Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Perumin – 32 Convención Minera 2015
21 slides from Hudbay Minerals's conference presentation, Sep 24, 2015
Slide 1: Perumin – 32 Convención Minera
Perumin – 32 Convención Minera September 21 - 25, 2015 HBM INVESTOR PRESENTATION
Slide 2: Cautionary Information
Cautionary Information This presentation contains "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") within the meaning of applicable Canadian and United States securities legislation. All information contained in this presentation, other tha
Slide 3: Cautionary Information (continued)
Cautionary Information (continued) The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward- looking information may include, but are not limited to, risks generally associated with the mining industry
Slide 4: Cautionary Information (continued)
Cautionary Information (continued) The technical and scientific information in this presentation related to the Constancia project has been approved by Cashel Meagher, P. Geo, Hudbay’s Vice President, South America Business Unit. The technical and scientific information related to all other sites an
Slide 5: Base Metal Equities vs. Base Metal Prices
Base Metal Equities vs. Base Metal Prices Source: Bloomberg INVESTOR PRESENTATION 5
Slide 6: Copper Supply and Demand
Copper Supply and Demand Copper (million tonnes) Source: Wood Mackenzie – Copper Long-Term Outlook Q2 2015 (slide pack) INVESTOR PRESENTATION 6
Slide 7: Zinc Supply and Demand
Zinc Supply and Demand 27 22 Zinc (million tonnes) 17 12 7 2 Source: Wood Mackenzie – Global zinc long-term outlook Q2 2015 (PDF) INVESTOR PRESENTATION 7
Slide 8: Global Refined Metal Market Balance
Global Refined Metal Market Balance Source: CRU, Copper Market Outlook and Zinc Market Outlook, July 2015 By 2019, both copper and zinc refined metal markets are expected to be in significant deficit INVESTOR PRESENTATION 8
Slide 9: Copper & Zinc By-Product Cost Curves
Copper & Zinc By-Product Cost Curves1 Source: Wood Mackenzie (2014 cost curves) 1. By-product costs calculated using Wood Mackenzie’s by-product costing methodology, which is materially different from the by-product costs reported by Hudbay in its public disclosure 2 .777 and Constancia by-product c
Slide 10: About Hudbay
About Hudbay Integrated base and precious metals TSX, NYSE, BVL Symbol HBM mining company Market Capitalization1 $1.6 billion Operating mines, development projects and processing Shares Outstanding 235 million facilities located in the Americas Available Liquidity2 $0.4 billion Long track record of
Slide 11: Recent Achievements and Challenges
Recent Achievements and Challenges ACHIEVED OUR GROWTH OBJECTIVES Copper production and operating cost guidance achieved 777 2014 zinc and precious metal production below guidance Production Commercial production achieved ahead of Reed guidance and under budget Achieved commercial production
Slide 12: Near-Term Production Growth
Near-Term Production Growth1 OPPORTUNITY FOR A RE-RATE IS SIGNIFICANT AS WE DELIVER GROWTH 320% 145% 50% INCREASE IN CU PRODUCTION INCREASE IN AU-EQ. PRODUCTION2 INCREASE IN ZN PRODUCTION (kt) (koz) (kt) 200 250 150 200 150 100 150 100 100 50 50 50 - 3 - - 3 3 2014A 2015G 2016E 2014A 2015G 2016E 201
Slide 13: Our Manitoba Business
Our Manitoba Business EXPLORING, BUILDING AND RECLAIMING 2015 Production and Unit Cost Guidance Reserves5 As at January 1, 2015 Contained Metal in Concentrate1 2015 Guidance 2014 Production Tonnes (M) 23.6 Copper (tonnes) 40,000 – 50,000 37,644 Cu (%) 1.20 Zinc (tonnes) 95,000 – 120,000 82,542 Zn (%
Slide 14: Rosemont Project
Rosemont Project 80%-OWNED1 COPPER PROJECT IN ARIZONA, USA Hudbay acquired control of Rosemont project in July 2014 Completed 43 hole confirmatory drill program with approximately 30,000 metres drilled Metallurgical test program and basic engineering review underway Permitting and community engageme
Slide 15: Our South America Business
Our South America Business NEW PRODUCER IN ESTABLISHED MINING JURISDICTION INVESTOR PRESENTATION 15
Slide 16: Constancia Mine
Constancia Mine IN PRODUCTION 2015 Production and Unit Cost Guidance Reserves As at January 1, 2014 Contained Metal in Concentrate1 2015 Guidance 2014 Production Tonnes (M) 620 Copper (tonnes) 100,000 – 125,000 See note 5 Cu (%) 0.32 Precious Metals2 (ounces) 50,000 – 65,000 See note 5 Mo (g/t) 92 C
Slide 17: Constancia Update
Constancia Update IN PRODUCTION Focus on optimization of mine costs and plant performance Improvement in copper recoveries – for most of July, copper recovery ~75%; expected to reach design rate of 88% by Q4 2015 Combined unit operating costs during May and June Constancia mine within guidance range
Slide 18: Recent Constancia Photos
Recent Constancia Photos Constancia pit Flotation cells Tailings management facility Initial Constancia copper concentrate storedEarth mill observing in concentrate shed Hour, March 2015 INVESTOR PRESENTATION 18
Slide 19: Role of Mining in Peru
Role of Mining in Peru SHARED VALUE APPROACH TO CREATING SUSTAINABLE COMMUNITIES Meet international standards for environmental and community performance Engage communities to develop economic capacity Seek opportunities with communities for mutual benefit Provide training and employment, and improv
Slide 20: High Quality Copper Growth Story
High Quality Copper Growth Story Sector leading growth in copper, zinc and gold Attractive operating cost structure and improving unit margins with ramp up of new low-cost production Low geopolitical risk given focus on mining-friendly jurisdictions in the Americas Track record as mine developers an
Slide 21: HBM
For more information contact: Jacqueline Allison Director, Investor Relations Tel: 416.814.4387 Email: jacqueline.allison@hudbayminerals.com HBM INVESTOR PRESENTATION
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