Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q1 2018 Earnings Presentation
19 slides from Hudbay Minerals's earnings presentation, May 3, 2018
Slide 1: Q1 2018 Presentation
Q1 2018 PRESENTATION May 3, 2018
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: Cautionary Information
Cautionary Information The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward- looking information may include, but are not limited to, risks generally associated with the mining industry, such as ec
Slide 4: Q1 2018 Highlights
Q1 2018 Highlights • Solid free cash flow generation; operating cash flow1 of $132 million in Q1 2018, a 64% increase from Q1 2017 • Total liquidity of $810.0 million as at March 31, 2018, up from $778 million at the end of 2017 • Filed new technical report for Constancia on March 29, 2018 • Increas
Slide 5: Q1 2018 Consolidated Results
Q1 2018 Consolidated Results • Consolidated production of all metals decreased Key Results Summary from prior quarter, reflecting lower mined grades Q1 2018 Q4 2017 in Peru and Manitoba Production2 Copper kt 39.2 43.2 • Consolidated cash cost of $0.98/lb Cu Zinc kt 28.8 33.1 • Consolidated sustainin
Slide 6: Peru Operations Review
Peru Operations Review • Copper production of 32kt, a decrease Peru Summary Operating Statistics quarter-over-quarter primarily due to lower Q1 2018 Q4 2017 grades in line with the mine plan Ore mined (million tonnes) 9.5 7.2 • Copper recoveries decreased compared to Ore milled (million tonnes) 7.9
Slide 7: Manitoba Operations Review
Manitoba Operations Review • Ore mined increased versus Q4 2017 as a Manitoba Summary Operating Statistics result of higher production at Lalor and Reed Q1 2018 Q4 2017 Ore mined (kt) 703 639 • Ore processed during Q1 2018 in line with Ore milled (kt) 668 670 previous quarter Copper grade milled 1.2
Slide 8: Lalor Mine Current Stage of Development and MRMR Estimates by Ore Type
Lalor Mine Current Stage of Development and MRMR Estimates by Ore Type (March 2018 AIF) Focus for past 18 months has been to assess mining and processing options for the gold mineralization Lens 25 main gold lens Base Metal Lenses Copper-Gold Lenses + Gold Lenses Mineral Reserves Kilo Mineral Reserv
Slide 9: Strategic Options for Gold Resources
Strategic Options for Gold Resources: Selected an Area in Lens 25 to conduct Mining & Milling Trade-Off Studies Test Zone in base metal zones Lens 25 gold zones copper & gold zones gold zone 25 Test mining area selected within Lens 25 to assess the opportunity to apply more selective mining at hig
Slide 10: Recent Mining/Milling Test Confirmed the Continuity of High Grade Zone and 65% Milling Recovery
Recent Mining/Milling Test Confirmed the Continuity of High Grade Zone and 65% Milling Recovery Primary purpose: • Reconcile grade and tonnage estimates between resource model, grade control sampling and mined material • Stringent QAQC and chain of custody allowed for full traceability of the materi
Slide 11: 2018 Mining in Lens Aimed to Confirm the 2017 Results Over a Larger Volume
2018 Mining in Lens 25 Aimed to Confirm the 2017 Results Over a Larger Volume (80kt) at a 4.5gpt Cut-Off Grade •Mining is now being conducted on two levels (975m and 995m), allowing Hudbay to compare the 975mperformance Level of cut&fill versus long-hole mining • First 12 rounds mined year to date c
Slide 12: The Footwall of the High Grade Gold Zone is Structurally Controlled
The Footwall of the High Grade Gold Zone is Structurally Controlled And Can be Traced and Followed by Mapping 975 m Level, Round 2 The footwall contact of the high grade gold zone be can visually identified during mapping and guide the direction of mining for the next round using a cut and fill mi
Slide 13: Lalor Gold Exploration Potential
Lalor Gold Exploration Potential: Additional Au and Au-Cu rich Mineralization Down-Plunge from Known Lenses • Exploration program at Lalor is testing the down plunge continuity of Au rich and Cu-Au rich lenses Lens 25 Possible extension of gold rich Lens 25 Lens 10 Possible Cu-Au feeder of Lens 10 b
Slide 14: Current Infrastructure Capacity is Sufficient for Planned Copper Gold Expansion to Lens 27
Current Infrastructure Capacity is Sufficient for Planned Copper Gold Expansion to Lens 27 Exhaust Shaft Production Shaft Chisel Ramp Exhaust Drift 1025 Exploration Drift Copper Gold Zone Lens 27 Ramp is currently advancing towards Lens 27, unlocking value for Lalor mine in 2019. No major capital
Slide 15: What is Next for Lalor?
What is Next for Lalor? • Continue the gold test mining program to validate mining method selection, production rate and head grade and to support trade-off studies for processing Au rich zones • Expand work on the Cu-Au rich Lens 27 with infill drilling, mine design and engineering. Mining is plann
Slide 16: 2018 Objectives
2018 Objectives Continue to focus on generating free cash flow and increasing net asset value Advance in-house brownfield growth opportunities • Complete Lalor paste plant and ramp up base metal ore throughput from Lalor to 4,500 tonnes per day • Pampacancha • Lalor gold Advance permitting and techn
Slide 17: Additional Information
Additional Information The scientific and technical information related to the Lalor mine contained in this presentation has been approved by Robert Carter, P.Eng., our General Manager Mining Operations, Manitoba Business Unit. Mr. Carter is a qualified person pursuant to NI 43-101. Information on t
Slide 18: Additional Information Cont'd
Additional Information Cont’d Table 2 below provides the coordinates, azimuth and dip of the mineralized intercepts reported in Table 1. Table 2: Supplemental information to the Lalor drill results From To Azimuth at Dip at Core Size Hole ID Easting Northing Elevation Easting Northing Elevation inte
Slide 19: Q1 2018 Presentation
Q1 2018 PRESENTATION May 3, 2018