Production Guidance

Contained Metal in Concentrate1 2020 Guidance 2019 Actual 2019 Guidance
Manitoba
Copper tonnes 18,000 – 22,000 23,354 22,000 – 25,000
Zinc tonnes 105,000 – 125,000 119,106 100,000 – 115,000
Precious metals2 ounces 110,000 – 135,000 110,406 105,000 – 125,000
Peru
Copper tonnes 80,000 – 95,000 113,825 100,000 – 125,000
Precious metals2 ounces 45,000 – 55,000 55,506 45,000 – 55,000
Molybdenum tonnes 1,300 – 1,600 1,272 1,100 – 1,200
Total Consolidated
Copper tonnes 98,000 – 117,000 137,179 122,000 – 150,000
Zinc tonnes 105,000 – 125,000 119,106 100,000 – 115,000
Precious metals2 ounces 155,000 – 190,000 165,912 150,000 – 180,000
Molybdenum tonnes 1,300 – 1,600 1,272 1,100 – 1,200

1 Metal reported in concentrate is prior to refining losses or deductions associated with smelter terms.

2 Precious metals production includes gold and silver production on a gold-equivalent basis. For 2019, sliver was converted to gold at a ratio of 70:1. For 2020 guidance, silver is converted to gold at a ratio of 89:1.

3-Year Production Outlook

Contained Metal in Concentrate1 2020 Guidance 2021 Guidance 2022 Guidance
Manitoba2
Copper tonnes 18,000 – 22,000 19,000 – 23,000 13,000 – 15,000
Zinc tonnes 105,000 – 125,000 115,000 – 140,000 75,000 – 90,000
Precious metals3 ounces 110,000 – 135,000 110,000 – 135,000 150,000 – 190,000
Peru
Copper tonnes 80,000 – 95,000 80,000 – 100,000 100,000 – 125,000
Precious metals3 ounces 45,000 – 55,000 85,000 – 100,000 105,000 – 130,000
Molybdenum tonnes 1,300 – 1,600 1,000 – 1,200 1,500 – 1,800
Total Consolidated
Copper tonnes 98,000 – 117,000 99,000 – 123,000 113,000 – 140,000
Zinc tonnes 105,000 – 125,000 115,000 – 140,000 75,000 – 90,000
Precious metals3 ounces 155,000 – 190,000 195,000 – 235,000 255,000 – 320,000
Molybdenum tonnes 1,300 – 1,600 1,000 – 1,200 1,500 – 1,800

1 Metal reported in concentrate is prior to refining losses or deductions associated with smelter terms.

2 Manitoba production guidance assumes the 777 mine is depleted in the second quarter of 2022, resulting in lower copper and zinc production after its closure.

3 Precious metals production includes gold and silver production on a gold-equivalent basis. Silver is converted to gold at a ratio of 89:1.

Capital Expenditure Guidance

Capital Expenditures1
(in $ millions)
2020 Guidance 2019 Actual 2019 Guidance
Sustaining capital
Manitoba2 100.0 126.3 100.0
Peru3 100.0 84.9 95.0
Total sustaining capital 200.0 211.2 195.0
Growth capital
Manitoba 80.0 14.1 10.0
Peru4 70.0 2.1 45.0
Arizona5 20.0 36.4 40.0
Total growth capital 170.0 52.6 95.0
Capitalized exploration 15.0 15.7 15.0
Total capital expenditures 385.0 279.5 305.0

1Excludes capitalized costs not considered to be sustaining or growth capital expenditures.

2Manitoba sustaining capital expenditures exclude the anticipated $20 million expected to be spent on improvements to the legacy Flin Flon tailings facilities since they are associated with the updated decommissioning and restoration liability

3Includes capitalized stripping costs.

4Peru’s growth capital expenditures include costs associated with project development and acquiring the surface rights. Some additional capital costs remain outstanding in recognition of current uses of land and the company intends to enter into agreements to address these matters prior to commencing mining activities.

5Arizona spending includes capitalized costs associated with the Rosemont and Mason projects.

Exploration Guidance

Exploration Expenditures
(in $ millions)
2020 Guidance 2019 Actual 2019 Guidance
Peru 15.0 17.1 20.0
Manitoba 10.0 22.9 10.0
Generative and other - 6.5 10.0
Total exploration expenditures 25.0 46.5 40.0
Capitalized spending1 (15.0) (15.7) (15.0)
Total exploration expense1 10.0 30.8 25.0

Unit Operating Cost Guidance

Combined Mine/Mill Unit Operating Cost1,2 2020 Guidance 2019 Actual 2019 Guidance
Manitoba C$/tonne 130 – 140 134 115 – 135K
Peru $/tonne 8.30 – 10.25 9.50 7.90 – 9.70

1 Reflects combined mine, mill and G&A costs per tonne of milled ore. Manitoba 2018 figures include the cost of ore purchased from the joint venture partner at the Reed mine. Peru costs reflect the deduction of expected capitalized stripping costs.

2 Combined unit costs are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see page 14 of our February 20, 2020 news release.

Flin Flon Zinc Plant Guidance 2020 Guidance Year ended
Dec. 31, 2019
2019 Guidance
Zinc metal produced tonnes 100,000 – 112,000 103,340 95,000 – 105,000
Unit operating costs1 C$/lb 0.45 – 0.52 0.49 0.47 – 0.55

1 Unit costs are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see page 14 of our February 20, 2020 news release.