Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q1 2012 Earnings Presentation
16 slides from Hudbay Minerals's earnings presentation, May 10, 2012
Slide 1: Creating Sustainable Value through High Quality Long Life Deposits
HBM Creating Sustainable Value through High Quality Long Life Deposits Q1 2012 Conference Call, May 10, 2012
Slide 2: Forward Looking Information
Forward Looking Information This presentation contains 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 press rel
Slide 3: Lalor Project Disclaimer
Lalor Project Disclaimer Hudbay's production decision with respect to Lalor was not based on the results of a pre-feasibility study or feasibility study of mineral resources demonstrating economic or technical viability, because significant portions of the deposit are not able to be classified as a
Slide 4: Q1 2012 Highlights
Q1 2012 Highlights • Solid quarterly operating results maintains confidence in ability to meet stated guidance • Earnings Per Share was $0.05, which included $0.06 per share in non-cash items • Ope Operating at g cash cas flow o increased c eased sslightly g ty 2012 MARKS BEGINNING OF TRANSFORMATION
Slide 5: Top Priorities
Top Priorities Ad Advancing i development d l t assets t toward t d production d ti • Lalor • Proceeding on track and on budget • First ore-production on schedule for mid-2012 • Basic engineering for concentrator well underway • Orders placed for surface crusher and sag and ball mills • Constancia •
Slide 6: Strong Financial Performance
Strong Financial Performance Di Driven b by steady t d production d ti andd costt control t l Three Months Ended Year Ended Mar 31 Dec 31 ($000s except per share amounts) 2012 2011 2011 2010 Revenue 187,038 177,345 890,817 781,032 Profit before tax 24,579 34,371 209,025 108,669 Profit from continuin
Slide 7: Steady Production with Low Cash Costs
Steady Production with Low Cash Costs O track On t k to t meett annuall guidance id Three Months Ended GUIDANCE(1) Mar. 31, 2012 2012 Copper 1 tonnes 10,744 35-40,000 Zinc 1 tonnes 21,677 70-85,000 Precious Metals (1,2) (1 2) troy oz. oz 26 797 26,797 85 105 000 85-105,000 Unit Operating Costs 777 $
Slide 8: Lalor Construction Advancing Well
Lalor Construction Advancing Well I iti l production Initial d ti remains i on ttargett and d expected t dbby mid-2012 id 2012 • Invested $245 million to date; additional $98 $98.5 5 million in commitments has been placed • Development work completed on 795, 810 and 825 levels • Ventilation shaft no
Slide 9: Lalor
Lalor N New C Cu-Au A mineralization i li ti di discovered d Surface 0m 500m Vent Raise Production Shaft 750m H1/2012 H2/2012 2013 - 2014 2015 Exploration Platform 1000m DUB-283 (Mar. 7, 2012) 6.12m 5.91 g/t Au, 31.6 g/t Ag, 8.26% Cu 1250m Base Metal Resource Gold & Copper-Gold Resource High Grade I
Slide 10: Constancia
Constancia A i i Anticipated d project j schedule h d l currently l remains i unchanged h d • Design work has brought about changes to previous project design: • Annual ore production capacity increase to 28.2 28 2 million tonnes per year • Expected increase in the in-pit reserve to incorporate more
Slide 11: Constancia Exploration Program
Constancia Exploration Program N New t target t anomalies li identified id tifi d ffor ttesting ti d during i 2012 d drill ill campaign i North Constancia Main 2012 Drill Target • 30,000 metre drill program planned, focused on expanding Pampacancha resource • Promising targets identified through geo
Slide 12: Reed Copper Project
Reed Copper Project C Construction t ti C Continues; ti T Trench hGGrouting ti P Program B Begins i • Site clearing and levelling for trench, portal and lay down storage area completed • Construction office trailer has been set up at site set-up • Completed entire site clearing and new access road •
Slide 13: Leading Production Growth
Leading Production Growth F Focus in i 2012 iis continued ti d progress off d development l t stage t assets t 255% GROWTH 135% GROWTH 65% GROWTH (1) C P Cu Production d ti P Precious i Metals M t l Production P d ti Z Production Zn P d ti (kt) (koz) (kt) HudBay - Current Ops (2) Lalor (3) Constanci
Slide 14: Delivering Leverage Through Reserve Growth
Delivering Leverage Through Reserve Growth Exploration E l ti success iincreased d allll categories t i off reserves and resources Cu equivalent (all metals) Au equivalent (000 tonnes) t ) (000 oz)) 2630 1687 68 1550 1921 932 1615 713 1083 1286 934 3071 3219 1457 3485 1121 2962 791 1153 (1,3) (2,3)
Slide 15: 2012 Exploration Priorities & Opportunities
2012 Exploration Priorities & Opportunities Manitoba • Surface exploration drill program at Lalor • Underground drilling at Lalor • $31 million allocated toward exploration efforts in Flin Flon Greenstone Belt Peru • 30,000 metre drill program planned • Two drills to resume at Pampacancha, which rem
Slide 16: Creating Sustainable Value through High Quality Long Life Deposits
HBM Creating Sustainable Value through High Quality Long Life Deposits Q1 2012 Conference Call, May 10, 2012