Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q2 2012 Earnings Presentation
16 slides from Hudbay Minerals's earnings presentation, Aug 15, 2012
Slide 1: Creating sustainable value through high quality, long-life deposits
Creating sustainable value through high quality, long-life deposits Q2 2012 Conference Call August 15, 2012 HBM
Slide 2: Forward Looking Information
F Forward d Looking L ki IInformation 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 pre
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: Q2 2012 Highlights
Q2 2012 Hi Highlights hli h > Operating mines performed within expectations > 2012 production and operating cost guidance remains unchanged > Achieved a number of significant growth milestones On track to meet production targets for 6th consecutive year Q2 2012 > 4
Slide 5: Milestones Achieved
Milestones Achieved Advancing development assets toward production Constancia • $1.5 billion project construction program underway • Financing strategy in place Lalor • First ore production began in early August • Main production shaft now 20% complete, project on time and on budget Reed • Site cons
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 Six Months Ended J 30 Jun J 30 Jun ($000s except per share amounts) 2012 2011 2012 2011 Revenue 189,858 246,823 376,896 424,168 1 Operating cash flow 66 138 66,138 61 826 61,826 108 383 1
Slide 7: Steady Production with Low Cash Costs
S d P Steady Production d i withihL Low C Cash hCCosts On track to meet annual guidance Three Months Ended Six Months Ended Guidance1 Contained metal in concentrate June 30, 2012 June 30, 2012 2012 Copper 1 tonnes 10,762 21,506 35-40,000 Refined Zinc 1 tonnes 20,457 42,124 70-85,000 Precious Metals
Slide 8: Lalor Project Well Underway
L l Proceeding Lalor P di W Wellll Begins initial production > $277 million spent to date; additional $91 million in commitments out of total project commitment of $704 million > Completed C l t d main i ventilation til ti shaft h ft sinking, i ki ore b being i h hoisted i t d tto surface f > Basic
Slide 9: Lalor First Production Begins
L l Lalor First Production Begins Surface 0m 500m 750m 810m H1/2012 H2/2012 840m level 835m level 910m level 955m level 985m level 1000m Q2 2012 > 9
Slide 10: Constancia Project Now Under Construction
C Constancia t i PProject j t Now Under Construction > Nine quarter $1.5 $1 5 billion construction program underway • $252 million of long-lead items secured under fixed price contracts • $91 million spent to June 30, 2012 > Initial production expected late 2014; full production PERU expected to beg
Slide 11: Constancia Exploration Potential
C Constancia t i EExploration l ti P Potential t ti l Early exploration success leads to expanded program
Slide 12: Reed Copper Project Progressing on Schedule
R dC Reed Copper P Project j t Progressing on Schedule > Site clearing and levelling for trench, portal and lay down storage area completed > Construction office trailer set set- up at site > Completed entire site it clearing l i and d new access road > First ore production d ti expected by Q4 2013
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 90 125 140 120 100 60 100 75 80 60 50 30 40 25 20 0 0 0 2012E 2015E 2012E 2015E 2012E 2015E 2 3 4 5 HudBay - Current Ops Lalor Co
Slide 14: Financing Strategy
Fi Financing i StStrategy t 1 Financing strategy supports construction of three growth projects: 1. • Constancia • Lalor • Reed 2. Streaming agreement benefits: • Access to non-dilutive capital • Represent small percentage of overall precious metals • Unlock value of precious metal production Consta
Slide 15: Trout Lake Mine Closes after 30+ Years
T t Lake Trout L k Mine Mi Closes Cl after ft 30+ 30 Y Years
Slide 16: Creating sustainable value through high quality, long-life deposits
Creating sustainable value through high quality, long-life deposits Q2 2012 Conference Call August 15, 2012 HBM