Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — BMO 2024 Global Metals, Mining & Critical Minerals Conference
75 slides from Hudbay Minerals's conference presentation, Feb 26, 2024
Slide 1: Investor Presentation February 2024
I N V E S T O R P R E S E N TAT I O N FEBRUARY 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 our people 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 $1.15 Revenue3 Reserves4 $0.83 $0.86 $0.80 169 $0.74 5% 3% 4% Consolidated Copper Cash 157 156 155 153 4% Production (000 tonnes) 2% 6% Consolidated Copper 150 kt 132 Costs (US$/lb) 99 104 Cu
Slide 5: Delivering Record Quarter
DELIVERING RECORD QUARTER DOUBLED PRODUCTION IN H2 2023 FROM H1 2023 LEVELS COPPER EQUIVALENT PRODUCTION BY REGION KEY RESULTS SUMMARY 80 71.3 78.0 Q4 2023 Q3 2023 2023 2022 (CuEq tonnes 000s) Production1, 2 60 45.4 Copper kt 45.5 42.0 131.7 104.2 38.6 37.5 Gold koz 112.8 101.4 310.4 219.7 40 Silver
Slide 6: Continued Financial Discipline
CONTINUED FINANCIAL DISCIPLINE DELIVERING HIGHER CASH FLOWS, SPENDING REDUCTIONS AND DELEVERAGING INITIATIVES Completed brownfield investment program that is $602M $274M $161M delivering meaningful copper and gold production Record Q4 revenue Record Q4 Q4 free cash flow1 growth and resulting in high
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Slide 8: Diversified Portfolio
DIVERSIFIED PORTFOLIO IN TIER 1 JURISDICTIONS COPPER MOUNTAIN MASON Operating Mine 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 Operat
Slide 9: Constancia
CONSTANCIA LONG LIFE, LOW-COST COPPER MINE IN PERU 15 YEARS Cu-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 $1.58 120 $1.50 100%-owned, Hudbay success
Slide 10: 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 PRODUCTION 2023A CASH COSTS PRODUCTION SNOW LAKE GOLD PRODUCTION PROFILE2 250 $900 Gold Cash Costs ($/oz) 187 175 -
Slide 11: Copper Mountain
COPPER MOUNTAIN LONG LIFE COPPER MINE ACQUIRED BY HUDBAY IN JUNE 2023 20 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 4
Slide 12: Copper Mountain Technical Report
COPPER MOUNTAIN TECHNICAL REPORT Reliable Operations Stabilization 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 remobilized up in 202
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Slide 14: Copper Market Outlook
COPPER MARKET OUTLOOK GROWING DEMAND FOR “GREEN” COPPER (Mt)1 Global De-carbonization and Transition to 35 Base Case Production Capability Probable Projects Renewable Energy Primary Demand 30 Electrification of Vehicles 25 ~6Mt p.a. Industrialization and Urban Development Supply Gap Deglobalization
Slide 15: Hudbay Attractive Copper Positioning
HUDBAY ATTRACTIVE COPPER POSITIONING SIGNIFICANT COPPER PRODUCTION AT FIRST QUARTILE CASH COSTS MEANINGFUL COPPER PRODUCTION LEADING LOW-COST PROFILE 2024E COPPER PRODUCTION1 2024E COPPER AISC2 349 203 162 96 61 53 51 32 31 LUN CS HBM SFR ERO ATYM TKO 29M NEXA Well-positioned versus peers with meani
Slide 16: Hudbay Leading Copper Exposure
HUDBAY LEADING COPPER EXPOSURE SUSTAINED GROWTH 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) Copper 40% Mountain 30% 20% 10% 0
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Slide 18: Hudbay Prudent Capital Allocation
HUDBAY 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
Slide 19: Copper Pipeline With Significant Growth
COPPER PIPELINE WITH SIGNIFICANT GROWTH PATHWAY TO 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 New Ingerbelle Constancia Pebble Rejection Constancia Norte 132 1
Slide 20: Gold Pipeline With Significant Growth
GOLD PIPELINE WITH SIGNIFICANT GROWTH STRONG GOLD PRODUCTION OFFERS COMPLEMENTARY CASH FLOWS WITH UPSIDE POTENTIAL Au Regional Lalor Exploration (koz) Satellite Deposit Extensions Snow Lake and Flin Flon Greenfield Exploration Lalor Down Dip Extension Tailings Reprocessing Cook Lake & Lalor Northwes
Slide 21: Copper World
COPPER WORLD HIGH-QUALITY COPPER DEVELOPMENT PROJECT 0.54% 85kt 20+ YEARS 2P RESERVE ANNUAL CU PRODUCTION1 MINE LIFE CU GRADE 1.2Bt $1.47/lb $1,100M / 19% M&I TONNAGE CU CASH COST1 NPV8% / IRR1 PHASE I FOOTPRINT REQUIRES STATE AND LOCAL PERMITS ONLY West Pit Peach-Elgin Pit Broadtop Butte Pit Enhanc
Slide 22: Copper World Phase I PFS Highlights
COPPER WORLD PHASE I PFS HIGHLIGHTS ENHANCED PROJECT ECONOMICS, SIMPLIFIED FLOWSHEET AND EXTENDED MINE LIFE TO 20 YEARS COPPER PRICE SENSITIVITY ($M) Annual Cu production of 92kt over the first 10 years at $1.53/lb cash costs and $1.95/lb sustaining cash costs. NPV 10% NPV 8% 2,006 1,710 Life-of-min
Slide 23: Copper World Positioning
COPPER WORLD POSITIONING ONE OF THE BEST UNDEVELOPED COPPER PROJECTS – CAPITAL LIGHT, LOW COMPLEXITY 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 of +65kpta. 23
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 ACTIVITES COMMENCED IN AUGUST 2022 AFTER SIGNING OF COMMUNITY AGREEMENT 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 h
Slide 26: Snow Lake Land Consolidation
SNOW LAKE LAND CONSOLIDATION 250% INCREASE IN SNOW LAKE LAND PACKAGE WITH OPPORTUNITY TO APPLY MODERN GEOPHYSICS 26
Slide 27: Lalor Exploration Potential
LALOR EXPLORATION POTENTIAL 1.7M OUNCES OF GOLD IN INFERRED RESOURCES AND NEAR-MINE EXTENSION POTENTIAL LALOR MINE LIFE EXTENSION LALOR DOWN PLUNGE DRILLING 0m 100m 250m 500m Winter 2024 drilling program Lalor Exhaust raise Northwest Shaft 6 drill rigs drilling completing follow up drilling from ini
Slide 28: Snow Lake Exploration Drill Program
SNOW LAKE EXPLORATION DRILL PROGRAM 2024 DRILLING PROGRAM TO FIND POTENTIAL ANCHOR DEPOSIT IN THE REGION 2024 GEOPHYSICS TESTING AND DRILLING PLAN VIEW OF LALOR & COOK LAKE CLAIMS • Largest geophysics program in Hudbay history in Manitoba with modern surface electromagnetic surveys • Large surface a
Slide 29: Mason Project
MASON PROJECT LARGE OPEN PIT COPPER PROJECT WITH 2.2Bt $1.76/lb 27 YEARS SIGNIFICANT LAND PACKAGE 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 31: Our Approach to Sustainability
OUR APPROACH TO SUSTAINABILITY MUTUAL RESPECT, TRUST AND CONTINUOUS DIALOGUE By living our values, we build strong relationships with our employees, host communities and governments, making us a better partner and a better company Our Values are: Dignity & Respect: Caring: We treat our stakeholders
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: Environment
ENVIRONMENT WE AIM TO DEVELOP, OPERATE AND CLOSE MINES IN A MANNER THAT DEMONSTRATES OUR COMMITMENT TO ENVIRONMENTAL STEWARDSHIP ↓50% lower absolute Scope 1 and Scope 2 Net Zero Scope 3 New Projects total emissions by 2050 emissions reporting to be introduced and acquisitions will be assessed agains
Slide 34: Emissions Reduction Roadmap to 2030
EMISSIONS REDUCTION ROADMAP TO 2030 MULTIPLE PATHWAYS TO ACHIEVE A 50% REDUCTION IN EMISSIONS BY 2030 GHG REDUCTION OPPORTUNITIES 300 Continued focus on operating efficiencies to reduce emissions intensity Evaluating existing and new technologies as they are advanced to become commercially available
Slide 35: 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 36: 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
Slide 37: Appendix
NDI APPE 37
Slide 38: 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 39: Board of Directors
BOARD OF DIRECTORS STEPHEN A. LANG PETER KUKIELSKI CAROL T. BANDUCCI CHAIR PRESIDENT & CEO DIRECTOR Stephen has over 40 years of experience Peter has more than 30 years of experience Carol was formerly the EVP & CFO of in the mining industry, including within the base & precious metals and bulk IAMG
Slide 40: Production Guidance
PRODUCTION GUIDANCE 2024 PRODUCTION GUIDANCE Year Ended Contained Metal in Concentrate and Dore1 2024 Guidance 2023 Guidance Dec. 31, 2023 PERU Copper tonnes 98,000 - 120,000 100,487 91,000 - 116,000 Gold ounces 76,000 - 93,000 114,218 83,000 - 108,000 Silver ounces 2,500,000 - 3,000,000 2,505,229 2
Slide 41: 2024 Cost Guidance
2024 COST GUIDANCE $30 MILLION LOWER DISCRETIONARY SPENDING IN 2023 CAPITAL EXPENDITURES1 ($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
Slide 42: 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 $250 million Callable starting in April 2023 Revolver Availability $324 million 4.5% due Callable starting in April 2024 Apr. 2026 Available Liqui
Slide 43: 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 43
Slide 44: Constancia Mine Plan
CONSTANCIA MINE PLAN 15-YEAR MINE PLAN BASED ON PROVEN AND PROBABLE RESERVES ONLY Updated mine plan for Constancia operations reflects higher copper and gold production from 2022 to 2025 as the higher grades from the Pampacancha deposit enter the mine plan 2029-2037 CONSTANCIA OPERATIONS 2021A 2022A
Slide 45: 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 46: Llaguen Project
LLAGUEN PROJECT COPPER PIPELINE PROJECT IN A FAVOURABLE LOCATION MINERAL RESOURCE ESTIMATE AS AT NOVEMBER 1, 2022 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
Slide 47: Peru Mineral Reserves
PERU MINERAL RESERVES (AS AT JANUARY 1, 2023) CATEGORY TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) CONSTANCIA Proven 411,200,000 0.28 79 0.041 2.85 Probable 46,500,000 0.23 79 0.038 2.84 TOTAL PROVEN AND PROBABLE 457,700,000 0.28 79 0.040 2.85 PAMPACANCHA Proven 34,100,000 0.59 153 0.320 4.98 Probable
Slide 48: Peru Mineral Resources
PERU MINERAL RESOURCES (AS AT JANUARY 1, 2023) CATEGORY TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) CONSTANCIA Measured 118,400,000 0.20 62 0.033 1.86 Indicated 140,700,000 0.23 73 0.040 2.20 Inferred – Open Pit 56,700,000 0.27 82 0.044 1.86 Inferred – Underground 6,500,000 1.20 69 0.137 8.62 PAMPACANC
Slide 49: Llaguen Mineral Resources
LLAGUEN MINERAL RESOURCES (AS AT JANUARY 1, 2023) PROPERTY CATEGORY TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) Indicated Global 271,000,000 0.33 218 0.033 2.04 (≥ 0.14% Cu) Llaguen Including Indicated High-grade 113,000,000 0.49 291 0.046 2.73 (≥ 0.30% Cu) Inferred Global 83,000,000 0.24 127 0.024 1.4
Slide 50: Manitoba Business Unit
MANITOBA BUSINESS UNIT New Britannia Gold Mill 1,650 tpd capacity MINE MILL Snow Lake TOWN RAIL Stall Base Metal Mill ROAD LALOR MINE 3,800 tpd capacity ~4,650 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 51: 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 2021A 2022A 2023A 2024 2025 2026 2027 LOM Avg. CONTAINED METAL IN CONCENTRATE AND DORÉ Au Produc
Slide 52: 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 53: Snow Lake Growth Over Time
SNOW LAKE GROWTH OVER TIME OVER 3.2M OUNCES OF GOLD HAS BEEN IDENTIFIED AS RESERVES / PRODUCED TO DATE +350% 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 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: Flin Flon Growth Opportunities
FLIN FLON GROWTH OPPORTUNITIES GROWTH POTENTIAL THROUGH EXPLORATION PARTNERSHIP AND TAILINGS REPROCESSING OPPORTUNITIES Exploration Partnership with Marubeni • In July, established a framework for a multi-year exploration partnership focused on the discovery of new deposits within trucking distance
Slide 56: Snow Lake Reserves & Resources
SNOW LAKE RESERVES & RESOURCES LALOR & 1901 (AS AT JANUARY 1, 2023) PROPERTY CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) Proven Lalor 5,977,000 2.5 5.17 0.42 28.7 Base Metal Zone 1901 1,278,000 2.2 8.14 0.30 27.4 Probable Lalor 522,000 2.6 4.59 0.36 30.3 1901 245,000 0.8 10.70 0.30 25.2 Total Ba
Slide 57: Snow Lake Reserves & Resources Other Gold
SNOW LAKE RESERVES & RESOURCES OTHER GOLD (AS AT JANUARY 1, 2023) PROPERTY CATEGORY TONNES Au (g/t) Zn (%) Cu (%) WIM Probable 2,450,000 1.6 0.25 1.63 3 Zone Probable 660,000 4.2 - - TOTAL WIM + 3 ZONE PROBABLE (GOLD) 3,110,000 2.2 2.20 1.28 Birch Inferred 570,000 4.4 - - New Britannia Inferred 2,75
Slide 58: Snow Lake Reserves & Resources Other Base Metals
SNOW LAKE RESERVES & RESOURCES OTHER BASE METALS (AS AT JANUARY 1, 2023) PROPERTY CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) PEN II Indicated 470,000 0.3 8.89 0.49 6.8 Talbot1 Indicated 2,190,000 2.1 1.79 2.33 36.0 TOTAL INDICATED (BASE METALS) 2,660,000 1.8 3.04 2.01 30.9 Watts River Inferred
Slide 59: 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 59
Slide 60: 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 2025 2026 20
Slide 61: 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 Improve mine efficiency Sustained improvements in mill throughput 45,000 tonnes per day and expansion to permitted
Slide 62: BC Mineral Reserve and Resource Estimates
BC MINERAL RESERVE AND RESOURCE ESTIMATES (AS AT DECEMBER 5, 2023) CuEq Grade CATEGORY TONNES Cu (%) Au (g/t) Ag (g/t) (%) RESERVES Proven 195,037,000 0.27 0.12 0.78 0.35 Probable 171,943,000 0.22 0.11 0.59 0.30 TOTAL PROVEN AND PROBABLE 366,980,000 0.25 0.12 0.69 0.33 RESOURCES Measured 41,198,000
Slide 63: Arizona Business Unit
ARIZONA BUSINESS UNIT MINE TOWN RAIL ROAD Miami Pinto Valley Phoenix Resolution ARIZONA, US Ray Morenci Florence Safford Cactus Silver Bell Tucson Phoenix Gunnison Tucson Mission Sierrita COPPER WORLD COPPER WORLD Maps are not to scale Taylor 0 25km 50km Appendix: ARIZONA 63
Slide 64: Copper World
COPPER WORLD SUCCESSFUL EXECUTION OF ALTERNATIVE STRATEGY TWO-PHASED MINE PLAN Discovered New Mineralization on Patented Mining Claims Image sourced from 2022 PEA • Initiated a drill program in 2020 and subsequently expanded throughout 2021 with encouraging results. • Discovered oxide and sulfide mi
Slide 65: 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 66: 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 67: Copper World Positioning
COPPER WORLD POSITIONING HIGHEST GRADE COPPER MINE VERSUS COMPARABLE PROJECTS 0.54% 0.44% 0.40% 0.39% 0.39% 0.38% 0.36% 2P Reserve Grade (% Cu)1 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-
Slide 68: Prudent Approach to Greenfield Project Development
PRUDENT APPROACH TO GREENFIELD PROJECT DEVELOPMENT DISCIPLINED THREE PREREQUISITES (“3-P”) PLAN FOR SANCTIONING COPPER WORLD PERMITS Receipt of all state level permits required for Phase 1 PRUDENT FINANCING STRATEGY Joint Venture Partner Committed minority JV partner Stream Partner Renegotiated prec
Slide 69: 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 70: 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. Cash costs of $1.47/lb and sustaining cash cost Valuation Metrics (Unlevered)1 Units Phase 1 of $1.81/lb. Net present value @ 8% (after-tax) $ millions $1,100 Avg. annual E
Slide 71: Copper World Phase I
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 71
Slide 72: Copper World Mineral Reserve & Resource Estimates
COPPER WORLD MINERAL RESERVE & RESOURCE ESTIMATES (AS AT JULY 1, 2023) Soluble Cu CATEGORY TONNES (M) Cu (%) Mo (g/t) Au (g/t) Ag (g/t) Grade (%) Proven reserves 319 0.54 0.11 110 0.03 5.7 Probable reserves 66 0.52 0.14 96 0.02 4.3 Total proven and probable reserves 385 0.54 0.12 108 0.02 5.4 Measur
Slide 73: 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 74: Mason Mineral Resources
MASON MINERAL RESOURCES (AS AT JANUARY 1, 2023) PROPERTY CATEGORY 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 MASON MEASURED AND INDICATED 2,219,000,000 0.29 67 0.029 0.63 Mason Inferred 237,000,000 0.24 78 0
Slide 75: 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
Hudbay Minerals — BMO 2024 Global Metals, Mining & Critical Minerals Conference on 6ix