Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q1 2015 Earnings Presentation
19 slides from Hudbay Minerals's earnings presentation, May 8, 2015
Slide 1: Q1 2015 Presentation
Q1 2015 Presentation May 8, 2015 HBM Q1 2015 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, the failure to successfully re-negotiate the recentl
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: Transition to Low-Cost, High Quality Producer Completed
Transition to Low-Cost, High Quality Producer Completed Achieved commercial production at Constancia on April 30 Ocean shipments of Constancia copper concentrate began in April First Constancia concentrate vessel departing for China Constancia mine and concentrator operating at or above design capac
Slide 6: Improved Financial Results
Improved Financial Results Cash flow, net earnings and cash cost per pound of copper sold all benefited from increased year-over-year production at Lalor and Reed Results would have been stronger if we had sold 6,000 tonnes of copper in concentrate and 9,000 ounces of unstreamed gold that remained i
Slide 7: Strong Financial Capacity
Strong Financial Capacity Corporate revolving credit facility expanded to US$300 million Current liquidity and expected cash flows are sufficient to meet our needs in 2015 Liquidity 1 (C$ millions) Cash and cash equivalents 122 Available credit facilities 342 Total 464 1. Liquidity including cash ba
Slide 8: Constancia Update
Constancia Update ACHIEVED COMMERCIAL PRODUCTION Plant performing as designed and throughput has occasionally exceeded nameplate with peaks of over 90,000 tpd Copper recovery in April averaged just over 65%, in line with ramp up design and expectations Crushed ore from Constancia to be processed in
Slide 9: Constancia Update
Constancia Update RAMP UP IN LINE WITH EXPECTATIONS January and February impacted by normal commissioning issues at processing plant Plant operating at or above design capacity Tonnes of Ore Processed Daily Monthly Copper Grade (%) (Average) January 418,681 13,506 0.36 February 493,756 17,634 0.40 M
Slide 10: Constancia Update
Constancia Update FOCUS HAS SHIFTED TO RECOVERY Focus is on increasing copper recovery while maintaining throughput and concentrate quality Concentrate regrind circuit started recently Mining fleet performance approaching design Constancia mining fleet expectations; peak ore production rates of over
Slide 11: Recent Constancia Photos
Recent Constancia Photos Crushed ore to be processed at Constancia mill Constancia tailings thickener Constancia flotation cell Constancia Constancia mill observing mill observing EarthEarth Hour,Hour, MarchMarch 20152015 Q1 2015 Presentation 11
Slide 12: Manitoba Operations Review
Manitoba Operations Review Q1 2015 relative to Q1 2014: Ore processed was 14% higher due mainly to increased production at Lalor and Reed mines Copper grades were 18% higher partly as a result of increased production and higher copper head grades at Reed Grand opening for the Reed mine Processed zin
Slide 13: Manitoba Operations Review
Manitoba Operations Review 12% of employees on strike as of May 2; operations expected to continue under comprehensive contingency plan On May 4, closed transaction to acquire 100% interest in New Britannia mine and mill 777 headframe Potential for 4,700 tpd of combined milling capacity in Snow Lake
Slide 14: Lalor Exploration
Lalor Exploration PHASE 2 UNDERGROUND EXPLORATION PROGRAM TO COMMENCE Phase 1 - preliminary underground drilling supports surface drill results Lalor Plan View1 14 drill holes completed, totalling 4,537.6 metres Phase 2 - exploration ramp to be extended 400 m to north Test down plunge potential of g
Slide 15: 2015 Goals
2015 Goals HARVESTING RETURNS FROM NOW COMPLETED CAPITAL INVESTMENT Generate free cash flow from Constancia in H2 2015 Optimize production and cost performance at Manitoba operations Continue exploration program at Lalor copper-gold zone Advance permitting and technical work at Rosemont Q1 2015 Pres
Slide 16: Centennial of Flin Flon Ore Discovery
Centennial of Flin Flon Ore Discovery Q1 2015 Presentation 16
Slide 17: Lalor Copper-Gold Zone Exploration Results
Appendix LALOR COPPER-GOLD ZONE EXPLORATION RESULTS Hole Core Length2 From (m) To (m) Cu (%) Au (g/t) Ag (g/t) Zn (%) (m) LX0001 52.66 245.42 298.08 2.71 7.22 15.92 0.18 Includes 6.96 245.42 252.38 6.29 12.16 25.85 0.31 Includes 11.58 286.50 298.08 8.30 25.43 54.89 0.59 LX0002 34.55 231.00 265.55 9.
Slide 18: Lalor Copper-Gold Zone Exploration Results
Appendix LALOR COPPER-GOLD ZONE EXPLORATION RESULTS Collar Location Core Azimuth Dip Length Hole NAD83 Zone NAD83 Zone Distance Below Size (degrees) (degrees) (m) 14 East 14 North Surface (m) LX0001 426785 6081394 1022 NQ 8.9 -63 605.1 LX0002 426785 6081394 1022 NQ 8.9 -68 311.0 LX0003 426784 608139
Slide 19: Q1 2015 Presentation
Q1 2015 Presentation May 8, 2015 For more information contact: Jacqueline Allison Director, Investor Relations Tel: 416.814.4387 Email: jacqueline.allison@hudbayminerals.com HBM Q1 2015 Presentation