HBM TD Securities Mining Conference January 24 – 25, 2012
May 16, 2015
HBM
TD Securities Mining ConferenceJanuary 24 – 25, 2012
Forward Looking Informationg
This presentation contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes but is not limited to information concerning the company’s ability to develop its Lalor project, capital and operating cost assumptions, anticipated production numbers, the ability to meet production forecasts, the potential impact of changing economic conditions on HudBay’s financial results and the company’s strategies and future prospects. G ll f d l ki i f ti b id tifi d b th f f d l ki t i l h " l " " t " "d t t" "i t d"Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", “understands” or "does not anticipate", or "believes" or variations of such words and phrases or statements that certain actions, events or results “will”, "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory bodies).
Many of these assumptions are based on factors and events that are not within the control of HudBay and there is no assurance they will prove to be correct. Factors that could cause actual results or events to vary materially from results or events anticipated by such forward-looking information include the ability to develop and operate the Lalor project on an economic basis and in accordance with anticipated timelines, geological and technical conditions, risks associated with the mining industry such as economic factors (including costs of construction materials, future commodity prices, currency fluctuations and energy prices), failure of plant, equipment, processes and transportation services to operate as anticipated, including new and upgraded facilities at Lalor, dependence on key personnel, employee relations and availability of equipment and skilled personnel, environmental risks, government regulation, actual results of current exploration activities, possible variations in ore grade, dilution or recovery rates, permitting timelines, capital expenditures, reclamation activities, land titles, and social and political developments and other risks of the mining industry as well as those risk factors discussed in the company’s Annual Information Form dated March 31political developments and other risks of the mining industry, as well as those risk factors discussed in the company s Annual Information Form dated March 31, 2010, which risks may cause actual results to differ materially from any forward-looking statement.Although HudBay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. HudBay undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of HudBay, its financial or operating results or its securities. The reader is cautioned not to place undue reliance on forward-looking information.
2
Lalor Project DisclaimerjHudBay's production decision with respect to Lalor was not based on the results of a pre-feasibility study or feasibility study of mineral resources demonstrating economic or technical viability, because significant portions of the deposit are not able to be classified as a mineral reserve until they can be accessed from underground for additional drilling. Because of this, the production decision was based on mineral resources identified to date and estimates of potential grades and quantities of the gold zone and copper-gold zone, along with other available information, including cost estimates and portions of the engineering design, which have been completed to a level suitable for inclusion in a feasibility study. The preliminaryavailable information, including cost estimates and portions of the engineering design, which have been completed to a level suitable for inclusion in a feasibility study. The preliminary assessment respecting HudBay’s Lalor project is preliminary in nature, includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied that would enable them to be classified as mineral reserves and there is no certainty that the preliminary assessment will be realized. Among the risks associated with the decision to commence production at Lalor is the possibility that the gold zone will not be economically or technically viable, construction timetables, cost estimates and production forecasts may not be realized. The potential quantity and grade of the gold zone and copper-gold zone are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the targets being delineated as mineral resources.
Qualified Person
The technical and scientific information included in this presentation was approved by Robert Carter P Eng Manager Project Evaluation of HudBay a “qualified person” for theThe technical and scientific information included in this presentation was approved by Robert Carter, P. Eng, Manager, Project Evaluation of HudBay, a “qualified person” for the purposes of National Instrument 43-101.
Note to U.S. InvestorsInformation concerning the mineral properties of the Company has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements of SEC Industry Guide 7. Under SEC Industry Guide 7, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time of the reserve determination, and the SEC does not recognize the reporting of mineral deposits which do not meet the SEC Industry Guide 7 definition of “Reserve”. In accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators, the terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated , , p , p , , ,mineral resource” and “inferred mineral resource” are defined in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required by NI 43-101, the SEC does not recognize them. You are cautioned that, except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic value. Inferred mineral resources have a high degree of uncertainty as to their existence and as to whether they can be economically or legally mined. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of an economic analysis. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Therefore, you are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be economically or legally mined, or that it will ever be upgraded to a higher category. Likewise, you are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded into mineral reserves. You are urged to consider closely the disclosure on the technical terms in Schedule A “Glossary of Mining Terms” of our AIF for the fiscal year ended December 31 2010 available on SEDAR at www sedar com and incorporated by reference as Exhibit 99 1 in our Form 40 F filedof Mining Terms of our AIF for the fiscal year ended December 31, 2010, available on SEDAR at www.sedar.com and incorporated by reference as Exhibit 99.1 in our Form 40-F filed on March 31, 2011 (File No. 001- 34244).
3
Investment Highlights A i ifi t ti t it
Production GrowthSi ifi t ld d i d ti th f 255% 135% d 65%
A significant re-rating opportunity
1• Significant copper, gold and zinc production growth of 255%, 135% and 65%
respectively, anticipated over four years as Lalor, Constancia and Reed are put into production
• Further production upside expected at Back Forty
Di i li d d Cl G th St t2 Disciplined and Clear Growth Strategy• Commodity exposure on a per share basis greatly expanded with addition of
Constancia project• Portfolio of early stage opportunities continues to grow with holdings in 16
exploration and development companies worth approximately $100 million
2
exploration and development companies worth approximately $100 million• Growing gold business represents a further significant re-rating opportunity
Consistent Performance from Existing Low Risk Operations• Strong cash flow generation from existing mines
3• 1,300 employees with an average of 19 years of service
Fully Funded Growth• $1.1 billion of liquidity available
4• Dividend reinforces capital allocation discipline• Increasing trading liquidity with NYSE listing
4
Production Growth
Cu Production Precious Metals Production(1) Zn Production
100
125
200
240
125
150(kt) (koz) (kt)
50
75
120
160
75
100
2540
80
25
50
255% Growth
02012E 2016E
135% Growth
02012E 2016E
65% Growth
02012E 2016E
HudBay - Current Ops (2) Lalor (3) Constancia (4) Reed (5)
5
(1) Silver converted to gold at a ratio of 50:1.(2) Based on midpoint of 2012 forecasted production released on December 19, 2011. Anticipated production for 2016 is based on 777 and the 777
North expansion.(3) Lalor’s anticipated 2016 gold equivalent production includes production from inferred resources and the conceptual gold zone.(4) Based on contained metal in concentrate per NI 43-101 technical report titled, “Constancia Project Technical Report”, dated February 21, 2011.(5) Reflects 70% attributable production to HudBay.
y p
Metals Reserves Growth N d li f C i l tNear quadrupling of Cu equivalent reserves
Copper Eq. Reserves & Resources
1550
5,000
(000 tonnes)5334
& Resources
288% increase in copper equivalent reserves(all metals)
713
1550
3,000
4,000
3198288%
68% increase in precious metals reserves and resourcesP & P b bl R 3 0 M
30711121
1286
2,000
Proven & Probable Reserves 3.0 M ozMeasured + Indicated Resources 1.1 M ozInferred Resources 1.9 M ozExcludes Lalor Conceptual Est 1 1 – 1 6 M oz
791
0
1,000
2010 20111,3 2,3
Excludes Lalor Conceptual Est 1.1 – 1.6 M oz
6
(1) HudBay reserves as of January 1, 2010, excluding Fenix. (2) HudBay reserves as of March 31, 2011 excluding Fenix. (3) In-situ value calculated using commodity prices of US$900/oz Au, US$0.95/lb Zn, US$2.50/lb Cu and US$12.00/lb Mo;
silver converted to gold at ratio of 60:1
Proven & Probable InferredMeasured & Indicated
Expansion in Commodity Exposure Per SharePer Share
Pb10% Cu
2010 (1)(3) Copper Eq. Reserves & Resources per Share10%
Au Eq.18%
16%Resources per Share
19 860
70
(lb Cu/sh)68.1
Zn56%
Copper
Gold equivalentZinc 9.1
18 4
19.8
40
50 45.8
Pb6%
Mo4%
Cu39%Au Eq.
16%
2011 (2)(3)
MolybdenumLead
39.216.1
18.4
20
30
Zn33%
16%
11.3
0
10
2010 2011
7
(1) HudBay reserves and resources as of January 1, 2010, excluding Fenix. Per share metrics for 2010 are based on 153.9M basic shares outstanding as at Dec. 31, 2009. (2) HudBay reserves and resources as of March 31, 2011 excluding Fenix. Per share metrics for 2011 are based on 149.4M basic shares outstanding as at Dec. 31, 2010
plus 23.4M shares issued to complete the Norsemont Mining acquisition.(3) In-situ value calculated using commodity prices of US$900/oz Au, US$0.95/lb Zn, US$2.50/lb Cu and US$12.00/lb Mo; silver converted to gold at ratio of 60:1
Proven & Probable InferredMeasured & Indicated
Strong Financial Performance Strong cash flows reflect higher metal sales volumes
Nine Months Ended
Strong cash flows reflect higher metal sales volumes and prices
Three Months Ended
212,335 167,778 636,503
Sept 30Sept 30
Revenue
2011 20102011 2010
596,425
37,473
(41,083)
22,416
(1,743)
139,212
(197,874)
Profit before tax
Profit (Loss) for the period
82,075
13,149
(0.23)
58,316
(0.01)
25,597
(1.14)
168,119
EPS
Operating cash flow 1
0.09
136,387
0.34 0.17 1.01Operating cash flow per share 1 0.90
81 Before changes in non-cash working capital. Operating cash flow and operating cash flow per share are considered non-IFRS measures. See "Non-IFRS
Measures" in our Management's Discussion and Analysis for the quarter ending September 30, 2011.
Production Results O t k t t f ll 2011 id
Nine Months Ended
On track to meet full year 2011 guidance
Three Months Ended Guidance1
Sept 30Sept 30
Copper 1 tonnes 14,264 35-40,00014,913
201140,490
201038,753
2011 2010 2012
Zinc 1 tonnes
Precious Metals 1,2 troy oz.
18,160
30,181
70-85,000
85-105,000
18,091
27,163
54,246
82,456
58,194
74,337
Co-Product Cash Costs 3
Gold US$/oz
Copper US$/lb
$500$1.63
$323
$1.34
$346$1.40
$382
$1.45Zinc US$/lb $0.94 $0.83 $0.98 $0.89
9
1 Metal reported in concentrate prior to refining loses or deductions associated with smelter terms.2 Silver production converted to gold at the average gold and silver realized sales prices during each respective quarter. 3 Cash costs are considered non-IFRS measures. See "Non-IFRS Measures" in our Management's Discussion and Analysis for the quarter ending September
30, 2011.
Solid Financial PositionA il bl li idit f $1 1 billi ith d bt
September 30
Available liquidity of $1.1 billion with no debt
Available Liquidity 1 $1.1 billion
September 302011
Long Term Debt
Shares Outstanding
0
171.9 million
1 Includes cash, $300 million credit facility2 As at market close on January 5, 2012
Annualized Dividend Yield 2 1.9%
y ,
10
Additional debt financing can maximize financial flexibility
Americas Based Mining Companyg p y
1 2
5777 (MANITOBA)1 4
Lalor (MANITOBA) 2
Constancia (PERU)3
Reed (Manitoba)4
B k F t (MICHIGAN)53
Exploration Properties
Producing/Development Properties
Back Forty (MICHIGAN)5
Producing/Development Properties
11
Flin Flon Greenstone Belt P lifi d d l dProlific and underexplored camp
Snow L kSnow L k
Trout Lake MineTrout Lake MineSnow Lake Ore Concentrator
Lalor
Flin FlonFlin FlonLakeLake
777 Mine777 MineProject
AmiskLakeAmiskLake
ReedLakeReedLake
Hwy #39Hwy #39
Flin Flon Ore ConcentratorZi l t
Chisel North MineChisel North Mine
LakeLake Zinc plant Reed Copper Project
NN
25 km25 km
Hwy #10Hwy #10
777 Mine $6 million committed to 777 North$6 million committed to 777 North expansion in 2012
• 777 North expansion allows for:
P d ti th 777 OVERVIEW• Production growth from expansion
• Underground exploration access
OwnershipLife of Mine
Mi i C / 2
100%9 years
Annual Sustaining CAPEX1 $22 millionAnnual Ore Production (tonnes)2
$ $1.55 million
exploration access• Enhanced access to
existing mine
Mining Costs/tonne ore2
2012 Production Forecast3
Cu tonnesZn tonnes
Milling Costs/tonne ore2$38-$42
33,21956,762
$12-$15
1 12 months ended December 31, 2010.2 2012 forecast
Precious Metals oz
Proven ProbableTonnes (M)Au (g/t)
4.52 27
8.31 79
2012 Prod.Forecast
1.551 9
Reserves and Resources4
83,407
13
2 2012 forecast.3 Contained metal in concentrate, 2012 forecast.4 Estimated Mineral Reserves and Resources – January 1, 2011
Au (g/t)Ag (g/t)Cu (%)Zn (%)
2.2729.38
2.874.44
1.7927.31
1.784.24
1.928.0
2.34.3
777 Mine Underground exploration potential continues to beUnderground exploration potential continues to be tested
Downcast777 SHAFTDowncast
METALLURGICAL COMPLEX
Raise
Shaf
t77
7
530m level
840m level
Mined areas
0m 100m 200m 300m
1412m level
14
Resources to be mined
Exploration Target Areas
Lalor D l t d t ti t kDevelopment and construction on track
SHAFT
100%20 years
$704 million
OwnershipProjected Life of MineConstruction CAPEX (2010-2014)
RAMP Development
DevelopmentShaft construction Full
production via shaft
Indic 3 Inferred3 Inferred3Base Metal Zone Gold Zone
$$22 million
$36.00$16.00
( )Annual Sustaining CAPEXEstimated Mining Cost/tonneEstimated Milling Cost/tonne
Prob 2
Development
Construction of ramp Initial production
Q3 Q4Q2Q3 Q1Q4 Q3 Q4Q2Q1 Q3 Q4Q2Q1 Q3 Q4Q2Q1 Q3 Q4Q2Q1 Q3Q2Q1
• 3,200 metre access ramp complete
Indic.3 Inferred3
Tonnes (M)Au (g/t)Ag (g/t)Cu (%)
2.61.0
27.10.29
4.81.3
26.20.58
Inferred3
5.44.7
30.60.47
Prob.2
10.51.6
21.00.64
2010 2011 20122009 2013 2014 2015
• Production shaft expected to begin sinking in early 2012
• Ventilation shaft scheduled for completion in mid-2012
Zn (%) 5.72 9.25 0.46
Tonnes (M)A ( /t)
5.1 – 6.15 8 7 01.8 – 2.2
8.31
Au Zone Cu-Au ZoneConceptual Estimate1,3
d 0
15
Au (g/t)Ag (g/t)Cu (%)Zn (%)
4.3 – 5.123 – 270.2 – 0.40.2 – 0.4
5.8 – 7.0
18 – 223.2 – 4.00.2 – 0.3
(1) The potential quantity and grade are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource
(2) As at January 1, 2011(3) As at May 1, 2010
Lalor C t ti i i d d d dConstruction moving indoors and underground
16
Lalor C t ti t k ith fi t t d id 2012Construction on track with first ore expected mid-2012
500m Looking N70oW0m 250m
Vent Raise Production Shaft
750m H1/2012 2013 - 2014
Exploration Platform
2015H2/2012
1000m
1250m
Base Metal ResourceGold Inferred Resource
171500m
Gold Potential MineralCopper - Gold Potential Mineral
Benefits of Project Optimization1j p
Optimized Lalor Lalor – Aug. 4, 2010Optimized Lalor Lalor Aug. 4, 2010Construction CAPEX C$ 704M C$ 560MAnnual Sustaining CAPEX C$ 22M C $15M
Production Rate 4,500 tpd 3,500 tpdMining Costs $36 per tonne $56 per tonneMilling Costs $16 per tonne $24 per tonneg p p
Metallurgy
95% Zn86% Cu66% Au
95% Zn90% Cu80% Au
60% Ag 75% Ag
1 All figures are estimates
18
Decision to construct a gold plant will be made beforehigher grade gold mineralization is mined
Reed Copper Project Proceeding to full construction with initial productionProceeding to full construction with initial production expected by late 2013
• Approximate daily ore production of 1,300 tonnes per day at Reed is expected by late 20131
Reed Copper Projectis expected by late 2013
• Assumed metal recoveries in Projected Life of Mine 5 yearsOwnership2 70%
$71 millionConstruction CAPEX (2012-2013)
Indicated Inferred2011 Resources
Flin Flon Concentrator are:• 94% copper• 58% gold
Estimated Mining Costs/tonne oreEstimated Milling Costs/tonne ore
Annual Sustaining CAPEX $11 million$67$16
$71 millionConstruction CAPEX (2012 2013)
1 Subject to receipt of required permits
Indicated InferredTonnes (M)Cu (%)Zn (%)Ag (g/t)
2.554.520.917.86
0.174.260.524.55
• 58% gold• 62% silver
19
2 HudBay has a 70% interest in the Reed copper project pursuant to a joint venture with VMS Ventures.
g (g )Au (g/t) 0.64 0.38
Average production in concentrate expected to be ~17,000 tonnes of contained copper metal per year
Constancia C t ti d i i t d i Q1 2012Construction decision expected in Q1 2012
LocationOwnership
Peru100%
CONSTANCIA OVERVIEW 1
Life of Mine 15 yearsCAPEX f Q1 2012 d th
By-Products
RESERVES
Avg. Annual Cu Prod.
Mo, Ag, Au
85,000 tConcentrator Capacity 70,000 tpd
• CAPEX for Q1 2012 and other capitalized costs in Peru are expected to total $107 million, in addition to the approximately
Proven ProbableTonnes (M)Cu (%)Mo (g/t)
195.00.42117
177.00.37
92
RESERVESaddition to the approximately $45 million expected to have been incurred by the end of 2011
20(1) Based on NI 43-101 technical report titled, “Constancia Project Technical Report”,
dated February 21, 2011 available under Norsemont’s profile at www.sedar.com.
Ag (g/t)Au (g/t)
3.490.04
3.660.05
Constancia E i i ti i ti d l ti di llEngineering, optimization and exploration proceeding well
21
Constancia Exploration Program D illi fi ti it f i li ti
• Hole PO-11-086 intersected
Drilling confirms continuity of copper mineralization
1.83% copper and 0.96 g/t gold over 49 metres
• Pampacancha resource Constancia Main
NorthPampacancha Skarn Target Cu-Au Sulphides
estimate expected early-2012• Obtained permits required to
continue testing mineralized t t f P h
PO-11-072121 45
North
Chilloroya Skarn TargetHigh Grade Gold Target
extent of Pampacancha• Two drills will continue to
explore Pampacancha to the north and west
121.45m1.62% Cu13.62 g/t Ag1.02 g/t Au
SO-10-010
SR-10-0133.0m242.6 g/t Au19.1 g/t Ag
PO-11-08649m
Chilloroya Porphyry TargetCu-Au Sulphides
north and west• Completed Titan 24 IP/DC/MT
survey over the Constancia property - targets identified for
3.0m7.10 g/t Au0.6 g/t Ag
0 1 km
1.83% Cu0.95 g/t Au
property targets identified for future drilling
22
Back Forty ProjectExploration drilling continuing on nearExploration drilling continuing on near deposit geophysical anomalies
• Permit application and economic assessment are ongoingare ongoing
• Engineering efforts focused on optimal size and scope of project
Oct. 15, 2010 Resource Table:Combined Open Pit & Underground
Ownership 51% (65%1)and scope of project M&I Inferred
Tonnes (M)Au (g/t)
17.91 57
3.41 29
Ownership 51% (65% )
Au (g/t)Ag (g/t)Cu (%)Zn (%)
1.5719.60
0.192.44
1.2924.33
0.441.96
1 65% on completing a feasibility study & submitting a mine permit application; option to Aquila for 75% on free carry to development
23
Targeting second quarter of 2012 for permit application
Yukon: Tom & JasonP li i i t i l 2012Preliminary economic assessment in early 2012
• 2011 Exploration program complete• Awaiting assay and metallurgical
li lt
OwnershipLife of Mine
100%7-18 years
Production Rate TPD 2000 5000
Tom & Jason Overviewsampling results
• Deposits are relatively shallow from surface to 600m depth
Indicated Inferred2007 Resources1
Production Rate TPD 2000-5000Environmental Permitting 5-8 years• Can be accessed via ramp
Tonnes (M)Ag (g/t)Zn (%)Pb (%)
6.456.66.35.1
24.533.96.73.5
1 Estimated Mineral Resources – May 24, 2007 by Scott Wilson RPA - Metal Price used Ag $7/oz, Zn $0.57/lbs, and Pb $0.35/lbs2 Metal price assumption: Ag $15/oz, Zn $0.95/lbs, and Pb $0.70/lbs
24
Exploration Program Highlights
$54 Million Investment in 2012 Exploration
p g g g
1 $54 Million Investment in 2012 Exploration1
2 Includes $13 million in South America 2
3 $31 Million to be spent in Manitoba• Exploring near active and historical mining areas and grassroots projects
4 $10 Million budgeted for North America• Includes spending on the Back Forty project and Tom and Jason deposits
Exploration Budget will Enable Over 130,000 Metres of Drilling 25
Growth of Mineral DepositsDi i i th G t B ltDiscoveries in the Greenstone Belt
T t L kFlin Flon 62.5⁄⁄
O bChisel
CallinanChisel U/GStall Lake
Lalor777
Trout Lake
Chi l PitWestarm
CentennialSchist Lake
SpruceKonuto
AndersonOsborne
Initial resource
CGhost & Lost
PhotoRod
DickstoneWhite LakeCoronation
Chisel Pit
The mineral resource estimate for Lalor is made up of 13.3 million tonnes of indicated resources and 10.2 million tonnes of inferred mineral resources, not including 6.9 – 8.3 million tonnes of conceptual estimates.
Added resource
0 5 10 15 20 25 30Tonnes (millions)
MandyNorth StarBirch Lake
FlexarCuprus o co ceptua est ates
26
( )
1 Expressed in 2011 dollars
Average 1990 – 2010 discovery cost of 6.4 cents/lb Cu equivalent1
Clearly Defined Acquisition Strategy H l t t i bl d l i b i lHelps create sustainable underlying business value
Focus on Americas, mining favourable jurisdictions
VMS or porphyry deposits with exploration upsidep p y y p p p
Transaction size of no more than 20% of market capitalization
Add l th h t h i l ti d fi i l itAdd value through technical expertise and financial capacity
Accretive to in-situ metal value and net asset value per share
In 2012 HudBay will continue executing against
27
In 2012, HudBay will continue executing against growth strategy
Substantial Near Term News Flow1
CONSTANCIA LALOR LALORP h NICONSTANCIA
Initial production at a rate of 1,200 tonnes per day by mid-2012
Construction decision expected in Q1 2012
Underground exploration drill platform established
Pampacancha NI 43-101 Resource Estimate in Q1 2012
2012
BACK FORTYTOM & JASON LALORPreliminary economic assessment in early 2012
28
Permit application submission by end of Q2 2012
1 All timelines reflect HudBay’s current expectations.
Underground diamond drilling to commence Q1 2012
Mission Statement
To create sustainable value through increasedTo create sustainable value through increased commodity exposure on a per share basis, in high quality and growing long life deposits in mining
29
friendly jurisdictions
APPENDIXAPPENDIX30
Appendix Contents
• Cost Curves
• 2012 Operating Guidance, Capital Expenditures and Exploration Spending Breakdown
• Lalor Guidance, Mineralization and Plan Views
• Constancia Project
• Back Forty Deposit
• Tom & Jason Deposit
• South America Property
• Early Stage InvestmentsEarly Stage Investments
• Reserves & Resources31
Gold Cost Curve
777 Mine 1
Lalor 1
32
1 Co-product cash costs calculated using Brook Hunt’s co-product costing methodology which is materially different from the co-product costs reported by HudBay in its public disclosure.
Source: Brook Hunt (2011 cost curve) and HudBay estimates (777 Mine and Lalor)
Copper Cost Curve
777 Mine 1
Lalor 2
Constancia (LOM) 3
Reed 4
Source: Brook Hunt (777 Mine and 2011 cost curve) and HudBay estimates (Lalor, Reed)
33
1 Brook Hunt co-product cash costs.2 Co-product cash costs calculated using Brook Hunt’s co-product costing methodology which is materially
different from the co-product costs reported by HudBay in its public disclosure.3 Based on NI 43-101 technical report titled, “Constancia Project Technical Report”, dated February 21, 2011.4 Based on Reed AFE.
( ) y ( )
Zinc Cost Curve
777 Mine 1
Lalor 2
Source: Brook Hunt (777 Mine and 2011 cost curve) and HudBay estimates (Lalor)
34
1 Brook Hunt co-product cash costs.2 Co-product cash costs calculated using Brook Hunt’s co-product costing methodology which is
materially different from the co-product costs reported by HudBay in its public disclosure.
Source: Brook Hunt (777 Mine and 2011 cost curve) and HudBay estimates (Lalor)
2012 Operating Guidance
Copper tonnes 35,000 – 40,000Zinc tonnes 70,000 – 85,000
Contained Metal in Domestic Concentrate
777 Trout Lake Chisel Northtonnes 1,553,000 230,000 165,000
C % 2 3 1 8 0 72
Ore MinedGrades
Precious Metals 2 ounces 95,000 – 120,000Lalor1
86,000
0 4Copper % 2.3 1.8 0.72
Zinc % 4.3 2.3 5.0Gold g/tonne 1.9 1.5 -Silver g/tonne 28.0 7.1 -
0.410.1
1.116.9
C$/tonne $38 - 42 $60-74 $93-114 Unit Operating Costs 3
tonnesOre MilledFlin Flon Snow Lake
1,840,000 190,000
Zinc %Copper %Gold %
C$/tonne
Recoveries
Unit Operating Costs
93 808570
$12 - 15 $32 - 37
9565
1 Revenues and costs from Lalor operations prior to commencement of commercial production will be capitalized2 The 165,000 tonnes of forecast production from the Chisel North mine is anticipated to consist of 108,000 tonnes of zinc ore at 7.1% zinc to be processed at HudBay's Snow Lakeconcentrator, and 57,000 tonnes of copper/gold ore to be processed at the Flin Flon concentrator. The expected grade for the copper/gold ore is 2.1 g/t Au, 20.6 g/t Ag, 1.6% Cu and0.9% Zn.3 Forecast unit operating costs are calculated on the same basis as reported unit operating costs in HudBay’s quarterly and annual management’s discussion and analysis. For areconciliation of the costs that are included in unit operating costs to total operating costs in accordance with IFRS, refer to the Non-IFRS detailed cost of sales table in HudBay’sMD&A for the nine months ended September 30, 2011.
35
C$/tonneUnit Operating Costs $12 15 $32 37
2012 Operating Guidance – Zinc PlantPlant
2012Flin Flon Zinc Plant
2012 Guidance
Zinc concentrate treatedDomestic tonnes 164 000Domestic tonnes 164,000Purchased tonnes 56,000
Total tonnes 220,000
% 97Recovery % 97
tonnes 113,000
C$/lb $0.32 - 0.37
Recovery
Zinc Produced
Unit Operating Costs1
36
1Forecast unit operating costs are calculated on the same basis as reported unit operating costs in HudBay’s quarterly and annual management’s discussion and analysis. For a reconciliation of the costs that are included in unit operating costs to total operating costs in accordance with IFRS, refer to the Non-IFRS detailed cost of sales table in HudBay’s MD&A for the nine months ended September 30, 2011.
2012 Capital Expenditures
• Committed to $296 million in capital expenditures to grow• Committed to $296 million in capital expenditures to grow production profile
• Investment in exploration of approximately $54 million$
2011 2012 (figures in C$ millions) Guidance Guidance
Lalor 140 147
Growth
C t i 107Back Forty 2
Reed 34777 N th 6
Constancia 10745--
8777 North 6
29695
Total Growth CapitalSustaining
8
193101
37
$294 $391Total Capital Expenditures
2012 Exploration Expenditures
Total(C$ millions)
South America
Manitoba 31
13
Other North America 10
54Manitoba Capitalized Spending (5)
$49Total Exploration Expenses
Total Exploration Expenditures
$p p
38
Lalor Project Guidancej
• CAPEX for new concentrator (including paste backfill plant) ( g p p )estimated at $263 million
• $120 million estimate in August 2010 for Snow Lake concentrator refurbishment
• Incremental investment of $144 million brings total Lalor CAPEX to g$704 million
• Non-concentrator capital costs remain on budget; $166 million incurred to September 30, 2011p ,
2011 – Q4 $40 million
2012 $153 million2012 $153 million
2013 $200 million
2014 $145 million
39
2014 $145 million
Total $538 million
Lalor Mineralization
Tonnes(millions)
Au(g/t)
Ag (g/t)
Cu (%)
Zn(%)(millions) (g/t) (g/t) (%) (%)
Reserves
Proven - - - - -
Probable 10.5 1.55 21.0 0.64 8.31
Base Metal Zone Mineral Resource
Indicated 2.6 1.0 27.1 0.29 5.72
Inferred 4.8 1.3 26.2 0.58 9.25
Gold Zone Inferred Mineral Resource
Inferred 5.4 4.7 30.6 0.47 0.46
Potential Gold Zone Conceptual Estimate 5.1 – 6.1 4.3 – 5.1 23 – 27 0.2 – 0.4 0.2 – 0.4
Potential Copper-Gold Zone Conceptual Estimate 1.8 – 2.2 5.8 – 7.0 18 – 22 3.2 – 4.0 0.2 – 0.3
The Lalor gold zone and copper-gold zone potential mineral deposit estimates are conceptual in nature and to date there has been insufficient exploration to define a mineral resource compliant with National Instrument 43-101. It is uncertain if further exploration will result in the target deposit being delineated as a mineral resource. Additional detail may be found in HudBay’s press release dated August 4, 2010, available at www.sedar.com.40
Lalor ProjectProject Down plunge explorationexploration potential
41
Constancia - Strategic Locationg
Selected Cu Projects in Peru Established Mining DistrictCusco
Rio Blanco
Xstrata – Las Bambas
Cusco
Toromocho
Galeno
Antamina
Cerro Corona First Quantum – Haquira
Pan Pacific QuechuaCUSCO DEPT.
Toromocho
Marcona
Lima
Haquira ConstanciaLas Bambas
A t
Pan Pacific – Quechua
Xstrata – Antapaccay
AREQUIPA DEPT.
TintayaAntapaccay
Operating Mine
Development Project
CuajoneToquepala
Cerro VerdeSouthern Peru Copper Belt
Rail Road to Matarani
Main Powerlines
Xstrata - Las Bambas Proposed Mineral Pipeline
Roads
Close to roads, major power lines, a rail line and port 42
Constancia NI 43-101 Mineral ReservesReserves
Grade ContainedMt Cu (%) Mo (g/t) Ag (g/t) Au (g/t) Cu (mlb) Mo (mlb) Ag (koz) Au (koz)
ReservesReserves
Proven 195 0.42 117 3.49 0.04 1,806 50 21,880 251
Probable 177 0.37 92 3.66 0.05 1,444 36 20,828 285
Total 372 0.39 105 3.57 0.05 3,250 86 42,708 536, ,
Source: NI 43-101 technical report titled, “Constancia Project Technical Report”, dated February 21, 2011
43
Updated Peru Tax andRoyalty SchemeRoyalty Scheme• What has changed?
• Old royalty: 1% – 3% sliding scale royalty on sales (NSR) is being eliminated• New royalty: 1% – 12% marginal rate sliding scale applied on operating profit (EBIT)
• Equivalent to: 0% – 7.1% effective rate, depending on operating profit margin; minimum royalty = 1% of sales
• New mining tax: 2% – 8.4% marginal rate sliding scale applied to operating profit (EBIT)• Equivalent to: 0% – 5.4% effective rate, depending on operating profit margin (i.e. EBIT margin)
• What stays the same?• 0.5% NSR Minera Livitaca and Katanga (capped at US$10 million)• Labour participation = 8% of pre-tax profitsp p p p• 30% corporate income tax rate without a tax stability agreement
• Deductible expenses for corporate income tax:• New royalty AND new mining tax• Labour participation = 8% of pre tax profits• Labour participation = 8% of pre-tax profits• Tax depreciation
• Withholding/Dividend Tax:• 4.1% applies to profits distributed to nonresidents
• Legal Stability Agreements• Guaranteed stability of income tax regime for 15 years
44
The Back Forty Project –Mineral Resources October 15 2010*Mineral Resources October 15, 2010
Classification Tonnes (millions) Au (g/t) Ag (g/t) Cu (%) Zn (%)
Open Pit †p †
Measured 14.1 1.59 16.97 0.15 2.54
Indicated 2.1 1.53 32.80 0.41 1.17
Measured and Indicated
16.2 1.58 19.00 0.18 2.36
Inferred 1.4 1.40 32.89 0.62 1.00
Underground ‡
Measured 0.8 1.67 25.83 0.24 3.45
Indicated 0.9 1.28 24.72 0.34 2.85
Measured and Indicated
1.7 1.46 25.23 0.29 3.13
Inferred 2.0 1.22 18.34 0.32 2.64
Combined Open Pit
*Mineral resources are not mineral reserves and do not have demonstrated economic viability All figures have been rounded to reflect the relative accuracy of the estimates The cut off
and Underground
Measured and Indicated
17.9 1.57 19.60 0.19 2.44
Inferred 3.4 1.29 24.33 0.44 1.96
Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. The cut-off grades are based on metal price assumptions of US$0.95 per pound zinc, US$2.50 per pound copper, US$0.70 per pound lead, US$900 per troy ounce gold and US$15.00 per troy ounce silver. Metallurgical recoveries were determined and used for each of the metallurgical domains determined for the deposit.†
Cut off grades were determined for each of the metallurgical domains based on NSR values. Average cut-off grade for the open pit resource contained within an optimized pit shell was US$20. See “Mineral Resource Estimate Disclosure.”‡
Cut off grades were determined for each of the metallurgical domains based on NSR values. Average cut-off grade for the underground resources outside of the optimized pit shell was US$62. See “Mineral Resource Estimate Disclosure.”
45
Tom and Jason 5 000 t d ill t d5,000 metre drill program to upgrade resource
• 100% owned located in the Selwyn Basin• 100% owned, located in the Selwyn Basin• Deposits are relatively shallow from surface
to 600m depth• Can be accessed via ramp
MacTung
YUKONTERRITORY Tom & Jason
PropertiesTom & Jason Properties
Wolverine
SelwynFaro
Ross River
NORTHWESTTERRITORIES
46
Whitehorse
South America – Property Acquisition
an
Acquisition
Focus on Chile Peru
Paci
fic O
cea
COPIAPO
CHANARAL EL SALVADOR
EL SALVADOR Cu
MANTOS VERDES Cu
• Focus on Chile, Peru and Colombia
• Compilation of geological data at San
VALLENAR
SAN ANTONIODOS AMIGOS Cu
CANDELARIA Cu
HUASCO
g gAntonio
• Option Agreement signed for greenfield Cu-Au prospect Loma
Antofagasta
CHILE
Argentina
LA SERENACOQUIMBO
SAN ANTONIOAu prospect Loma Negra
• Regional Exploration office opened in
Copiapo
SANTIAGO
SAN ANTONIO La Serena
Santiago• Evaluation of early stage
exploration opportunities underway
LOMA NEGRA
underway
47
Investing in Early Stage Opportunities Enables us to participate in development of new mining camps
Project Location Strategic Consideration Equity
Joint Ventures
Aquila Resources Back Forty Michigan Advanced stage, gold-zinc VMS, l i id
Yesexploration upside
VMS Ventures Reed Lake Manitoba VMS, near-term copper production, exploration upside
Yes
Equity Placement
Augusta Resources Rosemont Arizona Advanced stage copper porphyry Yes
Copper Reef Mining WAX Claims Manitoba VMS, proximity to existing infrastructure
Yes
CuOro Resources Santa Elena Colombia Porphyry and massive sulphide l lli d i
Yespolymetallic deposits
MacDonald Mines Ring of Fire Northern Ontario VMS and magmatic sulphide deposits, new camp, exploration
upside
Yes
Panoro Minerals Cotabambas & Antilla Peru Copper porphyry exploration YesPanoro Minerals Cotabambas & Antilla Peru Copper porphyry, exploration upside, proximity to Constancia
Yes
Polar Star Montezuma Atacama, Chile Copper porphyry, extensive land package, exploration upside
Yes
Waymar Resources Anzá Colombia VMS mineralization Yes
48
y
Optionor
Halo Resources Cold, Lost Manitoba VMS, potential near-term zinc production, exploration upside
Yes
Estimated Mineral Reserves1January 1, 2011
Mine Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%)
777
Proven 4,516,000 2.27 29.38 2.87% 4.44%
Probable 8,307,000 1.79 27.31 1.78% 4.24%
Ja ua y , 0
Total 12,823,000 1.96 28.04 2.16% 4.31%
777 NORTH
Proven 81,000 1.61 26.52 0.68% 4.89%
Probable 449,000 1.44 21.48 1.09% 3.31%
Total 530,000 1.47 22.25 1.03% 3.55%
TROUT LAKE
Proven 409,000 2.06 9.66 2.10% 3.53%
Probable 36,000 1.17 1.01 2.18% 1.43%
Total 445,000 1.99 8.96 2.11% 3.36%
CHISEL NORTH ZINCCHISEL NORTH -ZINC
Proven 164,000 - - - 8.77%
Probable 56,000 - - - 10.60%
Total 220,000 - - - 9.24%
CHISEL NORTH -COPPER
Proven - - - - -
Probable 92,000 2.41 31.56 1.72% 3.67%
Total 92,000 2.41 31.56 1.72% 3.67%
LALOR
Proven - - - - -Proven
Probable 10,525,000 1.55 21.00 0.64% 8.31%
Total 10,525,000 1.55 21.00 0.64% 8.31%
1Estimated mineral reserves exclude the Fenix project. Please refer to HudBay’s Annual Information Form and Management’s Discussion and Analysis for the year ended December 31, 2010 and applicable technical reports in respect of the properties filed on SEDAR for further information.49
Other Mineral Resources
Grade Containedt Cu (%) Zn (%) Ag (g/t) Au (g/t) Cu (mlb) Zn (mlb) Ag (koz) Au (koz)
REED
Measured - - - - - - - - -
Indicated 2,550,000 4.52 0.91 7.86 0.64 254.1 51.2 644.4 52.5
M + I 2,550,000 4.52 0.91 7.86 0.64 254.1 51.2 644.4 52.5
Inferred 170,000 4.26 0.52 4.55 0.38 16.0 1.9 24.9 2.1
LOST PROJECTLOST PROJECT
Measured - - - - - - - - -
Indicated 411,000 1.8 6.1 20.0 1.0 16.3 55.3 264.3 13.2
M + I 411,000 1.8 6.1 20.0 1.0 16.3 55.3 264.3 13.2M I 411,000 1.8 6.1 20.0 1.0 16.3 55.3 264.3 13.2
Inferred 69,000 1.5 6.2 16.5 0.8 2.3 9.4 36.6 1.8
Source: HudBay Minerals Inc. news release entitled, “HudBay Minerals Announces Near Quadrupling of Metals Reserves; US$116 Million y , y p g ;2011Pre-Construction Program for Constancia,” March 31, 2011
50
Reserves and Resources
• To estimate mineral reserves, measured and indicated mineral resources were first estimated by a 12-step, y pprocess, which includes determination of the integrity and validation of the data collected, including confirmationof specific gravity, assay results and methods of data recording. The process also includes determining theappropriate geological model, selection of data and the application of statistical models including probability plotsand restrictive kriging to establish continuity and model validation. The resultant estimates of measured andindicated mineral resources are then converted to proven and probable mineral reserves by the application of
i i dil ti d ll th d t i ti f i i bilit f ll t d b i imining dilution and recovery, as well as the determination of economic viability on a fully costed basis usinghistorical operating costs. Other factors such as depletion from production are applied as appropriate. Long termmetal prices, excluding premiums, used to determine economic viability of the 2010 mineral reserves were US$900 oz. gold, US $15.00 oz. silver, US $2.50 lb. copper and US $0.95 lb. zinc.
• The 2011 estimated mineral reserves were prepared under the supervision of Robert Carter, P.Eng., who isp p p , g ,employed by HudBay Minerals Inc. as Manager, Project Evaluation and who is a Qualified Person as defined byNI 43-101.
51
Reserves and Resources
• Robert Carter, P.Eng., Manager, Project Evaluation of HudBay Minerals Inc. is the Qualified Personaccountable for the supervision of the technical information contained within this presentation as defined byNI 43 101NI 43-101
• Greg Greenough, P.Geo., a Senior Resource Geologist with Golder Associates carried out, and isresponsible for the Back Forty resource estimate described in this presentation. Robert Carter P.Eng,Manager, Project Evaluation of HudBay Minerals Inc. is the Qualified Person for HudBay as described in NI43-101 and is responsible for the Back Forty contents of this presentation.p y p
• Please refer to HudBay’s Annual Information Form and Management’s Discussion and Analysis for the yearended December 31, 2010 and applicable technical reports in respect of the properties filed on SEDAR forfurther information.
52
HBMHBM
For more information contact:
John Vincic, VP of Investor Relations and Corporate CommunicationsTel: 416.362.0615Email: [email protected]
hudbayminerals.com2012 V3