Canada

Lalor

Primary Metals

Gold, Zinc, Copper

Daily Ore Mined

4,500 tonnes

Mine Type

Underground

777 mine

Primary Metals

Zinc, Copper

Daily Ore Mined

3,000 tonnes

Mine Type

Underground

Hudbay is on the cusp of an exciting new growth phase in Canada, the latest chapter in close to 100 years of history.

Our Canadian business can trace its history back almost a century, to our first mines in Manitoba’s Flin Flon 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 is shifting to Manitoba’s Snow Lake region 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 fast becoming a meaningful low-cost gold producer that will benefit substantially from the refurbishment of the New Britannia mill, expected to be complete in 2022. Our 777 mine (copper, zinc, gold, silver) in Flin Flon is approaching the end of its mine life after 15 stellar years. Final production is anticipated in 2022. Flin Flon helped shape Hudbay’s values of dignity and respect, caring, openness and trust, which reflects how we will manage the closure and support for the community.

Number of Employees

1456

Mine Life

Lalor

2030

777 mine

2022

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

2020 Performance (Contained metal in concentrate produced)

Copper:

22,183 tonnes

Zinc:

118,130 tonnes

Gold:

112,227 ounces

Silver:

1,127,901 ounces

2021 Production Guidance (Contained metal in concentrate)

Copper:

20,000 – 24,000 tonnes

Zinc:

96,000 – 107,000 tonnes

Gold:

150,000 – 165,000ounces

Silver:

1,200,000 – 1,400,000 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.

AA Rating

Retained for tailings management in 2018 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. Through jobs, business opportunities, taxes and royalties, community development programs and infrastructure investments, we support and advance long-term socio-economic development. In northern Manitoba, where a large portion of the population self-identify as indigenous, we work closely with our indigenous community partners to bridge cultural gaps and improve business opportunities. 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.

^$45.4 million

Payments to suppliers

^$1,126,857

Payments to indigenous businesses

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%

Of our employees in Manitoba self-identify as indigenous

15%

Of our employees in Manitoba are female

Reserves and Resources – Lalor

Current mineral reserves and resources as of January 1, 2021

Lalor Mine Mineral Reserve and Resource Estimates^1,2,3,4,5,6	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.
¹Mineral 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.

Reserves and Resources – snow lake region

Current mineral reserves and resources as of January 1, 2021

Snow Lake Regional Deposits - Gold Mineral Reserve and Resource Estimates^{1,2,3,4,5,6,7}	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 Resources²
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.
⁶New 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).
⁷Gold 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 Metals Mineral Reserve and Resource Estimates^{1,2,3,4,5,6,7}	Tonnes	Zn (%)	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. ²Mineral 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.

Reserves and Resources – 777 Mine

Current mineral reserves and resources as of January 1, 2021

Mineral 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.

Canada

Lalor

Primary Metals

Daily Ore Mined

Mine Type

777 mine

Primary Metals

Daily Ore Mined

Mine Type

Number of Employees

Mine Life

Lalor

777 mine

2020 Performance (Contained metal in concentrate produced)

Copper:

Zinc:

Gold:

Silver:

2021 Production Guidance (Contained metal in concentrate)

Copper:

Zinc:

Gold:

Silver:

Environment

Community

People

Reserves and Resources – Lalor

Current mineral reserves and resources as of January 1, 2021

Lalor Mine

Reserves and Resources – snow lake region

Current mineral reserves and resources as of January 1, 2021

Snow Lake Regional Deposits - Gold

Snow Lake Regional Deposits - Base Metals

Reserves and Resources – 777 Mine

Current mineral reserves and resources as of January 1, 2021

Latest Report

Technical Reports

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