Production Guidance

Contained Metal in Concentrate and Doré1 2022 Guidance Year Ended Dec. 31, 2021 2021 Guidance
Peru
Copper tonnes 89,000 - 115,000 77,813 72,000 - 88,000
Gold oz 70,000 - 90,000 50,306 40,000 - 50,000
Silver oz 1,620,000 - 2,100,000 1,972,949 1,800,000 - 2,170,000
Molybdenum tonnes 1,100 - 1,400 1,146 1,400 - 1,700
Manitoba
Gold oz 150,000 - 185,000 143,477 150,000 - 165,000
Zinc tonnes 50,000 - 70,000 93,529 96,000 - 107,000
Copper tonnes 12,000 - 16,000 21,657 20,000 - 24,000
Silver oz 800,000 - 1,100,000 1,072,532 1,200,000 - 1,400,000
Total
Copper tonnes 101,000 - 131,000 99,470 92,000 - 112,000
Gold oz 220,000 - 275,000 193,783 190,000 - 215,000
Zinc tonnes 50,000 - 70,000 93,529 96,000 - 107,000
Silver oz 2,420,000 - 3,200,000 3,045,481 3,000,000 - 3,570,000
Molybdenum tonnes 1,100 - 1,400 1,146 1,400 - 1,700

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

3-Year Production Outlook

Contained Metal in Concentrate and Doré1 2022 Guidance2 2023 Guidance 2024 Guidance
Peru
Copper tonnes 89,000 - 115,000 110,000 - 134,000 111,000 - 136,000
Gold ounces 70,000 - 90,000 100,000 - 125,000 110,000 - 135,000
Silver ounces 1,620,000 - 2,100,000 2,300,000 - 2,800,000 2,900,000 - 3,500,000
Molybdenum tonnes 1,100 - 1,400 2,000 - 2,400 1,700 - 2,100
Manitoba2
Gold ounces 150,000 - 185,000 160,000 - 195,000 170,000 - 200,000
Zinc tonnes 50,000 - 70,000 36,000 - 44,000 36,000 - 44,000
Copper tonnes 12,000 - 16,000 10,000 - 12,000 9,000 - 11,000
Silver ounces 800,000 - 1,100,000 1,000,000 - 1,200,000 1,000,000 - 1,200,000
Total
Copper tonnes 101,000 - 131,000 120,000 - 146,000 120,000 - 147,000
Gold ounces 220,000 - 275,000 260,000 - 320,000 280,000 - 335,000
Zinc tonnes 50,000 - 70,000 36,000 - 44,000 36,000 - 44,000
Silver ounces 2,420,000 - 3,200,000 3,300,000 - 4,000,000 3,900,000 - 4,700,000
Molybdenum tonnes 1,100 - 1,400 2,000 - 2,400 1,700 - 2,100

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

Capital Expenditures1
(in $ millions)
2022 Guidance Year Ended Dec. 31, 2021 2021 Guidance
Sustaining capital
Peru2 105.0 128.9 135.0
Manitoba3 115.0 100.4 90.0
Total sustaining capital 220.0 229.3 225.0
Growth capital
Peru 10.0 22.8 25.0
Manitoba3 50.0 119.2 105.0
Arizona4 40.0 22.9 20.0
Total growth capital 100.0 164.9 150.0
Capitalized exploration 40.0 13.3 15.0
Total capital expenditures 360.0 407.5 390.0

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

Exploration Expenditures
(in $ millions)
2022 Guidance Year Ended Dec. 31, 2021 2021 Guidance
Peru 25.0 17.3 20.0
Manitoba 15.0 10.5 10.0
Arizona and other1 40.0 25.5 34.0
Total exploration expenditures 80.0 53.3 64.0
Capitalized spending2 (40.0) (13.3) (15.0)
Total exploration expense 40.0 40.0 49.0

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

Peru Operating Costs 2022 Guidance Year Ended Dec. 31, 2021 2021 Guidance
Combined mine/mill unit operating cost (excluding COVID-19 costs)1,2 $/tonne 10.10 - 12.90 10.70 -
Combined mine/mill unit operating cost (including COVID-19 costs)1,2 $/tonne - 11.39 8.90 - 10.90
Cash cost per pound of copper2,3 $/lb 1.10 - 1.40 1.54 -

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.

Manitoba Operating Costs 2022 Guidance Year Ended Dec. 31, 2021 2021 Guidance
Combined mine/mill unit operating cost1,2 $/tonne 170 - 185 154 145 - 155
Cash cost per ounce of gold2,3 $/oz 300 - 550 - -

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.

Consolidated Copper Cash Cost1,2 2022 Guidance Year Ended Dec. 31, 2021 2021 Guidance
Cash cost $/lb 0.60 - 1.05 0.74 0.65 - 0.80
Sustaining cash cost C$/lb 1.60 - 2.25 2.07 2.05 - 2.30

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.