Investor Presentaiton
Constancia Mine
OPERATING AT FULL PRODUCTION
• Low-cost, long-life copper mine began
production at end of 2014
• Annual Cu production of 110k tonnes at cash
costs of $0.97/lb and sustaining cash costs of
$1.27/lb over next 5 years (2017-2021)
Mining of high-grade Pampacancha satellite
deposit expected to begin in 2018 with total
project capital of $54 million⁹
Sustaining capex declines after 2017 as
spending on tailings dam decreases
significantly
Source: Hudbay company disclosure
1. Full year ended December 31, 2016.
2. LOM = Life of Mine. As per NI 43-101 Technical Report on the Constancia Mine dated November 21, 2016.
LOM average calculated from 2017-2035.
3. Production is contained metal in concentrate.
4. Combined mine, mill and G&A unit operating costs per tonne of ore processed (after impact of capitalized
stripping).
5. Net of by-products. Includes impact of silver and gold streams. Metal prices per the Silver Wheaton stream
agreement are as follows: $400/oz Au, $5.90/oz Ag. Other metal price assumptions in LOM estimate are
based on reserve prices ($3.00/lb Cu, $11.00/lb Mo, $1,260/oz Au).
6. Sustaining capital includes capitalized stripping costs, but excludes Pampacancha project capital. 2017 Peru
sustaining capital expenditure guidance is $120 million, including capitalized stripping costs of -$15 million.
7. Sustaining cash cost per pound copper produced, includes sustaining capital costs and royalties.
8. Mine life as of January 1, 2017.
9. Excludes the costs associated with acquiring surface rights at Pampacancha.
HUDBAY
20161
AVG. LOM²
Ownership
100%
Daily ore throughput
Annual Cu production³
74k tpd
85k tpd
133kt
81kt
Unit operating cost4
$8.09/t
$7.39/t
Cash cost per lb Cu5
$1.09/lb
$1.28/lb
Annual sustaining capital
$118m
$57m
Sustaining cash cost?
$1.51/lb
$1.62/lb
Mine life8
19 years
FLOTATION CELLS
8View entire presentation