Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q3 2010 Earnings Presentation
19 slides from Hudbay Minerals's earnings presentation, November 2010
Slide 1: Q3 2010 Presentation
Q3 2010 Presentation November 2010
Slide 2: Forward Looking Information
Forward Looking Information This presentation contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes but is not limited to information concerning the company’s ability to develop its Lalor project and 777 North expansion, the abi
Slide 3: Lalor Project Disclaimer
Lalor Project Disclaimer HudBay's production decision with respect to Lalor was not based on the results of a pre-feasibility study or feasibility study of mineral resources demonstrating economic or technical viability, because significant portions of the deposit are not able to be classified as a
Slide 4: Operating Highlights - Production
Operating Highlights - Production Three months ended Nine months ended 2010 September 30 September 30 Guidance 2010 2009 2010 2009 Zinc tonnes 18,091 20,728 58,194 57,484 75-90,000 Copper tonnes 14,913 13,286 38,753 37,182 45-55,000 Gold troy oz. 23,789 25,886 64,801 69,852 85-100,000 Silver troy oz
Slide 5: Strong Financial Results
Strong Financial Results Three months ended Nine months ended September 30 September 30 ($000s except per share amounts) 2010 2009 2010 2009 Revenue 163,367 194,608 595,538 554,049 Net earnings 11,660 19,975 48,492 105,432 EBITDA1,2 55,465 59,201 208,495 103,310 Operating cash flow1,3 39,825 48,214
Slide 6: Strong Financial Position
Strong Financial Position Pro-forma at September 30 2010 Available Liquidity1 $1.2 billion Long Term Debt 0 Shares Outstanding 149.1 million Annualized Dividend Yield2 1.2% 1Includes cash and new $300 million credit facility 2As at market close on November 2, 2010 Self-funding for The Lalor Project
Slide 7: Metal Production
Metal Production Strong Projected Zinc Growth1 Strong Projected Precious Metals Growth2 Zinc metal production from domestic sources Payable gold equivalent production 140 200 Nearly 50% 100% 120 150 100 80 100 60 40 50 20 0 0 2010 2011 2012 2013 2014 2015 2016 2010 2011 2012 2013 2014 2015 2016 1 Zi
Slide 8: Full Commitment to Lalor Development
Full Commitment to Lalor Development (100% Owned) Shaft Development Shaft construction Full production via shaft Ramp Development Construction of ramp Initial production via ramp Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2009 2010 2011 2012 2013 2014 2015 • Access ra
Slide 9: Lalor Development
Lalor Development 500m Vent Raises Looking N70oW 0m 250m Production Early Shaft Ram Production p fr o 10 m Ch Gold Exploration isel Platform h 750m 11 Ric Zn 31 30 20 24 h 21 Ric Au 1000m 25 Au Cu- 26 27 40 1250m Cu- Au Proposed Development z on e Base Metal Resource Gold Inferred Resource DUB-270 G
Slide 10: 777 North Expansion
777 North Expansion • Initiating development of 777 North (100% owned) • $20 million approved by Board • Driving ramp from surface to the 440 metre level to access mineral resources of 550,000 tonnes grading: • 1.5 g/t gold; • 22.5 g/t silver; • 1.0% copper; 3.6% zinc. • Provides an additional egres
Slide 11: HudBay Gold Inventory
HudBay Gold Inventory Tonnes Au Ag Contained Au (millions) (g/t) (g/t) Equivalent (oz)1 Reserves 14.5 2.0 27.5 1,153,744 (Proven and Probable)2 Measured & Indicated 25.1 1.6 22.6 1,604,527 Resources3,4 Inferred Resources2,3,4 13.8 2.7 28.2 1,402,188 Conceptual Estimates3 6.9 – 8.3 4.7 – 5.6 21.7 – 2
Slide 12: The Back Forty Project – Summary
The Back Forty Project – Summary • Joint venture with rights to earn up to a 75% interest • Advanced exploration-stage VMS zinc deposit with gold credits Oct. 15, 2010 Resource Table: • New intersections illustrate Combined Open Pit & Underground tremendous geological upside M&I Inferred of the proj
Slide 13: Back 40 Project LK-479
Back 40 Project • Updated mineral resource, including approx. 1 million ounces of contained gold • Significant drill hole intersections down-plunge of the known resource • Formed exploration alliance with Aquila Resources to seek out new deposits in the region LK-479 Looking North 13
Slide 14: Flin Flon Greenstone Belt
Flin Flon Greenstone Belt Cold Lake/Lost Lake Deposits Lalor Trout Lake Mine Deposit Snow Lake Snow Ore Concentrator Lake 777 Mine Flin Flon Chisel North Mine Reed Flin Flon Lake Amisk Ore Concentrator Hwy #39 Lake Zinc plant Reed Lake Deposit Hwy N N #10 25 km 14
Slide 15: Leveraging Opportunities in the Greenstone Belt
Leveraging Opportunities in the Greenstone Belt • Drilling at Reed Lake to advance to development stage • Ongoing exploration on Halo’s Lost and Cold Properties Optimizing Northern Manitoba 15
Slide 16: Focused Acquisition Strategy
Focused Acquisition Strategy • Invested $30 million in Augusta Resource Corporation • Invested $3.4 million in MacDonald Mines Exploration • Formed strategic exploration alliance with Aquila Resources to seek out and identify targets • Investments allow HudBay to gain toe-holds in promising camps wi
Slide 17: Near Term Milestones
Near Term Milestones Cold and Lost Lake Updated resource Back Forty estimate expected by Expanded drilling Q1-2011 Reed Lake program, preliminary economic assessment NI 43-101 resource and permitting estimate in early commencing in 2011 2011; production Lalor and JV Properties decision to follow Exp
Slide 18: Investment Highlights
Investment Highlights 1 Production Growth • Expected 100% increase in gold production, 50% increase in zinc production over five years as Lalor is put into production • Further production upside at Lalor, Reed Lake and Back Forty 2 Consistent Performance from Existing Low Risk Operations • Strong EB
Slide 19: Strength to Build the Future
Q3 2010 Presentation November 2010 Strength to Build the Future