Reasons-to-Vote-for-Our-Nominees

The disciplined execution of Hudbay’s long-term growth strategy by its Board and management team is creating shareholder value today and positioning the company to create further value tomorrow. Our share price performance reflects our positive momentum, but this momentum did not happen overnight. Our success reflects many years of focused and sustained efforts of a Board and management team who have the skills and experience required to successfully build and operate Hudbay’s assets and deliver on additional near-term catalysts.

In addition to a talented and experienced management team, Hudbay’s success is also attributed to the engagement of an experienced and independent Board, which has been thoughtfully refreshed on an ongoing basis. Our directors leverage their diverse backgrounds to bring a variety of views to the boardroom table and to effectively oversee management’s successful execution of the long-term value creation plan. The result of this disciplined effort is that Hudbay has made value-enhancing decisions by securing and developing the right assets at the right time. Building on the experience of each successful decision and subsequent execution, Hudbay’s capable and experienced management team built the company from a single asset to one with a portfolio of world-class assets with a substantial pipeline of value creation catalysts. The merits of Hudbay’s consistent approach to value creation are reflected in the positive momentum across the business and in the recent performance of our shares.

HUDBAY’S STRONG AND ACCELERATING PERFORMANCE REFLECTED IN SHARE PRICE, WITH ADDITIONAL NEAR-TERM CATALYSTS EXPECTED

SUCCESSFUL EXECUTION OF HUDBAY’S STRATEGIC PLAN IS DRIVING OUTPERFORMANCE

Our Board and management team have delivered not only significant recent gains in the price of Hudbay’s shares (approximately 50% in the last six months), but also long-term total shareholder return (TSR) outperformance relative to Hudbay’s peer group over the most recent one-, three- and five year periods.

OVER 80% OF ANALYSTS COVERING HUDBAY HAVE RAISED THEIR PRICE TARGET SINCE JANUARY 1, 2019

HUDBAY HAS RECEIVED 4X MORE TARGET PRICE INCREASES, RELATIVE TO THE AVERAGE OF ITS PEERS

HUDBAY’S BOARD AND MANAGEMENT ARE EXECUTING AN EFFECTIVE LONG-TERM GROWTH STRATEGY

Hudbay has grown from a single asset company to a leading mid-tier copper producer with a world-class portfolio of long- life, low-cost assets in mining-friendly jurisdictions. Our long-life assets provide exposure to multiple commodity price cycles, while our low costs of production ensure we can continue to generate cash flow through downturns in the commodity cycle.

We also offer the highest leverage to the copper price among our peers. This provides our shareholders the best opportunity to realize gains as a result of future increases in the copper price. Wood Mackenzie, a leading industry analyst and consultant, is predicting a near-term structural copper supply deficit and forecasts a copper price of $3.90/lb by 2020.

SUBSTANTIAL FREE CASH FLOW GENERATION AND DEBT REDUCTION

DELIVERING THE PLAN HAS INCREASED HUDBAY’S NAVPS BY 40%

Our strategy, combined with our achievement of a number of recent operating and development milestones, has resulted in a significant increase to the net asset value of your shares. With a number of additional key catalysts in sight, our leadership team is poised to continue to outperform our peers and deliver value to our shareholders.

HUDBAY HAS DELIVERED SHAREHOLDER VALUE FROM ALL ASPECTS OF THE MINING BUSINESS

Constancia Value Creation

Constancia is a compelling example of our disciplined and effective approach to value creation. We purchased Constancia as a greenfield project in 2011 and brought it into production in four years with a ramp-up that was four times faster than our peers’ average. Our work at Constancia is cited as a best-in-class example of mine development by global mining giant BHP.

Today, Constancia is the lowest cost sulphide copper mine in South America and, since we announced the acquisition the mineral reserves have increased by nearly 100%.

LOWEST COST SULPHIDE COPPER MINE IN SOUTH AMERICA

Hudbay is working effectively with all levels of government in Peru and has built relationships with local communities based on respect and the realization of mutual benefits. We are focused adding value by negotiating an agreement with a local community that would allow us to bring the high-grade Pampacancha deposit into production, while at the same time negotiating further agreements to allow for the exploration and development of very prospective nearby exploration properties we acquired in 2018.

Constancia is continuing to deliver value to shareholders. Our ongoing optimization of the mine is evidenced by the record throughput and recoveries we achieved in 2018, positioning Constancia to continue to provide value for a long time to come.

Delivering Results. With the flagship Constancia copper mine exceeding expectations and the Lalor expansion nearing completion, Hudbay’s operations are generating substantial free cash.”

PARADIGM CAPITAL – FEBRUARY 22, 2019



Lalor – New Opportunities in Hudbay’s Backyard

Hudbay’s Lalor mine is the latest in a long history of exploration and operational success at our Manitoba operations. Lalor reached commercial production only seven years after its discovery and our world-class operations and development teams continue to identify new ways to create additional value. We recently announced that Lalor’s annual gold production would more
than double from current levels with average annual production of approximately 140,000 ounces during the first five years of production from the New Britannia mill. The refurbishment of the New Britannia mill will substantially increase Lalor gold recoveries and has contributed to a life of mine increase in gold production of 91%. Lalor’s recent reserves update increased in-situ contained gold by 65%, copper by 23%, zinc by 11% and silver by 15%.

We also recently announced the discovery of a high grade zinc and gold deposit near Lalor that is 100% owned by Hudbay. This deposit, along with other mineral resources in the area, has the potential to extend Lalor’s mine life well beyond its current reserves. Lalor’s future is very bright

as a result of the disciplined and focused efforts of the leadership team over the last few years and shareholders stand to be rewarded.

Lalor Sparkles in the Spotlight. Bottom Line: The Lalor technical report highlights Hudbay’s low-risk organic growth opportunities. The gold zone continues to grow and management’s clear plan for refurbishing New Britannia and delivering higher throughput and recoveries has created significant value… Significant behind the scenes work has been done over the past few years, and this work has been rewarded with significant improvements, especially to gold…”

BMO CAPITAL MARKETS, FEBRUARY 19, 2019

Best-In-Class Mine Development Experience Will Unlock Substantial Value at Rosemont

Rosemont is another compelling example of Hudbay’s disciplined and targeted value creation strategy. We acquired the world-class Rosemont project in 2014. Since then, we
have steadily advanced the project by successfully navigating a complicated and rigorous permitting process, most recently obtaining the section 404 water permit from the Army Corps
of Engineers. The project is now fully-permitted and we’ve indicated financing activities and early works development as we look ahead to construction of this exciting asset by the same team that built Constancia.

The receipt of Rosemont’s 404 water permit is a major milestone in our efforts to build a modern mine that will fulfil the requirements of its permits, create jobs and provide benefits for all of our stakeholders,” said Alan Hair, Hudbay’s president and chief executive officer. “There is positive momentum at Rosemont and across our business as we continue to position Hudbay to create long-term and sustainable value for shareholders.”

Once completed, Rosemont is expected to increase our copper-equivalent production by approximately 50% and EBITDA by nearly 100%.

BUILDING ROSEMONT WILL UNLOCK SUBSTANTIAL VALUE FOR HUDBAY SHAREHOLDERS

“…With the [Rosemont] project now fully permitted, we anticipate development to begin shortly. We view this update as very positive for HBM shares. Moreover, the impressive recent momentum continues.”

SCOTIABANK – MARCH 11, 2019



Strong Commitment to Responsible Engagement

While driving this success, we have maintained a strong commitment to responsible engagement with our stakeholders. We expect to build on our recent successes through the realization of many near-term value creation catalysts including:

  • Early works and the sale of a joint venture interest at Rosemont in advance of a construction decision;

  • Upgrading mineral resources and continuing to make new discoveries around Lalor that will further extend the mine life;

  • Securing access to high grade deposits near Constancia and commencing exploration and development; and

  • Advancing our recently acquired Ann Mason copper project in Nevada and other exciting opportunities in our project pipeline.

Hudbay is creating strong and sustainable value today and is well-positioned to continue creating value in the future for all of our shareholders.

HUDBAY’S HIGHLY QUALIFIED BOARD AND MANAGEMENT ARE DRIVING HUDBAY’S GROWTH

Hudbay’s Board works closely with our management team to drive the business forward. The Board has unique insight into Hudbay’s assets and strengths, and brings the requisite skill set and expertise to successfully oversee the execution of the company’s strategic plan. Our directors and management team have extensive and proven track records:

  • Disciplined approach to M&A – Hudbay’s successful acquisitions – at the right time, in the right place, for the right price – have positioned Hudbay to create the value it is delivering today and will deliver in the future. Successful acquisitions include:

    • Constancia (2011)

    • Rosemont (2014/2019)

    • New Britannia Mill (2015)

    • Constancia Satellite Deposits (2017/2018)

    • Ann Mason (2018)

    • Wim Deposit (2018)

  • Community relations – Our Board and management have a history of working successfully with all levels of government and local communities to develop positive relationships. The company takes pride in its best-in-class entry into Peru, including execution of over 90 social agreements since 2012 and several industry awards;

  • Building greenfield projects into mines – Many members of the current Board and management team oversaw the complex and simultaneous development of the Constancia, Lalor and Reed mines between 2012 and 2014. Lalor and Reed achieved commercial production in 2014, while Constancia achieved commercial production in 2015;

  • Overseeing a complex portfolio of assets in multiple jurisdictions – Under Alan Hair and the Board’s leadership, Hudbay has grown from a single asset company into one with a diversified portfolio of operating mines and an extensive development pipeline to perpetuate production growth. Optimally balancing exploration, development and production across the Americas requires seasoned professionals at all leadership levels; and;

  • Safe, Responsible Mining - Hudbay is proud of its industry-leading safety record and its focus on operating in a socially and environmentally responsible manner in all jurisdictions. This is a direct result of our directors, who are committed to the company's successful approach to environmental, social and governance (ESG) matters.

STRONG CORPORATE GOVERNANCE

Hudbay has an independent, diverse and highly qualified Board that has been consistently recognized for its robust corporate governance practices:

  • Institutional Shareholder Services ("ISS") has recommended FOR the election of all Hudbay Directors at every annual shareholders' meeting over the last ten years (2009 - 2018)

  • Hudbay is ranked in the top 20% of all S&P TSX Composite Index constituents for overall governance by ISS

  • The company was recently ranked in the top 50 by The Globe and Mail's 2018 Board Games Corporate Governance Ranking - the only base metal miner to be ranked in the top 100

  • 100% of the Board (excluding the CEO) is independent

Hudbay has also demonstrated an ongoing commitment to Board refreshment. As part of its ordinary board renewal process, the Board has nominated Richard Howes for election to the Board. Mr. Howes is President and Chief Executive Officer of Dundee Precious Metals, and the Board believes his strong technical perspective, including the use of innovative mining technology, and leadership experience would make him an excellent addition to our Board.

Further, despite Waterton's refusal to engage constructively on a settlement that would be in the best interests of all shareholders and avoid the cost and distraction of a contested shareholder meeting, our recommended slate of directors includes two of Waterton’s nominees - Mike Anglin and David Smith, who would serve on an 11 member Board, an increase from the current 10 directors. Hudbay’s Board has determined that Messrs. Anglin and Smith have skills and experience that could allow them to make valuable contributions to the Board.

Assuming that shareholders vote only for Hudbay’s recommended director nominees, following the 2019 AGM:

  • The average director tenure on Hudbay’s Board will be four years, with 7 of 11 Directors having joined the Board in the last five years

  • 9/11 directors will have been added in the last seven years

  • 3/11 directors will be women

Investor Inquiries

Laurel Hill 
North America: 1-877-452-7184
Other: +1-416-304-0211
assistance@laurelhill.com

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TSE: HBM $ 9.42 +0.08 +0.86% Volume: 1,546,660 April 23, 2019
NYSE: HBM $ 7.00 +0.01 +0.14% Volume: 1,357,475 As of 4:02 PM 04/23/2019