Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Investor Presentation (June 2024)
79 slides from Hudbay Minerals's investor presentation, June 2024
Slide 1: Investor Presentation June 2024
INVESTOR PRESENTATION JUNE 2024
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: Our Purpose
OUR PURPOSE H' DBAY We about ourpeople our our planet Hudbay provides the metals the world needs. We work sustainably, transform lives and create better Futures For communities.
Slide 4: Diversified Mid-Tier Copper Producer
DIVERSIFIED MID-TIER COPPER PRODUCER ANNUAL COPPER PRODUCTION & CASH COSTS1,2 REVENUE AND RESERVES BY METAL + Copper $1.15 World (92kt) Revenue3 Reserves4 $0.86 4% 5% 2% 4% Consolidated Copper Cash $0.80 157 168 Production (000 tonnes) $0.74 6% 152 151 153 2% Consolidated Copper 150 kt 132 Costs (US
Slide 5: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE DELIVERED ANOTHER CONSECUTIVE QUARTER OF STRONG OPERATING, FINANCIAL AND DELVERAGING RESULTS 2024 PRODUCTION AND COST GUIDANCE AFFIRMED KEY RESULTS SUMMARY Q1 2024 Q4 2023 Q1 2023 $214M 35kt $0.16/lb Production1, 2 Q1 Adj. EBITDA2 Q1 Cu production Q1 Cash Cost Copper kt
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Slide 7: Diversified Portfolio in Tier 1 Jurisdictions
DIVERSIFIED PORTFOLIO IN TIER 1 JURISDICTIONS COPPER MOUNTAIN MASON Operating Mine PEA Development Project +20 year mine life +27 year mine life Open pit Open pit ~45kt annual Cu production 112kt annual Cu production British Columbia, Canada Cu Au Ag Nevada, USA Cu Mo Au Ag SNOW LAKE COPPER WORLD Op
Slide 8: Constancia
CONSTANCIA LONG LIFE, LOW-COST COPPER MINE IN PERU 18 YEARS Cu-Au-Mo 90k tpd MINE LIFE PORPHYRY DEPOSIT NAMEPLATE MILL CAPACITY 100kt 114koz $1.07/lb 2023A 2023A 2023A CU PRODUCTION AU PRODUCTION CASH COSTS CONSTANCIA COPPER PRODUCTION PROFILE1 $1.75 140 $1.54 $1.58 100%-owned, low cost, long life c
Slide 9: Snow Lake
SNOW LAKE LOW-COST GOLD OPERATION WITH MEANINGFUL BASE METAL PRODUCTION 15 YEARS Au-Zn-Cu 5.3k tpd MINE LIFE1 VMS DEPOSITS NAMEPLATE MILL CAPACITY 187koz 35kt $727/oz 2023A AU 2023A ZN 2023A PRODUCTION PRODUCTION CASH COSTS SNOW LAKE GOLD PRODUCTION PROFILE2 250 200 187 170-200 170-200 170-200 100%-
Slide 10: Copper Mountain
COPPER MOUNTAIN LONG LIFE COPPER MINE WITH OPTIONALITY 21 YEARS Cu-Au-Ag 45k tpd MINE LIFE PORPHYRY NAMEPLATE MILL DEPOSIT CAPACITY 47kt 35koz $1.89/lb 2024-2028E AVG. 2024-2028E AVG. 2024-2028E AVG. CU PRODUCTION1 AU PRODUCTION1 CASH COSTS1 COPPER MOUNTAIN PRODUCTION PROFILE2 60 56 49 50 50 75%-own
Slide 11: Copper Mountain Stabilization
COPPER MOUNTAIN STABILIZATION ON TRACK TO ACHIEVE OPERATING EFFICIENCIES TO DRIVE SUSTAINABLE LONG-TERM VALUE MINE PRODUCTIVITY MILL THROUGHPUT Quarterly Total Material Moved (Mt) Avg. Daily Mill Throughput (tpd) 20 2024 Target 25Mt 40,000 2024 Target 41.1k tpd 15 35,000 10 19.0 30,000 15.8 34,814 3
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Slide 13: Robust Copper Market Outlook
ROBUST COPPER MARKET OUTLOOK STRONG LONG-TERM COPPER MARKET FUNDAMENTALS WITH SIGNIFICANT SHORTAGE OF SUPPLY Declining Copper Grades GLOBAL COPPER SUPPLY AND DEMAND No Significant Projects Sanctioned in Past 3-Years 35 (Mt)1 Base Case Production Capability Probable Projects Primary Demand Protracted
Slide 14: Attractive Copper Positioning
ATTRACTIVE COPPER POSITIONING SIGNIFICANT COPPER PRODUCTION AT FIRST QUARTILE CASH COSTS MEANINGFUL COPPER PRODUCTION LEADING LOW-COST PROFILE 2024E COPPER PRODUCTION1 2024E COPPER AISC2 400 +$75M increase in cash flow and EBITDA for +$25M increase in cash flow and EBITDA for 350 every $0.25/lb chan
Slide 15: Prudent Capital Allocation
PRUDENT CAPITAL ALLOCATION ACQUISITION OF COPPER MOUNTAIN AT A LOWER CAPITAL INTENSITY THAN RECENT MINE BUILDS AND COPPER WORLD REPRESENTS THE NEXT GENERATION OF LOW CAPITAL COPPER DEVELOPMENT Low Capital Project Recent Mine Build Buy High Capital $39,148 $38,158 Capital Intensity ($/tonne Cu)1,2 $2
Slide 16: Hudbay Leading Copper Exposure
HUDBAY LEADING COPPER EXPOSURE SUSTAINED GROWTH IN COPPER RESOURCES PER SHARE DRIVES INDUSTRY LEADING COPPER PRICE OPTIONALITY SIGNIFICANT GROWTH IN COPPER RESOURCES PER SHARE1 HIGHEST COPPER NAV SENSITIVITY VERSUS PEERS2 (NAV SENSITIVITY TO 10% CHANGE IN COPPER PRICE) 50% +11% CAGR and +$189% growt
Slide 17: Copper World Project
COPPER WORLD PROJECT TIER 1 COPPER DEVELOPMENT PROJECT IN THE AMERICAS 1.2Bt 0.54% $1.3B 20+ YEARS M&I TONNAGE 2P RESERVE INITIAL GROWTH MINE LIFE CU GRADE CAPEX1 85kt $1.47/lb $372M $1,100M / 19% ANNUAL CU CU CASH COST1 AVG. ANNUAL NPV8% / IRR1 PRODUCTION` EBITDA1 PHASE I FOOTPRINT REQUIRES STATE A
Slide 18: Copper World Project
COPPER WORLD PROJECT HIGHEST GRADE OPEN PIT COPPER PROJECT IN THE AMERICAS 0.54% 2P Reserve Grade (% Cu)1 0.44% 0.40% 0.39% 0.39% 0.38% 0.36% 0.30% 0.28% 0.17% Copper Taca Taca NuevaUnion Filo del Sol El Arco Zafranal Vizcachitas Josemaria Yellowhead Casino World (Oxides) Country Rating AA+ CCC- A+
Slide 19: 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 2022 2023 2024 2025 Objective prudent financial plan with three ✓ ✓ PERMITS PLAN key prerequisites to be achieved Definitive feasibili
Slide 20: Mason Project
MASON PROJECT LARGE OPEN PIT COPPER PROJECT WITH SIGNIFICANT LAND PACKAGE 2.2Bt $1.76/lb 27 YEARS M&I TONNAGE CU SUSTAINING CASH COST MINE LIFE 0.29% 112kt $1,191M / 18% M&I CU GRADE ANNUAL CU PRODUCTION NPV / IRR 1 MASON ECONOMICS1 After-Tax NPV10% (US$M) Unlevered IRR (%) $2,019 23% 18% $1,191 15%
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Slide 22: Copper Pipeline with Significant Growth
COPPER PIPELINE WITH SIGNIFICANT GROWTH GOAL OF ACHIEVING A TRIPLING OF COPPER PRODUCTION BY 2030 Cu Mason (kt) Maria Reyna / Kusiorcco Llaguen Copper World Phase II Copper World Phase I Constancia Phase 10 Maria Reyna SW Caballito Constancia Norte Constancia Continuous Improvement New Ingerbelle &
Slide 23: Gold Pipeline with Significant Growth
GOLD PIPELINE WITH SIGNIFICANT GROWTH STRONG GOLD PRODUCTION OFFERS COMPLEMENTARY CASH FLOWS WITH UPSIDE POTENTIAL Regional Lalor Exploration Au Satellite Deposit Extensions (koz) Snow Lake and Flin Flon Greenfield Exploration Lalor Near Mine Extension Tailings Reprocessing Cook Lake & Talbot New Br
Slide 24: Constancia Exploration Potential
CONSTANCIA EXPLORATION POTENTIAL SEVERAL OPPORTUNITIES EXIST ON HUDBAY’S EXTENSIVE LAND PACKAGE IN PERU CONSTANCIA SATELLITE EXPLORATION TARGETS Maria Reyna Constancia & Caballito Pampacancha 3.3Mt Cu Leviatan Constancia DELINEATED TO-DATE 1.0Mt Cu MINED TO-DATE PERU Pampacancha Lima Tintaya Paquita
Slide 25: Constancia Priority Satellite Targets
CONSTANCIA PRIORITY SATELLITE TARGETS EXPLORATION PERMITTING ACTIVITIES WELL UNDERWAY MARIA REYNA CABALLITO Artisanal mining activity focused on high grade magnetite skarn bodies and Mitsui mined high-grade copper at Caballito until the early 1990s; hand samples hydrothermal breccia. collected in th
Slide 26: Lalor Near Mine Exploration
LALOR NEAR MINE EXPLORATION 2M OZ OF GOLD RESERVES AND 1.5M OZ OF GOLD INFERRED RESOURCES WITH FURTHER EXTENSION POTENTIAL LALOR MINE LIFE EXTENSION LALOR NEAR MINE 0m 100m 250m 500m Lalor Northwest Exhaust raise 2024 drilling Shaft Lalor deep 2024 drilling 835mL 910mL 955mL 985mL Shaft bottom LEGEN
Slide 27: 2024 Snow Lake Exploration Program
2024 SNOW LAKE EXPLORATION PROGRAM LARGEST SNOW LAKE EXPLORATION PROGRAM IN COMPANY’S HISTORY PLAN VIEW OF LALOR & COOK LAKE CLAIMS MODERN GEOPHYSICS PROGRAM Largest geophysics program in Hudbay’s history in Snow Lake using modern technology. Lalor was a geophysical discovery in 2007. MULTI-PHASED D
Slide 28: Snow Lake Geophysics Program
SNOW LAKE GEOPHYSICS PROGRAM LARGE 2024 GEOPHYSICS PROGRAM TO TEST NEWLY ACQUIRED LAND PACKAGE WITH MODERN TECHNOLOGY Increased Snow Lake land package by 250% in 2023. 2024 will be largest geophysics program in Hudbay’s history in Snow Lake. Surface EM surveys using modern technology to target depth
Slide 29: Flin Flon Growth Opportunities
FLIN FLON GROWTH OPPORTUNITIES GROWTH POTENTIAL THROUGH TAILINGS REPROCESSING OPPORTUNITY AND EXPLORATION PARTNERSHIP MILL TAILINGS REPROCESSING Opportunity to reprocess Flin Flon tailings where more than 100Mt of tailings have been deposited over 90 years. Potential for additional metal production
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Slide 31: Commitment to Sustainability
COMMITMENT TO SUSTAINABILITY REDUCING CARBON FOOTPRINT WATER AND BIODIVERSITY STEWARDSHIP Operations are well-positioned in the lower Restoring ecosystems by progressively rehabilitating half of the global GHG emissions curve for affected areas copper mines Committed to conserving Pursuing improveme
Slide 32: Social Impact & Our People
SOCIAL IMPACT & OUR PEOPLE EMBRACING DIVERSITY AND PROVIDING A HEALTHY & SAFE WORKPLACE • Constancia’s “Hatun Warmi” program expands opportunities for women in mining • All operations are required to be certified to ISO 45001, an internationally accepted standard for occupational health and safety m
Slide 33: Environmental Stewardship
ENVIRONMENTAL STEWARDSHIP DEVELOPING, OPERATING AND RECLAIMING MINES IN A MANNER THAT DEMONSTRATES OUR COMMITMENT TO ENVIRONMENTAL STEWARDSHIP ↓50% Net Zero New Projects lower absolute Scope 1 and Scope 2 total emissions by 2050 and acquisitions will be assessed against emissions from existing opera
Slide 34: Emissions Reduction Roadmap
EMISSIONS REDUCTION ROADMAP MULTIPLE PATHWAYS TO ACHIEVE A 50% REDUCTION IN EMISSIONS BY 20301 GHG REDUCTION OPPORTUNITIES PROGRESS TOWARDS ACHIEVING GHG TARGETS 300 Signed 10-year 100% renewable power supply Grid decarbonization agreement for Constancia starting in 2026 Commissioned electric sh
Slide 35: Investment
T & STMEN INVE 35
Slide 36: Hudbay Investment Thesis
HUDBAY INVESTMENT THESIS STRONG OPERATING PLATFORM Reducing net debt to 1.2x EBITDA with multiple assets in tier-1 mining jurisdictions delivering through significant free cash flow growth significant near-term production and free cash flow growth LEADING COPPER EXPOSURE 150,000 tonne annual copper
Slide 37: 2024 Key Objectives
2024 KEY OBJECTIVES IN 2024, HUDBAY INTENDS TO: 1. Enhance position to deliver leading copper growth pipeline through copper production growth and maintaining strong gold production from diversified platform with strong cash flow generation in 2024 Always operate 2. Execute stabilization plan at Cop
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Boe % 38
Slide 39: World-Class Management Team
WORLD-CLASS MANAGEMENT TEAM PETER KUKIELSKI EUGENE LEI ANDRE LAUZON PRESIDENT & CEO CFO COO More than 30 years of sector experience in Over 20 years of global mining investment Over 30 years of experience, holding base metals, precious metals and bulk banking, finance and corporate development leade
Slide 40: Board of Directors
BOARD OF DIRECTORS STEPHEN A. LANG PETER KUKIELSKI CHAIR PRESIDENT & CEO Stephen has over 40 years of experience Peter has more than 30 years of experience in the mining industry, including within the base & precious metals and bulk engineering, development and materials sectors, having overseen pro
Slide 41: Production Guidance
PRODUCTION GUIDANCE 3-YEAR PRODUCTION OUTLOOK Contained Metal in Concentrate and Dore1 2024 Guidance 2025 Guidance 2026 Guidance PERU Copper tonnes 98,000 - 120,000 94,000 - 115,000 80,000 - 100,000 Gold ounces 76,000 - 93,000 70,000 - 90,000 15,000 - 25,000 Silver ounces 2,500,000 - 3,000,000 2,700
Slide 42: 2024 Cost Guidance
2024 COST GUIDANCE CAPITAL EXPENDITURES1 ($M) EXPLORATION EXPENDITURES5 ($M) SUSTAINING CAPITAL2 2024 Guidance 2023 Actuals 2024 Guidance 2023 Actuals Peru3 130 132 Peru 17 15 Manitoba 23 10 Manitoba 55 56 British Columbia 2 4 British Columbia 105 30 Arizona and other 1 2 Total sustaining capital 29
Slide 43: Ample Liquidity & Long-Dated Debt Profile
AMPLE LIQUIDITY & LONG-DATED DEBT PROFILE PRUDENT BALANCE SHEET MANAGEMENT LONG-TERM DEBT STRUCTURE PROVIDES SIGNIFICANT FLEXIBILITY Cash and Equivalents $671 million1 Callable starting in April 2023 Revolver Availability $335 million 4.5% due Callable starting in April 2024 Apr. 2026 Available Liqu
Slide 44: Hudbay Deleveraging Performance
HUDBAY DELEVERAGING PERFORMANCE SIGNIFICANT DELEVERAGING SINCE 2022 TO POSITION AS ONE OF THE LOWEST LEVERAGE VS. PEERS 4.0x Year End 2022 3.0x 2.0x 4.3 Net Debt to Adj. EBITDA1 1.0x 1.7 2.0 1.4 0.9 0.5 - Lundin Ero Sandfire Capstone First Quantum Hudbay Taseko Continued deleveraging positions Hudba
Slide 45: South America Business Unit
SOUTH AMERICA BUSINESS UNIT Cusco CUSCO MINE TOWN Las Bambas RAIL ROAD CONSTANCIA PERU Yauri LLAGUEN Trujillo Tintaya Antapaccay Lima AREQUIPA Imata CONSTANCIA Arequipa Cerro Verde MOQUEGUA & Matarani 0 100km Appendix: PERU TACNA 45
Slide 46: Constancia Mine Plan
CONSTANCIA MINE PLAN 18-YEAR MINE PLAN BASED ON PROVEN AND PROBABLE RESERVES ONLY Updated mine plan for Constancia operations reflects higher copper and gold production into 2025 with the higher grades from the Pampacancha deposit and extended mine life to 2041 with the conversion of mineral resourc
Slide 47: Maria Reyna Historical Drill Results
MARIA REYNA HISTORICAL DRILL RESULTS A summary of the historical drill results from Maria Reyna is contained in the table below, however a qualified person has not independently verified this historical data or the quality assurance and quality control program that was applied during the execution o
Slide 48: Llaguen Project
LLAGUEN PROJECT COPPER PIPELINE PROJECT IN A FAVOURABLE LOCATION MINERAL RESOURCE ESTIMATE AS AT JANUARY 1, 2024 Metric Cu Mo Au Ag CuEq Category Tonnes (%) (g/t) (g/t) (g/t) (%) Indicated Global (>= 0.14% Cu) 271,000,000 0.33 218 0.033 2.04 0.42 Including Indicated High-grade 113,000,000 0.49 261 0
Slide 49: Manitoba Business Unit
MANITOBA BUSINESS UNIT New Britannia Gold Mill 1,800 tpd capacity MINE MILL Snow Lake TOWN RAIL Stall Base Metal Mill ROAD LALOR MINE 3,800 tpd capacity ~4,500 tpd LALOR 0 5km MANITOBA SASKATCHEWAN Winnipeg Snow Lake LALOR MINE Flin Flon Flin Flon Base Metal Mill* care & maintenance (6,000 tpd capac
Slide 50: Snow Lake Mine Plan
SNOW LAKE MINE PLAN 15-YEAR MINE PLAN BASED ON PROVEN AND PROBABLE RESERVES ONLY Mine plan optimizes processing capacity in Snow Lake to maximize the NPV of the operations. 2028-2037 SNOW LAKE OPERATIONS1 2022A 2023A 2024 2025 2026 2027 Avg. CONTAINED METAL IN CONCENTRATE AND DORÉ Au Production (000
Slide 51: Snow Lake Process – 2024
SNOW LAKE PROCESS – 2024 Lalor Lalor Crushed Crushed Ore Ore Stall Mill New Britannia Mill Grinding Grinding Flotation Flotation Tails to Tails Cyanide Zn Concentrate Cu Concentrate Anderson TIA or Leaching/CIP Destruction Dewatering Dewatering Lalor Paste Plant Process Electrowinning Tails to Stall
Slide 52: Snow Lake Growth Over Time
SNOW LAKE GROWTH OVER TIME OVER 3.0M OUNCES OF GOLD HAS BEEN IDENTIFIED AS RESERVES / PRODUCED TO DATE +250% INCREASE IN IDENTIFIED RESERVES / PRODUCED GOLD FROM INITIAL RESERVE ESTIMATE 7% increase Reserves 32% increase from 9% increase from resource Inferred Produced to-date inclusion of satellite
Slide 53: 1901 Development & Exploration Drift
1901 DEVELOPMENT & EXPLORATION DRIFT ADVANCING ACCESS TO THE 1901 DEPOSIT FOR EXPLORATION AND FUTURE MINE DEVELOPMENT The 1901 deposit was discovered in 2019 and is located within 1,000 metres of the Lalor underground ramp, benefiting from the proximity of existing infrastructure. Further drilling,
Slide 54: Flin Flon Closure Cost Plan
FLIN FLON CLOSURE COST PLAN 75% OF CLOSURE AND RECLAMATION COSTS ARE TO BE INCURRED AFTER 2037 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2122 $23M in tailings stability $13M in demolition costs between the close of Flin Flon and 203
Slide 55: British Columbia Business Unit
BRITISH COLUMBIA BUSINESS UNIT MINE TOWN Kamloops ROAD NEW AFTON MINE HIGHLAND VALLEY COPPER MINE Kelowna COPPER MOUNTAIN Princeton COPPER MOUNTAIN Vancouver MINE 0 20km Appendix: BRITISH COLUMBIA 55
Slide 56: Copper Mountain Mine Plan
COPPER MOUNTAIN MINE PLAN 21-YEAR MINE PLAN BASED ON PROVEN AND PROBABLE RESERVES ONLY Updated mine plan for Copper Mountain operations reflects mine stabilization plan advancements and increased mine productivity. 2024-2028 2029-2033 2034-2038 2039-2043 COPPER MOUNTAIN OPERATIONS 20245 20255 20265
Slide 57: Copper Mountain Technical Report
COPPER MOUNTAIN TECHNICAL REPORT Steady-state Operations Stabilization & Optimization Plans 21 years 45k tpd Improving reliability and driving sustainable long-term value: 1. Increased mining activities Mine Life Nameplate mill capacity Fleet ramp-up plan to remobilize idle haul trucks, 28 trucks re
Slide 58: Copper Mountain Performance Improvement
COPPER MOUNTAIN PERFORMANCE IMPROVEMENT Accelerated stripping activities To help mitigate the impacts of previous substantially reduced stripping Enable access to higher-grade ore Steady state level Improve mine efficiency Sustained improvements in mill throughput 45,000 tonnes per day and exp
Slide 59: Arizona Business Unit
ARIZONA BUSINESS UNIT MINE TOWN RAIL ROAD Miami Pinto Valley Phoenix Resolution Ray ARIZONA, US Morenci Florence Cactus Safford Santa Cruz Silver Bell Tucson Phoenix Gunnison Tucson Mission Sierrita COPPER WORLD COPPER WORLD Maps are not to scale Taylor 0 25km 50km Appendix: ARIZONA 59
Slide 60: Copper World 2023 PFS
COPPER WORLD 2023 PFS SIMPLIFIED PROJECT DESIGN Simplified mine plan consists of four open pits and is now optimized solely on the flotation of both copper sulfides and oxides. Simplified processing flow sheet includes conventional sulfide flotation concentrator with copper concentrate as final prod
Slide 61: Copper World Phase I PFS
COPPER WORLD PHASE I PFS ENHANCED PROJECT ECONOMICS, SIMPLIFIED FLOWSHEET AND EXTENDED MINE LIFE TO 20 YEARS Annual Cu production of 92kt over the first 10 years at $1.53/lb COPPER PRICE SENSITIVITY ($M) cash costs and $1.95/lb sustaining cash costs. NPV 10% NPV 8% 2,006 1,710 Life-of-mine Cu produc
Slide 62: Copper World Positioning
COPPER WORLD POSITIONING ONE OF THE BEST UNDEVELOPED COPPER PROJECTS – HIGH GRADE, CAPITAL LIGHT, LOW COMPLEXITY Appendix: ARIZONA Source: Company public filings Note: Peer set comprised of greenfield, open pit, porphyry projects with reserves located in the Americas, with LOM average Cu production
Slide 63: Copper World Funding Requirement
COPPER WORLD FUNDING REQUIREMENT JOINT VENTURE REDUCES HUDBAY’S FUNDING REQUIREMENT AND ENHANCES RETURNS IRR: ~19% $230 Corresponding Illustrative IRR (%) Funding Requirement ($M) & $350 IRR: ~25% $1,323 $743 IRR: +35% $250 - $350 $250 Phase I Capex Less: WPM Stream Less: Project Financing Funding R
Slide 64: GHG Emissions
DESIGNED TO REDUCE ENERGY CONSUMPTION AND GHG EMISSIONS MADE IN AMERICA” COPPER CATHODE TO SUPPORT DOMESTIC U.S. COPPER CONSUMPTION ↓10% ↓14% lower energy consumption, reduction in total scope including 30% decline related 1, 2 & 3 GHG emissions to downstream processing • Copper World copper cathode
Slide 65: Copper World Optimization & Upside
COPPER WORLD OPTIMIZATION & UPSIDE MANY OPPORTUNITIES TO FURTHER INCREASE PRODUCTION, EXTEND MINE LIFE AND REDUCE ENVIRONMENTAL IMPACTS Mine Life Extension Potential • There remains ~60% of total copper contained in measured and indicated mineral resources excluding PFS reserves, providing significa
Slide 66: Copper World Robust Economics
COPPER WORLD ROBUST ECONOMICS SUMMARY OF KEY METRICS Phase I - 20 year mine life (at $3.75/lb Cu) • Cu production avg. 85 kt p.a. Valuation Metrics (Unlevered)1 Units Phase I • Cash costs of $1.47/lb and sustaining Net present value @ 8% (after-tax) $ millions $1,100 cash cost of $1.81/lb. Net prese
Slide 67: Copper World Phase I Production Profile
COPPER WORLD PHASE I PRODUCTION PROFILE Phase I Average Annual Production: 85kt Cu Cash Costs: $1.47/lb Cu Sustaining Cash Costs: $1.81/lb Cu Appendix: ARIZONA For further information please refer to Hudbay’s news release dated September 8, 2023, announcing the PFS results. Tonnes shown are metric t
Slide 68: Nevada – Mason Project
NEVADA – MASON PROJECT TOWN Road HUDBAY MINERAL CLAIMS HUDBAY PRIVATE LAND CLAIMS Power Plant POWER LINE RAIL MINE / DEPOSIT Lyon County Douglas County NEVADA MacArthur Reno Yerington Blue Hill Mine (Historic) MASON PROJECT MASON Yerington Mason Las Vegas Pumpkin Hollow Mason Valley Mines (Historic)
Slide 69: Peru Mineral Reserves
PERU MINERAL RESERVES (AS AT JANUARY 1, 2024) MINERAL RESERVE ESTIMATES1,2,3,4,5 TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) CONSTANCIA Proven 465,600,000 0.260 78 0.038 2.63 Probable 61,600,000 0.212 64 0.034 2.24 CONSTANCIA – TOTAL PROVEN AND PROBABLE 527,200,000 0.254 76 0.037 2.59 PAMPACANCHA Prove
Slide 70: Peru Mineral Resources
PERU MINERAL RESOURCES (AS AT JANUARY 1, 2024) MINERAL RESOURCE ESTIMATES1,2,3,4,5 TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) CONSTANCIA Measured 78,400,000 0.213 74 0.039 2.20 Indicated 93,100,000 0.224 90 0.040 1.98 Inferred – Open Pit 29,700,000 0.233 68 0.056 2.58 Inferred – Underground 6,500,000
Slide 71: Snow Lake Reserves – Lalor Mine & 1901 Deposit
SNOW LAKE RESERVES – LALOR MINE & 1901 DEPOSIT (AS AT JANUARY 1, 2024) MINERAL RESERVE CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) ESTIMATES1,2,3,4,5,6,7,8 Gold Zone Reserves Proven Lalor 3,263,000 5.5 0.73 0.59 29.6 1901 102,000 2.8 1.33 1.00 19.2 Probable Lalor 3,678,000 4.5 0.37 1.22 22.1 190
Slide 72: Snow Lake Resources – Lalor Mine & 1901 Deposit
SNOW LAKE RESOURCES – LALOR MINE & 1901 DEPOSIT (AS AT JANUARY 1, 2024) MINERAL RESOURCE CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) ESTIMATES1,2,3,4,5,6,7,8 Gold Zone Resources Inferred Lalor 2,979,000 4.3 0.24 1.68 25.7 1901 1,605,000 5.4 0.30 0.84 16.5 Total Inferred – Gold 4,584,000 4.7 0.26
Slide 73: Snow Lake Reserves & Resources – Other Gold
SNOW LAKE RESERVES & RESOURCES – OTHER GOLD (AS AT JANUARY 1, 2024) GOLD MINERAL RESERVE AND RESOURCE CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) ESTIMATES1,2,3,4,5,6,7 Probable Reserves WIM Probable 2,450,000 1.6 0.25 1.63 6.3 3 Zone Probable 660,000 4.2 - - - TOTAL PROBABLE (GOLD) 3,110,000 2.
Slide 74: Snow Lake Reserves & Resources – Other Base Metals
SNOW LAKE RESERVES & RESOURCES – OTHER BASE METALS (AS AT JANUARY 1, 2024) BASE METAL MINERAL RESERVE AND RESOURCE CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) ESTIMATES1,2,3,4,5,6,7 Indicated Resources PEN II Indicated 470,000 0.3 8.89 0.49 6.8 Talbot* Indicated 2,190,000 2.1 1.79 2.33 36.0 TOTA
Slide 75: BC Mineral Reserve and Resource Estimates
BC MINERAL RESERVE AND RESOURCE ESTIMATES (AS AT JANUARY 1, 2024) CuEq Grade MINERAL RESERVE AND RESOURCE ESTIMATES1,2,3,4,5,6 TONNES Cu (%) Au (g/t) Ag (g/t) (%) RESERVES Proven 195,000,000 0.27 0.12 0.8 0.35 Probable 172,000,000 0.22 0.11 0.6 0.30 TOTAL PROVEN AND PROBABLE 367,000,000 0.25 0.12 0.
Slide 76: Copper World Mineral Reserve & Resource Estimates
COPPER WORLD MINERAL RESERVE & RESOURCE ESTIMATES (AS AT JANUARY 1, 2024) Soluble Cu MINERAL RESERVE AND RESOURCE ESTIMATES1,2,3,4,5,6 TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) Grade (%) RESERVES Proven reserves 319,400,000 0.54 0.11 110 0.03 5.7 Probable reserves 65,700,000 0.52 0.14 96 0.02 4.3 Tot
Slide 77: Llaguen Mineral Resources
LLAGUEN MINERAL RESOURCES (AS AT JANUARY 1, 2024) MINERAL RESOURCE ESTIMATES1,2,3,4,5,6 TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) CuEq (%) Indicated Global 271,000,000 0.33 218 0.033 2.04 0.42 (≥ 0.14% Cu) Including Indicated High-grade 113,000,000 0.49 291 0.046 2.73 0.60 (≥ 0.30% Cu) Inferred Globa
Slide 78: Mason Mineral Resources
MASON MINERAL RESOURCES (AS AT JANUARY 1, 2024) MINERAL RESOURCE ESTIMATES1,2,3,4,5 TONNES Cu (%) Mo (g/t) Au(g/t) Ag (g/t) Measured 1,417,000,000 0.29 59 0.031 0.66 Mason Indicated 801,000,000 0.30 80 0.025 0.57 TOTAL MEASURED AND INDICATED 2,219,000,000 0.29 67 0.029 0.63 Mason Inferred 237,000,00
Slide 79: Additional Information
ADDITIONAL INFORMATION The reserve and resource estimates included in this presentation were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resourc