2019 Financial Performance

Throughout 2019, Hudbay drew upon our strengths across the mining lifecycle and upon our focus on continuous improvement, to deliver reliable operating results. Along with achieving full-year production and unit cost guidance in both Peru and Manitoba, we stayed on track for meeting our copper production guidance for the fifth consecutive year. Our focus in 2020 will be on implementing low-risk, quick-return investments – in exploration, infrastructure and operational efficiency – targeted at or near to our existing assets. We have committed $25 million to exploration in the coming year.

Financial Highlights

2019 marked Hudbay’s fifth consecutive year of achieving our annual copper production guidance. The Company’s efforts over the year put Hudbay on track for delivering on our next phase of growth. Key milestones will include mining the high-grade Pampacancha satellite deposit in Peru in 2020 and completing the refurbishment of the New Britannia mill in Manitoba by 2022. Hudbay looks forward to delivering significant near-term copper and gold production growth as we execute on our strategic plan.

Cash and cash equivalents of $396.1 million, as at December 31, 2019, position the Company well for executing future growth initiatives.

Reached a community agreement to acquire Pampacancha surface rights.

2020 production guidance of 107,500 tonnes of copper and 172,500 ounces of precious metals.

Copper and precious metals production expected to grow by 18% and 67%, respectively, by 2022.

Operations Summary
For the years ended December 31
Production (contained metal in concentrate)1 2019 2018
Copper (000 tonnes) 137.2 154.6
Zinc (000 tonnes) 119.1 115.6
Gold (000 ounces) 114.7 119.9
Silver (000 ounces) 3,585.3 3,954.5
Financial Summary
Financial Condition (in $000s) Dec. 31, 2019 Dec. 31, 2018
Cash and cash equivalents $396,146 $515,497
Working capital 271,284 445,228
Total assets 4,455,961 4,685,635
Total long-term debt 985,255 981,030
Equity 1,848,123 2,178,856
Financial Performance (in $000s, except per share amounts) Dec. 31, 2019 Dec. 31, 2018
Revenue $1,273,439 $1,472,366
Profit before tax (452,763) 170,837
Basic and diluted earnings (loss) per share2 (1.32) 0.33
Profit (loss) (343,810) 85,416
Operating cash flows before change in non-cash working capital 307,284 501,352
Production
Contained metal in concentrate3
Copper (tonnes) 137,179 154,550
Gold (ounces) 114,692 119,882
Silver (ounces) 3,585,330 3,954,469
Zinc (tonnes) 119,106 115,588
Metal sold
Payable in metal in concentrate3
Copper (tonnes) 128,519 147,923
Gold (ounces) 108,999 113,097
Silver (ounces) 3,452,926 3,372,353
Refined zinc (tonnes) 104,319 115,723

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

2 Attributable to owners of the Company.

3 Metal reported in concentrate is prior to deductions associated with smelter contract terms.
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