This report is an updated version of the report published on 28 January 2026 at 11:07 AM EST.

Hudbay Minerals Inc. (NYSE: HBM) 

Hudbay Minerals Inc. is a copper-focused critical minerals mining company with three long-life operations and a world-class pipeline of copper growth projects in tier-one mining jurisdictions of Canada, Peru and the United States. 

Recommendation Rationale – SELL at USD 26.83

• Trading Near Resistance Level: HBM’s share price surpassed its R1 level recommended on 13 January 2026, the 14-day RSI is now around 86.00, trading in overbought territory. Therefore, share price can face resistance at the current levels.

• Revenue Contraction: Revenue declined to USD 346.8 million in Q3 FY25 from USD 485.8 million in Q3 FY24, indicating top-line pressure.
• Escalating Operating Costs: Selling and administrative expenses increased significantly to USD 31.4 million in Q3 FY25 from USD 12.1 million in Q3 FY24, highlighting cost inflation and deteriorating operating efficiency.
• Overvalued Multiples: On a forward 12-month – key valuation multiples (EV/EBITDA, Price/Earnings, and Price/Cash Flow) are higher than average of the Basic Materials’ sector. 
• Operational and Pricing Risk: Recurring production disruptions from natural events and maintenance issues, combined with volatility in copper and gold prices driven by macroeconomic and policy shifts, can create earnings unpredictability and sustained margin risk.

HBM’s Daily Price Chart

Daily Technical Chart, Data Source: REFINITV 

Valuation Methodology: Price/Earnings Approach (FY December'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering YOY growth in net profit in Q3 FY25, lower cost of sales in Q3 FY25 versus pcp, completion of the USD 600 million Copper World joint venture with Mitsubishi, higher silver and zinc production, and improved net income margin in Q3 FY25. For conducting the valuation, peers such as Metallus Inc (NYSE: MTUS), Nexa Resources SA (NYSE: NEXA), and Agnico Eagle Mines Ltd (NYSE: AEM) have been considered.

Given the stock has surpassed its R1 level, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of USD 26.83, as of 28 January 2026 at 7:15 am PST. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 28 January 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 5: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.