Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q4 2015 Earnings Presentation
12 slides from Hudbay Minerals's earnings presentation, Feb 25, 2016
Slide 1: Q4 2015 Presentation
Q4 2015 Presentation February 25, 2016 HBM Q4 2015 RESULTS
Slide 2: Cautionary Information
Cautionary 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 this presentation, other tha
Slide 3: Cautionary Information (continued)
Cautionary 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, risks generally associated with the mining industry
Slide 4: Cautionary Information (continued)
Cautionary Information (continued) The technical and scientific information in this presentation related to the Constancia mine has been approved by Cashel Meagher, P. Geo, Hudbay’s Senior Vice President and Chief Operating Officer. The technical and scientific information related to all other sites
Slide 5: 2015 Achievements
2015 Achievements TRANSITION YEAR ! Reached commercial production on schedule at Constancia, and completed ramp-up as expected in H2 2015 ! Overcame logistical challenges in transporting copper concentrate ! Resolved labour dispute in Manitoba ! Completed ramp-up of Lalor mine and Snow Lake concentr
Slide 6: Improved Financial Results
Improved Financial Results ! Growth in Cu production and sales, revenue and operating cash flow y/y in Q4/15 and 2015 ! Copper cash cost per pound increased y/y in Q4/15, but declined y/y in 2015 ! Liquidity ~$288 million, includes ~$46 million in accounts receivable 3-Months Ended Dec. 31 Year Ende
Slide 7: Cost Reductions
Cost Reductions ! 2016 planned capital spending and operating expenses reduced by over $100 million; no impact on production guidance Original Revised Capital Expenditures1 (Millions) (Millions) Sustaining Capital Manitoba 90 80 Peru 180 140 Total Sustaining Capital 270 220 Growth Capital Arizona2 3
Slide 8: Liquidity Enhancements
Liquidity Enhancements HARMONIZATION OF CANADA AND PERU CREDIT FACILITIES ! Commitments of $500 million received from existing lenders • Discussions ongoing to reach full $550 million of availability ! Key amendments to both facilities: • Repayment due in March 2019 (defers $53 million of 2016 sched
Slide 9: Peru Operations Review
Peru Operations Review ! Focus on optimization of mine costs and plant performance ! 2015 Cu production of 105,897 t in line with guidance; Cu sulphide recoveries at target ! Combined unit operating costs $8.57/t in Q4/15 Flotation cells and $8.41/t in 2015 - below guidance range ! Logistics issues
Slide 10: Manitoba Operations Review
Manitoba Operations Review ! Cu and Au production was stable y/y in Q4/15 ! Zn and Ag production rose y/y due to higher tonnage at Lalor and higher grades at 777 and Reed in Q4/15 ! In 2015, production of all metals increased y/y; Loading ore for transportstion from Reed to Flin Flon production and
Slide 11: 2016 Objectives
2016 Objectives ü Strengthen liquidity position by identifying cost savings and deferring debt repayments ü Provide more flexible financial covenants on credit facilities ! Achieve capital and operating cost efficiencies to maximize free cash flow ! Deliver low-cost production growth in copper, zinc
Slide 12: For more information contact
For more information contact: Candace Brûlé Director, Investor Relations Tel: 416.814.4387 Email: candace.brule@hudbayminerals.com HBM Q4 2015 RESULTS