Canada

Copper Mountain

Primary Metals

Copper, Gold,
Silver

Daily Ore Mined

45,000 tonnes

Mine Type

Open Pit

Snow Lake

Primary Metals

Gold, Zinc,
Copper

Daily Ore Mined

4,650 tonnes

Mine Type

Underground

With close to 100 years of history, Hudbay is proud to be the third-largest copper producer in Canada with operations in British Columbia and Manitoba.

Our Canadian business can trace its history back almost a century, to our first mines in Manitoba’s Flin Flon Snow Lake Greenstone Belt. It was there we laid the foundation for the mine-building expertise and community engagement that distinguish Hudbay to this day. Our operational focus in Canada, with two operating mines in British Columbia and Manitoba, is core to our ability to create sustainable long-term value for shareholders.

With the addition of the Copper Mountain Mine, Hudbay has become the third-largest copper producer in Canada. The Copper Mountain Mine, located south of Princeton, British Columbia, is a conventional open pit, truck and shovel operation. Hudbay owns 75% of the Copper Mountain Mine, with the remainder owned by Mitsubishi Materials Corporation. The mine has a 45,000 tonnes per day plant that utilizes a conventional crushing, grinding and flotation circuit to produce copper concentrates with gold and silver credits. Hudbay will be releasing an updated technical report for Copper Mountain later in 2023 to provide reserve and resource estimates and an updated life of mine plan.

Manitoba’s Snow Lake region continues to be an area of opportunity as our reserves, processing capacity and exploration activities expand in the region, setting the stage for a new phase of growth. Our Lalor mine (gold, zinc, copper, silver) in Snow Lake is a meaningful low-cost gold producer that substantially benefited from the refurbishment of the New Britannia mill in 2021. Hudbay has been actively conducting drilling activities testing the down-plunge gold and copper extensions of the Lalor deposit, in the first step out drilling in the deeper zones at Lalor since the initial discovery of the gold zones in 2009.

Number of Employees

Copper Mountain

526

Snow Lake

1011

Mine Life

Copper Mountain

+25 years

Snow Lake

+15 years

The electricity used to run our processing plants is primarily renewable.

Snow Lake 2022 Performance (Contained metal in concentrate produced)

Copper:

14,778 tonnes

Zinc:

55,381 tonnes

Gold & DORÉ:

161,471 ounces

Silver:

851,942 ounces

Snow Lake 2023 Guidance (Contained metal in concentrate)

Copper:

9,000 - 12,000 tonnes

Zinc:

28,000 - 36,000 tonnes

Gold & DORÉ:

175,000 - 205,000ounces

Silver:

750,000 - 1,000,000 ounces

Environment

We take environmental performance seriously, and are implementing the Mining Association of Canada’s TSM (Towards Sustainable Mining) protocols for Biodiversity, Energy and Greenhouse Gas and Tailings at all of our operations. These protocols provide clear guidelines for monitoring, measuring and reporting on performance. They emphasize management processes, senior executive oversight and expert third-party reviews, which help to ensure appropriate technical standards of construction, maintenance and operation.

AAA Rating

Attained for tailings management in the latest TSM Progress Report

Community

Hudbay didn’t just build a successful business in northern Manitoba – it helped build successful communities like the city of Flin Flon. We recognize and acknowledge the land on which we will operate in Manitoba is on the traditional territory of the Swampy Cree and Woodland Cree, the Anishinaabe, OjiCree, Dene and homeland of the Métis Nation peoples.

We acknowledge that we operate in British Columbia on the unceded territories of the Upper and Lower Similkameen Indian Bands. Copper Mountain has participation agreements in place with the Upper Similkameen Indian Band and the Lower Similkameen Indian Band as well as support from the town of Princeton and the province of British Columbia.

Through jobs, business opportunities, taxes and royalties, community development programs and infrastructure investments, we support and advance long-term socio-economic development. Developing job skills within indigenous communities not only helps the communities; it also benefits Hudbay by growing the base from which we hire and increasing the number of qualified suppliers from which we procure goods and services.

14.3%

Of our employees in British Columbia self-identify as indigenous

13.6%

Of our employees in Manitoba self-identify as indigenous

People

We recognize that employing people with different backgrounds, experiences and perspectives makes us stronger and fosters collaboration. In Manitoba, we partnered with the Northern Manitoba Sector Council to increase recruitment of indigenous employees. Twelve people have been hired under the program so far. Separately, two women in our Manitoba Business Unit founded the Hudbay Women’s Network, an employee-led voluntary resource group. The group’s founding principle is gender inclusion and its goal is to empower Hudbay employees by providing a vehicle for professional growth and a strong voice. To learn more, please visit: Hudbay Women’s Network: Fostering Gender Diversity in Mining.

17.1%

Of our employees in British Columbia are female

16.6%

Of our employees in Manitoba are female

Reserves and Resources – Copper Mountain

A new technical report for the Copper Mountain mine is expected to be released in the fourth quarter of 2023. The new technical report will include an updated mine plan and updated annual production and cost estimates. The new technical report will also include updated mineral reserve and resource estimates and mill throughput assumptions.

Reserves and Resources – Lalor

Current mineral reserves and resources as of January 1, 2023

Lalor Mine and 1901 Deposit Mineral Reserve and Resource Estimates^{1,2,3,4,5,6,7}	Tonnes	Au Grade (g/t)	Zn Grade (%)	Cu Grade (%)	Ag Grade (g/t)
Base Metal Zone Reserves
Proven - Lalor	5,977,000	2.5	5.17	0.42	28.7
Proven - 1901	1,278,000	2.2	8.14	0.30	27.4
Probable - Lalor	522,000	2.6	4.59	0.36	30.3
Probable - 1901	245,000	0.8	10.70	0.30	25.2
Total Proven and Probable - Base Metal	8,022,000	2.5	5.77	0.39	28.5
Gold Zone Reserves
Proven - Lalor	3,345,000	5.1	0.77	0.54	29.2
Proven - 1901	101,000	2.9	1.32	1.00	19.2
Probable - Lalor	3,779,000	5.5	0.41	1.12	25.6
Probable - 1901	54,000	1.7	0.45	1.82	5.6
Total Proven and Probable - Gold	7,279,000	5.3	0.59	0.86	27.0
Total Proven and Probable (Base Metal and Gold)	15,303,000	3.8	3.31	0.61	27.8
Base Metal Zone Resources
Inferred - Lalor	1,947,000	1.7	5.56	0.34	32.0
Inferred - 1901	312,000	1.5	5.86	0.19	32.0
Total Inferred - Base Metal	2,259,000	1.7	5.60	0.32	32.0
Gold Zone Resources
Inferred - Lalor	3,764,000	5.0	0.27	1.68	26.4
Inferred - 1901	1,599,000	5.5	0.30	0.85	16.5
Total Inferred - Gold	5,363,000	5.1	0.28	1.43	23.5
Total Inferred (Base Metal and Gold)	7,622,000	4.1	1.86	1.10	26.0

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 do not include factors for mining recovery or dilution.
³ Base metal mineral resources are estimated based on the assumption 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.
⁴ Long-term metal prices of $1.20 per pound zinc, $1,650 per ounce gold, $3.60 per pound copper, and $22.00 per ounce silver with an exchange rate of 1.33 C$/US$ were used to estimate mineral reserves and resources.
⁵ Lalor mineral reserves and resources are estimated using NSR cut-off ranging from C$137 to C$168 per tonne assuming a long hole mining method and depending on the mill destination.
⁶ Individual stope gold grades at Lalor were capped at 10 grams per tonne as a prudent estimate until reserves-to-mill reconciliations can be developed to support the recovery of higher-grade gold. This capping method resulted in an approximate 3% reduction in the overall gold reserve grade at Lalor.
⁷ 1901 mineral reserves and resources are estimated using a minimum NSR cut-off of C$166 per tonne assuming the material is mined via post pillar cut-and-fill methods and is processed at the Stall mill.

Reserves and Resources – snow lake region

Current mineral reserves and resources as of January 1, 2023

Snow Lake Regional Deposits - Gold Mineral Reserve and Resource Estimates^{1,2,3,4,5,6,7,8}	Tonnes	Au Grade (g/t)	Zn Grade (%)	Cu Grade (%)	Ag Grade (g/t)
Probable Reserves
WIM	2,450,000	1.6	0.25	1.63	6.3
3 Zone	660,000	4.2	-	-	-
Total Probable (Gold)	3,110,000	2.2	0.20	1.28	5.0
Inferred Resources
New Britannia	2,750,000	4.5	-	-	-
Birch	570,000	4.4	-	-	-
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 do not include factors for mining recovery or dilution.
³ Gold mineral resources are estimated based on the assumption that they would be processed at the New Britannia concentrator.
⁴ Long-term metal prices of $1.15 per pound zinc, $1,500 per ounce gold, $3.45 per pound copper, and $20.00 per ounce silver with an exchange rate of 1.30 C$/US$ were used to confirm the economic viability of the mineral reserve estimates.
⁵ 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.
⁶ 3 Zone mineral reserves are estimated using 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.
⁷ 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).
⁸ Mineral reserves and resources were initially estimated using metal price assumptions that vary marginally over the assumptions used to estimate mineral reserves at Lalor. In the Qualified Person’s opinion, the combined impact of these small variations does not have any impact on the mineral reserve and resource estimates.

Snow Lake Regional Deposits - Base Metals Mineral Reserve and Resource Estimates^{1,2,3,4,5,6,7}	Tonnes	Au Grade (g/t)	Zn Grade (%)	Cu Grade (%)	Ag Grade (g/t)
Indicated Resources
Pen II	470,000	0.3	8.89	0.49	6.8
Talbot	2,190,000	2.1	1.79	2.33	36.0
Total Indicated (Base Metals)	2,660,000	1.8	3.04	2.01	30.9
Inferred Resources
Watts	3,150,000	1.0	2.58	2.34	31.0
Pen II	130,000	0.3	9.81	0.37	6.8
Talbot	2,450,000	1.9	1.74	1.13	25.8
Total Inferred (Base Metals)	5,730,000	1.3	2.39	1.78	28.3

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 do not include factors for mining recovery or dilution.
³ Base metal mineral resources are estimated based on the assumption that they would be processed at the Stall concentrator.
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 Watts and Pen II mineral resources were initially estimated using metal price assumptions that vary marginally over the assumptions used to estimate mineral resources at Lalor. In the Qualified Person’s opinion, the combined impact of these small variations does not have any impact on the mineral resource estimates.
⁷ 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 a 51% interest in the Talbot project.

Canada

Copper Mountain

Primary Metals

Daily Ore Mined

Mine Type

Snow Lake

Primary Metals

Daily Ore Mined

Mine Type

Number of Employees

Copper Mountain

Snow Lake

Mine Life

Copper Mountain

Snow Lake

Snow Lake 2022 Performance (Contained metal in concentrate produced)

Copper:

Zinc:

Gold & DORÉ:

Silver:

Snow Lake 2023 Guidance (Contained metal in concentrate)

Copper:

Zinc:

Gold & DORÉ:

Silver:

Environment

Community

People

Reserves and Resources – Copper Mountain

Reserves and Resources – Lalor

Current mineral reserves and resources as of January 1, 2023

Lalor Mine and 1901 Deposit

Reserves and Resources – snow lake region

Current mineral reserves and resources as of January 1, 2023

Snow Lake Regional Deposits - Gold

Snow Lake Regional Deposits - Base Metals

Latest Report

Technical Reports

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