HBM. Bank of America / Merrill Lynch 17th Annual Canada Mining Conference September 8 9, 2011

Transcription

1 HBM Bank of America / Merrill Lynch 17th Annual Canada Mining Conference September 8 9, 2011

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 key development projects, including the Lalor, Constancia and Fenix projects and the 777 North expansion, the ability to maintain a regular dividend on its common shares, the ability of management to execute on key strategic and operational objectives, 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". Forwardlooking 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 its key projects on an economic basis and in accordance with anticipated timelines, geological and technical conditions, the ability to meet required solvency tests to support a dividend payment, 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 forwardlooking 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 Chisel North Flin Flon Trout Lake

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 and potential grades and quantities of minerals 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. Qualified Person The technical and scientific information included in this news release was prepared under the supervision of Cashel Meagher, Vice President, Exploration 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 Lalor Ramp Constancia Lalor

4 Investment Highlights A significant re-rating opportunity Production Growth Significant copper, gold and zinc production growth of 155%, 105% and 60% respectively, anticipated over five years as Lalor and Constancia are put into production Further production upside at Reed and Back Forty Disciplined and Clear Growth Strategy Commodity exposure on a per share basis greatly expanded with Norsemont acquisition Portfolio of early stage opportunities more than tripled with holdings in 15 exploration and development companies worth $130 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 pro-forma liquidity available Dividend reinforces capital allocation discipline Increasing trading liquidity with NYSE listing 4

5 Production Growth Further production growth expected from Reed and Back Forty Cu Production Precious Metals Production (1) (kt) (koz) (kt) Zn Production E 2016E 155% Growth E 2016E 105% Growth E 2016E 60% Growth HudBay - Current Ops (2) Lalor (3) Constancia (4) 5 (1) Silver converted to gold at a ratio of 50:1 (2) Based on midpoint of 2011 forecasted production released on December 13, 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 and copper-gold zones (4) Based on contained metal in concentrate per NI technical report titled, Constancia Project Technical Report, dated February 21, 2011.

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, % % increase in precious metals reserves and resources Proven & Probable Reserves 3.0 M oz Measured + Indicated Resources 1.1 M oz Inferred Resources 1.9 M oz Excludes Lalor Conceptual Est M oz ,3 2, Proven & Probable 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) Au Eq. 18% Pb 10% Cu 16% Copper Eq. Reserves & Resources per Share (lb Cu/sh) (2)(3) Pb 6% Mo 4% Zn 56% Copper Zinc Gold equivalent Lead Molybdenum 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 financial results reflect higher metal sales volumes and prices Revenue Three Months Ended June , ,341 Six Months Ended June , ,647 Profit before asset impairments 1 39,967 4,431 56,764 15,014 EPS before asset impairments Operating cash flow 1 63,467 32, ,803 82,013 Operating cash flow per share Profit before asset impairments, EPS before asset impairments and operating cash flow are considered non-gaap measures. See "Non-GAAP Performance Measures" in our Management's Discussion and Analysis for the quarter ending June 30, 2011.

9 Production Results Strong financial results reflect higher metal sales volumes and prices Copper tonnes Three Months Ended June 30 Six Months Ended June 30 Guidance ,840 12,123 26,226 23, ,000 Zinc tonnes 16,881 24,961 36,086 40, ,000 Precious Metals 2 troy oz. 22,669 24,475 52,415 47, ,000 Co-Product Cash Costs 3 Gold US$/oz $266 - $258 - Copper US$/lb $ $ Zinc US$/lb $ $ Metal reported in concentrate is 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-gaap measures. See "Non-GAAP Performance Measures" in our Management's Discussion and Analysis for the quarter ending June 30, 2011.

10 Solid Financial Position Available liquidity of $1.1 billion with no debt June Available Liquidity (Pro-forma) 1 Long Term Debt Shares Outstanding Annualized Dividend Yield 2 $1.1 billion million 1.7% 1 Includes cash, $300 million credit facility and $140 million for sale of Fenix project 2 As at market close on August 4, 2011 Additional debt financing can maximize financial flexibility 10

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

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

13 777 Mine Blue chip long-life operation set to expand 13 $20 million expansion of 777 North Production growth from expansion Underground exploration access Enhanced access to existing mine 1 12 months ended December 31, forecast. 3 Contained metal in concentrate, 2011 forecast. 4 Estimated Mineral Reserves and Resources January 1, OVERVIEW Ownership Life of Mine Annual Sustaining CAPEX 1 Annual Ore Production (tonnes) million Mining Costs/tonne ore 2 $37-$41 Milling Costs/tonne ore 2 $11-$ Production Forecast 3 Cu tonnes Zn tonnes Au equivalent oz Reserves and Resources 4 Proven Probable Tonnes (M) Au (g/t) Ag (g/t) Cu (%) Zn (%) % 9 years $22 million 38,800 51,900 79, Prod. Forecast

14 777 Mine Underground exploration potential being tested for the first time 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 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 Q Full production via shaft Q1Q2 Q3 Access ramp near 2,500 meter mark Ventilation shaft presink completed; scheduled for completion in Q Construction started on permanent fresh air fan and heater system for ramp (1) Mineral resources and potential conceptual estimates are exclusive of and additional to stated mineral reserves. (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 Tonnes (M) Au (g/t) Ag (g/t) Cu (%) Zn (%) Tonnes (M) Au (g/t) Ag (g/t) Cu (%) Zn (%) Base Metal Zone Gold Zone Prob. 2 Indic. 1,3 Inferred 1,3 Inferred 1, % 20 years $704 million $22 million $36.00 $ Conceptual Estimate 1,3 Au Zone Cu-Au Zone

16 Lalor Exploration drilling further extends copper-gold zone 1 500m Vent Raise Ramp from Chisel Production Shaft 0m Looking N70 o W 250m m Exploration Platform Zn Rich Au Rich 1000m Cu-Au 1250m Cu-Au zone DUB-189W01 8m 9.28 g/t Au, 46.9 g/t Ag DUB-274W02 Three zones of Cu-Au mineralization m Base Metal Resource Gold Inferred Resource Gold Potential Mineral Copper - Gold Potential Mineral 1. For additional detail on Lalor, refer to HudBay s technical report entitled Technical Report, Lalor Deposit, Snow Lake, Canada dated October 8, 2009 DUB m 7 g/t Au, 21 g/t Ag, 4.8% Cu DUB m 13.7g/t Au, 19.8 g/t Ag, 4.4% Cu

17 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 86% Cu 66% Au 60% Ag 95% Zn 90% Cu 80% Au 75% Ag 1 All figures are estimates 17 Decision to construct a gold plant will be made before higher grade gold mineralization is mined

18 Reed Copper Project Construction decision expected by the end of 2011 Application for advanced exploration permit expected to be submitted in Q Hole RLE006 on an adjacent option property tested these anomalies and intersected the following zones of mineralization: 7.18 meters of 7.44% Cu, 0.23% Zn, 0.48 g/t Au and 7.57 g/t Ag meters of 0.79% Cu, 0.39% Zn, 0.16 g/t Au and 1.58 g/t Ag Reed Copper Project Location 115 km from Flin Flon Ownership 1 70% Life of Mine ~5 years Tonnes (M) Cu (%) Zn (%) Ag (g/t) Au (g/t) 2011 Resources Indicated Inferred HudBay has a 70% interest in the Reed copper project pursuant to a joint venture with VMS Ventures.

19 Constancia US$116 million pre-construction program to enable construction decision in early Constancia Budget (US$M) Environmental, Permitting, Land 12 G&A 12 Engineering 10 Construction 27 Procurement 46 Exploration 9 Total 116 (1) Based on NI technical report titled, Constancia Project Technical Report, dated February 21, 2011 available under Norsemont s profile at (2) Excludes sustaining CAPEX, which equates to approximately $0.09/lb Cu CONSTANCIA OVERVIEW 1 Location Ownership Life of Mine Avg. Annual Cu Prod. Concentrator Capacity By-Products Capital Costs Cash Costs 2 Tonnes (M) Cu (%) Mo (g/t) Ag (g/t) Au (g/t) Peru 100% 15 years RESERVES Proven Probable ,000 t 70,000 tpd Mo, Ag, Au US$920M US$0.93/lb Cu

20 Constancia Exploration Program Drilling confirms continuity of copper mineralization Hole PO intersected 2.48% copper over 52.5 meters and hole PO intersected 1.06% copper over 44.7 meters North Constancia Main Pampacancha Skarn Target Cu-Au Sulphides Obtained permits required to continue testing mineralized extent of Pampacancha Three drills will continue to explore Pampacancha to the north and west Chilloroya Skarn Target High Grade Gold Target SR m g/t Au 19.1 g/t Ag SO m 7.10 g/t Au 0.6 g/t Ag PO m 2.48% Cu 3.23 g/t Ag PO m 1.62% Cu g/t Ag 1.02 g/t Au Targets identified for future drilling at Chilloroya South Chilloroya Porphyry Target Cu-Au Sulphides 0 1 km 20

21 Back Forty Project Exploration drilling to continue on near deposit geophysical anomalies in Q Permit application and economic assessment are ongoing Engineering efforts focused on optimal size and scope of project Oct. 15, 2010 Resource Table: Combined Open Pit & Underground Ownership 51% (65% 1 ) M&I Inferred Tonnes (M) Au (g/t) Ag (g/t) % on completing a feasibility study & submitting a mine permit application; option to Aquila for 75% on free carry to development Cu (%) Zn (%) Targeting second quarter of 2012 for permit application 21

22 Yukon: Tom & Jason Active exploration to begin in mid-august 2011 Two drills to test possible extensions to known mineralization Will enable collection of metallurgical samples required for preparation of economic assessments Exploration intended to assist with upgrading and expanding current mineral resource Preliminary economic assessment expected in early 2012 Tom & Jason Overview Ownership Life of Mine 100% 7-18 years Production Rate TPD Environmental Permitting 5-8 years Tonnes (M) Ag (g/t) Zn (%) Pb (%) In-situ $/t Resources 1 Indicated Inferred $ $211 Historic Reserve $ 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 Internal Reserve HBMS quoted as a historical estimate of mineral reserves included for illustrative purposes only and should not be considered a mineral reserve for purposes of NI

23 Exploration Program Highlights $68 Million Investment in 2011 Exploration Includes US$9 million exploration spending at Constancia One of the Largest Budgets in HudBay s History Nearly $33 Million in Flin Flon Greenstone Belt for Grassroots, Near Mine, and Exploration Near Projects 4 Expanding Activity in New Camps Across Americas $16 million committed to Back Forty Exploration re-start at Tom and Jason Deposits in Yukon San Antonio project in Chile is focused on exploration and evaluation Constancia budget currently being formulated 23 Total Drill Meters for 2011 Program is approx. 190,000

24 Growth of Mineral Deposits Discoveries in the Greenstone Belt Flin Flon Trout Lake 777 Lalor Stall Lake Chisel U/G Callinan Chisel Osborne Anderson Konuto Spruce Schist Lake Centennial Westarm Chisel Pit Coronation White Lake Dickstone Rod Photo Ghost & Lost Cuprus Flexar Birch Lake North Star Mandy Initial resource Added resource The mineral resource estimate for Lalor is made up of 13.3 million tonnes of indicated resources and 10.2 million tonnes of inferred mineral resources, not including million tonnes of conceptual estimates Tonnes (millions) Exploration Budget of $68 million

25 Clearly Defined Acquisition Strategy Helps create sustainable underlying business value Focus on Americas, mining favourable jurisdictions VMS or porphyry deposits with exploration upside Transaction size of no more than 20% of market capitalization Add value through technical expertise and financial capacity Accretive to in-situ metal value and net asset value per share 25 In 2011, HudBay is committed to executing against growth strategy

26 Substantial Near Term News Flow 1 BACK FORTY Preparation for permit application and economic assessment are ongoing; Engineering efforts focused on optimal size and scope of project CONSTANCIA Construction decision expected in Q LALOR Initial production at a rate of 1,200 tonnes per day by Q LALOR Underground drill platform established REED PRODUCTION DECISION Q TOM & JASON Preliminary economic assessment in early 2012 BACK FORTY Feasibility study and permit application submission by end of Q All timelines reflect HudBay s current expectations.

27 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 27

28 28 APPENDIX

29 Appendix Contents Cost Curves 2011 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 29 Reserves & Resources

30 Gold Cost Curve 1,600 1,400 C1 Cash Cost (US$/oz Au) 1,200 1, Mine 1 Lalor Cumulative Percentile Production (%) Source: Brook Hunt (curve) and HudBay estimates (777 Mine and Lalor) Co-product cash costs calculated using Brook Hunt s co-product costing methodology which is materially different from the coproduct costs reported by HudBay in its public disclosure.

31 Copper Cost Curve 300 C1 Cash Cost (100 x US$/lb Cu) Mine 1 Lalor 2 Constancia (LOM) Cumulative Percentile Production (%) Source: Brook Hunt (777 Mine and curve) and HudBay estimates (Lalor) 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 coproduct costs reported by HudBay in its public disclosure. 3 Based on NI technical report titled, Constancia Project Technical Report, dated February 21, 2011.

32 Zinc Cost Curve 120 C1 Cash Cost (100 x US$/lb Zn) Mine 1 Lalor Cumulative Percentile Production (%) Source: Brook Hunt (777 Mine and curve) and HudBay estimates (Lalor) 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 coproduct costs reported by HudBay in its public disclosure.

33 2011 Operating Guidance Metal in Concentrate 1 Zinc tonnes 70,000 90,000 Copper tonnes 40,000 55,000 Gold Equivalent 2 ounces 95, , Trout Lake Chisel North Ore Mined tonnes 1,490, , ,000 Grades Zinc % 4.2% 2.8% 6.1% Copper % 2.8% 1.8% 0.5% Gold g/tonne Silver g/tonne Unit Operating Costs 3 C$/tonne $37-41 $70-86 $ Ore Milled tonnes Recoveries Zinc % Copper % Gold % Unit Operating Costs 3 C$/tonne Flin Flon Snow Lake 2,000, ,000 83% 95% 93% - 69% - $11-13 $ Metal reported in concentrate is prior to refining loses or deductions associated with smelter terms. 2 Gold Equivalent production includes gold and silver production. Silver converted to gold equivalent at 60:1 ratio. 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 GAAP, refer to the Non-GAAP Detailed Operating Expenses table in HudBay s MD&A for the nine months ended September 30, Costs in any particular quarter can vary from the annual guidance above based on a variety of factors including the scheduling of maintenance events and seasonal heating requirements. 33

34 2011 Operating Guidance Zinc Plant Flin Flon Zinc Plant 2011 Guidance Zinc concentrate treated Domestic tonnes 155,000 Purchased tonnes 65,000 Total tonnes 220,000 Recovery Zinc Produced Unit Operating Costs 1 % 97% tonnes 115,000 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 GAAP, refer to the Non-GAAP Detailed Operating Expenses table in HudBay s MD&A for the nine months ended September 30, Costs in any particular quarter can vary from the annual guidance above based on a variety of factors including the scheduling of maintenance events and seasonal heating requirements. 34

35 2011 Capital Expenditures ~3/4 of Capex allocated to growth initiatives in 2011 Well positioned to fund growth investments (figures in C$ millions) Growth 2010 Guidance 2011 Guidance Lalor $65 $140 Constancia North - 8 Fenix - 13 Back Forty 14 - Total Growth Capital Preparation for sale of concentrate Sustaining Total Capital Expenditures $208 $373 35

36 2011 Exploration Expenditures Total (C$ millions) Meters Drilled Constancia 9 25,000 Flin Flon Greenstone Belt Reed Copper Project & Cold/Lost 2 Grassroots Exploration (including Lalor) 27 Other Total FFGB 4 33 Other Opportunities Fenix (excluding project development) 5 Back Forty (including project development) 16 Yukon 2 Chile 2 Other Total Other Opportunities ,000 80,000 20, ,000 16,000 25,000 5,000 5,000 5,000 56, Total Exploration Expenditures $68 190,000

37 Lalor Project Guidance CAPEX for new concentrator (including paste backfill plant) estimated at $264 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; $122 million incurred to June 30, $140 million 2012 $190 million 2013 $185 million 2014 $130 million 37

38 Lalor Mineralization Tonnes (millions) Au (g/t) Ag (g/t) Cu (%) Zn (%) 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

39 Lalor Project Down plunge exploration potential 39

40 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 40 Close to roads, major power lines, a rail line and port

41 Constancia NI 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 , , Probable , , Total , , Source: NI technical report titled, Constancia Project Technical Report, dated February 21,

42 Peru Tax and Royalties Royalties: Staged Peruvian mining royalty based on NSR 1% NSR when NSR < US$60 million per annum 2% NSR when US$60 < NSR < US$120 million per annum 3% NSR when NSR > US$120 million per annum 0.5% NSR Minera Livitaca and Katanga (capped at US$10 million) Labour participation = 8% of pre-tax profits 30% corporate income tax rate Deductible expenses for corporate income tax: Peruvian mining royalty 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 Source: Norsemont s NI technical report titled Constancia Copper Project Definitive Feasibility Study, dated September 28,

43 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. 43

44 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 MacTung Tom & Jason Properties In-situ Resource Value Class MT Au (g/t) Ag (g/t) Zn (%) Pb (%) Cu (%) $/t Faro Ross River Canol Road ~ 200km Wolverine Whitehorse Selwyn NORTHWEST TERRITORIES Tom & Jason Selwyn Wolverine M&I $238 Inf $211 M&I $141 Inf $118 2P $447 Inf $ Metal price: Au $900/oz, Ag $15/oz, Zn $0.95/lbs, Cu $2.50/lbs, and Pb $0.70/lbs

45 South America Property Acquisition Focus on Chile, Peru and Columbia Compilation of geological 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 Ocean CHANARAL HUASCO VALLENAR LA SERENA COQUIMBO EL SALVADOR Cu COPIAPO CANDELARIA Cu DOS AMIGOS Cu SAN ANTONIO LOMA NEGRA EL SALVADOR MANTOS VERDES Cu Argentina 45

46 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 deposits MacDonald Mines Ring of Fire Northern Ontario VMS and magmatic sulphide deposits, new camp, exploration upside Polar Star Montezuma Atacama, Chile Copper porphyry, extensive land package, exploration upside Waymar Resources Anzá Colombia VMS mineralization Yes Optionor Halo Resources Cold, Lost Manitoba VMS, potential near-term zinc production, exploration upside Yes Yes Yes Yes Yes 46

47 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% 47 LALOR Proven Probable 10,525, % 8.31% Total 10,525, % 8.31% 1 Estimated mineral reserves exlcude 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.

48 Other Mineral Resources Grade Contained t Cu (%) Zn (%) Ag (g/t) Au (g/t) Cu (mlb) Zn (mlb) Ag (koz) Au (koz) REED LAKE 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,

49 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 HBMS as Superintendent, Mines Technical Services and who is a Qualified Person as defined by NI

50 Reserves and Resources Cashel Meagher, P.Geo., Vice President, Exploration, of HudBay Minerals Inc. is the Qualified Person accountable for the supervision of the technical information contained within this presentation as defined by NI with respect to the Fenix project. 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. Cashel Meagher P.Geo, VP Exploration for 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. 50

51 HBM For more information contact: John Vincic, VP of Investor Relations and Corporate Communications Tel: v.29 hudbayminerals.com