Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Jefferies Industrials Conference 2023
75 slides from Hudbay Minerals's conference presentation, Sep 6, 2023
Slide 1: Investor Presentation September 2023
I N V E S T O R P R E S E N TAT I O N SEPTEMBER 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: 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 RESOURCES BY METAL Copper Mountain* Revenue3 Resources4 4% 1% 6% Consolidated Copper Cash 15% 4% Production (000 tonnes) $0.83 $0.86 $0.74 Consolidated Copper $0.60 8% Costs (US$/lb) 2% Cu Au 17.8 Mt $1.5B Ag C
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Slide 6: Diversified Portfolio in Tier 1 Jurisdictions
DIVERSIFIED PORTFOLIO IN TIER 1 JURISDICTIONS COPPER MOUNTAIN MASON Operating Mine Development Project +25 year mine life +25 year mine life Open pit Open pit 42kt annual Cu production 112kt annual Cu production British Columbia, Canada Cu Au Ag Nevada, USA Cu Mo Au Ag SNOW LAKE COPPER WORLD Operati
Slide 7: Constancia Mine
CONSTANCIA MINE LONG LIFE, LOW-COST COPPER MINE IN PERU 16 YEARS Cu-Mo 86k tpd MINE LIFE PORPHYRY DEPOSIT TOTAL MILL CAPACITY 110kt 87koz $1.18/lb 3-YEAR AVG. 3-YEAR AVG. 2023E. CU PRODUCTION1 AU PRODUCTION1 CASH COSTS CONSTANCIA COPPER PRODUCTION PROFILE2 $1.75 140 $1.54 $1.58 120 120 $1.50 100%-ow
Slide 8: Snow Lake Operations
SNOW LAKE OPERATIONS LOW-COST GOLD OPERATION WITH MEANINGFUL BASE METAL PRODUCTION 16 YEARS Au-Zn-Cu 5.3k tpd MINE LIFE1 VMS DEPOSITS TOTAL MILL CAPACITY 193koz 36kt $650/oz 3-YEAR AVG. AU 3-YEAR AVG. ZN 2023E CASH COSTS PRODUCTION2 PRODUCTION2 SNOW LAKE GOLD PRODUCTION PROFILE3 250 $700 $650 Gold C
Slide 9: Copper Mountain Mine
COPPER MOUNTAIN MINE LONG LIFE COPPER MINE ACQUIRED BY HUDBAY IN JUNE 2023 +25 YEARS Cu-Au-Ag 45k tpd MINE LIFE PORPHYRY TOTAL MILL DEPOSIT CAPACITY COPPER MOUNTAIN MILL THROUGHPUT 60 50 per day 50 day (000s) 45 40 39 40 37 Tonnes 35 75%-owned Copper Mountain mine is located 20km south of Princeton
Slide 10: Focused on Cash Flow Generation
FOCUSED ON CASH FLOW GENERATION DISCIPLINED CAPITAL ALLOCATION TO DELIVER HIGHER CASH FLOWS AND EBITDA GROWTH • Completed ~$250M brownfield investment program in early 2022 and delivering meaningful copper and gold production growth, which is expected to lead to higher cash flows and EBITDA growth •
Slide 11: Leading Copper Exposure
H' DBAY LEADING COPPER EXPOSURE 1
Slide 12: Copper Market Outlook
COPPER MARKET OUTLOOK GROWING DEMAND FOR “GREEN” COPPER (Mt) Global De-carbonization and Transition to 35 Base Case Production Capability Probable Projects Renewable Energy Primary Demand 30 Electrification of Vehicles ~12Mt p.a. Industrialization and Urban Development 25 Supply Gap 20 GLOBAL COPPER
Slide 13: Hudbay Attractive Copper Positioning
HUDBAY ATTRACTIVE COPPER POSITIONING SIGNIFICANT COPPER PRODUCTION AT FIRST QUARTILE CASH COSTS MEANINGFUL COPPER PRODUCTION LEADING LOW-COST PROFILE 2023E COPPER PRODUCTION1 2023E COPPER AISC2 287 165 131 59 46 34 23 LUN CS HBM TKO ERO NEXA 29M Well-positioned versus peers with meaningful copper pr
Slide 14: Hudbay Leading Copper Exposure
HUDBAY LEADING COPPER EXPOSURE MEANINGFUL PRODUCTION GROWTH EXPECTED TO GENERATE SIGNIFICANT NEAR-TERM FREE CASH FLOW TO UNLOCK LEADING ORGANIC COPPER GROWTH PIPELINE HIGHEST COPPER NAV SENSITIVITY VERSUS PEERS1 SIGNIFICANT GROWTH IN COPPER RESOURCES PER SHARE2 (NAV SENSITIVITY TO 10% CHANGE IN COPP
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Slide 16: Copper Pipeline with Significant Growth
COPPER PIPELINE WITH SIGNIFICANT GROWTH PATHWAY TO ACHIEVING A TRIPLING OF COPPER PRODUCTION BY 2030 Mason Cu Maria Reyna / Kusiorcco (kt) Llaguen Copper World Phase II Copper World Phase I Constancia Phase 10 Maria Reyna SW Caballito New Ingerbelle Constancia Constancia Pebble Rejection Ore Sorting
Slide 17: Gold Pipeline with Significant Growth
GOLD PIPELINE WITH SIGNIFICANT GROWTH STRONG GOLD PRODUCTION OFFERS COMPLEMENTARY CASH FLOWS WITH UPSIDE POTENTIAL Au Regional Lalor Exploration (koz) Satellite Deposit Extensions Snow Lake and Flin Flon Greenfield Exploration Stall Au Leaching Lalor Down Dip Extension Tailings Reprocessing Cook Lak
Slide 18: Copper World
COPPER WORLD HIGH-QUALITY COPPER DEVELOPMENT PROJECT 0.54% 85kt 20+ YEARS 2P RESERVE ANNUAL CU PRODUCTION 1 MINE LIFE CU GRADE 1.2Bt $1.47/lb $1,100M / 19% M&I TONNAGE CU CASH CASH COST1 NPV8% / IRR1 PHASE I FOOTPRINT REQUIRES STATE AND LOCAL PERMITS ONLY West Pit Peach-Elgin Pit Broadtop Butte Pit
Slide 19: Copper World Phase I PFS Highlights
COPPER WORLD PHASE I PFS HIGHLIGHTS ENHANCED PROJECT ECONOMICS, SIMPLIFIED FLOWSHEET AND EXTENDED MINE LIFE TO 20 YEARS COPPER PRICE SENSITIVITY ($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-min
Slide 20: Prudent Approach to Greenfield Project Development
PRUDENT APPROACH TO GREENFIELD PROJECT DEVELOPMENT DISCIPLINED THREE PREREQUISITES (“3-P”) PLAN FOR SANCTIONING COPPER WORLD PERMITS Receipt of all state level permits required for Phase 1 PRUDENT FINANCING STRATEGY Joint Venture Partner Committed minority JV partner Stream Partner Renegotiated prec
Slide 21: Mason Project
MASON PROJECT LARGE OPEN PIT COPPER PROJECT WITH 2.2Bt $1.76/lb 27 YEARS SIGNIFICANT LAND PACKAGE 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 22: 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 Leviatan Constancia DELINEATED TO-DATE 1.0Mt Cu MINED TO-DATE PERU Pampacancha Lima Tintaya Paquita
Slide 23: Constancia Priority Satellite Targets
CONSTANCIA PRIORITY SATELLITE TARGETS EXPLORATION ACTIVITES COMMENCED IN AUGUST 2022 AFTER SIGNING OF COMMUNITY AGREEMENT 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 h
Slide 24: Lalor Exploration Potential
LALOR EXPLORATION POTENTIAL 1.7M OUNCES OF GOLD IN INFERRED RESOURCES AND NEAR-MINE EXTENSION POTENTIAL LALOR MINE LIFE EXTENSION LALOR DOWN PLUNGE DRILLING 0m 100m 250m 500m Winter 2023 drilling program – all holes Exhaust raise Shaft intersected the alternation zone known to host the Ramp to C Lal
Slide 25: Snow Lake Exploration Potential
SNOW LAKE EXPLORATION POTENTIAL POTENTIAL FOR ANOTHER SNOW LAKE ANCHOR DEPOSIT IN THE REGION COOK LAKE PROPERTIES PLAN VIEW OF LALOR & COOK LAKE CLAIMS • Completed acquisition from Glencore in June 2023 • Located within 30km of the Stall and New Britannia facilities • Potential for new deposits on t
Slide 26: Committed to Sustainability
H' DBAY COMMITTED TO SUSTAINABILITY
Slide 27: 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 m
Slide 28: Environment
ENVIRONMENT WE AIM TO DEVELOP, OPERATE AND CLOSE MINES IN A MANNER THAT DEMONSTRATES OUR COMMITMENT TO ENVIRONMENTAL STEWARDSHIP ↓50% Net Zero Scope 3 New Projects lower absolute Scope 1 and Scope 2 total emissions by 2050 emissions reporting to be introduced and acquisitions will be assessed agains
Slide 29: 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 in 2023 significant near-term production and free cash flow growth and 2024 LEADING COPPER EXPOSURE 150,000 ton
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Slide 31: Creating Value with Purpose
CREATING VALUE WITH PURPOSE We transform lives: We invest in our employees, their families and local communities through long-term employment, local procurement and economic development to improve their quality of life and ensure the communities benefit from our presence. We operate responsibly: Fro
Slide 32: Our Approach to Sustainability
OUR APPROACH TO SUSTAINABILITY MUTUAL RESPECT, TRUST AND CONTINUOUS DIALOGUE By living our values, we build strong relationships with our employees, host communities and governments, making us a better partner and a better company Our Values are: Dignity & Respect: Caring: We treat our stakeholders
Slide 33: 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 34: Board of Directors
BOARD OF DIRECTORS STEPHEN A. LANG PETER KUKIELSKI CAROL T. BANDUCCI CHAIR PRESIDENT & CEO DIRECTOR Stephen has over 40 years of experience Peter has more than 30 years of experience Carol was formerly the EVP & CFO of in the mining industry, including within the base & precious metals and bulk IAMG
Slide 35: Emissions Reduction Roadmap to 2030
EMISSIONS REDUCTION ROADMAP TO 2030 MULTIPLE PATHWAYS TO ACHIEVE A 50% REDUCTION IN EMISSIONS BY 2030 GHG REDUCTION OPPORTUNITIES 300 Continued focus on operating efficiencies to reduce emissions intensity Evaluating existing and new technologies as they are advanced to become commercially available
Slide 36: 3-Year Production Guidance
3-YEAR PRODUCTION GUIDANCE 23% INCREASE IN COPPER PRODUCTION AND 30% INCREASE IN GOLD PRODUCTION OVER NEXT 3 YEARS CONTAINED METAL IN CONCENTRATE AND DORE1 2023 GUIDANCE 2024 GUIDANCE 2025 GUIDANCE PERU Copper tonnes 91,000 - 116,000 107,000 - 132,000 94,000 - 120,000 Gold ounces 83,000 - 108,000 96
Slide 37: 2023 Cost Guidance
2023 COST GUIDANCE $65 MILLION LOWER DISCRETIONARY SPENDING YEAR-OVER-YEAR CAPITAL EXPENDITURES1 ($M) EXPLORATION EXPENDITURES5 ($M) 2023 Guidance 2022 Actuals Sustaining capital 2023 Guidance2 2022 Actuals Peru 15 25 Peru3 160 102 Manitoba 15 14 Manitoba4 75 125 Arizona and other 0 38 Total sustain
Slide 38: South America Business Unit
SOUTH AMERICA BUSINESS UNIT Cusco CUSCO MINE TOWN Las Bambas RAIL ROAD CONSTANCIA PERU Yauri LLAGUEN Trujillo Tintaya Antapaccay Lima AREQUIPA Imata CONSTANCIA Arequipa Cerro Verde MOQUEGUA & Matarani 0 100km TACNA 38
Slide 39: Constancia Mine Plan
CONSTANCIA MINE PLAN 16-YEAR MINE PLAN BASED ON PROVEN AND PROBABLE RESERVES ONLY Updated mine plan for Constancia operations reflects higher copper and gold production from 2022 to 2025 as the higher grades from the Pampacancha deposit enter the mine plan 2029-2037 CONSTANCIA OPERATIONS 2021A 2022A
Slide 40: 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 41: Llaguen Project
LLAGUEN PROJECT COPPER PIPELINE PROJECT IN A FAVOURABLE LOCATION MINERAL RESOURCE ESTIMATE AS AT NOVEMBER 1, 2022 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 42: Peru Mineral Reserves
PERU MINERAL RESERVES (AS AT JANUARY 1, 2023) CATEGORY TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) CONSTANCIA Proven 411,200,000 0.28 79 0.041 2.85 Probable 46,500,000 0.23 79 0.038 2.84 TOTAL PROVEN AND PROBABLE 457,700,000 0.28 79 0.040 2.85 PAMPACANCHA Proven 34,100,000 0.59 153 0.320 4.98 Probable
Slide 43: Peru Mineral Resources
PERU MINERAL RESOURCES (AS AT JANUARY 1, 2023) CATEGORY TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) CONSTANCIA Measured 118,400,000 0.20 62 0.033 1.86 Indicated 140,700,000 0.23 73 0.040 2.20 Inferred – Open Pit 56,700,000 0.27 82 0.044 1.86 Inferred – Underground 6,500,000 1.20 69 0.137 8.62 PAMPACANC
Slide 44: Llaguen Mineral Resources
LLAGUEN MINERAL RESOURCES (AS AT JANUARY 1, 2023) PROPERTY CATEGORY TONNES Cu (%) Mo (g/t) Au (g/t) Ag (g/t) Indicated Global 271,000,000 0.33 218 0.033 2.04 (≥ 0.14% Cu) Llaguen Including Indicated High-grade 113,000,000 0.49 291 0.046 2.73 (≥ 0.30% Cu) Inferred Global 83,000,000 0.24 127 0.024 1.4
Slide 45: Manitoba Business Unit
MANITOBA BUSINESS UNIT New Britannia Gold Mill 1,650 tpd capacity MINE MILL Snow Lake TOWN RAIL Stall Base Metal Mill ROAD LALOR MINE 3,800 tpd capacity ~4,650 tpd LALOR 0 5km MANITOBA SASKATCHEWAN Winnipeg Snow Lake LALOR MINE Flin Flon Flin Flon Base Metal Mill* care & maintenance (6,000 tpd capac
Slide 46: Snow Lake Mine Plan
SNOW LAKE MINE PLAN 17-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 and reflects the first full year of production at the New Britannia gold mill in 2022 2028-2037 SNOW LAKE OPERATIONS1 2021A 2022
Slide 47: Snow Lake Process – 2023
SNOW LAKE PROCESS – 2023 Lalor LalorCrushed CrushedOre Ore Stall Mill New Britannia Mill tp d 1,650 3,050 t pd Grinding Grinding Cu c onc Flotation (via . to New Flotation pipe line) Britann onc. ia Cu c Tails to Tails Cyanide Zn Concentrate Cu Concentrate Anderson TIA or Leaching/CIP Destruction De
Slide 48: Snow Lake Growth Over Time
SNOW LAKE GROWTH OVER TIME OVER 3.2M OUNCES OF GOLD HAS BEEN IDENTIFIED AS RESERVES / PRODUCED TO DATE +350% 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 49: Snow Lake Land Consolidation
SNOW LAKE LAND CONSOLIDATION ROCKCLIFF ACQUISITION 250% Increase in Snow Lake Land Package • Consolidates highly prospective land in Snow Lake region with completion of Rockcliff acquisition. • Consolidates Talbot deposit ownership. • Adds adjacent land to Hudbay’s Pen II zinc deposit. • Transaction
Slide 50: 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 51: Snow Lake Reserves & Resources Lalor & 1901
SNOW LAKE RESERVES & RESOURCES LALOR & 1901 (AS AT JANUARY 1, 2023) PROPERTY CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) Proven Lalor 5,977,000 2.5 5.17 0.42 28.7 Base Metal Zone 1901 1,278,000 2.2 8.14 0.30 27.4 Probable Lalor 522,000 2.6 4.59 0.36 30.3 1901 245,000 0.8 10.70 0.30 25.2 Total Ba
Slide 52: Snow Lake Reserves & Resources Other Gold
SNOW LAKE RESERVES & RESOURCES OTHER GOLD (AS AT JANUARY 1, 2023) PROPERTY CATEGORY TONNES Au (g/t) Zn (%) Cu (%) WIM Probable 2,450,000 1.6 0.25 1.63 3 Zone Probable 660,000 4.2 - - TOTAL WIM + 3 ZONE PROBABLE (GOLD) 3,110,000 2.2 2.20 1.28 Birch Inferred 570,000 4.4 - - New Britannia Inferred 2,75
Slide 53: Snow Lake Reserves & Resources Other Base Metals
SNOW LAKE RESERVES & RESOURCES OTHER BASE METALS (AS AT JANUARY 1, 2023) PROPERTY CATEGORY TONNES Au (g/t) Zn (%) Cu (%) Ag (g/t) PEN II Indicated 470,000 0.3 8.89 0.49 6.8 Talbot1 Indicated 2,190,000 2.1 1.79 2.33 36.0 TOTAL INDICATED (BASE METALS) 2,660,000 1.8 3.04 2.01 30.9 Watts River Inferred
Slide 54: British Columbia Business Unit
BRITISH COLUMBIA BUSINESS UNIT MINE MILL Kamloops TOWN ROAD NEW AFTON MINE HIGHLAND VALLEY COPPER MINE Kelowna COPPER MOUNTAIN COPPER MOUNTAIN Vancouver MINE 0 20km 54
Slide 55: Copper Mountain Acquisition Creates a Premier Producer
COPPER MOUNTAIN ACQUISITION CREATES A PREMIER AMERICAS-FOCUSED COPPER PRODUCER Commodity Efficiencies Diversification Deleveraging 2 Capital Scale 9 Cu Allocation Copper Enhanced Core exposure to competencies Accelerates Balanced core commodity extract value deleveraging weighting Copper and optimiz
Slide 56: Copper Mountain Mine Near-Term Focus
COPPER MOUNTAIN MINE NEAR-TERM FOCUS Phase I – Stabilization Phase II – Optimization OPERATIONAL INTEGRATION IMPROVE BEYOND BASE Alignment of Standards (KPIs, Reconciliation) Usage of Hudbay owned equipment – throughput improvement with low capital Update Resource Modeling Mining fleet and contracto
Slide 57: The Hudbay Advantage – Efficient Operations
THE HUDBAY ADVANTAGE – EFFICIENT OPERATIONS CONSTANCIA IS ONE OF THE LOWEST COST COPPER MINES IN SOUTH AMERICA 2022 Mine Site Cost (US$/tonne milled) $39.9 Continuous operational improvements at Constancia have driven costs down, while increasing efficiencies and productivity Copper Mountain Mine $2
Slide 58: Copper Mountain Efficiencies & Synergies
COPPER MOUNTAIN EFFICIENCIES & SYNERGIES HUDBAY EXPECTS US$30M OF ANNUAL EFFICIENCIES AND SYNERGIES US$20M of Annual Operating Efficiencies US$10M of Annual from Copper Mountain Mine1 Corporate Synergies1 Improve productivity in key areas Shared Services Increase throughput and reduce costs Tax opti
Slide 59: Arizona Business Unit
ARIZONA BUSINESS UNIT MINE TOWN RAIL ROAD Miami Pinto Valley Phoenix Resolution ARIZONA, US Ray Morenci Florence Safford Silver Bell Phoenix Tucson Gunnison Tucson Mission Sierrita COPPER WORLD COPPER WORLD Maps are not to scale Taylor 0 25km 50km 59
Slide 60: Copper World
COPPER WORLD SUCCESSFUL EXECUTION OF ALTERNATIVE STRATEGY TWO-PHASED MINE PLAN Image sourced from 2022 PEA Discovered New Mineralization on Patented Mining Claims • Initiated a drill program in 2020 and subsequently expanded throughout 2021 with encouraging results. • Discovered oxide and sulfide mi
Slide 61: 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 62: Copper World Phase I – PFS vs. PEA
COPPER WORLD PHASE I – PFS VS. PEA 2022 PEA – PHASE I 2023 PFS – PHASE I Mine Life 16-year 20-year State and local permitting State and local permitting Total Production 1.4Mt Cu 1.6Mt Cu Avg. Annual Production 86kt 85kt (92kt in first 10 years) Avg. Mill Head Grade 0.47% 0.54% Sulfide Concentrator
Slide 63: Copper World Phase I Production Profile
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 63
Slide 64: Copper World Optimization & Upside
COPPER WORLD OPTIMIZATION & UPSIDE MANY OPPORTUNITIES TO FURTHER INCREASE PRODUCTION, EXTEND MINE LIFE AND REDUCE ENVIRONMENTAL IMPACTS Mine Life Extension Potential • There remains ~60% of total copper contained in measured and indicated mineral resources excluding PFS reserves, providing significa
Slide 65: Copper World Positioning
COPPER WORLD POSITIONING HIGHEST GRADE COPPER MINE VERSUS COMPARABLE PROJECTS 0.54% 0.44% 0.40% 0.39% 0.39% 0.38% 0.36% 2P Reserve Grade (% Cu)1 0.30% 0.28% 0.17% Copper Taca Taca NuevaUnion Filo del Sol El Arco Zafranal Vizcachitas Josemaria Yellowhead Casino World (Oxides) Country Rating AA+ CCC-
Slide 66: Copper World Positioning
COPPER WORLD POSITIONING ONE OF THE BEST UNDEVELOPED COPPER PROJECTS – CAPITAL LIGHT, LOW COMPLEXITY Source: Company public filings Note: Peer set comprised of greenfield, open pit, porphyry projects with reserves located in the Americas, with LOM average Cu production of +65kpta. 66
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 $250 Phase I Capex Less: WPM Stream Less: Project Financing Funding R
Slide 68: Copper World Positioning
COPPER WORLD POSITIONING ATTRACTIVE CAPITAL INTENSITY COMPARED TO OPEN PIT PROJECTS AND RECENT MINE BUILDS IN THE AMERICAS Capital Intensity ($/tonne Cu) 1,2 Country Rating AAA AAA AA+ CCC- A+ A+ BBB BBB+ CCC- BBB+ CCC- BBB- A+ AAA Source: Company public filings. Note: Zafranal is excluded from capi
Slide 69: Scarcity of New Copper Projects
SCARCITY OF NEW COPPER PROJECTS WOODMAC PROBABLE PROJECTS – NEW SUPPLY BY REGION Avg. Annual Rank Project Country Production (Cu) Production start date 2024 – 2028 1 Baimskaya Russia 250 kt North America, 8% Australia, 7% Papua New PNG&&Philippines, PNG Philipines, 18% 2 Wafi-Golpu 177 kt Guinea Sou
Slide 70: Copper World Ore Mined by Deposit
COPPER WORLD ORE MINED BY DEPOSIT 70
Slide 71: 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. Cash costs of $1.47/lb and sustaining cash cost Valuation Metrics (Unlevered)1 Units Phase 1 of $1.81/lb. Net present value @ 8% (after-tax) $ millions $1,100 Avg. annual E
Slide 72: Copper World Mineral Reserve & Resource Estimates
COPPER WORLD MINERAL RESERVE & RESOURCE ESTIMATES (AS AT JULY 1, 2023) CATEGORY TONNES (M) Cu (%) Mo (g/t) Au (g/t) Ag (g/t) Proven reserves 319 0.54 0.11 110 0.03 5.68 Probable reserves 66 0.52 0.14 96 0.02 4.31 TOTAL MINERAL RESERVES 385 0.54 0.12 108 0.02 5.44 Measured resources 888 0.43 0.10 121
Slide 73: Nevada – Mason Project
NEVADA – MASON PROJECT TOWN Road HUDBAY MINERAL CLAIMS HUDBAY PRIVATE LAND CLAIMS Power Plant POWER LINE RAIL MINE / DEPOSIT Lyon County Douglas County NEVADA MacArthur Reno Yerington Blue Hill Mine (Historic) MASON PROJECT MASON Yerington Mason Las Vegas Pumpkin Hollow Mason Valley Mines (Historic)
Slide 74: Mason Mineral Resources
MASON MINERAL RESOURCES (AS AT JANUARY 1, 2023) PROPERTY CATEGORY 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 MASON MEASURED AND INDICATED 2,219,000,000 0.29 67 0.029 0.63 Mason Inferred 237,000,000 0.24 78 0
Slide 75: 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
Hudbay Minerals — Jefferies Industrials Conference 2023 on 6ix