| Target |
Achievement |
Details |
| HEALTH AND SAFETY |
|
|
| Improve on our current three-year average lost time accident severity of 7.5 |
Not achieved |
As of December 31, 2017, our three-year average lost time accident severity was 9.7. This increase is due to Peru’s drop in hours from construction to production, from 20,500 in 2014 to 8,000 in 2017. Overall, the severity in Manitoba dropped by 1.4, while Peru rose by only 0.6. |
| Improve on our three-year total recordable injury frequency average of 3.1 |
Achieved |
As of December 31, 2017, our three-year average total recordable injury frequency was 2.8. |
| Progress our focus on fatality prevention by implementing our Critical Control Framework at each site |
Achieved |
Each business unit reviewed the top five hazards in their hazards registers to ensure the proper controls were in place. This fed into our overall plan to have critical controls in place so that we keep working toward our ongoing focus on fatality prevention. |
| Improve our performance benchmarking by moving to ICMM classification and boundary criteria |
Achieved |
We are now collecting this data, and when we have three years of history, we will switch our external reporting. |
| Target |
Achievement |
Details |
| COMMUNITY |
|
|
| Implement a program to achieve company-wide exposure to the human rights introductory video being developed with MAC and the Canadian government, and connect it to Hudbay policies and standards |
Achieved |
Training took place in Peru to improve human rights and security, and we held a lunch-and-learn training session in Toronto at the beginning of 2018. |
| ENVIRONMENT |
|
|
| Achieve a 1% greenhouse gas emissions intensity reduction in Manitoba |
Not achieved |
See Environment > Manitoba. |
| Achieve a 1% fresh water consumption intensity reduction in Manitoba |
Not achieved |
See Environment > Manitoba. |
| Achieve a 5% greenhouse gas emissions intensity reduction at camp in Peru |
Achieved |
See Environment > Peru. |
| Achieve a 5% fresh water consumption intensity reduction at camp in Peru |
Achieved |
See Environment > Peru. |
| GOVERNANCE |
|
|
| Adopt a new compliance management system to facilitate employee training on policies and procedures |
Achieved |
See Business Conduct. |
| Adopt and roll out a new Supplier Code of Conduct and Ethics |
Achieved |
See Business Conduct. |
| Conduct an organizational review intended to ensure Hudbay is well positioned to achieve its growth objectives |
Achieved |
See Organizing for Growth: Creating an Agile and Effective Organization. |
| FINANCIAL EXCELLENCE/GROWTH TARGETS |
|
|
| Continue to pursue efficiency improvements in our operations to sustain cost reductions achieved in 2016 and generate incremental free cash flow and increase net asset value |
Achieved |
At Constancia, we introduced automation of the controls that feed our grinding circuit, and at Lalor, we deployed underground load-haul-dump vehicles that are remotely guided by a human operator on the surface. |
| Advance high-return in-house brownfield opportunities to increase throughput from the Lalor mine and related milling facilities, incrementally adding zinc and gold production in the near and medium term, respectively |
Achieved |
We successfully ramped up Lalor mine production and processed a test batch ore from the Lalor gold zone, which demonstrated that we can achieve good recovery rates at the Flin Flon concentrator. |
| Deliver on plans to advance the development of the high-grade Pampacancha deposit so that it can start to be mined late in 2018 |
Partially achieved |
Negotiations to secure surface rights over the Pampacancha deposit are ongoing. The community provided Hudbay with access to the land to carry out early-works activities. |
| Advance permitting and technical work at the Rosemont project |
Achieved |
We released an updated feasibility study for Rosemont in March 2017, and received the Record of Decision from the US Forest Service, one of two required federal permits, in June 2017. |
| Utilize free cash flow generation to reduce debt and further reduce our cost of capital |
Achieved |
Net debt declined 43% in 2017 to $623 million, and we renegotiated our credit facilities and equipment financings to reduce the interest rates we pay on them. |
| Continue to evaluate exploration and acquisition opportunities that meet our criteria described above, and pursue those opportunities that we determine to be in the best interest of the Company and our stakeholders |
Achieved |
In January 2018, we announced the acquisition of interests in two properties within trucking distance of Constancia that we believe have significant exploration potential. |
