Hudbay to Acquire Arizona Sonoran Creating the Third Largest Copper District in North America
The Transaction brings together two highly complementary copper growth assets in Arizona and strengthens Hudbay’s position as a premier Americas-focused copper company with a pipeline of long‑life, low‑cost assets located in tier-one jurisdictions. The acquisition is expected to enhance Hudbay’s long‑term copper production profile, expand its U.S. growth pipeline, and benefit from increasing demand for domestically produced critical minerals in the U.S.
Highlights of the Combination
- Establishes a major copper hub in southern Arizona with the addition of the Cactus project to Hudbay’s existing Arizona business, including the Copper World project
- Strategically positions Hudbay to become a leading supplier of domestic U.S. refined copper with Copper World and Cactus both expected to be significant producers of copper cathode
- Provides a clear pathway to scale Hudbay’s annual copper production from ~125,000 tonnes today to more than 250,000 tonnes by 2030 with Copper World and other near term optimization projects, and potential to grow to more than 350,000 tonnes with Cactus
- Significant operational efficiencies and regional synergies are expected with the staged development of Copper World and Cactus
- Accretive to Hudbay's shareholders on a net asset value per share basis and on a reserves and resources per share basis with the addition of a high-quality asset in a core jurisdiction, positioning Hudbay’s next phase of growth once Copper World is in production
- Compelling premium for Arizona Sonoran shareholders with continued participation in the long‑term value of the Cactus project through ownership in Hudbay and immediate exposure to Hudbay’s diversified operating platform, significant free cash flow generation, and industry-leading organic growth pipeline
Highlights of the Combination
- Establishes a major copper hub in southern Arizona with the addition of the Cactus project to Hudbay’s existing Arizona business, including the Copper World project
- Strategically positions Hudbay to become a leading supplier of domestic U.S. refined copper with Copper World and Cactus both expected to be significant producers of copper cathode
- Provides a clear pathway to scale Hudbay’s annual copper production from ~125,000 tonnes today to more than 250,000 tonnes by 2030 with Copper World and other near term optimization projects, and potential to grow to more than 350,000 tonnes with Cactus
- Significant operational efficiencies and regional synergies are expected with the staged development of Copper World and Cactus
- Accretive to Hudbay's shareholders on a net asset value per share basis and on a reserves and resources per share basis with the addition of a high-quality asset in a core jurisdiction, positioning Hudbay’s next phase of growth once Copper World is in production
- Compelling premium for Arizona Sonoran shareholders with continued participation in the long‑term value of the Cactus project through ownership in Hudbay and immediate exposure to Hudbay’s diversified operating platform, significant free cash flow generation, and industry-leading organic growth pipeline
The Cactus Mine Project
ASCU's re-development plan targeting 99,000 tons of LME Grade A copper cathode production over 22 years at the Cactus Project, is underpinned by a 5.3 billion pound copper mineral reserve, at a grade of 0.52% Copper. The compelling Pre-Feasibility Study (October 2025) outlines an after-tax NPV8 of US$2.3 billion, an IRR of 22.8% and payback period of 5.3 years with a copper price of $4.25/lb from two open pits. Geologically, the project is situated at the convergence of three major porphyry copper belts and benefits from excellent onsite and nearby access to local infrastructure (including water, labour, power, highways and rail networks).