Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Shareholder Meeting (May 2015)
29 slides from Hudbay Minerals's shareholder meeting presentation, May 22, 2015
Slide 1: Annual and Special Meeting of Shareholders
Annual and Special Meeting of Shareholders May 22, 2015 HBM AGM PRESENTATION
Slide 2: Warren Holmes, Interim Chairman
Warren Holmes Interim Chairman HBM AGM PRESENTATION
Slide 3: David Garofalo, President and Chief Executive Officer
David Garofalo President and Chief Executive Officer HBM AGM PRESENTATION
Slide 4: Cautionary Information
Cautionary 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, other tha
Slide 5: Cautionary Information (continued)
Cautionary Information (continued) 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, the failure to successfully re-negotiate the recentl
Slide 6: Cautionary Information (continued)
Cautionary Information (continued) The technical and scientific information in this presentation related to the Constancia project has been approved by Cashel Meagher, P. Geo, Hudbay's Vice-President, South America Business Unit. The technical and scientific information related to all other sites an
Slide 7: A Year of Celebration
A Year of Celebration $1.7 billion Constancia copper mine successfully started up in Peru $500 million Lalor and Reed mines started in Manitoba on time and under budget First Constancia concentrate vessel +$1 billion Rosemont copper project departing for China acquired in Arizona 100th anniversary o
Slide 8: Flin Flon Ore Discovery Centennial
Flin Flon Ore Discovery Centennial AGM PRESENTATION 8
Slide 9: Market Update
Market Update AGM PRESENTATION 9
Slide 10: Copper Price Outlook
Copper Price Outlook Copper price facing downward pressure from a strong USD and concerns over slowing growth in China Prices expected to strengthen over the medium-term Long-term copper fundamentals continue to remain strong due to supply constraints arising from limited mines coming on-line, decli
Slide 11: Zinc Price Outlook
Zinc Price Outlook Many analysts foresee a deficit in the zinc market in 2015 due to the closure of key producing mines Poor profitability amongst Chinese producers constraining supply and contributing to deficit In the medium to long-term, outlook remains positive due to a projected shortage of con
Slide 12: Gold Price Outlook
Gold Price Outlook High volatility in global financial variables impacting gold Uncertainty in Europe will continue to be a tailwind for gold Easing of Indian import restrictions should help physical demand Mine production expected to be flat year over year due to limited investment in new projects
Slide 13: 2014: Year in Review
2014: Year in Review AGM PRESENTATION 13
Slide 14: 2014 Report Card
2014 Report Card ACHIEVED GROWTH OBJECTIVES IN 2014 Attained commercial production at Lalor and Reed mines Copper concentrate production at Constancia began as expected during Q4 2014 Underground exploration drilling started at Lalor Successfully integrated Rosemont into Hudbay 2014 zinc and preciou
Slide 15: 2015: Realizing our Vision
2015: Realizing our Vision AGM PRESENTATION 15
Slide 16: Near-Term Production Growth
Near-Term Production Growth1 OPPORTUNITY FOR A RE-RATE IS SIGNIFICANT AS WE DELIVER GROWTH 320% 145% 50% INCREASE IN CU PRODUCTION INCREASE IN AU-EQ. PRODUCTION2 INCREASE IN ZN PRODUCTION (kt) (koz) (kt) 200 250 150 200 150 100 150 100 100 50 50 50 - 3 - - 3 3 2014A 2015G 2016E 2014A 2015G 2016E 201
Slide 17: Our South America Business
Our South America Business 100%-OWNED CONSTANCIA COPPER MINE IN PERU 2013 Achieved commercial production in April PERU ahead of market expectations Lima Constancia Approximately 21 million hours worked with only one lost time injury 2015 New industrial complex and large unexplored land position pres
Slide 18: Constancia to Deliver Decades of Low Cost Copper Production
Constancia to Deliver Decades of Low Cost Copper Production Constancia tailings thickener Crushed ore to be processed in Constancia mill Constancia mill observing Earth Hour, March 2015 Constancia flotation cell AGM PRESENTATION 18
Slide 19: Our Manitoba Business
Our Manitoba Business STEADY PRODUCTION AND PROVEN BUSINESS MODEL IN MANITOBA MANITOBA 777 Lalor Reed Winnipeg AGM PRESENTATION 19
Slide 20: 777 Mine
777 Mine STEADY, LOW-COST PRODUCTION • 6 lost-time accidents over past 6 years • Mature mine with steady cost performance • Exploration to focus on recently optioned War Baby claim 777 headframe 777 mechanical shop AGM PRESENTATION 20
Slide 21: Lalor Mine
Lalor Mine PRODUCTION; PHASE 2 RAMP-UP Over 1,000 days without a lost-time accident Main production shaft complete and operating at a steady state; capacity of 6,000 tonnes per day (ore + waste) Aerial view of Lalor project site Commissioned upgraded Snow Lake concentrator with production capacity o
Slide 22: Lalor Exploration
Lalor Exploration PHASE 2 UNDERGROUND EXPLORATION PROGRAM TO COMMENCE Phase 1 Lalor Cross-Section with Exploration Platform 14 hole 4,500 metre 0m program confirms high Production grade nature of existing Shaft copper gold zone 500m Phase 2 Exploration Planned 400 metre ramp Ramp extension to provid
Slide 23: Reed Mine
Reed Mine COMMERCIAL PRODUCTION ACHIEVED 2-year construction program completed with no lost time accidents Aerial view of Reed project site Achieved commercial production ahead of guidance and under budget Grand opening for the Reed mine AGM PRESENTATION 23
Slide 24: Our Arizona Business
Our Arizona Business HUDBAY ACQUIRED CONTROL OF ROSEMONT PROJECT IN JULY 2014 ARIZONA Tucson Rosemont AGM PRESENTATION 24
Slide 25: Rosemont Project
Rosemont Project 80%-OWNED1 COPPER PROJECT IN ARIZONA, USA 43 hole 30,000 metre drill program confirms large scale project similar to Constancia Detailed engineering and metallurgical test program underway; feasibility study expected to confirm robust economics Crusher area of the Rosemont project (
Slide 26: Going Forward
Going Forward AGM PRESENTATION 26
Slide 27: Global Positioning on 2019E Copper Production and Costs
Net Cash Costs (US$/lb Cu) Copper Production (bn lbs) 0.0 1.0 2.0 3.0 4.0 $0.00 $2.50 $5.00 ($7.50) ($5.00) ($2.50) Norilsk Codelco Jinchuan Freeport Boliden Glencore Vale BHP Hudbay (2019) Southern Cu Hudbay (2019) PF First Quantum Hudbay (2014) Rio Tinto Newcrest KGHM UGMK Antofagasta Lundin Anglo
Slide 28: High Quality Copper Growth Story
High Quality Copper Growth Story Sector leading growth in copper, zinc and gold Attractive operating cost structure and improving unit margins with ramp up of new low-cost production Low geopolitical risk given focus on mining-friendly jurisdictions in the Americas Track record as mine developers an
Slide 29: Annual and Special Meeting of Shareholders
Annual and Special Meeting of Shareholders May 22, 2015 HBM AGM PRESENTATION