6-K

QuickLinks -- Click here to rapidly navigate through this document

SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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, 2005 Commission File Number: 333-124186-02

HUDBAY MINERALS INC.
(Name of Registrant)

201 Portage Avenue, Suite 1906
Winnipeg, Manitoba
Canada R3B 3L3
(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  o                   Form 40-F  o

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

Yes  o                   No  ý

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

SIGNATURES

        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.
Date: May 13, 2005	By:	/s/ Brian Donald Gordon Name: Brian Donald Gordon Title:    Vice President and General Counsel

EXHIBIT INDEX

Exhibit	Description of Exhibit
99.1	HudBay Minerals Inc. Consolidated Financial Statements for the Period Ended March 31, 2005
99.2	HudBay Minerals Inc. Interim Management Discussion and Analysis of Results of Operations and Financial Condition — Three Months Ended March 31, 2005
99.3	HudBay Minerals Announces First Quarter 2005 Results

QuickLinks

SIGNATURES
EXHIBIT INDEX

EX-99.1

Exhibit 99.1

HudBay Minerals Inc.
(FORMERLY ONTZINC CORPORATION)

Consolidated Financial Statements
For the Period Ended March 31, 2005
(expressed in Canadian dollars)

HudBay Minerals Inc.
Consolidated Balance Sheet
As at March 31, 2005 and December 31, 2004
(expressed in thousands of Canadian dollars)

	March 31, 2005 (unaudited)			December 31, 2004 (audited)
Assets
Current assets
Cash and cash equivalents (note 10a)	$	97,453		$	64,553
Accounts receivable		69,899			73,210
Inventories		89,989			100,282
Prepaid expenses and other assets		8,345			3,496
Current portion of fair value of derivatives		4,514			3,418
Future income taxes		12,900			12,900
		283,100			257,859
Investments		463			463
Property, plant and equipment		363,236			358,662
Deferred financing costs and intangible assets		9,392			10,152
Restricted cash		—			13,000
Environmental deposits		1,789			1,789
Fair value of derivatives		914			772
	$	658,894		$	642,697
Liabilities
Current liabilities
Accounts payable	$	51,022		$	64,491
Accrued liabilities		29,322			26,548
Interest payable on long-term debt		5,706			563
Current portion of obligations under capital leases		3,689			3,338
Current portion of long-term debt		2,000			2,000
Current portion of pension obligation		15,092			12,650
Current portion of other employee future benefits		2,056			2,012
Current portion of fair value of derivatives		53			178
		108,940			111,780
Obligations under capital leases		11,900			11,719
Debt obligations (note 10a)		225,093			223,529
Pension obligation		54,215			57,437
Other employee future benefits		58,676			57,929
Asset retirement obligation		27,813			27,120
Other non-current liabilities		1,635			417
		488,272			489,931
Shareholders' equity
Common shares (note 5a)		130,197			120,138
Warrants (note 5b)		34,449			35,850
Contributed surplus		3,299			3,288
Cumulative translation adjustments		(18	)		(24	)
Retained earnings (deficit)		2,695			(6,486	)
		170,622			152,766
	$	658,894		$	642,697

Commitments (note 8)

The Notes constitute an integral part of the consolidated financial statements.

2

Hudbay Minerals Inc.
Consolidated Statement of Operations and Retained Earnings (Deficit)
For the periods ended March 31, 2005 and 2004
(expressed in thousands of Canadian dollars except share and per share amounts)
(Unaudited)

			Three Months Ended March 31
			2005			2004 (Restated — note 3)
Sales			$	151,525		$	—
Expenses
Operating				117,713			1,061
General and administrative				3,641			471
Depreciation and amortization				12,724			37
Accretion				652			6
Exploration				569			234
Foreign exchange (gain) loss				(250	)		—
				135,049			1,809
Operating earnings (loss)				16,476			(1,809	)
Other income				470			7
Amortization of deferred financing costs				(341	)		—
Foreign exchange gain (loss)				(1,330	)		14
Gain on derivative instruments				2,364			—
Interest expense				(5,653	)		(273	)
Earnings (loss) before taxes				11,986			(2,061	)
Taxes (recovery)				2,805			(397	)
Earnings (loss) for the period				9,181			(1,664	)
Retained earnings (deficit) — beginning of period
As previously stated				(6,486	)		(19,052	)
Changes in accounting policies
	Asset retirement obligations			—			(43	)
	Exploration			—			(590	)
As restated				(6,486	)		(19,685	)
Retained earnings (deficit) — end of period			$	2,695		$	(21,349	)
Earnings (loss) per share
		Basic	$	.12		$	(.29	)
		Diluted	$	.12			Note 6	(d)
Weighted average number of commons shares outstanding
		Basic		78,547,993			5,709,101
		Diluted		79,202,545			Note 6	(d)

The Notes constitute an integral part of the consolidated financial statements.

3

Hudbay Minerals Inc.
Consolidated Statement of Cash Flows
For the periods ended March 31, 2005 and 2004
(expressed in thousands of Canadian dollars)
(Unaudited)

			Three Months Ended March 31
			2005			2004 (Restated — note 3)
Cash generated (utilized) by:
Operating activities
Earnings (loss) for the period			$	9,181		$	(1,664	)
	Items not affecting cash
		Depreciation and amortization		12,724			37
		Accretion of debt component of convertible debentures		—			177
		Accretion on asset retirement obligation		652			6
		Non-cash interest		234			—
		Future income taxes		—			(397	)
		Unrealized portion of change in fair value of derivative		(1,363	)		—
		Amortization of deferred financing charges		341			—
		Unrealized foreign exchange loss on debt notes		1,330			—
		Unrealized foreign exchange loss on cash held in foreign currency		(244	)		—
		Net change in other non-cash operating items		1,828			—
				24,683			(1,841	)
Net change in non-cash working capital items (note 10c)				3,203			(193	)
				27,886			(2,034	)
Investing activities
Increase in environmental deposits				—			(164	)
Decrease (increase) in restricted cash				13,000			—
Property, plant and equipment expenditures				(17,298	)		(2,138	)
				(4,298	)		(2,302	)
Financing activities
Financing and acquisition costs				(133	)		(48	)
Decrease in debenture subscription receivable				—			2,000
Issuance of common shares				—			600
Proceeds on exercise of stock options				—			64
Repayments of obligations under capital lease				532			—
Issuance of shares and warrants				8,669			5,270
				9,068			7,886
Foreign exchange loss on cash held in foreign currency				244			—
Change in cash and cash equivalents				32,900			3,550
Cash and cash equivalents — beginning of period				64,553			2,114
Cash and cash equivalents — end of period			$	97,453		$	5,664
Supplementary information
Shares issued in settlement of other indebtedness			$	—		$	40
Taxes paid				293			—
Interest paid				275			—

The Notes constitute an integral part of the consolidated financial statements.

4

HudBay Minerals Inc.
Notes to the Interim Consolidated Financial Statements
(expressed in thousands of Canadian dollars except as otherwise noted)
(Unaudited)

1      Nature of the Operations

HudBay Minerals Inc. (the "Company") changed its name from ONTZINC Corporation by way of Articles of Amendment dated December 21, 2004. The Company is incorporated under the Ontario Business Corporations Act. Prior to December 21, 2004, the Company was engaged in the business of evaluation, acquisition and exploration of mineral properties. Substantially all of the efforts of the Company were devoted to these business activities. Prior to that date, the Company had not earned significant revenue and was considered to be in the development stage.

On December 21, 2004, the Company completed a public offering of common shares and warrants raising gross proceeds of $143,813 and also completed an offering of U.S.$175,000 Senior Secured Notes. The Company then utilized the proceeds from these financings to complete the acquisition from Anglo American International, S.A. ("Anglo American") of all of the outstanding shares of 152640 Canada Inc., which held all of the outstanding shares of Hudson Bay Mining and Smelting Co., Ltd. ("HBMS"). As a result, the Company's primary business activity is now base metals production with facilities consisting of mines, mills and a metallurgical complex for the extraction of copper and zinc in the Provinces of Manitoba and Saskatchewan.

Also on December 21, 2004, the Company completed a 30 for 1 common share consolidation that has been retroactively reflected as if the common share consolidation had occurred on January 1, 2002. All references to common shares within these consolidated financial statements reflect the consolidation.

2      Basis of Presentation and Principles of Consolidation

The interim consolidated financial statements of HudBay Minerals Inc. (the "Company") have been prepared in accordance with Canadian generally accepted accounting principles ("Canadian GAAP") and followed the same accounting principles and methods of application as those disclosed in Note 1 to the Company's consolidated financial statements for the year ended December 31, 2004. These interim consolidated financial statements do not include all disclosures required by Canadian GAAP for annual financial statements and, accordingly, should be read in conjunction with the Company's consolidated financial statements included in its 2004 Annual Report.

These interim consolidated financial statements include the accounts of the Company, all of its subsidiaries and the proportionate share of the assets and liabilities of any joint ventures where the Company shares joint control. Inter-company accounts and transactions have been eliminated on consolidation.

4

3      Changes in Accounting Policies

(a)

Asset retirement obligations:

Effective January 1, 2004, the Company adopted the recommendations under Section 3110, Asset Retirement Obligations ("Section 3110"), of the CICA Handbook on a retroactive basis. Section 3110 applies to legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and/or normal operation of a long-lived asset.

These recommendations require that the fair value of a liability for an asset retirement obligation be recorded in the period in which it is incurred. When the liability is initially recorded, the cost is capitalized by increasing the carrying amount of the related long-lived asset. Upon settlement of the liability, a gain or loss is recorded. This differs from the prior practice that involved accruing for the estimated reclamation and closure liability through charges to the consolidated statements of operations over the life of the mine. The Company has recorded asset retirement obligations primarily associated with decommissioning and restoration costs. As required under the standard, the Company will make periodic assessments as to the reasonableness of its asset retirement obligation estimates and revise those estimates accordingly. The respective asset and liability balances will be adjusted, which will correspondingly increase or decrease the amounts expensed in future periods.

The long-term asset retirement obligation is based on environmental plans, in compliance with the current environmental and regulatory requirements. Accretion expense is charged to the operations based on application of an interest component to the existing liability.

The prior period financial statements have been restated retroactively for this change in accounting policy. The adoption of this standard had no impact on the opening balance sheet at January 1, 2002. The effect on the loss in 2003 was an increase of $34. The effect on the loss in 2002 was an increase of $10.

(b)

Exploration costs:

The Company changed its accounting policy for exploration expenditures effective January 1, 2004. The change in the accounting policy is to only capitalize those exploration costs when management's evaluation indicates that the property is capable of economical commercial production. This policy change has been applied retroactively with restatement of prior periods. This policy change had the following impact on the opening balance sheet at January 1, 2002: decreased property, plant and equipment by $59 and increased deficit by $59. The effect on the loss in 2003 was an increase of $277. The effect on the loss in 2002 was an increase of $254.

5

4      Acquisition of Hudson Bay Mining and Smelting Co., Ltd.

On December 21, 2004, the Company acquired all of the outstanding common shares of HBMS for total purchase consideration of $315,790, plus $4,324 of corporate transaction costs. The total purchase consideration of $315,790 was satisfied by cash of $302,790 and by the issuance to Anglo American of 5,777,777 common shares and 86,666,667 share purchase warrants, where every 30 share purchase warrants are exercisable for one common share at an exercise price of $3.15 per common share. The value of the common share consideration of $11,700 has been determined based on the average of the closing price of the Company's common shares for the two days before and after the date of announcement of the transaction on October 7, 2004. The value of the warrant consideration of $1,300 has been based on a similar method to the valuation of the warrants issued in the public offering. The acquisition has been accounted for by the purchase method.

The following table summarizes the preliminary allocation of the purchase consideration based on management's current best estimate of the fair value of the assets and liabilities acquired on the date of acquisition (December 21, 2004):

Current assets (including cash of $51,504)	$	229,601
Investments		463
Property, plant and equipment		349,358
Intangible assets		552
Current liabilities		(72,665	)
Debt obligations		(15,179	)
Pensions and post-retirement benefit obligations		(130,353	)
Asset retirement obligations		(26,213	)
Obligations under capital leases		(15,074	)
Other non-current liabilities		(376	)
	$	320,114

Management expects to obtain additional information in 2005, including independent valuations, that may require additional adjustments to amounts shown above for property, plant and equipment, intangible assets and asset retirement obligations, and these potential adjustments may be material.

6

5      Share Capital

(a)

Common shares

Authorized: Unlimited common shares

Issued:

	Common shares		Amount
Balance, December 31, 2003	5,661,592		$	21,379
Issued for debt	5,334			40
Issued on private placements, net	2,382,466			7,817
Issued pursuant to public offering	69,694,778			156,813
Cancellation of repurchased shares	(340,000	)		(336	)
Exercise of warrants	28,030			160
Exercise of options	19,334			64
Value attributed to warrants issued	—			(29,465	)
Tax effect of flow through shares	—			(397	)
Share issue costs	—			(13,958	)
Elimination of fractional shares	(906	)		—
Stated capital reduction	—			(21,979	)
Balance, December 31, 2004	77,450,628			120,138
Exercise of warrants	2,476,371			7,736
Issued on private placement of flow-through shares	806,452			2,500
Share issue costs	—			(177	)
Balance, March 31, 2005	80,733,451		$	130,197

On February 22, 2005, the Company completed a private placement of 806,452 flow-through common shares at a price of $3.10 per share for aggregate gross proceeds of approximately $2,500. Commission related to the offering was paid to the underwriters resulting in net proceeds of $2,323. The proceeds are being used to incur Canadian exploration expenses that will be renounced in favour of the holders for the 2005 taxation year.

Broker warrants issued in connection with the Company's offering of subscription receipts on December 21, 2004 were exercised during the quarter ended March 31, 2005 aggregating the following amounts: 70,950,693 warrants to purchase 2,365,022 common shares for proceeds of $6,119.

7

(b)

Warrants

Pursuant to the share consolidation effective December 21, 2004, 30 common share purchase warrants are required to purchase one common share.

	Number			Amount
Warrants outstanding, December 31, 2003		74,894,424		$	4,433
Issued on private placements		40,140,997			2,380
Issued pursuant to public offering	*	1,045,421,667			27,181
Issued to agents for public offering		115,050,600			2,078
Warrants repurchased		(5,100,000	)		(173	)
Exercised		(840,909	)		(43	)
Cancelled		(88,456	)		(6	)
Warrants outstanding, December 31, 2004		1,269,478,323			35,850
Exercised		(74,291,193	)		(1,391	)
Expired		(350,000	)		(10	)
Warrants outstanding, March 31, 2005		1,194,837,130		$	34,449

Warrants outstanding to acquire common shares of the Company at March 31, 2005 are as follows:

Warrants Outstanding		Exercise Price Per Warrant		Expiry Date
6,650,000		$	0.13	May 30, 2005
2,805,650			0.13	June 25, 2005
2,086,544			0.13	August 25, 2005
250,000			0.10	October 3, 2005
26,428,825			0.14	September 8-23, 2005
33,000,000			U.S. 0.12	October 9-21, 2005
768,400			U.S. 0.12	January 13, 2006
1,984,200			0.30	December 23-31, 2005
406,840			0.25	December 30, 2005
15,553,797			0.20	March 31, 2006
9,385,000			0.06	September 28, 2006
3,452,000			0.05	September 28, 2006
2,589,000			0.12	November 30, 2006
517,800			0.09	November 30, 2006
44,099,907			0.086	December 21, 2006
1,044,859,167	*		0.105	December 21, 2009
1,194,837,130			* Listed on The Toronto Stock Exchange

8

(c)

Stock option plan:

During the quarter ended March 31, 2005, options in respect of 293,334 common shares expired or were cancelled.

	Number of Shares		Weighted Average Exercise Price
Outstanding, December 31, 2003	550,000		$	5.08
Cancelled	(334,167	)		4.80
Granted	466,667			3.60
Exercised	(19,333	)		3.30
Outstanding, December 31, 2004	663,167			3.60
Cancelled	(293,334	)		(3.56	)
Outstanding, March 31, 2005	369,833		$	3.63

The following table summarizes the options outstanding at March 31, 2005.

Number of options outstanding and currently excercisable	Exercise price		Weighted average remaining contractual life (years)
98,166	$	3.30	3.3
30,000		4.50	1.2
30,833		7.50	2.0
77,500		3.00	3.3
133,334		4.80	4.6
369,833

(d)

Earnings (loss) per share:

Basic earnings (loss) per share are computed using the weighted average number of common shares outstanding during the period. Fully diluted earnings (loss) per share are computed using the treasury stock method whereby the weighted average number of common shares used in the basic earnings per share calculation is increased by the number of common shares potentially issuable upon exercise of all outstanding options and warrants.

The conversion of stock options and warrants to calculate fully diluted was not done for the three months ended March 31, 2004, because the conversion would have been anti-dilutive.

9

6      Investment in Joint Venture

Considar Metal Marketing SA, an entity incorporated under the laws of the Grand Duchy of Luxembourg, is a Joint Venture in which the Company holds a 50% interest. The Joint Venture, together with its wholly-owned subsidiary, Considar Metal Marketing Inc., carries on the business of providing metal marketing to customers in various metal related industries.

The following is a summary of the Company's 50% pro rata share of the assets, liabilities, revenues and expenses of the Considar Metal Marketing SA Joint Venture. Substantially all of the Company's sales are transacted with the joint venture. Such information is presented prior to inter-company eliminations.

		March 31, 2005			December 31, 2004
Assets
Current assets
	Cash	$	1,379		$	1,405
	Accounts receivable		20,336			20,262
	Inventories		29,093			27,394
	Prepaid expense and other assets		41			56
	Fair value of derivatives		4,514			3,418
			55,363			52,535
Fair value of derivatives			914			772
Property, plant and equipment			106			112
		$	56,383		$	53,419
Liabilities
Current liabilities
	Accounts payable and accrued liabilities	$	50,310		$	48,578
	Fair value of derivatives		53			178
	Deferred charge		344			508
			50,707			49,264
Future income tax payable			1,850			1,290
Shareholders' equity
Share capital			1,605			1,605
Cumulative translation adjustment			(328	)		(333	)
Retained earnings			2,549			1,593
			3,826			2,865
		$	56,383		$	53,419

10

	For the Three Months Ended March 31, 2005
Revenues	$	79,343
Costs and expenses
Operating, general and administrative		80,139
Depreciation and amortization		7
Foreign exchange (gain)		(11	)
		80,135
Operating earnings (loss)		(792	)
Other income		2
Gain on derivative instruments		2,364
Earnings (loss) before taxes
		1,574
Taxes		(618	)
Earnings (loss) for the period
	$	956
Cash flow resulting from operating activities	$	(987	)

7      Segmented Information

The CICA Handbook Section 1701, Segment Disclosures, establishes standards for reporting information about a company's operating segments. The Company is an integrated base metals producer and operates in a single reportable operating segment.

The Company's revenue by significant product types:

		For the Three Months Ended March 31, 2005
Revenues
	Copper	$	82,076
	Zinc		32,852
	Zinc oxide		17,650
	Gold		13,283
	Other		5,664
		$	151,525

11

8      Commitments

For the mutual benefit of both parties, HBMS intends to terminate its agreement to purchase 40,000 dry metric tonnes of copper concentrate per year, effective June 30, 2005. The proposed termination which would otherwise have expired in 2008, is not expected to impact the Company's ability to supply copper to the Flin Flon smelter.

9      Foreign Currency Risk Management

The Company employs derivative financial instruments, including forwards and option contracts, to manage risk originating from actual exposures to commodity price risk and foreign exchange risk.

a)

Foreign currency

In 2004, the Company paid US$1.2 million to purchase an option giving it the right but not the obligation to pay an additional US$2.9 million to purchase US dollar put options. The put options secure the right, but not the obligation to sell US$4.375 million per quarter at $1.20482 starting in April 2005 and continuing to January 2009. The additional US$2.9 million was paid in 2005, and this together with the initial option payment, has been recorded in Prepaid expenses and other assets and will be amortized over the life of the option.

b)

Commodity price

Through its joint venture interest in Considar Metal Marketing SA, the Company manages the risk associated with forward physical sales that are made on a fixed price basis regarding zinc and zinc oxide, and accordingly, enters into forward zinc purchase contracts. Although in management's opinion, the contracts continue to be effective in mitigating the Company's exposure to commodity price risk, the Company has elected not to designate these as accounting hedges under The Canadian Institute of Chartered Accountants' ("CICA") Accounting Guideline 13 ("AcG-13"), Hedging Relationships, and, accordingly, has accounted for these derivative instruments using the fair value accounting method. At March 31, 2005, the joint venture had outstanding forward contracts to purchase 22,348 tonnes of zinc at prices ranging from US$834 to US$1,392 per tonne with settlement dates in the next two years.

12

10    Other Supplementary Information

a)

Debt obligations

	March 31, 2005		December 31, 2004
Province of Manitoba	$	15,413	$	15,179
Senior secured notes		211,680		210,350
		227,093		225,529
Less: Current portion of long-term debt		2,000		2,000
	$	225,093	$	223,529

The terms of the loan from the Province of Manitoba have been amended whereby the Company must meet certain minimal employment levels and exploration expenditures in each calendar year to maintain the interest-free nature of the loan. The interest rate applicable if the terms are not met varies from Crown Rate to Crown Rate plus 4% depending on the shortfall. For the current calendar year, management believes the restrictions will be met and no interest will be payable.

The Company has outstanding letters of credit in the amount of $37.8 million that are secured by an equal amount of cash.

b)

Defined pension and other future employee benefit expense

	For the Three Months Ended March 31, 2005
Pension expense	$	2,325
Other future employee benefits expense	$	1,150

13

c)

Supplemental cash flow information

		For the Three Months Ended March 31
		2005			2004
Net change in non-cash working capital items
	Accounts receivable	$	3,311		$	—
	Inventories		10,293			—
	Accounts payable and accrued liabilities		(10,695	)		(18	)
	Interest payable		5,143			—
	Prepaid expenses and other assets		(4,849	)		(175	)
			3,203			(193	)

11    Hudson Bay Mining & Smelting Co., Limited

As indicated in Note 4, the Company acquired HBMS on December 21, 2004. The following highlights key financial information of HBMS prior to consolidation.

	For the Three Months Ended March 31
	2005		2004
Total revenues	$	151,525	$	142,231
Net earnings		12,813		19,142
Long term financial debt (excluding current portion)		236,993		29,848
Total assets		840,931		563,847

Included in total assets for 2005 is an intercompany account in the amount of $211,680 due from the Company.

12    Comparative Figures

Certain of the prior period's comparative numbers have been restated to conform to the current period's presentation.

14

EX-99.2

QuickLinks -- Click here to rapidly navigate through this document

Exhibit 99.2

HudBay Minerals Inc.
(Formerly ONTZINC Corporation)

Interim Management Discussion and Analysis of
Results of Operations and Financial Condition
Three Months Ended March 31, 2005

May 13, 2005

MANAGEMENT'S DISCUSSION AND ANALYSIS
OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

Unless the context otherwise suggests, references to "we", "us", "our" and similar terms, as well as references to the "Company", refer to HudBay Minerals Inc.

        You should read this Management's Discussion and Analysis ("MD&A") in conjunction with the Company's unaudited consolidated financial statements for the three months ended March 31, 2005 and related notes thereto, which have been prepared in accordance with Canadian generally accepted accounting principles (GAAP). All figures are in Canadian dollars unless otherwise noted.

        This MD&A contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding the Company's future plans and objectives are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in documents that we have filed from time to time with the Toronto Stock Exchange and other regulatory authorities.

        Certain items of financial information in this MD&A, including cash cost per pound of zinc, net of by-product credits are furnished to provide additional information and are non-GAAP measures. As non-GAAP measures they do not have standardized meanings nor are they necessarily comparable with similar measures presented by other companies. These measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with generally accepted accounting principles and are not necessarily indicative of operating expenses as determined under generally accepted accounting principles. These measures are intended to provide investors with information about the cash generating capabilities of the Company's operations. HudBay uses this information for the same purpose. Mining operations are capital intensive. These measures exclude capital expenditures. Capital expenditures are discussed throughout the MD&A and the unaudited consolidated financial statements.

        Additional information regarding the Company, including its Renewal Annual Information Form and Revised Annual MD&A for 2004 is available on SEDAR at www.sedar.com.

        On December 21, 2004, HudBay acquired indirectly all of the outstanding shares of Hudson Bay Mining and Smelting Co., Limited ("HBMS"). As a result, the Company is now an integrated mining and metals processing company that operates mines and concentrators in northern Manitoba and Saskatchewan, Canada, a metal processing complex in Flin Flon, Manitoba and a zinc oxide production facility in Brampton, Ontario. HudBay's results for the quarter ended March 31, 2005 are significantly different from its results for the quarter ended March 31, 2004 because of the impact of its acquisition of HBMS. A comparison of HBMS' results for the quarter ended March 31, 2005 and 2004 is contained in Note 11 to the Company's unaudited consolidated financial statements for the three months ended March 31, 2005.

        On April 18, 2005, HudBay announced the resignation of John Knowles, the Company's Vice President and Chief Financial Officer, as of June 30, 2005.

2

Summarized Financial Results

        The following table sets out summary consolidated financial information for the Company at and for the three-month periods ("quarters") ended March 31, 2005, 2004, and 2003:

		Quarter ended March 31 ($ thousands except for per share amounts)
		2005		2004(1)(2)			2003(1)(2)
Statement of operations:
	Sales		151,525		0			0
	Earnings (loss)		9,181		(1,664	)		(302	)
Earnings (loss) per common share(3):
	Basic	$	0.12	$	(0.29	)	$	(0.10	)
	Diluted	$	0.12		na(4)			na(4)
Balance sheet:
	Cash and cash equivalents		97,453		5,664			326
	Total assets		658,894		15,904			4,365
	Total long term debt and capital leases, excluding current portion		236,993		1,527			0
	Shareholders' equity		170,622		12,595			3,351

(1)

Excludes results of Hudson Bay Mining and Smelting Co., Limited ("HBMS").

(2)

Restated to give effect to change in accounting policy related to expensing of exploration costs, consistent with HBMS practice, and to retroactively adopt recommendations under Section 3110, Asset Retirement Obligations.

(3)

As of May 12, 2005, there were 80,939,613 common shares of the Company issued and outstanding.

(4)

The conversion of stock options and warrants to calculate fully diluted was not done for 2004 and 2003 because the conversion would have been anti-dilutive.

Results of Operations

Quarter Ended March 31, 2005 Compared to Quarter Ended March 31, 2004

        Net income for the quarter ended March 31, 2005 was $9.2 million compared with a loss of $1.7 million for the quarter ended March 31, 2004.

        Total sales revenue for the quarter was approximately $151.5 million from sales of approximately 20,400 tonnes of copper, 27,100 tonnes of zinc (including sales to Zochem), 10,300 tonnes of zinc oxide, 25,400 ounces of gold, and 331,600 ounces of silver. Over the quarter, gross realized prices averaged US$1.49/lb copper, US$0.62/lb zinc, US$426/troy oz gold, and US$7.23/troy oz silver. The Canadian to US dollar exchange rate averaged Cdn $1.23 per US $1.00 for the quarter. The Company had no metal sales in the first quarter of 2004.

        Operating costs for the quarter ended March 31, 2005 increased to $117.7 million from $1.1 million for the quarter ended March 31, 2004. Costs in the first quarter of 2005 include approximately $116.5 million of HBMS operating costs, as well as care and maintenance costs of properties held prior to the acquisition of HBMS. Costs in the first quarter of 2004 primarily relate to care and maintenance costs of the Balmat Mine acquired in September 2003 but also include care and maintenance of the Gays River property.

3

        General and administrative expenses for the quarter ended March 31, 2005 were $3.6 million, versus $0.5 million for the quarter year ended March 31, 2004. Costs in 2005 reflect the acquisition of HBMS in December 2004 and include approximately $1.2 million in settlement costs in respect of former executives of the Company and provisions for retention bonus payments to continuing employees arising from our acquisition of HBMS.

Cash Cost per Pound of Zinc Sales

        HudBay's total cash cost net of credits for the quarter ended March 31, 2005 was US$0.21 per pound of zinc sold. This includes approximately US$0.16 per pound for HBMS, US$0.03 per pound for non-HBMS operations, which are comprised primarily of care and maintenance costs at Balmat and Gays River and Toronto office costs, and US$0.02 per pound for payments to former executives as well as HBMS employee retention costs. The Company had no metal sales in the same quarter of 2004.

Non GAAP Reconciliation of Cash Cost per Pound of Zinc, Net of By-Product Credits

HudBay Minerals Inc.		Quarter Ended March 31, 2005
		(Unaudited) (thousands)
Operating Costs			135,049
Non-cash operating costs
	Depreciation and amortization		(12,724	)
	Accretion and other non-cash		(652	)
			121,673
Less: By-product credits(1)			(106,263	)
Cash cost net of by-products		C$	15,410
Exchange rate (C$/U.S$.)(2)			1.227
Cash cost net of by-products		US$	12,559
Zinc sales (000 lbs)			59,739
Cash cost per pound of zinc, net of by-product credits		US$	0.21

(1)

By-product credits include revenues from sale of copper, gold, silver, the premium on zinc oxide sales and the Company's proportionate share of by-product sales by its marketing joint venture.

(2)

Average exchange rate for the period.

4

Cash Flows, Liquidity, and Capital Resources

        The following table summarizes our cash flows for the quarters ended March 31, 2005, and 2004:

		2005		2004(1)(2)
		Unaudited ($000s)		Unaudited ($000s)
Operating activities
	Earnings (loss) for the period	9,181		(1,664	)
	Items not affecting cash	13,674		(177	)
	Net change in non-cash items	5,031		(193	)
Cash generated by (required for) operating activities		27,886		(2,034	)
Cash generated by (required for) investing activities		(4,298	)	(2,302	)
Cash generated by financing activities		9,068		7,886
Foreign exchange loss on cash held in foreign currency		244		0
Increase in cash and short term deposits		32,900		3,550

1)

Excludes results of Hudson Bay Mining and Smelting Co., Limited ("HBMS").

2)

Restated to give effect to change in accounting policy relating to expensing of exploration costs, consistent with HBMS practice, and to retroactively adopt recommendations under Section 3110, Asset Retirement Obligations.

Quarter Ended March 31, 2005 Compared to Quarter Ended March 31, 2004

        As of March 31, 2005, HudBay had cash and cash equivalents of $97.5 million compared to $5.7 million as at March 31, 2004. As at March 31, 2005, there were outstanding letters of credit in the amount of $37.8 million, secured by an equal amount of cash.

        Cash flow from operations totaled $27.9 million for the quarter ended March 31, 2005. This relates primarily to HBMS operations, which contributed $32.8 million, and compares with $2.0 million cash required for operating activities in the same period in 2004 when the Company incurred a loss of $1.7 million primarily in relation to management fees, mine care and maintenance activities and debenture interest expense.

        Financing activities in the first quarter 2005 generated $9.1 million. This included a private placement of 806,452 flow-through shares at a price of $3.10 per share for net proceeds of $2.4 million, which is being spent on Canadian exploration activities. Broker warrants issued in connection with the Company's offering of subscription receipts were exercised during the quarter for proceeds of $6.1 million. Financing activities in the same period in 2004 generated $7.9 million, which included $5.3 million net proceeds from the issuance of common shares and warrants, primarily relating to the private placement of 1,036,920 units of the Company at a price of $5.40 per unit. Each unit consisted of one common share and 15 common share purchase warrants. Every 30 warrants entitle the holder to acquire one common share for a period of two years from the date of issuance, exercisable at a price of $6.00 per share. The 2004 amount also includes $2.0 million in respect of a debenture subscription receivable and $0.6 million in respect of an increase in the convertible debenture issued by the Company.

5

        In the first quarter of 2005, a net total of $4.3 million was required for investing activities, including $17.3 million for mine development and other sustaining capital expenditures net of a $13.0 million decrease in restricted cash relating to the funds placed in trust for the governments of Manitoba and Saskatchewan as financial assurance for the Company's asset retirement obligations. This compares with $2.3 million required for investing activities in the first quarter of 2004. In March 2004, the Company paid $2.0 million to Pasminco Resources Canada Inc. in satisfaction of the final cash purchase price outstanding in respect of the Gays River Mine.

        As at March 31, 2005, the HudBay had long-term financial debt (excluding the current portion) of $227.0 million. The Company will consider, from time to time, reducing debt through various means including open market purchases of senior secured notes.

Production

        A summary of production statistics for the first quarter of 2005 together with comparative information for the first quarter of 2004 is shown in the following table:

First Quarter Results

			Q1 2005	Q1 2004
Mines:
Trout Lake:		tonnes	213,055	203,723
	Copper	%	1.28	1.65
	Zinc	%	6.37	4.96
	Gold	g/tonne	1.55	1.40
	Silver	g/tonne	15.96	13.38
Konuto:		tonnes	87,062	80,748
	Copper	%	4.19	4.14
	Zinc	%	1.39	2.05
	Gold	g/tonne	1.73	1.85
	Silver	g/tonne	8.48	9.51
7 7 7:		tonnes	243,248	237,304
	Copper	%	2.23	3.35
	Zinc	%	3.75	4.46
	Gold	g/tonne	1.88	2.35
	Silver	g/tonne	20.57	24.47
Chisel North:		tonnes	86,545	81,923
	Copper	%	0.16	0.15
	Zinc	%	9.64	10.86
	Gold	g/tonne	0.67	0.39
	Silver	g/tonne	24.48	30.99
Total Mines		tonnes	629,910	603,698
	Copper	%	1.89	2.45
	Zinc	%	5.12	5.18
	Gold	g/tonne	1.58	1.70
	Silver	g/tonne	17.87	19.61

6

First Quarter Results

			Q1 2005	Q1 2004
Concentrators:
	Flin Flon Concentrator	tonnes	552,829	526,266
	Copper	%	2.10	2.72
	Zinc	%	4.52	4.31
	Gold	g/tonne	1.71	1.89
	Silver	g/tonne	16.94	18.00
	Copper Concentrate Produced	tonnes	45,666	57,171
	Grade	% Cu	23.06	23.54
	Zinc Concentrate Produced	tonnes	39,448	35,096
	Grade	% Zn	50.34	49.63
	Copper recovery to Cu conc	%	90.8	93.9
	Gold recovery to Cu conc	%	77.2	68.1
	Silver recovery to Cu conc	%	68.1	63.0
	Zinc recovery to Zn conc	%	79.4	76.8
Snow Lake Concentrator		tonnes	85,632	81,696
	Zinc	%	9.64	10.86
	Zinc Concentrate Produced	tonnes	15,827	16,748
	Grade	% Zn	50.91	51.65
	Zinc recovery to Zn conc	%	97.6	97.5
Smelter:
Copper Conc Treated:
	Domestic	tonnes	48,352	49,870
	Purchased	tonnes	28,839	27,865
	Total	tonnes	77,191	77,735
Zinc Plant:
Zinc Conc Treated:
	Domestic	tonnes	58,809	49,750
	Purchased	tonnes	0	3,488
	Total	tonnes	58,809	53,238

7

First Quarter Results

			Q1 2005	Q1 2004
Metal Produced:
From HBMS Mines:
	Copper	tonnes	11,411	11,641
	Zinc	tonnes	29,177	24,296
	Gold	oz	25,197	18,351
	Silver	oz	214,608	165,798
From Purchased Concentrates:
	Copper	tonnes	9,287	10,007
	Zinc	tonnes	27	1,764
	Gold	oz	577	431
	Silver	oz	123,685	110,848
Total Metal Produced:
	Copper	tonnes	20,698	21,648
	Zinc	tonnes	29,204	26,061
	Gold	oz	25,774	18,782
	Silver	oz	338,293	276,646

Interim Financial Condition

Financial Condition at March 31, 2005 Compared to Financial Condition as at December 31, 2004

        Economic and industry factors are largely unchanged from December 31, 2004, and markets continue to see strength in base metal prices. With the exception of the items discussed below, the financial condition of the Company as at March 31, 2005 is not materially different from that as at December 31, 2004:

•

Cash and cash equivalents at March 31, 2005 increased by $32.9 million compared to December 31, 2004.



•

Restricted cash decreased by $13 million as funds placed in trust for the Provinces of Manitoba and Saskatchewan as financial assurance for the Company's asset retirement obligations were replaced with letters of credit.



•

Working capital improved by $28.1 million, reflecting the improved cash position net of routine fluctuations in other working capital items.



•

Share capital increased by $10 million, which included $7.7 million from exercise of warrants and $2.5 million from flow through shares, net of $0.2 million share issue costs.



•

HudBay's contractual obligations at March 31, 2005 are materially unchanged from December 31, 2004 except that, for the mutual benefit of both parties, HBMS intends to terminate its evergreen concentrate purchase agreement with Compania Minera Dona Ines de Collahuasi to purchase 40,000 dmt of copper concentrate per year, effective June 30, 2005. The proposed termination, which would otherwise have expired in 2008, is not expected to impact the Company's ability to supply copper concentrate to its Flin Flon smelter.

8

•

As of March 24, 2005, HudBay agreed to guarantee the 9⁵/8% senior secured notes of HBMS. The guarantee is unsecured and ranks subordinate in right of payment to all of HudBay's senior indebtedness. The guarantee will terminate on the date upon which HudBay owns less than a majority of the voting shares of HBMS.

Exploration

        The previously announced program of exploration on the Company's lands in Manitoba and Saskatchewan commenced during the quarter, with the first expenditures funded by means of the flow-through equity issue discussed under Cash Flows, Liquidity and Capital Resources. This is the first stage in a planned exploration program of up to $10 million in the Flin Flon Greenstone Belt during the remainder of the year and the first quarter of 2006.

Risk Management

        The Company uses forward exchange or currency collar contracts to limit the effects of movements in exchange rates on foreign currency denominated assets and liabilities and future anticipated transactions. At March 31, 2005 the Company held US dollar put options giving it the right, but not the obligation, to sell up to US$70 million in equal quarterly amounts at $1.20482 per US dollar, starting in April 2005 and continuing to January 2009.

        From time to time the Company maintains price protection programs and conducts commodity price risk management through the use of instruments similar to those used to limit currency exposures. Through its joint venture interest in Considar Metal Marketing SA, the Company manages risk associated with forward physical sales that are made on a fixed price basis regarding zinc and zinc oxide and, accordingly, enters into forward zinc purchase contracts. These contracts effectively offset the Company's forward sales price commitments. In the current environment of strong base metal market prices, the Company has benefited from full exposure to metal price movements, and will consider implementing protection to limit the effects of future price changes.

9

QuickLinks

MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

EX-99.3

Exhibit 99.3

HudBay Minerals Announces First Quarter 2005 Results

Highlights:

•

First quarter since acquisition of Hudson Bay Mining and Smelting Co., Limited

•

Sales revenue $151.5 million for quarter

•

Cash position increases to $97.5 million

•

Zinc production second highest quarter on record

•

Consolidated cash operating cost US$0.21 lb. of zinc, net of by-product credits

•

$10 million exploration program commences

Toronto, Ontario — May 13, 2005 — HudBay Minerals Inc. (TSX: HBM) earned $9.2 million or $0.12 per share in the first quarter of 2005, compared to a loss of $1.7 million or $0.29 per share in the same period of 2004. This marked the first full quarter of operations since the acquisition of Hudson Bay Mining and Smelting Co., Limited (HBMS) on December 21, 2004.

Summarized Financial Results

        The following table sets out summary consolidated financial information for the Company at and for the three-month periods ("quarters") ended March 31, 2005, 2004, and 2003:

		Quarter ended March 31 ($ thousands except for per share amounts)
		2005		2004(1)(2)			2003(1)(2)
Statement of operations:
	Sales		151,525		0			0
	Earnings (loss)		9,181		(1,664	)		(302	)
Earnings (loss) per common share(3):
	Basic	$	0.12	$	(0.29	)	$	(0.10	)
	Diluted	$	0.12		na	(4)		na	(4)
Balance sheet:
	Cash and cash equivalents		97,453		5,664			326
	Total assets		658,894		15,904			4,365
	Total long term debt and capital leases, excluding current portion		236,993		1,527			0
	Shareholders' equity		170,622		12,595			3,351

(1)

Excludes results of HBMS.

(2)

Restated to give effect to change in accounting policy related to expensing of exploration costs, consistent with HBMS practice, and to retroactively adopt recommendations under Section 3110, Asset Retirement Obligations.

(3)

As of May 12, 2005, there were 80,939,613 common shares of the Company issued and outstanding.

(4)

The conversion of stock options and warrants to calculate fully diluted was not done for 2004 and 2003 because the conversion would have been anti-dilutive.

Results of Operations

Quarter Ended March 31, 2005 Compared to Quarter Ended March 31, 2004

        Net income for the quarter ended March 31, 2005 was $9.2 million compared with a loss of $1.7 million for the quarter ended March 31, 2004.

        Total sales revenue for the quarter was approximately $151.5 million from sales of approximately 20,400 tonnes of copper, 27,100 tonnes of zinc (including sales to Zochem), 10,300 tonnes of zinc oxide, 25,400 ounces of gold, and 331,600 ounces of silver. Over the quarter, gross realized prices averaged US$1.49/lb copper, US$0.62/lb zinc, US$426/troy oz gold, and US$7.23/troy oz silver. The Canadian to US dollar exchange rate averaged Cdn $1.23 per US $1.00 for the quarter. The Company had no sales in the first quarter of 2004.

        Operating costs for the quarter ended March 31, 2005 increased to $117.7 million from $1.1 million for the quarter ended March 31, 2004. Costs in the first quarter of 2005 include approximately $116.5 million of HBMS operating costs, as well as care and maintenance costs of properties held prior to the acquisition of HBMS. Costs in the first quarter of 2004 primarily relate to care and maintenance costs of the Balmat Mine acquired in September 2003 but also include care and maintenance of the Gays River Mine.

        General and administrative expenses for the quarter ended March 31, 2005 were $3.6 million, versus $0.5 million for the quarter year ended March 31, 2004. Costs in 2005 reflect the acquisition of HBMS in December 2004 and include approximately $1.2 million in settlement costs in respect of former executives of the Company and provisions for retention bonus payments to continuing employees arising from our acquisition of HBMS.

Cash Cost per Pound of Zinc Sales

        HudBay's total cash cost net of credits for the quarter ended March 31, 2005 was US$0.21 per pound of zinc sold. This includes approximately US$0.16 per pound for HBMS, US$0.03 per pound for non-HBMS operations, which are comprised primarily of care and maintenance costs at Balmat and Gays River and Toronto office costs, and US$0.02 per pound for payments to former executives as well as HBMS employee retention costs. The Company had no metal sales in the same quarter of 2004.

Non GAAP Reconciliation of Cash Cost per Pound of Zinc, Net of By-Product Credits

HudBay Minerals Inc.		Quarter Ended Mar 31, 2005
		(Unaudited) (thousands)
Operating Costs		135,049
Non-cash operating costs
	Depreciation and amortization	(12,724	)
	Accretion and other non-cash	(652	)
		121,673
Less: By-product credits(1)		(106,263	)
Cash cost net of by-products		C$15,410
Exchange rate (C$/U.S.$)(2)		1.227
Cash cost net of by-products		US$12,559
Zinc sales (000 lbs)		59,739
Cash cost per pound of zinc, net of by-product credits		US$0.21

(1)

By-product credits include revenues from sale of copper, gold, silver, the premium on zinc oxide sales and the Company's proportionate share of by-product sales by its marketing joint venture.

(2)

Average exchange rate for the period.

2

Cash Flows, Liquidity, and Capital Resources

        The following table summarizes our cash flows for the quarters ended March 31, 2005, and 2004:

		2005		2004(1)(2)
		Unaudited ($000s)		Unaudited ($000s)
Operating activities
	Earnings (loss) for the period	9,181		(1,664	)
	Items not affecting cash	13,674		(177	)
	Net change in non-cash items	5,031		(193	)
Cash generated by (required for) operating activities		27,886		(2,034	)
Cash generated by (required for) investing activities		(4,298	)	(2,302	)
Cash generated by financing activities		9,068		7,886
Foreign exchange loss on cash held in foreign currency		244		0
Increase in cash and short term deposits		32,900		3,550

1)

Excludes results of Hudson Bay Mining and Smelting Co., Limited ("HBMS").

2)

Restated to give effect to change in accounting policy relating to expensing of exploration costs, consistent with HBMS practice, and to retroactively adopt recommendations under Section 3110, Asset Retirement Obligations.

Quarter Ended March 31, 2005 Compared to Quarter Ended March 31, 2004

        As of March 31, 2005, HudBay had cash and cash equivalents of $97.5 million compared to $5.7 million as at March 31, 2004. As at March 31, 2005, there were outstanding letters of credit in the amount of $37.8 million, secured by an equal amount of cash.

        Cash flow from operations totaled $27.9 million for the quarter ended March 31, 2005. This relates primarily to HBMS operations, which contributed $32.8 million, and compares with $2.0 million cash required for operating activities in the same period in 2004 when the Company incurred a loss of $1.7 million primarily in relation to management fees, mine care and maintenance activities and debenture interest expense.

        Financing activities in the first quarter 2005 generated $9.1 million. This included a private placement of 806,452 flow-through shares at a price of $3.10 per share for net proceeds of $2.4 million, which is being spent on Canadian exploration activities. Broker warrants issued in connection with the Company's offering of subscription receipts were exercised during the quarter for proceeds of $6.1 million. Financing activities in the same period in 2004 generated $7.9 million, which included $5.3 million net proceeds from the issuance of common shares and warrants, primarily relating to the private placement of 1,036,920 units of the Company at a price of $5.40 per unit. Each unit consisted of one common share and 15 common share purchase warrants. Every 30 warrants entitle the holder to acquire one common share for a period of two years from the date of issuance, exercisable at a price of $6.00 per share. The 2004 amount also includes $2.0 million in respect of a debenture subscription receivable and $0.6 million in respect of an increase in the convertible debenture issued by the Company.

        In the first quarter of 2005, a net total of $4.3 million was required for investing activities, including a $13.0 million decrease in restricted cash relating to the funds placed in trust for the governments of Manitoba and Saskatchewan as financial assurance for the Company's asset retirement obligations, net of a $17.3 million requirement for mine development and other sustaining capital expenditures. This compares with $2.3 million required for investing activities in the first quarter of 2004. In March 2004, the Company paid $2.0 million to Pasminco Resources Canada Inc. in satisfaction of the final cash purchase price outstanding in respect of the Gays River Mine.

3

        As at March 31, 2005, the HudBay had long-term financial debt (excluding the current portion) of $227.0 million. The Company will consider, from time to time, reducing debt through various means including open market purchases of senior secured notes.

Production

A summary of production statistics for the first quarter of 2005 together with comparative information for the first quarter of 2004 is shown in the following table:

First Quarter Results

			Q1 2005	Q1 2004
Mines:
Trout Lake:		tonnes	213,055	203,723
	Copper	%	1.28	1.65
	Zinc	%	6.37	4.96
	Gold	g/tonne	1.55	1.40
	Silver	g/tonne	15.96	13.38
Konuto:		tonnes	87,062	80,748
	Copper	%	4.19	4.14
	Zinc	%	1.39	2.05
	Gold	g/tonne	1.73	1.85
	Silver	g/tonne	8.48	9.51
7 7 7:		tonnes	243,248	237,304
	Copper	%	2.23	3.35
	Zinc	%	3.75	4.46
	Gold	g/tonne	1.88	2.35
	Silver	g/tonne	20.57	24.47
Chisel North:		tonnes	86,545	81,923
	Copper	%	0.16	0.15
	Zinc	%	9.64	10.86
	Gold	g/tonne	0.67	0.39
	Silver	g/tonne	24.48	30.99
Total Mines		tonnes	629,910	603,698
	Copper	%	1.89	2.45
	Zinc	%	5.12	5.18
	Gold	g/tonne	1.58	1.70
	Silver	g/tonne	17.87	19.61

4

First Quarter Results

			Q1 2005	Q1 2004
Concentrators:
Flin Flon Concentrator		tonnes	552,829	526,266
	Copper	%	2.10	2.72
	Zinc	%	4.52	4.31
	Gold	g/tonne	1.71	1.89
	Silver	g/tonne	16.94	18.00
	Copper Concentrate Produced	tonnes	45,666	57,171
	Grade	% Cu	23.06	23.54
	Zinc Concentrate Produced	tonnes	39,448	35,096
	Grade	% Zn	50.34	49.63
	Copper recovery to Cu conc	%	90.8	93.9
	Gold recovery to Cu conc	%	77.2	68.1
	Silver recovery to Cu conc	%	68.1	63.0
	Zinc recovery to Zn conc	%	79.4	76.8
Snow Lake Concentrator		tonnes	85,632	81,696
	Zinc	%	9.64	10.86
	Zinc Concentrate Produced	tonnes	15,827	16,748
	Grade	% Zn	50.91	51.65
	Zinc recovery to Zn conc	%	97.6	97.5
Smelter:
Copper Conc Treated:
	Domestic	tonnes	48,352	49,870
	Purchased	tonnes	28,839	27,865
	Total	tonnes	77,191	77,735
Zinc Plant:
Zinc Conc Treated:
	Domestic	tonnes	58,809	49,750
	Purchased	tonnes	0	3,488
	Total	tonnes	58,809	53,238

5

First Quarter Results

			Q1 2005	Q1 2004
Metal Produced:
From HBMS Mines:
	Copper	tonnes	11,411	11,641
	Zinc	tonnes	29,177	24,296
	Gold	oz	25,197	18,351
	Silver	oz	214,608	165,798
From Purchased Concentrates:
	Copper	tonnes	9,287	10,007
	Zinc	tonnes	27	1,764
	Gold	oz	577	431
	Silver	oz	123,685	110,848
Total Metal Produced:
	Copper	tonnes	20,698	21,648
	Zinc	tonnes	29,204	26,061
	Gold	oz	25,774	18,782
	Silver	oz	338,293	276,646

Interim Financial Condition

Financial Condition at March 31, 2005 Compared to Financial Condition as at December 31, 2004

        Economic and industry factors are largely unchanged from December 31, 2004, and markets continue to see strength in base metal prices. With the exception of the items discussed below, the financial condition of the Company as at March 31, 2005 is not materially different from that as at December 31, 2004:

•

Cash and cash equivalents at March 31, 2005 increased by $32.9 million compared to December 31, 2004.



•

Restricted cash decreased by $13 million as funds placed in trust for the Provinces of Manitoba and Saskatchewan as financial assurance for the Company's asset retirement obligations were replaced with letters of credit.



•

Working capital improved by $28.1 million, reflecting the improved cash position net of routine fluctuations in other working capital items.



•

Share capital increased by $10 million, which included $7.7 million from exercise of warrants and $2.5 million from flow through shares, net of $0.2 million share issue costs.



•

HudBay's contractual obligations at March 31, 2005 are materially unchanged from December 31, 2004 except that, for the mutual benefit of both parties, HBMS intends to terminate its evergreen concentrate purchase agreement with Compania Minera Dona Ines de Collahuasi to purchase 40,000 dmt of copper concentrate per year, effective June 30, 2005. The proposed termination, which would otherwise have expired in 2008, is not expected to impact the Company's ability to supply copper concentrate to its Flin Flon smelter.



•

As of March 24, 2005, HudBay agreed to guarantee the 9⁵/8% senior secured notes of HBMS. The guarantee is unsecured and ranks subordinate in right of payment to all of HudBay's senior indebtedness. The guarantee will terminate on the date upon which HudBay owns less than a majority of the voting shares of HBMS.

6

Exploration

        The previously announced program of exploration on the Company's lands in Manitoba and Saskatchewan commenced during the quarter, with the first expenditures funded by means of the flow-through equity issue discussed under Cash Flows, Liquidity and Capital Resources. This is the first stage in a planned exploration program of up to $10 million in the Flin Flon Greenstone Belt during the remainder of the year and the first quarter of 2006.

Risk Management

        The Company uses forward exchange or currency collar contracts to limit the effects of movements in exchange rates on foreign currency denominated assets and liabilities and future anticipated transactions. At March 31, 2005 the Company held US dollar put options giving it the right, but not the obligation, to sell up to US$70 million in equal quarterly amounts at $1.20482 per US dollar, starting in April 2005 and continuing to January 2009.

        From time to time the Company maintains price protection programs and conducts commodity price risk management through the use of instruments similar to those used to limit currency exposures. Through its joint venture interest in Considar Metal Marketing SA, the Company manages risk associated with forward physical sales that are made on a fixed price basis regarding zinc and zinc oxide and, accordingly, enters into forward zinc purchase contracts. These contracts effectively offset the Company's forward sales price commitments. In the current environment of strong base metal market prices, the Company has benefited from full exposure to metal price movements, and will consider implementing protection to limit the effects of future price changes.

About HudBay Minerals Inc.

HudBay Minerals Inc. is an integrated mining and metal producing company that operates mines and concentrators in northern Manitoba and Saskatchewan and a metal processing complex in Flin Flon, Manitoba. The company also operates a zinc oxide production facility in Brampton, Ontario and the former producing mines of Balmat in New York State and Gays River in Nova Scotia that are being evaluated for re-opening.

Unless the context otherwise suggests, references to "we", "us", "our" and similar terms, as well as references to the "Company", refer to HudBay Minerals Inc. All figures are in Canadian dollars unless otherwise noted.

This press release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding our future plans and objectives are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from our expectations are disclosed in documents that we have filed from time to time with the Toronto Stock Exchange and other regulatory authorities.

7

Certain items of financial information in this MD&A, including cash cost per pound of zinc, net of by-product credits are furnished to provide additional information and are non-GAAP measures. As non-GAAP measures they do not have standardized meanings nor are they necessarily comparable with similar measures presented by other companies. These measures should not be considered in isolation as a substitute for measures of performance prepared in accordance with generally accepted accounting principles and are not necessarily indicative of operating expenses as determined under generally accepted accounting principles. These measures are intended to provide investors with information about the cash generating capabilities of the Company's operations. HudBay uses this information for the same purpose. Mining operations are capital intensive. These measures exclude capital expenditures. Capital expenditures are discussed throughout the MD&A and the unaudited consolidated financial statements.

— 30 —

For further information:

Peter Jones
President and CEO
Tel: (204) 687 2260
peter.jones@hbms.ca

www.hudbayminerals.com

8