capitalized expenditures	1.8		0.1		10.0
Manitoba growth capitalized expenditures	8.4		4.9		15.0
Other capitalized costs2	2.8		9.4		-
Capitalized exploration	0.6		3.1		10.0
Total other capitalized expenditures	19.7		20.6
Total capital additions	60.4		63.5
Reconciliation to cash capital additions:
Right-of-use asset additions	(0.6	)	(7.8	)
Community agreement additions	-		(0.8	)
Change in capital accruals and other	5.1		(2.8	)
Acquisition of property, plant & equipment - cash	64.9		52.1

¹ Peru sustaining capital expenditures include capitalized stripping costs.

² Other capitalized costs primarily include right-of-use lease additions, which are excluded from guidance in 2023.

For the first quarter of 2023, total capital additions declined by 5%, compared to the first quarter in 2022 as a result of lower sustaining capital expenditures in Manitoba, partially offset by higher sustaining capital expenditures in Peru and higher growth spending at in Manitoba and Arizona.

Sustaining capital expenditures in Manitoba for the three months ended March 31, 2022 were $11.6 million, representing a decline of $12.4 million compared to the same period in 2022 as the prior period reflected higher planned capital development at Lalor. Sustaining capital expenditures in Peru for the three months ended March 31, 2023 were $29.1 million, representing an increase of $10.2 million compared to the same period in 2022. The increase mainly relates to increased capitalized stripping at Pampacancha.

Growth capital spending in Manitoba for the three months ended March 31, 2023 was $8.4 million and mainly relate to the Stall recovery improvement project. The Stall flow sheet enhancements are expected to be completed in the second quarter leading to increased metal recoveries and copper and zinc concentrate grades in the second half of 2023. Growth capital expenditures in Peru for the three months ended March 31, 2023 were $1.8 million, representing an increase of $1.7 million compared to the same period in 2022 and mainly relate to planned spending on copper and molybdenum recovery improvement projects that have commenced in the first quarter of 2023.

Arizona's capital expenditures for the three months ended March 31, 2023 were $6.1 million and mainly relate to pre-feasibility study costs and Copper World carrying costs.

Other capitalized costs for the three months ended March 31, 2023 were $2.8 million.

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Capital Commitments

As at March 31, 2023, we had outstanding capital commitments in Canada of approximately $4.4 million, of which all can be terminated, approximately $28.3 million in Peru primarily related to exploration option agreements, all of which can be terminated, and approximately $42.7 million in Arizona, primarily related to our Copper World project, of which approximately $7.2 million can be terminated.

Contractual Obligations

The following table summarizes our significant contractual obligations as at March 31, 2023:

		Less than 12 months	13 - 36 months	37 - 60 months	More than 60 months
Payment Schedule (in $ millions)	Total
Long-term debt obligations1	1,582.4	107.6	132.7	687.0	655.1
Gold prepayment obligation2	70.9	38.6	32.3	-	-
Lease obligations	120.1	41.7	46.5	13.6	18.3
Purchase obligation - capital commitments	75.5	23.4	24.5	27.6	-
Purchase obligation - other commitments3	1,495.2	377.6	462.8	187.0	467.8
Pension and other employee future benefits obligations2	95.1	7.6	11.2	28.2	48.1
Community agreement obligations4, 5	66.8	9.1	7.5	7.8	42.4
Decommissioning and restoration obligations5	413.0	4.4	9.9	7.1	391.6
Total	3,919.0	610.0	727.4	958.3	1,623.3

¹ Long-term debt obligations include scheduled interest payments, as well as principal repayments.

² Discounted.

³ Primarily made up of long-term agreements with operational suppliers, obligations for power purchase, concentrate handling, fleet and port services, as well as deferred consideration arising from the acquisition of Rosemont's minority interest.

⁴ Represents community agreement obligations and various finalized land user agreements, including Pampacancha.

⁵ Undiscounted before inflation.

32

In addition to the contractual obligations included in the above payment schedule, we also have the following commitments which impact our financial position:

-A profit-sharing plan with most Manitoba employees;

-A profit-sharing plan with all Peru employees;

-Wheaton precious metals stream agreements for 777 and the Constancia mines; and,

-Government royalty payments related to the Constancia mines.

Outstanding Share Data

As of May 5, 2023, the final trading day prior to the date of this MD&A, there were 262,053,610 common shares of Hudbay issued and outstanding. In addition, there were 2,259,886 stock options outstanding.

FINANCIAL RISK MANAGEMENT

Business Integration Risk with Copper Mountain

Hudbay's expectations with respect to the financial benefits of the Proposed Transaction are based on its internal projections as well as those prepared by the Copper Mountain management team, with respect to Copper Mountain's business and operations and its anticipated financial performance (together, the "Projections"). All such Projections were based on assumptions and information available at the time the Projections were prepared. The Projections were prepared by the Hudbay's and Copper Mountain's respectively management teams for internal use and to, among other things, assist Hudbay in evaluating the Proposed Transaction. Hudbay does not know whether the assumptions made will be realized and they are subject to known and unknown risks and uncertainties, many of which are beyond Hudbay's control. As a result of these contingencies, there can be no assurance that Hudbay's expectations with respect to the financial benefits of the Proposed Transaction will be realized or that actual results will not be significantly higher or lower than expected. Further, the Projections were not prepared with a view toward public disclosure or toward compliance with IFRS, published guidelines of applicable securities regulatory authorities or the guidelines established by the Chartered Professional Accountants for preparation and presentation of prospective financial information. No independent accountants, have compiled, examined, or performed any procedures with respect to the Projections, nor have they expressed any opinion or any other form of assurance on such information or its achievability.

In addition, the ability to realize the benefits of the Proposed Transaction will depend in part on, among other things, successfully consolidating functions and integrating operations, procedures and personnel in a timely and efficient manner, as well as on Hudbay's ability to realize the anticipated growth opportunities and synergies from integrating Copper Mountain's business following completion of the Proposed Transaction. This integration will require the dedication of management effort, time and resources which may divert management's focus and resources from other strategic opportunities available to Hudbay following completion of the Proposed Transaction, and from operational matters during this process. There can be no assurance that management will be able to integrate the operations of Copper Mountain's business successfully and realize the anticipated financial benefits. Many operational and strategic decisions and certain staffing decisions with respect to integration have not yet been made. These decisions and the integration of the two companies may present challenges to management, including the integration of systems and personnel of the two companies which may be geographically separated, unanticipated liabilities, and unanticipated costs. It is possible that the integration process could result in the loss of key employees, the disruption of the respective ongoing businesses or inconsistencies in standards, controls, procedures and policies that adversely affect the ability of management to maintain relationships with key stakeholders or to achieve the anticipated benefits of the Proposed Transaction. Any inability of management to successfully integrate the operations could have a material adverse effect on the business, financial condition and results of operations of Hudbay.

Implication of Copper World Pre-feasibility Study on Phase I of Copper World

As with any change in mine plan, or new technical report or pre-feasibility assessment, there is a risk that the timing and extent of operating and capital expenditures may result in an indicator of impairment or impairment reversal. In the case of the forthcoming Copper World pre-feasibility study, management will assess impairment considerations with respect to changes in timing and expenditures to support the development of Copper World.

33

TREND ANALYSIS AND QUARTERLY REVIEW

A detailed quarterly and annual summary of financial and operating performance can be found in the "Summary of Results" section at the end of this MD&A. The following table sets forth selected consolidated financial information for each of our eight most recently completed quarters:

(in $ millions, except per share amounts, production on a copper equivalent basis and average realized copper price)
	2023	2022						2021
	Q1	Q4		Q3		Q2	Q1	Q4		Q3		Q2
Production on a copper equivalent basis (tonnes)	38,614	45,454		42,099		46,332	45,085	50,685		42,243		39,289
Average realized copper price ($/lb)	3.98	3.61		3.47		4.28	4.53	4.34		4.26		4.40
Revenue	295.2	321.2		346.2		415.5	378.6	425.2		359.0		404.2
Gross profit (loss)3	66.5	69.7		32.4		89.5	85.3	81.7		(85.4	)	82.2
Profit (loss) before tax	17.4	(14.3	)	(0.3	)	21.5	88.9	(0.2	)	(147.8	)	14.8
Profit (loss)	5.5	(17.4	)	(8.1	)	32.1	63.8	(10.5	)	(170.4	)	(3.4	)
Adjusted net earnings (loss)1	0.1	2.6		(12.4	)	30.5	5.2	32.7		0.9		5.4
Earnings (loss) per share:
Basic and diluted	0.02	(0.07	)	(0.03	)	0.12	0.24	(0.04	)	(0.65	)	(0.01	)
Adjusted net earnings (loss)1 per share	0.00	0.01		(0.05	)	0.12	0.02	0.13		0.00		0.02
Operating cash flow2	85.6	109.1		81.6		123.9	77.6	156.9		103.5		132.8
Adjusted EBITDA1	101.9	124.7		99.3		141.4	110.2	180.8		119.2		143.2

¹ Adjusted net earnings (loss), adjusted net earnings (loss) per share, and adjusted EBITDA are non-IFRS financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

² Operating cash flow before changes in non-cash working capital.

³ Gross profit (loss) includes $147.3 million and $46.2 million, respectively, of impairment losses related to environmental reclamation provision for the now closed Flin Flon operation for the three months ended September 30, 2021 and December 31, 2021.

Commodity prices have rebounded in the first quarter of 2023, but these increases have also contributed to inflationary pressures on consumables, labour and supplies. Average gold prices during the quarter reached levels not seen since 2020, which positively impacted first quarter gross profit. Political unrest in Peru resulted in road blockades causing logistics and supply chain disruptions until mid-February 2023, affecting overall revenues and profit.

The easing of domestic COVID measures by China during the fourth quarter of 2022 resulted in a rebound of most industrial commodity prices. However, late in the quarter, Peru experienced heightened tensions and social unrest following a change in the country's political leadership. Inflationary pressures on fuel, consumables and energy costs have persisted globally, negatively impacting our production costs and margins.

Fourth quarter revenues were negatively impacted by lower production due to planned maintenance programs at Lalor and Constancia, the planned closure of 777 earlier in the year, short-term changes in the mine plan in Peru and a build up of product inventory in Peru due to the aforementioned social unrest. The revenue impact of lower throughput was partially offset by higher commodity prices. Additionally, the fourth quarter results were impacted by a non-cash loss of $13.5 million related to the quarterly revaluation of our Flin Flon environmental reclamation provision due to changes in real, long-term discount rates.

Commodity prices declined during the third quarter of 2022 while growing inflationary pressures contributed to higher mine operating costs resulting in declines in our key financial metrics during the quarter. Third quarter results were also impacted by lower production due to the closure of 777 in the second quarter of 2022 and the commencement of care and maintenance activities, which will continue for the next several years. Relatively small movements in real, long-term discount rates will continue to impact the revaluation of our environmental reclamation provisions for closed sites in Manitoba and these movements will be reflected through the income statement.

34

The second quarter results for 2022 were impacted by a revaluation gain of $60.7 million pertaining mostly to the environmental reclamation provision on our Flin Flon site due to increases in long-term risk-free interest rates. A pre-tax impairment loss of $95.0 million was recorded following the release of the Copper World Preliminary Economic Assessment in June 2022 as certain assets associated with the previous, stand-alone development plan for the Rosemont deposit are no longer expected to be recoverable.

Results in the first quarter of 2022 benefited from a trend of higher realized base metal prices, but were also impacted by rising operating costs caused by inflation. While we achieved increased gold production from the higher grade Pampacancha deposit and the higher recovery New Britannia gold mill, we experienced increased levels of COVID-19 related absenteeism in the workforce, impacting production, and also experienced limited availability of rail cars leading to reduced sales and an inventory build-up. The first quarter results were also impacted by a revaluation gain of $78.2 million pertaining mostly to the environmental reclamation provision on our Flin Flon site and $1.7 million for our non-producing sites in Manitoba caused by an increase in long-term risk-free interest rates.

Results for the fourth quarter of 2021 benefited from higher realized metal prices. This strength in commodity prices combined with higher gold production following the commencement of commercial production at New Britannia and improving copper recoveries led to record revenue of $425.2 million during the quarter. Adjusted EBITDA and operating cash flow both reached record highs. Notwithstanding these records, continued inflationary pressures along with lower copper grades caused operating costs to climb and put pressure on gross margins, compared to earlier quarters. A revaluation of our environmental reclamation provision for the Flin Flon closure plan resulted in a $46.2 million non-cash charge, which negatively impacted net income for the quarter.

During the third quarter of 2021, increasing base metal prices contributed to strong revenues and operating cash flow. Mining at Pampacancha continued to ramp-up, contributing significantly to gold production during the quarter. As a result of the planned closure of Flin Flon operations in mid-2022 and an updated Flin Flon closure plan, non-cash charges totaling $156.3 million were incurred, which negatively impacted gross profit for the quarter. In Peru, ongoing COVID-19 costs, along with lower copper grades, put pressure on operating costs.

Financial results in the second quarter of 2021 benefited from initial production at the Pampacancha pit but were negatively impacted by higher operating costs in Peru and lower Manitoba metal production caused by COVID-19 related impacts as well as lower copper and zinc grades and lower precious metal recoveries.

35

NON-IFRS FINANCIAL PERFORMANCE MEASURES

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. We provide adjusted EBITDA to help users analyze our results and to provide additional information about our ongoing cash generating potential in order to assess our 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 our financial position. Cash cost, sustaining and all-in sustaining cash cost per pound of copper produced are shown because we believe they help investors and management assess the performance of our 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 we believe they help investors and management assess the performance of our Manitoba operations. Combined unit cost is shown because we believe it helps investors and management assess our cost structure and margins that are not impacted by variability in by-product commodity prices.

36

Adjusted Net Earnings (Loss)

Adjusted net earnings (loss) represents net earnings (loss) excluding certain impacts, net of taxes, such as mark-to-market adjustments, impairment charges and reversal of impairment charges, write-down of assets, revaluation of the environmental reclamation provision for closed sites, and foreign exchange (gain) loss. These measures are not necessarily indicative of net earnings (loss) or cash flows as determined under IFRS.

The following table provides a reconciliation of earnings (loss) per the consolidated interim income statements, to adjusted net earnings (loss) for the three months ended March 31, 2023 and 2022.

	Three months ended
(in $ millions)	Mar. 31, 2023		Mar. 31, 2022
Profit for the period	5.4		63.8
Tax expense	12.0		25.0
Profit before tax	17.4		88.8
Adjusting items:
Mark-to-market adjustments1	6.8		10.5
Foreign exchange loss	0.3		1.5
Variable consideration adjustment - stream revenue and accretion	(5.0	)	(5.8	)
Peru inventory reversal	-		(0.5	)
Re-evaluation adjustment - environmental provision2	(8.2	)	(79.9	)
Evaluation expenses	-		7.0
Restructuring charges - Manitoba3	-		0.7
Loss on disposal of investments	0.7		-
Loss on disposal of plant and equipment and non-current assets - Manitoba	0.1		-
Adjusted earnings before income taxes	12.1		22.3
Tax expense	(12.0	)	(25.0	)
Tax impact of adjusting items	-		7.9
Adjusted net earnings	0.1		5.2
Adjusted net earnings ($/share)	0.00		0.02
Basic weighted average number of common shares outstanding (millions)	262.0		261.7

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 (recoveries) expenses.

² Changes from movements to environmental reclamation provisions are primarily related to the Flin Flon operations, which were fully depreciated as of June 30, 2022, as well as other Manitoba non-operating sites.

³ Includes closure costs for Flin Flon operations in 2022.

After adjusting reported net earnings for those items not considered representative of the Company's core business or indicative of future operations, the Company had an adjusted net earnings in the first quarter of 2023 of $0.1 million or $0.00 earnings per share.

37

Adjusted EBITDA

Adjusted EBITDA is profit or loss before net finance expense/income, tax expense/recoveries, depreciation and amortization of property, plant and equipment and deferred revenue, as well as certain other adjustments. We calculate adjusted EBITDA by excluding certain adjustments included within our adjusted net earnings measure which we believe reflects the underlying performance of our core operating activities. The measure also removes the impact of non-cash items and financing costs that are not associated with measuring the underlying performance of our operations. However, our adjusted EBITDA is not the measure defined as EBITDA under our senior notes or revolving credit facilities and may not be comparable with performance measures with the same name reported by other companies. Adjusted EBITDA should not be considered as a substitute for profit or loss or as a better measure of liquidity than operating cash flow, which are calculated in accordance with IFRS. We provide adjusted EBITDA to help users analyze our results and to provide additional information about our ongoing cash generating potential in order to assess our capacity to service and repay debt, carry out investments and cover working capital needs.

The following table presents the reconciliation of earnings (loss) per the consolidated interim income statements, to adjusted EBITDA for the three months ended March 31, 2023 and 2022:

	Three months ended
(in $ millions)	Mar. 31, 2023		Mar. 31, 2022
Profit for the period	5.4		63.8
Add back:
Tax expense	12.0		25.0
Net finance expense	35.0		36.7
Other expense	5.0		9.0
Depreciation and amortization	67.4		81.1
Amortization of deferred revenue and variable consideration adjustment	(15.9	)	(28.2	)
	108.9		187.4
Adjusting items (pre-tax):
Re-evaluation adjustment - environmental provision	(8.2	)	(79.9	)
Peru inventory write down reversal	-		(0.5	)
Share-based compensation expense1	1.2		3.2
Adjusted EBITDA	101.9		110.2

¹ Share-based compensation expense reflected in cost of sales and selling and administrative expenses.

Net Debt

The following table presents our calculation of net debt as at March 31, 2023 and December 31, 2022:

(in $ thousands)	Mar. 31, 2023		Dec. 31, 2022
Total long-term debt	1,225,023		1,184,162
Cash	(255,563	)	(225,665	)
Net debt	969,460		958,497

38

Cash Cost, Sustaining and All-in Sustaining Cash Cost (Copper Basis)

Cash cost per pound of copper produced ("cash cost") is a non-IFRS measure that management uses as a key performance indicator to assess the performance of our operations. Our calculation designates copper as our primary metal of production as it has been the largest component of revenues. The calculation is presented in four manners:

-Cash cost, before by-product credits - This measure is gross of by-product revenues and is a function of the efforts and costs incurred to mine and process all ore mined. However, the measure divides this aggregate cost over only pounds of copper produced, our primary metal of production. This measure is generally less volatile from period to period, as it is not affected by changes in the price received for by-product metals. It is, however, significantly affected by the relative mix of copper concentrate and finished zinc production, where the sale of the zinc will occur later, and an increase in production of zinc metal will tend to result in an increase in cash cost under this measure.

-Cash cost, net of by-product credits - In order to calculate the net cost to produce and sell copper, the net of by-product credits measure subtracts the revenues realized from the sale of the metals other than copper. The by-product revenues from zinc, gold, and silver are significant and are integral to the economics of our operations. The economics that support our decision to produce and sell copper would be different if we did not receive revenues from the other significant metals being extracted and processed. This measure provides management and investors with an indication of the minimum copper price consistent with positive operating margins, assuming realized by-product metal prices are consistent with those prevailing during the reporting period. It also serves as an important operating statistic that management and investors utilize to measure our operating performance versus that of our competitors. However, it is important to understand that if by-product metal prices decline alongside copper prices, the cash cost net of by-product credits would increase, requiring a higher copper price than that reported to maintain positive cash flows and operating margins.

-Sustaining cash cost, net of by-product credits - This measure is an extension of cash cost that includes cash sustaining capital expenditures, including payments on capitalized leases, capitalized sustaining exploration, net smelter returns royalties, payments on certain long-term community agreements, as well as accretion and amortization for expected decommissioning activities for producing assets. It does not include corporate selling and administrative expenses. It provides a more fulsome measurement of the cost of sustaining production than cash cost, which is focused on operating costs only.

-All-in sustaining cash cost, net of by-product credits - This measure is an extension of sustaining cash cost that includes corporate G&A, regional costs, accretion and amortization for community agreements relating to current operations, and accretion for expected decommissioning activities for non-producing sites. Due to the inclusion of corporate selling and administrative expenses, all-in sustaining cash cost is presented on a consolidated basis only.

39

The tables below present a detailed build-up of cash cost and sustaining cash cost, net of by-product credits, by business unit in addition to consolidated all-in sustaining cash cost, net of by-product credits, and reconciliations between cash cost, net of by-product credits, to the most comparable IFRS measures of cost of sales for the three months ended March 31, 2023 and 2022. Cash cost, net of by-product credits may not calculate exactly based on amounts presented in the tables below due to rounding.

Consolidated	Three months ended
Net pounds of copper produced1
(in thousands)	Mar. 31, 2023	Mar. 31, 2022
Peru	45,233	42,254
Manitoba	4,508	12,205
Net pounds of copper produced	49,741	54,459

¹ Contained copper in concentrate.

Consolidated	Three months ended
	Mar. 31, 2023				Mar. 31, 2022
Cash cost per pound of copper produced	$000s		$/lb		$000s		$/lb
Cash cost, before by-product credits	188,403		3.79		242,058		4.45
By-product credits	(146,111	)	(2.94	)	(181,673	)	(3.34	)
Cash cost, net of by-product credits	42,292		0.85		60,385		1.11

Consolidated	Three months ended
	Mar. 31, 2023		Mar. 31, 2022
Cash cost per pound of copper produced	$000s	$/lb	$000s	$/lb
Mining	64,538	1.30	87,835	1.61
Milling	61,039	1.23	69,164	1.27
Refining (zinc)	-	-	18,376	0.34
G&A	26,555	0.53	38,993	0.72
Onsite costs	152,132	3.06	214,368	3.94
Treatment & refining	18,495	0.37	12,083	0.22
Freight & other	17,776	0.36	15,607	0.29
Cash cost, before by-product credits	188,403	3.79	242,058	4.45

40

Consolidated	Three months ended
	Mar. 31, 2023			Mar. 31, 2022
Supplementary cash cost information	$000s		$/lb1	$000s		$/lb1
By-product credits2:
Zinc	17,374		0.35	67,129		1.23
Gold3	93,479		1.88	84,174		1.55
Silver3	11,998		0.24	18,639		0.34
Molybdenum & other	23,260		0.47	11,731		0.22
Total by-product credits	146,111		2.94	181,673		3.34
Reconciliation to IFRS:
Cash cost, net of by-product credits	42,292			60,385
By-product credits	146,111			181,673
Treatment and refining charges	(18,495	)		(12,083	)
Inventory adjustments	-			(461	)
Share-based compensation expense	79			448
Change in product inventory	(9,409	)		(20,920	)
Royalties	706			3,218
Depreciation and amortization4	67,422			81,091
Cost of sales5	228,706			293,351

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. For more information, please see the realized price reconciliation table on page 24 of this MD&A for these figures.

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 ended March 31, 2023 the variable consideration adjustments amounted income of $4,885 (three months ended March 31, 2022 - income of $3,245).

⁴ Depreciation is based on concentrate sold.

⁵ As per IFRS financial statements.

41

Peru	Three months ended
(in thousands)	Mar. 31, 2023	Mar. 31, 2022
Net pounds of copper produced1	45,233	42,254

¹ Contained copper in concentrate.

Peru	Three months ended
	Mar. 31, 2023				Mar. 31, 2022
Cash cost per pound of copper produced	$000s		$/lb		$000s		$/lb
Mining	26,786		0.59		28,402		0.67
Milling	46,191		1.03		47,655		1.13
G&A	16,466		0.36		16,100		0.38
Onsite costs	89,443		1.98		92,157		2.18
Treatment & refining	10,603		0.24		7,585		0.18
Freight & other	12,427		0.27		9,477		0.22
Cash cost, before by-product credits	112,473		2.49		109,219		2.58
By-product credits	(50,899	)	(1.13	)	(43,997	)	(1.04	)
Cash cost, net of by-product credits	61,574		1.36		65,222		1.54

Peru	Three months ended
	Mar. 31, 2023			Mar. 31, 2022
Supplementary cash cost information	$000s		$/lb 1	$000s		$/lb 1
By-product credits2:
Gold3	19,301		0.43	21,712		0.51
Silver3	8,577		0.19	12,991		0.31
Molybdenum	23,021		0.51	9,294		0.22
Total by-product credits	50,899		1.13	43,997		1.04
Reconciliation to IFRS:
Cash cost, net of by-product credits	61,574			65,222
By-product credits	50,899			43,997
Treatment and refining charges	(10,603	)		(7,585	)
Inventory adjustments	-			(461	)
Share-based compensation expenses	(14	)		98
Change in product inventory	(11,135	)		(4,772	)
Royalties	665			854
Depreciation and amortization4	41,960			48,362
Cost of sales5	133,346			145,715

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. For more information, please see the realized price reconciliation table on page 24 of this MD&A.

³ Gold and 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.

42

Consolidated	Three months ended
	Mar. 31, 2023		Mar. 31, 2022
All-in sustaining cash cost per pound of copper produced	$000s	$/lb	$000s	$/lb
Cash cost, net of by-product credits	42,292	0.85	60,385	1.11
Cash sustaining capital expenditures	47,869	0.96	60,963	1.12
Royalties	706	0.02	3,218	0.06
Sustaining cash cost, net of by-product credits	90,867	1.83	124,566	2.29
Corporate selling and administrative expenses & regional costs	10,215	0.20	13,060	0.24
Accretion and amortization of decommissioning and community agreements1	1,958	0.04	721	0.01
All-in sustaining cash cost, net of by-product credits	103,040	2.07	138,347	2.54
Reconciliation to property, plant and equipment additions:
Property, plant and equipment additions	33,554		39,399
Capitalized stripping net additions	26,984		24,146
Total accrued capital additions	60,538		63,545
Less other non-sustaining capital costs2	19,850		20,604
Total sustaining capital costs	40,688		42,941
Capitalized lease cash payments - operating sites	4,702		9,259
Community agreement cash payments	1,189		3,772
Accretion and amortization of decommissioning and restoration obligations 3	1,290		4,991
Cash sustaining capital expenditures	47,869		60,963

¹ Includes accretion of decommissioning liability relating to non-producing sites, and accretion and amortization of community agreements capitalized to Other assets.

² Other non-sustaining capital costs include Arizona capitalized costs, capitalized interest, capitalized exploration, right-of-use lease asset additions and growth capital expenditures.

³ Includes amortization of decommissioning and restoration PP&E assets and accretion of decommissioning and restoration liabilities related to producing sites. 

Peru	Three months ended
	Mar. 31, 2023		Mar. 31, 2022
Sustaining cash cost per pound of copper produced	$000s	$/lb	$000s	$/lb
Cash cost, net of by-product credits	61,574	1.36	65,222	1.54
Cash sustaining capital expenditures	33,564	0.74	30,039	0.71
Royalties	665	0.02	854	0.02
Sustaining cash cost per pound of copper produced	95,803	2.12	96,115	2.27

43

Gold Cash Cost and Gold Sustaining Cash Cost

Cash cost per ounce of gold produced ("gold cash cost") is a non-IFRS measure that management uses as a key performance indicator to assess the performance of our Manitoba operations. This alternative cash cost calculation designates gold as the primary metal of production as it represents a substantial component of revenues for our Manitoba business unit and should therefore be less volatile over time than Manitoba cash cost per pound of copper. The calculation is presented in three manners:

-Gold cash cost, before by-product credits - This measure is gross of by-product revenues and is a function of the efforts and costs incurred to mine and process all ore mined. However, the measure divides this aggregate cost over only ounces of gold produced, the assumed primary metal of production. This measure is generally less volatile from period to period, as it is not affected by changes in the price received for by-product metals.

-Gold cash cost, net of by-product credits - In order to calculate the net cost to produce and sell gold, the net of by-product credits measure subtracts the revenues realized from the sale of the metals other than gold. The by-product revenues from copper, zinc, and silver are significant and are integral to the economics of our Manitoba operation. The economics that support our decision to produce and sell gold would be different if we did not receive revenues from the other significant metals being extracted and processed. This measure provides management and investors with an indication of the minimum gold price consistent with positive operating margins, assuming realized by-product metal prices are consistent with those prevailing during the reporting period. It also serves as an important operating statistic that management and investors utilize to measure our operating performance at our Manitoba operation versus that of our competitors. However, it is important to understand that if by-product metal prices decline alongside gold prices, the gold cash cost net of by-product credits would increase, requiring a higher gold price than that reported to maintain positive cash flows and operating margins.

-Gold sustaining cash cost, net of by-product credits - This measure is an extension of gold cash cost that includes cash sustaining capital expenditures, capitalized exploration, net smelter returns royalties, as well as accretion and amortization for expected decommissioning activities for producing assets. It does not include corporate selling and administrative expenses. It provides a more fulsome measurement of the cost of sustaining production than gold cash cost, which is focused on operating costs only.

The tables below present a detailed build-up of gold cash cost and gold sustaining cash cost, net of by-product credits, for the Manitoba business unit, and reconciliations between gold cash cost, net of by-product credits, to the most comparable IFRS measures of cost of sales for the three months ended March 31, 2023 and 2022. Gold cash cost, net of by-product credits, may not calculate exactly based on amounts presented in the tables below due to rounding.

Manitoba	Three months ended
(in thousands)	Mar. 31, 2023	Mar. 31, 2022
Net ounces of gold produced1	36,034	43,167

¹ Contained gold in concentrate and doré.

44

Manitoba	Three months ended				Three months ended
	Mar. 31, 2023				Mar. 31, 2022
Cash cost per ounce of gold produced	$000s		$/oz1		$000s		$/oz1
Mining	37,752		1,048		59,433		1,377
Milling	14,848		412		21,509		498
Refining (zinc)	-		-		18,376		426
G&A	10,089		280		22,893		530
Onsite costs	62,689		1,740		122,211		2,831
Treatment & refining	7,892		219		4,498		104
Freight & other	5,349		148		6,130		142
Cash cost, before by-product credits	75,930		2,107		132,839		3,077
By-product credits	(42,131	)	(1,169	)	(114,874	)	(2,661	)
Gold cash cost, net of by-product credits	33,799		938		17,965		416

Manitoba	Three months ended
	Mar. 31, 2023			Mar. 31, 2022
Supplementary cash cost information	$000s		$/oz 1	$000s		$/oz 1
By-product credits2:
Copper	21,097		585	39,660		919
Zinc	17,374		482	67,129		1,555
Silver3	3,421		95	5,648		131
Other	239		7	2,437		56
Total by-product credits	42,131		1,169	114,874		2,661
Reconciliation to IFRS:
Cash cost, net of by-product credits	33,799			17,965
By-product credits	42,131			114,874
Treatment and refining charges	(7,892	)		(4,498	)
Share-based compensation expenses	93			350
Change in product inventory	1,726			(16,148	)
Royalties	41			2,364
Depreciation and amortization4	25,462			32,729
Cost of sales5	95,360			147,636

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 on page 24 of this MD&A.

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.

Manitoba	Three months ended
	Mar. 31, 2023		Mar. 31, 2022
Sustaining cash cost per ounce of gold produced	$000s	$/oz	$000s	$/oz
Gold cash cost, net of by-product credits	33,799	938	17,965	416
Cash sustaining capital expenditures	14,304	397	30,924	716
Royalties	41	1	2,364	55
Sustaining cash cost per ounce of gold produced	48,144	1,336	51,253	1,187

45

Combined Unit Cost

Combined unit cost ("unit cost") and zinc plant unit cost is a non-IFRS measure that management uses as a key performance indicator to assess the performance of our mining and milling operations. Combined unit cost is calculated by dividing the cost of sales by mill throughput. This measure is utilized by management and investors to assess our cost structure and margins and compare it to similar information provided by other companies in our industry. Unlike cash cost, this measure is not impacted by variability in by-product commodity prices since there are no by-product deductions; costs associated with profit-sharing and similar costs are excluded because of their correlation to external metal prices. In addition, the unit costs are reported in the functional currency of the operation which minimizes the impact of foreign currency fluctuations. In all, the unit cost measures provide an alternative perspective on operating cost performance with minimal impact from external market prices.

The tables below present a detailed combined unit cost for the Peru and Manitoba business unit, and reconciliations between these measures to the most comparable IFRS measures of cost of sales for the three months ended March 31, 2023 and 2022.

Peru	Three months ended
(in thousands except unit cost per tonne)	Mar. 31, 2023		Mar. 31, 2022
Combined unit cost per tonne processed
Mining	26,786		28,402
Milling	46,191		47,655
G&A1	16,466		16,100
Other G&A2	(1,539	)	(571	)
	87,904		91,586
Less: COVID-19 related costs	-		2,321
Unit cost	87,904		89,265
Tonnes ore milled	7,664		7,214
Combined unit cost per tonne	11.47		12.37
Reconciliation to IFRS:
Unit cost	87,904		89,265
Freight & other	12,427		9,477
COVID-19 related costs	-		2,321
Other G&A	1,539		571
Share-based compensation expenses	(14	)	98
Inventory adjustments	-		(461	)
Change in product inventory	(11,135	)	(4,772	)
Royalties	665		854
Depreciation and amortization	41,960		48,362
Cost of sales3	133,346		145,715

¹ G&A as per cash cost reconciliation above.

² Other G&A primarily includes profit sharing costs.
³ As per IFRS financial statements.

46

Manitoba	Three months ended
(in thousands except tonnes ore milled and unit cost per tonne)	Mar. 31, 2023		Mar. 31, 2022
Combined unit cost per tonne processed
Mining	37,752		59,433
Milling	14,848		21,509
G&A1	10,089		22,893
Less: G&A allocated to zinc metal production and other areas	-		(13,407	)
Less: Other G&A related to profit sharing costs	(1,139	)	-
Unit cost	61,550		90,428
USD/CAD implicit exchange rate	1.35		1.27
Unit cost - C$	83,193		114,504
Tonnes ore milled	385,661		651,333
Combined unit cost per tonne - C$	216		176
Reconciliation to IFRS:
Unit cost	61,550		90,428
Freight & other	5,349		6,130
Refined (zinc)	-		18,376
G&A allocated to zinc metal production	-		13,407
Other G&A related to profit sharing	1,139		-
Share-based compensation expenses	93		350
Change in product inventory	1,726		(16,148	)
Royalties	41		2,364
Depreciation and amortization	25,462		32,729
Cost of sales2	95,360		147,636

¹ G&A as per cash cost reconciliation above.

² As per IFRS financial statements.

47

Manitoba	Three months ended
(in thousands except zinc plant unit cost per pound)	March 31, 2022
Zinc plant unit cost 1
Zinc plant costs	18,376
G&A 2	22,893
Less: G&A allocated to other areas	(19,511	)
Zinc plant unit cost	21,758
USD/CAD implicit exchange rate	1.27
Zinc plant unit cost - C$	27,551
Refined metal produced (in pounds)	44,231
Zinc plant unit cost per pound - C$	0.62
Reconciliation to IFRS:
Zinc plant unit cost	21,758
Freight & other	6,130
Mining	59,433
Milling	21,509
G&A allocated to other areas	19,511
Share-based payment	350
Change in product inventory	(16,148	)
Royalties	2,364
Depreciation and amortization	32,729
Cost of sales3	147,636

¹ The zinc plant ceased operations in June 2022. Prior year comparative information is disclosed above.

² G&A as per cash cost reconciliation above.

³ As per IFRS financial statements.

48

ACCOUNTING CHANGES AND CRITICAL ESTIMATES

New standards and interpretations adopted and not yet adopted

For information on new standards and interpretations adopted and not yet adopted, refer to note 4 of our March 31, 2023 consolidated interim financial statements.

Estimates and judgements

The preparation of the consolidated financial statements in accordance with IFRS requires us to make judgements, estimates and assumptions that affect the application of accounting policies, reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates.

We review these estimates and underlying assumptions on an ongoing basis based on our experience and other factors, including expectations of future events that we believe to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Certain accounting estimates and judgements have been identified as being "critical" to the presentation of our financial condition and results of operations because they require us to make subjective and/or complex judgments about matters that are inherently uncertain; or there is a reasonable likelihood that materially different amounts could be reported under different conditions or using different assumptions and estimates.

For more information on judgements and estimates, refer to note 2 of our March 31, 2023 consolidated interim financial statements.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate internal control over financial reporting ("ICFR"). ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.

We did not make any changes to ICFR during the three months ended March 31, 2023 that materially affected or are reasonably likely to materially affect our ICFR.

NOTES TO READER

Forward-Looking Information

This MD&A contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this MD&A, 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 MD&A is qualified by this cautionary note.

Forward-looking information includes, but is not limited to, statements with respect to the consummation and timing of the Transaction; approval by Copper Mountain's and Hudbay's shareholders; the satisfaction of the conditions precedent to the consummation of the Transaction; the strengths, characteristics and potential operating efficiencies and corporate synergies resulting from the Transaction; growth potential and expectations regarding the timing, receipt and anticipated effects of court, regulatory and other consents and approvals; the impact of the Transaction on shareholders of Hudbay and Copper Mountain and other stakeholders and other anticipated benefits of the Transaction, statements regarding our production, cost and capital and exploration expenditure guidance, expectations regarding reductions in discretionary spending, capital expenditures and net debt, expectations regarding the impact of inflationary pressures on our cost of operations, financial condition and prospects, the expected results and benefits of the new 10-year agreement for 100% renewable energy supply to Constancia, expectations regarding our cash balance and liquidity for 2023, expectations regarding the Copper World project, including with respect to our plans for a pre-feasibility study, the estimated timelines and pre-requisites for sanctioning the project  and the pursuit of a potential minority joint venture partner, expectations regarding the permitting requirements for the Copper World project and permitting related litigation, our ability to increase the mining rate at Lalor, the anticipated timing for completing the Stall recovery improvement program and anticipated benefits therefrom, expectations regarding the ability to conduct exploration work on the Maria Reyna and Caballito properties and to advance related drill plans, the timing of mining higher-grade ore in the Pampacancha pit and our  expectations resulting therefrom, expectations regarding the potential impact of short-term mine plan changes implemented at Constancia, expectations regarding the ability for the company to reduce greenhouse gas emissions, the company's evaluation of opportunities to reprocess tailings, expectations regarding the prospective nature of the Maria Reyna and Caballito properties, the anticipated impact of brownfield growth projects on our performance, anticipated expansion opportunities in Snow Lake, anticipated drill programs and exploration activities, anticipated mine plans, anticipated metals prices and the anticipated sensitivity of our financial performance to metals prices, events that may affect our 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 us 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.

49

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

-the ability to satisfy the conditions to closing the Transaction, including the receipt of shareholder, regulatory and court approvals;

-that no third party would make a superior proposal to the Transaction;

-that the Arrangement Agreement would not be terminated in certain circumstances;

-the ability to achieve production and cost guidance;

-the ability to achieve discretionary spending reductions without impacting operations;

-no significant interruptions to our operations due to social or political unrest in the regions Hudbay operates, including the navigation of the complex environment in Peru;

-no interruptions to our plans for advancing the Copper World project;

-the ability to ramp up exploration in respect of the Maria Reyna and Caballito properties and to advance related drill plans;

-the ability to increase the mining rate at Lalor;

-the success of mining, processing, exploration and development activities;

-the scheduled maintenance and availability of our processing facilities;

-the accuracy of geological, mining and metallurgical estimates;

-anticipated metals prices and the costs of production;

-the supply and demand for metals we produce;

-the supply and availability of all forms of energy and fuels at reasonable prices;

-no significant unanticipated operational or technical difficulties;

-the execution of our business and growth strategies, including the success of our strategic investments and initiatives;

-the availability of additional financing, if needed;

-the ability to complete project targets on time and on budget and other events that may affect our ability to develop our projects;

-the timing and receipt of various regulatory and governmental approvals;

-the availability of personnel for our exploration, development and operational projects and ongoing employee relations;

-maintaining good relations with the labour unions that represent certain of our employees in Manitoba and Peru;

-maintaining good relations with the communities in which we operate, including the neighbouring Indigenous communities and local governments;

-no significant unanticipated challenges with stakeholders at our various projects;

50

-no significant unanticipated events or changes relating to regulatory, environmental, health and safety matters;

-no contests over title to our properties, including as a result of rights or claimed rights of Indigenous peoples or challenges to the validity of our unpatented mining claims;

-the timing and possible outcome of pending litigation and no significant unanticipated litigation;

-certain tax matters, including, but not limited to current tax laws and regulations, changes in taxation policies and the refund of certain value added taxes from the Canadian and Peruvian governments; and

-no significant and continuing adverse changes in general economic conditions or conditions in the financial markets (including commodity prices and foreign exchange rates).

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 related to failure to receive approval of the Transaction by Hudbay or Copper Mountain shareholders, the required court, regulatory and other consents and approvals to effect the Transaction, the potential of a third party making a superior proposal to the Transaction, the possibility that the Arrangement Agreement could be terminated under certain circumstances, political and social risks in the regions the company operates, including the uncertainty with respect to the political and social environment in Peru and its potential impact on our mining operations (as further described below), 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 our projects, risks related to the Copper World project, including in relation to permitting, litigation, project delivery and financing risks, risks related to the Lalor mine plan, including the ability to convert inferred mineral resource estimates to higher confidence categories, 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 our 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 our reserves, volatile financial markets and interest rates that may affect our 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, our ability to comply with our pension and other post-retirement obligations, our ability to abide by the covenants in our debt instruments and other material contracts, tax refunds, hedging transactions, as well as the risks discussed under the heading "Risk Factors" in our most recent Annual Information Form and under the heading "Financial Risk Management" in this MD&A .

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. We do not assume any obligation to update or revise any forward-looking information after the date of this MD&A 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 MD&A 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.

51

Qualified Person and NI 43-101

The technical and scientific information in this MD&A related to our material mineral projects has been approved by Olivier Tavchandjian, P. Geo, our Senior Vice President, Exploration and Technical Services. Mr. Tavchandjian is a qualified person pursuant to National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").

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 our material properties as filed by us on SEDAR at www.sedar.com.

52

SUMMARY OF RESULTS

The following unaudited tables set out a summary of quarterly and annual results for the Company.

			Q1 2023		2022 4		Q4 2022			Q3 2022			Q2 2022		Q1 2022		2021 4			Q4 2021			Q3 2021			Q2 2021			Q1 2021
Consolidated Financial Condition ($000s)
Cash		$	255,563	$	225,665	$	225,665		$	286,117		$	258,556	$	213,359	$	270,989		$	270,989		$	297,451		$	294,287		$	310,564
Total long-term debt			1,225,023		1,184,162		1,184,162			1,183,237			1,182,143		1,181,119		1,180,274			1,180,274			1,182,612			1,181,195			1,180,798
Net debt1			969,460		958,497		958,497			897,120			923,587		967,760		909,285			909,285			885,161			886,908			870,234
Consolidated Financial Performance ($000s except per share amounts)
Revenue		$	295,219	$	1,461,440	$	321,196		$	346,171		$	415,454	$	378,619	$	1,501,998		$	425,170		$	358,961		$	404,242		$	313,624
Cost of sales			228,706		1,184,552		251,520			313,741			325,940		293,351		1,370,979			343,426			444,379			322,060			261,112
Earnings (loss) before tax			17,430		95,815		(14,287	)		(263	)		21,504		88,861		(202,751	)		(149	)		(147,830	)		14,819			(69,592	)
Earnings (loss)			5,457		70,382		(17,441	)		(8,135	)		32,143		63,815		(244,358	)		(10,453	)		(170,411	)		(3,395	)		(60,102	)
Basic and diluted earnings (loss) per share		$	0.02	$	0.27	$	(0.07	)	$	(0.03	)	$	0.12	$	0.24	$	(0.93	)	$	(0.04	)	$	(0.65	)	$	(0.01	)	$	(0.23	)
Adjusted earnings (loss) per share 1		$	0.00	$	0.10	$	0.01		$	(0.05	)	$	0.12	$	0.02	$	0.09		$	0.13		$	0.00		$	0.02		$	(0.06	)
Operating cash flow before change in non-cash working capital			85,608		391,729		109,148			81,617			123,911		77,615		483,862			156,917			103,509			132,786			90,656
Adjusted EBITDA (in $ millions) 1			101.9		475.9		124.7			99.3			141.4		110.2		547.8			180.8			119.2			143.2			104.2
Consolidated Operational Performance
Contained metal in concentrate and doré produced 2
Copper	tonnes		22,562		104,173		29,305			24,498			25,668		24,702		99,470			28,198			23,245			23,474			24,553
Gold	ounces		47,240		219,700		53,920			53,179			58,645		53,956		193,783			64,159			54,276			39,848			35,500
Silver	ounces		702,809		3,161,294		795,015			717,069			864,853		784,357		3,045,481			899,713			763,177			685,916			696,673
Zinc	tonnes		9,846		55,381		6,326			9,750			17,053		22,252		93,529			23,207			20,844			21,538			27,940
Molybdenum	tonnes		289		1,377		344			437			390		207		1,146			275			282			295			294
Payable metal in concentrate and doré sold
Copper	tonnes		18,541		94,473		25,415			24,799			23,650		20,609		92,200			24,959			21,136			25,176			20,929
Gold	ounces		49,720		213,415		47,256			66,932			50,884		48,343		168,358			56,927			47,843			38,205			25,383
Silver	ounces		541,884		2,978,485		559,306			816,416			738,171		864,591		2,427,508			638,640			701,601			577,507			509,760
Zinc 3	tonnes		5,628		59,043		8,230			12,714			20,793		17,306		96,435			21,112			21,619			25,361			28,343
Molybdenum	tonnes		254		1,352		421			511			208		213		1,098			245			304			265			284
Cash cost 1	$/lb	$	0.85	$	0.86	$	1.08		$	0.58		$	0.65	$	1.11	$	0.74		$	0.51		$	0.62		$	0.84		$	1.04
Sustaining cash cost	$/lb	$	1.83	$	2.07	$	2.21		$	1.91		$	1.87	$	2.29	$	2.07		$	1.95		$	1.97		$	2.25		$	2.16
All-in sustaining cash cost 1	$/lb	$	2.07	$	2.26	$	2.41		$	2.16		$	1.93	$	2.54	$	2.30		$	2.20		$	2.18		$	2.48		$	2.37

¹Net debt, adjusted earnings (loss) 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, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A. The above table sets forth selected non-IFRS financial performance measures for each of our nine most recently completed quarters and three most recently completed years; detailed reconciliations for non-comparable prior periods can be found in our MD&A for these prior periods in the "Non-IFRS Financial Performance Measures" section of these documents.

² Metal reported in concentrate is prior to deductions associated with smelter contract terms.

³ Includes refined zinc metal sold.

⁴ Annual consolidated results may not calculate based on amounts presented in this table due to rounding.

53

			Q1 2023		2022 5		Q4 2022		Q3 2022		Q2 2022		Q1 2022		2021 5		Q4 2021		Q3 2021		Q2 2021		Q1 2021
Peru Operations
Constancia ore mined1	tonnes		3,403,181		25,840,435		5,614,918		6,300,252		7,017,114		6,908,151		29,714,327		7,742,469		6,208,019		8,016,373		7,747,466
Copper	%		0.34		0.35		0.40		0.36		0.33		0.32		0.31		0.33		0.30		0.30		0.30
Gold	g/tonne		0.04		0.04		0.04		0.05		0.04		0.04		0.04		0.04		0.04		0.04		0.04
Silver	g/tonne		2.52		3.40		3.48		3.38		3.53		3.22		2.88		2.81		2.76		3.02		2.90
Molybdenum	%		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01
Pampacancha ore mined1	tonnes		897,295		8,319,250		3,771,629		2,488,928		1,211,387		847,306		5,141,001		2,107,196		2,050,813		982,992		-
Copper	%		0.49		0.33		0.37		0.29		0.29		0.27		0.27		0.27		0.27		0.26		-
Gold	g/tonne		0.52		0.29		0.29		0.23		0.28		0.43		0.30		0.34		0.27		0.27		-
Silver	g/tonne		5.12		4.06		3.84		4.30		4.25		4.06		4.02		4.26		3.58		4.43		-
Molybdenum	%		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		-
Ore milled	tonnes		7,663,728		30,522,294		7,795,735		7,742,020		7,770,706		7,213,833		28,809,755		8,048,925		6,985,035		7,413,043		6,362,752
Copper	%		0.33		0.34		0.41		0.34		0.32		0.31		0.32		0.33		0.30		0.31		0.33
Gold	g/tonne		0.08		0.09		0.12		0.08		0.09		0.08		0.08		0.11		0.11		0.07		0.04
Silver	g/tonne		3.69		3.58		3.93		3.48		3.64		3.26		3.35		3.67		3.93		2.88		2.84
Molybdenum	%		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01		0.01
Copper recovery	%		81.7		85.0		85.1		84.5		85.0		85.3		84.6		86.0		84.9		83.3		84.1
Gold recovery	%		56.8		63.6		69.6		61.9		60.3		59.8		64.6		63.6		71.9		62.2		52.0
Silver recovery	%		60.7		65.7		66.5		65.2		64.2		66.9		63.7		60.8		59.1		68.2		69.9
Molybdenum recovery	%		34.8		34.8		37.7		41.0		38.8		21.1		31.5		26.7		33.5		33.3		33.4
Contained metal in concentrate
Copper	tonnes		20,517		89,395		27,047		22,302		20,880		19,166		77,813		22,856		18,072		19,058		17,827
Gold	ounces		11,206		58,229		20,860		12,722		13,858		10,789		50,306		17,917		17,531		10,220		4,638
Silver	ounces		552,167		2,309,352		655,257		564,299		584,228		505,568		1,972,949		578,140		521,036		468,057		405,714
Molybdenum	tonnes		289		1,377		344		437		390		207		1,146		275		282		295		294
Payable metal sold
Copper	tonnes		16,316		79,805		23,789		20,718		18,473		16,825		71,398		20,551		16,065		19,946		14,836
Gold	ounces		11,781		49,968		15,116		11,970		8,430		14,452		41,807		16,304		16,902		5,638		2,963
Silver	ounces		392,207		2,045,678		411,129		513,470		484,946		636,133		1,490,651		380,712		457,263		315,064		337,612
Molybdenum	tonnes		254		1,352		421		511		208		213		1,098		245		304		265		284
Peru combined unit operating cost 2,3,4	$/tonne	$	11.47	$	12.78	$	13.64	$	13.06	$	12.02	$	12.37	$	10.70	$	9.96	$	10.93	$	10.40	$	11.74
Peru cash cost3	$/lb	$	1.36	$	1.58	$	1.34	$	1.68	$	1.82	$	1.54	$	1.54	$	1.28	$	1.26	$	1.85	$	1.82
Peru sustaining cash cost3	$/lb	$	2.12	$	2.35	$	2.09	$	2.46	$	2.62	$	2.27	$	2.46	$	2.46	$	2.31	$	2.69	$	2.36

¹ Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not fully reconcile to ore milled.

² Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.

³ Combined unit costs, 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 and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A. The above table sets forth selected non-IFRS financial performance measures for each of our nine most recently completed quarters and three most recently completed years; detailed reconciliations for non-comparable prior periods can be found in our MD&A for these prior periods in the "Non-IFRS Financial Performance Measures" section of these documents.

⁴ 2022 and 2021 combined unit costs exclude COVID-19 related costs.

⁵ Annual consolidated results may not calculate based on amounts presented in this table due to rounding.

54

		Q1 2023	2022 1	Q4 2022	Q3 2022	Q2 2022	Q1 2022	2021 1	Q4 2021	Q3 2021	Q2 2021	Q1 2021
Manitoba Operations
Lalor ore mined	tonnes	373,599	1,516,203	369,453	347,345	412,653	386,752	1,593,141	422,208	392,380	356,951	421,602
Copper	%	0.57	0.73	0.73	0.71	0.70	0.80	0.71	0.78	0.86	0.64	0.57
Zinc	%	3.32	3.14	2.17	3.27	3.06	4.06	4.23	4.19	3.60	3.81	5.20
Gold	g/tonne	3.96	4.00	4.00	4.57	3.73	3.76	3.41	3.92	3.85	3.19	2.67
Silver	g/tonne	18.24	21.96	19.37	21.27	23.95	22.94	24.66	30.35	22.13	22.98	22.75
777 ore mined	tonnes	-	484,355	-	-	226,286	258,069	1,053,710	266,744	256,536	255,170	275,260
Copper	%	-	1.12	-	-	1.03	1.19	1.28	1.13	1.06	0.82	2.06
Zinc	%	-	3.83	-	-	3.51	4.12	3.91	4.16	3.88	3.57	4.00
Gold	g/tonne	-	1.66	-	-	1.62	1.69	2.03	1.80	1.96	1.97	2.39
Silver	g/tonne	-	20.85	-	-	20.63	21.05	25.25	25.02	22.99	23.35	29.32
Stall & New Britannia Concentrator Combined:
Ore milled	tonnes	385,661	1,510,907	345,492	362,108	406,006	397,301	1,506,756	419,727	408,201	317,484	361,344
Copper	%	0.60	0.75	0.73	0.69	0.73	0.82	0.72	0.75	0.82	0.68	0.60
Zinc	%	3.31	3.30	2.31	3.33	3.20	4.24	4.30	4.12	3.58	4.06	5.53
Gold	g/tonne	3.99	4.08	3.98	4.60	3.93	3.87	3.42	3.90	3.84	3.19	2.57
Silver	g/tonne	19.08	22.15	20.40	20.66	23.98	23.16	24.95	30.07	23.32	22.02	23.40
Copper recovery	%	88.8	88.6	89.2	88.3	89.5	87.5	86.8	88.7	84.3	88.8	85.7
Zinc recovery	%	84.4	79.0	79.4	80.9	75.5	85.7	88.9	87.4	88.2	88.1	91.1
Gold recovery	%	62.0	59.2	58.8	60.9	58.8	58.4	54.9	54.6	53.4	55.5	57.5
Silver recovery	%	58.8	58.1	56.1	57.6	58.1	60.0	54.4	53.9	52.7	55.1	56.2
Flin Flon Concentrator:
Ore milled	tonnes	-	497,344	-	-	243,312	254,032	1,133,516	262,565	258,062	329,503	283,386
Copper	%	-	1.11	-	-	1.02	1.20	1.23	1.12	1.06	0.89	1.88
Zinc	%	-	3.87	-	-	3.60	4.13	3.95	4.16	3.86	3.65	4.20
Gold	g/tonne	-	1.67	-	-	1.64	1.70	2.04	1.78	1.96	2.06	2.34
Silver	g/tonne	-	21.00	-	-	20.76	21.23	24.90	25.04	22.93	23.65	28.01
Copper recovery	%	-	86.7	-	-	85.5	87.6	87.7	86.7	85.2	84.8	91.3
Zinc recovery	%	-	83.0	-	-	82.9	83.2	83.0	83.1	82.2	84.8	81.8
Gold recovery	%	-	57.1	-	-	56.4	57.7	58.5	59.2	58.1	52.9	64.0
Silver recovery	%	-	51.8	-	-	51.0	52.5	45.1	45.6	42.4	37.5	54.1

¹ Annual consolidated results may not calculate based on amounts presented in this table due to rounding.

55

			Q1 2023		2022 4		Q4 2022		Q3 2022	Q2 2022		Q1 2022		2021 4		Q4 2021		Q3 2021		Q2 2021		Q1 2021
Manitoba Operations (continued)
Total Manitoba contained metal in concentrate produced
Copper	tonnes		2,045		14,778		2,258		2,196	4,788		5,536		21,657		5,342		5,173		4,416		6,726
Zinc	tonnes		9,846		55,381		6,326		9,750	17,053		22,252		93,529		23,207		20,844		21,538		27,940
Gold	ounces		30,647		132,764		25,961		32,570	37,346		36,887		134,475		37,644		36,341		29,628		30,862
Silver	ounces		139,064		799,108		127,099		138,615	264,651		268,743		1,066,003		315,054		242,131		217,859		290,959
Precious metal in doré produced
Gold	ounces		5,387		28,707		7,099		7,887	7,441		6,280		9,002		8,598		404		-		-
Silver	ounces		11,578		52,834		12,659		14,155	15,974		10,046		6,529		6,519		10		-		-
Total Manitoba payable metal sold in concentrate and doré
Copper	tonnes		2,225		14,668		1,626		4,081	5,177		3,784		20,802		4,408		5,071		5,230		6,093
Zinc1	tonnes		5,628		59,043		8,230		12,714	20,793		17,306		96,435		21,112		21,619		25,361		28,343
Gold	ounces		37,939		163,447		32,140		54,962	42,454		33,891		126,551		40,623		30,941		32,567		22,420
Silver	ounces		149,677		932,807		148,177		302,946	253,225		228,458		936,857		257,928		244,338		262,443		172,148
Manitoba combined unit operating cost 2,3	C$/tonne	$	216		195	$	241	$	235	168		176	$	154	$	168	$	147	$	148	$	151
Manitoba gold cash cost 3, 5	$/oz	$	938	$	297	$	922	$	216	(207	)	416	$	-	$	-	$	-	$	-	$	-
Manitoba sustaining gold cash cost 3,5	$/oz	$	1,336	$	1,091	$	1,795	$	1,045	519		1,187	$	-	$	-	$	-	$	-	$	-

¹ Includes refined zinc metal sold.

² Reflects combined mine, mill and G&A costs per tonne of milled ore.

³ Combined unit costs, cash cost, and sustaining cash cost per pound of copper produced, 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 and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A. The above table sets forth selected non-IFRS financial performance measures for each of our nine most recently completed quarters and three most recently completed years; detailed reconciliations for non-comparable prior periods can be found in our MD&A for these prior periods in the "Non-IFRS Financial Performance Measures" section of these documents.

⁴ Annual consolidated results may not calculate based on amounts presented in this table due to rounding.

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.

56

EX-99.4

FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE

I, Peter Kukielski, President and Chief Executive Officer of Hudbay Minerals Inc., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Hudbay Minerals Inc. (the "issuer") for the interim period ended March 31, 2023.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1Control framework: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

5.2N/A

5.3N/A

6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2023 and ended on March 31, 2023 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date:May 8, 2023

(signed) "Peter Kukielski"                      

Peter Kukielski

President and Chief Executive Officer

EX-99.5

FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE

I, Eugene Lei, Chief Financial Officer of Hudbay Minerals Inc., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Hudbay Minerals Inc. (the "issuer") for the interim period ended March 31, 2023.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1Control framework: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

5.2N/A

5.3N/A

6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2023 and ended on March 31, 2023 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date:May 8, 2023

(signed) "Eugene Lei"                              

Eugene Lei

Chief Financial Officer