Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q3 2023 Earnings Presentation
15 slides from Hudbay Minerals's earnings presentation, Nov 9, 2023
Slide 1: Q3 2023 Results Presentation
Q 3 2 0 2 3 R E S U LT S P R E S E N TAT I O N NOVEMBER 9, 2023
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: Delivering Record Quarter on Plan
DELIVERING RECORD QUARTER ON PLAN BROWNFIELD AND GROWTH INVESTMENTS GENERATING STRONG RETURNS PERU DELIVERING HIGHER GRADES COPPER MOUNTAIN INTEGRATION Pampacancha high copper and gold Adding a third operating asset grades drive strong production Focus on mining fleet ramp up and Delivered on antici
Slide 4: Record Levels of Production
RECORD LEVELS OF PRODUCTION NEAR DOUBLING OF COPPER EQUIVALENT PRODUCTION IN Q3 COPPER EQUIVALENT PRODUCTION BY REGION 93% QoQ increase in consolidated copper production to 42k tonnes 80 107% QoQ increase in consolidated gold 71.3 production to 101k ounces (CuEq tonnes 000s) 60 Higher production lev
Slide 5: Q3 2023 Consolidated Results
Q3 2023 CONSOLIDATED RESULTS STRONG OPERATING AND FINANCIAL PERFORMANCE KEY RESULTS SUMMARY Higher production levels in Peru and Q3 2023 Q2 20235 Q3 2022 Manitoba contributed to significantly lower Production1 cash costs Copper kt 42.0 21.7 24.5 Gold koz 101.4 49.0 53.2 Consolidated cash costs of $1
Slide 6: Peru Operations Review
PERU OPERATIONS REVIEW DRIVING INCREASED COPPER PRODUCTION SUMMARY OF PERU OPERATING STATISTICS Q3 copper production increased by 64% Q3 2023 Q2 2023 Q3 2022 compared to Q2 Constancia ore mined (million tonnes)1 1.2 3.6 6.3 Pampacancha ore mined (million tonnes)1 5.9 2.4 2.5 In line with our mine pl
Slide 7: Manitoba Operations Review
MANITOBA OPERATIONS REVIEW HIGHER ORE PRODUCTION LEVELS FROM THE LALOR MINE SUMMARY OF SNOW LAKE OPERATING STATISTICS 56,213 ounces of gold produced, a 59% Q3 2023 Q2 2023 Q3 2022 increase QoQ, due to higher grades and Ore mined (kt) 367.5 413.3 347.3 recoveries Combined Ore milled (kt) 402.4 380.5
Slide 8: British Columbia Operations Review
BRITISH COLUMBIA OPERATIONS REVIEW FIRST FULL QUARTER SINCE ACQUISITION SUMMARY OF COPPER MOUNTAIN OPERATING STATISTICS Copper production of 9.3k tonnes in Q3 Q3 2023 Copper recoveries of 80.9% in Q3 Ore mined (million tonnes)1 3.8 Strip ratio2 2.96 Mill availability of 83.5% impacted by high Ore mi
Slide 9: Copper Mountain Synergies Update
COPPER MOUNTAIN SYNERGIES UPDATE Operational Corporate Utilizing haul trucks within the existing fleet Only 50% of the fleet was operating prior to Hudbay’s ownership $9 million in 14 trucks were operating in June with plans to ramp up to 26 trucks, annual synergies increasing tonnes moved by 30
Slide 10: Continued Financial Discipline
CONTINUED FINANCIAL DISCIPLINE DELIVERING HIGHER CASH FLOWS, SPENDING REDUCTIONS AND DELEVERAGING INITIATIVES $480M $191M $111M Increased cash and cash equivalents to $245M Q3 revenue Q3 adj. EBITDA Q3 free cash flow1 Reduce net debt by $58M to $1,132M in Q3 +$168M increase +$110M increase +$102M in
Slide 11: Copper World Phase I PFS
COPPER WORLD PHASE I PFS DE-RISKED AND ENHANCED PHASE I WITH SIMPLIFIED MINE PLAN AND EXTENDED MINE LIFE $1.1B 19.2% 92k tonnes 20 year NPV (8%) IRR 10-yr avg. production mine life Phase I prefeasibility study completed in September 2023 Simplified mine plan requiring only state and local permit
Slide 12: Flin Flon Growth Opportunities
FLIN FLON GROWTH OPPORTUNITIES GROWTH POTENTIAL THROUGH EXPLORATION PARTNERSHIP AND TAILINGS REPROCESSING OPPORTUNITIES Exploration Partnership with Marubeni In July, established a framework for a multi-year exploration partnership focused on the discovery of new deposits within trucking distance
Slide 13: Snow Lake Growth Opportunities
SNOW LAKE GROWTH OPPORTUNITIES 250% INCREASE IN SNOW LAKE LAND PACKAGE WITH OPPORTUNITY TO APPLY MODERN GEOPHYSICS Rockcliff Acquisition Completed in September Consolidated Talbot deposit ownership Added 1,800 km2 of highly prospective land in Snow Lake Cook Lake Claims Acquired in June Lo
Slide 14: Hudbay Leading Copper Exposure
HUDBAY LEADING COPPER EXPOSURE WELL-POSITIONED WITH LEADING NEAR-TERM FREE CASH FLOW YIELDS, MEANINGFUL COPPER PRODUCTION AND FIRST QUARTILE CASH COSTS MEANINGFUL COPPER PRODUCTION LEADING LOW-COST PROFILE 2024E COPPER PRODUCTION1 2023E COPPER AISC3 362 226 166 102 63 57 54 34 31 LUN CS HBM SFR ERO
Slide 15: Questions
QUESTIONS 15