Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q4 2023 Earnings Presentation
20 slides from Hudbay Minerals's earnings presentation, Feb 23, 2024
Slide 1: Q4 2023 Results Presentation
Q 4 2 0 2 3 R E S U LT S P R E S E N TAT I O N FEBRUARY 23, 2024
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: 2023 Key Achievements
2023 KEY ACHIEVEMENTS TRANSFORMATIVE STRATEGIC INITIATIVES ENABLED PRODUCTION GROWTH AND FREE CASH FLOW GENERATION Achieved 2023 guidance targets through execution of brownfield investment initiatives o First year of Pampacancha high-grade ore o Completion of Stall and New Britannia mill recovery
Slide 4: Record Quarterly Production
RECORD QUARTERLY PRODUCTION CONTINUED INCREASE IN COPPER EQUIVALENT PRODUCTION TO DRIVE STABLE OPERATING BASE COPPER EQUIVALENT PRODUCTION BY REGION 8% QoQ increase in consolidated copper production to 45k tonnes 80 78.0 11% QoQ increase in consolidated gold 71.3 production to 113k ounces (CuEq tonn
Slide 5: Q4 2023 Consolidated Results
Q4 2023 CONSOLIDATED RESULTS RECORD QUARTERLY OPERATING AND FINANCIAL PERFORMANCE Higher copper and gold production drove strong KEY RESULTS SUMMARY production and significantly reduced cash costs Q4 2023 Q3 2023 2023 2022 Production1, 2 Record quarterly gold production Copper kt 45.5 42.0 131.7 104
Slide 6: Peru Operations Review
PERU OPERATIONS REVIEW INCREASED COPPER PRODUCTION AND EXCEEDED TOP END OF GOLD PRODUCTION GUIDANCE RANGE SUMMARY OF PERU OPERATING STATISTICS Q4 copper production increased by 14% Q4 2023 Q3 2023 2023 2022 compared to Q3 Constancia ore mined (million tonnes)1 1.0 1.2 9.3 25.8 Pampacancha ore mined
Slide 7: Manitoba Operations Review
MANITOBA OPERATIONS REVIEW HIGHER GRADE GOLD ZONES WITH STRONG RECOVERIES CONTINUE TO DRIVE PRODUCTION SUMMARY OF SNOW LAKE OPERATING STATISTICS 59,863 ounces of gold production, a 6% Q4 2023 Q3 2023 2023 20224 increase QoQ, due to continued higher Ore mined (kt) 372.4 367.5 1,526.7 1,516.2 grades a
Slide 8: British Columbia Operations Review
BRITISH COLUMBIA OPERATIONS REVIEW RELEASED TECHNICAL REPORT FOR COPPER MOUNTAIN STABILIZATION AND 21-YEAR MINE PLAN SUMMARY OF COPPER MOUNTAIN OPERATING STATISTICS 2024 implementation of improved maintenance practices to drive higher mill availability Q4 2023 Q3 2023 Since2023 Acquisition Ore mined
Slide 9: Copper Mountain Technical Report
COPPER MOUNTAIN TECHNICAL REPORT Reliable Operations Stabilization Plans 21 Years 45k tpd Improving reliability and driving sustainable long-term value: 1. Increased mining activities Mine Life Nameplate mill capacity Fleet ramp-up plan to remobilize idle haul trucks, 28 trucks remobilized up in 202
Slide 10: Continued Financial Discipline
CONTINUED FINANCIAL DISCIPLINE DELEVERAGING WITH DELIVERED HIGHER CASH FLOWS AND SPENDING REDUCTIONS $602M $274M $161M Increased cash and cash equivalents to $250M Record Q4 revenue Record Q4 Q4 free cash flow1 adj. EBITDA2 Reduce net debt by $95M to $1,038M in Q4 +$122M increase +$84M increase +$50
Slide 11: Production Guidance
PRODUCTION GUIDANCE 2023 ACHIEVEMENTS 2024 PRODUCTION GUIDANCE Successfully met 2023 Year Ended Contained Metal in Concentrate and Dore1 2024 Guidance 2023 Guidance Dec. 31, 2023 production guidance PERU for all metals Copper tonnes 98,000 - 120,000 100,487 91,000 - 116,000 Peru exceeded the top Gol
Slide 12: Cash Cost Guidance
CASH COST GUIDANCE OPERATING EFFICIENCIES TO DRIVE SCALE AND REDUCE COSTS Consolidated cash costs achieved the low end of the 2023 annual cost guidance range Consolidated sustaining cash costs exceeded the low end of the 2023 annual cost guidance range 2024 cash cost anticipated to be higher with th
Slide 13: Capital Expenditure Guidance
CAPITAL EXPENDITURE GUIDANCE DISCIPLINED DISCRETIONARY SPENDING Delivered on our spending 2024 CAPITAL EXPENDITURES GUIDANCE reduction targets for 2023 Capital Expenditures (in $ millions) 2024 Year Ended 2023 Revised 2023 Original 19% reduction in total capital Guidance4 Dec. 31, 2023 Guidance5 Gui
Slide 14: Exploration Guidance
EXPLORATION GUIDANCE GREENFIELD OPPORTUNITIES TO TARGET NEW DISCOVERIES Peru Exploration Evaluating Constancia mine plan for 2024 EXPLORATION GUIDANCE additional phases Exploration Expenditures (in $ millions) 2024 Year Ended 2023 Permitting and drill preparation for Guidance Dec. 31, 2023 Guidance
Slide 15: Lalor Winter Drilling Program
LALOR WINTER DRILLING PROGRAM CROSS-SECTION OF LALOR LENSES & DEEP DRILLING 2023 Drilling Program Results • Lalor Down Plunge - all holes intersected the alternation zone over 2km • Lalor Northwest - New zone discovery within 500 metres of existing infrastructure 2024 Drilling Program • Largest wint
Slide 16: 1901 Development & Exploration Drift
1901 DEVELOPMENT & EXPLORATION DRIFT Advancing Access to 1901 in 2024 & 2025 1901 is located within 1,000 metres of existing Lalor underground ramp Develop access drift, drill platforms and diamond drilling to further confirm the optimal mining method to extract the base metal and gold lenses an
Slide 17: Snow Lake Regional Exploration
SNOW LAKE REGIONAL EXPLORATION 250% INCREASE IN SNOW LAKE LAND PACKAGE WITH OPPORTUNITY TO APPLY MODERN GEOPHYSICS Rockcliff Acquisition Added 1,800 km2 of highly prospective land in Snow Lake Cook Lake Claims Located within 10km of Lalor Historical drilling at a fraction of Lalor’s depth with
Slide 18: 2024 Key Objectives
2024 KEY OBJECTIVES IN 2024, HUDBAY INTENDS TO: 1. Enhance position to deliver leading copper growth pipeline through copper production growth and maintaining strong gold production from diversified platform with strong cash flow generation in 2024 Always operate 2. Execute stabilization plan at Cop
Slide 19: Diversified Mid-Tier Copper Producer
DIVERSIFIED MID-TIER COPPER PRODUCER ANNUAL COPPER PRODUCTION & CASH COSTS1,2 REVENUE AND RESERVES BY METAL $1.15 Revenue3 Reserves4 $0.83 $0.86 $0.80 169 $0.74 5% 3% 4% Consolidated Copper Cash 157 156 155 153 4% Production (000 tonnes) 2% 6% Consolidated Copper 132 Costs (US$/lb) 150 kt 99 104 Cu
Slide 20: Questions
QUESTIONS 20