TSX, NYSE – HBM 2018 No. 11 Hudbay Hosts Analyst Site Visit to Constancia Mine in Peru and Announces Second Quarter 2018 Production Results for Peru Operations
TSX, NYSE – HBM
2018 No. 11
Hudbay Hosts Analyst Site Visit to Constancia Mine in Peru and Announces
Second Quarter 2018 Production Results for Peru Operations
Toronto, Ontario, July 17, 2018 – Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM)
announced today that it is hosting a site visit by analysts and investors to its Constancia mine in Peru on July 17 -18,
2018. A copy of the site visit presentation, which contains operational an d other updates, is available on Hudbay’s
website at www.hudbay.com.
Hudbay also today released its second quarter 2018 production results for its Peru operations. All amounts are in US
dollars, unless otherwise noted:
Three months ended Six months ended
Peru Production Performance Jun. 30, Jun. 30, Jun. 30, Jun. 30,
2018 2017 2018 2017
Ore mined1 tonnes 8,744,200 7,337,531 18,233,969
14,550,731
Copper % 0.47 0.55 0.49 0.55
Gold g/tonne 0.05 0.04 0.05 0.04
Silver g/tonne 4.03 3.81 4.11 3.92
Ore milled tonnes 7,726,606 6,931,690 15,577,775
13,249,299
Copper % 0.44 0.53 0.47 0.54
Gold g/tonne 0.05 0.04 0.05 0.04
Silver g/tonne 3.92 3.91 4.01 4.08
Copper concentrate tonnes 113,739 118,586 242,286 227,122
Concentrate grade % Cu 23.58 25.13 24.09 25.10
Copper recovery % 79.7 80.6 80.3 80.4
Gold recovery % 44.8 44.8 44.9 44.7
Silver recovery % 61.2 62.6 61.9 62.4
1
Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore mille d.
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Three months ended Six months ended Guidance
Contained metal in Jun. 30, Jun. 30, Jun. 30, Jun. 30, Annual
concentrate produced 2018 2017 2018 2017 2018
Copper tonnes 26,817 29,798 58,369 57,009 95,000 - 115,000
Gold oz 5,190 3,802 10,608 7,737
Silver oz 596,571 546,295 1,242,456 1,085,830
Precious metals1 oz 13,713 11,606 28,357 23,249 50,000 - 70,0002
1
Precious metals production includes gold and silver production on a gold-equivalent basis. Silver is converted to gold at a ratio of 70:1.
2
Initial 2018 guidance for Constancia precious metals production was 65,000 to 85,000 ounces.
Peru Production Review
During the second quarter of 2018, the Peru operations produced 26,817 tonnes of copper, which was approximately
10% lower than production in the second quarter of 2017 as a result of lower copper head grade in accordance with
the mine plan, offset in part by higher mill throughput.
Recoveries of copper and silver were slightly lower in the second quarter of 2018, compared to the same period in
2017, while gold recoveries remain unchanged over the same period . Several metallurgical initiatives are being
implemented by Hudbay with the intention of increasing copper recoveries as anticipated in the recently filed 2018
Technical Report for Constancia.
Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States
securities legislation. All information contained in this news release, other than statements of current and historical
fact, is forward-looking information. Often, but not always, forward -looking information can be identified by the use of
words such as “plans”, “expects”, “budget”, “guidance”, “scheduled”, “estimates”, “forecasts”, “st rategy”, “target”,
“intends”, “objective”, “goal”, “understands”, “anticipates” and “believes” (and variations of these or similar words) and
statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” “occur” or “be achie ved” or
“will be taken” (and variations of these or similar expressions). All of the forward -looking information in this news
release is qualified by this cautionary note.
Forward-looking information includes, but is not limited to, production guidance for Constancia and the planned
metallurgical initiatives that are being implemented at Constancia with the intention of increasing copper recoveries.
Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward -looking
information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered
reasonable by the company at the date the forward -looking information is provided, inherently are subject to
significant risks, uncertainti es, contingencies and other factors that may cause actual results and events to be
materially different from those expressed or implied by the forward-looking information.
The material factors or assumptions that Hudbay identified and were applied by the company in drawing conclusions
or making forecasts or projections set out in the forward-looking information include, but are not limited to:
the success of mining, processing, exploration and development activities;
the scheduled maintenance and availability of the processing facilities;
the accuracy of geological, mining and metallurgical estimates;
anticipated metals prices and the costs of production;
the supply and demand for metals the company produces;
the supply and availability of all forms of energy and fuels at reasonable prices;
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2018 No. 11
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no significant unanticipated operational or technical difficulties;
the execution of Hudbay’s business and growth strategies, including the success of its strategic investments
and initiatives;
the availability of additional financing, if needed;
the ability to complete project targets on time and on budget and other events that may affect the company’s
ability to develop its projects;
the timing and receipt of various regulatory, governmental and joint venture partner approvals;
the availability of personnel for the exploration, development and operational projects and ongoing employee
relations;
the ability to secure required land rights to develop the Pampacancha deposit;
maintaining good relations with the communities in which the company operates, including the communities
surrounding the Constancia mine;
no significant unanticipated challenges with stakeholders at the company’s various projects;
no significant unanticipated event s or changes relating to regulatory, environmental, health and safety
matters;
no contests over title to the company’s properties, including as a result of rights or claimed rights of
aboriginal peoples;
the timing and possible outcome of pending litigation and no significant unanticipated litigation;
certain tax matters, including, but not limited to current tax laws and regulations and the refund of certain
value added taxes from the Canadian and Peruvian governments; and
no significant and continuing adv erse changes in general economic conditions or conditions in the financial
markets (including commodity prices and foreign exchange rates).
The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from t hose
expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated
with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy
prices and gen eral cost escalation), uncertainties related to the development and operation of the company’s
projects, dependence on key personnel and employee and union relations, risks related to the schedule for mining
the Pampacancha deposit (including the timing and cost of acquiring the required surface rights and the impact of any
schedule delays), risks related to political or social unrest or change, risks in respect of aboriginal and community
relations, rights and title claims, operational risks and hazards, i ncluding unanticipated environmental, industrial and
geological events and developments and the inability to insure against all risks, failure of plant, equipment,
processes, transportation and other infrastructure to operate as anticipated, compliance wit h government and
environmental regulations, including permitting requirements and anti -bribery legislation, depletion of the company’s
reserves, volatile financial markets that may affect the company’s ability to obtain additional financing on acceptable
terms, the failure to obtain required approvals or clearances from government authorities on a timely basis,
uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources, and the
potential for variations in grade a nd recovery rates, uncertain costs of reclamation activities, the company’s ability to
comply with its pension and other post -retirement obligations, the company’s ability to abide by the covenants in its
debt instruments and other material contracts, tax refunds, hedging transactions, as well as the risks discussed under
the heading “Risk Factors” in Hudbay’s most recent Annual Information Form.
Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove
incorrect, actual results could vary materially from those expressed or implied in the forward -looking information.
Accordingly, you shou ld not place undue reliance on forward -looking information. Hudbay does not assume any
obligation to update or revise any forward -looking information after the date of this news release or to explain any
material difference between subsequent actual events and any forward -looking information, except as required by
applicable law.
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Note to United States Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada,
which may differ materially from the requirements of United States securities laws applicable to U.S. issuers.
About Hudbay
Hudbay (TSX, NYSE: HBM) is an integrated mining company producing copper concentrate (containing copper, gold
and silver) and zinc metal. With assets in North and South America, the company is focused on the discovery,
production and marketing of base and precio us metals. Through its subsidiaries, Hudbay owns four polymetallic
mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and
Cusco (Peru), and a copper project in Arizona (United States). The company is governed by the Canada Business
Corporations Act and its shares are listed under the symbol "HBM" on the Toronto Stock Exchange, New York Stock
Exchange and Bolsa de Valores de Lima. Hudbay also has warrants listed under the symbol “HBM.WT” on the
Toronto Stock Exchange and “HBM/WS” on the New York Stock Exchange. Further information about Hudbay can be
found on www.hudbay.com.
For further information, please contact:
Carla Nawrocki
Director, Investor Relations
(416) 362-7362