Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — NBF Dubai Mining Caravan Conference 2024
86 slides from Hudbay Minerals's conference presentation, Nov 21, 2024
Slide 1: Investor Presentation November 2024
I N V E S T O R P R E S E N TAT I O N NOVEMBER 2024
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: Our Purpose
OUR PURPOSE H' DBAY We > our people our communit our planet Hudbay provides the metals the world needs. We work sustainably, transform lives and create better Futures For communities.
Slide 4: Diversified Mid-Tier Copper Producer
DIVERSIFIED MID-TIER COPPER PRODUCER ANNUAL COPPER PRODUCTION & CASH COSTS1,2 REVENUE AND RESERVES BY METAL + Copper $0.86 World (92kt) Revenue4 Reserves5 $0.74 $0.80 $0.65-$0.85 5% 2% 4% Consolidated Copper Cash 168 4% Production (000 tonnes) 153 2% 6% Consolidated Copper 150 kt 137-176 132-172 134
Slide 5: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE ENHANCED OPERATING PLATFORM CONTINUES TO DELIVER STRONG PRODUCTION AND STEADY COST CONTROL KEY RESULTS SUMMARY $206M $86M 31kt $0.18/lb Q3 2024 Q2 2024 Q3 2023 Q3 Adj. EBITDA1 Q3 Free Cash Flow2 Q3 Cu Production Q3 Cash Cost Production1,2 Copper kt 31.4 28.6 42.0 2024 An
Slide 6: Improved Balance Sheet Flexibility
IMPROVED BALANCE SHEET FLEXIBILITY ACCELERATED DELEVERAGING CONTINUES TO ENHANCE FINANCIAL POSITION SIGNIFICANT DEBT REDUCTION OVER THE PAST YEAR 5.0x Dec. 31 2022 Announced “3-P” 4.0x Deleveraging Initiative $83M $130M $83M 3.0x Buy Back of Senior Repayments Under Gold Prepay Facility 2.0x 3.8 Net
Slide 7: Strong Operating Platform
ST KONG BP ERSTING. PLATFORM
Slide 8: Diversified Portfolio in Tier 1 Jurisdictions
DIVERSIFIED PORTFOLIO IN TIER 1 JURISDICTIONS COPPER MOUNTAIN MASON Operating Mine PEA Development Project +20 year mine life +27 year mine life Open pit Open pit ~45kt annual Cu production 112kt annual Cu production British Columbia, Canada Cu Au Ag Nevada, USA Cu Mo Au Ag SNOW LAKE COPPER WORLD Op
Slide 9: Constancia
CONSTANCIA LONG LIFE, LOW-COST COPPER MINE IN PERU 18 YEARS Cu-Au-Mo 90k tpd MINE LIFE PORPHYRY DEPOSIT NAMEPLATE MILL PERMIT CAPACITY 100kt 114koz $1.07/lb 2023A 2023A 2023A CU PRODUCTION AU PRODUCTION CASH COSTS CONSTANCIA COPPER PRODUCTION PROFILE1 $1.75 140 $1.54 $1.58 120 $1.50 100%-owned, low
Slide 10: Constancia Operational Excellence
CONSTANCIA OPERATIONAL EXCELLENCE CONSTANCIA IS THE LOWEST COST OPEN PIT COPPER MINE IN SOUTH AMERICA Continuous operational improvements at Constancia have increased throughput, enhanced efficiencies and reduced costs CONSTANCIA THROUGHPUT1 +10% Throughput Expansion expansion beyond avg. 90k tpd pe
Slide 11: Snow Lake
SNOW LAKE LOW-COST GOLD OPERATION WITH MEANINGFUL BASE METAL PRODUCTION 15 YEARS Au-Zn-Cu 5.3k tpd MINE LIFE1 VMS DEPOSITS NAMEPLATE MILL CAPACITY 187koz 35kt $727/oz 2023A AU 2023A ZN 2023A PRODUCTION PRODUCTION CASH COSTS SNOW LAKE GOLD PRODUCTION PROFILE2 250 200 187 170-200* 170-200 170-200 100%
Slide 12: New Britannia Operational Excellence
NEW BRITANNIA OPERATIONAL EXCELLENCE NEW BRITANNIA MILL PERFORMANCE CONSISTENTLY EXCEEDING EXPECTATIONS WITH CONTINUOUS IMPROVEMENT TO DRIVE EFFICIENCY, HIGHER GOLD PRODUCTION AND STRONG RETURNS With ~2 million ounces of gold in current mineral reserves +39% 90% $115M and another 1.4 million ounces
Slide 13: Copper Mountain
COPPER MOUNTAIN LONG LIFE COPPER MINE WITH OPTIONALITY 21 YEARS Cu-Au-Ag 45k tpd MINE LIFE PORPHYRY NAMEPLATE MILL DEPOSIT CAPACITY 47kt 35koz $1.89/lb 2024-2028E AVG. 2024-2028E AVG. 2024-2028E AVG. CU PRODUCTION1 AU PRODUCTION1 CASH COSTS1 COPPER MOUNTAIN PRODUCTION PROFILE2 60 56 44-54 50 Copper
Slide 14: Copper Mountain Optimization
COPPER MOUNTAIN OPTIMIZATION WITH OPERATIONS NOW STABILIZED, ON TRACK TO CREATE LONG-TERM VALUE THROUGH OPTIMIZATION MINE PRODUCTIVITY* MILL AVAILABILITY 100% Quarterly Mine Productivity *(Mt) 24 Target 25Mt NEW RECORD 95% Mill Availability (%) Target 92% 20 90% 16 23.0 85% 94.0% 95.4% 19.9 21.4 90.
Slide 15: Leading Copper Exposure
H' DBAY LEADING COPPER EXPOSURE 15
Slide 16: Robust Copper Market Outlook
ROBUST COPPER MARKET OUTLOOK STRONG LONG-TERM COPPER MARKET FUNDAMENTALS WITH SIGNIFICANT SHORTAGE OF SUPPLY Declining Copper Grades GLOBAL COPPER SUPPLY AND DEMAND Base Case Operating No Significant Projects Sanctioned in Past 3-Years (Mt)1 Mines Capacity Market is increasingly dependent on executi
Slide 17: Challenges of Supply Prediction
CHALLENGES OF SUPPLY PREDICTION The analysis below compares the projected global copper production estimated by Wood Mackenzie, inclusive of development and expansion projects, as of 2020 Q3 to the latest 2024 Q3 estimates and 2020-2023 production actuals to understand how the market has changed fol
Slide 18: A Look at Copper Pipeline Assumptions
A LOOK AT COPPER PIPELINE ASSUMPTIONS PROBABLE AND POSSIBLE PIPELINE FACES SIMILAR CHALLENGES TO MEET SUPPLY PREDICTIONS Probable Projects (>75 ktpa Cu1) Possible Projects (Largest Contributors1) Production Production Timeline Production Production Timeline Production Production Timeline Project Pro
Slide 19: Attractive Copper Positioning
ATTRACTIVE COPPER POSITIONING SIGNIFICANT COPPER PRODUCTION AT FIRST QUARTILE CASH COSTS MEANINGFUL COPPER PRODUCTION LEADING LOW-COST PROFILE 2024E COPPER PRODUCTION1 2024E COPPER AISC2 $4.50 350 +$75M increase in cash flow and EBITDA for +$25M increase in cash flow and EBITDA for every $0.25/lb ch
Slide 20: Hudbay Leading Copper Exposure
HUDBAY LEADING COPPER EXPOSURE SUSTAINED GROWTH IN COPPER RESOURCES PER SHARE DRIVES INDUSTRY LEADING COPPER PRICE OPTIONALITY SIGNIFICANT GROWTH IN COPPER RESOURCES PER SHARE1 HIGHEST COPPER NAV SENSITIVITY VERSUS PEERS2 (NAV SENSITIVITY TO 10% CHANGE IN COPPER PRICE) 50% +11% CAGR and +$189% growt
Slide 21: Prudent Capital Allocation
PRUDENT CAPITAL ALLOCATION ACQUISITION OF COPPER MOUNTAIN AT A LOWER CAPITAL INTENSITY THAN RECENT MINE BUILDS AND COPPER WORLD REPRESENTS THE NEXT GENERATION OF LOW CAPITAL COPPER DEVELOPMENT Low Capital Completed Greenfield Completed Brownfield High Capital Capital Intensity ($000s/tonne Cu)1,2 Co
Slide 22: Copper World Project
COPPER WORLD PROJECT HIGHEST GRADE OPEN PIT COPPER PROJECT IN THE AMERICAS PHASE I FOOTPRINT REQUIRES STATE AND LOCAL PERMITS ONLY PFS shows enhanced project economics, optimized flow 1.2Bt M&I TONNAGE sheet and simplified permitting process and extended mine life to 20 years. 85kt ANNUAL CU PRODUCT
Slide 23: Potential Sanctioning Decision
PRUDENTLY ADVANCING COPPER WORLD DISCIPLINED THREE PREREQUISITES (“3-P”) PLAN FOR SANCTIONING COPPER WORLD Completed Underway To Come In late 2022, Hudbay unveiled a prudent financial plan with three Objective 2022 2023 2024 2025 2026 PERMITS PLAN key prerequisites to be achieved ✓ ✓ Definitive feas
Slide 24: Mason Project
MASON PROJECT LARGE OPEN PIT COPPER PROJECT WITH SIGNIFICANT LAND PACKAGE 2.2Bt $1.76/lb 27 YEARS M&I TONNAGE CU SUSTAINING CASH COST MINE LIFE 0.29% 112kt $1,191M / 18% M&I CU GRADE ANNUAL CU PRODUCTION NPV / IRR 1 MASON ECONOMICS1 After-Tax NPV10% (US$M) Unlevered IRR (%) $2,019 23% 18% $1,191 15%
Slide 25: Unique Growth Optionality
UNIQUE GROWTH OPTIONALITY 25
Slide 26: Copper Pipeline with Significant Growth
COPPER PIPELINE WITH SIGNIFICANT GROWTH GOAL OF ACHIEVING A TRIPLING OF COPPER PRODUCTION BY 2030 Cu Mason (kt) Maria Reyna / Kusiorcco Llaguen Copper World Phase II Copper World Phase I Constancia Phase 10 Maria Reyna SW Caballito Constancia Norte Constancia Continuous Improvement +50% New Ingerbel
Slide 27: Gold Pipeline with Significant Growth
GOLD PIPELINE WITH SIGNIFICANT GROWTH STRONG GOLD PRODUCTION OFFERS COMPLEMENTARY CASH FLOWS WITH UPSIDE POTENTIAL Regional Lalor Exploration Au Satellite Deposit Extensions (koz) Snow Lake and Flin Flon Greenfield Exploration Lalor Near Mine Extension Tailings Reprocessing Cook Lake & Talbot % +40
Slide 28: Constancia Exploration Potential
CONSTANCIA EXPLORATION POTENTIAL SEVERAL OPPORTUNITIES EXIST ON HUDBAY’S EXTENSIVE LAND PACKAGE IN PERU CONSTANCIA SATELLITE EXPLORATION TARGETS Maria Reyna Constancia & Caballito Pampacancha 3.3Mt Cu Constancia DELINEATED TO-DATE 1.0Mt Cu MINED TO-DATE PERU Pampacancha Lima Tintaya Constancia Matar
Slide 29: Constancia Priority Satellite Targets
CONSTANCIA PRIORITY SATELLITE TARGETS EXPLORATION PERMITTING ACTIVITIES WELL UNDERWAY MARIA REYNA CABALLITO Artisanal mining activity focused on high grade magnetite skarn bodies and Mitsui mined high-grade copper at Caballito until the early 1990s; hand samples hydrothermal breccia. collected in th
Slide 30: Lalor Near Mine Exploration
LALOR NEAR MINE EXPLORATION 2M OZ OF GOLD RESERVES AND 1.5M OZ OF GOLD INFERRED RESOURCES WITH FURTHER EXTENSION POTENTIAL LALOR MINE LIFE EXTENSION LALOR NEAR MINE 0m 100m 250m 500m Lalor Northwest Exhaust raise 2024 drilling Shaft Ramp to C Lalor deep hisel North 2024 drilling surface and 835mL 91
Slide 31: Snow Lake Regional Exploration
SNOW LAKE REGIONAL EXPLORATION 2024 Regional Geophysical Survey Completed on Cook Lake North Area Completed of 25 km2 of Geophysical Surveying § Large exploration program underway with modern geophysics and surface drilling. § Program focused on recently acquired land including Cook Lake and former
Slide 32: 2024 Snow Lake Exploration Program
2024 SNOW LAKE EXPLORATION PROGRAM LARGEST SNOW LAKE EXPLORATION PROGRAM IN COMPANY’S HISTORY MULTI-PHASED DRILLING PROGRAM PLAN VIEW OF LALOR & COOK LAKE CLAIMS § Largest drill program on record currently underway. The winter program included 8 drill rigs, testing Lalor down plunge and Lalor Northw
Slide 33: Flin Flon Growth Opportunities
FLIN FLON GROWTH OPPORTUNITIES GROWTH POTENTIAL THROUGH TAILINGS REPROCESSING OPPORTUNITY AND EXPLORATION PARTNERSHIP MILL TAILINGS REPROCESSING Opportunity to reprocess Flin Flon tailings where more than 100Mt of tailings have been deposited over 90 years. Potential for additional metal production
Slide 34: Committed to Sustainability
H' DBAY COMMITTED TO SUSTAINABILITY
Slide 35: Commitment to Sustainability
COMMITMENT TO SUSTAINABILITY REDUCING CARBON FOOTPRINT WATER AND BIODIVERSITY STEWARDSHIP Operations are well-positioned in the lower half of the Restoring ecosystems by progressively rehabilitating global GHG emissions curve for copper mines affected areas Pursuing improvements Committed to conserv
Slide 36: Social Impact & Our People
SOCIAL IMPACT & OUR PEOPLE EMBRACING DIVERSITY AND PROVIDING A HEALTHY & SAFE WORKPLACE • Constancia’s “Hatun Warmi” program expands opportunities for women in mining. • All operations are required to be certified to ISO 45001, an internationally accepted standard for occupational health and safety
Slide 37: Environmental Stewardship
ENVIRONMENTAL STEWARDSHIP DEVELOPING, OPERATING AND RECLAIMING MINES IN A MANNER THAT DEMONSTRATES OUR COMMITMENT TO ENVIRONMENTAL STEWARDSHIP ↓50% lower absolute Scope 1 and Scope 2 New Projects and acquisitions will be assessed against emissions from existing operations1 by 2030 corporate emission
Slide 38: Emissions Reduction Roadmap
EMISSIONS REDUCTION ROADMAP MULTIPLE PATHWAYS TO REDUCE EMISSIONS BY 20301 GHG REDUCTION OPPORTUNITIES PROGRESS TOWARDS ACHIEVING GHG TARGETS 300 ü Signed 10-year 100% renewable power supply Grid decarbonization agreement for Constancia starting in 2026 ü Commissioned electric shovel at Copper Mount
Slide 39: Investment Thesis
INVESTMENT THESIS
Slide 40: Hudbay Investment Thesis
HUDBAY INVESTMENT THESIS STRONG OPERATING PLATFORM Reducing net debt to 1.2x EBITDA with multiple assets in tier-1 mining jurisdictions delivering through significant free cash flow growth significant near-term production and free cash flow growth LEADING COPPER EXPOSURE 150,000 tonne annual copper
Slide 41: Several Near-Term Catalysts
SEVERAL NEAR-TERM CATALYSTS FOCUSED ON DELIVERING MANY NEAR-TERM GROWTH INITIATIVES ACROSS THE PORTFOLIO TO GENERATE SIGNIFICANT VALUE FOR STAKEHOLDERS COPPER WORLD MANITOBA ü Receive all required state permits ü New Britannia further optimization ü Execute financial discipline – ü Snow Lake regiona
Slide 42: Hudbay
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Slide 43: World-Class Management Team
WORLD-CLASS MANAGEMENT TEAM PETER KUKIELSKI EUGENE LEI ANDRE LAUZON PRESIDENT & CEO CFO COO More than 30 years of sector experience in Over 20 years of global mining investment Over 30 years of experience, holding base metals, precious metals and bulk banking, finance and corporate development leade
Slide 44: Board of Directors
BOARD OF DIRECTORS STEPHEN A. LANG PETER KUKIELSKI CHAIR PRESIDENT & CEO Stephen has over 40 years of experience Peter has more than 30 years of experience in the mining industry, including within the base & precious metals and bulk engineering, development and materials sectors, having overseen pro
Slide 45: Production Guidance
PRODUCTION GUIDANCE 3-YEAR PRODUCTION OUTLOOK Contained Metal in Concentrate and Dore1 2024 Guidance 2025 Guidance 2026 Guidance PERU Copper tonnes 98,000 - 120,000 94,000 - 115,000 80,000 - 100,000 Gold ounces 76,000 - 93,000 70,000 - 90,000 15,000 - 25,000 Silver ounces 2,500,000 - 3,000,000 2,700
Slide 46: 2024 Cost Guidance
2024 COST GUIDANCE CAPITAL EXPENDITURES1 ($M) EXPLORATION EXPENDITURES5 ($M) SUSTAINING CAPITAL2 2024 Guidance 2023 Actuals 2024 Guidance 2023 Actuals Peru3 130 132 Peru 17 15 Manitoba 55 56 Manitoba 23 10 British Columbia 2 4 British Columbia 105 30 Arizona and other 1 2 Total sustaining capital 29
Slide 47: Prudent Balance Sheet Management
PRUDENT BALANCE SHEET MANAGEMENT ONLY DEBT OUTSTANDING CONSISTS OF LONG-TERM SENIOR UNSECURED BONDS LONG-TERM DEBT STRUCTURE PROVIDES SIGNIFICANT FLEXIBILITY Bond Ratings Callable starting in April 2023 Moody’s B1 S&P B 4.5% due Callable starting in April 2024 Fitch BB- Apr. 2026 6.125% due Apr. 202
Slide 48: South America Business Unit
SOUTH AMERICA BUSINESS UNIT Cusco CUSCO Las Bambas CONSTANCIA PERU Yauri LLAGUEN Trujillo Tintaya Antapaccay Lima AREQUIPA Imata CONSTANCIA Arequipa MINE Cerro Verde TOWN MOQUEGUA & RAIL Matarani ROAD 0 100km Appendix: PERU TACNA 48
Slide 49: Constancia Mine Plan
CONSTANCIA MINE PLAN 18-YEAR MINE PLAN BASED ON PROVEN AND PROBABLE RESERVES ONLY Updated mine plan for Constancia operations reflects higher copper and gold production into 2025 with the higher grades from the Pampacancha deposit and extended mine life to 2041 with the conversion of mineral resourc
Slide 50: Maria Reyna Historical Drill Results
MARIA REYNA HISTORICAL DRILL RESULTS A summary of the historical drill results from Maria Reyna is contained in the table below, however a qualified person has not independently verified this historical data or the quality assurance and quality control program that was applied during the execution o
Slide 51: Llaguen Project
LLAGUEN PROJECT COPPER PIPELINE PROJECT IN A FAVOURABLE LOCATION MINERAL RESOURCE ESTIMATE AS AT JANUARY 1, 2024 Metric Cu Mo Au Ag CuEq Category Tonnes (%) (g/t) (g/t) (g/t) (%) Indicated Global (>= 0.14% Cu) 271,000,000 0.33 218 0.033 2.04 0.42 Including Indicated High-grade (>= 0.30% Cu) 113,000,
Slide 52: Manitoba Business Unit
MANITOBA BUSINESS UNIT New Britannia Gold Mill 1,800 tpd capacity Snow Lake Stall Base Metal Mill LALOR MINE 3,800 tpd capacity ~4,500 tpd LALOR 0 5km MANITOBA SASKATCHEWAN Winnipeg Snow Lake LALOR MINE MINE Flin Flon MILL TOWN Flin Flon Base Metal Mill* RAIL care & maintenance (6,000 tpd capacity)
Slide 53: Snow Lake Mine Plan
SNOW LAKE MINE PLAN 15-YEAR MINE PLAN BASED ON PROVEN AND PROBABLE RESERVES ONLY Mine plan optimizes processing capacity in Snow Lake to maximize the NPV of the operations. SNOW LAKE OPERATIONS1 2022A 2023A 2024 2025 2026 2027 2028-2037 Avg. CONTAINED METAL IN CONCENTRATE AND DORÉ Au Production (000
Slide 54: Snow Lake Process – 2024
SNOW LAKE PROCESS – 2024 Lalor Lalor Crushed Crushed Ore Ore Stall Mill New Britannia Mill tp d ~2,00 2,500 0t pd Grinding Grinding Cu c on Flotation (via c. to New Flotation pipe . line) Britann Cu conc ia Tails to Tails Cyanide Zn Concentrate Cu Concentrate Anderson TIA or Leaching/CIP Destruction
Slide 55: Snow Lake Growth Over Time
SNOW LAKE GROWTH OVER TIME OVER 3.0M OUNCES OF GOLD HAS BEEN IDENTIFIED AS RESERVES / PRODUCED TO DATE +250% INCREASE IN IDENTIFIED RESERVES / PRODUCED GOLD FROM INITIAL RESERVE ESTIMATE 7% increase Reserves 32% increase from 9% increase from resource Inferred Produced to-date inclusion of satellite
Slide 56: Snow Lake Region Land Package
SNOW LAKE REGION LAND PACKAGE Hudbay’s existing properties include the Lalor mine, the 1901 deposit, 3 Zone, WIM, Watts, Chisel Lake (past producing), Photo Lake (past producing), Cook Lake North and South, as well as the acquired Rockcliff properties, including Talbot, Bur, tower, Rail and Pen. 202
Slide 57: Lalor Northwest Drilling
LALOR NORTHWEST DRILLING FOLLOW UP DRILLING CONFIRMS NEW DISCOVERY NORTHWEST OF THE LALOR DEPOSIT Lalor Section View with New Discovery Located ~400m from Underground Infrastructure Intersected Significant Lalor Northwest Copper-Gold Mineralized Mineralization Intercepts § 2024 follow up drilling co
Slide 58: 1901 Development & Exploration Drift
1901 DEVELOPMENT & EXPLORATION DRIFT ADVANCING ACCESS TO THE 1901 DEPOSIT FOR EXPLORATION AND FUTURE MINE DEVELOPMENT The 1901 deposit was discovered in 2019 and is located within 1,000 metres Ex of the Lalor underground ramp. Further drilling, metallurgical testing and pre- ist i ng feasibility stu
Slide 59: Flin Flon Closure Cost Plan
FLIN FLON CLOSURE COST PLAN 75% OF CLOSURE AND RECLAMATION COSTS ARE TO BE INCURRED AFTER 2037 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2122 $23M in tailings stability $13M in demolition costs between the close of Flin Flon and 203
Slide 60: British Columbia Business Unit
BRITISH COLUMBIA BUSINESS UNIT Kamloops NEW AFTON MINE HIGHLAND VALLEY COPPER MINE Kelowna COPPER MOUNTAIN Princeton COPPER MOUNTAIN Vancouver MINE MINE 0 20km TOWN ROAD Appendix: BRITISH COLUMBIA 60
Slide 61: Copper Mountain Mine Plan
COPPER MOUNTAIN MINE PLAN 21-YEAR MINE PLAN BASED ON PROVEN AND PROBABLE RESERVES ONLY Updated mine plan for Copper Mountain operations reflects mine stabilization plan advancements and increased mine productivity. 2024-2028 2029-2033 2034-2038 2039-2043 COPPER MOUNTAIN OPERATIONS 20245 20255 20265
Slide 62: Copper Mountain Technical Report
COPPER MOUNTAIN TECHNICAL REPORT Steady-state Operations Stabilization & Optimization Plans 21 years 45k tpd Improving reliability and driving sustainable long-term value: 1. Increased mining activities Mine Life Nameplate mill capacity Fleet ramp-up plan to remobilize idle haul trucks, 28 trucks re
Slide 63: Copper Mountain Performance Improvement
COPPER MOUNTAIN PERFORMANCE IMPROVEMENT Accelerated stripping activities ü To help mitigate the impacts of previous substantially reduced stripping ü Enable access to higher-grade ore Steady state level ü Improve mine efficiency Sustained improvements in mill throughput 45,000 tonnes per day and exp
Slide 64: Arizona Business Unit
ARIZONA BUSINESS UNIT Miami Pinto Valley Phoenix Resolution Ray ARIZONA, US Morenci Florence Cactus Safford Santa Cruz Silver Bell Phoenix Tucson Gunnison Tucson Mission Sierrita COPPER WORLD COPPER WORLD Maps are not to scale Hermosa 0 25km 50km Port of Guaymas (Mexico) Appendix: ARIZONA 64
Slide 65: Copper World 2023 PFS
COPPER WORLD 2023 PFS SIMPLIFIED PROJECT DESIGN Simplified mine plan consists of four open pits and is now optimized solely on the flotation of both copper sulfides and oxides. Simplified processing flow sheet includes conventional sulfide flotation concentrator with copper concentrate as final prod
Slide 66: Copper World Phase I PFS
COPPER WORLD PHASE I PFS ENHANCED PROJECT ECONOMICS, SIMPLIFIED FLOWSHEET AND EXTENDED MINE LIFE TO 20 YEARS COPPER PRICE SENSITIVITY ($M) Annual Cu production of 92kt over the first 10 years at $1.53/lb cash costs and $1.95/lb sustaining cash costs. NPV 10% NPV 8% 2,006 1,710 Life-of-mine Cu produc
Slide 67: Copper World Funding Requirement
COPPER WORLD FUNDING REQUIREMENT JOINT VENTURE REDUCES HUDBAY’S FUNDING REQUIREMENT AND ENHANCES RETURNS IRR: ~19% $230 Corresponding Illustrative IRR (%) Funding Requirement ($M) & $350 IRR: ~25% $1,323 $743 IRR: +35% $250 - $350 $250 Phase I Capex Less: WPM Stream Less: Project Financing Funding R
Slide 68: Designed to Reduce Energy Consumption and GHG Emissions
DESIGNED TO REDUCE ENERGY CONSUMPTION AND GHG EMISSIONS MADE IN AMERICA” COPPER CATHODE TO SUPPORT DOMESTIC U.S. COPPER CONSUMPTION ↓10% ↓14% lower energy consumption, reduction in total scope including 30% decline related 1, 2 & 3 GHG emissions to downstream processing • Copper World copper cathode
Slide 69: Copper World PFS Highlights
COPPER WORLD PFS HIGHLIGHTS LARGE SCALE, HIGH-GRADE OPEN PIT WITH ATTRACTIVE ECONOMICS & SIGNIFICANT UPSIDE Large Reserve Base with Meaningful Resource Upside on a Significant Land Package 385Mt reserves support 20 years of Phase I mine life, which is only ~30% of the ~1.2Bt of M&I resources1 Land p
Slide 70: Copper World Robust Economics
COPPER WORLD ROBUST ECONOMICS SUMMARY OF KEY METRICS Phase I - 20 year mine life (at $3.75/lb Cu) • Cu production avg. 85 kt p.a. Valuation Metrics (Unlevered)1 Units Phase I • Cash costs of $1.47/lb and sustaining Net present value @ 8% (after-tax) $ millions $1,100 cash cost of $1.81/lb. Net prese
Slide 71: Copper World Phase I
COPPER WORLD PHASE I PRODUCTION PROFILE Phase I Average Annual Production: 85kt Cu Cash Costs: $1.47/lb Cu Sustaining Cash Costs: $1.81/lb Cu Appendix: ARIZONA For further information please refer to Hudbay’s news release dated September 8, 2023, announcing the PFS results. Tonnes shown are metric t
Slide 72: Copper World Positioning
COPPER WORLD POSITIONING ONE OF THE BEST UNDEVELOPED COPPER PROJECTS – CAPITAL LIGHT, LOW COMPLEXITY Source: Company public filings; Street research. Appendix: ARIZONA Note: Peer set comprised of greenfield, open pit, porphyry projects with reserves located in the Americas, with LOM average Cu produ
Slide 73: U.S. Open Pit Copper Benchmarking
U.S. OPEN PIT COPPER BENCHMARKING Pre-Production COPPER WORLD BENCHMARKS FAVORABLY AGAINST OTHER U.S. OPEN PIT ASSETS Producing ANNUAL PRODUCTION (KT CU) RESERVE GRADE (% CU) CASH COSTS (US$/LB CU) Increase to 125ktpa Cu with the execution of Phase II Copper World will be the Largest Peer Leading Co
Slide 74: Nevada – Mason Project
NEVADA – MASON PROJECT Power Plant Lyon County Douglas County NEVADA MacArthur Reno Yerington Blue Hill Mine (Historic) MASON PROJECT MASON Yerington Mason TOWN Las Vegas Road HUDBAY MINERAL CLAIMS Pumpkin Hollow HUDBAY PRIVATE LAND CLAIMS Mason POWER LINE Valley Mines RAIL (Historic) MINE / DEPOSIT
Slide 75: Exploration Cannot Solve the Supply Gap
EXPLORATION CANNOT SOLVE THE SUPPLY GAP S&P STUDIED 136 MINES OVER 20 YEARS & IT TAKES AN AVERAGE OF 16 YEARS FROM DISCOVERY TO PRODUCTION Russian and Indonesian mines take the longest to start up1 16.3 years Lead times continue to trend upward: ~18 years for mines coming online in 2020-2023 vs. ~13
Slide 76: Peru Mineral Reserves (As At January 1, 2024)
PERU MINERAL RESERVES (AS AT JANUARY 1, 2024) MINERAL RESERVE ESTIMATES1,2,3,4,5 TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) CONSTANCIA Proven 465,600,000 0.260 78 0.038 2.63 Probable 61,600,000 0.212 64 0.034 2.24 CONSTANCIA – TOTAL PROVEN AND PROBABLE 527,200,000 0.254 76 0.037 2.59 PAMPACANCHA Prove
Slide 77: Peru Mineral Resources (As At January 1, 2024)
PERU MINERAL RESOURCES (AS AT JANUARY 1, 2024) MINERAL RESOURCE ESTIMATES1,2,3,4,5 TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) CONSTANCIA Measured 78,400,000 0.213 74 0.039 2.20 Indicated 93,100,000 0.224 90 0.040 1.98 Inferred – Open Pit 29,700,000 0.233 68 0.056 2.58 Inferred – Underground 6,500,000
Slide 78: Snow Lake Reserves – Lalor Mine & 1901 Deposit
SNOW LAKE RESERVES – LALOR MINE & 1901 DEPOSIT (AS AT JANUARY 1, 2024) MINERAL RESERVE CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) ESTIMATES1,2,3,4,5,6,7,8 Gold Zone Reserves Proven Lalor 3,263,000 5.5 0.73 0.59 29.6 1901 102,000 2.8 1.33 1.00 19.2 Probable Lalor 3,678,000 4.5 0.37 1.22 22.1 190
Slide 79: Snow Lake Resources – Lalor Mine & 1901 Deposit
SNOW LAKE RESOURCES – LALOR MINE & 1901 DEPOSIT (AS AT JANUARY 1, 2024) MINERAL RESOURCE CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) ESTIMATES1,2,3,4,5,6,7,8 Gold Zone Resources Inferred Lalor 2,979,000 4.3 0.24 1.68 25.7 1901 1,605,000 5.4 0.30 0.84 16.5 Total Inferred – Gold 4,584,000 4.7 0.26
Slide 80: Snow Lake Reserves & Resources – Other Gold
SNOW LAKE RESERVES & RESOURCES – OTHER GOLD (AS AT JANUARY 1, 2024) GOLD MINERAL RESERVE AND RESOURCE CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) ESTIMATES1,2,3,4,5,6,7 Probable Reserves WIM Probable 2,450,000 1.6 0.25 1.63 6.3 3 Zone Probable 660,000 4.2 - - - TOTAL PROBABLE (GOLD) 3,110,000 2.
Slide 81: Snow Lake Reserves & Resources – Other Base Metals
SNOW LAKE RESERVES & RESOURCES – OTHER BASE METALS (AS AT JANUARY 1, 2024) BASE METAL MINERAL RESERVE AND RESOURCE CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) ESTIMATES1,2,3,4,5,6,7 Indicated Resources PEN II Indicated 470,000 0.3 8.89 0.49 6.8 Talbot* Indicated 2,190,000 2.1 1.79 2.33 36.0 TOTA
Slide 82: BC Mineral Reserve and Resource Estimates
BC MINERAL RESERVE AND RESOURCE ESTIMATES (AS AT JANUARY 1, 2024) CuEq Grade MINERAL RESERVE AND RESOURCE ESTIMATES1,2,3,4,5,6 TONNES Cu (%) Au (g/t) Ag (g/t) (%) RESERVES Proven 195,000,000 0.27 0.12 0.8 0.35 Probable 172,000,000 0.22 0.11 0.6 0.30 TOTAL PROVEN AND PROBABLE 367,000,000 0.25 0.12 0.
Slide 83: Copper World Mineral Reserve & Resource Estimates
COPPER WORLD MINERAL RESERVE & RESOURCE ESTIMATES (AS AT JANUARY 1, 2024) Soluble Cu MINERAL RESERVE AND RESOURCE ESTIMATES1,2,3,4,5,6 TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) Grade (%) RESERVES Proven reserves 319,400,000 0.54 0.11 110 0.03 5.7 Probable reserves 65,700,000 0.52 0.14 96 0.02 4.3 Tot
Slide 84: Llaguen Mineral Resources (As At January 1, 2024)
LLAGUEN MINERAL RESOURCES (AS AT JANUARY 1, 2024) MINERAL RESOURCE ESTIMATES1,2,3,4,5,6 TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) CuEq (%) Indicated Global 271,000,000 0.33 218 0.033 2.04 0.42 (≥ 0.14% Cu) Including Indicated High-grade 113,000,000 0.49 291 0.046 2.73 0.60 (≥ 0.30% Cu) Inferred Globa
Slide 85: Mason Mineral Resources (As At January 1, 2024)
MASON MINERAL RESOURCES (AS AT JANUARY 1, 2024) MINERAL RESOURCE ESTIMATES1,2,3,4,5 TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) Measured 1,417,000,000 0.29 59 0.031 0.66 Mason Indicated 801,000,000 0.30 80 0.025 0.57 TOTAL MEASURED AND INDICATED 2,219,000,000 0.29 67 0.029 0.63 Mason Inferred 237,000,0
Slide 86: Additional Information
ADDITIONAL INFORMATION The reserve and resource estimates included in this presentation were prepared in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resourc
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