Production Guidance
1 Metal reported in concentrate and doré is prior to refining losses or deductions associated with smelter terms.
3-Year Production Outlook
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.
Capital Expenditure Guidance
1 Excludes capitalized costs not considered to be sustaining or growth capital expenditures.
2 Includes capitalized stripping costs.
3 Capital expenditures are converted into U.S. dollars using an exchange rate of 1.27 Canadian dollars.
4 Arizona spending includes capitalized costs associated with the Copper World and Rosemont projects.
Exploration Guidance
1 Arizona exploration expenditures include an additional $15M in capitalized exploration announced on June 8, 2022.
2 Includes an additional $25M in capitalized exploration in Arizona announced on June 8, 2022.
Unit Cost and Cash Cost Guidance
1 Reflects combined mine, mill and G&A costs per tonne of ore milled. Peru costs reflect the deduction of expected capitalized stripping costs. Unit operating cost guidance in 2022 excludes estimated COVID-19 related costs of approximately $18.0 million. 2021 actual COVID-19 costs incurred was $19.8 million, which was higher than budgeted in 2021.
2 Combined unit costs and cash cost per pound of copper produced are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the “Non-IFRS Financial Reporting Measures” section Hudbay’s February 23, 2022 news release.
3 Cash cost, net of by-product credits, per pound of copper contained in concentrate. By-product credits are calculated using the gold and silver deferred revenue drawdown rates in effect on December 31, 2021 and the following commodity prices: $1,800 per ounce gold, $24.00 per ounce silver and $13.00 per pound molybdenum. Peru cash cost guidance was introduced in 2022 and is not available for 2021.
1 Reflects combined mine, mill and G&A costs per tonne of ore milled.
2 Combined unit costs and cash costs per ounce of gold produced are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the “Non-IFRS Financial Reporting Measures” section of Hudbay’s February 23, 2022 news release.
3 Cash cost, net of by-product credits, per ounce of gold contained in concentrate and doré. By-product credits are calculated using the following commodity prices: $1.25 per pound zinc (excludes premium), $24.00 per ounce silver, $4.00 per pound copper and an exchange rate of 1.27 C$/US$. Manitoba cash cost guidance was introduced in 2022 and is not available for 2021. Similarly, reported actual cash cost per pound of gold for Manitoba will be introduced in 2022 and is not available for 2021.
1 Cash cost and sustaining cash cost, net of by-product credits, per pound of copper contained in concentrate. By-product credits are calculated using the gold and silver deferred revenue drawdown rates in effect on December 31, 2021 and the following commodity prices: $1,800 per ounce gold, $24.00 per ounce silver, $1.25 per pound zinc (excludes premium), $13.00 per pound molybdenum and an exchange rate of 1.27 C$/US$.
2 Cash cost and sustaining cash cost are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of Hudbay’s February 23, 2022 news release.