Our Business


CEO Message

2019 was a year of transition and positioning for Hudbay. I was named interim Chief Executive Officer in July, and in early 2020 I was appointed as Hudbay’s President and CEO. Stephen Lang, a veteran executive with experience in virtually every aspect of mining, joined our Board as its Chair in October.

In my first letter as CEO, I am pleased to report that 2019 was also a year of considerable achievements for Hudbay. Through a combination of operational know-how and technical sophistication, all driven by the energy, expertise and commitment of our people, Hudbay delivered impressive results and improved performance at our existing mines.

Hudbay’s history of finding, developing and repeatedly extending the life of orebodies has been simply phenomenal, and we continue to build on it everywhere we operate.

Peter Kukielski

Key Accomplishments

Across Hudbay, we produced 137,179 tonnes of copper in concentrate, 119,106 tonnes of zinc in concentrate and 114,692 ounces of gold in concentrate.

Generated $310.9 million from operating activities in 2019, with an ending cash balance of $396 million, and are well positioned for future growth initiatives.

Reached a community agreement to acquire Pampacancha surface rights.

Business Activities
Peru

Constancia achieved record mill throughput and copper recoveries in 2019.

Moved from original daily rate of approximately 76,000 tonnes per day to processing almost 86,000 tonnes per day.

Reached a community agreement to acquire Pampacancha surface rights.

Manitoba

Lalor and 777 increased mine output by 22% and 15%, respectively, on a year-over-year basis.

Ramped up production at Lalor from 3,600 tonnes per day to 4,500 tonnes per day.

Refurbishing of the New Britannia mill is on track for completion in 2021; Hudbay expects this will increase Lalor’s annual gold production to approximately 140,000 ounces in 2022.

Arizona/Nevada

Advanced preliminary economic studies at Mason.

Pursuing appeal of Rosemont decision through the US Ninth Circuit Court of Appeals.

Sustainability Approach

Hudbay recognizes that operating in a sustainable way is essential to meeting our goal of creating lasting value for all of our stakeholders. Everywhere we operate, we seek to minimize our impact on the environment while doing our best to ensure our activities have a positive long-term impact on the communities near our mines. Our approach aligns with our values, and makes us a better neighbour, a better partner and a better company.

Award

Hudbay’s Manitoba operations received the Towards Sustainable Mining Leadership Award in 2019

73,000 hours

of annual occupational health and safety training completed by employees and contractors in Peru

$8.1 million

contributed toward community investments and charitable donations

Vision, Mission, Values

Vision

We will be a responsible top-tier operator of long-life, low-cost mines in the Americas.

Mission

Our mission is to create sustainable value through the acquisition, development and operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining, and to see the regions and communities in which we operate benefit from our presence.

Values

Our values define our strengths and guide our actions; in challenging times, they help us to be our best.

Dignity & Respect

We treat each other in ways that bring out the very best in each of us.

Caring

We sustain and contribute to the well-being of people and the environment in which we operate.

Openness

We speak freely and listen with care about opportunities, issues and concerns.

Trustworthiness

We can count on each other to do the right thing and we follow through on our commitments.