Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q3 2016 Earnings Presentation
11 slides from Hudbay Minerals's earnings presentation, Nov 3, 2016
Slide 1: Q3 2016 Presentation
Q3 2016 PRESENTATION | NOVEMBER 3, 2016 HBM
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: 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, risks generally associated with the mining industry
Slide 4: Q3 2016 Summary
Q3 2016 Summary RECORD CU-EQ. PRODUCTION1 Key Results Summary Q3 2016 Q2 2016 Continued increase in production of all Production2 metals quarter-over-quarter, with notable Copper kt 45.9 45.9 19% increase in zinc production Zinc kt 31.6 26.5 Precious metals3 koz 44.8 43.9 Steady low cash cost of $0.
Slide 5: 2016 Production and Cost Guidance
2016 Production and Cost Guidance TRACKING WELL AGAINST FULL YEAR GUIDANCE Sustaining capital spending expected to be ~10% lower than 2016 guidance 9 Months Ended 2016 Full Year Sep. 30, 2016 Guidance1 Peru2 Copper tonnes 99,446 110,000 – 130,000 Precious metals3 ounces 50,342 50,000 – 65,000 Combin
Slide 6: Liquidity Position
Liquidity Position Total liquidity includes cash and cash equivalents of $118 million, after semi-annual bond interest payment at end of Q3 Continued reduction in net debt to $1.1 billion As at Sep. 30, 2016 As at Jun. 30, 2016 $ million $ million Cash and cash equivalents $118 $142 Availability und
Slide 7: Peru Operations Review
Peru Operations Review Mined and milled tonnage higher than Q2 Peru Summary Operating Statistics Q3 2016 Q2 2016 Constancia plant performance optimization Ore mined (million tonnes) 6.9 6.5 remains primary focus Ore milled (million tonnes) 6.9 6.7 Improved copper recovery to 83.6% in Q3 Copper grade
Slide 8: Manitoba Operations Review
Manitoba Operations Review Total ore milled was consistent with Q2 but Manitoba Summary Operating Statistics zinc and precious metals grades were Q3 2016 Q2 2016 significantly higher Ore mined (kt) 692 730 Ore milled (kt) 723 723 Higher zinc and precious metals production Copper grade milled 1.58% 1
Slide 9: 2016 Objectives
2016 Objectives Strengthen liquidity position by identifying cost savings and deferring debt repayments Arrange more flexible financial covenants on credit facilities Achieve capital and operating cost efficiencies to maximize free cash flow Deliver low-cost production growth in copper, zinc a
Slide 10: Uniquely Positioned
Uniquely Positioned Downside protection with low-cost assets in low-risk jurisdictions Strong leverage to eventual copper price recovery with growing zinc exposure Best-in-class growth potential Lalor gold Pampacancha Rosemont Organic growth through exploration Well-positioned for a volatile
Slide 11: Q3 2016 Presentation
Q3 2016 PRESENTATION | NOVEMBER 3, 2016 HBM