In 2017, we stayed focused on costs at all of our operations, while delivering solid performance in terms of production, exceeding our guidance on copper and delivering zinc and precious metals production within guidance ranges. Aided by a favourable pricing environment, we generated positive free cash flow throughout the year. In both Manitoba and Peru, we signed three-year collective bargaining agreements, which contribute to a strong platform for growth over the next several years.

2017 Performance Highlights

• Company-wide, produced 159,192 tonnes of copper in concentrate, 135,156 tonnes of zinc in concentrate and 158,411 ounces of precious metals in concentrate
• Maintained cost discipline with a consolidated cash cost of $0.84 per pound copper, compared to $0.93 per pound in 2016, and an all-in sustaining cash cost of $1.52 per pound

Manitoba Business Unit

• Progressed with efforts to ramp up ore production at Lalor; on track for an expanded 4,500 tonnes-per-day mine plan by the third quarter of 2018
• Employed Flin Flon concentrator to process Lalor production that exceeded the Stall concentrator’s capacity 
• Moved forward on plan to begin mining Lalor gold zone in 2018
• Introduced autonomous, long-haul-dump (LHD) vehicles to operations at Lalor
• Determined to keep Flin Flon processing assets on care and maintenance after anticipated Reed (2018) and 777 (2020) mine closures to maintain regional optionality
• Teams from Flin Flon and Snow Lake finished first and second, respectively, in the 2017 Manitoba Provincial Mine Rescue Competition

South American Business Unit

• Reported zero lost time accidents related to mine site operations at Constancia
• Undertook negotiations, completed in January 2018, to acquire three mining properties near our Constancia operations
• Initiated a project to automate controls that feed our Constancia grinding circuit, which will not impact jobs and will help to optimize production
• Proceeded with plans to mine high-grade Pampacancha satellite, commencing in 2018
• Achieved 100% of the objectives laid out in the 2017 Biodiversity Action Plan for Constancia

Corporate Exploration

• Reported zero lost time accidents related to exploration carried out in northern Chile
• Expanded land tenure in Chile through new staking and option agreements
• Applied innovative techniques for exploration under covered areas at our project in northern Chile