Slide 1: Copper World Site Visit Presentation
COPPER WORLD SITE VISIT PRESENTATION October 17-18, 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: Site Visit Schedule
SITE VISIT SCHEDULE Monday, October 17th 3:00 pm Hudbay management presentations at the JW Marriott Starr Pass 6:00 pm Cocktail reception at the JW Marriott Starr Pass 7:00 pm Dinner with Hudbay management at the JW Marriott Starr Pass Tuesday, October 18th GROUP A GROUP B 7:00 am Depart JW Marriott
Slide 4: Hudbay Site Tour Participants
HUDBAY SITE TOUR PARTICIPANTS Peter Kukielski Andre Lauzon Eugene Lei President & CEO SVP & COO SVP & CFO Olivier Javier Del Río Tavchandjian Candace Brûlé Matt Taylor VP South VP Exploration & VP Investor Executive Director, America and USA Technical Relations Metallurgy Services Technical Services
Slide 5: Arizona Business Unit
ARIZONA BUSINESS UNIT Miami Pinto Valley Phoenix Resolution ARIZONA, US Ray Morenci Florence Safford MINE TOWN RAIL ROAD Silver Bell Phoenix Tucson Tucson Gunnison Mission COPPER WORLD COMPLEX Sierrita COPPER WORLD COMPLEX United States Economic Risk Business Political Risk Commercial Risk Financing
Slide 6: Project History
PROJECT HISTORY August 2019 Construction suspended & appeal (2007 – 2014) (2014 – 2019) process initiated Approach to Rosemont development centered Acquired Augusta in 2014 assuming ownership of the around pursuing a large NPV project with the Rosemont project federal permitting process Technical wo
Slide 7: Execution of Alternative Strategy
EXECUTION OF ALTERNATIVE STRATEGY EVALUATING OPTIONS TO UNLOCK VALUE IN ARIZONA SINCE AUGUST 2019 Conducted Internal Study on Private-only Plan in 2019 Discovered New Mineralization on Patented Mining Claims Initiated a drill program in 2020 in support of a private land development plan; subsequentl
Slide 8: Development Strategy
DEVELOPMENT STRATEGY (Completed) (In Progress) EXPLORATION ADDITIONAL PRIVATE INITIAL COPPER PFS STATE PEA DRILLING LAND PURCHASES WORLD RESOURCE COMPLETION PERMITTING ✓Identification of ✓Purchased +2400 ✓310 holes used to define ✓Combines initial • PFS engineering ✓Process initiated in historic min
Slide 9: Exploration Timeline to Initial Resource
EXPLORATION TIMELINE TO INITIAL RESOURCE Following review of Copper World Program Initial drill results Existing deposits historical data, initial initial mineral expanded to identify 4 deposits and further defined and 15,000-foot drill resource estimate 40,000 feet showcase significant additional 3
Slide 10: Historic Copper Mining District
HISTORIC COPPER MINING DISTRICT RICH HISTORY OF MINING IN THE HELVETIA REGION 1874 - 1969 10
Slide 11: Initial Discovery
Private Private Land Land Claims Claims INITIAL DISCOVERY Federal Federal Land HistoricalHistorical Land Unpatented Unpatented Mines Mines Pre-2020Pre-2020 Drilling Drilling 2020 Drilling 2020 Drilling Claims Claims 2021 Planned Drilling Drilling 2021 Planned FOUR DEPOSITS LOCATED CLOSE TO SURFACE P
Slide 12: Expanded Mineralization
EXPANDED MINERALIZATION Peach A TOTAL OF SEVEN DEPOSITS IDENTIFIED North Limb Copper World September 2021 – announced the discovery of three additional deposits for a total of seven deposits at Elgin Copper World South Limb Broadtop Patented mining claims Butte Bolsa, North Limb and South Limb on pr
Slide 13: Private Land Added to Support Infrastructure
PRIVATE LAND ADDED TO SUPPORT INFRASTRUCTURE PURCHASED +2400 ACRES OF ADDITIONAL PRIVATE LAND TO HOST INFRASTRUCTIRE AND TAILINGS Additional material could be Acquired in 2021 for tailings disposal mined within private land limits tailings disposal but room for waste, tailings and leach pads is a ke
Slide 14: 2022 PEA Highlights
2022 PEA HIGHLIGHTS TWO-PHASED APPROACH WITH PRIVATE LAND FOR FIRST 16 YEARS Sulfide and oxide resources at low strip ratio were delineated in the Copper World areas (80% already in indicated category) with a large portion on private land The East deposit (formerly Rosemont) resource model was redon
Slide 15: Early Site Works & Exploration
EARLY SITE WORKS & EXPLORATION PROJECT DE-RISKING ACTIVITIES Initial grading and clearing activities commenced in April 2022 Drill rigs continue to turn at site conducting infill drilling in support of future feasibility studies Phase I land clearing in proposed tailings areas, May 2022 Phase I land
Slide 16: Recent Site Activity
RECENT SITE ACTIVITY VIDEO OF EQUIPMENT AT COPPER WORLD To show short video of recent activity at Copper World site 16
Slide 17: Supporting Domestic U.S. Copper Supply Chain
SUPPORTING DOMESTIC U.S. COPPER SUPPLY CHAIN GREEN TRANSITION AND DEMAND FOR COPPER IN THE U.S. IS ACCELERATING Copper cathodes produced at the Copper World GROWING U.S COPPER CONSUMPTION Complex are expected to be sold entirely to U.S. 3000 domestic customers Global mine production, and ultimately
Slide 18: Environmental Stewardship
ENVIRONMENTAL STEWARDSHIP HUDBAY OPERATES IN A MANNER THAT DEMONSTRATES OUR COMMITMENT TO THE ENVIRONMENT Near-term GHG mitigation is focused on energy efficiency at our LEADING EMISSIONS RANKING operations t CO2e/t CuEq Rank Over 50% of our total energy consumption is from renewable Boliden 0.9 1 s
Slide 19: Designed to Reduce Energy & GHG Emissions
DESIGNED TO REDUCE ENERGY & GHG EMISSIONS “MADE IN AMERICA” COPPER TARGETS GHG EMISSION REDUCTIONS Copper World Complex copper cathode production is expected to be sold entirely to domestic U.S. customers Reduces the operation's total energy consumption, GHG emissions and sulfur (SO2) emissions by e
Slide 20: PEA Summary
PEA SUMMARY H' DBAY
Slide 21: Copper World Complex
COPPER WORLD COMPLEX ROBUST PEA DEMONSTRATES THE NEXT LEG OF MEANINGFUL COPPER PRODUCTION GROWTH AT HUDBAY Phase I provides attractive economics producing 100kt Cu p.a. at first quartile cash costs over a 16-year mine life requiring state-level permits only Designed to produce “Made in America” copp
Slide 22: 2022 PEA Two-Phased Approach
2022 PEA TWO-PHASED APPROACH PHASE I (PRIVATE LAND) PHASE II (FEDERAL LAND) 16 years with state permitting at 60 kstpd mill feed All remaining economic sulfide and oxide resources and additional 20 kstpd on average oxide leach are mined with federal permits (NEPA) in place When there is available co
Slide 23: Land Availability: Key Constraint During Phase I
LAND AVAILABILITY: KEY CONSTRAINT DURING PHASE I LAND AVAILABLE TO OPERATE DURING PHASE I WITHOUT FEDERAL PERMIT REQUIREMENTS IS THE MAIN CONSTRAINT During Phase I, land Phase I Phase I + II available to dispose tailings Material Mined Material Mined (TSF), waste rocks (WRF) and heap leach pads (HLP
Slide 24: Phase I Pre-Feasibility Study and Permits in 2023
PHASE I PRE-FEASIBILITY STUDY AND PERMITS IN 2023 ALIGNMENT BETWEEN KEY STATE PERMITS & ENGINEERING STUDIES Received first state-level permit, Mined Land Reclamation Plan (MLRP), in October 2021, and subsequent amendment received in July 2022 Advance pre-feasibility study and state-level permits for
Slide 25: Mine Plan
MINE PLAN H' DBAY
Slide 26: 2021 Copper World Initial Resource Estimates
2021 COPPER WORLD INITIAL RESOURCE ESTIMATES SIGNIFICANT HIGH-GRADE PORTION CLOSE TO SURFACE – MAJORITY ON PRIVATE LAND (West) East Deposit 2017 Resource Pit 1 East Deposit 2017 Reserve Pit 1 1. Mineral resources as of December 1, 2021 26
Slide 27: Copper World Complex
COPPER WORLD COMPLEX EAST DEPOSIT 2022 REVISED RESOURCE ESTIMATES RESULT IN HIGHER GRADES East Deposit revised using Constancia’s resource methodology Upper plate East Deposit 2022 resource model based on same data as in 2017 but methodology differs on three aspects: East Deposit Honouring four stru
Slide 28: Pit Optimization Combines Flotation and Leaching
PIT OPTIMIZATION COMBINES FLOTATION AND LEACHING INITIAL STEP: OVERALL PIT OPTIMIZATION IGNORES LAND AND FEDERAL PERMITTING CONSTRAINTS A revenue factor of 1.0 was used for mineral resource estimates (break-even economics at $3.45/lb Cu): East Pit Short Tons Metric Tonnes Cu (%) (millions) (millions
Slide 29: Pit Optimization Mining Phases
PIT OPTIMIZATION MINING PHASES PIT SHELLS USED AS A BASIS TO DESIGN MINING PHASES FOR EACH PIT, WHILE ALSO CONSIDERING PERMITTING CONSTRAINTS Phase I Mining RO_PH04 is in East both Phase I Phase II Mining & Phase II East Broadtop Bolsa BTB West West Peach & Elgin P&E 29
Slide 30: Life of Mine Production Schedule
LIFE OF MINE PRODUCTION SCHEDULE MINE PRODUCTION SCHEDULE SMOOTHED TO MATCH MILL CAPACITY, FLEET SIZE AND TO MINIMIZE RE-HANDLING Significantly lower strip ratio of less than 1.0 in first five years End of Phase I Low strip ratio < 1.0 in first five years FEED mined 30
Slide 31: Minimum Pre-Stripping at Peach-Elgin & Broadtop
MINIMUM PRE-STRIPPING AT PEACH-ELGIN & BROADTOP EARLY MATERIAL FROM PEACH-ELGIN AND BROADTOP – LOW STRIP AND PROVIDES ROOM FOR FUTURE WASTE DISPOSAL 34MT moved in year of pre-stripping includes: 10.6MT of waste 6.8MT of flotation feed processed in year 1 3.5MT of high grade ROM leach feed 13.2MT of
Slide 32: Production Schedule Based on Milling Capacity
PRODUCTION SCHEDULE BASED ON MILLING CAPACITY MINE PRODUCTION WAS CLASSIFIED AS FLOTATION OR LEACH FEED DEPENDING ON HIGHEST NSR Mine Plan – Mill feed Mine production was optimized based on milling capacity of 60kstpd End of Phase I during Phase I and expanded to 90kstpd during Phase II Drivers: Mai
Slide 33: Copper World Complex by Deposit
COPPER WORLD COMPLEX BY DEPOSIT Peach Elgin West Broadtop Bolsa East 100% Peach, Elgin, West and East deposit 90% Broadtop deposits contribute Phase I Phase II contributes 100% ~90% of mined production for 80% the first five years (-1 to 4) 70% % Mined Production 60% ~50% of mined production during
Slide 34: Processing
PROCESSING H' DBAY
Slide 35: PEA Processing Design Objectives
PEA PROCESSING DESIGN OBJECTIVES PROCESSING DESIGN TARGETED SEVERAL ENHANCEMENTS OVER 2017 FEASIBILITY STUDY OBJECTIVES CHOSEN DESIGN ELEMENTS Process the oxides at Copper World and Oxide ROM heap leach East deposits Concentrate leach facility Produce a finished product on site to supply the U.S. do
Slide 36: Processing Flowsheet
PROCESSING FLOWSHEET STANDARD SULFIDE AND OXIDE PROCESSING FLOWSHEET TO PRODUCE CATHODE Oxide Heap Comminution Leach Precious Concentrate Leach Metal Circuit Cu/Mo Cathode Flotation Production SX/EW Sulfur Recovery & Acid Production 36
Slide 37: Chosen Processing Design Realizes Synergies
CHOSEN PROCESSING DESIGN REALIZES SYNERGIES MAXIMIZING ECONOMIC AND ENVIRONMENTAL BENEFITS Maximizing project economics by capturing synergies between oxides and sulfides Standard flowsheet for concentrating sulfides and leaching oxides Sulfide concentrate leaching process connects sulfides and oxid
Slide 38: Modern Mine Design Reduces Energy Consumption & Emissions
MODERN MINE DESIGN REDUCES ENERGY CONSUMPTION & EMISSIONS COPPER CATHODE PRODUCTION ELIMINATES THE NEED FOR OVERSEAS SMELTING AND REFINING Mine Grinding & Crushing Eliminating shipping, smelting and refining expected to result in: 10% lower energy consumption Leaching 10-15% lower GHG emissions Flot
Slide 39: Process Plant Video
PROCESS PLANT VIDEO 3D VISUALIZATION OF PROCESS DESIGN To show Copper World processing plant video 39
Slide 40: Hardness Testwork
HARDNESS TESTWORK BWi (preliminar) SPI & BBWI 14,0000 Western pit material is measurably softer than the 12,0000 East pit material. Allows for deferral of pebble crusher 10,0000 BWi [kWh/st] and operation with low media charge levels 8,0000 6,0000 Additional Peach, Elgin and West samples are in proc
Slide 41: Flotation Testwork
FLOTATION TESTWORK Controlled Potential Sulfidization (CPS) has been employed on whole of ore to improve the recovery of copper oxides (up to 58% rougher recovery) and tarnished/oxidized copper sulfides. High realized recoveries from oxides and secondary copper due to change in tested reagent scheme
Slide 42: Oxide Leaching Testwork
OXIDE LEACHING TESTWORK COLUMN LEACH TEST WORK ELGIN – CU EXTRACTION VS PH OF PLS Preliminary column leach test work ongoing Target PH of PLS to Data modelled to obtain preliminary acid limit acid consumption consumption 𝑙𝑏 𝐴𝑐𝑖𝑑 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛 = 6.08 ∗ 𝐶𝑎 + 3.99 𝑡 Variability mini…
Slide 43: Concentrate Leach Testwork
CONCENTRATE LEACH TESTWORK PROVEN AND COMMERCIALIZED TECHNOLOGY Concentrate leaching has been around since the 1980s More than 25 operations have concentrate leach facilities • Hudbay’s hydrometallurgical zinc plant in Flin Flon • Freeport’s Morenci and Bagdad copper mines in Arizona • First Quantum
Slide 44: Economics
ECONOMICS H' DBAY
Slide 45: Robust Project Economics
ROBUST PROJECT SUMMARY OF KEY METRICS (at $3.50lb Cu) ECONOMICS Valuation Metrics (Unlevered) METRIC 1 UNIT Phase I Phase II LOM Net present value @ 8% (after-tax) $ millions $1,097 $947 $2,044 Phase I - 16 year mine life Net present value @ 10% (after-tax) $ millions $741 $555 $1,296 Cu production
Slide 46: Highly Sensitive to the Copper Price
HIGHLY SENSITIVE TO THE COPPER PRICE At $4.00/lb Cu, the Phase I NPV10% increases to $1.2B and IRR increases to 21% At $4.00/lb Cu, the LOM NPV10% increases to $1.9B and IRR increases to 22% COPPER PRICE ($ MILLONS NPV10%) DISCOUNT RATE ($ MILLIONS NPV) Phase I LOM 2,206 Phase I LOM 2,559 1,903 2,04
Slide 47: Capital Costs
Total $M $2,559 $2,308 $4,867 GROWTH CAPITAL DETAILS - EPCM METRIC UNIT Phase I Phase II LOM CAPITAL COSTS Sitewide Mining $M $M $15 $38 $5 $0 $20 $38 Primary crushing $M $31 $33 $64 Sulfide plant $M $227 $144 $371 Phase I Growth Capital: $1.9B Molybdenum plant $M $15 $0 $15 Reagents $M $9 $5 $13 Bo
Slide 48: Capital Intensity
CAPITAL INTENSITY OPEN PIT COPPER PROJECTS IN THE AMERICAS ($/TONNE CU) $38,028 PEA Feasibility In-Construction / Recently Constructed $33,927 $29,048 $25,000 $24,876 $24,567 $23,595 $19,637 $19,422 $17,967 $17,640 NorthMet Casino QB2 Quellaveco(1) Santo Schaft Creek Josemaria Constancia Copper Worl
Slide 49: Capital Cost Profile
CAPITAL COST PROFILE ($M) Growth Sustaining Deferred Stripping 1,007 15 28 42 Sustaining Capital consists of: 572 • Fleet replacement • Equipment repairs 443 • Tailings expansion 443 7 • Heap leach expansion 338 • Process plant maintenance 28 0 179 4 15 10 2 11 5 18 1 20 31 35 29 72 52 50 12 15 11 1
Slide 50: Operating Costs
OPERATING COST DETAILS - MINING OPERATING COSTS Labor Maintenance METRIC UNIT $M $M Phase I $340 $398 Phase II $858 $910 LOM $1,198 $1,307 Fuel $M $264 $623 $887 Blasting $M v $166 $473 $639 Indirect $M $175 $554 $729 Opex estimates were developed utilizing Other $M $35 $86 $121 budget quotes from d
Slide 51: Phase I Production Profile
Phase I Average Annual PHASE I PRODUCTION PROFILE Production: 98.7kt Cu Cash Costs: $1.15/lb Cu Copper World (kt Cu) Additional Cathode Output (kt Cu) AISC: $1.44/lb Cu Cash Cost Excluding Purchased Concentrate (US$ / lb Cu) AISC Excluding Purchased Concentrate (US$ / lb Cu) $1.38 $1.63 $1.72 $1.63
Slide 52: Phase I Cash Flow Profile
PHASE I CASH FLOW PROFILE Net Cash Flow Phase II Capex Cumulative Cash Balance $4,000 Cash generated in excess of ~$3 bn $3,000 $450 $436 $393 $404 $380 $372 $373 $338 $357 $348 $342 $326 $309 $320 $2,000 $286 $240 Cumulative Cash Balance (US$ mm) $1,000 $ mm – ($47) Payback achieved after 5 years o
Slide 53: Phase II Production Profile
Phase II Average Annual PHASE II PRODUCTION PROFILE Production: 123.3kt Cu Cash Costs: $1.11/lb Cu Copper World (kt Cu) Additional Cathode Output (kt Cu) AISC: $1.42/lb Cu Cash Cost Excluding Purchased Concentrate (US$ / lb Cu) AISC Excluding Purchased Concentrate (US$ / lb Cu) $1.19 $1.68 $1.49 $1.
Slide 54: Phase II Cash Flow Profile
PHASE II CASH FLOW PROFILE Net Cash Flow Closure Cost Cumulative Cash Balance $15,000 $651 $611 $12,500 $594 $561 Cumulative Cash Balance (US$ mm) $489 $495 $488 $468 $470 $459 $10,000 $452 $364 $358 $373 $379 $369 $383 $353 $340 $7,500 $326 $318 $323 $302 $305 $ mm $290 $267 $246 $240 $5,000 $2,500
Slide 55: Three Prerequisites for Copper World Sanctioning
THREE PREREQUISITES FOR COPPER WORLD SANCTIONING 3Ps – PRUDENT FINANCING STRATEGY TO DRIVE INVESTMENT DECISION TO PROJECT SANCTION Hudbay is entering a period of significant near-term free cash flow generation over the next several years after the completion of our brownfields reinvestments program
Slide 56: Permitting
PERMITTING H' DBAY
Slide 57: Phase I & Phase II Permits
PHASE I & PHASE II PERMITS PHASE I (PRIVATE LAND) PHASE II (FEDERAL LAND) Air Quality Control Permit (ADEQ) Mine Plan of Operations (USFS and BLM) Required before beginning construction of any NEPA – required for any major federal action that emissions unit could have significant environmental impac
Slide 58: Ninth Circuit Court of Appeals Decision
NINTH CIRCUIT COURT OF APPEALS DECISION NET IMPACT IS FAVOURABLE FOR COPPER WORLD PHASE II The 9th Circuit Court of Appeals 2-1 split decision issued in May 2022 did not agree with a key part of the July 2019 District Court’s decision – that the U.S. Forest Service (USFS) must review off-claim minin
Slide 59: Waters of the United States (WOTUS)
WATERS OF THE UNITED STATES (WOTUS) Permit under Sect. 404 of the Clean Water Act is required prior to filling or disturbing WOTUS If a 404 Permit is required, NEPA, Sect. 106 consultation & Sect. 7 consultation will also be required Current test for WOTUS is “significant nexus” to a “traditionally
Slide 60: Traditionally Navigable Waters
TRADITIONALLY NAVIGABLE WATERS 60
Slide 61: State Level Permitting Timeline
STATE LEVEL PERMITTING TIMELINE EXPECT TO RECEIVE ALL KEY STATE LEVEL PERMITS BY MID-2023 Submitted initial Received Expected submission Mined Land approved MLRP Received amended Expected receipt of of Air Quality Permit Reclamation Plan from the Arizona MLRP from the Arizona APP and AQP (AQP) to AD
Slide 62: Prefeasibility Study and Upside Opportunities
PREFEASIBILITY STUDY AND UPSIDE OPPORTUNITIES
Slide 63: Updates to PEA Technical Work
UPDATES TO PEA TECHNICAL WORK GEOLOGY & MINE PLAN FACILITIES & INFRASTRUCTURE Geological envelopes and block model updated for infill Progression of designs for PFS facilities with consultants drilling Wood Group Results compared with the PEA study monitoring • Open Pits tonnage, grade, volume, and
Slide 64: Infill Drilling and Field Works
INFILL DRILLING AND FIELD WORKS Infill drilling to convert inferred to indicated resources in the private land pits and to maximize proven reserves in the PFS; completed 89,501 ft of drilling in Q2 (total first 6 months: 166,413 ft) Assay results received by end of July have confirmed the tonnage an
Slide 65: Processing Trade-Off & Modularization
PROCESSING TRADE-OFF & MODULARIZATION CONCENTRATE LEACHING TECHNOLOGY TIMING OF CONCENTRATE LEACHING & OXIDE PROCESSING PRESSURE OXIDATION (“POX”) OR ALBION Scenarios run using various POx pressures and Exploring the potential to decrease upfront capital while temperatures / Albion preserving NPV Pr
Slide 66: PFS Update – Layout Optimization
PFS UPDATE – LAYOUT OPTIMIZATION PROCESS PLANT Optimized Layout for both Albion and POx Use of natural topography Minimize cut/fill Fit for purpose plant Improved process flow Next Steps Work with Mining for Haul Road Optimization Building and infrastructure layout 66
Slide 67: PFS Update – Layout Optimization
PFS UPDATE – LAYOUT OPTIMIZATION PROCESS PLANT Crushing Plant Open MSE Wall Construction Existing Sandvick Open Stockpile Conc Filtration and Handling Grinding CW Conc Filter Building and Storage Open Mill Building Third Party Conc Receipt Space consideration for pebble crusher 67
Slide 68: Project Upside Opportunities
PROJECT UPSIDE OPPORTUNITIES EVALUATING MANY OPPORTUNITIES TO FLEX THE SCOPE & TIMING OF THE PROJECT Expanding private land Phase I Acquire additional private land to unlock the full potential of mining on private land / extend beyond 16 years Optimization opportunities to further enhance project ec
Slide 69: Bulk Sampling
BULK SAMPLING OPPORTUNITY TO COMPLETE BULK SAMPLING AS DE-RISKING MEASURE Evaluate the potential for early bulk sampling in high grade, near surface areas of the West and Peach-Elgin pits De-risking measure to test grade continuity, variable cut-off effectiveness and metallurgical strategies Peach E
Slide 70: Recent Exploration Success
RECENT EXPLORATION SUCCESS BOLSA DEPOSIT GROWS AND CONNECTS WITH THE EAST DEPOSIT 2022 drilling has confirmed the continuity of mineralization between the Bolsa and East deposits along the backbone fault and extended the width and depth of the mineralized envelope The gain in volume has the potentia
Slide 71: Site Tour Agenda
SITE TOUR AGENDA H' DBAY
Slide 72: Tour Stops
TOUR STOPS Tour Stops 1. Peach-Elgin 2. Copper World 3. Gunsight Pass 4. Bolsa & East Deposits 5. Lopez Pass 2 1 5 3 4 72
Slide 73: Stop 1 – Peach-Elgin Overlook
STOP 1 – PEACH-EGLIN OVERLOOK You are here 73
Slide 74: Stop 2 – Copper World
STOP 2 – COPPER WORLD You are here Copper World Mine Shaft 74
Slide 75: Stop 3 – Gunsight Pass
STOP 3 – GUNSIGHT PASS Broadtop Butte You are here Rosemont Pit Cu Oxides at Broad Top Butte 75
Slide 76: Stop 4 – Bolsa and East Deposits
STOP 4 – BOLSA AND EAST DEPOSITS You are here 76
Slide 77: Stop 5 – Lopez Pass
STOP 5 – LOPEZ PASS You are here King Mine 3d 1.38%Cu 440ft Incl. 4.20%Cu 70ft Planned Holes Stop 1 Peach Stop 2 Copper World 77
Slide 78: Safety Orientation
SAFETY ORIENTATION IMPORTANT SITE SAFETY INFORMATION To show site safety video 78
Slide 79: Regional Exploration
REGIONAL EXPLORATION H' DBAY
Slide 80: Regional Geology
REGIONAL GEOLOGY Hudbay’s land position extends far beyond the deposits defined so far and included in the PEA Mineralization usually occurs where we have the combination of porphyry intrusives, sedimentary rocks and regional faults See typical cross section below: Cross section 80
Slide 81: Cu Mineralization in Both Sulfides and Oxides
CU MINERALIZATION IN BOTH SULFIDES AND OXIDES Oxides in sandstone unit Sulfides in limestone hosted (Bolsa) skarn (Broadtop Butte) Copper mineralization occurs as both sulfides and oxides in a variety of settings: Dominant high-grade mineralization is copper sulfides (chalcopyrite) in skarn hosted b
Slide 82: Five Geophysical Targets
FIVE GEOPHYSICAL TARGETS IDENTIFIED FROM IP SURVEYS IN THE IMMEDIATE VICINITY OF KNOWN DEPOSITS These targets are on federal lands and have not yet been tested; drill permitting process could take ~12 months Cross-section through anomaly IP4 (Looking West) Federal land Private land 82
Slide 83: Untested Exploration Upside
UNTESTED EXPLORATION UPSIDE PROSPECTIVITY OF ENTIRE UNPATENTED MINERAL CLAIM PACKAGE YET TO BE FULLY EXPLORED IP coverage to be expanded (currently covers only 25% of the entire footprint of the mineral claims) Other prospective areas based on USGS surface geological maps have not been considered in
Slide 84: Additional Planned Geophysics
ADDITIONAL PLANNED GEOPHYSICS POTENTIAL TO IDENTIFY ADDITIONAL PORPHYRY AND SKARN MINERALIZATION Direct Current Induced Polarization (DCIP) technology can help identify porphyry and skarn mineralization 230 line kilometres of proposed coverage would be required to explore the remaining claims and pl
Slide 85: Appendix
APPENDIX H' DBAY
Slide 86: Phase I: Physicals
PHASE I: PHYSICALS Unit PHASE I Y-03 Y-02 Y-01 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Resources Mined Pre-strip PHASE I Copper World deposits East deposit Total resources mined Mt Mt Mt 216.2 224.9 441.1 - - - - - - 21.4 - 21.4 24.2 - 24.2 26.5 - 26.5 25.7 1.0 26.7 20.8 10.7
Slide 87: Phase I: Unit Costs
PHASE I: UNIT COSTS Unit PHASE I Y-03 Y-02 Y-01 Y01 Y02 Y03 Y04 Y05 Y06 Y07 Y08 Y09 Y10 Y11 Y12 Y13 Y14 Y15 Y16 Mining ($/t materials moved excluding pre-strip) PHASE I Mining Deferred Stripping Mining ex def stripping $/tonne $/tonne $/tonne 1.42 (0.11) 1.30 - - - - - - - - - 1.47 (0.01) 1.46 1.53
Slide 88: Phase II: Physicals
PHASE II: PHYSICALS Unit PHASE II LOM Y15 Y16 Y17 Y18 Y19 Y20 Y21 Y22 Y23 Y24 Y25-29 Y30-34 Y35-39 Y40-44 Y45-49 Resources Mined PHASE II Copper World deposits East deposit Total resources mined Mt Mt Mt 124.2 783.2 907.4 340.4 1,008.1 1,348.5 - - - - - - 0.7 29.1 29.8 3.0 33.4 36.4 2.0 28.6 30.5 1.
Slide 89: Phase II: Unit Costs
PHASE II: UNIT COSTS Unit PHASE II LOM Y15 Y16 Y17 Y18 Y19 Y19 Y19 Y19 Y19 Y19 Y25-29 Y30-34 Y35-39 Y40-44 Y45-49 Mining ($/t materials moved excluding pre-strip) PHASE II Mining Deferred Stripping Mining ex def stripping $/tonne $/tonne $/tonne 1.35 (0.18) 1.17 1.37 (0.16) 1.21 - - - - - - 1.85 (0.
Slide 90: Price Deck and Marketing Assumptions
PRICE DECK AND MARKETING ASSUMPTIONS PRICE DECK MARKETING ASSUMPTIONS PRICE / RATE UNIT LONG TERM PRICE / RATE UNIT LONG TERM Metals Molybdenum Concentrate Copper $/lb 3.50 Treatment charge $/lb 1.30 1 Copper net premium $/lb 0.01 Payable % - Mo % 99.00 Molybdenum $/lb 11.00 Freight $/wmt 20.00 Gold
Slide 91: Tax Assumptions
TAX ASSUMPTIONS TAX ASSUMPTIONS INCOME TAX DEPRECIATION RATES METRIC UNIT Phase I YEAR MINE DEV PROJECT SUSTAINING CAPITAL EXPLOR INFRASTRUCTURE Federal Income Tax 1 73.00% 10.71% 7.14% 5.00% 5.00% Income tax rate % 21.00% 2 6.00% 19.13% 14.29% 10.00% 9.50% Depletion - Federal rate % 15.00% 3 6.00%
Slide 92: Technology Trade-Offs
TECHNOLOGY TRADE-OFFS CONCENTRATE LEACH PLANT ATMOSPHERIC CONCENTRATE LEACH (ALBION) Benefits Low mech. complexity Higher flexibility in feed material composition More flexibility with acid production, low oxygen consumption Risk Requires acid plant to convert sulfur to acid Low conversion of pyrite
Slide 93: Copper World Complex Mineral Resource Estimates
COPPER WORLD COMPLEX MINERAL RESOURCE ESTIMATES (AS AT MAY 1, 2022) COPPER WORLD COMPLEX MINERAL Tonnes Cu Grade Soluble Cu CATEGORY Mo (g/t) Ag (g/t) RESOURCE ESTIMATES (Millions) (%) Grade (%) Measured 687 0.45 0.05 138 5.1 Indicated 287 0.36 0.06 134 3.6 Flotation Total M&I 973 0.42 0.05 137 4.6