Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q2 2014 Earnings Presentation
14 slides from Hudbay Minerals's earnings presentation, Jul 31, 2014
Slide 1: Second Quarter 2014 Results
SECOND QUARTER 2014 RESULTS Management Presentation July 31, 2014
Slide 2: Cautionary Information
Cautionary Information Forward Looking 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
Slide 3: Cautionary Information (continued)
Cautionary Information (continued) Forward Looking 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 developm
Slide 4: Cautionary Information (continued)
Cautionary Information (continued) The scientific and technical information in respect of Hudbay contained in this presentation related to the Constancia project has been prepared by or under the supervision of Cashel Meagher, P.Geo., Hudbay’s Vice President, South America Business Unit. The scienti
Slide 5: Q2 2014 Highlights
Q2 2014 Highlights BEGINNING OF EXPECTED PRODUCTION, EARNINGS AND CASH FLOW GROWTH Manitoba production and unit cost improvements reflect economies of scale of growing business > Ore production 23% higher than Q2 2013 > 777 operating costs 3% lower than Q2 2013 > Lalor operating costs 9% lower than
Slide 6: Continued De-Risking of Our Growth Projects
Continued De-Risking of Our Growth Projects SIGNIFICANT PROJECT MILESTONES ACHIEVED Constancia > Project construction approximately 85% complete > Power transmission line expected to be commissioned shortly > First ore placed on ROM pad in July View of the main plant site at Constancia Lalor > Under
Slide 7: Constancia Update
Constancia Update 100%-OWNED PROJECT IN PERU Construction approximately 85% complete as at June 30, 2014 > US$1.6 billion of US$1.7 billion budget spent and committed > Power transmission line construction complete > Pre-stripping advancing well Constancia tailings thickener > Concentrate transport
Slide 8: Constancia Construction Progress
Constancia Construction Progress Constancia mine maintenance facilities Constancia flotation cells Employee working in crusher control room Crushed ore stockpile reclaim tunnels to feed ball mills Q2 2014 RESULTS l 8
Slide 9: Constancia Construction Progress (Cont'd)
Constancia Construction Progress (Cont’d) Constancia bog dam Constancia tailings management facility Overhead view of Constancia crusher Q2 2014 RESULTS l 9
Slide 10: Lalor Update
Lalor Update 100%-OWNED MINE IN MANITOBA Main production shaft mechanically commissioned for hoisting > Of the total $441 million budget, invested $404 million and entered into additional $32 million in commitments to June 30, 2014 > New 6,000 tpd production shaft (ore 955 metre level waste pass ste
Slide 11: Lalor Exploration
Lalor Exploration DRILLING OF CU-AU ZONE EXPECTED IN Q4 2014 Lalor Cross-Section with 2014 Exploration Platform 0m Underground exploration ramp expected to be started Vent Production Raise Shaft in Q3 2014 500m Planned 1,300m of drilling on Lens 27 in Cu-Au zone in Q4 2014 Exploration Platform > Upg
Slide 12: Strong Financial Capacity
Strong Financial Capacity WELL CAPITALIZED FOR GROWTH SPENDING Hudbay Liquidity 1 > Sufficient financial capacity to fund remaining capital spending at Total Current Liquidity of $1.0 billion Constancia and Lalor > US$150 million Constancia standby $314 credit facility in place Credit Facilities and
Slide 13: Near Term Milestones
Near Term Milestones Reed Rosemont Lalor Constancia Commercial Successful Underground Commercial production acquisition exploration begins production 2014 2015 Q1 Q2 Q3 Q4 Q1 Q2 Lalor Lalor Constancia Completion of Production Initial refurbished shaft production Snow Lake commissioning Concentrator
Slide 14: Second Quarter 2014 Results
SECOND QUARTER 2014 RESULTS Management Presentation July 31, 2014