7 Best Zinc Stocks to Buy According to Hedge Funds

4. Hudbay Minerals Inc. (NYSE:HBM)

Number of Hedge Fund Holders: 39

Hudbay Minerals Inc. (NYSE:HBM) is a key mining company that has operations spread across North and South America, focusing on the production of copper, gold, and zinc. The company’s main assets include the 777 zinc-copper-gold-silver mine in Canada and the Constancia copper mine in Peru. These two mines demonstrate Hudbay’s presence in the base metals industry.

For the fiscal year ending December 31, 2024, Hudbay Minerals Inc. (NYSE:HBM) reported a record annual revenue of $2.02 billion, a 19.6% increase from the previous year. This growth was driven by higher copper sales and appreciating gold prices. Attributable net income increased by 15.5% to $76.7 million, reflecting stronger cash flow and operational efficiencies. Adjusted EBITDA reached a record $822.5 million, maintaining a robust margin.

On the other hand, Q4 2024 also faced significant obstacles as revenue declined by 2.87% to $584.9 million, and attributable net income decreased by 30.9% to $21.2 million. These reductions were mainly due to lower grades and heightened production expenses, though zinc production still helped sustain cash flow.

Looking ahead, Hudbay Minerals Inc. (NYSE:HBM) anticipates a 28% reduction in zinc production in 2025, with a projected output of 24,000 tons. This anticipated drop is linked to the extraction of lower-grade base metals at the Lalor mine in accordance with the company’s strategic mine plan.

To address future production stability, a preliminary economic analysis on the reprocessing of zinc plant tailings has confirmed the technical feasibility of an alternative. This project has resulted in additional engineering efforts intended to boost long-term zinc output and mitigate expected reductions. With a strong financial position and strategic investments, Hudbay Minerals Inc. (NYSE:HBM) remains a key investment in the zinc market.