Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q4 2011 Earnings Presentation
15 slides from Hudbay Minerals's earnings presentation, Mar 8, 2012
Slide 1: Q4 2011 Results Conference Call
HBM Q4 2011 Results Conference Call March 8 8, 2012 Creating g Sustainable Value through g High Quality Long Life Deposits
Slide 2: Forward Looking Information
Forward Looking Information This presentation contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes but is not limited to information concerning the company’s ability to develop its Lalor project, capital and operating cost assu
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: Q4 2011 Highlights
Q4 2011 Highlights • Strong 2011 results enabled company to meet production targets for 5th consecutive year • Achieved good cost control at operations • Success translated into strong operating cash flow and earnings per share • Operating assets underpin success; development projects point to futur
Slide 5: HudBay's Focus for 2012
HudBay’s Focus for 2012 Advancing development assets toward production • Lalor • Proceeding on track and on budget • First ore-production on schedule • New Cu-Au mineralization discovery • Constancia • Engineering and design well advanced • Long-lead g orders secured • Exploration success at Pampaca
Slide 6: Strong Financial Performance
Strong Financial Performance Driven by steady production and cost control Three Months Ended Year Ended Dec 31 Dec 31 2011 2010 2011 2010 Revenue 254,314 , 184,607 , 890,817 , 781,032 , Profit before tax 69,813 26,594 209,025 108,669 Profit (loss) for the period 34,286 13,694 (163,588) 21,017 Basic
Slide 7: Steady Production with Low Cash Costs
Steady Production with Low Cash Costs Operations met production targets for fifth consecutive year Year Ended Dec 31 GUIDANCE(1) GUIDANCE(1) 2011 2011 2012 Copper 1 tonnes 54,324 40-55,000 35-40,000 Zinc 1 tonnes 75,780 70-90,000 70-85,000 Precious Metals (1,2) troy oz. 112,126 95-120,000 85-105,000
Slide 8: Lalor Construction Advancing Well
Lalor Construction Advancing Well Initial production remains on target and expected by mid-2012 • 3,200 metre access ramp completed on schedule and on budget • Ventilation shaft sunk to ~500 500 metres t • Underground diamond drilling began in Jan. 2012 • Headframe substantially complete; main produ
Slide 9: Lalor
Lalor Underground drilling has begun; New Cu-Au mineralization discovered Surface 0m 500m Vent Raise Production Shaft 750m H1/2012 H2/2012 2013 - 2014 2015 Exploration Platform 1000m DUB-283 6.12m 5.91 g/t Au, 31.6 g/t Ag, 8.26% Cu 1250m Base Metal Resource Gold Inferred Resource Gold Potential Mine
Slide 10: Constancia
Constancia O i i i and Optimization d ffront-end d engineering i i wellll advanced d d • Board approved $107 million for Q1 2012 • Orders already placed for grinding mills • Mobile equipment orders to be placed in Q1 2012 • Anticipate larger reserve and increased throughput from value engineering 10
Slide 11: Constancia Exploration Program
Constancia Exploration Program Pampacancha drilling confirms continuity of copper mineralization 2012 Drill • Pampacancha P h drill d ill North Targets PO-11-107 results indicate deposit 28.10m 1.23% Cu 25.87 g/t Ag 0.33 g/t Au has expanded to the Constancia Main north and west • Results being PO-11
Slide 12: Reed Copper Project
Reed Copper Project Construction will begin ahead of schedule • Ramp decline anticipated to begin in the second half of 2012 • First ore production expected t d by b th the ffourth th quarter of 2013 • Two exploration drills testing k known mineralized i li d h horizons i and geophysical anomalies a
Slide 13: Leading Production Growth
Leading Production Growth Focus in 2012 is continued progress of development stage assets 255% GROWTH 135% GROWTH 65% GROWTH (1) Cu Production Precious Metals Production Zn Production (kt) (koz) (kt) HudBay - Current Ops (2) Lalor (3) Constancia (4) Reed (5) (1) Silver converted to gold at a ratio o
Slide 14: Leverage Commodity Exposure Per Share
Leverage Commodity Exposure Per Share • Actively exploring in Flin Flon Greenstone Belt and Constancia • Increasing commodity exposure through pipeline of early stage opportunities • Minority equity positions in 17 companies with current market value of ~$100 million • One of the best “farm systems”
Slide 15: Q4 2011 Results Conference Call
HBM Q4 2011 Results Conference Call March 8 8, 2012 Creating g Sustainable Value through g High Quality Long Life Deposits