Copper: LatAm Copper: Supply disappoints in May

Research evidence excerpt

Copper: LatAm Copper: Supply disappoints in May

Valuation Method and Risk Statement

The Global Materials sector is subject to relatively high volatility and several risk factors. These

include but are not limited to commodity price volatility; regulatory changes; production

disruptions; labor issues; equipment delays; unfavorable weather and more. Our price targets

are based on EV/NTM EBITDA, P/E multiple or DCF methodologies or a combination thereof.

HBM: Our price target is derived from an EBITDA multiple. We point to investors the potential

risks inherent in Hudbay including, but not limited to, the volatile nature of commodities

prices which could potentially be significantly different from expectations. Furthermore, the

sector is also exposed to other risks including political, financial and operational risks which all

have the potential of significantly impacting company/industry performance. Hudbay has

additional company specific risks, including delivery upon various growth projects across its

global footprint. The investment case is also linked to Copper World which is a material

project with financing/delivery/other risks.

CS: Our price target for Capstone Copper is derived from an NPV estimate. We point to

investors the potential risks inherent in Capstone Copper including, but not limited to, the

volatile nature of commodities prices which could potentially be significantly different from

expectations. Furthermore, the sector is also exposed to other risks including political,

financial and operational risks which all have the potential of significantly impacting

company/industry performance. Capstone is ramping up volumes which means additional

project delivery risks associated with the investment case.

Copper 15 July 2026 ab 13