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Guidance

Production Guidance

Contained Metal in Concentrate1 2019 Guidance Year ended
Dec. 31, 2018 		2018 Guidance
Manitoba2
Copper tonnes 22,000 – 25,000 32,372 27,500 – 32,500
Zinc tonnes 100,000 – 115,000 115,588 105,000 – 130,000
Precious metals3 oz 105,000 – 125,000 113,188 120,000 – 145,000
Peru
Copper tonnes 100,000 – 125,000 122,178 95,000 – 115,000
Precious metals3 oz 45,000 – 55,000 63,187 50,000 – 70,0004
Molybdenum tonnes 1,100 – 1,200 904 –
Total
Copper tonnes 122,000 – 150,000 154,550 122,500 – 147,500
Zinc tonnes 100,000 – 115,000 115,588 105,000 – 130,000
Precious metals3 oz 150,000 – 180,000 176,375 170,000 – 215,000
Molybdenum tonnes 1,100 – 1,200 904 –

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

2 2018 figures include 100% of Reed mine production; Hudbay owned a 70% interest in the Reed mine.

3 Precious metals production includes gold and silver production on a gold-equivalent basis. Silver converted to gold at a ratio of 70:1.

4 Initial 2018 guidance for Peru precious metals production was 65,000 to 85,000 ounces.

Capital Expenditure Guidance

Capital Expenditures1
(in $ millions) 		2019 Guidance Year ended
Dec. 31, 2018 		2018 Guidance
Sustaining capital
Manitoba 100.0 104.4 85.0
Peru2 95.0 40.0 50.0
Total sustaining capital 195.0 144.4 135.0
Growth capital
Manitoba 10.0 18.1 20.0
Peru3 45.0 2.3 0.0
Arizona4 50 19.7 35.0
Total growth capital 197 40.1 55.0
Capitalized exploration 15.0 11.7 10.0
Total capital expenditures 407 196.2 200.0

1 Excludes capitalized interest.

2 Includes capitalized stripping costs.

3 Initial 2018 guidance for Peru growth capital expenditures was $45.0 million. This included expenditures for developing the Pampacancha deposit and acquiring surface rights, which, as previously announced, was deferred to 2019.

42019 revised guidance for Arizona includes $30 million of Rosemont project costs and $20 million of non-project costs as announced on August 8, 2019

Exploration Guidance

Exploration Expenditures
(in $ millions) 		2019 Guidance Year ended
Dec. 31, 2018 		2018 Guidance
Peru 20.0 15.6 20.0
Manitoba 10.0 14.1 15.0
Generative and other 10.0 10.6 15.0
Total exploration expenditures 40.0 40.3 50.0
Capitalized spending1 (15.0) (11.7) (10.0)
Total exploration expense1 25.0 28.6 40.0

1 2019 guidance assumes exploration expenditures of $5 million and $10 million for Manitoba and Peru, respectively, will be capitalized.

Unit Operating Cost Guidance

Combined Mine/Mill Unit Operating Cost1,2 2019 Guidance Year ended
Dec. 31, 2018 		2018 Guidance
Manitoba C$/tonne 115 – 135 130 125 – 1353
Peru $/tonne 7.90 – 9.70 9.444 7.50 – 9.20

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 11 of this news release.

3 Initial 2018 guidance for Manitoba unit operating costs was C$110 - 123 per tonne.

4 Excluding molybdenum plant costs, combined unit costs for the full year were $9.17 per tonne.

Flin Flon Zinc Plant Guidance 2019 Guidance Year ended
Dec. 31, 2018 		2018 Guidance
Zinc metal produced tonnes 95,000 – 105,000 102,053 100,000 – 115,000
Unit operating costs1 C$/lb 0.47 – 0.55 0.50 0.40 – 0.50

1 Unit costs are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see page 11 of this news release.