We believe that our broader commitment to sustainability needs to be anchored by strong economic performance. To realize this, we will continue to pursue growth through a combination of aggressive mineral exploration and seeking out opportunistic investments.

Financial Performance

2007 has been another solid year for HudBay Minerals Inc. with record high revenues of almost $1.3 billion.We remain financially strong with excellent cash flows and a solid balance sheet that position the company well for continued growth.

Key 2007 Financial Results
		% change from 2006
Revenue (in thousands of CDN $)	$1,269,841	12%
Earnings before tax (in thousands of CDN $)	$365,456	(17%)
Basic Earnings Per Share	$1.79	(66%)
Cash & Cash Equivalents (in thousands of CDN $)	$757,574	96%

Mineral Exploration

We strive to actively expand our portfolio of quality mineral reserves and resources. As a result of the 2007 exploration program, we have, for a third consecutive year, largely replaced our in-mine reserves and resources. In fact, 2007 saw the discovery of Lalor Lake Zinc deposit, one of the most important new zinc discoveries in Canada.

Optimization of Ongoing Operations

We aim at continuously improving processes in order to increase the efficiency of our extraction and processing operations. As a result of our commitment to continuous improvement, we were able to increase our production of zinc, copper, gold and silver in 2007, with about the same cost per tonne, when excluding currency fluctuations.

Standards of Excellence

We want to ensure that all of our production operations are certified to OHSAS 18001 occupational health and safety and ISO 14001 environmental certification systems, and that appropriate locations are certified ISO 9001. As of 2007, all of our production subsidiaries were certified to both OHSAS health and safety and ISO environmental certification standards.

Corporate Governance

HudBay Minerals Inc.’ Board of Directors has established a Corporate Governance and Nominating Committee in order to ensure that we comply with applicable regulatory requirements as well as identifying and integrating best practices. HudBay is in compliance with the regulatory requirements relating to the disclosure of material information and to financial reporting.