Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q3 2012 Earnings Presentation
16 slides from Hudbay Minerals's earnings presentation, Nov 2, 2012
Slide 1: Creating sustainable value through high quality, long-life deposits
Creating sustainable value through high quality, long-life deposits Q3 2012 Conference Call November 2, 2012 HBM
Slide 2: Forward-looking Information
F Forward-looking d l ki Information I f ti 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 pr
Slide 3: Note to U.S. Investors
N t tto U Note U.S. S IInvestors t Information concerning Hudbay’s mineral properties has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements of SEC Industry Guide 7. Under Securities and Exchange Commission (the “SEC
Slide 4: Q3 2012 Highlights
Q3 2012 Hi Highlights hli ht > Steady cash flow generation from underlying business > Production growth plans accelerated with three mines under construction > 2012 production and operating cost guidance remains unchanged On track to meet production p targets for 6th consecutive year Q3 2012 > 4
Slide 5: Project Highlights
P j t Highlights Project Hi hli ht Advancing development assets toward production Lalor • Firstt ore production Fi d ti b began iin early l AAugustt • Hoisted 29,839 tonnes of high-grade zinc ore to date Reed • Completed portal trench excavation • First production by Q4 2013 remains on track Constan
Slide 6: Reliable Cash Flow Generation
R li bl C Reliable Cash h Fl Flow G Generation i Driven by steady production and cost control Three Months Ended Nine Months Ended S t 30 Sept. S t 30 Sept. ($000s except per share amounts) 2012 2011 2012 2011 Revenue 144,659 212,335 521,555 636,503 Profit before tax 4 960 4,960 37 473 37,473 28 814
Slide 7: Steady Production with Low Operating Costs
S d P Steady Production d i withihL Low O Operating i C Costs On track to meet annual guidance Three Months Ended Nine Months Ended Guidance1 Contained metal in concentrate September 30, 2012 September 30, 2012 2012 Copper 1 tonnes 9,920 31,426 35-40,000 Refined Zinc 1 tonnes 20,371 62,495 70-85,000
Slide 8: Lalor On Track
L l On Lalor O Track T k 1st full year of production via production shaft expected in 2015 > $305 million spent to September 30, 2012; additional $76 million in commitments out of total project budget of $704 million > Underground mobile equipment delivered; fleet being commissioned > Chisel North w
Slide 9: Lalor
L l Lalor Surface 0m Production shaft Vent raise 325m 3 5 / current cu e t sshaft a t dept depth 500m 750m H1/2012 H2/2012 2013 - 2014 2015 Exploration platform 1000m 1500m Base Metal Resource Gold & Copper-Gold Resource Looking 0m 250m High Grade Intercepts N70oW Applying 360° Expertise PAGE>29 Q3
Slide 10: Constancia Project
C Constancia t i PProject j t Construction underway > Nine quarter US$1.5 US$1 5 billion construction program underway • US$154 million spent to September 30, 2012 • Entered into additional US$322 million in commitments PERU Trujillo > Project milestones achieved prior to board approval Lima • Front
Slide 11: Constancia Exploration Success
C Constancia t i EExploration l ti S Success Exploration program yields mineralization outside known reserve > Expand Pampacancha resource • Two drills focused on infill and step-out drilling • Mineralization demonstrated to the west of known resource > Chilloroya Chill S th South • One drill tested
Slide 12: Reed Progressing Well
R dP Reed Progressing i W Wellll Portal trench excavation completed MANITOBA > $16 million spent to Sept. 30, 2012 > Entered into additional $13 million in commitments Reed > Significant project milestones achieved: • Installation of new office and dry complex Winnipeg • Foundations poured for shop
Slide 13: Key Metals Growth
K M Key Metals t l Growth G th 420% GROWTH 125% GROWTH 1 35% GROWTH Cu Production Precious Metals Production Zn Production (kt) (koz) (kt) 200 220 120 200 175 180 150 160 90 140 125 120 60 100 100 80 75 60 30 50 40 25 20 0 0 0 2012E 2015E 2012E 2015E 2012E 2015E Hudbay - Current Ops 2 Lalor 3 Consta
Slide 14: Strong Balance Sheet
St Strong Balance B l Sheet Sh t As at September 30, 30 2012 Sources Uses > Cash and cash equivalents - $1,499 million > Lalor - $399 million > Remaining stream agreement payments > Reed - $56 million - $250 million > Constancia - $1.39 billion > Existing Credit facility - $235 million Total Sources
Slide 15: Thank You
Th k You Thank Y Chisel Chi l N North th Q3 2012 > 15 Q3 2012 > 15
Slide 16: Creating sustainable value through high quality, long-life deposits
Creating sustainable value through high quality, long-life deposits Q3 2012 Conference Call November 2, 2012 HBM