Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q4 2024 Earnings Presentation
19 slides from Hudbay Minerals's earnings presentation, Feb 19, 2025
Slide 1: Q4 2024 Results Presentation
Q 4 2 0 2 4 R E S U LT S P R E S E N TAT I O N FEBRUARY 19, 2025
Slide 2: Cautionary Information
CAUTIONARY INFORMATION This presentation contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this presentation, other than statements of current and historical fact, is forward-looking information. Ofte
Slide 3: 2024 Key Achievements
2024 KEY ACHIEVEMENTS DIVERSIFIED OPERATING BASE ENABLED RECORD FREE CASH FLOW & BALANCE SHEET TRANSFORMATION Achieved $2,021M in record annual revenue and $357M in record annual free cash flow generation Achieved consolidated 2024 production and cost guidance Enhanced operating platform deliv
Slide 4: Q4 2024 Operational Excellence
Q4 2024 OPERATIONAL EXCELLENCE OPERATING PLATFORM DELIVERS STRONG PRODUCTION AND STEADY COST CONTROL KEY RESULTS SUMMARY $257M $149M 43kt $0.45/lb Q4 2024 Q3 2024 2024 2023 Q4 Adj. EBITDA1 Q4 Free Cash Flow2 Q4 Cu Production Q4 Cash Cost Production1,2 Copper kt 43.3 31.4 137.9 131.7 Achieved 2024
Slide 5: Transformed Balance Sheet
TRANSFORMED BALANCE SHEET SIGNIFICANT FINANCIAL FLEXIBIILTY AND INDUSTRY-LEADING FINANCIAL POSITION SUBSTANTIAL DEBT REDUCTION IN 2024 5.0x Dec. 31 2022 Announced “3-P” 4.0x Deleveraging Initiative $83M $100M $62M 3.0x Buy Back of Senior Repayments Under Gold Prepay Facility 2.0x 3.8 Net Debt to Adj
Slide 6: Peru Operations Review
PERU OPERATIONS REVIEW STEADY OPERATING PERFORMANCE TO ACHIEVE 2024 PRODUCTION AND COST GUIDANCE SUMMARY OF PERU OPERATING STATISTICS Q4 production of 34kt Cu and 38k oz Au Q4 2024 Q3 2024 2024 2023 Benefit from high grades at Pampacancha Constancia ore mined (million tonnes)1 4.2 3.0 15.0 9.3 and a
Slide 7: Manitoba Operations Review
MANITOBA OPERATIONS REVIEW OUTPERFORMED 2024 GOLD PRODUCTION AND COST GUIDANCE; DELIVERED RECORD RESULTS SUMMARY OF SNOW LAKE OPERATING STATISTICS Lalor reached 1-million-ounce Q4 2024 Q3 2024 2024 2023 milestone in December 2024 Ore mined (kt) 422.5 411.3 1,626.9 1,526.7 Combined Ore milled (kt) 40
Slide 8: Snow Lake Cost Performance
SNOW LAKE COST PERFORMANCE IN 2024 SNOW LAKE WAS THE HIGHEST MARGIN GOLD MINE IN CANADA Higher Margin Large-scale (>150 koz) Canadian Gold Mines Lower Margin '24 All-In Sustaining Costs (US$/oz)1 $1,620 ~70% AISC margin at current gold prices $1,475 $1,500 $1,510 $1,370 $1,230 $1,239 $1,250 $1,222 $
Slide 9: British Columbia Operations Review
BRITISH COLUMBIA OPERATIONS REVIEW 2024 FOCUSED ON IMPLEMENTING STABILIZATION PLANS WITH 2025 FOCUSED ON MILL THROUGHPUT OPTIMIZATION SUMMARY OF COPPER MOUNTAIN OPERATING STATISTICS Continue to execute accelerated stripping program will enable access to higher head grades Q4 2024 Q3 2024 2024 20235
Slide 10: 2025 Production Guidance
2025 PRODUCTION GUIDANCE STEADY COPPER AND 2025 PRODUCTION GUIDANCE GOLD PRODUCTION Year Ended Contained Metal in Concentrate and Dore1 2025 Guidance 2024 Guidance Dec. 31, 2024 Consolidated Cu PERU production of 133,000 Copper tonnes 80,000 - 97,000 99,001 98,000 - 120,000 tonnes in 2025 remains Go
Slide 11: 2025 Cash Cost Guidance
2025 CASH COST GUIDANCE CONTINUED COST CONTROL DRIVING INDUSTRY-LEADING COST MARGINS 2025 consolidated cash costs of $0.80-$1.00/lb Continued focus on maintaining strong cost control across the business, driving industry-leading margins 2025 CASH COST GUIDANCE Year Ended Cash cost1 2025 Guidance 202
Slide 12: 2025 Capital Expenditures Guidance
2025 CAPITAL EXPENDITURES GUIDANCE 2025 CAPITAL EXPENDITURES & EXPLORATION GUIDANCE DISCIPLINED CAPITAL ALLOCATION Year Ended Capital Expenditures1 (in $ millions) 2025 Guidance5 2024 Guidance Dec. 31, 2024 2025 sustaining capital reflects SUSTAINING CAPITAL2 some deferrals from 2024 and Peru3 170.0
Slide 13: New Britannia Driving Higher Returns
NEW BRITANNIA DRIVING HIGHER RETURNS NEW BRITANNIA MILL REFURBISHMENT PROJECT DEMONSTRATES SUCCESSFUL CAPITAL ALLOCATION TO MAXIMIZE RISK ADJUSTED RETURNS Hudbay acquired New Britannia in 2015 for $12M as a potential gold processing solution for high-grade Lalor Au and Cu-Au ore, providing for addit
Slide 14: Copper World Project
COPPER WORLD PROJECT HIGHEST GRADE OPEN PIT COPPER PROJECT IN THE AMERICAS PFS HIGHLIGHTS ATTRACTIVE ECONOMICS AT CONSERVATIVE $3.75 CU PRICE ASSUMPTIONS $1.1B 19% 20 YEAR NPV8% IRR2 MINE LIFE $372M $1.3B AVG. ANNUAL INITIAL GROWTH EBITDA2 CAPEX2 LONG LIFE PRODUCTION Fully permitted project expected
Slide 15: U.S. Open Pit Copper Benchmarking
U.S. OPEN PIT COPPER BENCHMARKING WILL BE ONE OF THE LARGEST OPEN PIT COPPER MINES IN THE U.S. WITH THE LOWEST CASH COSTS ANNUAL PRODUCTION (KT CU) RESERVE GRADE (% CU) CASH COSTS (US$/LB CU) Morenci 261 Copper World 0.54% Copper World $1.53 Bingham Canyon 152 Ray 0.49% Robinson $2.16 Safford 111 Ch
Slide 16: Potential Sanctioning Decision
PRUDENTLY ADVANCING COPPER WORLD DISCIPLINED THREE PREREQUISITES (“3-P”) PLAN FOR SANCTIONING COPPER WORLD Completed Underway To Come In late 2022, Hudbay unveiled a Objective 2022 2023 2025 prudent financial plan with three 2024 2026 PLAN PERMITS key prerequisites to be achieved Updated ✓ MLRP ✓ Up
Slide 17: Growth Exploration Initiatives
GROWTH EXPLORATION INITIATIVES SEVERAL HIGH-PRIORITY INITIATIVES TO EXTEND MINE LIFE AND DISCOVER NEW DEPOSITS SNOW LAKE REGIONAL EXPLORATION 1901 EXPLORATION DRIFT Focused on near-mine extension at Lalor and the discovery of new 2024 underground deposits within trucking distance of processing inf
Slide 18: 2025 Key Objectives
2025 KEY OBJECTIVES IN 2025, HUDBAY INTENDS TO: 1. Deliver strong copper and gold production levels from diversified operating platform 2. Maintain strong operating cost performance, achieving industry-leading margins Always operate 3. Generate strong cash flow to enhance financial position for high
Slide 19: Questions
QUESTIONS 19