Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Q3 2019 Earnings Presentation
12 slides from Hudbay Minerals's earnings presentation, Nov 12, 2019
Slide 1: Q3 2019 Results Presentation
Q 3 2 0 1 9 R E S U LT S P R E S E N TAT I O N November 12, 2019
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. Oft
Slide 3: Q3 2019 Consolidated Results
Q3 2019 CONSOLIDATED RESULTS KEY RESULTS SUMMARY • Solid operating quarter Q3 2019 Q2 2019 Overview Production1 • Record throughput at Constancia mill Copper kt 36.4 30.4 and strong cost performance in both Zinc kt 28.6 31.8 Peru and Manitoba South America Business Unit Precious Metals2 koz 41.5 39.
Slide 4: Peru Operations Review
PERU OPERATIONS REVIEW PERU SUMMARY OF OPERATING STATISTICS • On track to achieve 2019 production Q3 2019 Q2 2019 Overview and cost guidance Ore mined (million tonnes)1 8.4 8.2 • Production of 31,091 tonnes of Ore milled (million tonnes) 8.2 7.7 copper, an increase of 28% Copper grade milled 0.44% 0
Slide 5: Constancia Optimization
CONSTANCIA OPTIMIZATION SEEING RESULTS FROM CONTINUOUS OPTIMIZATION INITIATIVES Overview • Mill achieved record quarterly throughput in Q3 2019 • Installation of additional equipment relating to further optimization initiatives expected during the semi-annual maintenance shut down in Q4 2019 South A
Slide 6: Manitoba Operations Review
MANITOBA OPERATIONS REVIEW KEY RESULTS SUMMARY • Continue to maximize production Q3 2019 Q2 2019 Overview from 777 Ore mined (kt) 620 700 Ore milled (kt) 650 707 • Tonnage in Q3 2019 affected by Copper grade milled 0.94% 1.00% Lalor’s 5-year scheduled South America Zinc grade milled 4.90% 5.05% Busi
Slide 7: Manitoba Optimization
MANITOBA OPTIMIZATION BENEFITS OF IMPROVEMENT INITIATIVES Overview • Continued high tonnage out of 777 due to implementation of management systems • Combined unit costs stabilizing at a lower level following the ramp-up of Lalor in H1 2019 South America Business Unit 777 ORE AND MINING UNIT COSTS YE
Slide 8: Lalor Becomes a Meaningful Low-Cost Gold Mine
LALOR BECOMES A MEANINGFUL LOW-COST GOLD MINE • Lalor is well positioned with expected future production of 140,000 oz Au p.a. at sustaining cash costs of $450/oz starting in 2022 GOLD PRODUCTION1 (K OZ) 697 Overview 621 376 344 342 276 259 249 240 227 205 180 171 163 152 141 126 121 111 106 96 91 7
Slide 9: Snow Lake Reserves and Resources
SNOW LAKE RESERVES AND RESOURCES • Over 4 million tonnes of indicated and 13 million tonnes of inferred material within trucking distance of Stall and New Britannia could provide additional mill feed Overview RESERVES AND RESOURCES IN THE SNOW LAKE CAMP (M TONNES AND M OZS) OTHER RESOURCE UPSIDE 2P
Slide 10: Project Pipeline
PROJECT PIPELINE • Hudbay has built a diversified portfolio of operating mines and an extensive development pipeline through robust exploration and disciplined M&A to perpetuate Overview production growth South America Business Unit Production Constancia Lalor 777 Acquired 2011 Discovered 2007 Origi
Slide 11: Near-Term Catalysts
NEAR-TERM CATALYSTS NUMEROUS ORGANIC GROWTH OPPORTUNITIES EXIST Overview Upgrading Lalor inferred resources to reserves Q1 2020 Inferred resource estimate for Lens 17 at Lalor Q1 2020 Upgrading WIM, Pen II and New Britannia resources to reserves Q1 2020 MANITOBA Initial inferred resource estimate on
Slide 12: For More Information Contact
For More Information Contact: Candace Brûlé, Director, Investor Relations 416.814.4387 | candace.brule@hudbay.com