Hudbay Minerals Inc · TSX:HBM
Hudbay Minerals — Shareholder Meeting (May 2020)
20 slides from Hudbay Minerals's shareholder meeting presentation, May 21, 2020
Slide 1: 2020 Annual and Special Meeting of Shareholders
2 0 2 0 AN N U A L AN D S P E C I AL M E E T I N G O F S H AR E H O L D E R S May 21, 2020 10:00AM ET
Slide 2: 2020 Annual & Special Meeting Agenda
2020 ANNUAL & SPECIAL MEETING AGENDA 1. Introduction 2. Call meeting to order and appoint secretary and scrutineer 3. Presentation of the financial statements and auditor’s report 4. Election of directors STEPHEN A. LANG 5. Appointment of auditor CHAIR 6. Non-binding advisory resolution on executive
Slide 3: Business Update
B U S I N E S S U P D AT E Peter Kukielski President & CEO
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. Oft
Slide 5: Diversified Mid-Tier Copper Producer
DIVERSIFIED MID-TIER COPPER PRODUCER About Hudbay TSX, NYSE, BVL Symbol HBM Long Life & Mining Friendly Jurisdictions Market Capitalization1 C$0.9 billion Low Cost & Shares Outstanding 261 million Operational Excellence MANITOBA 777 Available Liquidity2 $0.75 billion Lalor Free Cash Flow & WIM & 3 Z
Slide 6: The Hudbay Advantage
THE HUDBAY ADVANTAGE About Hudbay Long Life & Mining Friendly Long life assets located in mining friendly jurisdictions Jurisdictions Low Cost & Operational Proven track record of operational excellence and low cost mines Excellence Free Cash Flow & Prudent Capital Focused on free cash flow generati
Slide 7: Long Life Assets Located in Mining Friendly Regions
LONG LIFE ASSETS LOCATED IN MINING FRIENDLY REGIONS 2 Past Production Reserve Life1 M&I Resource Life Inferred Resource Life 3 About Hudbay 4 Long Life & Rosemont 19 11 1 Mining Friendly Jurisdictions Constancia 5 17 5 2 Low Cost & Snow Lake 5 8 18 9 Operational Excellence 777 16 2.5 0.3 Free Cash F
Slide 8: Proven Track Record of Operational Excellence & Low Cost Mines
PROVEN TRACK RECORD OF OPERATIONAL EXCELLENCE & LOW COST MINES About Hudbay • Proven track record of achieving or exceeding copper production guidance every year Long Life & for the past 5 years Mining Friendly Jurisdictions • Hudbay is well-positioned on the cash cost curve Low Cost & Operational •
Slide 9: Leading Operating Cost Performance
LEADING OPERATING COST PERFORMANCE CONSTANCIA ONE OF THE LOWEST COST COPPER MINES IN SOUTH AMERICA About Hudbay • Continuous operational improvements at Constancia have driven costs down, while increasing Long Life & Mining Friendly efficiencies and productivity Jurisdictions Low Cost & LOWEST COST
Slide 10: Focused on Free Cash Flow Generation & Prudent Balance Sheet Management
FOCUSED ON FREE CASH FLOW GENERATION & PRUDENT BALANCE SHEET MANAGEMENT About Hudbay • Generated significant EBITDA and positive free cash flow during the volatile copper price environment over the last several years due to un-hedged production and stable low-cost profile Long Life & Mining Friendly
Slide 11: Prudent Capital Allocation
PRUDENT CAPITAL ALLOCATION LEVERAGING EXPERTISE THAT WAS DEMONSTRATED THROUGH BEST IN CLASS About Hudbay DELIVERY OF CONSTANCIA Long Life & • Successfully constructed Constancia (Peru), Lalor (Canada) and Reed (Canada) mines Mining Friendly simultaneously during 2012-2014 Jurisdictions PAMPACANCHA N
Slide 12: Proven Mining Industry Experience
PROVEN MINING INDUSTRY EXPERIENCE BEST IN CLASS MINE DEVELOPMENT & ADDING VALUE THROUGH EXPLORATION About Hudbay • Constancia’s development and mine ramp-up CONSTANCIA (2009-2020)2 Caballito, Kusiorcco Long Life & Mining Friendly was best in class Production Reserves & Maria Reyna Jurisdictions • Hu
Slide 13: Snow Lake Gold Strategy
SNOW LAKE GOLD STRATEGY About Hudbay PHASE 1: Repositioning PHASE 2: Optimization PHASE 3: Historical Work Lalor as a Gold Mine & Execution Expansion Potential Long Life & Mining Friendly Jurisdictions 2008 & 2009 – Au zone and 2018 – Completion of 2020 – Optimized mine • Potential to increase
Slide 14: Copper Focused with Countercyclical Precious Metals Exposure
COPPER FOCUSED WITH COUNTERCYCLICAL PRECIOUS METALS EXPOSURE About Hudbay HUDBAY COMMODITY EXPOSURE Long Life & Mining Friendly 2% Jurisdictions 18% PRECIOUS METALS EXPOSURE VS. PEERS3 Low Cost & Cu Operational Zn 33% 32% Excellence 20191 58% Au + Ag 21% Mo Free Cash Flow & Prudent Capital Allocatio
Slide 15: Execution of Strategy
EXECUTION OF STRATEGY LEVERAGING HUDBAY’S KEY COMPETITIVE ADVANTAGES FOR VALUE CREATION About Hudbay Long Life & Mining Friendly LOW RISK, HIGH RETURN Jurisdictions SHORT-TERM PRIORITIES Low Cost & Operational ESG Drill Lalor gold and extend mine life Excellence Excellence Successful Prudently m
Slide 16: Leading Organic Growth Pipeline
LEADING ORGANIC GROWTH PIPELINE HUDBAY HAS BUILT A DIVERSIFIED PORTFOLIO FOCUSED ON COPPER & GOLD GROWTH About Hudbay • Through robust exploration and disciplined M&A, Hudbay has built a diversified portfolio of operating mines Long Life & and an extensive development pipeline Mining Friendly • Hudb
Slide 17: Strong Environmental, Social & Governance Performance
STRONG ENVIRONMENTAL, SOCIAL & GOVERNANCE (“ESG”) PERFORMANCE About Hudbay INDUSTRY LEADER IN RESPONSIBLE MINING ENVIRONMENT SOCIAL IMPACT HEALTH & SAFETY GOVERNANCE Long Life & Mining Friendly Jurisdictions 97% of electricity in Manitoba COVID-19 relief Constancia has the best Board refresh
Slide 18: COVID-19 Business Response
COVID-19 BUSINESS RESPONSE PROACTIVELY MONITORING, PLANNING AND RESPONDING TO THE RAPIDLY CHANGING About Hudbay ENVIRONMENT Long Life & Mining Friendly • Closely monitoring the pandemic since January; Crisis Management Plans were activated in early March Jurisdictions • First tier at the corporate l
Slide 19: Thank You
THANK YOU About Hudbay Long Life & Mining Friendly • Our 2019 Annual and Sustainability Report was released today and is available on our Jurisdictions website Low Cost & Operational Excellence Free Cash Flow & Prudent Capital Allocation Experienced Management Team Copper Focus & Organic Growth Pipe
Slide 20: Annual General Meeting
2 0 2 0 AN N U A L G E N E R AL MEETING May 21, 2020