HBM. TD Securities Mining Conference January 24 25, 2012

Transcription

1 HBM TD Securities Mining Conference January 24 25, 2012

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 d 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 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 forwardlooking 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 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 purposes of National Instrument 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 Standards of Disclosure for Mineral Projects ( NI ) 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, While the terms mineral resource, measured mineral resource, indicated mineral resource and inferred mineral resource are recognized and required by NI , 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 and incorporated by reference as Exhibit 99.1 in our Form 40-F filed on March 31, 2011 (File No ). 3

4 Investment Highlights A significant ifi re-rating opportunity 1 Production Growth Significant ifi 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 2 Disciplined i and Clear Growth Strategyt 3 4 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 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 Fully Funded Growth $1.1 billion of liquidity available Dividend reinforces capital allocation discipline Increasing trading liquidity with NYSE listing 4

5 Production Growth Cu Production Precious Metals Production (1) Zn Production (kt) (koz) (kt) E 2016E 255% Growth E 2016E 135% Growth E HudBay - Current Ops (2) Lalor (3) Constancia (4) Reed (5) 2016E 65% Growth (1) Silver converted to gold at a ratio of 50:1. (2) Based on midpoint of 2012 forecasted production released on December 19, 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 technical report titled, Constancia Project Technical Report, dated February 21, (5) Reflects 70% attributable production to HudBay.

6 Metals Reserves Growth Near quadrupling of Cu equivalent reserves Copper Eq. Reserves & Resources (000 tonnes) 5, % increase in copper equivalent reserves (all metals) ,000 3,000 2,000 1,000 68% increase in precious metals reserves % and resources Proven & Probable bl Reserves 30M 3.0 oz Measured + Indicated Resources 1.1 M oz Inferred Resources 1.9 M oz Excludes Lalor Conceptual Est M oz 0 Proven & Probable , ,3 Measured & Indicated Inferred 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

7 Expansion in Commodity Exposure Per Share 2010 (1)(3) Copper Eq. Reserves & Au Eq. 18% Pb 10% Cu Resources per Share 16% (lb Cu/sh) Zn 56% Copper Zinc Gold equivalent 2011 (2)(3) Mo Lead Pb 4% Molybdenum 6% Au Eq. 16% Cu 39% Zn 33% Proven & Probable Measured & Indicated Inferred 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, (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

8 Strong Financial Performance Strong cash flows reflect higher metal sales volumes and prices Revenue Three Months Ended Nine Months Ended Sept 30 Sept , , , ,425 Profit before tax 37,473 22, ,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, , ,387 Operating cash flow per share 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.

9 Production Results On track to meet full year 2011 guidance Three Months Ended Nine Months Ended Guidance 1 Sept 30 Sept Copper 1 tonnes 14,264 14,913 40,490 38, ,000 Zinc 1 tonnes 18,160 18,091 54,246 58, ,000 Precious Metals 1,2 troy oz. 30,181 27,163 82,456 74, ,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 $ 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. 9 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.

10 Solid Financial Position Available liquidity idit of $1.1 1 billion with no debt September Available Liquidity 1 Long Term Debt Shares Outstanding $1.1 billion million Annualized Dividend Yield 2 1.9% 1 Includes cash, $300 million credit facility 2 As at market close on January 5, 2012 Additional debt financing can maximize financial flexibility 10

11 Americas Based Mining Company (MANITOBA) Lalor (MANITOBA) Constancia (PERU) Reed (Manitoba) Back Forty (MICHIGAN) Exploration Properties Producing/Development Properties 3 11

12 Flin Flon Greenstone Belt Prolific and underexplored d camp 777 Mine Trout Lake Mine Flin Flon Lalor Project Snow Lake Ore Concentrator Snow Lake Lake Flin Flon Ore Concentrator Reed Copper Project Amisk Lake Reed Lake Hwy #39 Chisel North Mine N Hwy #10 25 km

13 777 Mine $6 million committed to 777 North expansion in North expansion allows for: Production growth from expansion Underground exploration access Enhanced access to existing mine 1 12 months ended December 31, forecast. 3 Contained metal in concentrate, 2012 forecast. 4 Estimated Mineral Reserves and Resources January 1, OVERVIEW Ownership Life of Mine Annual Sustaining CAPEX 1 100% 9 years $22 million Annual Ore Production (tonnes) million Mining i Costs/tonne ore 2 $38-$42$ Milling Costs/tonne ore 2 $12-$15 83, Production Forecast 3 Cu tonnes Zn tonnes 33,219 56,762 Precious Metals oz Reserves and Resources Prod. Proven Probable Forecast Tonnes (M) Au (g/t) Ag (g/t) Cu (%) Zn (%)

14 777 Mine Underground exploration potential continues to be tested Downcast Raise Downcast 777 SHAFT METALLURGICAL COMPLEX 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 ti on track SHAFT Development RAMP Development 15 Construction of ramp Q3 Q4 Q1 Q2 Q3 Q4 Shaft construction Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Initial production Q1 Q2 Q3 Q4 Q1Q2 Q3 Q4 Full production via shaft Q1Q2 Q ,200 metre access ramp complete Production shaft expected to begin sinking in early 2012 Ventilation shaft scheduled for completion in mid-2012 (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 Ownership Projected Life of Mine Construction CAPEX ( ) Annual Sustaining CAPEX Estimated Mining Cost/tonne Estimated Milling Cost/tonne 100% 20 years $704 million $22 million $36.00 $16.00 Base Metal Zone Gold Zone Prob. 2 Indic. 3 Inferred 3 Inferred 3 Tonnes (M) Au (g/t) Ag (g/t) Cu (%) Zn (%) Tonnes (M) Au (g/t) Ag (g/t) Cu (%) Zn (%) Conceptual Estimate 1,3 Au Zone Cu-Au Zone

16 16 Lalor Construction ti moving indoors and underground d

17 Lalor Construction ti on track with first ore expected mid m Vent Raise Production Shaft 0m Looking N70 o W 250m 750m H1/2012 H2/ Exploration Platform 1000m 1250m Base Metal Resource Gold Inferred Resource Gold Potential Mineral Copper - Gold Potential Mineral m

18 Benefits of Project Optimization 1 Optimized Lalor Lalor Aug. 4, 2010 Construction CAPEX C$ 704M C$ 560M Annual Sustaining CAPEX C$ 22M C $15M Production Rate 4,500 tpd 3,500 tpd Mining Costs $36 per tonne $56 per tonne Milling Costs $16 per tonne $24 per tonne Metallurgy 95% Zn 95% Zn 86% Cu 90% Cu 66% Au 80% Au 60% Ag 75% Ag 1 All figures are estimates 18 Decision to construct a gold plant will be made before 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 Reed Copper Project 19 Ownership 2 70% Assumed metal recoveries in Projected Life of Mine 5 years Construction CAPEX ( ) 2013) $71 million Flin Flon Concentrator are: Annual Sustaining CAPEX 94% copper 58% gold 62% silver 1 Subject to receipt of required permits 2 HudBay has a 70% interest in the Reed copper project pursuant to a joint venture with VMS Ventures. Estimated Mining Costs/tonne ore Estimated Milling Costs/tonne ore $11 million $67 $ Resources Indicated Inferred Tonnes (M) Cu (%) Zn (%) Ag (g/t) Au (g/t) Average production in concentrate expected to be ~17,000 tonnes of contained copper metal per year

20 Constancia Construction ti decision i expected in Q CAPEX for Q and other capitalized costs in Peru are expected to total $107 million, in addition to the approximately $45 million expected to have been incurred by the end of 2011 (1) Based on NI technical report titled, Constancia Project Technical Report, dated February 21, 2011 available under Norsemont s profile at CONSTANCIA OVERVIEW 1 Location Ownership Life of Mine Avg. Annual Cu Prod. Concentrator Capacity By-Products Tonnes (M) Cu (%) Mo (g/t) Ag (g/t) Au (g/t) Peru 100% 15 years 85,000 t 70,000 tpd Mo, Ag, Au RESERVES Proven Probable

21 21 Constancia Engineering, i optimization i and exploration proceeding well

22 Constancia Exploration Program Drilling confirms continuity it of copper mineralization Hole PO intersected 1.83% copper and 0.96 g/t gold over 49 metres Pampacancha resource estimate expected early-2012 Obtained permits required to continue testing mineralized extent t of Pampacancha Two drills will continue to explore Pampacancha to the north and west Completed Titan 24 IP/DC/MT survey over the Constancia property - targets identified for future drilling North Chilloroya Skarn Target High Grade Gold Target Chilloroya Porphyry Target Cu-Au Sulphides Constancia Main SR m g/t Au 19.1 g/t Ag SO m 7.10 g/t Au 0.6 g/t Ag Pampacancha Skarn Target Cu-Au Sulphides PO m 1.83% Cu 0.95 g/t Au PO m 1.62% Cu g/t Ag 1.02 g/t Au 0 1 km 22

23 Back Forty Project Exploration drilling continuing on near deposit geophysical anomalies Permit application and economic assessment are ongoing Engineering efforts focused on optimal size and scope of project 1 65% on completing a feasibility study & submitting a mine permit application; option to Aquila for 75% on free carry to development Oct. 15, 2010 Resource Table: Combined Open Pit & Underground Ownership 51% (65% 1 ) Tonnes (M) Au (g/t) Ag (g/t) Cu (%) Zn (%) M&I Inferred Targeting second quarter of 2012 for permit application 23

24 Yukon: Tom & Jason Preliminary i economic assessment in early Exploration program complete Awaiting assay and metallurgical sampling results Deposits are relatively shallow from surface to 600m depth Can be accessed via ramp Tom & Jason Overview Ownership Life of Mine 100% 7-18 years Production Rate TPD Environmental Permitting 5-8 years 2007 Resources 1 Indicated Inferred Tonnes (M) Ag (g/t) Zn (%) Pb (%) 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 g 1 $54 Million Investment in 2012 Exploration 2 Includes $13 million in South America 3 4 $31 Million to be spent in Manitoba Exploring near active and historical mining areas and grassroots projects $10 Million budgeted for North America Includes spending on the Back Forty project and Tom and Jason deposits 25 Exploration Budget will Enable Over 130,000 Metres of Drilling

26 Growth of Mineral Deposits Discoveries i in the Greenstone Belt Flin Flon 62.5 Trout Lake 777 Lalor Stall Lake Chisel U/G Callinan Chisel Osborne Anderson Konuto Spruce Schist Lake Centennial Westarm Initial resource Chisel 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 million tonnes of conceptual ceptua estimates. Cuprus Flexar Birch Lake North Star Mandy Tonnes (millions) Average discovery cost of 6.4 cents/lb Cu equivalent Expressed in 2011 dollars

27 Clearly Defined Acquisition Strategy Helps create sustainable underlying business value Focus on Americas, mining favourable jurisdictions VMS or porphyry p y deposits with exploration upside Transaction size of no more than 20% of market capitalization Add value through h technical expertise and financial i capacity Accretive to in-situ metal value and net asset value per share 27 In 2012, HudBay will continue executing against growth strategy

28 Substantial Near Term News Flow 1 CONSTANCIA CONSTANCIA LALOR LALOR Construction decision expected in Q Pampacancha NI Resource Estimate in Q Initial production at a rate of 1,200 tonnes per day by mid-2012 Underground exploration drill platform established 2012 TOM & JASON LALOR BACK FORTY Preliminary economic assessment in early All timelines reflect HudBay s current expectations. Underground diamond drilling to commence Q Permit application submission by end of Q2 2012

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

30 30 APPENDIX

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 31 Reserves & Resources

32 Gold Cost Curve 777 Mine 1 Lalor 1 Source: Brook Hunt (2011 cost curve) and HudBay estimates (777 Mine and Lalor) 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.

33 Copper Cost Curve 777 Mine 1 Lalor 2 Reed 4 Constancia (LOM) 3 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 technical report titled, Constancia Project Technical Report, dated February 21, 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) 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.

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, , Trout Lake Chisel North Ore Mined tonnes 1,553, , ,000 Grades Copper % Zinc % Gold g/tonne Silver g/tonne Unit Operating Costs 3 C$/tonne $38-42 $60-74 $ Lalor 1 86, Flin Flon Snow Lake Ore Milled tonnes 1,840, ,000 Recoveries Zinc % Copper % Gold % Unit Operating Costs C$/tonne $12-15 $ 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 MD&A for the nine months ended September 30,

36 2012 Operating Guidance Zinc Plant Flin Flon Zinc Plant 2012 Guidance Zinc concentrate treated Domestic tonnes 164,000 Purchased tonnes 56,000 Total tonnes 220,000 Recovery % 97 Zinc Produced Unit Operating Costs 1 tonnes 113,000 C$/lb $ 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 MD&A for the nine months ended September 30,

37 2012 Capital Expenditures Committed to $296 million in capital expenditures to grow production profile Investment in exploration of approximately $54 million (figures in C$ millions) Guidance Guidance Growth Lalor Constancia Back Forty - 2 Reed North 8 6 Total Growth Capital Sustaining Total Capital Expenditures $294 $391

38 2012 Exploration Expenditures Total (C$ millions) Manitoba 31 South America Other North America 10 Total Exploration Expenditures 54 Manitoba Capitalized Spending (5) 13 Total Exploration Expenses $49 38

39 Lalor Project Guidance CAPEX for new concentrator (including paste backfill 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 $704 million Non-concentrator capital costs remain on budget; $166 million incurred to September 30, Q4 $40 million 2012 $153 million 2013 $200 million 2014 $145 million 39 Total $538 million

40 Lalor Mineralization Tonnes Au Ag Cu Zn (millions) (g/t) (g/t) (%) (%) Reserves Proven Probable Base Metal Zone Mineral Resource Indicated Inferred Gold Zone Inferred Mineral Resource Inferred Potential Gold Zone Conceptual Estimate Potential Copper-Gold Zone Conceptual Estimate 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 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

41 Lalor Project Down plunge exploration potential 41

42 Constancia - Strategic Location Selected Cu Projects in Peru Established Mining District Cusco Xstrata Las Bambas Rio Blanco Galeno Cerro Corona First Quantum Haquira Antamina Toromocho Lima Las Bambas Marcona Haquira Constancia Antapaccay Tintaya Cerro Verde Cuajone Toquepala Operating Mine Development Project CUSCO DEPT. AREQUIPA DEPT. Xstrata Antapaccay Main Powerlines Xstrata - Las Bambas Proposed Mineral Pipeline Roads Pan Pacific Quechua Southern Peru Copper Belt Rail Road to Matarani 42 Close to roads, major power lines, a rail line and port

43 Constancia NI Mineral Reserves Reserves Grade Contained Mt Cu (%) Mo (g/t) Ag (g/t) Au (g/t) Cu (mlb) Mo (mlb) Ag (koz) Au (koz) Proven , , Probable , , Total , , Source: NI technical report titled, Constancia Project Technical Report, dated February 21,

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 p = 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 years 44

45 The Back Forty Project Mineral Resources October 15, 2010 * Classification Tonnes (millions) Au (g/t) Ag (g/t) Cu (%) Zn (%) Open Pit Measured Indicated Measured and Indicated Inferred Underground Measured Indicated Measured and Indicated Inferred Combined Open Pit and Underground Measured and Indicated Inferred * 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

46 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 Faro Selwyn Ross River Wolverine NORTHWEST TERRITORIES Whitehorse 46

47 South America Property Acquisition Focus on Chile, Peru and Colombia Compilation of geological g data at San Antonio Option Agreement signed for greenfield Cu- Au prospect Loma Negra Regional Exploration office opened in Santiago Evaluation of early stage exploration opportunities underway CHILE Antofagasta Copiapo La Serena SAN ANTONIO SANTIAGO Pacific Ocea an CHANARAL HUASCO VALLENAR SAN ANTONIO EL SALVADOR Cu COPIAPO EL SALVADOR MANTOS VERDES Cu CANDELARIA Cu DOS AMIGOS Cu LA SERENA COQUIMBO LOMA NEGRA Argentina 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, exploration upside VMS Ventures Reed Lake Manitoba VMS, near-term copper production, exploration upside Yes Yes Equity Placement Augusta Resources Rosemont Arizona Advanced stage copper porphyry Yes Copper Reef Mining WAX Claims Manitoba VMS, proximity to existing infrastructure CuOro Resources Santa Elena Colombia Porphyry and massive sulphide polymetallic lli deposits MacDonald Mines Ring of Fire Northern Ontario VMS and magmatic sulphide deposits, new camp, exploration upside Panoro Minerals Cotabambas & Antilla Peru Copper porphyry, exploration Yes upside, proximity to Constancia Polar Star Montezuma Atacama, Chile Copper porphyry, extensive land Yes package, exploration upside Waymar Resources Anzá Colombia VMS mineralization Yes Yes Yes Yes 48 Optionor Halo Resources Cold, Lost Manitoba VMS, potential near-term zinc production, exploration upside Yes

49 Estimated Mineral Reserves 1 January 1, 2011 Mine Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%) 777 Proven 4,516, % 4.44% Probable 8,307, % 4.24% Total 12,823, % 4.31% 777 NORTH Proven 81, % 4.89% Probable 449, % 3.31% Total 530, % 3.55% TROUT LAKE Proven 409, % 3.53% Probable 36, % 1.43% Total 445, % 3.36% CHISEL NORTH -ZINC Proven 164, % Probable 56, % Total 220, % CHISEL NORTH -COPPER Proven Probable 92, % 3.67% Total 92, % 3.67% 49 LALOR Proven Probable 10,525, % 8.31% Total 10,525, % 8.31% 1 Estimated 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.

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, M + I 2,550, Inferred 170, LOST PROJECT Measured Indicated 411, M + I 411, Inferred 69, 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,

51 Reserves and Resources To estimate mineral reserves, measured and indicated mineral resources were first estimated by a12-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 i dilution and recovery, as well as the determination ti of economic viability ona 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 p 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

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 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 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. 52

53 HBM For more information contact: John Vincic, VP of Investor Relations and Corporate Communications Tel: V3 hudbayminerals.com