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21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
21st Annual BMO Capital Markets Global Metals & Mining Conference
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21st Annual BMO Capital Markets Global Metals & Mining Conference

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  • 1. HBM21st Annual BMO Capital MarketsGlobal Metals & Mining ConferenceFebruary 26 - 29, 2012 Creating Sustainable Value through High Quality Long Life Deposits
  • 2. Forward Looking Information 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. 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 faci lities 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 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 managements 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
  • 3. Lalor Project Disclaimer Hudbays 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 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 the purposes of National Instrument 43-101. Note to U.S. Investors Information 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 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 filed on March 31, 2011 (File No. 001- 34244).3
  • 4. Investment Highlights Transformation to mid-tier leader underway with development of long-life, low cost mines Growth in Copper, Gold and Zinc Production 1 with Exploration Upside Consistent Performance from 2 Reliable Operations 3 Executing Disciplined and Clear Growth Strategy 4 Strong Financial Position 5 Experienced Management and Operating Team4
  • 5. Focused on the Americas 1 2 1 777 (MANITOBA) 3 2 Lalor (MANITOBA) 3Reed (MANITOBA) 4 Constancia (PERU) 4 Exploration Properties Producing/Development Properties5
  • 6. Steady Production with Low Cash Costs Consistent track record of meeting production targets Nine Months Ended Sept 30 GUIDANCE(1) GUIDANCE(1) 2011 2011 2012 Copper 1 tonnes 40,490 40-55,000 35-40,000 Zinc 1 tonnes 54,246 70-90,000 70-85,000 Precious Metals (1,2) troy oz. 82,456 95-120,000 85-105,000 Co-Product Cash Costs (3) Gold US$/oz $346 Copper US$/lb $1.40 Zinc US$/lb $0.98 (1) Metal reported in concentrate prior to refining losses 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 Managements Discussion and Analysis for the quarter6 ending September 30, 2011.
  • 7. Leading Production Growth Further copper growth expected from optimized Constancia mine plan 255% GROWTH 135% GROWTH 65% GROWTH Cu Production Precious Metals Production(1) Zn Production (kt) (koz) (kt) HudBay - Current Ops (2) Lalor (3) Constancia (4) Reed (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 production7 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.
  • 8. Delivering Leverage Through Reserve Growth Pending 2012 resource update expected to show more growth (000 tonnes Cu equivalent) (Cu equivalent lbs per share) 1550 19.8 713 9.1 18.4 1286 3071 39.2 1121 16.1 791 11.3 (1,3) (2,3) Proven & Probable Measured & Indicated Inferred (1) HudBay reserves and resources as of January 1, 2010, excluding Fenix. Measured and Indicated Resources do not include any Proven and Probable Reserves. (2) HudBay reserves and resources as of March 31, 2011 excluding Fenix. Measured and Indicated Resources do not include any Proven and Probable Reserves. (3) In-situ value calculated using commodity prices of US$900/oz Au,8 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
  • 9. Flin Flon Greenstone Belt Infrastructure and exploration still delivering opportunities Snow Lake Ore Concentrator Lalor Snow Project Lake 777 Mine Flin Flon Flin Flon Ore Concentrator Reed Zinc plant Lake Hwy Amisk #39 Lake Reed Copper Project N Hwy #10 25 km9
  • 10. 777 Mine Low cost producer with track record of reserve replacement Ownership 100% Life of Mine 9 years Annual Sustaining $22 million CAPEX1 Annual Ore 1.55 million Production (tonnes)2 Mining $38-$42 Costs/tonne ore2 Milling $12-$15 Costs/tonne ore2 2012 Production Forecast3 Cu tonnes 33,200 Zn tonnes 56,800 Precious Metals oz 83,400 (1) 12 months ended December 31, 2010. (2) 2012 forecast.10 (3) Contained metal in concentrate, 2012 forecast.
  • 11. 777 Mine Underground exploration potential continues to be tested 530m level 840m level Metres 0 100 200 300 Mined areas 1412m level Resources to be mined Exploration Target Areas11
  • 12. Lalor Initial production expected by mid-2012 Ownership 100% Projected Life of Mine 20 years Construction CAPEX $704 million (2010-2014) Annual Sustaining $22 million CAPEX 2012 Ore 86,000 Production (tonnes)(1) Full Daily Ore Production Rate (tonnes)(2) 4,500 LOM Mining Costs/tonne ore $36 LOM Milling Costs/tonne ore $16 (1) 2012 Forecast. Revenues and costs from Lalor operations prior to commencement of commercial production will be capitalized. (2) Subject to receipt of required permits12
  • 13. Lalor Underground drilling has begun Surface 0m 500m Vent Raise Production Shaft 750m H1/2012 H2/2012 2013 - 2014 2015 Exploration Platform 1000m 1250m Base Metal Resource Gold Inferred Resource Gold Potential Mineral High Grade Intercepts Outside Looking N70oW 250m Known Resource 0m 1500m13
  • 14. Reed Copper Project Initial production expected by late 2013; Construction underway Ownership(1) 70% Projected Life of Mine 5 years Annual Sustaining CAPEX $11 million Construction CAPEX $71 million (2012-2013) Approximate daily ore 1,300 production (tonnes)(2) Mining Costs/tonne ore $67 Milling Costs/tonne ore $16 (1) Hudbay has a 70% interest in the Reed copper project pursuant to a joint venture with VMS Ventures. (2) Subject to receipt of required permits. All project costs reflect current estimates14
  • 15. Constancia Project - Strategic Location Creating new mining district within an established region ESTABLISHED MINING DISTRICT Cusco Xstrata - Las Bambas First Quantum - Haquira Trujillo CUSCO DEPT. Pan Pacific - Quechua Lima Cusco AREQUIPA DEPT. Constancia Xstrata - Antapaccay Tintaya Mine Arequipa Main Powerlines Southern Peru Copper Belt Xstrata - Las Bambas Proposed Mineral Pipeline Rail Road to Matarani Roads15
  • 16. Constancia(1) Project update expected in late Q1 2012 Ownership 100% Life of Mine 15 years Avg. Annual Cu Prod. 85,000 (tonnes) Concentrator Capacity 70,000 tpd By-Products Mo, Ag, Au (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.16
  • 17. Constancia Exploration Program Drilling confirms continuity of copper mineralization North 2012 Drill Targets • Initial Pampacancha resource expected by end of Q1 2012 Constancia Main • 22,000 hectare land position Pampacancha Skarn Target Cu-Au Sulphides • Initial drill targets for Chilloroya Skarn Target 2012 identified using High Grade Gold Target geophysics • Chilloroya South drilling Chilloroya Porphyry Target Cu-Au Sulphides to commence in Spring, 0 1 km results later in 201217
  • 18. Continued Aggressive Exploration Historic Discovery Cost of 6.4 cents per Cu Equivalent Pound(1) TOTAL INVESTMENT IN 2012 EXPLORATION $54 Million Manitoba $31 Million Exploring near active and historical mining areas and grassroots projects South America $13 million Targets in Chile, Colombia and Peru North America $10 Million Back Forty and Tom and Jason preliminary economic assessments expected in 2012 130,000 METRES OF DRILLING EXPECTED (1) Based on total 1990-2011 Manitoba/Saskatchewan surface exploration costs expressed in 2011$, divided by contained metal value of mined or to be mined deposits discovered since 1990 (777, Konuto, Photo Lake and Lalor) converted to copper equivalent using expected long-term prices.18
  • 19. Solid Financial Position Available liquidity of $1.1 billion with no debt Available Liquidity(1) $1.1 billion Long Term Debt 0 Shares Outstanding 171.9 million Annualized Dividend Yield(2) 1.7% ADDITIONAL DEBT FINANCING CAN MAXIMIZE FINANCIAL FLEXIBILITY (1) Includes cash of $900 million and undrawn credit lines of more than $200 million. (2) As at market close on February 15, 201219
  • 20. Expertise in 4 Stages of Mining Cycle EXPLORATION DEVELOPMENT Discovered Mines in Mines in Years Development PRODUCTION RECLAMATION is a Consistent Low Successfully Cost Producer Reclaimed Mines20
  • 21. Pipeline of Early Stage Opportunities Best “farm system” amongst mid-tier producers • Minority equity positions in 17 exploration and development opportunities • Current value approximately $100 million OPPORTUNITY LOCATION STRATEGIC CONSIDERATION Augusta Resources Arizona Advanced stage copper porphyry Copper Reef Mining Manitoba VMS, proximity to existing infrastructure CuOro Resources Colombia Porphyry and massive sulphide polymetallic deposits MacDonald Mines Northern Ontario VMS and magmatic sulphide deposits, new camp, exploration upside Panoro Minerals Peru Copper porphyry, exploration upside, proximity to Constancia Northern Shield Northern Ontario VMS, copper, zinc and silver mineralization Waymar Resources Colombia VMS mineralization21
  • 22. Stringent Criteria for Growth Disciplined focus on per share metrics GEOGRAPHY Focus on Americas, mining favourable jurisdictions GEOLOGY VMS or porphyry deposits with exploration upside FINANCIAL Transaction size of no more than 20% of market capitalization OPERATIONAL Add value through technical expertise and financial capacity ACCRETION Accretive to in-situ metal value and net asset value per share22
  • 23. Investment Highlights Transformation to mid-tier leader underway with development of long-life, low cost mines Growth in Copper, Gold and Zinc Production 1 with Exploration Upside Consistent Performance from 2 Reliable Operations 3 Executing Disciplined and Clear Growth Strategy 4 Strong Financial Position 5 Experienced Management and Operating Team23
  • 24. APPENDIX24
  • 25. 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 Investments • Reserves & Resources (General and per project)25
  • 26. Gold Cost Curve 777 Mine 1 Lalor 1 Source: Brook Hunt (2011 cost curve) and HudBay estimates (777 Mine and Lalor) (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.26
  • 27. Copper Cost Curve 777 Mine 1 Reed 4 Lalor 2 Constancia (LOM) 3 Source: Brook Hunt (777 Mine and 2011 cost curve) and HudBay estimates (Lalor, Reed) (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 on27NI 43-101 technical report titled, “Constancia Project Technical Report”, dated February 21, 2011. (4)Based on Reed AFE.
  • 28. Zinc Cost Curve 777 Mine 1 Lalor 2 Source: Brook Hunt (777 Mine and 2011 cost curve) and HudBay estimates (Lalor, Reed) (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.28
  • 29. 2012 Operating Guidance Contained Metal in Domestic Concentrate Copper tonnes 35,000 - 40,000 Zinc tonnes 70,000 - 85,000 Precious Metals 2 ounces 95,000 - 120,000 777 Trout Lake Chisel North Lalor1 Ore Mined tonnes 1,553,000 230,000 165,000 86,000 Grades Copper % 2.3 1.8 0.72 0.4 Zinc % 4.3 2.3 5.0 10.1 Gold g/tonne 1.9 1.5 - 1.1 Silver g/tonne 28.0 7.1 - 16.9 Unit Operating Costs 3 C$/tonne $38 - 42 $60-74 $93-114 Flin Flon Snow Lake Ore Milled tonnes 1,840,000 190,000 Recoveries Zinc % 93 80 Copper % 85 95 Gold % 70 65 Unit Operating Costs C$/tonne $12 - 15 $32 - 37 (1) Revenues and costs from Lalor operations prior to commencement of commercial production will be capitalized. (2) The 165,000 tonnes of forecast production from the Chisel North mine is anticipated to consist of 108,000 tonnes of zinc ore at 7.1% zinc to be processed at HudBays Snow Lake concentrator, and 57,000 tonnes of copper/gold ore to be processed at the Flin Flon concentrator. The expected grade for the copper/gold ore is 2.1 g/t Au, 20.6 g/t Ag, 1.6% Cu and 0.9% Zn.(3) Forecast unit operating costs are calculated on the same basis as reported unit operating costs in HudBay’s quarterly and annual management’s discussion and analysis. For a29reconciliation ofMD&A for the nine includedended Septembercosts2011. operating costs in accordance with IFRS, refer to the Non-IFRS detailed cost of sales table in HudBay’s the costs that are months in unit operating 30, to total
  • 30. 2012 Operating Guidance - Zinc Plant GUIDANCE Flin Flon Zinc Plant 2012 Zinc concentrate treated Domestic tonnes 164,000 Purchased tonnes 56,000 TOTAL tonnes 220,000 Recovery % 97 Zinc Produced tonnes 113,000 Unit Operating Costs 1 C$/lb $0.32 - 0.37 (1) 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 a reconciliation of the costs that are included in unit operating costs to total30 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.
  • 31. 2012 Capital Expenditures • Committed to $296 million in capital expenditures to grow production profile GUIDANCE GUIDANCE (figures in C$ millions) 2011 2012 Growth Lalor 140 147 Constancia 45 107(1) Back Forty - 2 Reed - 34 777 North 8 6 Total Growth Capital 193 296 Sustaining 101 95 TOTAL CAPITAL EXPENDITURES $294 $391 (1) Constancia CAPEX is for Q1 2012 only.31
  • 32. 2012 Exploration Expenditures (figures in C$ millions) TOTAL Manitoba 31 South America 13 Other North America 10 Total Exploration Expenditures 54 Manitoba Capitalized Spending (5) TOTAL EXPLORATION EXPENSES $4932
  • 33. Lalor Project Guidance • CAPEX for new concentrator (including paste backfill plant) estimated at $263 million 2011 - Q4 $40 million • $120 million estimate in August 2010 for Snow Lake concentrator 2012 $153 million refurbishment • Incremental investment of $144 2013 $200 million million brings total Lalor CAPEX 2014 $145 million to $704 million • Non-concentrator capital costs TOTAL $538 million remain on budget; $166 million incurred to September 30, 201133
  • 34. Lalor Mineralization Tonnes Au Ag Cu Zn (millions) (g/t) (g/t) (%) (%) Reserves Proven - - - - - Probable 10.5 1.55 21.0 0.64 8.31 Base Metal Zone Mineral Resource Indicated 2.6 1.0 27.1 0.29 5.72 Inferred 4.8 1.3 26.2 0.58 9.25 Gold Zone Inferred Mineral Resource Inferred 5.4 4.7 30.6 0.47 0.46 Potential Gold Zone Conceptual Estimate 5.1 - 6.1 4.3 - 5.1 23 - 27 0.2 - 0.4 0.2 - 0.4 Potential Copper-Gold Zone Conceptual Estimate 1.8 - 2.2 5.8 - 7.0 18 - 22 3.2 - 4.0 0.2 - 0.3 The Lalor gold zone and copper-gold zone potential mineral deposit estimates are conceptual in nature and to date there has been insufficient exploration to define a mineral resource compliant with National Instrument 43-101. It is uncertain if further exploration will result in the target deposit being delineated as a mineral resource. Additional detail may be found in HudBay’s press release dated34 August 4, 2010, available at www.sedar.com.
  • 35. Lalor Project Down plunge exploration potential35
  • 36. Benefits of Project Optimization 1 Optimized Lalor Lalor - Aug. 4, 2010 Construction CAPEX C$ 704M C$ 560M Annual Sustaining C$ 22M C $15M CAPEX Production Rate 4,500 tpd 3,500 tpd Mining Costs $36 per tonne $56 per tonne Milling Costs $16 per tonne $24 per tonne 95% Zn 95% Zn 86% Cu 90% Cu Metallurgy 66% Au 80% Au 60% Ag 75% Ag DECISION TO CONSTRUCT A GOLD PLANT WILL BE MADE BEFORE HIGHER GRADE GOLD MINERALIZATION IS MINED (1) All cost projections reflect current estimates36
  • 37. Constancia NI 43-101 Mineral Reserves GRADE CONTAINED Mt Cu (%) Mo (g/t) Ag (g/t) Au (g/t) Cu (mlb) Mo (mlb) Ag (koz) Au (koz) Reserves 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, 201137
  • 38. Updated Peru Tax and Royalty 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 profits • 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 • Tax depreciation • Withholding/Dividend Tax: • 4.1% applies to profits distributed to nonresidents • Legal Stability Agreements • Guaranteed stability of income tax regime for 15 years38
  • 39. Back Forty Project Exploration drilling continuing on near deposit geophysical anomalies • Permit application and economic assessment are ongoing OCT. 15, 2010 RESOURCE TABLE: • Engineering efforts focused on Combined Open Pit & Underground optimal size and scope of project Ownership 51% (65% 1 ) M&I Inferred Tonnes (M) 17.9 3.4 Au (g/t) 1.57 1.29 Ag (g/t) 19.60 24.33 Cu (%) 0.19 0.44 TARGETING SECOND QUARTER OF 2012 Zn (%) 2.44 1.96 FOR PERMIT APPLICATION (1) 65% on completing a feasibility study & submitting a mine permit application;39 option to Aquila for 75% on free carry to development
  • 40. The Back Forty Project - Mineral Resources October 15, 2010* Classification Tonnes (millions) Au (g/t) Ag (g/t) Cu (%) Zn (%) Open Pit † Measured 14.1 1.59 16.97 0.15 2.54 Indicated 2.1 1.53 32.80 0.41 1.17 Measured and 16.2 1.58 19.00 0.18 2.36 Indicated 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 1.7 1.46 25.23 0.29 3.13 Indicated Inferred 2.0 1.22 18.34 0.32 2.64 Combined Open Pit and Underground Measured and 17.9 1.57 19.60 0.19 2.44 Indicated 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.” ‡40 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.”
  • 41. Yukon: Tom & Jason Preliminary economic assessment in early 2012 • 2011 Exploration programTOM & JASON OVERVIEW completeOwnership 100% • Awaiting assay and metallurgicalLife of Mine 7-18 years sampling resultsProduction Rate TPD 2000-5000Environmental Permitting 5-8 years • Deposits are relatively shallow from surface to 600m depth 2007 Resources1 • Can be accessed via ramp Indicated InferredTonnes (M) 6.4 24.5Ag (g/t) 56.6 33.9Zn (%) 6.3 6.7Pb (%) 5.1 3.5 (1) Estimated Mineral Resources - May 24, 2007 by Scott Wilson RPA - Metal Price used Ag $7/oz, Zn $0.57/lbs, and Pb41 $0.35/lbs. (2) Metal price assumption: Ag $15/oz, Zn $0.95/lbs, and Pb $0.70/lbs
  • 42. Tom and Jason 5,000 metre drill program to upgrade resource • 100% owned, located in the Selwyn Basin • Deposits are relatively shallow from surface to 600m depth • Can be accessed via ramp YUKON TERRITORY Tom & Jason Properties MacTung NORTHWEST TERRITORIES Faro Selwyn Ross River Wolverine Whitehorse42
  • 43. South America - Property Acquisition • Focus on Chile, EL SALVADOR Cu EL SALVADOR CHANARAL Peru and Colombia MANTOS VERDES Cu • Compilation of COPIAPO geological data at CHILE CANDELARIA Cu San Antonio HUASCO VALLENAR • Regional Antofagasta DOS AMIGOS Cu SAN ANTONIO Exploration office Copiapo opened in Santiago La Serena SAN ANTONIO LA SERENA • Evaluation of early SANTIAGO COQUIMBO Argentina stage exploration LOMA NEGRA opportunities underway43
  • 44. Estimated Mineral Reserves1 January 1, 2011 Mine Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%) 777 4,516,000 2.27 29.38 2.87% 4.44% Proven 8,307,000 1.79 27.31 1.78% 4.24% Probable 12,823,000 1.96 28.04 2.16% 4.31% TOTAL 777 NORTH Proven 81,000 1.61 26.52 0.68% 4.89% 449,000 1.44 21.48 1.09% 3.31% Probable 530,000 1.47 22.25 1.03% 3.55% TOTAL TROUT LAKE 409,000 2.06 9.66 2.10% 3.53% Proven 36,000 1.17 1.01 2.18% 1.43% Probable 445,000 1.99 8.96 2.11% 3.36% TOTAL CHISEL 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 10,525,000 1.55 21.00 0.64% 8.31% Probable 10,525,000 1.55 21.00 0.64% 8.31% TOTAL 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.44
  • 45. Other Mineral Resources GRADE CONTAINED t 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 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 13.2 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 2011Pre-Construction Program for Constancia,” March 31, 201145
  • 46. 777 Mine Reserves and Resources 1 2012 Prod. Forecast Proven Probable Tonnes (M) 4.5 8.3 1.55 Au (g/t) 2.27 1.79 1.9 Ag (g/t) 29.38 27.31 28.0 Cu (%) 2.87 1.78 2.3 Zn (%) 4.44 4.24 4.3 (1) Estimated Mineral Reserves and Resources - January 1, 201146
  • 47. Lalor Base Metal Zone Gold Zone Probable 2 Indicated3 Inferred3 Inferred3 Tonnes (M) 10.5 2.6 4.8 5.4 Au (g/t) 1.6 1.0 1.3 4.7 Ag (g/t) 21.0 27.1 26.2 30.6 Cu (%) 0.64 0.29 0.58 0.47 Zn (%) 8.31 5.72 9.25 0.46 Conceptual Estimate1,3 Au Zone Cu/Au Zone Tonnes (M) 5.1 - 6.1 1.8 - 2.2 Au (g/t) 4.3 - 5.1 5.8 - 7.0 Ag (g/t) 23 - 27 18 - 22 Cu (%) 0.2 - 0.4 3.2 - 4.0 Zn (%) 0.2 - 0.4 0.2 - 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 at47 January 1, 2011. (3) As at May 1, 2010
  • 48. Constancia Reserves Proven Probable Tonnes (M) 195.0 177.0 Au (g/t) 0.42 0.37 Ag (g/t) 117 92 Cu (%) 3.49 3.66 Zn (%) 0.04 0.05 (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.48
  • 49. Reed Copper Project Resources 2011 Resources Indicated Inferred Tonnes (M) 2.55 0.17 Au (g/t) 4.52 4.26 Ag (g/t) 0.91 0.52 Cu (%) 7.86 4.55 Zn (%) 0.64 0.3849
  • 50. Reserves and Resources • To estimate mineral reserves, measured and indicated mineral resources were first estimated by a 12-step process, which includes determination of the integrity and validation of the data collected, including confirmation of specific gravity, assay results and methods of data recording. The process also includes determining the appropriate geological model, selection of data and the application of statistical models including probability plots and restrictive kriging to establish continuity and model validation. The resultant estimates of measured and indicated mineral resources are then converted to proven and probable mineral reserves by the application of mining dilution and recovery, as well as the determination of economic viability on a fully costed basis using historical operating costs. Other factors such as depletion from production are applied as appropriate. Long term metal 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 is employed by HudBay Minerals Inc. as Manager, Project Evaluation and who is a Qualified Person as defined by NI 43-101.50
  • 51. Reserves and Resources • Robert Carter, P.Eng., Manager, Project Evaluation of HudBay Minerals Inc. is the Qualified Person accountable for the supervision of the technical information contained within this presentation as defined by NI 43-101 • Greg Greenough, P.Geo., a Senior Resource Geologist with Golder Associates carried out, and is responsible 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 NI 43-101 and is responsible for the Back Forty contents of this presentation. • 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.51
  • 52. HBMFor more information contact:John Vincic, VP of Investor Relations and Corporate CommunicationsTel: 416.362.0615Email: john.vincic@hudbayminerals.com

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