Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q2 2020 Earnings Presentation
22 slides from Hudbay Minerals's earnings presentation, Aug 12, 2020
Slide 1: Q2 2020 Results Conference Call Presentation
Q 2 2 0 2 0 R E S U LT S C O N F E R E N C E C A L L P R E S E N TAT I O N August 12, 2020
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. Oft
Slide 3: Q2 2020 Consolidated Results
Q2 2020 CONSOLIDATED RESULTS BOOSTED BY STRONG MANITOBA OPERATIONS • Record gold production in Manitoba led to KEY RESULTS SUMMARY Q2 2020 Results increased precious metals production over Q2 2020 Q1 2020 Q1; zinc production also increased Q-over-Q Production1 • Consolidated copper production declin
Slide 4: Q2 2020 Manitoba Operations Review
Q2 2020 MANITOBA OPERATIONS REVIEW ON TRACK TO ACHIEVE 2020 GUIDANCE MANITOBA SUMMARY OF OPERATING STATISTICS Q2 2020 Q1 2020 Q2 2020 Results • Continued strong operating performance, Ore mined (kt) 689 701 largely unaffected by increased COVID-19 Ore milled (kt) 660 702 protocol constraints Copper
Slide 5: Stall Mill Throughput and Recovery Improvements
Q2 2020 MANITOBA OPERATIONS REVIEW STALL MILL THROUGHPUT AND RECOVERY IMPROVEMENTS • Tonnes processed at Stall have improved over time STALL GOLD RECOVERIES BY QUARTER Q2 2020 Results due to increased plant runtime from enhanced 65% maintenance programs • In the first half of 2020, tonnage increased
Slide 6: Q2 2020 Peru Operations Review
Q2 2020 PERU OPERATIONS REVIEW FULL RESUMPTION OF OPERATIONS PERU SUMMARY OF OPERATING STATISTICS • Successfully achieved efficient restart of operations in Q2 2020 Q1 2020 Q2 2020 Results mid-May with government-supported COVID-19 health Ore mined (million tonnes)1 2.8 7.0 and safety protocols afte
Slide 7: 2020 Annual Guidance Update
2020 ANNUAL GUIDANCE UPDATE MANITOBA GUIDANCE UNCHANGED; UPDATED PERU GUIDANCE • Peru guidance reflects temporary REVISED 2020 GUIDANCE SUMMARY Q2 2020 Results suspension and resulting lower copper and precious metals Peru Manitoba Total production Contained Metal in Concentrate1 Annual Guidance • I
Slide 8: Snow Lake Gold Strategy
SNOW LAKE GOLD STRATEGY PHASE 1: Repositioning PHASE 2: Optimization PHASE 3: Historical Work Q2 2020 Results Lalor as a Gold Mine & Execution Expansion Potential ✓ 2008 & 2009 – Au zone and ✓ 2018 – Completion of ✓ 2020 – Optimized mine • Potential to increase gold Cu-Au zone identified tradeoff st
Slide 9: Snow Lake Gold Execution of Milestones
SNOW LAKE GOLD EXECUTION OF MILESTONES Stall mill Cu & Au recovery FURTHER UPSIDE OPPORTUNITIES 1901 winter improvement study results Potential to further increase Q2 2020 Results Ongoing Lalor drill program annual production and in-mine drilling New Britannia mill extend mine life beyond the to exp
Slide 10: New Britannia Gold Mill Refurbishment
NEW BRITANNIA GOLD MILL REFURBISHMENT ON BUDGET AND ON SCHEDULE TO BE COMPLETED IN AUGUST 2021 Q2 2020 Results • Engineering 90% complete, procurement 65% complete and construction 25% complete • 100% of long-lead items ordered SNOW LAKE • Construction of pipelines progressing as planned Annual Guid
Slide 11: Significant Gold Value to Be Unlocked
SIGNIFICANT GOLD VALUE TO BE UNLOCKED • Snow Lake Gold expected to generate ~$200 million in annual gross margin at $1,600/oz Au, or Q2 2020 Results over $250 million at $2,000/oz Au • Located in one of the best mining jurisdictions and an asset already in production, there remains significant oppor
Slide 12: 1901 Deposit Updated Resource Estimate
1901 DEPOSIT UPDATED RESOURCE ESTIMATE LARGER BASE METAL RESOURCE AND SIGNIFICANTLY HIGHER GOLD CONTENT • Measured and indicated tonnage is equivalent to Q2 2020 Results 100% of prior inferred resource estimate at 12% lower zinc grade but more than double the gold grade SNOW LAKE Annual Guidance • S
Slide 13: 1901 Deposit Exploration Potential
1901 DEPOSIT EXPLORATION POTENTIAL DEPOSIT REMAINS OPEN AND HIGH-GRADE CU-AU INTERSECTIONS NOT IN RESOURCE Q2 2020 Results • Potential to extend the resource in the northern (base metal) and eastern (gold) parts of the deposit SNOW LAKE • Identified additional exploration drill targets located betwe
Slide 14: Manitoba Regional Mines and Discoveries
MANITOBA REGIONAL MINES AND DISCOVERIES • Hudbay has a long history of delivering additional tonnage beyond the initial reserves Q2 2020 Results 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 Annual Guidance Lalor Update Chise
Slide 15: Execution of Strategy
EXECUTION OF STRATEGY LEVERAGING HUDBAY’S KEY COMPETITIVE ADVANTAGES FOR VALUE CREATION Q2 2020 Results LOW RISK, HIGH RETURN SHORT-TERM PRIORITIES Annual Guidance Update ESG ✓ Drill Lalor gold and extend mine life Excellence Successful ✓ Prudently manage balance sheet to provide financial flexibili
Slide 16: Executing on Growth Initiatives
EXECUTING ON GROWTH INITIATIVES NEAR-TERM LONG-TERM Q2 2020 Results EXPLORATIOIN Lalor Gold 1901 Deposit Delineation Constancia Quehuincha Gold Maria Reyna & Manitoba, Peru Annual Guidance Mason & Snow Lake Near-mine Norte Delineation Llaguen Caballito & Chile Update Regional Resource Exploration Ex
Slide 17: Appendix
APPENDIX 4BN ry Bt NYSE HBM TMX © NYSE
Slide 18: Lalor In-Mine Gold Exploration Targets
LALOR IN-MINE GOLD EXPLORATION TARGETS LENS 17 COPPER-GOLD RICH LENS NOT CURRENTLY IN MINE PLAN Q2 2020 Results • Both Lens 17 and 27 are open down 3D VIEW OF LENS 17 AND LENS 27 AT LALOR plunge GOLD LENSES Annual Guidance • Further exploration / delineation could BASE METAL Update add additional co
Slide 19: Snow Lake Gold Regional Potential
SNOW LAKE GOLD REGIONAL POTENTIAL • Hudbay has a large prospective land MINERAL PROPERTIES IN THE SNOW LAKE REGION Q2 2020 Results package in the Snow Lake belt with significant gold exploration potential • WIM (15km from New Britannia mill) is a MINE Annual Guidance copper-gold deposit that was acq
Slide 20: Additional Information
ADDITIONAL INFORMATION QUALIFIED PERSON Q2 2020 Results The technical and scientific information in this presentation related to the Constancia mine and Rosemont project has been approved by Cashel Meagher, P. Geo, Hudbay’s Senior Vice President and Chief Operating Officer. The technical and scienti
Slide 21: Additional Information: Supplemental 1901 Deposit Drill Results
ADDITIONAL INFORMATION SUPPLEMENTAL INFORMATION TO THE 1901 DEPOSIT DRILL RESULTS Q2 2020 Results From To Intercept True Width1 Au Ag Cu Zn Hole ID (m) (m) (m) (m) (g/t) (g/t) (%) (%) CH1925 623.4 626.3 2.9 2.8 6.5 29.1 4.64 1.39 CH1955 655.0 658.0 3.0 2.9 2.4 10.4 2.37 0.02 Annual Guidance CH1956 6
Slide 22: For More Information Contact
For More Information Contact: Candace Brûlé, Director, Investor Relations 416.814.4387 | candace.brule@hudbay.com