Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Shareholder Meeting (May 2016)
20 slides from Hudbay Minerals's shareholder meeting presentation, May 19, 2016
Slide 1: Annual and Special Meeting of Shareholders
ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS MAY 19, 2016 HBM
Slide 2: Warren Holmes | Chairman
MINING EXPERIENCE H' DBAY WARREN HOLMES | CHAIRMAN ~—— eee ~ ~ HEM TMG INYSE oS ad
Slide 3: Alan Hair | President and Chief Executive Officer
ALAN HAIR | PRESIDENT AND CHIEF EXECUTIVE OFFICER HBM
Slide 4: 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 5: 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 6: 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 7: 2015 Achievements
2015 Achievements MILESTONES ACHIEVED WHILE OVERCOMING CHALLENGES Lost Time Accident Frequency Rate of 0.3 Reached commercial production on schedule at Constancia and completed ramp-up to full production as expected Solved logistical challenges in transporting copper concentrate in Peru Negotiated c
Slide 8: 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 Adopted internationally recognized Voluntary Principles for security and human rights in Peru ISO 14001 and O
Slide 9: Transformational Year
Transformational Year Over 290% growth in copper production1 year-over-year More than 10-fold increase in operating cash flows2 year-over-year Transformed into primary copper producer with 66% of revenues from copper Cu Production1 2014 Revenue3 2015 Revenue3 +290% South America Business Unit Manito
Slide 10: Well-Positioned for Lower Commodity Prices
Well-Positioned for Lower Commodity Prices Base metal equities are under pressure as copper prices have been declining over the past few years Hudbay is managing its business for lower commodity prices; Hudbay benefits from low-cost, long-life assets Relative Price Performance (2013 to Present) AGM
Slide 11: Long-Life, Low-Cost Asset Base
Long-Life, Low-Cost Asset Base Business Unit Asset Location Primary Metal Mine Life South America Constancia Mine Southern Peru Cu 21 years Production Lalor Mine Snow Lake Zn, Au 15 years Manitoba 777 Mine Flin Flon Cu, Zn 5 years Reed Mine Near Flin Flon Cu 3 years Growth Arizona Rosemont Project P
Slide 12: South America Business Unit
South America Business Unit Cusco CUSCO APURIMAC Las Bambas CONSTANCIA PUNO Yauri Tintaya Antapaccay Constancia Pit AYACUCHO AREQUIPA Imata PERU Arequipa Lima Cerro Verde MINE MOQUEGUA TOWN CONSTANCIA Matarani RAILROAD ROAD 0 TACNA 100km LAS BAMBAS HAUL ROAD AGM PRESENTATION | 12
Slide 13: Constancia Mine
Constancia Mine 100%-OWNED COPPER MINE IN PERU Low-cost, long-life copper mine achieved commercial production in Q2 2015 Current focus is on further enhancement of costs and plant performance Copper sulphide recoveries at target; total copper production in line with Constancia Open Pit expectations
Slide 14: Manitoba Business Unit
Manitoba Business Unit Aerial View of Lalor Mine Site New Britannia Mill Snow Lake LALOR MINE Snow Lake (Stall) Mill 0 5km SASKATCHEWAN MANITOBA MANITOBA CANADA Snow Lake 777 LALOR 777 MINE LALOR MINE REED Flin Flon Flin Flon Mill MINE MILL Winnipeg TOWN REED MINE RAILROAD 0 50km ROAD AGM PRESENTATI
Slide 15: Lalor Mine
Lalor Mine 100%-OWNED ZINC AND GOLD MINE IN MANITOBA Main production shaft operating at a steady state Upgraded Snow Lake concentrator with production capacity of 3,000 tonnes per day Lalor Mine Site Study on expansion to up to 4,300 tonnes per day expected by end of 2016, incorporating newly acquir
Slide 16: 777 and Reed Mines
777 and Reed Mines COPPER AND ZINC MINES IN MANITOBA Steady, low-cost production in Flin Flon Optimizing operations to end of mine life Plan to keep Flin Flon processing assets on care and maintenance after mine closures to maintain regional optionality Consistently strong safety performance 777 Hea
Slide 17: 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 Patagonia TOWN RAILROAD ROSEMONT 0 25km ROAD AGM PRESENTATION | 17
Slide 18: Rosemont Project
Rosemont Project 80%-OWNED1 COPPER PROJECT IN ARIZONA High-quality development project with well-established infrastructure Permitting and community engagement progressing $30 million expected to be spent during the full year of 2016 to advance permitting and engineering studies Expected to be one o
Slide 19: 2016 Objectives
2016 Objectives Strengthen liquidity position by identifying cost savings and deferring debt repayments Arrange 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 and
Slide 20: Annual and Special Meeting of Shareholders
ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS MAY 19, 2016 HBM