Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q4 2012 Earnings Presentation
16 slides from Hudbay Minerals's earnings presentation, Feb 21, 2013
Slide 1: Creating sustainable value through high quality, long-life deposits
Creating sustainable value through high quality, long-life deposits Q4 2012 Conference Call February 21, 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 SEC Industry Guide 7. Under Securities and Exchange Commission (the “SEC”) Industry
Slide 4: Q4 2012 Highlights
Q4 2012 Highlights > Production targets achieved for the 6th consecutive year with steady cost performance in 2012 > Construction of three new mines advancing well toward significant production growth over the next two years > Re-scaling of Lalor concentrator demonstrates potential for low-risk expa
Slide 5: Project Highlights
Project Highlights All Development Assets under Construction Lalor • Q4 2012 – first full quarter of production from Ventilation shaft • Hoisted 72,300 tonnes of high-grade zinc ore from August to December • Concentrator basic engineering complete; updated capital cost and timeline Reed • Completed
Slide 6: Financial Results
Financial Results Three Months Ended Year Ended Dec. 31 Dec. 31 ($000s except per share amounts) 2012 2011 2012 2011 Revenue 180,994 254,314 702,550 890,817 Profit before tax 23,335 69,813 52,149 209,025 Profit (loss) for the period 7,438 34,286 (21,170) (163,588) Operating cash flow per share1 0.03
Slide 7: Steady Production with Consistent Operating Costs
Steady Production with Consistent Operating Costs Production of all metals met guidance for the sixth consecutive year Three Months Ended Year Ended Guidance1 Guidance1 Contained metal in concentrate December 31, 2012 December 31, 2012 2012 2013 Copper1 tonnes 8,162 39,587 35-40,000 33-38,000 Zinc1
Slide 8: Lalor Mine Portion On Track
Lalor Mine Portion On Track Basic engineering of new Lalor concentrator is complete > $326 million invested to January 31, 2013; additional $93 million in commitments of revised $794 million capital construction budget > Capital expenditures expected to be approximately $90 million more than origina
Slide 9: Lalor
Lalor Key milestones completed on time and on budget Surface 0m Production shaft Vent raise 500m 525m / shaft depth1 750m 2013 - 2014 2015 Exploration platform 1000m 1500m Base Metal Resource Gold & Copper-Gold Resource Looking 0m 250m High Grade Intercepts N70oW Q4 2012 > 9 1 As of February 20, 201
Slide 10: Constancia Project
Constancia Project US$1.5 billion construction program underway PERU > US$351 million spent and entered into Trujillo additional US$631 million in commitments to January 31, 2013 Lima Cusco > Targets for initial and full production Constancia remain unchanged Arequipa > Activity to date includes: 1-
Slide 11: Constancia Construction Progress
Constancia Construction Progress
Slide 12: Constancia Exploration
Constancia Exploration Positive Results from Pampacancha West > One drill focused on Pampacancha infill drilling; two drills focused on Pampacancha West • 500 metres west of the main Pampacancha deposit • New drilling has yielded positive results • Resource is expected to enable continued optimizati
Slide 13: Reed Progressing Well
Reed Progressing Well Portal trench excavation completed MANITOBA > $26 million invested and entered into additional $21 million to January 31, 2013 Reed > Underground ramp advanced approx. 224 metres as of February 20, 2013 Winnipeg > Submitted Environmental Act Licence application to provincial go
Slide 14: 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 15: Strong Balance Sheet
Strong Balance Sheet As at December 31, 2012 Sources Uses (through 2014) > Cash and cash equivalents - $1,337 million > Lalor - $335 million > Remaining stream agreement payments > Reed - $48 million - US$250 million > Constancia - US$1,223 million > Existing Credit facility - US$236 million > Accru
Slide 16: Creating sustainable value through high quality, long-life deposits
Creating sustainable value through high quality, long-life deposits Q4 2012 Conference Call February 21, 2013 HBM