2. Forward Looking Information
g
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, f
G ll forward-looking i f
d l ki information can b id tifi d by the use of f
ti be identified b th f forward-looking t
d l ki terminology such as " l
i l h "plans", "
" "expects", or "d
t " "does not expect", "i expected",
t t" "is t d"
"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 31
industry, company s 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
3. Lalor Project Disclaimer
j
HudBay'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 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
Carter, P Eng Manager, HudBay,
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
, , 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 filed
Terms 31, 2010, www.sedar.com 99.1 40-F
on March 31, 2011 (File No. 001- 34244).
3
4. Investment Highlights
A significant re-rating opportunity
i ifi t ti t it
1 Production Growth
• Significant copper, gold and zinc production growth of 255%, 135% and 65%
Si ifi t ld d i d ti th f 255% d
respectively, anticipated over four years as Lalor, Constancia and Reed are put
into production
• Further production upside expected at Back Forty
2 Disciplined d Clear G
Di i li d and Cl Growth St t
th 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
• Growing gold business represents a further significant re-rating opportunity
3 Consistent Performance from Existing Low Risk Operations
• Strong cash flow generation from existing mines
• 1,300 employees with an average of 19 years of service
4 Fully Funded Growth
• $1.1 billion of liquidity available
• Dividend reinforces capital allocation discipline
• Increasing trading liquidity with NYSE listing
4
5. Production Growth
(1)
Cu Production Precious Metals Production Zn Production
(kt) (koz) (kt)
125 240 150
200 125
100
160 100
75
120 75
50
80 50
25
40 25
0 0 0
2012E 2016E 2012E 2016E 2012E 2016E
255% Growth 135% Growth 65% Growth
HudBay - Current Ops (2)
y p 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 production includes production from inferred resources and the conceptual gold zone.
5 (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.
6. Metals Reserves Growth
Near quadrupling of C equivalent reserves
N d li f Cu i l t
Copper Eq. Reserves
& Resources
(000 tonnes)
5334 288% increase in copper equivalent reserves
5,000
(all metals)
1550
4,000
68% increase in precious metals reserves
3198 713
and resources
288%
3,000
1286
Proven & Probable R
P P b bl Reserves 3.0
3 0 M oz
Measured + Indicated Resources 1.1 M oz
2,000
3071
Inferred Resources 1.9 M oz
1121
1,000
Excludes Lalor Conceptual Est 1.1 1.6
1 1 – 1 6 M oz
791
0
2010 1,3 2011 2,3
Proven & Probable Measured & Indicated Inferred
(1) HudBay reserves as of January 1, 2010, excluding Fenix.
(2) HudBay reserves as of March 31, 2011 excluding Fenix.
6 (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
7. Expansion in Commodity Exposure
Per Share
2010 (1)(3) Copper Eq. Reserves &
Pb
10% Cu
16%
Resources per Share
(lb Cu/sh)
68.1
70
Au Eq.
18%
60
19.8
19 8
50 45.8
Copper
Zn 9.1
Zinc
56% 40
Gold equivalent
18.4
18 4
2011 (2)(3)
Pb
Mo Lead
30
4% Molybdenum
6%
Cu 20 16.1 39.2
Au Eq.
39%
16%
10
11.3
Zn 0
33%
2010 2011
Proven & Probable Measured & Indicated Inferred
(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.
7 (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$12.00/lb Mo; silver converted to gold at ratio of 60:1
8. Strong Financial Performance
Strong cash flows reflect higher metal sales volumes
and prices
Three Months Ended Nine Months Ended
Sept 30 Sept 30
2011 2010 2011 2010
Revenue 212,335 167,778 636,503 596,425
Profit before tax 37,473 22,416 139,212 82,075
Profit (Loss) for the period (41,083) (1,743) (197,874) 13,149
EPS (0.23) (0.01) (1.14) 0.09
Operating cash flow 1 58,316 25,597 168,119 136,387
Operating cash flow per share 1 0.34 0.17 1.01 0.90
1 Before changes in non-cash working capital. Operating cash flow and operating cash flow per share are considered non-IFRS measures. See "Non-IFRS
8 Measures" in our Management's Discussion and Analysis for the quarter ending September 30, 2011.
9. Production Results
On t k t
O track to meet full year 2011 guidance
t f ll id
Three Months Ended Nine Months Ended Guidance1
Sept 30 Sept 30
2011 2010 2011 2010 2012
Copper 1 tonnes 14,264 14,913 40,490 38,753 35-40,000
Zinc 1 tonnes 18,160 18,091 54,246 58,194 70-85,000
Precious Metals 1,2 troy oz. 30,181 27,163 82,456 74,337 85-105,000
Co-Product Cash Costs 3
Gold US$/oz $500 $323 $346 $382
Copper US$/lb $1.63 $1.34 $1.40 $1.45
Zinc US$/lb $0.94 $0.83 $0.98 $0.89
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
9 30, 2011.
10. Solid Financial Position
Available liquidity f $1.1 billion ith
A il bl li idit of $1 1 billi with no d bt
debt
September 30
2011
Available Liquidity 1 $1.1 billion
Long Term Debt 0
Shares Outstanding 171.9 million
Annualized Dividend Yield 2 1.9%
1 Includes cash, $300 million credit facility
2 As at market close on January 5, 2012
y ,
Additional debt financing can maximize financial flexibility
10
11. Americas Based Mining Company
g p y
1 2
1 777 (MANITOBA) 4
5
2 Lalor (MANITOBA)
3 Constancia (PERU)
4 Reed (Manitoba)
5 Back Forty
B k F t (MICHIGAN)
3
Exploration Properties
Producing/Development Properties
11
12. Flin Flon Greenstone Belt
Prolific d d
P lifi and underexplored camp
l d
Snow Lake
Ore Concentrator
Trout Lake Mine
Lalor Snow
Project Lake
L k
777 Mine Flin Flon
Chisel North Mine
Reed
Flin Flon Lake
Amisk Ore Concentrator Hwy
#39
Lake Zinc l t
Zi plant Reed Copper
Project
Hwy
N #10
25 km
13. 777 Mine
$6 million committed to 777 North
expansion in 2012
• 777 North expansion
allows for:
777 OVERVIEW
• P d ti growth
Production th Ownership 100%
from expansion Life of Mine 9 years
Annual Sustaining CAPEX1 $22 million
• Underground Annual Ore Production (tonnes)2 1.55 million
exploration access Mining Costs/tonne ore2
Mi i C / $38-$42
$ $
Milling Costs/tonne ore2 $12-$15
• Enhanced access to
2012 Production Forecast3
existing mine Cu tonnes 33,219
Zn tonnes 56,762
Precious Metals oz 83,407
Reserves and Resources4 2012 Prod.
Proven Probable Forecast
1 12 months ended December 31, 2010. Tonnes (M) 4.5 8.3 1.55
2 2012 forecast.
forecast Au (g/t) 2.27
2 27 1.79
1 79 1.9
19
3 Contained metal in concentrate, 2012 forecast.
4 Ag (g/t) 29.38 27.31 28.0
Estimated Mineral Reserves and Resources – January 1, 2011
Cu (%) 2.87 1.78 2.3
13 Zn (%) 4.44 4.24 4.3
14. 777 Mine
Underground exploration potential continues to be
tested
METALLURGICAL
Downcast COMPLEX
Downcast 777 SHAFT
Raise
777 Shaft
530m level
840m level
0m 100m 200m 300m
Mined areas 1412m level
Resources to be mined
Exploration Target Areas
14
15. Lalor
Development and construction on t k
D l t d t ti track
SHAFT
Development
Shaft construction Full
production
via shaft
Ownership 100%
RAMP Projected Life of Mine 20 years
Development Construction CAPEX (2010-2014)
( ) $704 million
$
Construction of ramp Initial production
Annual Sustaining CAPEX $22 million
Estimated Mining Cost/tonne $36.00
Estimated Milling Cost/tonne $16.00
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Base Metal Zone Gold Zone
Prob. Indic.
Prob 2 Indic 3 Inferred3 Inferred3
2009 2010 2011 2012 2013 2014 2015 Tonnes (M) 10.5 2.6 4.8 5.4
Au (g/t) 1.6 1.0 1.3 4.7
Ag (g/t) 21.0 27.1 26.2 30.6
• 3,200 metre access ramp complete
Cu (%) 0.64 0.29 0.58 0.47
• Production shaft expected to begin sinking in Zn (%) 8.31 5.72 9.25 0.46
early 2012 Conceptual Estimate1,3
Au Zone Cu-Au Zone
• Ventilation shaft scheduled for completion in
Tonnes (M) 5.1 – 6.1 1.8 – 2.2
d 0
mid-2012 Au (g/t)
A ( /t) 5.8 7.0
58–70
4.3 – 5.1
(1) The potential quantity and grade are conceptual in nature. There has been insufficient Ag (g/t) 23 – 27 18 – 22
exploration to define a mineral resource and it is uncertain if further exploration will Cu (%) 0.2 – 0.4 3.2 – 4.0
result in the target being delineated as a mineral resource
15 (2) As at January 1, 2011 Zn (%) 0.2 – 0.4 0.2 – 0.3
(3) As at May 1, 2010
16. Lalor
C
Construction moving i d
t ti i indoors and underground
d d d
16
17. Lalor
Construction on t k with fi t ore expected mid-2012
C t ti track ith first t d id 2012
500m Looking N70oW
0m 250m
Vent Raise Production Shaft
Exploration Platform
750m H1/2012 H2/2012 2013 - 2014 2015
1000m
1250m
Base Metal Resource
Gold Inferred Resource
Gold Potential Mineral
Copper - Gold Potential Mineral
1500m
17
18. Benefits of Project Optimization1
j p
Optimized Lalor Lalor – Aug. 4, 2010
Construction CAPEX C$ 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
g $16 per tonne
p $24 per tonne
p
95% Zn 95% Zn
86% Cu 90% Cu
Metallurgy
66% Au 80% Au
60% Ag 75% Ag
1 All figures are estimates
Decision to construct a gold plant will be made before
18
higher grade gold mineralization is mined
19. Reed Copper Project
Proceeding 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 Project
Ownership2 70%
• Assumed metal recoveries in Projected Life of Mine
Construction CAPEX (2012 2013)
(2012-2013)
5 years
$71 million
Flin Flon Concentrator are: Annual Sustaining CAPEX $11 million
Estimated Mining Costs/tonne ore $67
• 94% copper Estimated Milling Costs/tonne ore $16
• 58% gold
2011 Resources
Indicated Inferred
Tonnes (M)
• 62% silver
2.55 0.17
Cu (%) 4.52 4.26
Zn (%) 0.91 0.52
1 Subject to receipt of required permits Ag (g/t)
g (g ) 7.86 4.55
2 HudBay has a 70% interest in the Reed copper project pursuant to a joint
venture with VMS Ventures.
Au (g/t) 0.64 0.38
19
Average production in concentrate expected to be ~17,000
tonnes of contained copper metal per year
20. Constancia
C
Construction d i i expected i Q1 2012
t ti decision t d in
CONSTANCIA OVERVIEW 1
Location Peru
Ownership 100%
Life of Mine 15 years
• CAPEX for Q1 2012 and other
f d th Avg. Annual Cu Prod. 85,000 t
capitalized costs in Peru are Concentrator Capacity 70,000 tpd
By-Products Mo, Ag, Au
expected to total $107 million, in
addition to the approximately RESERVES
Proven Probable
$45 million expected to have Tonnes (M) 195.0 177.0
been incurred by the end of 2011 Cu (%) 0.42 0.37
Mo (g/t) 117 92
Ag (g/t) 3.49 3.66
Au (g/t) 0.04 0.05
(1) Based on NI 43-101 technical report titled, “Constancia Project Technical Report”,
20 dated February 21, 2011 available under Norsemont’s profile at www.sedar.com.
21. Constancia
E i i ti i ti d l ti di ll
Engineering, optimization and exploration proceeding well
21
22. Constancia Exploration Program
Drilling
D illi confirms continuity of copper mineralization
fi ti it f i li ti
• Hole PO-11-086 intersected
1.83% copper and 0.96 g/t
gold over 49 metres
Constancia Main
• Pampacancha resource
North
estimate expected early-2012 Pampacancha Skarn Target
Cu-Au Sulphides
• Obtained permits required to
continue testing mineralized PO-11-072
extent of Pampacancha
t t fP h SR-10-013
121.45m
121 45
1.62% Cu
Chilloroya Skarn Target 3.0m 13.62 g/t Ag
• Two drills will continue to High Grade Gold Target 242.6 g/t Au
19.1 g/t Ag
1.02 g/t Au
explore Pampacancha to the PO-11-086
SO-10-010 49m
north and west 3.0m 1.83% Cu
7.10 g/t Au 0.95 g/t Au
0.6 g/t Ag
• Completed Titan 24 IP/DC/MT
Chilloroya Porphyry Target
survey over the Constancia Cu-Au Sulphides
property - targets identified for 0 1 km
future drilling
22
23. Back Forty Project
Exploration drilling continuing on near
deposit geophysical anomalies
• Permit application and
economic assessment
are ongoing
• Engineering efforts Oct. 15, 2010 Resource Table:
Combined Open Pit & Underground
focused on 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 57 1.29
1 29
Ag (g/t) 19.60 24.33
Cu (%) 0.19 0.44
1 65% on completing a feasibility study & submitting a mine permit application;
option to Aquila for 75% on free carry to development Zn (%) 2.44 1.96
Targeting second quarter of 2012 for permit application
23
24. Yukon: Tom & Jason
Preliminary economic assessment i early 2012
P li i i t in l
• 2011 Exploration program complete
• Awaiting assay and metallurgical
sampling results
li lt
Tom & Jason Overview
• Deposits are relatively shallow from Ownership 100%
surface to 600m depth Life of Mine 7-18 years
Production Rate TPD 2000-5000
2000 5000
• Can be accessed via ramp Environmental Permitting 5-8 years
2007 Resources1
Indicated Inferred
Tonnes (M) 6.4 24.5
Ag (g/t) 56.6 33.9
Zn (%) 6.3 6.7
Pb (%) 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 Pb $0.35/lbs
2 Metal price assumption: Ag $15/oz, Zn $0.95/lbs, and Pb $0.70/lbs
24
25. Exploration Program Highlights
p g g g
1 $54 Million Investment in 2012 Exploration
2 Includes $13 million in South America
$31 Million to be spent in Manitoba
3 • 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
25
Metres of Drilling
26. Growth of Mineral Deposits
Discoveries in the G
Di i i th Greenstone B lt
t Belt
Flin Flon
Trout L k
T t Lake
⁄⁄ 62.5
777
Lalor
Stall Lake
Chisel U/G
Callinan
Chisel
Osborne
O b
Anderson
Konuto
Spruce
Schist Lake
Centennial
Westarm
Initial resource
Chisel
Chi l Pit
Coronation Added resource
White Lake
Dickstone The mineral resource estimate for Lalor is made
Rod up of 13.3 million tonnes of indicated resources
Photo and 10.2 million tonnes of inferred mineral
Ghost & Lost resources, not including 6.9 – 8.3 million tonnes
o conceptual est ates
of co ceptua estimates.
Cuprus
C
Flexar
Birch Lake
North Star
Mandy
0 5 10 15 20 25 30
Tonnes (millions)
( )
Average 1990 – 2010 discovery cost of 6.4 cents/lb Cu equivalent1
26
1 Expressed in 2011 dollars
27. Clearly Defined Acquisition Strategy
Helps
H l create sustainable underlying b i
t t i bl d l i business value
l
Focus on Americas, mining favourable jurisdictions
VMS or porphyry deposits with exploration upside
p p yy p p p
Transaction size of no more than 20% of market capitalization
Add value th
l through t h i l expertise and financial capacity
h technical ti d fi i l it
Accretive to in-situ metal value and net asset value per share
In 2012 HudBay will continue executing against
2012,
growth strategy
27
28. 1
Substantial Near Term News Flow
CONSTANCIA CONSTANCIA LALOR LALOR
Construction P
Pampacancha NI
h Initial production at a Underground
decision expected 43-101 Resource rate of 1,200 tonnes exploration drill
in Q1 2012 Estimate in Q1 2012 per day by mid-2012 platform established
2012
TOM & JASON LALOR BACK FORTY
Preliminary
economic
assessment
in early 2012
Underground Permit application
diamond drilling to submission by end
commence Q1 2012 of Q2 2012
1 All timelines reflect HudBay’s current expectations.
28
29. Mission Statement
To create sustainable value through increased
commodity exposure on a per share basis, in high
quality and growing long life deposits in mining
friendly jurisdictions
29
31. 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
31
32. 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
32 materially different from the co-product costs reported by HudBay in its public disclosure.
33. 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 (
( ) y (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 on NI 43-101 technical report titled, “Constancia Project Technical Report”, dated February 21, 2011.
33 4 Based on Reed AFE.
34. Zinc Cost Curve
777 Mine 1
Lalor 2
Source: Brook Hunt (777 Mine and 2011 cost curve) and HudBay estimates (Lalor)
1 Brook Hunt co-product cash costs.
2 Co-product cash costs calculated using Brook Hunt’s co-product costing methodology which is
34 materially different from the co-product costs reported by HudBay in its public disclosure.
35. 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
C % 2.3
23 1.8
18 0 72
0.7 0.4
04
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 $32 - 37
1 Revenues and costs from Lalor operations prior to commencement of commercial production will be capitalized
2 The 165,000 tonnes of forecast production from the Chisel North mine is anticipated to consist of 108,000 tonnes of zinc ore at 7.1% zinc to be processed at HudBay's Snow Lake
concentrator, and 57,000 tonnes of copper/gold ore to be processed at the Flin Flon concentrator. The expected grade for the copper/gold ore is 2.1 g/t Au, 20.6 g/t Ag, 1.6% Cu and
0.9% Zn.
3 Forecast unit operating costs are calculated on the same basis as reported unit operating costs in HudBay’s quarterly and annual management’s discussion and analysis. For a
reconciliation of the costs that are included in unit operating costs to total operating costs in accordance with IFRS, refer to the Non-IFRS detailed cost of sales table in HudBay’s 35
MD&A for the nine months ended September 30, 2011.
36. 2012 Operating Guidance – Zinc
Plant
2012
Flin Flon Zinc Plant Guidance
Zinc concentrate treated
Domestic tonnes 164,000
164 000
Purchased tonnes 56,000
Total tonnes 220,000
Recovery % 97
Zinc Produced tonnes 113,000
1
Unit Operating Costs C$/lb $0.32 - 0.37
1Forecastunit 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.
36
37. 2012 Capital Expenditures
• 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
Growth
Lalor 140 147
Constancia
C t i 45 107
Back Forty - 2
Reed - 34
777 N th
North 8 6
Total Growth Capital 193 296
Sustaining 101 95
Total Capital Expenditures $294 $391
37
38. 2012 Exploration Expenditures
Total
(C$ millions)
Manitoba 31
South America 13
Other North America 10
Total Exploration Expenditures 54
Manitoba Capitalized Spending (5)
Total Exploration Expenses
p p $
$49
38
39. Lalor Project Guidance
j
• CAPEX for new concentrator (including p
( g paste backfill p
plant)
)
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, 2011
p ,
2011 – Q4 $40 million
2012 $153 million
2013 $200 million
2014 $145 million
Total $538 million
39
40. 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 dated August 4, 2010, available at
40 www.sedar.com.
41. Lalor
Project
Down plunge
exploration
potential
41
42. Constancia - Strategic Location
g
Selected Cu Projects in Peru Established Mining District
Cusco
Xstrata – Las Bambas
Rio Blanco
Cerro Corona First Quantum – Haquira
Galeno
Antamina
CUSCO DEPT.
Toromocho Pan Pacific – Quechua
Lima
Las Bambas
Marcona AREQUIPA DEPT.
Haquira Constancia Xstrata – Antapaccay
Antapaccay
A t Tintaya
Cerro Verde Cuajone
Toquepala Main Powerlines Southern Peru Copper Belt
Operating Mine Xstrata - Las Bambas Proposed Mineral Pipeline Rail Road to Matarani
Development Project Roads
Close to roads, major power lines, a rail line and port
42
43. 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, 2011
43
44. 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 p
p p pre-tax profits
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
pre tax
• 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
45. The Back Forty Project –
Mineral Resources October 15 2010*
15,
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 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
viability. estimates. 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 45
US$62. See “Mineral Resource Estimate Disclosure.”
46. Tom and Jason
5,000
5 000 metre drill program t upgrade resource
t d ill to d
• 100% owned, located in the Selwyn Basin
owned
• 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
Whitehorse
46
47. South America – Property
Acquisition
an
• Focus on Chile, Peru
Chile
Pacific Ocea
EL SALVADOR Cu
and Colombia CHANARAL EL SALVADOR
MANTOS VERDES Cu
• Compilation of
g
geological data at San
g COPIAPO
Antonio CHILE
CANDELARIA Cu
• Option Agreement HUASCO VALLENAR
signed for greenfield Cu- Antofagasta DOS AMIGOS Cu
Au prospect Loma SAN ANTONIO
Copiapo
Negra
La Serena SAN ANTONIO
• Regional Exploration LA SERENA
COQUIMBO
office opened in SANTIAGO Argentina
Santiago LOMA NEGRA
• Evaluation of early stage
exploration opportunities
underway
47
48. 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, Yes
exploration upside
l i id
VMS Ventures Reed Lake Manitoba VMS, near-term copper Yes
production, exploration upside
Equity Placement
Augusta Resources Rosemont Arizona Advanced stage copper porphyry Yes
Copper Reef Mining WAX Claims Manitoba VMS, proximity to existing Yes
infrastructure
CuOro Resources Santa Elena Colombia Porphyry and massive sulphide Yes
polymetallic d
l lli deposits
i
MacDonald Mines Ring of Fire Northern Ontario VMS and magmatic sulphide Yes
deposits, new camp, exploration
upside
Panoro Minerals Cotabambas & Antilla Peru Copper porphyry, exploration
porphyry Yes
upside, proximity to Constancia
Polar Star Montezuma Atacama, Chile Copper porphyry, extensive land Yes
package, exploration upside
Waymar Resources
y Anzá Colombia VMS mineralization Yes
Optionor
Halo Resources Cold, Lost Manitoba VMS, potential near-term zinc Yes
48 production, exploration upside
49. Estimated Mineral Reserves1
Ja ua y , 0
January 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%
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 -ZINC
ZINC
164,000 - - - 8.77%
Proven
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 - - - - -
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
49 Analysis for the year ended December 31, 2010 and applicable technical reports in respect of the properties filed on SEDAR for further information.
50. 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
y , y p g ;
2011Pre-Construction Program for Constancia,” March 31, 2011
50
51. Reserves and Resources
• To estimate mineral reserves, measured and indicated mineral resources were first estimated by a 12-step
, y p
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 dil ti
i i dilution and recovery, as well as th d t
d ll the determination of economic viability on a f ll costed b i using
i ti f i i bilit fully t d basis i
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
p p p , g,
employed by HudBay Minerals Inc. as Manager, Project Evaluation and who is a Qualified Person as defined by
NI 43-101.
51
52. 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
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.
p y p
• 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.
52
53. HBM
For more information contact:
John Vincic, VP of Investor Relations and Corporate Communications
Tel: 416.362.0615
Email: john.vincic@hudbayminerals.com
2012 V3
hudbayminerals.com
