Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — RBC Global Mining & Materials Conference 2019
74 slides from Hudbay Minerals's conference presentation, Jun 5, 2019
Slide 1: Investor Presentation June 2019
INVESTOR PRESENTATION June 2019
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: Hudbay Investment Rationale
HUDBAY INVESTMENT RATIONALE Consistent long-term growth strategy and world-class asset base Proven track record of successful project development Operational excellence and value creation through successful exploration Focused on free cash flow generation and prudent capital allocation Robust projec
Slide 4: Consistent Strategy Since 2010
CONSISTENT STRATEGY SINCE 2010 VISION STATEMENT Our vision is to become a top-tier operator of long-life, low cost mines in the Americas VALUE DRIVERS STRATEGIC CRITERIA 4
Slide 5: Diversified Mid-Tier Copper Producer
DIVERSIFIED MID-TIER COPPER PRODUCER Constancia & Exploration Peru Lalor, 777 & Exploration Manitoba, Canada TSX, NYSE, BVL Symbol HBM Exploration British Columbia, Canada Rosemont Market Capitalization1 C$1.8 billion Arizona, USA Ann Mason Shares Outstanding 261 million Nevada, USA Exploration Chil
Slide 6: Industry Leader in Responsible Mining
INDUSTRY LEADER IN RESPONSIBLE MINING Consistently recognized for strong community engagement in Peru and productive local working relationships Operating in Manitoba for 90+ years 1st Place Award for Community Relations Founded in Flin Flon, Hudbay has discovered, Third Community Relations Internat
Slide 7: Long Life & Low Cash Costs
LONG LIFE & LOW CASH COSTS Long life assets provide exposure to multiple commodity price cycles Hudbay is positioned in the first quartile of the cash cost curve RESERVE AND RESOURCE LIFE1 Past Production Reserve Life M&I Resource Life 2 Inferred Resource Life 3 4 Rosemont 19 11 1 Constancia -4 17 6
Slide 8: Copper Focus
COPPER FOCUS SIGNIFICANT STRUCTURAL COPPER MARKET DEFICITS Emerging copper market deficits are expected to occur imminently and continue for the next 5-7 years Base case mine production peaks in 2022 according to Wood Mackenzie; however, supply forecast dependent on future projects with associated r
Slide 9: Meaningful Scale & Growth
MEANINGFUL SCALE & GROWTH Hudbay is one of the top investible1 pure play2 copper producers, offering investors relevant scale and meaningful production growth 2019E GLOBAL COPPER PRODUCTION (Mt) 1.2Mt 0.8 0.6 0.4 0.2 0.0 Freeport First Quantum KAZ Minerals Lundin Hudbay Oz Minerals Capstone Taseko E
Slide 10: Returns & Leverage to Copper
RETURNS & LEVERAGE TO COPPER Hudbay has consistently provided investors with leverage to the copper price and has met or outperformed the peer median in rising copper price environments TSR – HUDBAY, COPPER & PEER GROUP1 PEER LEVERAGE TO COPPER PRICE (2016- 2019 YTD2 2019YTD, R2 of Monthly Returns)
Slide 11: Recent Achievements
RECENT ACHIEVEMENTS OPERATIONAL AND GROWTH INITIATIVES ✓ Utilized technology and process improvements to drive additional efficiencies in OPERATIONAL our operations ✓ Consolidated copper production exceeded 2018 guidance by 14% , zinc and precious metals were within 2018 guidance ranges 1 ✓ In 2018,
Slide 12: Growing Free Cash Flow & Reducing Debt
GROWING FREE CASH FLOW & REDUCING DEBT Achieved 2016 cost reduction target of over $100 million; continued to generate positive free cash flow through un-hedged production and stable low-cost operations Reduced net debt position by over $700 million since 2016 OPERATING AND FREE CASH FLOW1 NET DEBT2
Slide 13: South America Business Unit
SOUTH AMERICA BUSINESS UNIT Cusco CUSCO Las Bambas CONSTANCIA Yauri Tintaya Antapaccay AREQUIPA Imata PERU Arequipa Lima Cerro Verde MINE MOQUEGUA TOWN RAILROAD CONSTANCIA Matarani ROAD 0 TACNA 100km 13
Slide 14: Best in Class Mine Development
BEST IN CLASS MINE DEVELOPMENT Constancia’s capital cost performance was best in-class compared to other greenfield open pit copper mines in the Americas and the same leadership team will develop Rosemont into an operating mine LEADING CAPITAL COST CONTROL VS. COMPARABLE RAMP-UP RECOGNIZED AS BEST I
Slide 15: Industry Leading Cost Performance
INDUSTRY LEADING COST PERFORMANCE Constancia is the lowest cost sulphide copper mine in South America Continuous operational improvements at Constancia have driven costs down, while increasing efficiencies and productivity LOWEST COST OPEN PIT COPPER MINES IN SOUTH AMERICA (2018) $20.00 $18.24 $18.0
Slide 16: Constancia Optimization
CONSTANCIA OPTIMIZATION BENEFITS OF CONTINUOUS IMPROVEMENT INITIATIVES Increasing throughput and quarterly trend in copper recoveries Stable copper production with low cash cost and sustaining cash costs Lowest cost sulphide open pit copper mine in South America THROUGHPUT1 COPPER RECOVERIES 100 Thr
Slide 17: Constancia Regional Potential
CONSTANCIA REGIONAL POTENTIAL We work with all levels of government and local communities to develop stable operations and to maximize the impact of our social investment in our area of influence and beyond Since 2012, executed over 90 social agreements with local governments and communities Pleased
Slide 18: Manitoba Business Unit
MANITOBA BUSINESS UNIT New Britannia Mill Snow Lake Stall Mill LALOR MINE LALOR MINE Stall Mill 0 5km SASKATCHEWAN MANITOBA Snow Lake LALOR MINE 777 LALOR 777 MINE MINE Flin Flon MILL Flin Flon Mill TOWN RAILROAD Winnipeg ROAD 0 50km 18
Slide 19: Lalor In-House Discovery & Development
LALOR IN-HOUSE DISCOVERY & DEVELOPMENT 2007 2009 2012-2014 2015 DISCOVERY DEVELOPMENT INITIAL PRODUCTION NEW BRITANNIA MILL Initial discovery hole Construction commenced Phase 1 completed in 2012; Acquired the nearby New drilled on Phase 1 ramp access Phase 2 completed in 2014 Britannia mill for ~$1
Slide 20: Lalor Mine Life Extension
LALOR MINE LIFE EXTENSION LALOR RESOURCE CONVERSION POTENTIAL Proven and probable (“2P”) mine plan provides 10 year mine life 2P + inferred inventory provides option to extend mine life while keeping both mills full 20
Slide 21: Lalor Updated Mine Plan Highlights
LALOR UPDATED MINE PLAN HIGHLIGHTS NEW BRITANNIA MILL THE OPTIMAL PROCESSING SOLUTION FOR LALOR GOLD Gold recoveries increased to 93% at New Britannia from 53% at Stall INCREASED LALOR RESERVES ACROSS ALL METALS Gold reserve grade increased by over 1.0 g/t (+44%) with higher tonnage1 In-situ contain
Slide 22: Lalor Gold Positioning
LALOR GOLD POSITIONING Lalor becomes a meaningful gold producer as one of the lowest cost gold mines in Canada 697 GOLD PRODUCTION1 (K OZ) 621 376 344 342 276 259 249 240 227 205 180 171 163 152 141 126 121 111 106 96 91 77 72 49 20 Meadowbank Canadian Brucejack Eleonore Macassa Timmins Holt Complex
Slide 23: Snow Lake Regional Potential
SNOW LAKE REGIONAL POTENTIAL HUDBAY HAS A LARGE PROSPECTIVE LAND PACKAGE IN THE SNOW LAKE BELT WITH SIGNIFICANT GOLD EXPLORATION POTENTIAL Proven + Probable Reserves Grade Contained Tonnage Copper Gold Silver Zinc Gold Eq(1) Gold Gold Eq(1) (Mt) (%) (g/t) (g/t) (%) (g/t) (koz) (koz) Lalor - Base Met
Slide 24: Snow Lake Regional Potential
SNOW LAKE REGIONAL POTENTIAL There are considerable resources beyond reserves in Snow Lake that could provide long-term feed for New Britannia and Stall RESERVES AND RESOURCES IN THE SNOW LAKE CAMP (M TONNES AND M OZS) 2P Reserves Indicated Inferred Other Resource Upside Potential Base Metal 1901 Zo
Slide 25: Manitoba Exploration Success
MANITOBA EXPLORATION SUCCESS Hudbay has a long history of delivering additional tonnage beyond the initial reserves in the Flin Flon and Snow Lake VMS camps RESERVES IN THE FLIN FLON AND SNOW LAKE CAMP (MILLION TONNES) Flin Flon 62.5 Mt 777 Trout Lake Lalor Stall Lake Chisel U/G Callinan Chisel Osbo
Slide 26: Discovery of 1901 Deposit
DISCOVERY OF 1901 DEPOSIT CONTINUING TO ADD VALUE THROUGH EXPLORATION Discovery of a new deposit with high-grade Chisel deep zinc in continuity with high-grade copper EM plates and gold intersections Located between the old Chisel North mine and Lalor at a depth of less than 600m below surface and w
Slide 27: Arizona Business Unit
ARIZONA BUSINESS UNIT Tucson Three Points Mission Complex Twin Buttes Mine Sierrita Mine ROSEMONT Green Valley ARIZONA, US PIMA SANTA CRUZ Sonoita MINE Tucson TOWN Patagonia RAILROAD ROSEMONT ROAD 0 25km 27
Slide 28: Rosemont Project
ROSEMONT PROJECT High-quality development project with well-established Location Tucson, Arizona infrastructure March 2017 43-101 demonstrates robust project economics Copper-molybdenum Type of deposit skarn deposit 19 year mine life generating 15.5% after-tax unlevered project IRR at $3.00/lb Cu Pr
Slide 29: Rosemont Positioning
ROSEMONT POSITIONING COPPER PRODUCTION AND EBITDA1 ROSEMONT ECONOMICS1 Hudbay Rosemont $2,000 After-Tax NPV8% (US$M) Unlevered IRR (%) 40% 400 Copper Production (kt) EBITDA (US$M) 1500 $1,448 $1,500 30% 300 282 $1,000+ $1,115 21.2% 1000 18.5% $1,000 20% $769 15.5% 127 $500+ 200 155 $538 $500 10% 500
Slide 30: Rosemont Initial Capex & Funding
ROSEMONT INITIAL CAPEX & FUNDING HUDBAY IS WELL POSITIONED TO FUND ROSEMONT 3-year construction period; $144 million in year 1, $861 million in year 2, $768 million in year 3, remaining capital in ramp-up period ~5% growth and 15% contingency added per item ROSEMONT INITIAL CAPITAL COST ($M) BREAKDO
Slide 31: Rosemont Project Milestones
ROSEMONT PROJECT MILESTONES Granted seven permits for Rosemont since Hudbay’s acquisition of the project, including the Final Record of Decision issued by the U.S. Forest Service and the Section 404 Water Permit by the Army Corps of Engineers Subsequently received the Mine Plan of Operations, comple
Slide 32: Adding Value Through Exploration
ADDING VALUE THROUGH EXPLORATION WIM, Pen II & CONSTANCIA (2009-2019)1 Caballito, Kusiorcco LALOR (2010-2019)1 New Britannia & Maria Reyna Production Reserves Production Reserves Copper Equivalent (Mt) Copper Equivalent (Mt) 4.0 1.0 3.0 0.8 2.0 0.5 1.0 0.3 0.0 0.0 Reserve at Bid Date 2 Production to
Slide 33: Exploration Focus
EXPLORATION FOCUS Hudbay significantly increased its owned or optioned mineral properties in the last few years CANADA PERU LAND LAND PROPERTY OWNERSHIP SURFACE PROPERTY OWNERSHIP SURFACE (HA) (HA) MANITOBA / SASKATCHEWAN Pinco 100% Owned 10,600 Goose Lake 100% Owned 397,242 Maria Reyna Optioned 5,8
Slide 34: Project Pipeline
PROJECT PIPELINE Hudbay has built a diversified portfolio of operating mines and an extensive development pipeline through robust exploration and disciplined M&A to perpetuate production growth Production Constancia Lalor 777 Acquired 2011 Discovered 2007 Original Asset Upon Developed 2012 Developed
Slide 35: Near-Term Catalysts
NEAR-TERM CATALYSTS ROSEMONT EARLY WORKS & JV PROCESS Commence early works program to bring power and water to site, key project de- bottlenecking milestones Carry out a joint venture process for Rosemont seeking the sale of an approximate 30% minority stake LALOR MINE RAMP-UP AND MINE LIFE EXTENSIO
Slide 36: Near-Term Catalysts (Cont'd)
NEAR-TERM CATALYSTS (CONT’D) ROSEMONT PROJECT DEVELOPMENT Full project sanctioning expected once prudent financing package in place (sourced from cash balance, operating cash flow generation, minority JV partner proceeds, etc.) Approximately 3-year construction timeline ANN MASON EXPLORATION Continu
Slide 37: Hudbay Investment Rationale
HUDBAY INVESTMENT RATIONALE Consistent long-term growth strategy and world-class asset base Proven track record of successful project development Operational excellence and value creation through successful exploration Focused on free cash flow generation and prudent capital allocation Robust projec
Slide 38: Appendix
APPENDIX 38
Slide 39: Per Share Accretion
PER SHARE ACCRETION Focused on NAV per share and reserve and resource per share accretion HUDBAY RESERVE GROWTH PER SHARE1 HUDBAY RESOURCE GROWTH PER SHARE1,2 Manitoba Peru Arizona Other Manitoba Peru Arizona Nevada Other 60.0 150.0 Copper Equiv. Resources per HBM Share Copper Equiv. Reserves per HB
Slide 40: Cumulative Free Cash Flow vs. Peers
CUMULATIVE FREE CASH FLOW VS. PEERS Since 2016, Hudbay has generated US$654M in free cash flow, the third highest relative to peers Represents 14% free cash flow yield CUMULATIVE FCF GENERATION TOTAL AND PER SHARE SINCE 2016 – HUDBAY AND PEERS1,2 2018 FCF Yield 15% 11% 18% 13% 3% -4% 4% -4% -7% Avg.
Slide 41: Constancia Mine
CONSTANCIA MINE Location Chumbivilcas, Peru LOW-COST, LONG-LIFE COPPER MINE IN PERU Ownership 100% Began production at end of 2014 Porphyry copper- Developed and maintain meaningful partnerships Type of deposit molybdenum deposit with the local communities Processing On-site processing plant Potenti
Slide 42: Constancia Mine Plan Summary
CONSTANCIA MINE PLAN SUMMARY MINE PLAN SUMMARY 2019E 2020E 2021E 2022E 2023-2036E LOM Avg.1 Ore mined million tonnes 37.7 34.0 27.6 28.6 28.8 30.8 Waste mined million tonnes 32.5 32.0 38.1 39.5 31.5 33.7 Strip ratio waste:ore 0.9 0.9 1.4 1.4 1.1 1.1 Ore milled million tonnes 31.3 31.2 31.1 31.1 29.5
Slide 43: 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 44: Manitoba Flow Chart - 2019
MANITOBA FLOW CHART - 2019 TWO MINES FEEDING TWO OPERATING MILLS AND ZINC PLANT Ore Concentrate/Metal ~4,000 tpd Copper ~3,000 tpd Concentrate ~3,000 tpd 777 Mine Flin Flon Mill Zinc (6,000 tpd capacity) Concentrate Copper Zinc Plant ~3,500 tpd Concentrate Stall Mill Zinc ~4,500 tpd (3,600 tpd capac
Slide 45: Manitoba Flow Chart - 2023
MANITOBA FLOW CHART - 2023 ONE MINE FEEDING TWO OPERATING MILLS Ore Concentrate/Metal Reserve Exhausted Care and Maintenance 777 Mine Flin Flon Mill (6,000 tpd capacity) Closed2 Copper Zinc Plant ~3,400 tpd Concentrate Stall Mill Zinc ~4,500 tpd (3,600 tpd capacity) Concentrate Lalor Mine ~1,100 tpd
Slide 46: Lalor Mine
LALOR MINE PRODUCING LOW-COST GOLD-ZINC MINE WITH SIGNIFICANT UPSIDE POTENTIAL Strong ramp-up of ore production; expanded 4,500tpd mine plan New mine plan more than doubles annual gold production with the refurbishment of New Britannia Location Snow Lake, Manitoba gold mill Potential mine life exten
Slide 47: Lalor Mine Plan Summary
LA L O R MIN E PL A N SU M M A R Y MINE PLAN SUMMARY 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E LOM Total1 BASE METAL ORE Ore mined 000 tonnes 1,589 1,481 1,559 1,135 1,251 1,144 894 612 10,844 Ore mined tpd 4,353 4,057 4,271 3,110 3,428 3,134 2,449 1,677 - Zinc grade % Zn 5.43% 6.37% 6.18% 5.9
Slide 48: Lalor Mine Plan Summary (Cont'd)
LALOR MINE PLAN SUMMARY (CONT’D) PRODUCTION AND CAPEX SUMMARY 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E LOM Total1 PRODUCTION2 Zinc 000 tonnes 79 88 89 63 70 64 32 18 552 Copper 000 tonnes 8 8 9 10 10 15 11 4 83 Gold 000 ounces 69 58 75 143 137 138 172 114 1,134 Silver 000 ounces 651 692 725 7
Slide 49: Lalor Mine Plan Summary (Cont'd)
LALOR MINE PLAN SUMMARY (CONT’D) CASH COSTS SUMMARY 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E LOM Avg.1 ZINC BASIS Cash Costs US$/lb $0.61 $0.73 $0.55 ($0.05) $0.03 ($0.18) ($1.21) ($0.87) $0.09 Sustaining Cash Costs US$/lb $1.04 $1.14 $0.78 $0.26 $0.22 ($0.04) ($0.95) ($0.77) $0.35 GOLD BASIS
Slide 50: Snow Lake Regional Potential
SNOW LAKE REGIONAL POTENTIAL EXPANSION POTENTIAL BEYOND CURRENT LALOR RESERVES AND RESOURCES SATELLITE DEPOSITS WITH EXPLORATION OPPORTUNITIES TO DISPLACE CURRENT RESOURCES WITH KNOWN RESOURCE HIGHER VALUE FEED FOR BOTH STALL AND NEW BRITANNIA ESTIMATES Engineering studies on In-Mine Lalor Snow Lake
Slide 51: Lalor In-Mine Exploration
LALOR IN-MINE EXPLORATION LENS 17 CU-AU RICH LENS NOT IN CURRENT RESOURCE ESTIMATES Lens 17 is Cu-Au rich analog to Lens 27 identified based on 7 surface holes. 2019 drilling: Phase 1 to confirm upper portion in Q2 2019 Phase 2: Potential connection to Lens 10 (Zn rich) in 2H 2019 IN-MINE GOLD EXPLO
Slide 52: Lalor In-Mine Exploration
LALOR IN-MINE EXPLORATION DRILLING AT LALOR CONTINUES TO EXTEND HIGH GRADE LENSES Q1 2019 infill drilling of 25 lens extended lenses 23 and 32 and expanded lens 21 Estimated true width of ~20-25m combined for lenses 23, 32 and 25. Lenses 23 and 32 still have room to extend down plunge Resource model
Slide 53: Lalor In-Mine Exploration
LALOR IN-MINE EXPLORATION DEEP EXPLORATION PROGRAM: TEST FOR NEW BASE METAL LENSES AND CU- AU FEEDERS Test the potential a repeated lower limb fold represented by 42 may be a prospective horizon at depth May potentially intersect an additional feeder network associated with other mineralized horizon
Slide 54: 1901 Deposit
1901 DEPOSIT PRELIMINARY GEOLOGICAL MODEL Cu-Au stringers = Feeder system Towards heat Chisel to (continues below the Zn rich domain) source Lalor ramp CH0702 CH0703 Assays returned on CH1801 CH1203 CH0701 CH1901, CH1902, CH1903 & CH1904 CH0305 160m at 1.0% Cu Eq confirm the occurrence from surface
Slide 55: 777 Mine
777 MINE STEADY, LOW-COST PRODUCTION Maximizing cash flow to end of mine life Plan to keep processing assets on care and maintenance after mine closure to maintain regional optionality Location Flin Flon, Manitoba Ownership 100% Type of deposit VMS deposit Processing Flin Flon mill Refined zinc, zin
Slide 56: Rosemont Mine Plan Summary
ROSEMONT MINE PLAN SUMMARY MINE PLAN SUMMARY Units Year 1- 10 Avg. Year 11- 19 Avg. LOM Avg. / Total Total material moved1 million tons 132 47 1,747 Strip ratio waste:ore 2.5 1.0 2.0 Ore milled million tons 32 30 592 Copper grade milled2 % Cu 0.53% 0.35% 0.45% Copper recovery % Cu 82% 78% 80% Copper
Slide 57: Rosemont Litigation
ROSEMONT LITIGATION Status of Rosemont Litigation Opponents of the Rosemont project have filed three lawsuits against the U.S. Forest Service and the U.S. Fish and Wildlife Service challenging, among other things, the issuance of the Final Record of Decision in respect of Rosemont. These lawsuits ha
Slide 58: Overview of Ann Mason
OVERVIEW OF ANN MASON Hudbay acquired the Ann Mason property in ANN MASON – NEVADA, USA December 2018 Ann Mason is located approximately 85km Elko southeast of Reno, Nevada in the prolific Yerington Reno Copper District Ann Mason Close to the former producing Yerington mine (1.7B lbs of copper produ
Slide 59: Scarcity of Copper Assets
SCARCITY OF COPPER ASSETS Ann Mason is one of the largest undeveloped copper resources in Hudbay’s preferred jurisdictions The 3rd largest “actionable” resource that was held within a junior company A high priority exploration project to target near-surface, high-grade mineralization Acquiring a hig
Slide 60: 2019 Guidance
2019 GUIDANCE PRODUCTION AND UNIT COST CONTAINED METAL IN CONCENTRATE1 2019 GUIDANCE 2018 ACTUAL 2018 GUIDANCE MANITOBA2 Copper tonnes 22,000 – 25,000 32,372 27,500 – 32,500 Zinc tonnes 100,000 – 115,000 115,588 105,000 – 130,000 Precious Metals3 ounces 105,000 – 125,000 113,188 120,000 – 145,000 C$
Slide 61: 2019 Guidance
2019 GUIDANCE CAPITAL EXPENDITURE1 $ MILLIONS 2019 GUIDANCE YEAR ENDED DEC. 31, 2018 2018 GUIDANCE SUSTAINING CAPITAL Manitoba 100 104 85 Peru2 95 40 50 TOTAL SUSTAINING CAPITAL 195 144 135 GROWTH CAPITAL Manitoba 10 18 20 Peru 45 2 -3 Arizona 1424 20 35 TOTAL GROWTH CAPITAL 197 40 55 Capitalized Ex
Slide 62: Peru Mineral Reserves
PERU MINERAL RESERVES AS AT JANUARY 1, 2019 CATEGORY TONNES Cu (%) Mo (g/t) Ag (g/t) Au (g/t) CONSTANCIA Proven 421,800,000 0.30 94 2.87 0.035 Probable 72,000,000 0.23 72 3.06 0.035 Total Proven and Probable 493,800,000 0.29 91 2.90 0.035 PAMPACANCHA Proven 32,400,000 0.59 178 4.48 0.368 Probable 7,
Slide 63: Peru Mineral Resources
PERU MINERAL RESOURCES AS AT JANUARY 1, 2019 CATEGORY TONNES Cu (%) Mo (g/t) Ag (g/t) Au (g/t) CONSTANCIA Measured 169,400,000 0.18 50 2.19 0.028 Indicated 180,500,000 0.20 56 2.16 0.034 Inferred 50,800,000 0.24 43 2.41 0.046 PAMPACANCHA Measured 11,400,000 0.41 101 4.95 0.245 Indicated 6,000,000 0.
Slide 64: Snow Lake Reserves & Resources
SNOW LAKE RESERVES & RESOURCES AS AT JANUARY 1, 2019 PROPERTY CATEGORY TONNES Cu (%) Zn (%) Au (g/t) Ag (g/t) Proven 5,137,000 0.76 7.13 2.37 26.31 Base Metal Zone Probable 5,552,000 0.44 4.19 3.52 27.39 Proven 58,000 0.80 2.65 5.46 39.09 Gold Zone Probable 2,928,000 1.09 0.31 6.74 23.08 Total Lalor
Slide 65: Flin Flon Reserves & Resources
FLIN FLON RESERVES & RESOURCES AS AT JANUARY 1, 2019 PROPERTY CATEGORY TONNES Cu (%) Zn (%) Au (g/t) Ag (g/t) Proven 2,169,000 1.80 4.44 1.77 26.45 777 Reserves Probable 1,384,000 0.97 3.75 2.03 21.65 Total 777 Mineral Reserve 3,552,000 1.48 4.17 1.87 24.58 Indicated 375,000 1.13 4.05 1.79 29.57 777
Slide 66: Rosemont Reserves & Resources
ROSEMONT RESERVES & RESOURCES AS AT JANUARY 1, 2019 MINERAL RESERVES1 CATEGORY Tonnes Cu (%) Mo (%) Ag (g/t) Proven 426,100,000 0.48 0.012 4.96 Probable 111,000,000 0.31 0.010 3.09 Total 2P Reserves 537,100,000 0.45 0.012 4.58 MINERAL RESOURCES1 CATEGORY Tonnes Cu (%) Mo (%) Ag (g/t) Measured 161,30
Slide 67: Ann Mason Reserves & Resources
ANN MASON RESERVES & RESOURCES AS AT MARCH 3, 2017 PROJECT RESOURCE ESTIMATES CATEGORY Tonnes Cu (%) Au (g/t) Ag (g/t) Mo (%) Measured & Indicated 1,400,000,000 0.32 0.03 0.65 0.006 Inferred 623,000,000 0.29 0.03 0.66 0.007 67
Slide 68: 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
Slide 69: Additional Information – Lens 17
ADDITIONAL INFORMATION – LENS 17 Drill results Hole ID From To Intercept Depth Estimated true Cu Au (m) (m) (m) (m) width(m)1 (%)2 (g/t)2 189W01 1197.0 1205.0 8.0 1154 7.1 0.1 9.3 193W01 1041.2 1046.5 5.4 1028 4.1 1.1 2.8 267W01 1120.8 1127.2 6.3 1098 4.5 2.7 11.3 273 1211.8 1215.8 4 1202 2.9 1.9 1.
Slide 70: Additional Information – Zone 1901
ADDITIONAL INFORMATION – ZONE 1901 Drill results 1. True widths are estimated based on drill angle and intercept geometry of mineralization. 2. All gold, silver and copper and zinc values are uncut. Supplemental information to the Zone 1901 drill results From To Azimuth at Dip at Core Hole ID Eastin
Slide 71: Additional Information – Lalor In-Mine
ADDITIONAL INFORMATION – LALOR IN-MINE Drill results 950m Level drilling Lens 23 71
Slide 72: Additional Information – Lalor In-Mine
ADDITIONAL INFORMATION – LALOR IN-MINE Drill results 950m Level drilling Lens 25 72
Slide 73: Additional Information – Lalor In-Mine
ADDITIONAL INFORMATION – LALOR IN-MINE Drill results 950m Level drilling Lens 32 73
Slide 74: For More Information Contact
F O R M O R E I N F O R M AT I O N C O N TA C T: Candace Brûlé, Director, Investor Relations 416.814.4387 | candace.brule@hudbay.com
Hudbay Minerals — RBC Global Mining & Materials Conference 2019 on 6ix