2014 Annual and CSR Report Switch to Spanish Language
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Business and Financial Review

By the end of 2014, we had four producing mines, transforming Hudbay into a multinational company with unrivalled production growth, following several years of significant capital expenditure.

four producing mines Lalor
Reed
777
Constancia*
* On schedule to achieve commercial production during second quarter of 2015.
Hudbay Reserves*
business-01
* Hudbay reserves as of January 1, 2015, which include the contained metal values of Constancia, 777, Lalor and Reed. For the purposes of this exercise, metal prices of $3.15/lb Cu, $1.00/lb Zn, US$1,260/oz Au, US$25.00/oz Ag and US$11.50/lb Mo were used.
expected near-term production growth1
bar chart
Cu production (kt) 2014A 2015G 2016E
Reed3 9 11 17
Constancia4 0 113 111
Lalor5 3 6 4
7776 25 28 27
bar chart
Zn production (kt) 2014A 2015G 2016E
Reed3 4 0 0
Constancia4 0 0 0
Lalor5 42 67 71
7776 36 41 55
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Precious metals
production (koz)		 2014A 2015G 2016E
Reed3 8 3 4
Constancia4 0 57 90
Lalor5 24 42 37
7776 54 50 79
  1. Represents production growth from 2014 actual production to 2016 anticipated production levels.
  2. 2015 estimated production levels based on midpoint of 2015 production guidance released on January 15, 2015.
  3. Reed’s anticipated production for 2016 is based on contained metal in concentrate as disclosed in “Pre-Feasibility Study Technical Report on the Reed Copper Deposit” dated April 2, 2012 and reflects 100% attributable production to Hudbay.
  4. Constancia’s anticipated production for 2016 is based on contained metal in concentrate as disclosed in “The Constancia Project, National Instrument 43-101 Technical Report” filed on November 6, 2012.
  5. Lalor’s anticipated production for 2016 is based on contained metal in concentrate as disclosed in “Pre-Feasibility Study Technical Report, on the Lalor Deposit” dated March 29, 2012.
  6. 777’s anticipated production for 2016 is based on contained metal in concentrate as disclosed in “Technical Report 777 Mine, Flin Flon, Manitoba, Canada” dated October 15, 2012.
  7. Au-Eq. production includes production subject to streaming transactions. Silver converted to gold at a ratio of 60:1 for 2015 guidance. For 2014 production, silver converted to gold at 60.5:1, based on estimated 2014 realized sales prices.
  • Operations Summary
  • Financial Summary

Operations Summary

For the years ended December 31 2014 2013
Production (contained metal in concentrate)*
Copper (000 tonnes) 37.6 29.9
Zinc (000 tonnes)  82.5 86.5
Gold (000 troy ounces)  73.4 79.2
Silver (000 troy ounces)  745.9 772.5

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

Financial Summary

($ millions)
For the years ended December 31		 2014 2013
Revenue
Copper $234.2 $210.4
Zinc $267.1 $219.1
Gold $87.5 $99.5
Silver $14.2 $14.4
Other $5.0 $5.8
Less: Treatment and refining charges $(29.2) $(19.9)
Less: Pre-production revenue $(18.8) $(12.5)
Revenue $560.0 $516.8
Profit (loss) before tax $11.5 $(56.0)
Total assets $5,627.5 $3,844.0
Equity attributable to owners of the Company $2,446.7 $1,635.6
Cash and cash equivalents $207.3 $631.4
Dividend paid per share $0.02 $0.11