Hudbay Minerals Inc. (“Hudbay” or the “company”)
(TSX, NYSE: HBM) today announced that it
has filed updated National Instrument 43-101 (“NI 43-101”)
technical reports in respect of its 100% owned Constancia copper
mine in Peru and its 100% owned Lalor and Snow Lake gold-zinc
mining and milling operations in Manitoba. The company also
released its annual mineral reserve and resource update and issued
new three-year production guidance. All dollar amounts are in US
dollars, unless otherwise noted.
“We are excited to publish these updated mine
plans, which solidify our copper and gold production growth over
the next several years,” said Peter Kukielski, Hudbay’s President
and Chief Executive Officer. “Our project execution, operational
optimization and exploration efforts over the past year have been
successful in setting up the business for this next phase of
growth, which sees Constancia’s annual copper production above
100,000 tonnes for the next eight years and Snow Lake’s annual gold
production over 180,000 ounces once New Britannia is fully
operational. We also continue to maintain our low-cost profile as
demonstrated by the cash costs in our updated mine plans. Hudbay
has a proven track record of delivering value through exploration,
mine development and successful operations, and we look forward to
continuing to create value through leveraging our core
competencies.”
Constancia Mine
The company has released an updated mine plan
for its Constancia operations that reflects an increase in copper
and gold production from 2022 to 2025 as the higher grades from the
Pampacancha deposit enter the mine plan. The updated mine plan
incorporates higher-grade reserves including the Constancia North
pit extension (please refer to Figure 1 for a view of the extended
Constancia pit). With the incorporation of Pampacancha and
Constancia North, annual production at Constancia is expected to
average approximately 102,000 tonnes of copper and 58,000 ounces of
gold over the next eight years, an increase of 40% and 367%,
respectively, from 2020 levels, which were partially impacted by an
eight-week temporary mine interruption related to a
government-declared state of emergency. Constancia’s total copper
and gold production increases by 12% and 9%, respectively, compared
to the same period in the company’s previous NI 43-101 technical
report dated March 26, 2018iii.
Constancia maintains its low-cost profile with
average cash cost and sustaining cash cost of $1.18 and $1.71,
respectively, per pound of copper produced, net of by-product
credits, over the next eight years. The total sustaining capital
reflects the additional tonnes incorporated into the mine plan,
modifications to mine sequence, optimizing material rehandling
activities, updated cost environment and further capital
investments in the tailings facility to continue to maintain high
industry tailings standards. Growth project capital includes
remaining Pampacancha development expenditures in 2021 (excluding
any remaining land-user agreement costs), the capital costs
associated with the implementation of a recovery optimization
program scheduled for 2023, the installation of a pebble crusher
expected to be in operation by 2024, and the development of a water
reservoir in 2025 as part of the company’s water management
efforts.
Limited pre-development activities continue on
site at Pampacancha to ensure pre-stripping activities can begin
immediately after an agreement with the remaining land user family
is completed. Hudbay has made significant progress with the
remaining land user family and expects to reach an agreement in the
coming weeks. First production from Pampacancha continues to be
expected in the second quarter of 2021.
In March 2021, Constancia received a upgraded
score of “AA” across all the tailings management indicators in the
Mining Association of Canada’s Towards Sustainable Mining (“TSM”)
program as per an annual self-assessment completed in 2020. This
rating was higher than Constancia’s “A” rating in 2019 and exceeded
the company’s target of maintaining a minimum of an “A” rating on
all five TSM tailings indicators.
Summary of Constancia Updated Mine Plan
A summary of key production and cost details
from the updated Constancia mine plan can be found below. For
further details, please refer to the section titled “Constancia
Updated Mine Plan Detailed Information” at the end of this news
release.
Constancia Operations |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2021-2028 Avg. |
2029-2037 Avg. |
LOM |
Contained Metal in Concentrate |
Cu Production |
tonnes(000s) |
80 |
108 |
117 |
128 |
91 |
95 |
91 |
106 |
102 |
68 |
1,431 |
Au Production |
ounces(000s) |
45 |
97 |
93 |
127 |
28 |
25 |
21 |
27 |
58 |
19 |
631 |
Ag Production |
ounces(000s) |
1,977 |
1,942 |
2,619 |
2,782 |
2,210 |
2,452 |
2,122 |
2,601 |
2,338 |
1,717 |
34,160 |
Mo Production |
tonnes(000s) |
1.3 |
1.4 |
2.5 |
1.6 |
1.9 |
1.3 |
1.6 |
1.6 |
1.6 |
1.0 |
22.1 |
Capital Expenditures |
Sustaining Capital1 |
$ millions |
$127 |
$66 |
$158 |
$81 |
$114 |
$66 |
$125 |
$66 |
$100 |
$50 |
$1,248 |
Growth Project Capital |
$ millions |
$4 |
- |
$30 |
- |
$17 |
- |
- |
- |
- |
- |
$51 |
Copper Cash Costs |
Cash Cost, net of by-product credits2 |
$/lb Cu |
$1.37 |
$0.97 |
$0.80 |
$0.74 |
$1.48 |
$1.47 |
$1.37 |
$1.27 |
$1.18 |
$1.71 |
$1.38 |
Sustaining Cash Cost, net of by-product credits2 |
$/lb Cu |
$2.30 |
$1.39 |
$1.44 |
$1.05 |
$2.08 |
$1.82 |
$2.03 |
$1.58 |
$1.71 |
$2.09 |
$1.83 |
Note: Totals may not add up correctly due to
rounding. “LOM” refers to life-of-mine total.1 After the impact of
capitalized stripping.2 By-product credits calculated using the
gold and silver deferred revenue drawdown rates for 2021 and the
following commodity prices: gold price of $1,800 per ounce for
2021, $1,700 per ounce for 2022, $1,650 per ounce for 2023, $1,600
per ounce for 2024 and $1,500 per ounce long-term; silver prices of
$25 per ounce for 2021, $23 per ounce for 2022, $20 per ounce for
2023, $19 per ounce for 2024 and $18 per ounce long-term;
molybdenum prices of $11 per pound for 2021 and $10 per pound for
2022 and long-term. Sustaining cash cost calculated on the same
basis as used in the company’s quarterly financial disclosures,
which incorporates all costs included in cash cost plus sustaining
capital expenditures, payments on capital leases, capitalized
exploration, royalties, cash payments on long-term community
agreements, and accretion and amortization of decommissioning
obligations. Cash cost and sustaining cash cost are non-IFRS
financial performance measures with no standardized definition
under IFRS. For further details on why Hudbay believes cash costs
are a useful performance indicator, please refer to the company's
most recent Management's Discussion and Analysis for the three and
twelve months ended December 31, 2020.
Constancia Mineral Reserves and Resources
Proven and probable reserves at Constancia
increased by 33 million tonnes at a grade of 0.48% copper and 0.115
grams per tonne gold, resulting in an increase of approximately 11%
in contained copper and 12% in contained gold over the prior year’s
reserves, after adjusting for mining depletion in 2020. This more
than replaces what was depleted from mining operations during the
year, resulting in the addition of one year to Constancia’s mine
life, which has been maintained at 17 years. The increase in
reserves was primarily as a result of the 2019 and 2020 drill
program at Constancia North, which intersected shallow porphyry and
skarn mineralization and contributed to an extension of the
Constancia reserve pit by approximately 300 metres to the north.
The increase in gold content was also partly due to the correction
of a low bias in the historical drillhole database at
Constancia.
Constancia North also contributed to an
improvement in the head grade of the Constancia mine mineral
resource estimates: measured and indicated copper grades increased
to 0.22% from 0.19% and inferred copper grades increased to 0.30%
from 0.18%. A significant portion of the Constancia North resource
estimate is classified as inferred due to wide drill spacing but
there remains the opportunity to upgrade these inferred resources
to a higher classification as the company completes infill
drilling. There also remains further opportunity to extend the
Constancia North resources by incorporating steeply dipping
high-grade skarn mineralization through a potential underground
operation and a scoping study is expected to be completed in 2021.
The mineralization remains open down plunge to the north.
Current mineral reserves and resources
(exclusive of reserves) for Constancia as of January 1, 2021 are
summarized below.
Constancia MineMineral Reserve and
Resource
Estimates1,2,3,4,5 |
Tonnes |
Cu Grade (%) |
Mo Grade (g/t) |
Au Grade (g/t) |
Ag Grade (g/t) |
Constancia Reserves |
|
|
Proven |
|
436,500,000 |
0.29 |
83 |
0.041 |
2.88 |
Probable |
|
56,100,000 |
0.25 |
69 |
0.045 |
3.09 |
Total Proven and Probable - Constancia |
|
492,600,000 |
0.29 |
82 |
0.042 |
2.90 |
Pampacancha Reserves |
|
|
Proven |
|
32,400,000 |
0.59 |
178 |
0.368 |
4.48 |
Probable |
|
7,500,000 |
0.62 |
173 |
0.325 |
5.75 |
Total Proven and Probable - Pampacancha |
|
39,900,000 |
0.60 |
177 |
0.360 |
4.72 |
Total Proven and Probable |
|
532,500,000 |
0.31 |
89 |
0.066 |
3.04 |
Constancia Resources |
|
|
Measured |
|
125,200,000 |
0.22 |
65 |
0.038 |
2.11 |
Indicated |
|
118,300,000 |
0.22 |
65 |
0.037 |
2.05 |
Inferred |
|
46,600,000 |
0.30 |
73 |
0.054 |
2.72 |
Pampacancha Resources |
|
|
Measured |
|
11,400,000 |
0.41 |
101 |
0.245 |
4.95 |
Indicated |
|
6,000,000 |
0.35 |
84 |
0.285 |
5.16 |
Inferred |
|
10,100,000 |
0.14 |
143 |
0.233 |
3.86 |
Total Measured and Indicated |
|
260,900,000 |
0.23 |
67 |
0.052 |
2.27 |
Total Inferred |
|
56,700,000 |
0.27 |
86 |
0.086 |
2.92 |
Note: totals may not add up correctly due to rounding.1 Mineral
resources are exclusive of mineral reserves and do not have
demonstrated economic viability. 2 Mineral resources in the above
tables do not include mining dilution or recovery factors.3 Metal
prices of $3.10 per pound copper, $11.00 per pound molybdenum,
$1,500 per ounce gold, and $18.00 per ounce silver were used to
estimate mineral reserves and resources.4 Mineral reserves and
resources are estimated using a minimum net smelter return (“NSR”)
cut-off of $6.14 per tonne and assuming metallurgical recoveries
(applied by ore type) of 85.8% on average for the life of mine.5
Mineral resources are based on resource pit designs containing
measured, indicated, and inferred mineral resources.
Peru Regional Exploration
The company continues to advance regional
exploration programs in Peru. In February 2021, drilling commenced
on the Quehuincha North high-grade skarn target located
approximately 10 kilometres from Constancia’s processing
facilities. Exploration agreement discussions with the community of
Uchucarcco on the Maria Reyna and Caballito properties are
progressing. Maria Reyna is a prospective copper skarn-porphyry
target and Caballito is a past-producing copper oxide mine, both of
which are located within 10 kilometers north of Constancia. Hudbay
also expects to commence drilling at its Llaguen property in the
second quarter of 2021, after receiving all required drill permits
in 2020. Llaguen is a copper porphyry target located in northern
Peru, near the city of Trujillo and in close proximity to existing
infrastructure.
For additional details on the Constancia mine,
please refer to the technical report titled “NI 43-101 Technical
Report, Constancia Mine, Cuzco, Peru”, effective January 1, 2021,
which was filed on March 29, 2021 under Hudbay’s profile on SEDAR
at www.sedar.com and will be filed on EDGAR at www.sec.gov.
Lalor Mine and Snow Lake
Operations
Snow Lake Gold Strategy History - Phases One and
Two
In 2019, Hudbay announced the results from the
first phase of its Snow Lake gold strategy, which repositioned
Lalor as a gold mine with precious metals contributing a majority
of the life-of-mine revenues. The first phase included a 65%
increase in Lalor’s gold reserves and was the first mine plan that
contemplated the processing of gold and copper-gold ore at the
company’s New Britannia mill. Several years of detailed work was
completed in advance of the phase one mine plan, including
significant drilling and test mining of the Lalor gold and
copper-gold zones, and trade-off studies on the various processing
solutions for the gold ore. The New Britannia mill was determined
to be the optimal processing solution for Lalor gold, as it
capitalizes on existing infrastructure and is expected to achieve
gold recoveries above 90%, compared to gold recoveries of
approximately 53% at the Stall mill at that time. The phase one
gold mine plan contemplated Lalor’s annual gold production more
than doubling from then current levels to approximately 140,000
ounces over the first five years once the New Britannia mill is
refurbished.
In March 2020, the company announced the second
phase of its Snow Lake gold strategy, focusing on extensive infill
and exploration drilling at Lalor and advancing engineering studies
on the regional deposits in Snow Lake. This resulted in a 35%
increase in total Snow Lake gold reserves to 2.2 million ounces and
extended the mine life of the Snow Lake operations to 2037 through
extending the Lalor mine life to 10 years and mining the gold-rich
WIM and 3 Zone deposits over the last eight years. Lalor’s
life-of-mine gold production increased by 41% and annual gold
production was contemplated to be greater than 150,000 ounces over
the first eight years after the New Britannia mill is
refurbished.
Advancing Phase Three of the Snow Lake Gold
Strategy
Over the past twelve months, Hudbay has advanced
the third phase of its Snow Lake gold strategy focusing on
expansion and further optimization of operations. This updated mine
plan contemplates an increase in annual gold production from Lalor
and the Snow Lake operations to over 180,000 ounces during the
first six years of New Britannia’s operation at industry-low cash
cost and sustaining cash cost, net of by-product credits, of $412
and $788 per ounce of gold, respectively. Mineral reserves
increased year-over-year, which resulted in no change to Snow
Lake’s mine life (to 2037) as the company accelerated future
reserves with a higher production rate at Lalor and Stall. This
enhanced mine plan incorporates the results from several
optimization initiatives, including:
- Early gold production at New
Britannia - In 2020, Hudbay identified the opportunity to install
modular copper flotation cells to achieve gold production earlier
than expected in 2021. As a result, ramp-up and first production at
the gold plant is now expected early in the third quarter of 2021,
ahead of the original schedule.
- Increased Lalor Mining Rate to
5,300 tonnes per day - In the fourth quarter of 2020, Hudbay
allocated additional mining resources from 777 to Lalor while the
777 shaft repairs were being completed. As a result, and in
combination with other technical and operational improvements,
Lalor’s mine output increased by an average of 650 tonnes per day
above the normal level during this period. After confirming the
additional mining capacity, Hudbay determined that an optimal
production rate for Lalor is 5,300 tonnes per day, matching the
milling capacity of Snow Lake once New Britannia is commissioned.
This higher rate is expected to begin after the 777 mine closes in
mid-2022 and compares to 4,500 tonnes per day in the previous mine
plan.
- Adding 1901 Deposit to the Mine
Plan - After releasing an upgraded resource estimate for the 1901
deposit in August 2020, Hudbay initiated engineering activities to
support a prefeasibility study. As part of this study, the company
developed a viable mine plan for the zinc-rich zones at the 1901
deposit to supplement production from Lalor and take advantage of
the future processing capacity at the Stall mill. This resulted in
the addition of 1.58 million tonnes of reserves at a grade of 7.9%
zinc. Production from the 1901 deposit is expected to commence in
2026 at a rate of approximately 1,000 tonnes per day. Please refer
to Figure 2 for a view of the mine design layout at 1901.
- Higher Throughput at Stall - Hudbay
has been pleased with the recent performance of the Stall mill,
which has achieved better than expected throughput rates. The
updated mine plan assumes Stall will achieve a throughput rate of
3,800 tonnes per day, compared to 3,500 tonnes per day in the
previous mine plan.
- Increased Copper and Precious Metal
Recoveries at Stall - In 2020, Hudbay completed a feasibility study
and a test program exploring various technological upgrades to the
flowsheet at the Stall mill. The total cost to implement these
upgrades is $19 million (C$24 million) and is expected to increase
Stall’s copper recoveries to between 91% and 95%, gold recoveries
to between 64% and 70%, and silver recoveries to between 65% and
74%, a significant increase from the assumed recoveries in the
previous mine plan of 84% copper, 53% gold and 53% silver. The
project is expected to commence in 2022 and be in operation by
early 2023.
These mine plan enhancements optimize the
processing capacity of the Snow Lake operations in a manner that
maximizes the net present value of the operations. As a result of
these initiatives, the production of gold, copper and silver are
expected to increase by 18%, 35% and 27%, respectively, from 2022
to 2027 compared to the previous mine plan.
Summary of Snow Lake Updated Mine Plan
A summary of key production and cost details
from the updated Snow Lake mine plan can be found below. For
further details, please refer to the section titled “Snow Lake
Updated Mine Plan Detailed Information” at the end of this news
release.
Snow Lake Operations1 |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2022-2027 Avg. |
2028-2037 Avg. |
LOM |
Contained Metal in Concentrate and Doré |
Au Production |
ounces (000s) |
115 |
160 |
190 |
191 |
208 |
184 |
162 |
182 |
54 |
1,753 |
Ag Production |
ounces (000s) |
824 |
946 |
1,134 |
1,150 |
1,188 |
1,182 |
1,298 |
1,150 |
340 |
11,120 |
Cu Production |
tonnes (000s) |
10 |
11 |
13 |
11 |
16 |
11 |
12 |
12 |
6 |
142 |
Zn Production |
tonnes (000s) |
61 |
51 |
46 |
46 |
35 |
46 |
57 |
47 |
20 |
541 |
Capital Expenditures2 |
Sustaining Capital |
$ millions |
$83 |
$96 |
$67 |
$62 |
$62 |
$66 |
$48 |
$67 |
$18 |
$664 |
Growth Project Capital |
$ millions |
$77 |
$19 |
- |
- |
- |
- |
- |
- |
- |
$96 |
Gold Cash Costs |
Cash Cost, net of by-product credits3 |
$/oz Au |
($275) |
$361 |
$434 |
$440 |
$393 |
$454 |
$382 |
$411 |
$647 |
$421 |
Sustaining Cash Cost, net of by-product credits3 |
$/oz Au |
$550 |
$1,027 |
$784 |
$766 |
$690 |
$812 |
$680 |
$793 |
$972 |
$812 |
Note: Totals may not add up correctly due to
rounding. “LOM” refers to life-of-mine total.1 Includes production
and costs for Lalor, 1901, WIM and 3 Zone. 2 Canadian dollar
capital expenditures converted to U.S. dollar capital expenditures
at a C$/US$ exchange rate of 1.27 in 2021, 1.28 in 2022, 1.29 in
2023 and 1.30 long-term.3 By-product credits calculated using the
following assumptions: zinc price of $1.20 per pound in 2021, $1.15
per pound in 2022, $1.10 per pound in 2023 and long-term; copper
price of $3.75 per pound in 2021, $3.30 per pound in 2022, $3.10
per pound in 2023 and long-term; silver price of $25.00 per ounce
in 2021, $23.00 per ounce in 2022, $20.00 per pounce in 2023,
$19.00 per ounce in 2024, and $18.00 per ounce long-term; C$/US$
exchange rate of 1.27 in 2021, 1.28 in 2022, 1.29 in 2023 and 1.30
for long-term. Sustaining cash cost incorporate all costs included
in cash costs calculation plus sustaining capital expenditures.
Cash cost and sustaining cash cost are non-IFRS financial
performance measures with no standardized definition under IFRS.
For further details on why Hudbay believes cash costs are a useful
performance indicator, please refer to the company's most recent
Management's Discussion and Analysis for the year ended December
31, 2020.
Snow Lake Mineral Reserves and Resources
Current mineral reserves and resources
(exclusive of reserves) for Lalor, 1901 and other Snow Lake
satellite deposits as of January 1, 2021 are summarized below.
Lalor Mine and 1901 DepositMineral Reserve
and Resource
Estimates1,2,3,4,5,6 |
Tonnes |
Zn Grade (%) |
Au Grade (g/t) |
Cu Grade (%) |
Ag Grade (g/t) |
Base Metal Zone Reserves |
|
|
Proven – Lalor |
|
6,860,000 |
5.79 |
2.6 |
0.50 |
29 |
Proven – 1901 |
|
890,000 |
6.61 |
2.0 |
0.40 |
28 |
Probable – Lalor |
|
1,190,000 |
4.32 |
3.2 |
0.64 |
32 |
Probable – 1901 |
|
690,000 |
9.49 |
1.4 |
0.25 |
30 |
Gold Zone Reserves |
|
|
Proven – Lalor |
|
3,950,000 |
1.03 |
5.2 |
0.60 |
28 |
Probable – Lalor |
|
3,630,000 |
0.53 |
5.7 |
1.16 |
28 |
Total Proven and Probable |
|
17,200,000 |
3.68 |
3.8 |
0.66 |
29 |
Base Metal Zone Resources |
|
|
Inferred – Lalor |
|
590,000 |
3.48 |
2.8 |
0.31 |
55 |
Inferred – 1901 |
|
310,000 |
6.44 |
2.0 |
0.85 |
25 |
Gold Zone Resources |
|
|
Inferred – Lalor |
|
5,610,000 |
0.35 |
4.6 |
1.17 |
26 |
Inferred – 1901 |
|
480,000 |
0.55 |
6.7 |
0.72 |
37 |
Total Inferred |
|
6,990,000 |
0.89 |
4.5 |
1.05 |
29 |
Note: totals may not add up correctly due to rounding.1 Mineral
resources are exclusive of mineral reserves and do not have
demonstrated economic viability. Mineral resources in the above
tables do not include mining dilution or recovery factors.2 Mineral
reserves and resources are estimated using a minimum NSR cut-off of
C$105 per tonne for waste filled mining areas and a minimum of
C$116 per tonne for paste filled mining areas.3 Metal prices of
$1.10 per pound zinc, $1,500 per ounce gold, $3.10 per pound
copper, and $18.00 per ounce silver with an exchange rate of 1.30
C$/US$ were used to confirm the economic viability of the mineral
reserve estimates.4 For Lalor, individual stope gold grades were
capped at 10 grams per tonne as a prudent estimate until reserves
to mill reconciliations can establish that the high-grade gold can
indeed be entirely recovered. This capping method resulted in the
reduction of the global gold reserve grade by approximately 3%.5
Base metal mineral resources are estimated based on the assumptions
that they would be processed at the Stall concentrator while gold
mineral resources are estimated based on the assumption that they
would be processed at the New Britannia concentrator, which is
currently being refurbished.6 1901 mineral resources were initially
estimated using metal price assumptions that vary marginally from
the assumptions used for reserves. In the Qualified Person’s
opinion, the combined impact of these small variations does not
have any impact on the mineral resource estimates.
Snow Lake Regional Deposits - GoldMineral
Reserve and Resource
Estimates1,2,3,4,5,6,7 |
Tonnes |
Zn Grade (%) |
Au Grade (g/t) |
Cu Grade (%) |
Ag Grade (g/t) |
Probable Reserves |
|
|
WIM |
|
2,450,000 |
0.25 |
1.6 |
1.63 |
6.3 |
3 Zone |
|
660,000 |
- |
4.2 |
- |
- |
Total Probable (Gold) |
|
3,110,000 |
0.20 |
2.2 |
1.28 |
5.0 |
Inferred Resources |
|
|
Birch |
|
570,000 |
- |
4.4 |
- |
- |
New Britannia |
|
2,750,000 |
- |
4.5 |
- |
- |
Total Inferred (Gold) |
|
3,320,000 |
- |
4.5 |
- |
- |
Note: totals may not add up correctly due to rounding.1 Mineral
resources are exclusive of mineral reserves and do not have
demonstrated economic viability. 2 Mineral resources in the above
tables do not include mining dilution or recovery factors.3 Metal
prices of $1.10 per pound zinc, $1,500 per ounce gold, $3.10 per
pound copper, and $18.00 per ounce silver with an exchange rate of
1.30 C$/US$ were used to confirm the economic viability of the
mineral reserve estimates.4 WIM mineral reserves are estimated
using a minimum NSR cut-off of C$150 per tonne, assuming processing
recoveries of 98% for copper, 88% for gold and 70% for silver based
on processing through New Britannia mill's flotation and tails
leach circuits.5 3 Zone mineral reserves are estimated at a minimum
NSR cut-off of C$150 per tonne, assuming processing recoveries of
85% for gold based on processing through New Britannia mill's leach
circuit.6 New Britannia mineral resource estimates have been
reported at a minimum true width of 1.5 metres and with a cut-off
grade varying from 2 grams per tonne (at the lower part of New
Britannia) to 3.5 grams per tonne (at the upper part of New
Britannia).7 Gold mineral resources are estimated based on the
assumption that they would be processed at the New Britannia
concentrator, which is currently being refurbished.
Snow Lake Regional Deposits – Base
MetalMineral Reserve and Resource
Estimates1,2,3,4,5,6,7 |
Tonnes |
Zn Grade (%) |
Au Grade (g/t) |
Cu Grade (%) |
Ag Grade (g/t) |
Indicated Resources |
|
|
Pen II |
|
470,000 |
8.89 |
0.3 |
0.49 |
7 |
Talbot |
|
2,190,000 |
1.79 |
2.1 |
2.33 |
36 |
Total Indicated (Base Metals) |
|
2,660,000 |
3.04 |
1.8 |
2.01 |
31 |
Inferred Resources |
|
|
Watts |
|
3,150,000 |
2.58 |
1.0 |
2.34 |
31 |
Pen II |
|
130,000 |
9.81 |
0.3 |
0.37 |
7 |
Talbot |
|
2,450,000 |
1.74 |
1.9 |
1.13 |
26 |
Total Inferred (Base Metals) |
|
5,730,000 |
2.39 |
1.3 |
1.78 |
28 |
Note: totals may not add up correctly due to rounding.1 Mineral
resources are exclusive of mineral reserves and do not have
demonstrated economic viability. 2 Mineral resources in the above
tables do not include mining dilution or recovery factors.3 Watts
and Pen II mineral resources were initially estimated using metal
price assumptions that vary marginally over the assumptions used
for mineral reserves at Snow Lake. In the Qualified Person’s
opinion, the combined impact of these small variations does not
have any impact on the mineral resource estimates.4 Watts mineral
resources are estimated using a minimum NSR cut-off of C$150 per
tonne, assuming processing recoveries of 90% for copper, 80% for
zinc, 70% for gold and 70% for silver. 5 Pen II mineral resources
are estimated using a minimum NSR cut-off of C$75 per tonne.6 Base
metal mineral resources are estimated based on the assumption that
they would be processed at the Stall concentrator.7 The above
resource estimate table includes 100% of the Talbot mineral
resources reported by Rockcliff Metals Corp. in its 2020 NI 43-101
technical report published on SEDAR. Hudbay currently owns 51%
interest in the project.
Future Snow Lake Upside Opportunities
Lalor In-Mine Exploration
Exploration efforts at the Lalor mine continued
to be successful in 2020 with the definition of an additional 1.8
million tonnes of mineral resources. This increases total inferred
mineral resources at Lalor to 6.2 million tonnes. The inferred
resources have the potential to extend the Lalor mine life beyond
the current estimate of ten years and maintain the 5,300 tonnes per
day production level beyond 2027. The increase in Lalor’s mineral
resource estimate was due to up-dip and down-dip extensions along
strike from existing lenses as well as the inclusion of
gold mineralization located in the immediate footwall and
hanging wall of the base metal lenses where recent drilling and
economic evaluation increased the confidence to include them in the
Lalor inferred mineral resources.
Snow Lake Regional Deposits
There are several deposits in the Snow Lake
region that present additional opportunities to further optimize
the Snow Lake operations, including the Watts, Pen II and Talbot
deposits as described below:
- Watts (100% owned by Hudbay) -
confirmatory drilling conducted during 2019 supported an initial
inferred mineral resource estimate of approximately 3.2 million
tonnes at 2.34% copper, 2.58% zinc, 0.95 grams per tonne gold and
31 grams per tonne silver. The Watts deposit is located
approximately 95 kilometres from the Stall concentrator and is in
close proximity to roads and power lines. Considering future
available processing capacity at the Stall concentrator and recent
drilling success, which expanded the volume of high-grade copper
mineralization at Watts, Hudbay is confident that the potential for
economic extraction of the Watts deposit has been established to a
level sufficient to report an initial inferred mineral resource
estimate.
- Pen II (100% owned by Hudbay) - Pen
II is a low tonnage and high-grade zinc deposit that starts from
surface and is located within trucking distance of the Stall mill.
In 2019, Hudbay defined an indicated resource estimate of 0.5
million tonnes at 8.9% zinc. Pen II could constitute a supplemental
source of feed for the Stall mill. Hudbay expects to continue
metallurgical testing, infill drilling and technical studies in an
attempt to confirm the technical and economic viability of the
resource.
- Talbot (51% owned by Hudbay) - the
Talbot deposit is located approximately 200 kilometres southeast of
the Stall and New Britannia mills. Rockcliff Metals Corp. conducted
several drilling campaigns between 2014 and 2019 that led to the
declaration by Rockcliff of a NI 43-101 indicated mineral resource
estimate of 2.2 million tonnes at 2.3% copper, 2.1 grams per tonne
gold, 1.8% zinc, 36 grams per tonne silver and an inferred mineral
resource estimate of 2.4 million tonnes at 1.1% copper, 1.9 grams
per tonne gold, 1.7% zinc and 25.8 g/t silver. Hudbay has the right
to extend its ownership of Talbot to 65% by incurring expenses
related to the development of the project.
1901 Deposit Gold Zones
There remains further upside potential to
upgrade the inferred resources in 1901 gold zones and incorporate
them into the Snow Lake mine plan once there is processing capacity
at the New Britannia mill. Once the 1901 deposit is developed, the
company will have the underground access required to efficiently
drill the gold zones with the tighter drill spacing required to
upgrade the inferred resource estimate to the indicated
category.
Future Mill Processing Projects
As the Lalor mine matures and additional
satellite ore sources are identified to supplement feed to the
Stall and New Britannia mills, metallurgical projects are advancing
to match the configuration of the mills to the requirements of the
ore. The company is advancing several other projects through
metallurgical testing and early-stage engineering, such as the
potential to treat the tails from the Stall mill to recover
additional gold and the potential to expand the New Britannia mill
to its historical rate of 2,000 tonnes per day.
For additional details on the Lalor mine and the
company’s Snow Lake operations, please refer to the technical
report titled “NI 43-101 Technical Report, Lalor and Snow Lake
Operations, Manitoba, Canada”, effective January 1, 2021, which was
filed on March 29, 2021 under Hudbay’s profile on SEDAR at
www.sedar.com and will be filed on EDGAR at www.sec.gov.
777 Mine
Based on the most recent estimate of mineral
reserves, there has been no change to the expected mine life for
777, which is expected to be depleted by the end of the second
quarter of 2022. The mine is expected to produce at a rate of
approximately 2,800 tonnes per day for the remaining mine life.
Hudbay has begun its transition planning ahead of the 777 mine
closure, including preparation for the training and transfer of
personnel from Flin Flon to Snow Lake. The company plans to close
and decommission the 777 mine and zinc plant upon the depletion of
777 reserves. The Flin Flon concentrator and tailings impoundment
area will be kept on care and maintenance, which will provide
optionality should another mineral discovery occur in the Flin Flon
area.
Current mineral reserves and resources
(exclusive of reserves) for 777 as of January 1, 2021 are
summarized below.
777 MineMineral Reserve and Resource
Estimates1 |
Tonnes |
Cu Grade (%) |
Zn Grade (%) |
Au Grade (g/t) |
Ag Grade (g/t) |
Mineral Reserves |
|
|
Proven |
|
1,125,000 |
1.59 |
5.09 |
2.23 |
31 |
Probable |
|
399,000 |
1.11 |
4.46 |
1.86 |
30 |
Total Proven and Probable |
|
1,524,000 |
1.46 |
4.93 |
2.13 |
31 |
Mineral Resources |
|
|
Measured |
|
120,000 |
1.21 |
7.12 |
2.31 |
39 |
Indicated |
|
90,000 |
1.77 |
4.83 |
1.61 |
31 |
Total Measured and Indicated |
|
210,000 |
1.45 |
6.13 |
2.01 |
35 |
Inferred |
|
- |
- |
- |
- |
- |
Note: totals may not add up correctly due to rounding.1 Mineral
resources are exclusive of mineral reserves and do not have
demonstrated economic viability. Mineral reserves and resources
calculated using life-of-mine (2021-2022) average metal prices of
$2.90 per pound copper, $1.04 per pound zinc (includes premium),
$1,767 per ounce gold, $20.67 per ounce silver and using a C$/US$
exchange rate of 1.30.
3-Year Production Outlook
Consolidated copper and gold production are
expected to increase by 36% and 125%, respectively, by 2023 from
2020 levels as Hudbay brings online its Pampacancha and New
Britannia growth projects. These growth projects more than offset
the lost copper and gold production from 777 after its closure in
mid-2022.
Peru’s 2021 production guidance assumes mining
of Pampacancha will begin in the second quarter, with the initial
phase of lower copper grades, but higher gold grades, expected to
continue for the balance of the year before higher copper grades
are forecast to enter the mine plan in 2022 and 2023.
Manitoba’s 2021 production guidance reflects an
increase in Lalor’s mine throughput to 4,650 tonnes per day, from
the previous 4,500 tonnes per day, as the recent trend of stronger
production from the mine is expected to continue. Lalor’s mine
throughput is expected to further increase to 5,300 tonnes per day
starting in 2023 due to technical and operational improvements and
the allocation of mining resources from the 777 mine after its
closure in 2022. Manitoba’s 2023 production reflects higher copper,
gold and silver recoveries at the Stall mill as a result of the
implementation of various mill flowsheet enhancements in 2022.
3-Year Production OutlookContained Metal
in Concentrate1 |
2021 Guidance |
2022 Guidance |
2023 Guidance |
|
|
|
|
|
|
|
Peru |
|
|
|
|
|
Copper |
tonnes |
72,000 - 88,000 |
95,000 - 120,000 |
105,000 - 130,000 |
|
Gold |
ounces |
40,000 - 50,000 |
85,000 - 105,000 |
85,000 - 105,000 |
|
Silver |
ounces |
1,800,000 - 2,170,000 |
1,700,000 - 2,100,000 |
2,300,000 - 2,800,000 |
|
Molybdenum |
tonnes |
1,400 - 1,700 |
1,200 - 1,500 |
2,200 - 2,800 |
|
|
|
|
|
|
|
Manitoba2 |
|
|
|
|
Gold |
ounces |
150,000 - 165,000 |
160,000 - 180,000 |
175,000 - 195,000 |
|
Zinc |
tonnes |
96,000 - 107,000 |
60,000 - 70,000 |
40,000 - 47,000 |
|
Copper |
tonnes |
20,000 - 24,000 |
14,000 - 16,000 |
11,000 - 13,000 |
|
Silver |
ounces |
1,200,000 - 1,400,000 |
1,000,000 - 1,200,000 |
1,000,000 - 1,200,000 |
|
|
|
|
|
|
|
Total |
|
|
|
|
|
Copper |
tonnes |
92,000 - 112,000 |
109,000 - 136,000 |
116,000 - 143,000 |
|
Gold |
ounces |
190,000 - 215,000 |
245,000 - 285,000 |
260,000 - 300,000 |
|
Zinc |
tonnes |
96,000 - 107,000 |
60,000 - 70,000 |
40,000 - 47,000 |
|
Silver |
ounces |
3,000,000 - 3,570,000 |
2,700,000 - 3,300,000 |
3,300,000 - 4,000,000 |
|
Molybdenum |
tonnes |
1,400 - 1,700 |
1,200 - 1,500 |
2,200 - 2,800 |
|
1 Metal
reported in concentrate and doré is prior to smelting and refining
losses or deductions associated with smelter terms. 2 Manitoba
production guidance assumes the 777 mine is depleted at the end of
the second quarter of 2022, resulting in lower copper and zinc
production after its closure. |
|
Rosemont Project
Rosemont is a copper development project,
located in Pima County, Arizona, approximately 50 kilometres
southeast of Tucson. The Rosemont project is expected to be an open
pit, shovel and truck operation and has an expected 19-year mine
life based on current reserves. There were no changes to Rosemont’s
reserves and resources during 2020. The appeal of the unprecedented
Rosemont court decision with the U.S. Court of Appeals for the
Ninth Circuit continues with a decision expected in the second half
of 2021.
On March 24, 2021, the U.S. Army Corps of
Engineers (the “Corps”) issued an approved jurisdictional
determination whereby the Corps determined that waters of the
United States do not occur on the Rosemont property. As a result,
Rosemont is no longer subject to the Clean Water Act and does not
require a Section 404 Water Permit.
On March 29, 2021, Hudbay announced the
intersection of high-grade copper sulphide and oxide mineralization
at shallow depth on its Copper World properties located on wholly
owned patented mining claims within seven kilometres of Rosemont.
The drill program was initiated in 2020 to confirm historical
drilling in this past-producing copper region formerly known as
Helvetia. After receiving encouraging initial results, the company
launched a larger drill program in early 2021 and has since doubled
the number of drill rigs at site to six to further test the four
known deposits at Copper World and the potential for additional
mineralization. For further details, including a full list of assay
results and detailed figures illustrating the location of the
deposits, please refer to the news release dated March 29,
2021.
Mason Project
The Mason project is a large greenfield copper
deposit located in the historic Yerington District of Nevada and is
one of the largest undeveloped copper porphyry deposits in North
America. Mason’s measured and indicated mineral resources are
comparable in size to Constancia and Rosemont. Hudbay views the
Mason project as a long-term option for future development and a
strong component of its pipeline of long-term growth opportunities.
Since acquiring Mason, Hudbay has consolidated a prospective
package of patented and unpatented mining claims contiguous to the
Mason project and has advanced a number of technical studies.
This updated resource estimate represents the
first compiled for the Mason project from a resource model
constructed by Hudbay personnel using the same methods applied at
Constancia. Based on this new model, including resource
classification criteria calibrated on historical performance at
Constancia, control of grade over-smoothing in the central zone of
the deposit and the use of a lower cut-off grade, the measured and
indicated resources have increased to 2.2 billion tonnes at 0.29%
copper, from 1.4 billion tonnes at 0.32% copper previously. Hudbay
expects to release the results of its preliminary economic
assessment of Mason in April 2021 based on this revised resource
model and an updated mine plan.
Current mineral resource estimates for Mason
based on the revised resource model as of January 1,
2021 are summarized below.
Mason ProjectMineral Resource
Estimates1,2,3 |
Tonnes |
Cu Grade (%) |
Mo Grade (g/t) |
Au Grade (g/t) |
Ag Grade (g/t) |
Measured |
|
1,417,000,000 |
0.29 |
59 |
0.031 |
0.66 |
Indicated |
|
801,000,000 |
0.30 |
80 |
0.025 |
0.57 |
Total Measured and Indicated |
|
2,219,000,000 |
0.29 |
67 |
0.029 |
0.63 |
Inferred |
|
237,000,000 |
0.24 |
78 |
0.033 |
0.73 |
Note: totals may not add up correctly due to rounding.1 Mineral
resource estimates that are not mineral reserves do not have
demonstrated economic viability. Mineral resource estimates do not
include factors for mining recovery or dilution.2 Metal prices of
$3.10 per pound copper, $11.00 per pound molybdenum, $1,500 per
ounce gold, and $18.00 per ounce silver were used to estimate
mineral resources.3 Mineral resource estimates are reported as 20
metres by 20 metres by 15 meters blocks above cut-off using a
minimum NSR per tonne of $6.25.
Non-IFRS Financial Performance Measures
Cash cost and sustaining cash cost per pound of
copper and ounce of gold produced are shown because the company
believes they help investors and management assess the performance
of its operations, including the margin generated by the operations
and the company. Unit operating costs are shown because these
measures are used by the company as a key performance indicator to
assess the performance of its mining and processing operations.
These measures do not have a meaning prescribed by IFRS and are
therefore unlikely to be comparable to similar measures presented
by other issuers. These measures should not be considered in
isolation or as a substitute for measures prepared in accordance
with IFRS and are not necessarily indicative of operating profit or
cash flow from operations as determined under IFRS. Other companies
may calculate these measures differently. For further details on
these measures, including reconciliations of historical unit
operating costs and cash costs per pound of copper produced to the
most comparable IFRS measures, please refer to page 53 of Hudbay’s
management’s discussion and analysis for the three and twelve
months ended December 31, 2020 available on SEDAR at
www.sedar.com.
Qualified Person
The scientific and technical information
contained in this news release related to the Rosemont project has
been approved by Cashel Meagher, P.Geo., Hudbay’s Senior Vice
President and Chief Operating Officer. The scientific and technical
information contained in this news release related to all other
material mineral projects has been approved by Olivier
Tavchandjian, P. Geo, Hudbay’s Vice-President, Exploration and
Geology. Messrs. Meagher and Tavchandjian are qualified persons
pursuant to NI 43 101.
Additional details on the company’s material
mineral projects, including a year-over-year reconciliation of
reserves and resources, is included in Hudbay's Annual Information
Form for the year ended December 31, 2020 (the “AIF”), which is
available on SEDAR at www.sedar.com.
Note to United States
Investors
This news release has been prepared in
accordance with the requirements of the securities laws in effect
in Canada, which differ from the requirements of United States
securities laws. Canadian reporting requirements for disclosure of
mineral properties are governed by the Canadian Securities
Administrators’ National Instrument 43-101 Standards of Disclosure
for Mineral Projects (“NI 43-101”).
For this reason, information contained in this
news release containing descriptions of the Company’s mineral
deposits may not be comparable to similar information made public
by United States companies subject to the reporting and disclosure
requirements under the United States federal securities laws and
the rules and regulations thereunder. For further information on
the differences between the disclosure requirements for mineral
properties under the United States federal securities laws and NI
43-101, please refer to the company’s AIF, a copy of which has been
filed under Hudbay’s profile on SEDAR at www.sedar.com and the
company’s Form 40-F, a copy of which will be filed on EDGAR at
www.edgar.com.
Forward-Looking Information
This news release contains forward-looking
information within the meaning of applicable Canadian and United
States securities legislation. All information contained in this
news release, other than statements of current and historical fact,
is forward-looking information. Often, but not always,
forward-looking information can be identified by the use of words
such as “plans”, “expects”, “budget”, “guidance”, “scheduled”,
“estimates”, “forecasts”, “strategy”, “target”, “intends”,
“objective”, “goal”, “understands”, “anticipates” and “believes”
(and variations of these or similar words) and statements that
certain actions, events or results “may”, “could”, “would”,
“should”, “might” “occur” or “be achieved” or “will be taken” (and
variations of these or similar expressions). All of the
forward-looking information in this news release is qualified by
this cautionary note.
Forward-looking information includes, but is not
limited to, production, cost and capital and exploration
expenditure guidance and factors that may have an effect on such
guidance, anticipated production and costs at the company’s mines
and processing facilities based on recently updated mine plans,
expectations regarding the timing of mining activities at the
Pampacancha deposit and any additional delivery obligations under
the Constancia stream agreement, the anticipated timing, cost and
benefits of developing the Rosemont project and the outcome of
litigation challenging Rosemont's permits, expectations regarding
the Helvetia exploration program, expectations regarding the Lalor
gold strategy, including the refurbishment, commissioning and
ramp-up of the New Britannia mill and the expectations regarding
the mine plan for the 1901 deposit, increasing the mining rate at
Lalor and optimizing the Stall and New Britannia mills (including
the cost of, and anticipated benefits from, the Stall mill recovery
improvement project), the possibility of converting inferred
mineral resource estimates to higher confidence categories,
expectations regarding the preliminary economic assessment of the
Mason project, the potential and the company’s anticipated plans
for advancing its mining properties surrounding Constancia and
elsewhere in Peru, anticipated mine plans, anticipated metals
prices and the anticipated sensitivity of the company’s financial
performance to metals prices, events that may affect its operations
and development projects, anticipated cash flows from operations
and related liquidity requirements, the anticipated effect of
external factors on revenue, such as commodity prices, estimation
of mineral reserves and resources, mine life projections,
reclamation costs, economic outlook, government regulation of
mining operations, and business and acquisition strategies.
Forward-looking information is not, and cannot be, a guarantee of
future results or events. Forward-looking information is based on,
among other things, opinions, assumptions, estimates and analyses
that, while considered reasonable by us at the date the
forward-looking information is provided, inherently are subject to
significant risks, uncertainties, contingencies and other factors
that may cause actual results and events to be materially different
from those expressed or implied by the forward-looking
information.
The material factors or assumptions that Hudbay
identified and were applied by the company in drawing conclusions
or making forecasts or projections set out in the forward-looking
information include, but are not limited to:
- the company’s ability to continue
to operate safely and at full capacity during the COVID-19
pandemic;
- the availability, global supply and
effectiveness of COVID-19 vaccines, the effective distribution of
such vaccines in the countries in which the company operates, the
lessening of restrictions related to COVID-19, and the anticipated
rate and timing for each of the foregoing;
- the company’s ability to achieve
production and unit cost guidance;
- no significant interruptions to the
company’s operations or significant delays to its development
projects in Manitoba and Peru due to the COVID-19 pandemic;
- the timing of development and
production activities on the Pampacancha deposit;
- the timing for reaching additional
agreements with individual community members and no significant
unanticipated delays to the development of Pampacancha;
- the successful completion of the
New Britannia project on budget and on schedule;
- the successful outcome of the
Rosemont litigation;
- the successful renegotiation of
collective agreements with the labour unions that represent certain
of our employees in Manitoba and Peru;
- the success of mining, processing,
exploration and development activities;
- the scheduled maintenance and
availability of the company’s processing facilities;
- the accuracy of geological, mining
and metallurgical estimates;
- anticipated metals prices and the
costs of production;
- the supply and demand for metals
Hudbay produces;
- the supply and availability of all
forms of energy and fuels at reasonable prices;
- no significant unanticipated
operational or technical difficulties;
- the execution of the company’s
business and growth strategies, including the success of its
strategic investments and initiatives;
- the availability of additional
financing, if needed;
- the timing and receipt of various
regulatory and governmental approvals (including approval of the
updated closure plan for the company’s Flin Flon operations);
- the availability of personnel for
the company’s exploration, development and operational projects and
ongoing employee relations;
- maintaining good relations with the
labour unions that represent certain of the company’s employees in
Manitoba and Peru;
- maintaining good relations with the
communities in which the company operates, including the
neighbouring Indigenous communities and local governments;
- no significant unanticipated
challenges with stakeholders at the company’s various
projects;
- no significant unanticipated events
or changes relating to regulatory, environmental, health and safety
matters;
- no contests over title to Hudbay’s
properties, including as a result of rights or claimed rights of
Indigenous peoples or challenges to the validity of its unpatented
mining claims;
- the timing and possible outcome of
pending litigation and no significant unanticipated
litigation;
- certain tax matters, including, but
not limited to current tax laws and regulations and the refund of
certain value added taxes from the Canadian and Peruvian
governments; and
- no significant and continuing
adverse changes in general economic conditions or conditions in
the
- financial markets (including
commodity prices and foreign exchange rates).
The risks, uncertainties, contingencies and
other factors that may cause actual results to differ materially
from those expressed or implied by the forward-looking information
may include, but are not limited to, risks associated with the
COVID-19 pandemic and its effect on the company’s operations,
financial condition, projects and prospects, the possibility of a
global recession arising from the COVID-19 pandemic and attempts to
control it, the political situation in Peru, including risks
associated with the upcoming national election, risks generally
associated with the mining industry, such as economic factors
(including future commodity prices, currency fluctuations, energy
prices and general cost escalation), uncertainties related to the
development and operation of the company’s projects, risks related
to the U.S. district court’s decisions to set aside the U.S. Forest
Service’s Final Record of Decision (“FROD”) and the Biological
Opinion for Rosemont and related appeals and other legal
challenges, risks related to the new Lalor mine plan, including the
schedule for the refurbishment and commissioning of the New
Britannia mill, risks related to the schedule for mining the
Pampacancha deposit (including risks associated with COVID-19, with
reaching additional agreements with individual community members
and the impact of any schedule delays), dependence on key personnel
and employee and union relations, risks related to political or
social unrest or change, risks in respect of Indigenous and
community relations, rights and title claims, operational risks and
hazards, including the cost of maintaining and upgrading the
company's tailings management facilities and any unanticipated
environmental, industrial and geological events and developments
and the inability to insure against all risks, failure of plant,
equipment, processes, transportation and other infrastructure to
operate as anticipated, compliance with government and
environmental regulations, including permitting requirements and
anti-bribery legislation, depletion of the company’s reserves,
volatile financial markets that may affect Hudbay’s ability to
obtain additional financing on acceptable terms, the failure to
obtain required approvals or clearances from government authorities
on a timely basis, uncertainties related to the geology,
continuity, grade and estimates of mineral reserves and resources,
and the potential for variations in grade and recovery rates,
uncertain costs of reclamation activities, the company’s ability to
comply with its pension and other post-retirement obligations, the
company’s ability to abide by the covenants in its debt instruments
and other material contracts, tax refunds, hedging transactions, as
well as the risks discussed under the heading “Risk Factors” in the
company’s AIF.
Should one or more risk, uncertainty,
contingency or other factor materialize or should any factor or
assumption prove incorrect, actual results could vary materially
from those expressed or implied in the forward-looking information.
Accordingly, you should not place undue reliance on forward-looking
information. The company does not assume any obligation to update
or revise any forward-looking information after the date of this
news release or to explain any material difference between
subsequent actual events and any forward-looking information,
except as required by applicable law.
About Hudbay
Hudbay (TSX, NYSE: HBM) is a diversified mining
company primarily producing copper concentrate (containing copper,
gold and silver) and zinc metal. Directly and through its
subsidiaries, Hudbay owns three polymetallic mines, four ore
concentrators and a zinc production facility in northern Manitoba
and Saskatchewan (Canada) and Cusco (Peru), and copper projects in
Arizona and Nevada (United States). The company’s growth strategy
is focused on the exploration, development, operation and
optimization of properties it already controls, as well as other
mineral assets it may acquire that fit its strategic criteria.
Hudbay’s vision is to be a responsible, top-tier operator of
long-life, low-cost mines in the Americas. Hudbay’s mission is to
create sustainable value through the acquisition, development and
operation of high-quality, long-life deposits with exploration
potential in jurisdictions that support responsible mining, and to
see the regions and communities in which the company operates
benefit from its presence. The company is governed by the Canada
Business Corporations Act and its shares are listed under the
symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange
and Bolsa de Valores de Lima. Further information about Hudbay can
be found on www.hudbay.com.
For investor and media inquiries, please
contact:
Candace BrûléDirector, Investor Relations
(416) 814-4387 candace.brule@hudbay.com
Constancia Updated Mine Plan Detailed
Information
Constancia Mine Plan
|
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2021-2028 Avg. |
2029-2037 Avg. |
LOM |
Constancia Ore |
Ore Milled |
tonnes(000s) |
25,283 |
21,784 |
19,241 |
19,920 |
29,915 |
31,350 |
31,350 |
31,437 |
26,285 |
31,369 |
492,606 |
Cu Grade |
% |
0.32% |
0.35% |
0.35% |
0.27% |
0.32% |
0.35% |
0.33% |
0.39% |
0.34% |
0.25% |
0.29% |
Au Grade |
g/t |
0.03 |
0.04 |
0.04 |
0.03 |
0.04 |
0.05 |
0.05 |
0.05 |
0.04 |
0.04 |
0.04 |
Ag Grade |
g/t |
2.90 |
2.98 |
2.95 |
2.68 |
3.26 |
3.71 |
3.24 |
3.88 |
3.26 |
2.62 |
2.89 |
Mo Grade |
% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
Pampacancha Ore |
Ore Milled |
tonnes(000s) |
5,661 |
9,174 |
12,109 |
11,517 |
1,435 |
- |
- |
- |
7,9791 |
- |
39,896 |
Cu Grade |
% |
0.27% |
0.55% |
0.58% |
0.81% |
0.69% |
- |
- |
- |
0.60% |
- |
0.60% |
Au Grade |
g/t |
0.25 |
0.40 |
0.30 |
0.45 |
0.33 |
- |
- |
- |
0.36 |
- |
0.36 |
Ag Grade |
g/t |
3.32 |
3.03 |
5.23 |
6.28 |
4.14 |
- |
- |
- |
4.72 |
- |
4.72 |
Mo Grade |
% |
0.02% |
0.01% |
0.03% |
0.01% |
0.02% |
- |
- |
- |
0.02% |
- |
0.02% |
Total Ore |
Ore Milled |
tonnes(000s) |
30,944 |
30,958 |
31,350 |
31,438 |
31,350 |
31,350 |
31,350 |
31,437 |
31,272 |
31,369 |
532,502 |
Cu Grade |
% |
0.31% |
0.41% |
0.44% |
0.47% |
0.34% |
0.35% |
0.33% |
0.39% |
0.38% |
0.25% |
0.31% |
Au Grade |
g/t |
0.07 |
0.15 |
0.14 |
0.19 |
0.05 |
0.05 |
0.05 |
0.05 |
0.09 |
0.04 |
0.07 |
Ag Grade |
g/t |
2.97 |
2.99 |
3.83 |
4.00 |
3.30 |
3.71 |
3.24 |
3.88 |
3.49 |
2.62 |
3.03 |
Mo Grade |
% |
0.01% |
0.01% |
0.02% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
Note: LOM refers to life-of-mine total.1
Pampacancha average over the 2021 to 2025 period.
Constancia Production Profile
|
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2021-2028 Avg. |
2029-2037 Avg. |
LOM |
Recoveries |
Cu Recovery |
% |
84.8% |
85.1% |
84.7% |
86.9% |
85.7% |
86.9% |
86.4% |
86.4% |
85.9% |
86.0% |
85.9% |
Au Recovery |
% |
61.6% |
65.5% |
66.1% |
67.4% |
52.4% |
47.6% |
45.7% |
49.7% |
57.0% |
46.2% |
56.4% |
Ag Recovery |
% |
66.8% |
65.2% |
67.8% |
68.8% |
66.4% |
65.6% |
64.9% |
66.4% |
66.5% |
65.0% |
65.8% |
Mo Recovery |
% |
33.2% |
44.4% |
45.4% |
45.5% |
47.8% |
46.8% |
50.5% |
48.1% |
45.2% |
47.9% |
46.3% |
Concentrate |
Cu Concentrate |
tonnes |
344,590 |
471,501 |
523,575 |
561,679 |
392,638 |
410,620 |
385,224 |
446,422 |
442,031 |
294,179 |
6,183,858 |
Cu Grade in Conc. |
% |
23% |
23% |
22% |
23% |
23% |
23% |
24% |
24% |
23% |
23% |
23% |
Mo Concentrate |
tonnes |
2,583 |
2,794 |
4,977 |
3,285 |
3,748 |
2,621 |
3,237 |
3,120 |
3,296 |
1,989 |
44,262 |
Mo Grade in Conc. |
% |
50% |
50% |
50% |
50% |
50% |
50% |
50% |
50% |
50% |
50% |
50% |
Contained Metal in Concentrate |
Cu Production |
tonnes(000s) |
80 |
108 |
117 |
128 |
91 |
95 |
91 |
106 |
102 |
68 |
1,431 |
Au Production |
ounces(000s) |
45 |
97 |
93 |
127 |
28 |
25 |
21 |
27 |
58 |
19 |
631 |
Ag Production |
ounces(000s) |
1,977 |
1,942 |
2,619 |
2,782 |
2,210 |
2,452 |
2,122 |
2,601 |
2,338 |
1,717 |
34,160 |
Mo Production |
tonnes(000s) |
1.3 |
1.4 |
2.5 |
1.6 |
1.9 |
1.3 |
1.6 |
1.6 |
1.6 |
1.0 |
22.1 |
Constancia Capital Expenditures
|
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2021-2028 Avg. |
2029-2037 Avg. |
LOM |
Capital Expenditures ($ millions) |
Sustaining Capital (before Capitalized Stripping) |
|
$102 |
$48 |
$118 |
$58 |
$94 |
$50 |
$77 |
$40 |
$73 |
$35 |
$898 |
Capitalized Stripping |
|
$25 |
$18 |
$40 |
$22 |
$20 |
$16 |
$48 |
$26 |
$27 |
$15 |
$350 |
Sustaining Capital (after Capitalized
Stripping) |
|
$127 |
$66 |
$158 |
$81 |
$114 |
$66 |
$125 |
$66 |
$100 |
$50 |
$1,248 |
Growth Project Capital |
|
$4 |
- |
$30 |
- |
$17 |
- |
- |
- |
- |
- |
$51 |
Total Capital Expenditures |
|
$131 |
$66 |
$187 |
$81 |
$130 |
$66 |
$125 |
$66 |
$106 |
$50 |
$1,299 |
Constancia Unit Operating Costs and Cash
Costs
|
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2021-2028 Avg. |
2029-2037 Avg. |
LOM |
Unit Operating Costs ($ per tonne milled) |
Mining |
|
$3.62 |
$3.54 |
$3.86 |
$3.91 |
$4.13 |
$4.21 |
$4.00 |
$3.88 |
$3.89 |
$2.74 |
$3.28 |
Milling |
|
$5.39 |
$5.33 |
$5.31 |
$5.37 |
$5.29 |
$4.81 |
$4.85 |
$4.84 |
$5.15 |
$4.80 |
$4.96 |
G&A |
|
$1.74 |
$1.70 |
$1.57 |
$1.51 |
$1.51 |
$1.54 |
$1.48 |
$1.48 |
$1.57 |
$1.31 |
$1.43 |
Total Operating Costs (before Capitalized Stripping) |
|
$10.74 |
$10.57 |
$10.74 |
$10.79 |
$10.93 |
$10.56 |
$10.32 |
$10.19 |
$10.61 |
$8.86 |
$9.68 |
Total Operating Costs (after Capitalized
Stripping) |
|
$9.94 |
$9.99 |
$9.47 |
$10.09 |
$10.29 |
$10.06 |
$8.79 |
$9.37 |
$9.75 |
$8.38 |
$9.02 |
Cash Cost and Sustaining Cash Cost |
Cu Production |
million pounds |
177 |
237 |
258 |
283 |
201 |
210 |
200 |
233 |
225 |
150 |
3,155 |
Cash Cost, net of by-product credits |
$/lb Cu |
$1.37 |
$0.97 |
$0.80 |
$0.74 |
$1.48 |
$1.47 |
$1.37 |
$1.27 |
$1.18 |
$1.71 |
$1.38 |
Sustaining Cash Cost, net of by-product
credits |
$/lb Cu |
$2.30 |
$1.39 |
$1.44 |
$1.05 |
$2.08 |
$1.82 |
$2.03 |
$1.58 |
$1.71 |
$2.09 |
$1.83 |
Note:
- Production includes metal contained in concentrate.
- By-product credits calculated using the gold and silver
deferred revenue drawdown rates for 2021 and the following
commodity prices: gold price of $1,800 per ounce for 2021, $1,700
per ounce for 2022, $1,650 per ounce for 2023, $1,600 per ounce for
2024 and $1,500 per ounce long-term; silver prices of $25 per ounce
for 2021, $23 per ounce for 2022, $20 per ounce for 2023, $19 per
ounce for 2024 and $18 per ounce long-term; molybdenum prices of
$11 per tonne for 2021 and $10 per tonne for 2022 and
long-term.
- Sustaining cash cost calculated on the same basis as used in
the company’s quarterly financial disclosures, which incorporates
all costs included in cash cost plus sustaining capital
expenditures, payments on capital leases, capitalized exploration,
royalties, cash payments on long-term community agreements, and
accretion and amortization of decommissioning obligations.
- Cash cost and sustaining cash cost are non-IFRS financial
performance measures with no standardized definition under IFRS.
For further details on why Hudbay believes cash costs are a useful
performance indicator, please refer to the company's most recent
Management's Discussion and Analysis for the three and twelve
months ended December 31, 2020.
Snow Lake Updated Mine Plan Detailed
Information
Snow Lake Mine Plan
Stall Mill Feed |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
2031 |
LOM |
Lalor Base Metal Ore |
Ore Mined |
tonnes(000s) |
1,3631 |
1,088 |
1,315 |
1,315 |
1,315 |
1,223 |
935 |
744 |
822 |
487 |
69 |
10,675 |
Ore Mined |
tpd |
3,894 |
3,107 |
3,757 |
3,757 |
3,757 |
3,494 |
2,672 |
2,126 |
2,347 |
1,390 |
197 |
- |
Au Grade |
g/t |
3.31 |
2.99 |
3.40 |
3.78 |
4.41 |
3.62 |
3.36 |
2.49 |
2.43 |
2.27 |
3.24 |
3.35 |
Ag Grade |
g/t |
26.41 |
27.55 |
26.39 |
26.71 |
26.98 |
28.59 |
32.75 |
32.96 |
27.32 |
36.15 |
38.06 |
28.48 |
Cu Grade |
% |
0.71% |
0.82% |
0.86% |
0.72% |
1.10% |
0.75% |
0.69% |
0.34% |
0.41% |
0.56% |
0.60% |
0.74% |
Zn Grade |
% |
4.87% |
5.13% |
3.90% |
3.80% |
3.02% |
3.65% |
4.40% |
5.43% |
5.38% |
5.60% |
3.90% |
4.34% |
1901 Base Metal Ore |
Ore Mined |
tonnes(000s) |
- |
- |
- |
- |
- |
92 |
334 |
343 |
354 |
312 |
145 |
1,581 |
Ore Mined |
tpd |
- |
- |
- |
- |
- |
263 |
955 |
981 |
1,011 |
892 |
415 |
- |
Au Grade |
g/t |
- |
- |
- |
- |
- |
2.29 |
2.04 |
1.96 |
1.43 |
1.58 |
1.14 |
1.73 |
Ag Grade |
g/t |
- |
- |
- |
- |
- |
38.16 |
42.67 |
21.83 |
25.41 |
21.84 |
31.52 |
28.88 |
Cu Grade |
% |
- |
- |
- |
- |
- |
0.23% |
0.27% |
0.38% |
0.32% |
0.44% |
0.29% |
0.34% |
Zn Grade |
% |
- |
- |
- |
- |
- |
6.26% |
6.16% |
8.65% |
9.09% |
5.77% |
12.53% |
7.87% |
Total Ore to Stall |
Ore Mined |
tonnes(000s) |
1,3631 |
1,088 |
1,315 |
1,315 |
1,315 |
1,315 |
1,270 |
1,088 |
1,175 |
799 |
214 |
12,256 |
Ore Mined |
tpd |
3,894 |
3,107 |
3,757 |
3,757 |
3,757 |
3,757 |
3,627 |
3,107 |
3,358 |
2,282 |
613 |
- |
Au Grade |
g/t |
3.31 |
2.99 |
3.40 |
3.78 |
4.41 |
3.52 |
3.01 |
2.32 |
2.13 |
2.00 |
1.82 |
3.14 |
Ag Grade |
g/t |
26.41 |
27.55 |
26.39 |
26.71 |
26.98 |
29.26 |
35.36 |
29.44 |
26.74 |
30.56 |
33.63 |
28.53 |
Cu Grade |
% |
0.71% |
0.82% |
0.86% |
0.72% |
1.10% |
0.71% |
0.58% |
0.35% |
0.38% |
0.51% |
0.39% |
0.68% |
Zn Grade |
% |
4.87% |
5.13% |
3.90% |
3.80% |
3.02% |
3.83% |
4.86% |
6.44% |
6.50% |
5.67% |
9.75% |
4.80% |
Note: Tonnes per day (“tpd”) assumes 350
operating days a year. LOM refers to life-of-mine total. Totals may
not add up due to rounding.1 Includes ore processed at the Flin
Flon mill.
New Britannia Mill Feed |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
2031 |
Lalor Gold Ore |
Ore Mined |
tonnes(000s) |
214 |
540 |
540 |
540 |
540 |
540 |
540 |
540 |
452 |
387 |
114 |
Ore Mined |
tpd |
611 |
1,543 |
1,543 |
1,543 |
1,543 |
1,543 |
1,543 |
1,543 |
1,292 |
1,106 |
326 |
Au Grade |
g/t |
4.99 |
6.08 |
5.76 |
5.42 |
5.02 |
5.52 |
5.47 |
5.19 |
5.17 |
5.70 |
6.45 |
Ag Grade |
g/t |
26.55 |
26.00 |
25.28 |
27.49 |
27.70 |
25.88 |
29.90 |
36.53 |
41.68 |
27.93 |
31.02 |
Cu Grade |
% |
0.64% |
0.67% |
0.45% |
0.45% |
0.44% |
0.42% |
1.07% |
0.75% |
0.59% |
0.43% |
0.56% |
Zn Grade |
% |
0.22% |
0.68% |
0.88% |
1.06% |
1.22% |
0.84% |
0.93% |
1.02% |
1.06% |
0.63% |
0.95% |
WIM Gold Ore |
Ore Mined |
tonnes(000s) |
- |
- |
- |
- |
- |
- |
- |
- |
- |
104 |
414 |
Ore Mined |
tpd |
- |
- |
- |
- |
- |
- |
- |
- |
- |
298 |
1,182 |
Au Grade |
g/t |
- |
- |
- |
- |
- |
- |
- |
- |
- |
0.76 |
1.24 |
Ag Grade |
g/t |
- |
- |
- |
- |
- |
- |
- |
- |
- |
4.64 |
6.01 |
Cu Grade |
% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
1.22% |
1.62% |
Zn Grade |
% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
0.09% |
0.18% |
Total Ore to New Britannia |
Ore Mined |
tonnes(000s) |
214 |
540 |
540 |
540 |
540 |
540 |
540 |
540 |
452 |
492 |
528 |
Ore Mined |
tpd |
611 |
1,543 |
1,543 |
1,543 |
1,543 |
1,543 |
1,543 |
1,543 |
1,292 |
1,404 |
1,507 |
Au Grade |
g/t |
4.99 |
6.08 |
5.76 |
5.42 |
5.02 |
5.52 |
5.47 |
5.19 |
5.17 |
4.65 |
2.36 |
Ag Grade |
g/t |
26.55 |
26.00 |
25.28 |
27.49 |
27.70 |
25.88 |
29.90 |
36.53 |
41.68 |
22.99 |
11.41 |
Cu Grade |
% |
0.64% |
0.67% |
0.45% |
0.45% |
0.44% |
0.42% |
1.07% |
0.75% |
0.59% |
0.60% |
1.39% |
Zn Grade |
% |
0.22% |
0.68% |
0.88% |
1.06% |
1.22% |
0.84% |
0.93% |
1.02% |
1.06% |
0.51% |
0.35% |
New Britannia Mill Feed (continued) |
2032 |
2033 |
2034 |
2035 |
2036 |
2037 |
LOM |
Lalor Gold Ore |
Ore Mined |
tonnes(000s) |
- |
- |
- |
- |
- |
- |
4,947 |
Ore Mined |
tpd |
- |
- |
- |
- |
- |
- |
- |
Au Grade |
g/t |
- |
- |
- |
- |
- |
- |
5.48 |
Ag Grade |
g/t |
- |
- |
- |
- |
- |
- |
29.55 |
Cu Grade |
% |
- |
- |
- |
- |
- |
- |
0.59% |
Zn Grade |
% |
- |
- |
- |
- |
- |
- |
0.90% |
WIM Gold Ore |
Ore Mined |
tonnes(000s) |
438 |
438 |
401 |
316 |
288 |
49 |
2,448 |
Ore Mined |
tpd |
1,252 |
1,251 |
1,147 |
904 |
822 |
139 |
- |
Au Grade |
g/t |
1.55 |
1.74 |
1.82 |
1.82 |
1.68 |
1.87 |
1.60 |
Ag Grade |
g/t |
5.66 |
6.51 |
6.67 |
6.92 |
6.76 |
6.86 |
6.31 |
Cu Grade |
% |
1.47% |
1.72% |
1.71% |
1.71% |
1.67% |
1.70% |
1.63% |
Zn Grade |
% |
0.32% |
0.42% |
0.28% |
0.17% |
0.13% |
0.13% |
0.25% |
3 Zone Gold Ore |
Ore Mined |
tonnes(000s) |
- |
- |
38 |
219 |
219 |
187 |
662 |
Ore Mined |
tpd |
- |
- |
107 |
625 |
626 |
533 |
- |
Au Grade |
g/t |
- |
- |
3.40 |
4.17 |
4.17 |
4.46 |
4.21 |
Total Ore to New Britannia |
Ore Mined |
tonnes(000s) |
438 |
438 |
439 |
535 |
507 |
235 |
8,057 |
Ore Mined |
tpd |
1,252 |
1,251 |
1,254 |
1,529 |
1,448 |
672 |
- |
Au Grade |
g/t |
1.55 |
1.74 |
1.96 |
2.78 |
2.76 |
3.93 |
4.20 |
Ag Grade |
g/t |
5.66 |
6.51 |
6.10 |
4.09 |
3.84 |
1.42 |
20.06 |
Cu Grade |
% |
1.47% |
1.72% |
1.56% |
1.01% |
0.95% |
0.35% |
0.86% |
Zn Grade |
% |
0.32% |
0.42% |
0.26% |
0.10% |
0.07% |
0.03% |
0.63% |
Note: Tonnes per day (“tpd”) assumes 350
operating days a year. LOM refers to life-of-mine total. Totals may
not add up due to rounding.
Snow Lake Metallurgical Recoveries
|
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
2031 |
2032 |
2033 |
2034 |
2035 |
2036 |
2037 |
LOM |
Stall Mill Recoveries |
Lalor Base Metal Ore |
Cu |
86% |
88% |
93% |
93% |
93% |
93% |
93% |
87% |
89% |
93% |
93% |
- |
- |
- |
- |
- |
- |
91% |
Au |
59% |
61% |
69% |
66% |
69% |
67% |
65% |
50% |
54% |
60% |
62% |
- |
- |
- |
- |
- |
- |
64% |
Ag |
60% |
63% |
72% |
70% |
72% |
71% |
69% |
53% |
57% |
64% |
65% |
- |
- |
- |
- |
- |
- |
66% |
Zn |
92% |
91% |
91% |
91% |
89% |
91% |
91% |
94% |
93% |
92% |
91% |
- |
- |
- |
- |
- |
- |
92% |
1901 Base Metal Ore |
Cu |
- |
- |
- |
- |
- |
81% |
84% |
88% |
86% |
90% |
84% |
- |
- |
- |
- |
- |
- |
87% |
Au |
- |
- |
- |
- |
- |
42% |
46% |
53% |
49% |
56% |
47% |
- |
- |
- |
- |
- |
- |
50% |
Ag |
- |
- |
- |
- |
- |
44% |
48% |
55% |
51% |
58% |
49% |
- |
- |
- |
- |
- |
- |
51% |
Zn |
- |
- |
- |
- |
- |
94% |
94% |
94% |
94% |
93% |
97% |
- |
- |
- |
- |
- |
- |
94% |
New Britannia Recoveries |
Lalor Gold Ore |
Cu |
93% |
92% |
91% |
91% |
91% |
91% |
93% |
92% |
92% |
91% |
92% |
- |
- |
- |
- |
- |
- |
92% |
Au |
90% |
91% |
91% |
91% |
90% |
91% |
91% |
91% |
91% |
91% |
91% |
- |
- |
- |
- |
- |
- |
91% |
Ag |
76% |
76% |
75% |
76% |
76% |
75% |
77% |
78% |
79% |
76% |
76% |
- |
- |
- |
- |
- |
- |
77% |
WIM Gold Ore |
Cu |
- |
- |
- |
- |
- |
- |
- |
- |
- |
97% |
98% |
97% |
98% |
98% |
98% |
98% |
98% |
98% |
Au |
- |
- |
- |
- |
- |
- |
- |
- |
- |
77% |
84% |
87% |
89% |
89% |
89% |
88% |
90% |
88% |
Ag |
- |
- |
- |
- |
- |
- |
- |
- |
- |
64% |
70% |
67% |
71% |
71% |
71% |
70% |
71% |
70% |
3 Zone Gold Ore |
Au |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
84 % |
85 % |
85 % |
85 % |
85% |
Snow Lake Production Profile
Lalor MineProduction |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
2031 |
LOM |
Au |
ounces (000s) |
115 |
160 |
190 |
191 |
208 |
182 |
152 |
112 |
103 |
86 |
26 |
1,524 |
Ag |
ounces (000s) |
824 |
946 |
1,134 |
1,150 |
1,188 |
1,133 |
1,079 |
912 |
889 |
626 |
142 |
10,022 |
Cu |
tonnes (000s) |
10 |
11 |
13 |
11 |
16 |
11 |
11 |
6 |
5 |
4 |
1 |
99 |
Zn |
tonnes (000s) |
61 |
51 |
46 |
46 |
35 |
41 |
38 |
38 |
41 |
25 |
2 |
424 |
1901 MineProduction |
2026 |
2027 |
2028 |
2029 |
2030 |
2031 |
LOM |
Au |
ounces (000s) |
3 |
10 |
11 |
8 |
9 |
3 |
44 |
Ag |
ounces (000s) |
49 |
219 |
134 |
149 |
128 |
72 |
751 |
Cu |
tonnes (000s) |
0 |
1 |
1 |
1 |
1 |
0 |
5 |
Zn |
tonnes (000s) |
5 |
19 |
28 |
30 |
17 |
18 |
117 |
WIM MineProduction |
2030 |
2031 |
2032 |
2033 |
2034 |
2035 |
2036 |
2037 |
LOM |
Au |
ounces (000s) |
2 |
14 |
19 |
22 |
21 |
17 |
14 |
3 |
110 |
Ag |
ounces (000s) |
10 |
56 |
54 |
65 |
61 |
50 |
44 |
8 |
347 |
Cu |
tonnes (000s) |
1 |
7 |
6 |
7 |
7 |
5 |
5 |
1 |
39 |
3 Zone MineProduction |
2030 |
2031 |
2032 |
2033 |
2034 |
2035 |
2036 |
2037 |
LOM |
Au |
ounces (000s) |
- |
- |
- |
- |
3 |
25 |
25 |
23 |
76 |
Note: Production includes metal contained in
concentrate and doré. Totals may not add up due to rounding.
Snow Lake Capital Expenditures
Capital Expenditures |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
Lalor Sustaining Capital |
C$ millions |
$106 |
$123 |
$86 |
$59 |
$48 |
$58 |
$56 |
$47 |
$4 |
$4 |
1901 Sustaining Capital |
C$ millions |
- |
- |
- |
$22 |
$32 |
$28 |
$7 |
$2 |
$6 |
$2 |
WIM Sustaining Capital |
C$ millions |
- |
- |
- |
- |
- |
- |
- |
- |
$57 |
$20 |
3 Zone Sustaining Capital |
C$ millions |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Total Sustaining Capital |
US$ millions |
$83 |
$96 |
$67 |
$62 |
$62 |
$66 |
$48 |
$38 |
$52 |
$20 |
New Britannia Project |
C$ millions |
$90 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Stall Recovery Improvement Project |
C$ millions |
- |
$24 |
- |
- |
- |
- |
- |
- |
- |
- |
Snow Lake Camp |
C$ millions |
$8 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Total Growth Capital |
US$ millions |
$77 |
$19 |
- |
- |
- |
- |
- |
- |
- |
- |
|
|
2031 |
2032 |
2033 |
2034 |
2035 |
2036 |
2037 |
LOM |
Lalor Sustaining Capital |
C$ millions |
$1 |
- |
- |
- |
- |
- |
- |
$593 |
1901 Sustaining Capital |
C$ millions |
- |
- |
- |
- |
- |
- |
- |
$98 |
WIM Sustaining Capital |
C$ millions |
$21 |
$15 |
$1 |
$1 |
$1 |
$1 |
$1 |
$118 |
3 Zone Sustaining Capital |
C$ millions |
- |
- |
- |
$14 |
$22 |
$12 |
- |
$49 |
Total Sustaining Capital |
US$ millions |
$17 |
$11 |
$1 |
$12 |
$18 |
$10 |
$1 |
$664 |
New Britannia Project |
C$ millions |
- |
- |
- |
- |
- |
- |
- |
$90 |
Stall Recovery Improvement Project |
C$ millions |
- |
- |
- |
- |
- |
- |
- |
$24 |
Shared General Plant |
C$ millions |
- |
- |
- |
- |
- |
- |
- |
$8 |
Total Growth Capital |
US$ millions |
- |
- |
- |
- |
- |
- |
- |
$96 |
Note: Totals may not add up correctly due to
rounding. “LOM” refers to life-of-mine total. Canadian dollar
capital expenditures converted to U.S. dollar capital expenditures
at a C$/US$ exchange rate of 1.27 in 2021, 1.28 in 2022, 1.29 in
2023 and 1.30 long-term.
Snow Lake Unit Operating Costs and Cash
Costs
|
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
2031 |
2032 |
2033 |
2034 |
2035 |
2036 |
2037 |
LOM |
Mining Unit Operating Costs (C$/tonne mined) |
Lalor |
$112 |
$102 |
$102 |
$98 |
$102 |
$102 |
$112 |
$114 |
$119 |
$119 |
$138 |
- |
- |
- |
- |
- |
- |
$107 |
1901 |
- |
- |
- |
- |
- |
$46 |
$87 |
$82 |
$84 |
$91 |
$122 |
- |
- |
- |
- |
- |
- |
$87 |
WIM |
- |
- |
- |
- |
- |
- |
- |
- |
- |
$51 |
$67 |
$68 |
$80 |
$81 |
$81 |
$81 |
$81 |
$75 |
3 Zone |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
$30 |
$64 |
$74 |
$80 |
$70 |
Milling Unit Operating Costs (C$/tonne
milled) |
Stall |
$26 |
$29 |
$24 |
$23 |
$24 |
$23 |
$24 |
$27 |
$25 |
$36 |
$120 |
- |
- |
- |
- |
- |
- |
$27 |
New Britannia |
$45 |
$41 |
$40 |
$40 |
$40 |
$40 |
$41 |
$41 |
$47 |
$44 |
$43 |
$50 |
$51 |
$51 |
$42 |
$44 |
$87 |
$45 |
General & Administrative Unit
Costs1 (C$/tonne
milled) |
Snow Lake |
$23 |
$26 |
$21 |
$21 |
$21 |
$20 |
$19 |
$19 |
$19 |
$18 |
$13 |
$15 |
$15 |
$15 |
$15 |
$15 |
$15 |
$20 |
1 General and administrative relate to shared
service costs for Manitoba allocated to the Snow Lake
operations.
Gold Cash Costs |
2021 |
2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
2030 |
Gold Production |
ounces(000s) |
115 |
160 |
190 |
191 |
208 |
184 |
162 |
123 |
111 |
97 |
Cash Costs |
US$/oz |
($275) |
$361 |
$434 |
$440 |
$393 |
$454 |
$382 |
$443 |
$488 |
$627 |
Sustaining Cash Costs |
US$/oz |
$550 |
$1,027 |
$784 |
$766 |
$690 |
$812 |
$680 |
$749 |
$953 |
$834 |
|
|
2031 |
2032 |
2033 |
2034 |
2035 |
2036 |
2037 |
2022-2027 Avg. |
LOM Avg. |
Gold Production |
ounces(000s) |
42 |
19 |
22 |
24 |
41 |
39 |
25 |
182 |
103 |
Cash Costs |
US$/oz |
$647 |
$669 |
$518 |
$543 |
$642 |
$754 |
$1,140 |
$411 |
$421 |
Sustaining Cash Costs |
US$/oz |
$1,056 |
$1,271 |
$571 |
$1,028 |
$1,074 |
$1,015 |
$1,170 |
$793 |
$812 |
Note:
- Production includes metal contained in concentrate and
doré.
- Cash costs include all onsite (mining, milling and general and
administrative) and offsite costs associated with Lalor, 1901, WIM
and 3 Zone and are reported net of by-product credits. By-product
credits calculated using the following assumptions: zinc price of
$1.20 per pound in 2021, $1.15 per pound in 2022, $1.10 per pound
in 2023 and long-term; copper price of $3.75 per pound in 2021,
$3.30 per pound in 2022, $3.10 per pound in 2023 and long-term;
silver price of $25.00 per ounce in 2021, $23.00 per ounce in 2022,
$20.00 per pounce in 2023, $19.00 per ounce in 2024, and $18.00 per
ounce long-term; C$/US$ exchange rate of 1.27 in 2021, 1.28 in
2022, 1.29 in 2023 and 1.30 for long-term.
- Sustaining cash cost incorporate all costs included in cash
costs calculation plus sustaining capital expenditures.
- Cash cost and sustaining cash cost are non-IFRS financial
performance measures with no standardized definition under IFRS.
For further details on why Hudbay believes cash costs are a useful
performance indicator, please refer to the company's most recent
Management's Discussion and Analysis for the year ended December
31, 2020.
i Copper and gold production growth based on mid-point of 2023
guidance ranges and 2020 actual production of 95,333 tonnes of
copper and 124,622 ounces of gold. 2020 levels were partially
impacted by an eight-week temporary mine interruption related to a
government-declared state of emergency.ii Cash cost and sustaining
cash cost are non-IFRS financial performance measures with no
standardized definition under IFRS. For further details on why
Hudbay believes cash costs are a useful performance indicator,
please refer to the company's most recent Management's Discussion
and Analysis for the three and twelve months ended December 31,
2020.iii Calculated using 2019 to 2036 production from Hudbay’s
previous NI 43-101 technical report for Constancia, dated March 26,
2018, compared to 2021 to 2037 production from the updated mine
plan plus 2019 and 2020 actual production to allow for the two mine
plans to be comparable based on the timing of Pampacancha.iv Based
on S&P Global’s 2021 cash cost curve. S&P’s costing
methodology may be different than the methodology reported by
Hudbay or its peers in their public disclosure. For details
regarding Hudbay’s actual cash costs, refer to Hudbay’s
management’s discussion and analysis for the three and twelve
months ended December 31, 2020.
Photos accompanying this announcement are available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/5c102d0b-194c-4f99-8eb0-8ce48265b414
https://www.globenewswire.com/NewsRoom/AttachmentNg/23520566-4135-4090-b7ed-38ab4ff6a6c6
https://www.globenewswire.com/NewsRoom/AttachmentNg/efb975c2-d41a-4203-a3da-4d736086e619
Hudbay Minerals (TSX:HBM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Hudbay Minerals (TSX:HBM)
Historical Stock Chart
From Sep 2023 to Sep 2024