Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Shareholder Meeting (May 2017)
20 slides from Hudbay Minerals's shareholder meeting presentation, May 4, 2017
Slide 1: Annual Meeting of Shareholders
ANNUAL MEETING OF SHAREHOLDERS May 4, 2017
Slide 2: Warren Holmes, Chairman
WARREN HOLMES CHAIRMAN May 4, 2017
Slide 3: Alan Hair, President and CEO
ALAN HAIR PRESIDENT AND CEO May 4, 2017
Slide 4: 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 5: Cautionary Information
Cautionary Information 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, such as eco
Slide 6: Committed to Strong Social Responsibility
Committed to Strong Social Responsibility Strong commitment to safety with increased commitment to visible felt leadership and high potential incident prevention program over last two years ISO 14001 and OHSAS 18001 EHS certified operations1 - Constancia certified in early 2017 Adopted Mining Associ
Slide 7: Hudbay Incorporated in 1927
Hudbay Incorporated in 1927 7
Slide 8: Hudbay Today
Hudbay Today BUSINESS UNIT ASSET LOCATION PRIMARY METAL MINE LIFE1 South America Constancia Mine Southern Peru Cu 19 years Lalor Mine Snow Lake Zn, Au 10 years Manitoba 777 Mine Flin Flon Cu, Zn 4 years Reed Mine Near Flin Flon Cu 2 years Arizona Rosemont Project Pima County Cu 19 years 2016 REVENUE
Slide 9: 2016 Achievements
2016 Achievements ACHIEVED OBJECTIVES IN A YEAR OF VOLATILE METAL PRICES Delivered on capital and operating cost reduction targets Delivered low-cost production growth in copper, zinc and precious metals Refinanced long-term debt to extend term, obtain more flexible covenants and reduce the interest
Slide 10: Share Performance
Share Performance HUDBAY REGAINED MOMENTUM TOWARDS THE END OF 2016 • Hudbay has outperformed peers and the spot prices for copper and zinc over the last twelve months RELATIVE SHARE PRICE PERFORMANCE (LAST TWELVE MONTHS) 10
Slide 11: South America Business Unit
South America Business Unit Cusco CUSCO Las Bambas CONSTANCIA Yauri Tintaya Antapaccay CONSTANCIA PIT AREQUIPA Imata PERU Arequipa MINE TOWN Lima Cerro Verde RAILROAD MOQUEGUA ROAD CONSTANCIA Matarani LAS BAMBAS HAUL ROAD 0 TACNA 100km 11
Slide 12: Constancia Mine
Constancia Mine OPERATING AT FULL PRODUCTION • Low-cost, long-life copper mine began production at end of 2014 with 22 year initial mine life • Mining of high-grade Pampacancha satellite deposit expected in 2018-2021 with total project capital of $54 million • Higher production and lower costs over
Slide 13: Manitoba Business Unit
Manitoba Business Unit New Britannia Mill Snow Lake Stall Mill LALOR MINE LALOR MINE Stall Mill AERIAL VIEW OF LALOR MINE SITE 0 5km SASKATCHEWAN MANITOBA Snow Lake LALOR MINE 777 LALOR 777 MINE REED MINE Flin Flon MILL Flin Flon Mill TOWN RAILROAD Winnipeg REED MINE ROAD 0 50km 13
Slide 14: Lalor Mine
Lalor Mine PRODUCING LOW COST MINE WITH ZINC & GOLD UPSIDE POTENTIAL • Production shaft with capacity of 6,000tpd • Stall base metal concentrator currently processing ~3,000tpd of base metal Zn-rich ore • Updated Lalor mine plan incorporates 4,500tpd at Stall base metal concentrator beginning in 201
Slide 15: 777 and Reed Mines
777 and Reed Mines PRODUCING COPPER AND ZINC MINES • Steady, low-cost production • Ore processed at the Flin Flon concentrator • Optimizing operations to end of mine life • Plan to keep processing assets on care and 777 HEADFRAME maintenance after mine closures to maintain regional optionality REED
Slide 16: Arizona Business Unit
Arizona Business Unit Tucson Three Points Mission Complex ROSEMONT PROJECT SITE Twin Buttes Mine Sierrita Mine ROSEMONT Green Valley ARIZONA, US PIMA SANTA CRUZ Sonoita MINE Tucson TOWN Patagonia RAILROAD ROSEMONT ROAD 0 25km 16
Slide 17: Rosemont Project
Rosemont Project 80%-OWNED1 COPPER PROJECT • High-quality development project with well- established infrastructure • Rosemont March 2017 feasibility study demonstrates robust project economics based on thorough feasibility work and realistic assumptions • 19 year mine life generating 15.5% after-ta
Slide 18: 2017 Objectives
2017 Objectives Continue to focus on operating efficiencies to generate incremental free cash flow Advance high-return in-house brownfield opportunities • Lalor zinc / base metal throughput • Pampacancha • Lalor gold Advance permitting activities and technical work at Rosemont Use free cash flow to
Slide 19: Investment Highlights
Investment Highlights CLEAR AND DISCIPLINED GROWTH STRATEGY • Investment-grade countries in the Americas • VMS and porphyry geological focus • Accretive to NAV per share • “Drill and build” value creation strategy PROVEN TRACK RECORD • Successful project development of 3 new mines delivering growing
Slide 20: Annual Meeting of Shareholders
ANNUAL MEETING OF SHAREHOLDERS May 4, 2017