Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q1 2013 Earnings Presentation
30 slides from Hudbay Minerals's earnings presentation, May 2, 2013
Slide 1: Creating sustainable value through high quality, long-life deposits
Creating sustainable value through high quality, long-life deposits Q1 2013 May 2, 2013 HBM
Slide 2: Forward-looking Information
Forward-looking 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, othe
Slide 3: Note to U.S. Investors
Note to U.S. Investors 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 the Securities and Exchange Commission (“SEC”) Industry Guide 7. Under SEC Industry
Slide 4: Summary
Summary > Commercial production commenced for the first phase of Lalor effective April 1, 2013 > Full year 2013 guidance for production and operating costs remain unchanged Cement bucket heading down main production shaft at the Lalor project Construction of three mines advancing well toward signifi
Slide 5: Project Highlights
Project Highlights Lalor > First phase of commercial production declared > Hoisted 81,800 tonnes of ore during Q1 2013 Reed > Began hauling waste from underground with trucks > Advanced underground ramp approx. 363 metres as of March 31, 2013 Constancia > Approx. 25% of Constancia’s development comp
Slide 6: Financial Results
Financial Results Three Months Ended Mar. 31 Year Ended Dec. 31 ($000s except per share amounts) 2013 2012 2012 Revenue 119,881 187,038 702,550 Profit before tax 7,924 16,969 52,149 Profit (loss) for the period 1,907 3,355 (21,170) Operating cash flow1 12,261 42,247 142,957 Operating cash flow per s
Slide 7: Steady Production
Steady Production Three Months Ended Year Ended Guidance Contained metal in concentrate1 March 31, 2013 December 31, 2012 2013 Copper tonnes 7,643 39,587 33-38,000 Zinc tonnes 18,210 80,865 85-100,000 Precious Metals2 troy oz. 21,665 101,044 85-105,000 Unit Operating Costs 777 $/tonne 51.27 42.83 38
Slide 8: Lalor
Lalor > Approx. $338 million of $794 million capital construction budget invested to March 31, 2013; entered into additional $84 million in commitments > Hoisted 81,800 tonnes of ore during Q1 2013 > Completing final engineering work for load out facilities > Preparing for construction of main intak
Slide 9: Lalor
Lalor Key milestones completed on time and on budget Surface 0m Production shaft Vent raise 500m 710m / shaft depth1 750m 2013 - 2014 2015 Exploration platform 1000m 1500m Base Metal Resource Gold & Copper-Gold Resource Looking 0m 250m High Grade Intercepts N70oW 1 As at April 26, 2013 Q1 2013 > 9
Slide 10: Constancia
Constancia PERU > US$480 million incurred and entered Trujillo into additional US$534 million in commitments to March 31, 2013 Lima Cusco > Targets for initial and full production Constancia remain unchanged Arequipa > Highlights: • Project development approx. 25% complete 1-5 Yrs 6-16 Yrs LOM • Sec
Slide 11: Constancia Construction Progress
Constancia Construction Progress Plant site overview Night shift works on the bog dam South mill area – mass foundations Tailings thickener Q1 2013 > 11
Slide 12: Reed Copper Project
Reed Copper Project MANITOBA > $37 million invested and entered into additional $13 million in commitments to March 31, 2013 Reed > Underground ramp advanced approx. 363 metres as of March 31, 2013 Winnipeg > Began hauling waste from underground with trucks in March 2013 PROFILE > Project remains on
Slide 13: Key Metals Growth
Key Metals Growth1 390% GROWTH 115% GROWTH 2 30% GROWTH Cu Production Precious Metals Production Zn Production (kt) (koz) (kt) 200 220 120 200 175 180 150 90 160 125 140 120 100 60 100 75 80 60 50 30 40 25 20 0 0 0 3 4 3 4 3 4 2012 2013E 2014E 2015E 2012 2013E 2014E 2015E 2012 2013E 2014E 2015E 5 6
Slide 14: Strong Balance Sheet
Strong Balance Sheet As at March 31, 2013 Sources Uses (through 2014) > Cash and cash equivalents - $1,050 million > Lalor - $318 million > Remaining stream agreement payments > Reed - $35 million - US$250 million > Constancia - US$1,066 million > Existing Credit facility - US$236 million > Accrued
Slide 15: Growing Mineral Reserves and Resources Per Share
Growing Mineral Reserves and Resources Per Share Commodity Exposure1,2,3 Cu Eq/Share (lb Cu/sh) 1 Hudbay reserves and resources as of March 27, 2013. Measured and Indicated Resources are exclusive of Proven and Probable Reserves. 2 Commodity exposure calculated using commodity prices of US$1,250/oz
Slide 16: Creating sustainable value through high quality, long-life deposits
Creating sustainable value through high quality, long-life deposits Q1 2013 May 2, 2013 HBM
Slide 17: Appendix
H' DBAY APPENDIX
Slide 18: Peru Reserves Overview
Peru Reserves Overview As at August 8, 2012 Constancia Mineral Reserves Category Ore (M tonnes) Cu (%) Mo (g/t) Au (g/t) Ag (g/t) Proven 349 0.37 100 0.043 3.29 Probable 54 0.24 60 0.035 2.98 Pampacancha Mineral Reserves Proven 10 0.54 170 0.318 4.20 Probable 37 0.46 140 0.276 4.56 Total Proven 359
Slide 19: Peru Resources Overview
Peru Resources Overview As at August 8. 2012 Constancia Mineral Resources Category M (tonnes) Cu (%) Mo (g/t) Au (g/t) Ag (g/t) Measured 119 0.23 62 0.038 2.3 Indicated 344 0.20 58 0.034 2.0 Inferred 219 0.19 49 0.032 1.8 Pampacancha Mineral Resources Category M (tonnes) Cu (%) Mo (g/t) Au (g/t) Ag
Slide 20: Manitoba Mineral Reserves
Manitoba Mineral Reserves January 1, 2013 Category Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t) 7771 Proven 4,959,000 2.37 4.05 1.95 27.31 Probable 6,448,000 1. 84 4.40 1.79 28.49 Lalor – Base Metal Proven 57,000 0.48 12.40 0.63 15.52 Probable 13,147,000 0.67 8.15 1.59 23.62 Lalor – Gold Zone Probable 1,8
Slide 21: Manitoba Mineral Resources
Manitoba Mineral Resources September 30, 2012 – Exclusive of mineral reserves Category Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t) 7771 Inferred 782,000 1.06 4.43 1.75 31.15 Lalor – Base Metal Inferred 3,191,000 0.62 8.83 1.24 23.07 Lalor – Gold Zone Inferred 7,338,000 0.41 0.32 4.63 31.32 Lalor – Copper
Slide 22: Reed Copper Project
Reed Copper Project1 Mineral Reserves as at March 30, 2012 Mineral Resources as at March 15, 2011 Category Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t) Probable 2,157,000 3.83 0.59 0.48 6.02 Inferred 170,000 4.26 0.52 0.38 4.55 1 Hudbay holds a 70% joint venture interest in the Reed property Q1 2013 > 22
Slide 23: Other Properties
Other Properties Mineral Resources Category Tonnes Cu (%) Zn (%) Au (g/t) Ag (g/t) Pb (%) Back Forty1 Open Pit Measured 4,721,000 0.55 3.49 2.24 26.77 0.13 Indicated 4,927,000 0.14 1.49 1.90 18.30 0.21 Inferred 152,000 0.19 2.86 2.76 34.56 0.39 Back Forty Underground Measured 1,982,000 0.29 5.04 1.9
Slide 24: Copper Equivalent Reserves and Resources
Copper Equivalent Reserves and Resources1 All Metals Project Category Cu Equivalent (000 tonnes) 2013 2012 Change Constancia Proven & Probable 1,886 1,911 (25) Measured & Indicated 1,329 - 1,329 Inferred 566 75 491 Pampacancha Proven & Probable 377 - 377 Measured & Indicated - 381 (381) Inferred 27
Slide 25: Precious Metal Equivalent Reserves and Resources
Precious Metal Equivalent Reserves and Resources1 Project Category Au Equivalent (000 ounces) 2013 2012 Change Constancia2 Proven & Probable 1,385 1,389 (4) Measured & Indicated 1,132 - 1,132 Inferred 477 77 400 Pampacancha Proven & Probable 566 - 566 Measured & Indicated - 635 (635) Inferred 43 - 4
Slide 26: Additional Information
Additional Information > The reserve and resource estimates included in this presentation were prepared in accordance with NI 43-101 and the Canadian Institute on Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves: Definitions and Guidelines. All mineral resources referred
Slide 27: Peru
Peru > For additional details relating to the estimates of mineral reserves and resources at the Constancia project, including data verification and quality assurance/quality control processes refer to “The Constancia Project, National Instrument 43-101 Technical Report” as filed on SEDAR by Hudbay
Slide 28: Reed
Reed > The weighted average (based on planned production tonnage) used in the Reed pre-feasibility study for mineral reserve estimation for copper was US$2.95 per pound, the gold price was US$1,269.09 per ounce and the silver price was US$24.78 per ounce using an exchange rate of 1.034 C$/US$. Other
Slide 29: Qualified Person
Qualified Person > 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 and projects conta
Slide 30: Creating sustainable value through high quality, long-life deposits
Creating sustainable value through high quality, long-life deposits Q1 2013 May 2, 2013 HBM