Our mission is to create sustainable value for our shareholders by acquiring, developing and operating high-quality, long-life deposits with exploration potential in mining-friendly jurisdictions.

We recognize that to consistently deliver value in the mining sector, a company needs to maintain its development pipeline by investing in discovering new mineral deposits and building the facilities, infrastructure and teams required to mine those deposits profitably. Our long history of successfully finding assets, our in-depth mining expertise in both open pit and underground mining, and our successful track record for developing and operating mines in northern Manitoba and Peru provide Hudbay with a demonstrable competitive advantage relative to our peers in the industry.

Our strategy for growth is to first explore and develop properties we already control, such as Constancia, Lalor and Rosemont. Hudbay will also pursue exploration in new prospective territories and may acquire properties that align with our strategic criteria. Additionally, we always seek to create value by managing costs at all of our operations while optimizing efficiency and safety.

To ensure that our acquisitions create value for shareholders, we evaluate opportunities by the following criteria:

• Potential acquisitions should be in politically stable, mining-friendly jurisdictions in the Americas.
• We must be able to leverage our expertise in exploring and developing volcanogenic massive sulphide and porphyry mineral deposits.
• We look for assets that offer significant potential for exploration, development and optimization.
• Large, transformational mergers or acquisitions in the mining industry tend to be risky and potentially value destructive. Unless exceptional opportunities present themselves, we generally focus on specific high-quality mines (low cost, long life), development projects and early-stage projects.
• Before any acquisition, we make sure we understand how we can add value to the property by applying our social, technical, operational and project execution expertise, or through providing the required financial capacity and other optimization opportunities.
• Acquisitions should be accretive to Hudbay on a per share basis.

Financial and Business Objectives for 2018

• Maintain our focus on generating free cash flow and increase net asset values.
• Advance in-house brownfield growth opportunities, including
• Complete the Lalor paste plant and ramp up base metal ore throughput from Lalor to 4,500 tonnes per day.
• Move toward mining of high-grade Pampacancha satellite deposit near Constancia.
• Proceed with mining Lalor gold zone.
• Advance permitting and technical work at Rosemont.
• Test promising exploration targets near Constancia and Lalor, and at greenfield sites in Peru, Chile and Canada.