21st Annual BMO Capital Markets Global Metals & Mining Conference
1. HBM
21st Annual BMO Capital Markets
Global Metals & Mining Conference
February 26 - 29, 2012
Creating Sustainable Value through
High Quality Long Life Deposits
2. Forward Looking Information
This presentation contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes but is not limited to
information concerning the company’s ability to develop its Lalor project, capital and operating cost assumptions, anticipated production numbers, the ability to
meet production forecasts, the potential impact of changing economic conditions on Hudbay’s financial results and the company’s strategies and future prospects.
Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects", or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", “understands” or "does not anticipate", or "believes" or variations of such words and
phrases or statements that certain actions, events or results “will”, "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking
information is based on the views, opinions, intentions and estimates of management at the date the information is made, and is based on a number of
assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated
or projected in the forward-looking information (including the actions of other parties who have agreed to do certain things and the approval of certain regulatory
bodies).
Many of these assumptions are based on factors and events that are not within the control of Hudbay and there is no assurance they will prove to be correct.
Factors that could cause actual results or events to vary materially from results or events anticipated by such forward-looking information include the ability to
develop and operate the Lalor project on an economic basis and in accordance with anticipated timelines, geological and technical conditions, risks associated
with the mining industry such as economic factors (including costs of construction materials, future commodity prices, currency fluctuations and energy prices),
failure of plant, equipment, processes and transportation services to operate as anticipated, including new and upgraded faci lities at Lalor, dependence on key
personnel, employee relations and availability of equipment and skilled personnel, environmental risks, government regulation, actual results of current exploration
activities, possible variations in ore grade, dilution or recovery rates, permitting timelines, capital expenditures, reclamation activities, land titles, and social and
political developments and other risks of the mining industry, as well as those risk factors discussed in the company’s Annual Information Form dated March 31,
2010, which risks may cause actual results to differ materially from any forward-looking statement.
Although Hudbay has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-
looking information, there may be other factors that cause actions, events or results not to be anticipated, estimated or intended. There can be no assurance that
forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Hudbay
undertakes no obligation to update forward-looking information if circumstances or 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 43-101.
Note to U.S. Investors
Information concerning the mineral properties of the Company has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects
from the requirements of SEC Industry Guide 7. Under SEC Industry Guide 7, mineralization may not be classified as a “reserve” unless the determination has been made that the
mineralization could be economically and legally produced or extracted at the time of the reserve determination, and the SEC does not recognize the reporting of mineral deposits
which do not meet the SEC Industry Guide 7 definition of “Reserve”. In accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) of
the Canadian Securities Administrators, the terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”,
“indicated mineral resource” and “inferred mineral resource” are defined in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Definition Standards for Mineral
Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms “mineral resource”, “measured mineral resource”, “indicated mineral
resource” and “inferred mineral resource” are recognized and required by NI 43-101, the SEC does not recognize them. You are cautioned that, except for that portion of mineral
resources classified as mineral reserves, mineral resources do not have demonstrated economic value. Inferred mineral resources have a high degree of uncertainty as to their
existence and as to whether they can be economically or legally mined. Under Canadian securities laws, estimates of inferred mineral resources may not form the basis of an
economic analysis. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Therefore, you are cautioned not to assume
that all or any part of an inferred mineral resource exists, that it can be economically or legally mined, or that it will ever be upgraded to a higher category. Likewise, you are
cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded into mineral reserves. You are urged to consider closely the
disclosure on the technical terms in Schedule A “Glossary of Mining Terms” of our AIF for the fiscal year ended December 31, 2010, available on SEDAR at www.sedar.com and
incorporated by reference as Exhibit 99.1 in our Form 40-F filed on March 31, 2011 (File No. 001- 34244).
3
4. Investment Highlights
Transformation to mid-tier leader underway with development of
long-life, low cost mines
Growth in Copper, Gold and Zinc Production
1 with Exploration Upside
Consistent Performance from
2 Reliable Operations
3 Executing Disciplined and Clear Growth Strategy
4 Strong Financial Position
5 Experienced Management and Operating Team
4
6. Steady Production with Low Cash Costs
Consistent track record of meeting production targets
Nine Months Ended
Sept 30 GUIDANCE(1) GUIDANCE(1)
2011 2011 2012
Copper 1 tonnes 40,490 40-55,000 35-40,000
Zinc 1 tonnes 54,246 70-90,000 70-85,000
Precious Metals (1,2) troy oz. 82,456 95-120,000 85-105,000
Co-Product Cash Costs (3)
Gold US$/oz $346
Copper US$/lb $1.40
Zinc US$/lb $0.98
(1) Metal reported in concentrate prior to refining losses or deductions associated with smelter terms (2) Silver production
converted to gold at the average gold and silver realized sales prices during each respective quarter. (3) Cash costs are
considered non-IFRS measures. See "Non-IFRS Measures" in our Management's Discussion and Analysis for the quarter
6 ending September 30, 2011.
7. Leading Production Growth
Further copper growth expected from optimized Constancia mine plan
255% GROWTH 135% GROWTH 65% GROWTH
Cu Production Precious Metals Production(1) Zn Production
(kt) (koz) (kt)
HudBay - Current Ops (2) Lalor (3) Constancia (4) Reed (5)
(1) Silver converted to gold at a ratio of 50:1. (2) Based on midpoint of 2012 forecasted production released on December 19, 2011.
Anticipated production for 2016 is based on 777 and the 777 North expansion. (3) Lalor’s anticipated 2016 gold equivalent production
7 includes production from inferred resources and the conceptual gold zone. (4) Based on contained metal in concentrate per NI 43-101
technical report titled, “Constancia Project Technical Report”, dated February 21, 2011. (5) Reflects 70% attributable production to HudBay.
8. Delivering Leverage Through Reserve Growth
Pending 2012 resource update expected to show more growth
(000 tonnes Cu equivalent) (Cu equivalent lbs per share)
1550 19.8
713 9.1
18.4
1286
3071 39.2
1121 16.1
791 11.3
(1,3) (2,3)
Proven & Probable Measured & Indicated Inferred
(1) HudBay reserves and resources as of January 1, 2010, excluding Fenix. Measured and Indicated Resources do not include any
Proven and Probable Reserves. (2) HudBay reserves and resources as of March 31, 2011 excluding Fenix. Measured and Indicated
Resources do not include any Proven and Probable Reserves. (3) In-situ value calculated using commodity prices of US$900/oz Au,
8 US$0.95/lb Zn, US$2.50/lb Cu and US$12.00/lb Mo; silver converted to gold at ratio of 60:1
9. Flin Flon Greenstone Belt
Infrastructure and exploration still delivering opportunities
Snow Lake
Ore Concentrator
Lalor Snow
Project Lake
777 Mine Flin Flon
Flin Flon
Ore Concentrator
Reed
Zinc plant Lake
Hwy
Amisk #39
Lake
Reed Copper
Project
N
Hwy
#10
25 km
9
10. 777 Mine
Low cost producer with track record of reserve replacement
Ownership 100%
Life of Mine 9 years
Annual Sustaining $22 million
CAPEX1
Annual Ore 1.55 million
Production
(tonnes)2
Mining $38-$42
Costs/tonne
ore2
Milling $12-$15
Costs/tonne ore2
2012 Production Forecast3
Cu tonnes 33,200
Zn tonnes 56,800
Precious Metals oz 83,400
(1) 12 months ended December 31, 2010.
(2) 2012 forecast.
10 (3) Contained metal in concentrate, 2012 forecast.
11. 777 Mine
Underground exploration potential continues to be tested
530m level
840m level
Metres
0 100 200 300
Mined areas 1412m level
Resources to be mined
Exploration Target Areas
11
12. Lalor
Initial production expected by mid-2012
Ownership 100%
Projected Life of Mine 20 years
Construction CAPEX $704 million
(2010-2014)
Annual Sustaining $22 million
CAPEX
2012 Ore
86,000
Production (tonnes)(1)
Full Daily Ore
Production Rate (tonnes)(2) 4,500
LOM Mining Costs/tonne ore $36
LOM Milling Costs/tonne ore
$16
(1) 2012 Forecast. Revenues and costs from Lalor operations prior to commencement of commercial
production will be capitalized. (2) Subject to receipt of required permits
12
13. Lalor
Underground drilling has begun
Surface
0m
500m
Vent Raise Production Shaft
750m H1/2012 H2/2012 2013 - 2014 2015
Exploration Platform
1000m
1250m
Base Metal Resource
Gold Inferred Resource
Gold Potential Mineral
High Grade Intercepts Outside Looking N70oW 250m
Known Resource 0m
1500m
13
14. Reed Copper Project
Initial production expected by late 2013; Construction underway
Ownership(1) 70%
Projected Life of Mine 5 years
Annual Sustaining CAPEX $11 million
Construction CAPEX $71 million
(2012-2013)
Approximate daily ore 1,300
production (tonnes)(2)
Mining Costs/tonne ore $67
Milling Costs/tonne ore $16
(1) Hudbay has a 70% interest in the Reed copper project pursuant to a joint venture
with VMS Ventures.
(2) Subject to receipt of required permits. All project costs reflect current estimates
14
15. Constancia Project - Strategic Location
Creating new mining district within an established region
ESTABLISHED MINING DISTRICT
Cusco
Xstrata - Las Bambas
First Quantum - Haquira
Trujillo
CUSCO DEPT.
Pan Pacific - Quechua
Lima
Cusco AREQUIPA DEPT.
Constancia Xstrata - Antapaccay
Tintaya Mine
Arequipa
Main Powerlines Southern Peru Copper Belt
Xstrata - Las Bambas Proposed Mineral Pipeline Rail Road to Matarani
Roads
15
16. Constancia(1)
Project update expected in late Q1 2012
Ownership 100%
Life of Mine 15 years
Avg. Annual Cu Prod. 85,000
(tonnes)
Concentrator Capacity 70,000 tpd
By-Products Mo, Ag, Au
(1) Based on NI 43-101 technical report titled, “Constancia Project Technical Report”,
dated February 21, 2011 available under Norsemont’s profile at www.sedar.com.
16
17. Constancia Exploration Program
Drilling confirms continuity of copper mineralization
North 2012 Drill
Targets
• Initial Pampacancha
resource expected by
end of Q1 2012
Constancia Main
• 22,000 hectare land
position
Pampacancha
Skarn Target
Cu-Au Sulphides
• Initial drill targets for
Chilloroya Skarn Target 2012 identified using
High Grade Gold Target
geophysics
• Chilloroya South drilling
Chilloroya Porphyry Target
Cu-Au Sulphides to commence in Spring,
0 1 km results later in 2012
17
18. Continued Aggressive Exploration
Historic Discovery Cost of 6.4 cents per Cu Equivalent Pound(1)
TOTAL INVESTMENT IN 2012 EXPLORATION $54 Million
Manitoba $31 Million
Exploring near active and historical mining
areas and grassroots projects
South America $13 million
Targets in Chile, Colombia and Peru
North America $10 Million
Back Forty and Tom and Jason preliminary
economic assessments expected in 2012
130,000 METRES OF DRILLING EXPECTED
(1) Based on total 1990-2011 Manitoba/Saskatchewan surface exploration costs expressed in 2011$, divided by
contained metal value of mined or to be mined deposits discovered since 1990 (777, Konuto, Photo Lake and Lalor)
converted to copper equivalent using expected long-term prices.
18
19. Solid Financial Position
Available liquidity of $1.1 billion with no debt
Available Liquidity(1) $1.1 billion
Long Term Debt 0
Shares Outstanding 171.9 million
Annualized Dividend Yield(2) 1.7%
ADDITIONAL DEBT FINANCING CAN MAXIMIZE
FINANCIAL FLEXIBILITY
(1) Includes cash of $900 million and undrawn credit lines of more than $200 million.
(2) As at market close on February 15, 2012
19
20. Expertise in 4 Stages of Mining Cycle
EXPLORATION DEVELOPMENT
Discovered
Mines in
Mines in Years Development
PRODUCTION RECLAMATION
is a Consistent Low Successfully
Cost Producer Reclaimed Mines
20
21. Pipeline of Early Stage Opportunities
Best “farm system” amongst mid-tier producers
• Minority equity positions in 17 exploration and development opportunities
• Current value approximately $100 million
OPPORTUNITY LOCATION STRATEGIC CONSIDERATION
Augusta Resources Arizona Advanced stage copper porphyry
Copper Reef Mining Manitoba VMS, proximity to existing infrastructure
CuOro Resources Colombia Porphyry and massive sulphide polymetallic
deposits
MacDonald Mines Northern Ontario VMS and magmatic sulphide deposits, new
camp, exploration upside
Panoro Minerals Peru Copper porphyry, exploration upside, proximity to
Constancia
Northern Shield Northern Ontario VMS, copper, zinc and silver mineralization
Waymar Resources Colombia VMS mineralization
21
22. Stringent Criteria for Growth
Disciplined focus on per share metrics
GEOGRAPHY Focus on Americas, mining favourable jurisdictions
GEOLOGY VMS or porphyry deposits with exploration upside
FINANCIAL Transaction size of no more than 20% of market capitalization
OPERATIONAL Add value through technical expertise and financial capacity
ACCRETION Accretive to in-situ metal value and net asset value per share
22
23. Investment Highlights
Transformation to mid-tier leader underway with development of
long-life, low cost mines
Growth in Copper, Gold and Zinc Production
1 with Exploration Upside
Consistent Performance from
2 Reliable Operations
3 Executing Disciplined and Clear Growth Strategy
4 Strong Financial Position
5 Experienced Management and Operating Team
23
25. Appendix Contents
• Cost Curves
• 2012 Operating Guidance, Capital Expenditures
and Exploration Spending Breakdown
• Lalor Guidance, Mineralization and Plan Views
• Constancia Project
• Back Forty Deposit
• Tom & Jason Deposit
• South America Property
• Early Stage Investments
• Reserves & Resources (General and per project)
25
26. Gold Cost Curve
777 Mine 1
Lalor 1
Source: Brook Hunt (2011 cost curve) and HudBay estimates (777 Mine and Lalor)
(1) Co-product cash costs calculated using Brook Hunt’s co-product costing methodology which is materially
different from the co-product costs reported by HudBay in its public disclosure.
26
27. Copper Cost Curve
777 Mine 1
Reed 4
Lalor 2
Constancia (LOM) 3
Source: Brook Hunt (777 Mine and 2011 cost curve) and HudBay estimates (Lalor, Reed)
(1) Brook Hunt co-product cash costs. (2) Co-product cash costs calculated using Brook Hunt’s co-product costing
methodology which is materially different from the co-product costs reported by HudBay in its public disclosure. (3) Based on
27NI 43-101 technical report titled, “Constancia Project Technical Report”, dated February 21, 2011. (4)Based on Reed AFE.
28. Zinc Cost Curve
777 Mine 1
Lalor 2
Source: Brook Hunt (777 Mine and 2011 cost curve) and HudBay estimates (Lalor, Reed)
(1) Brook Hunt co-product cash costs. (2)Co-product cash costs calculated using Brook Hunt’s co-product costing
methodology which is materially different from the co-product costs reported by HudBay in its public disclosure.
28
29. 2012 Operating Guidance
Contained Metal in Domestic Concentrate
Copper tonnes 35,000 - 40,000
Zinc tonnes 70,000 - 85,000
Precious Metals 2 ounces 95,000 - 120,000
777 Trout Lake Chisel North Lalor1
Ore Mined tonnes 1,553,000 230,000 165,000 86,000
Grades
Copper % 2.3 1.8 0.72 0.4
Zinc % 4.3 2.3 5.0 10.1
Gold g/tonne 1.9 1.5 - 1.1
Silver g/tonne 28.0 7.1 - 16.9
Unit Operating Costs 3 C$/tonne $38 - 42 $60-74 $93-114
Flin Flon Snow Lake
Ore Milled tonnes 1,840,000 190,000
Recoveries
Zinc % 93 80
Copper % 85 95
Gold % 70 65
Unit Operating Costs C$/tonne $12 - 15 $32 - 37
(1) Revenues and costs from Lalor operations prior to commencement of commercial production will be capitalized. (2) The 165,000 tonnes of forecast production from the
Chisel North mine is anticipated to consist of 108,000 tonnes of zinc ore at 7.1% zinc to be processed at HudBay's Snow Lake concentrator, and 57,000 tonnes of
copper/gold ore to be processed at the Flin Flon concentrator. The expected grade for the copper/gold ore is 2.1 g/t Au, 20.6 g/t Ag, 1.6% Cu and 0.9% Zn.(3) Forecast
unit operating costs are calculated on the same basis as reported unit operating costs in HudBay’s quarterly and annual management’s discussion and analysis. For a
29reconciliation ofMD&A for the nine includedended Septembercosts2011. operating costs in accordance with IFRS, refer to the Non-IFRS detailed cost of sales table in
HudBay’s the costs that are months in unit operating 30, to total
30. 2012 Operating Guidance - Zinc Plant
GUIDANCE
Flin Flon Zinc Plant 2012
Zinc concentrate treated
Domestic tonnes 164,000
Purchased tonnes 56,000
TOTAL tonnes 220,000
Recovery % 97
Zinc Produced tonnes 113,000
Unit Operating Costs 1 C$/lb $0.32 - 0.37
(1) Forecast unit operating costs are calculated on the same basis as reported unit operating costs in HudBay’s quarterly and
annual management’s discussion and analysis. For a reconciliation of the costs that are included in unit operating costs to total
30 operating costs in accordance with IFRS, refer to the Non-IFRS detailed cost of sales table in HudBay’s MD&A for the nine
months ended September 30, 2011.
31. 2012 Capital Expenditures
• Committed to $296 million in capital expenditures to grow
production profile
GUIDANCE GUIDANCE
(figures in C$ millions) 2011 2012
Growth
Lalor 140 147
Constancia 45 107(1)
Back Forty - 2
Reed - 34
777 North 8 6
Total Growth Capital 193 296
Sustaining 101 95
TOTAL CAPITAL EXPENDITURES $294 $391
(1) Constancia CAPEX is for Q1 2012 only.
31
32. 2012 Exploration Expenditures
(figures in C$ millions) TOTAL
Manitoba 31
South America 13
Other North America 10
Total Exploration Expenditures 54
Manitoba Capitalized Spending (5)
TOTAL EXPLORATION EXPENSES $49
32
33. Lalor Project Guidance
• CAPEX for new concentrator
(including paste backfill plant)
estimated at $263 million 2011 - Q4 $40 million
• $120 million estimate in August
2010 for Snow Lake concentrator 2012 $153 million
refurbishment
• Incremental investment of $144 2013 $200 million
million brings total Lalor CAPEX
2014 $145 million
to $704 million
• Non-concentrator capital costs TOTAL $538 million
remain on budget; $166 million
incurred to September 30, 2011
33
34. Lalor Mineralization
Tonnes Au Ag Cu Zn
(millions) (g/t) (g/t) (%) (%)
Reserves
Proven - - - - -
Probable 10.5 1.55 21.0 0.64 8.31
Base Metal Zone Mineral Resource
Indicated 2.6 1.0 27.1 0.29 5.72
Inferred 4.8 1.3 26.2 0.58 9.25
Gold Zone Inferred Mineral Resource
Inferred 5.4 4.7 30.6 0.47 0.46
Potential Gold Zone Conceptual Estimate 5.1 - 6.1 4.3 - 5.1 23 - 27 0.2 - 0.4 0.2 - 0.4
Potential Copper-Gold Zone Conceptual Estimate 1.8 - 2.2 5.8 - 7.0 18 - 22 3.2 - 4.0 0.2 - 0.3
The Lalor gold zone and copper-gold zone potential mineral deposit estimates are conceptual in nature and to date there has been
insufficient exploration to define a mineral resource compliant with National Instrument 43-101. It is uncertain if further exploration will
result in the target deposit being delineated as a mineral resource. Additional detail may be found in HudBay’s press release dated
34 August 4, 2010, available at www.sedar.com.
35. Lalor
Project
Down plunge
exploration
potential
35
36. Benefits of Project Optimization 1
Optimized Lalor Lalor - Aug. 4, 2010
Construction CAPEX C$ 704M C$ 560M
Annual Sustaining
C$ 22M C $15M
CAPEX
Production Rate 4,500 tpd 3,500 tpd
Mining Costs $36 per tonne $56 per tonne
Milling Costs $16 per tonne $24 per tonne
95% Zn 95% Zn
86% Cu 90% Cu
Metallurgy
66% Au 80% Au
60% Ag 75% Ag
DECISION TO CONSTRUCT A GOLD PLANT WILL BE MADE
BEFORE HIGHER GRADE GOLD MINERALIZATION IS MINED
(1) All cost projections reflect current estimates
36
37. Constancia NI 43-101 Mineral Reserves
GRADE CONTAINED
Mt Cu (%) Mo (g/t) Ag (g/t) Au (g/t) Cu (mlb) Mo (mlb) Ag (koz) Au (koz)
Reserves
Proven 195 0.42 117 3.49 0.04 1,806 50 21,880 251
Probable 177 0.37 92 3.66 0.05 1,444 36 20,828 285
Total 372 0.39 105 3.57 0.05 3,250 86 42,708 536
Source: NI 43-101 technical report titled, “Constancia Project Technical Report”, dated February 21, 2011
37
38. Updated Peru Tax and Royalty Scheme
• What has changed?
• Old royalty: 1% - 3% sliding scale royalty on sales (NSR) is being eliminated
• New royalty: 1% - 12% marginal rate sliding scale applied on operating profit (EBIT)
• Equivalent to: 0% - 7.1% effective rate, depending on operating profit margin; minimum royalty = 1% of sales
• New mining tax: 2% - 8.4% marginal rate sliding scale applied to operating profit (EBIT)
• Equivalent to: 0% - 5.4% effective rate, depending on operating profit margin (i.e. EBIT margin)
• What stays the same?
• 0.5% NSR Minera Livitaca and Katanga (capped at US$10 million)
• Labour participation = 8% of pre-tax profits
• 30% corporate income tax rate without a tax stability agreement
• Deductible expenses for corporate income tax:
• New royalty AND new mining tax
• Labour participation = 8% of pre-tax profits
• Tax depreciation
• Withholding/Dividend Tax:
• 4.1% applies to profits distributed to nonresidents
• Legal Stability Agreements
• Guaranteed stability of income tax regime for 15 years
38
39. Back Forty Project
Exploration drilling continuing on near deposit geophysical anomalies
• Permit application and economic
assessment are ongoing
OCT. 15, 2010 RESOURCE TABLE: • Engineering efforts focused on
Combined Open Pit & Underground optimal size and scope of project
Ownership 51% (65% 1 )
M&I Inferred
Tonnes (M) 17.9 3.4
Au (g/t) 1.57 1.29
Ag (g/t) 19.60 24.33
Cu (%) 0.19 0.44 TARGETING SECOND QUARTER OF 2012
Zn (%) 2.44 1.96 FOR PERMIT APPLICATION
(1) 65% on completing a feasibility study & submitting a mine permit application;
39 option to Aquila for 75% on free carry to development
40. The Back Forty Project -
Mineral Resources October 15, 2010*
Classification Tonnes (millions) Au (g/t) Ag (g/t) Cu (%) Zn (%)
Open Pit †
Measured 14.1 1.59 16.97 0.15 2.54
Indicated 2.1 1.53 32.80 0.41 1.17
Measured and 16.2 1.58 19.00 0.18 2.36
Indicated
Inferred 1.4 1.40 32.89 0.62 1.00
Underground ‡
Measured 0.8 1.67 25.83 0.24 3.45
Indicated 0.9 1.28 24.72 0.34 2.85
Measured and 1.7 1.46 25.23 0.29 3.13
Indicated
Inferred 2.0 1.22 18.34 0.32 2.64
Combined Open Pit
and Underground
Measured and 17.9 1.57 19.60 0.19 2.44
Indicated
Inferred 3.4 1.29 24.33 0.44 1.96
*Mineral resources are not mineral reserves and do not have demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. The cut-off
grades are based on metal price assumptions of US$0.95 per pound zinc, US$2.50 per pound copper, US$0.70 per pound lead, US$900 per troy ounce gold and US$15.00 per troy ounce
silver. Metallurgical recoveries were determined and used for each of the metallurgical domains determined for the deposit
†
Cut off grades were determined for each of the metallurgical domains based on NSR values. Average cut-off grade for the open pit
resource contained within an optimized pit shell was US$20. See “Mineral Resource Estimate Disclosure.”
‡
40 Cut off grades were determined for each of the metallurgical domains based on NSR values. Average cut-off grade for the
underground resources outside of the optimized pit shell was US$62. See “Mineral Resource Estimate Disclosure.”
41. Yukon: Tom & Jason
Preliminary economic assessment in early 2012
• 2011 Exploration program
TOM & JASON OVERVIEW complete
Ownership 100% • Awaiting assay and metallurgical
Life of Mine 7-18 years sampling results
Production Rate TPD 2000-5000
Environmental Permitting 5-8 years • Deposits are relatively shallow
from surface to 600m depth
2007 Resources1
• Can be accessed via ramp
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
41 $0.35/lbs. (2) Metal price assumption: Ag $15/oz, Zn $0.95/lbs, and Pb $0.70/lbs
42. Tom and Jason
5,000 metre drill program to upgrade resource
• 100% owned, located in the Selwyn Basin
• Deposits are relatively shallow from surface
to 600m depth
• Can be accessed via ramp
YUKON
TERRITORY Tom & Jason
Properties
MacTung
NORTHWEST
TERRITORIES
Faro
Selwyn
Ross River
Wolverine
Whitehorse
42
43. South America - Property Acquisition
• Focus on Chile, EL SALVADOR Cu
EL SALVADOR
CHANARAL
Peru and Colombia MANTOS VERDES Cu
• Compilation of COPIAPO
geological data at CHILE
CANDELARIA Cu
San Antonio
HUASCO VALLENAR
• Regional Antofagasta DOS AMIGOS Cu
SAN ANTONIO
Exploration office Copiapo
opened in Santiago La Serena SAN ANTONIO
LA SERENA
• Evaluation of early SANTIAGO
COQUIMBO
Argentina
stage exploration LOMA NEGRA
opportunities
underway
43
44. Estimated Mineral Reserves1
January 1, 2011
Mine Tonnes Au (g/t) Ag (g/t) Cu (%) Zn (%)
777
4,516,000 2.27 29.38 2.87% 4.44%
Proven
8,307,000 1.79 27.31 1.78% 4.24%
Probable
12,823,000 1.96 28.04 2.16% 4.31%
TOTAL
777 NORTH
Proven 81,000 1.61 26.52 0.68% 4.89%
449,000 1.44 21.48 1.09% 3.31%
Probable
530,000 1.47 22.25 1.03% 3.55%
TOTAL
TROUT LAKE
409,000 2.06 9.66 2.10% 3.53%
Proven
36,000 1.17 1.01 2.18% 1.43%
Probable
445,000 1.99 8.96 2.11% 3.36%
TOTAL
CHISEL NORTH -ZINC
Proven 164,000 - - - 8.77%
Probable 56,000 - - - 10.60%
TOTAL 220,000 - - - 9.24%
CHISEL NORTH -COPPER
Proven - - - - -
Probable 92,000 2.41 31.56 1.72% 3.67%
TOTAL 92,000 2.41 31.56 1.72% 3.67%
LALOR
- - - - -
Proven
10,525,000 1.55 21.00 0.64% 8.31%
Probable
10,525,000 1.55 21.00 0.64% 8.31%
TOTAL
1Estimated mineral reserves exclude the Fenix project. Please refer to HudBay’s Annual Information Form and Management’s Discussion and
Analysis for the year ended December 31, 2010 and applicable technical reports in respect of the properties filed on SEDAR for further information.
44
45. Other Mineral Resources
GRADE CONTAINED
t Cu (%) Zn (%) Ag (g/t) Au (g/t) Cu (mlb) Zn (mlb) Ag (koz) Au (koz)
REED
Measured - - - - - - - - -
Indicated 2,550,000 4.52 0.91 7.86 0.64 254.1 51.2 644.4 52.5
M+I 2,550,000 4.52 0.91 7.86 0.64 254.1 51.2 644.4 52.5
Inferred 170,000 4.26 0.52 4.55 0.38 16.0 1.9 24.9 2.1
LOST PROJECT
Measured - - - - - - - - -
Indicated 411,000 1.8 6.1 20.0 1.0 16.3 55.3 264.3 13.2
M+I 411,000 1.8 6.1 20.0 1.0 16.3 55.3 264.3 13.2
Inferred 69,000 1.5 6.2 16.5 0.8 2.3 9.4 36.6 1.8
Source: HudBay Minerals Inc. news release entitled, “HudBay Minerals Announces Near Quadrupling of Metals Reserves;
US$116 Million 2011Pre-Construction Program for Constancia,” March 31, 2011
45
46. 777 Mine
Reserves and Resources 1 2012 Prod. Forecast
Proven Probable
Tonnes (M) 4.5 8.3 1.55
Au (g/t) 2.27 1.79 1.9
Ag (g/t) 29.38 27.31 28.0
Cu (%) 2.87 1.78 2.3
Zn (%) 4.44 4.24 4.3
(1) Estimated Mineral Reserves and Resources - January 1, 2011
46
47. Lalor
Base Metal Zone Gold Zone
Probable 2 Indicated3 Inferred3 Inferred3
Tonnes (M) 10.5 2.6 4.8 5.4
Au (g/t) 1.6 1.0 1.3 4.7
Ag (g/t) 21.0 27.1 26.2 30.6
Cu (%) 0.64 0.29 0.58 0.47
Zn (%) 8.31 5.72 9.25 0.46
Conceptual Estimate1,3
Au Zone Cu/Au Zone
Tonnes (M) 5.1 - 6.1 1.8 - 2.2
Au (g/t) 4.3 - 5.1 5.8 - 7.0
Ag (g/t) 23 - 27 18 - 22
Cu (%) 0.2 - 0.4 3.2 - 4.0
Zn (%) 0.2 - 0.4 0.2 - 0.3
(1) The potential quantity and grade are conceptual in nature. There has been insufficient exploration to define a mineral
resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. (2) As at
47 January 1, 2011. (3) As at May 1, 2010
48. Constancia
Reserves
Proven Probable
Tonnes (M) 195.0 177.0
Au (g/t) 0.42 0.37
Ag (g/t) 117 92
Cu (%) 3.49 3.66
Zn (%) 0.04 0.05
(1) Based on NI 43-101 technical report titled, “Constancia Project Technical Report”,
dated February 21, 2011 available under Norsemont’s profile at www.sedar.com.
48
49. Reed Copper Project
Resources
2011 Resources
Indicated Inferred
Tonnes (M) 2.55 0.17
Au (g/t) 4.52 4.26
Ag (g/t) 0.91 0.52
Cu (%) 7.86 4.55
Zn (%) 0.64 0.38
49
50. Reserves and Resources
• To estimate mineral reserves, measured and indicated mineral resources were first estimated by
a 12-step process, which includes determination of the integrity and validation of the data
collected, including confirmation of specific gravity, assay results and methods of data recording.
The process also includes determining the appropriate geological model, selection of data and
the application of statistical models including probability plots and restrictive kriging to establish
continuity and model validation. The resultant estimates of measured and indicated mineral
resources are then converted to proven and probable mineral reserves by the application of
mining dilution and recovery, as well as the determination of economic viability on a fully costed
basis using historical operating costs. Other factors such as depletion from production are
applied as appropriate. Long term metal prices, excluding premiums, used to determine
economic viability of the 2010 mineral reserves were US $900 oz. gold, US $15.00 oz. silver,
US $2.50 lb. copper and US $0.95 lb. zinc.
• The 2011 estimated mineral reserves were prepared under the supervision of Robert Carter,
P.Eng., who is employed by HudBay Minerals Inc. as Manager, Project Evaluation and who is a
Qualified Person as defined by NI 43-101.
50
51. Reserves and Resources
• Robert Carter, P.Eng., Manager, Project Evaluation of HudBay Minerals Inc. is the
Qualified Person accountable for the supervision of the technical information contained within
this presentation as defined by NI 43-101
• Greg Greenough, P.Geo., a Senior Resource Geologist with Golder Associates carried
out, and is responsible for the Back Forty resource estimate described in this presentation.
Robert Carter P.Eng, Manager, Project Evaluation of HudBay Minerals Inc. is the Qualified
Person for HudBay as described in NI 43-101 and is responsible for the Back Forty contents
of this presentation.
• Please refer to HudBay’s Annual Information Form and Management’s Discussion and
Analysis for the year ended December 31, 2010 and applicable technical reports in respect
of the properties filed on SEDAR for further information.
51
52. HBM
For more information contact:
John Vincic, VP of Investor Relations and Corporate Communications
Tel: 416.362.0615
Email: john.vincic@hudbayminerals.com
