Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q4 2021 Earnings Presentation
17 slides from Hudbay Minerals's earnings presentation, Feb 24, 2022
Slide 1: Q4 2021 Results Presentation
Q4 2021 RESULTS PRESENTATION February 24, 2022
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: 2021 in Review
2021 IN REVIEW A YEAR OF INVESTMENT AND DELIVERY WHILE ADVANCING SEVERAL GROWTH INITIATIVES MANITOBA PERU USA Released phase 3 of Snow Lake 11% increased in Constancia’s Initial discovery of four deposits at gold strategy with 18% increase in copper reserves and 12% Copper World in Arizona, adjacent
Slide 4: 2021 Consolidated Results
2021 CONSOLIDATED RESULTS STRONG QUARTERLY AND ANNUAL PRODUCTION, CASH FLOW & EBITDA GROWTH KEY RESULTS SUMMARY Q4 copper, gold, silver and zinc Q4 2021 Q3 2021 2021 2020 production increased compared to Q3 Production1 Copper kt 28.2 23.2 99.5 95.3 2021 copper, gold and silver production Gold koz 64
Slide 5: Peru Operations Review
PERU OPERATIONS REVIEW STRONG Q4 OPERATING PERFORMANCE; ACHIEVED KEY ANNUAL PRODUCTION GUIDANCE SUMMARY OF PERU OPERATING STATISTICS Copper production 26% higher than Q3 due to increased throughput, grades and recovery Q4 2021 Q3 2021 2021 2020 Constancia ore mined (million tonnes)1 7.7 6.2 29.7 27.
Slide 6: Delivering on Investments in Peru
DELIVERING ON INVESTMENTS IN PERU PAMPACANCHA & CONSTANCIA ACHIEVED EXPECTED 2021 COPPER AND GOLD PRODUCTION GROWTH Q4 was the highest copper production quarter in Peru in 2021 as grades improved and mill performance was strong, resulting in the operations achieving full year production expectations
Slide 7: Manitoba Operations Review
MANITOBA OPERATIONS REVIEW SNOW LAKE OPERATIONS EXPANDING WHILE FLIN FLON OPERATIONS WIND DOWN SUMMARY OF MANITOBA OPERATING STATISTICS Production of copper, zinc, gold and silver Q4 2021 Q3 2021 2021 2020 increased during Q4 Ore mined (kt) 689 649 2,647 2,646 New Britannia mill continued to ramp up
Slide 8: Delivering on Investments in Manitoba
DELIVERING ON INVESTMENTS IN MANITOBA NEW BRITANNIA MILL ACHIEVED BEST-IN-CLASS RAMP-UP NEW BRITANNIA DAILY MILL THROUGHPUT The ramp up of New Britannia has performed better than top industry benchmark curves New Britannia mill expected to achieve design Throughput (tpd) throughput within six months
Slide 9: Growing Production Outlook
GROWING PRODUCTION OUTLOOK ENTERING A PERIOD OF SIGNIFICANT COPPER AND GOLD PRODUCTION GROWTH Completed ~$250M brownfield investment program in 2021 and now at an inflection point in terms of meaningful copper and gold production growth, which is expected to lead to significant growth in EBITDA Cu1
Slide 10: Copper World Project
COPPER WORLD PROJECT Total private land package Peach North Limb Copper World Elgin South Limb Broad Top Butte Bolsa SIGNIFICANT NEW COPPER DISCOVERY Discovered in early 2021, followed by an aggressive drill program 2017 Rosemont leading to an initial resource estimate in December 2021 Resource Pit
Slide 11: Copper World Project
COPPER WORLD PROJECT NEAR-SURFACE, HIGH-GRADE PORTION EXPECTED TO BE MINED EARLIER IN MINE LIFE Resources comprise both sulphides and oxides and are potentially amenable to flotation and heap leach processing methods COPPER WORLD 96Mt INDICATED 0.57% CuT Several deposits contain higher grade mineral
Slide 12: Growth Initiatives
GROWTH INITIATIVES SEVERAL OTHER EXPLORATION PROGRAMS UNDERWAY PERU MANITOBA Constancia Norte Underground 1901 extensions of Cu-Au feeder zone Ongoing drilling and scoping study activities to evaluate 1901 surface and underground drilling activities being conducted underground potential at Constanci
Slide 13: 3-Year Production Guidance
3-YEAR PRODUCTION GUIDANCE CONTINUED COPPER AND GOLD PRODUCTION GROWTH 3-YEAR PRODUCTION GUIDANCE SUMMARY 2022 consolidated copper and gold Contained metal in 2022 Guidance 2023 Guidance 2024 Guidance production are expected to increase Concentrate and Doré1 by 17% and 28%, respectively, from Peru 2
Slide 14: 2022 Cost Guidance
2022 COST GUIDANCE CAPITAL EXPENDITURES1 ($M) EXPLORATION EXPENDITURES ($M) Peru 25.0 Sustaining capital Manitoba 15.0 Arizona and other 25.0 Peru2 105.0 Total exploration expenditures 65.0 Manitoba3 115.0 Capitalized spending (25.0) Total sustaining capital 220.0 Total exploration expense 40.0 BUSI
Slide 15: Copper Growth Pipeline
COPPER GROWTH PIPELINE HUDBAY OFFERS LEADING COPPER PRODUCTION GROWTH AND COPPER RESOURCE OPTIONALITY Meaningful near-term Cu production growth with high quality organic pipeline offering significant long-term growth LEADING NEAR-TERM COPPER PRODUCTION GROWTH SIGNIFICANT GROWTH IN COPPER RESOURCES P
Slide 16: Diversified Mid-Tier Copper Producer
DIVERSIFIED MID-TIER COPPER PRODUCER FOCUSED ON DELIVERY REVENUE AND RESERVES BY METAL 2022 KEY OBJECTIVES Revenue1 Reserves DELIVER meaningful copper and gold production growth to generate positive cash flow and strong returns on invested capital 9% 2% 4%6% ACCELERATE drilling, economic studies and
Slide 17: For more information contact
For more information contact: Candace Brûlé Vice President, Investor Relations 416.814.4387 | candace.brule@hudbay.com