Slide 1: Q2 2015 Presentation
Q2 2015 Presentation July 30, 2015 HBM Q2 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, risks generally associated with the mining industry
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: Growth of Low-Cost Production on Track
Growth of Low-Cost Production on Track Constancia in commercial production since end of April; copper recoveries progressing steadily to design levels Cash costs driven down 37% y/y to US$1.29/lb as production of all metals increased substantially (Cu ↑270%, Au ↑37%, Ag ↑301% and Zn ↑9%) First Const
Slide 6: Improved Financial Results
Improved Financial Results Cash costs expected to continue to decrease with further production increases and declining input costs 2015 production and operating cost guidance maintained $000s except cash cost amounts Q2 2015 Q2 2014 Revenue 185,779 139,329 Operating cash flow1,2 20,661 11,764 Cash c
Slide 7: Strong Financial Capacity
Strong Financial Capacity Commitments in place to increase corporate revolving credit facility from US$300 million to US$400 million Sales of excess metals inventory and Peruvian value added tax refunds are expected to generate over $100 million of additional cash flows in H2 2015 Liquidity 1 (C$ mi
Slide 8: Constancia Update
Constancia Update Focus on optimization of mine costs and plant performance Improvement in recoveries - so far in July, average copper recovery ~75%, while maintaining throughput at ~80,000 tpd Constancia mine Combined unit operating costs during May and June within guidance range at US$9.22/tonne M
Slide 9: Manitoba Operations Review
Manitoba Operations Review Ore processed was 3% higher y/y due mainly to increase at Lalor, partly offset by decrease at 777 Combined unit operating costs increased by 25% y/y due to higher production at Snow Lake and lower production at 777 Loading ore for transportation from Reed to Flin Flon Oper
Slide 10: Lalor Exploration
Lalor Exploration PHASE 2 UNDERGROUND EXPLORATION PROGRAM UNDERWAY Lalor Cross-Section1 with Exploration Ramp, Looking West Phase 1 - preliminary underground drilling 0m supports surface drill results Production Assay results released for 7 Shaft remaining drill holes in 14-hole 4,500-metre program
Slide 11: 2015 Goals
2015 Goals HARVESTING RETURNS Generate free cash flow in the second half of 2015 Optimize production and cost performance at all operations Continue exploration program at Lalor copper-gold zone given successful Phase 1 program; increased production profile expected from Lalor Advance permitting and
Slide 12: Appendix: Lalor Copper-Gold Zone Remaining Exploration Results
Appendix LALOR COPPER-GOLD ZONE REMAINING EXPLORATION RESULTS Core Length2 Hole1 Cu-Au Zone From (m) To (m) Cu (%) Au (g/t) Ag (g/t) Zn (%) (m) LX0007 Hanging wall 7.20 127.80 135.00 1.47 5.95 8.11 0.07 LX0007 Main 26.53 159.22 185.75 4.04 11.30 27.53 0.41 LX0008 Main 0.52 175.96 176.48 0.43 1.34 5.
Slide 13: Appendix: Lalor Copper-Gold Zone Remaining Exploration Results
Appendix LALOR COPPER-GOLD ZONE REMAINING 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) LX0007 426782 6081349 1021 NQ 185.9 -68 227.4 LX0008 426783 6081349 1021 NQ 160.9 -66 230.4 LX0009
Slide 14: Q2 2015 Presentation
Q2 2015 Presentation July 30, 2015 For more information contact: Jacqueline Allison Director, Investor Relations Tel: 416.814.4387 Email: jacqueline.allison@hudbayminerals.com HBM Q2 2015 Presentation