constancia site visit presentation -...

CONSTANCIA SITE VISIT PRESENTATION

July 17, 2018

Cautionary Information

2

This presentation contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this presentation, 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, strategy, 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 achieved or will be taken (and variations of these or similar expressions). All of the forward-looking information in this presentation is qualified by this cautionary note. Forward-looking information includes, but is not limited to, production, cost and capital and exploration expenditure guidance, anticipated production at Hudbays Constancia mines, the anticipated timing, cost and benefits of developing the Pampacancha deposit, the anticipated impact of any delays to the start of mining the Pampacancha deposit, anticipated exploration plans, including the planned exploration strategy for the properties surrounding Constancia, anticipated mine plans, anticipated optimization initiatives and the expected benefits of such initiatives, anticipated cash flows from operations and related liquidity requirements, the anticipated effect of external factors on revenue, such as commodity prices, estimation of mineral reserves and resources, mine life projections, reclamation costs, economic outlook, government regulation of mining operations, and business and acquisition strategies. 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, uncertainties, 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; no significant unanticipated operational or technical difficulties; the execution of Hudbays 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 companys 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 companys various projects; no significant unanticipated events or changes relating to regulatory, environmental, health and safety matters; no contests over title to the companys 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 adverse 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 those 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 general cost escalation), uncertainties related to the development and operation of Hudbays 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 cost and 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, including 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 with government and environmental regulations, including permitting requirements and anti-bribery legislation, depletion of Hudbays reserves, volatile financial markets that may affect Hudbays 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 and recovery rates, uncertain costs of reclamation activities, the companys ability to comply with its pension and other post-retirement obligations, Hudbays 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 the companys 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 should 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 presentation or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law. This presentation 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. All amounts are in U.S. dollars unless otherwise noted.

SAFETY REVIEW

Health & Safety Statistics

TARGET 2018

F.I. 0.12

S.I. 8.1

Indicators obtained based on 200,000 man-hours worked

0.652

0.00 0.00 0.050 0.130 0.1278 0.1282 0.1271 0.1266 0.1284 0.1320 0.1393 0.00 0.00

0.030 0.030 0.0256 0.0256 0.0254 0.0253 0.0257 0.0264 0.0279

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Jul/17 Aug/17 Sep/17 Oct/17 Nov/17 Dec/17 Jan/18 Feb/18 Mar/18 Apr/18 May/18 Jun/18

Freq

uenc

y In

dex

(FI)

Sev

erity

Inde

x(SI

)

SI 2017 -2018 FI 2017 - 2018

Target SI: 9

Target FI: 0.13

Target FI: 0.12

Target SI: 8.1

4

Environmental Performance KPIs

Target : 93% June Performance : 100% Year-todate Performance : 98%

INDICATOR WEIGHT YTD TARGET

ENVIRONMENTAL MANAGEMENT INDICATORS (EMI) 0.7 Jan Feb Mar Apr May Jun KPI EMI

INSPECTIONS (Opportuni ties for Improvement) 0.4 100 100 94 100 100 100 99 90

OEFA-LIKE AUDIT 0.1 100 100 100 100 100 100 100 94

OEFA AUDIT 0.15 100 100 100 100 100 100 100 95

ENVIRONMENTAL INCIDENTS 0.3 94 91 98 80 96 100 93 92

ENVIRONMENTAL TRAINING 0.05 86 86 96 96 100 100 94 93

98 97 97 94 99 100 97 92

ENVIRONMENTAL QUALITY INDICATORS (EQI) 0.2 Ene Feb Mar Abr May Jun KPI EQI

WATER QUALITY 1 100 100 100 100 100 100 100 93

100 100 100 100 100 100 100 93

SUSTAINABILITY (IS) 0.1 Ene Feb Mar Abr May Jun KPI IS

WATER CONSUMPTION 0.5 100 100 100 100 100 100 100 96

ENERGY CONSUMPTION AND GHG 0.5 100 100 100 100 100 100 100 96

100 100 100 100 100 100 100 96

98 98 98 96 99 100 98 93

MONTH

* NOTE: Each indicator resul t wi l l be multipl ied by i ts weight

TOTAL

TOTAL

TOTAL

CONSTANCIA MONTHLY KPI

5

Constancia Permits

Environmental Certification

Mine permit

EIA, Amendment 1 and 2 EIA Amendment 3 under evaluation

Authorization for construction and operation and amendments Amendment 2 under development

Permits for Plant and TMF Authorization for construction and operation and amendments

Water permits Water use licences Water dicharge permits

Main permits:

6

Anti-Fatigue and Collision Project 1:40 am . Operator is tired

Potential safety event!.

7

Objective and background: To reduce the probability of fatigue and collision events through the use of technology

Constancia Mine Collision & Fatigue Events

Historically more collision than fatigue events at Constancia Going from Administrative to Engineering controls

8

2016 2017 2018 Collision 4 6 4 Fatigue 1 1 Total 5 7 4

0

1

2

3

4

5

6

7

8

Num

ber o

f Ev

ents

Anti-Fatigue and Collision Project

Alternatives Non-invasive: Hexagon SafeMine and FatigueMonitor

Safe Mine (CAS) Fatigue Monitor Primary function of a fatigue system: Wake-up alarm in case of micro sleep to avoid immediate danger for operator and equipment Secondary function: Alarming for Perclos (Slow Eye Blinking) Alarming for Distraction (looking down e.g. on a cell phone) Third function: Provide the control room with real time data of fatigue related events Provide detailed reports to management for desicions based in benchmarked data

Surrounding Awareness Collision Avoidance

9


GuardVants Safe Mine and Fatigue Monitor

Collision Guard Op Guard Using peer to peer communication between equipment, Collision Guard increases awareness of the situation by showing the location of any other equipment near the operator. The fully configurable solution is integrated with all the designs and equipment of the mine to ensure complete coverage of the equipment.

Historic data

Check fatigue and distraction events in real time

Sound alarm and seat vibrator

Alternatives Non-invasive:

10


CORPORATE AFFAIRS & SOCIAL RESPONSIBILITY

Government and Community Institutions We work with all levels of Government and the Communities to develop stable operations and

to maximize the impact of our social investment in our area of influence and beyond

12

District District Municipality of Chamaca District Municipality of Livitaca District Municipality of Velille District Municipality of Coporaque District Municipality of Condoroma

Communities Chilloroya, Uchucarcco, among others

Level Applicable Area Election Frequency

Next Election New Term Start Date

National Peru Every 5 years April 2021 July 28, 2021

Regional Cusco Every 4 years October 2018 January 1, 2019

Provincial Chumbivilcas Every 4 years October 2018 January 1, 2019

District Chamaca, Livitaca & Velille,

Every 4 years October 2018 January 1, 2019

Local Community Chilloroya, Uchucarcco

Every 2 years November 2018 January 1, 2019

National: Ministry of Development & Social Inclusion Ministry of Energy & Mines Ministry of Labor Ministry of Agriculture Ministry of Finance

Regional: Regional Government of Cusco

Provincial: Provincial Municipality of Chumbivilcas

Agreements signed with:

Local Political Context

13

Uchucarcco: In Q1 2018 we signed cooperation agreements for sustainable development

During Q1 and Q2 2018 Hudbay has signed specific agreements with municipalities of Velille and Chamaca

Livitaca: 2017 cooperation agreement

under execution

Hudbays transportation route (shared with other large miners) will be considered as a national critical asset by the Government

This year, for the first time, Chumbivilcas will receive

CANON coming from operation of Constancia

11 Candidates for Mayor of Chumbivilcas, 11 for

Livitaca, 7 for Chamaca, and 7 for Velille

Chilloroya: Fulfillment of 2017 commitments;

ongoing negotiation for Pampacancha

Coporaque: 2017 cooperation agreement under execution

On October 7th there will be elections for regional

Governors and local mayors

Mining Properties Near Constancia

Exploration work to be conducted on newly acquired properties near Constancia with potential to provide higher-grade feed to the Constancia mill post-Pampacancha

14

MINERAL PROPERTIES WITHIN TRUCKING DISTANCE OF CONSTANCIA PROCESSING FACILITY

0 5,000 10,000

Meters

Constancia Pit Pampacancha Pit

Caballito

Maria Reyna

Hudbay

Kusiorcco

Caballito/ Maria Reyna

LEGEND Process Plant

On June 10th the technical committee submitted a written report to the Steering Committee of Chilloroya

On July 5th an ordinary assembly was held in Chilloroya Pampacancha discussions were tabled

The assembly plans to resume discussions with respect to Pampacancha after anniversary celebrations of the community

15

Pampacancha: Negotiation Status

The communitys headquarters during last assembly on July 5, 2018

Maria Reyna, Caballito, Kusiorcco

Uchucarcco: Has agreed to commence negotiations

Qquehuincha: Ongoing process to conclude negotiation of exploration agreement for 3 years

Aahuichi: Ongoing dialogue to start negotiation of exploration agreement for 3 years

Collana-Livitaca: Dialogue process delayed due to community internal conflicts

16

Exploration Properties : Negotiation Status

MINE OPERATIONS REVIEW

Physicals H1 and Q2 2018

18

2018 has more plant availability and increased the throughput against 2017 2018 is positive in model reconciliation (more tonnes to stockpiles), with lower headgrade than 2017

Ore Mined Kt 18,234 14,551 25% 8,744 7,338 19% 9,490 7,213 32%

Waste Mined Kt 17,741 12,628 40% 9,900 6,617 50% 7,841 6,011 30%

Rehandle Kt 1,464 767 91% 766 280 174% 698 487 43%

Material Moved Kt 37,439 27,946 34% 19,410 14,235 36% 18,029 13,711 31%

Stripping Ratio waste:Ore 1.0:1 0.9:1 12% 1.1:1 0.9:1 26% 0.8:1 0.8:1 1%

Average Ore Grade Mined - - - -

Grade - Copper % 0.49% 0.55% 11% 0.47% 0.55% 15% 0.50% 0.55% 8%

Grade - Moly % 0.01% 0.02% 27% 0.01% 0.02% 23% 0.01% 0.02% 31%

Grade - Gold g/t 0.05 0.04 10% 0.05 0.04 23% 0.05 0.05 1%

Grade - Silver g/t 4.11 3.92 5% 4.03 3.81 6% 4.19 4.03 4%

Additionals - -

Ore Milled Kt 15,578 13,249 18% 7,727 6,932 11% 7,851 6,318 24%

Throughput ktpd 86 73 18% 85 76 11% 87 70 24%

Grade Milled - Copper % 0.47% 0.54% 13% 0.44% 0.53% 18% 0.50% 0.54% 7%

Fine Tonnes - Copper t 58,369 57,009 2% 26,817 29,798 10% 31,551 27,211 16%

End Inventory - -

Ore stockpile kt 5,201 3,580 45% 5,201 3,580 45% 4,416 3,309 33%

Grade - Copper % 0.40% 0.43% 8% 0.40% 0.43% 8% 0.39% 0.42% 9%

Grade - Moly % 0.01% 0.01% 7% 0.01% 0.01% 7% 0.01% 0.01% 9%

Grade - Gold g/t 0.06 0.07 10% 0.06 0.07 10% 0.06 0.07 13%

Grade - Silver g/t 4.81 4.57 5% 4.81 4.57 5% 4.89 4.58 7%

MINING PHYSICALS %2017Q22018Q2

2017Q1

2018Q1 %

2018H1

2017H1 %

NOTE: Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled.

YTD 2018 Mining Reconciliation

Blue areas are forecast production for 2018; red are YTD actuals Actual production is 93% consistent with mine plan

19

Over a period of 10 months, the 2018 LTP Model used for reserves reporting reconciles with actual production within +/-15% for all the elements except Zn

The Au and Mo grade are conservative (-14% and -10% respectively). The performance of the 2018 LTP model for these two elements could potentially be improved through current modifications to the resource modeling process, i.e. integration of blasthole assays

Zn shows an under-estimation problem which deserves further investigations. However, the Zn/Cu ratio of the reserves is well below the problematic threshold of 0.5. Localised high Zn zones are managed through blending with low Zn ore from stockpiles

Long-term Model Reconciliation

Conclusion: Mining progress is according to the Plan and reconciliations show that the Reserves Model is a reliable basis for the long-term plan

20

MINE OPERATIONS

Instrumentation and Monitoring - PIT

Pit geotechnical instrumentation has gone from 38 in 2017 to 60 instruments in 2018 Continuous identification and monitoring of potential areas of instability Weekly Monitoring Report All geotechnical zones monitored are currently in green alert (< 5 mm/day)

Phase II

Phase I

ZCG04

ZCG 08

ZCG 06 ZCG 07

Phase VII

Instrumentation Number of instruments Total instruments

Prisms 35

Extensometer 1

Radar Slope (*) 1

Piezometers Open Stand Pipe 21

Vibrating Wire Piezometers 2

Total Geotechnical Instrumentation - Constancia Pit April 2018

60

(*) Currently in tests.

Extensometer

Prism Existing instrumentation

Prisms

Extensometer SP Piezometer

Critical zones monitoring

22

Instrumentation and Monitoring - WRF

In June 2018 the geotechnical instrumentation project was completed; consisted of the installation of 01 inclinometer pipe, 01 VWP, 01 settlement cell and 01 pressure cell

To date no significant movements are reported. Facility presents a STABLE condition

Weekly WRF stability monitoring report

Existing instrumentation 2017

Prisms

VW Piezometer SP Piezometer

VWP Inclinometer

Instrumentation campaign 2018

Settlement & Pressure cells

WRF

Nv 4100

Nv 4120

PVW-18-04

Nv 4180

Nv 4220 PVW-18-05

PVW-18-03

CELP-18-01

Nv 4100

CELA-18-01

Instrumentation Number of instruments Total instrumentsPrisms 25

Piezometers Open Stand Pipe 4Vibrating Wire Piezometers 7

Settlement Cells 1Pressure Cells 1Inclinometer 1

Total Geotechnical Instrumentation - WRF June 2018

39

23

Instrumentation and Monitoring - TMF

Accelerographs

Legend Prisms Inclinometer

New Piezometers

Parshall Flume

Instrumentation Number of instruments Total instruments

Prisms 22Inclinometer (*) 2

Vibrating Wire Piezometers (*) 167Parshall Flume 2

Accelerographs (**) 2

Total Geotechnical Instrumentation - TMF June 2018

195

(*) In the research campaign, 23 new piezometers and 2 inclinometers were installed.(**) In May, 2 accelerographs were installed.

Improvements in the stability monitoring program in 2018 Weekly and quarterly reports; STABLE conditions in the TMF A total of 14 new instruments installed in 2018

24

MINE OPERATIONS: IMPROVEMENT INITIATIVES

Objective: To increase truck engine life in Constancia operations CAT has agreed to increase truck engine PCR from 16,000 to 18,000 hrs. Decision is supported by historical data, conditions monitoring, world class maintenance practices, favourable haul profile and appropriate payload policy. This will improve operative cost in the LOM.

Constancia Mine Engines for CAT 793F

Historical analysis for Constancia diesel engines

CAT 793F ENGINE LIFE EXTENSION

26

Mine Maintenance

Objective: Detecting the best moment to change components before failures but normally after the PCR, increasing life for components while controlling safety for the equipment and people

Constancia Mine brakes for Wheels and Final drives for CAT 793F

Historical analysis for Constancia components

COMPONENT CHANGE PLAN BASED ON CONDITION MONITORING

27

J.CRUZADO C. RAMIREZ

06-06-18 18-06-18

NROTULA

PROFUNDIDAD DE DISCUNTINUIDAD CONDICIN

NROTULA

PROFUNDIDAD DE DISCUNTINUIDAD CONDICIN

1 --- NORMAL 1 --- NORMAL

2 --- NORMAL 2 --- NORMAL3 --- NORMAL 3 --- NORMAL4 --- NORMAL 4 --- NORMAL5 --- NORMAL 5 --- NORMAL6 --- NORMAL 6 --- NORMAL7 --- NORMAL 7 --- NORMAL8 --- NORMAL 8 --- NORMAL

INSPECCIN A LAS RTULAS DE DIRECCIN MEDIANTE ULTRASONIDO

LOCALIZACIN DE RTULAS DE DIRECCIN CATERPILLAR

N De reporte:10

INSPECTOR:

FECHA DE INSPECIN:

OBSERVACIONES: - Se cambiaron las 3 Rotulas con indicaciones, se realiz la inspeccin sin detectar ninguna incacin relevante, seguiremos con su monitoreo programado.

N De reporte:10

INSPECTOR:

FECHA DE INSPECIN:

OBSERVACIONES:

Constancia steering system for CAT 793F

27

Mine Maintenance

Objective Increasing life of truck tires. Improves cost per hour ratio by approximately 20%

TIRE RETREAD FOR TRUCKS

28

Mine Maintenance

Geotechnical & Hydrogeology

1. IMPLEMENTATION OF RADAR SYSTEM:

In June 2018 radar monitoring tests started in the pit using REUTECH and IBIS technologies (3 months each) to determine the best performer and accuracy according to our operational conditions

Also planed to be used for stability monitoring at the TMF and WRF

RADAR REUTECH IN CONSTANCIA

BENEFITS: "Real time monitoring" (24/7) and alarm system according to

threshold Key for failure prediction

CONSTANCIA PIT TMF

WRF

Monitoring Point 01

Monitoring Point 02 Monitoring

Point 01

Monitoring Point 01 Monitoring

Point 02

Monitoring Point 02

29

2. IMPLEMENTATION OF MAPPING BY DRONE (UAV)

Mapping deposit sites Exploring for minerals Monitoring stockpile volumes Tracking equipment Time-lapse photography

MAPPING AND ANALYSIS WITH 3D visualization of blocks in real space Volume in m3 or Mass in kgs Sliding Vector

Geotechnical bench mapping began in May 2018; supported by drones and "Sirovision" technology.

VIDEO

30


3. IMPLEMENTATION OF THE TELEMETRIC SYSTEM:

BENEFITS: Acquisition and reporting of data in real time Remote switch on/off of Electrical Boards Fault detection and error alarm Custom software, achieving autonomous processes Wireless technology with a reception range of 20

km in open field Improves personnel safety by reducing exposure

G7 G7

G21

G20

G16

G18

G19

G5

G10

G14

G25

Optimizes analysis of the maintenance process to minimize pit dewatering interruptions 31


4. INTEGRATION FOR GEOTECHNICAL INSTRUMENTATION

Improves the processing time and analysis of Geotechnical and Hydrogeological instrumentation data Real-time integrated alerts for all the instrumentation, which will arrive by email or text messages to cell phones,

tablets and to the control room (Fleet Management System) Compare and evaluate information from different instrument types at the same time for a better understanding of

anomalous behavior or potential instabilities

SHMS (Slope Health Monitoring System)- QSI

5. IMPLEMENTATION OF SUBMERSIBLE CAMERA FOR INSPECTION OF PUMPING WELLS

Identify faults / obstructions in the pumping systems Periodic inspection of filters and pipes Reduce costs and early fault detection Time-lapse video

32


Mine Planning

DRONES & SURVEY Use of drones for Mine Surveying:

Waste Rock Facility (WRF) as-builts Tailings dam construction advances Pipeline as-builts Surveying of risky or inaccessible areas within the pit Constancia Mine Site flyovers

Technology reduces crew workload by 20%. Flying time 45-50 min covers around 10,000 m2 Achieve survey-grade accuracy in a photogrammetric

map or 3D model

IMPLEMENTED USE OF NSR IN MINE POLYGONS Optimizes the NSR value of ore mine polygons, to provide the best feed to the crusher Improves quality of ore concentrate by limiting the levels of contaminants (Zn, Pb)

MINE - PROCESSING PLANT INTEGRATION Provides real time Mine to Crusher information, detailing productivity and quality of the material being fed. Data includes throughput, tonnages, Cu%, Pb%, Ox%,Zn%, Ratio Zn/Cu and recoveries

33

MINE OPERATIONS: LAYOUTS

Current General Overview

35

TMF 2018, YTD & FY Source of suitable material:

Pit Phase VII and II

Destination:

Ramps

TMF Embankment

Actual Jan to Jun: 6.3 Mt

Forecast Jul to Dec: 5.5 Mt

West Dam, AA Section East Dam, BB Section

36

PROCESS PLANT

38

Production KPIs 2018

39

Production KPIs Q2 Gold and Silver

Au Head Grade g/tonne 0.05 0.041 23% 0.05 0.038 31% 0.05 0.044 15%

Au Recovery % 44.90 44.67 1% 44.80 44.84 0% 44.90 44.51 1%

Ag Head Grade g/tonne 4.01 4.08 -2% 3.92 3.91 0% 4.10 4.27 -4%

Ag Recovery % 61.90 62.42 -1% 61.20 62.62 -2% 62.50 62.22 0%

2018Q1

2017Q1 %PRODUCTION

2018H1

2017H1 %

2018Q2

2017Q2 %

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000 Ja

nuar

y

Febr

uary

Mar

ch

April

May

June

July

Augu

st

Sept

embe

r

Oct

ober

Nov

embe

r

Dece

mbe

r

KT

Cumulative Treatment

Real Budget

40

Cumulative Treatment (KT) Q1

Actual 7,851Budget 7,763Variation 1.1%

Cumulative Treatment (KT)Actual 7,727Budget 7,497Variaton 3.1%

Q2

Cumulative Treatment

95.8

99.5

93.4 96.3

81.6

97.7 96.0

95.5 96.0 95.8

83.2 95.8

96.0 96.0

95.8 96.0

86.0

96.0 95.2 96.8

95.0 96.8

86.0

96.0

10

20

30

40

50

60

70

80

90

100

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

%

Actual Availability Budget Availabilty Disponibilidad Forecast

November: Scheduled maintenance Replacement of liners in SAG

Mills 01/03 and Ball Mill 04. Replacement of trommel

screens in SAG Mills 01. Maintenance of pumps PU

01/02.

May: Scheduled maintenance Replacement of liners in

SAG Mills 01/03 and Ball Mill 02.

Replacement of trommel screens in SAG Mills 01/03.

Maintenance of pumps PU 01/02

41

QUARTER FYMONTH JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2018Actual Availability (%) 95.8 99.5 93.4 96.3 81.6 97.7Forecast (%) 96.0 95.5 96.0 95.8 81.5 96.7 95.2 96.8 95.0 96.8 86.0 96.0 94.0Budget Availablity (%) 96.0 95.5 96.0 95.8 83.2 95.8 96.0 96.0 95.8 96.0 86.0 96.0 94.0Actual Availability (%)Forecast (%)Budget Availablity (%) 95.8 91.5 95.9 92.72

Q1 Q2 Q3 Q4

96.1 91.895.8 91.2 95.7 92.99

Mechanical Availability

2018 IMPLEMENTED IMPROVEMENTS

43

Description Progress 1. Mine to Plant

100%

2. On-line analyzers PSI 300 100%

3. On-line analyzers Courier 6 ISL 100%

4. Split cameras in crushing bays and Belt CV01 (On-line granulometry) 100%

5. Met Rock cameras (SAG mill feed granulometry) 100%

6. Changed SGS expert system in Ball-SAG mill 100%

7. Expert system implementation in flotation 100%

8. Geo-metallurgy (microscopy and mineralogical characterization) 100%

9. Evaluation of new reagents (collectors, frothers and flocculants) 90%

2018 Implemented Improvements

FLOTACION ROUGHER BULK

FLOTACION ROUGHER BULK

FLOTACION ROUGHER

NIDO DE CICLONES REMOLIENDA

MOLINO DE REMOLIENDA

ESPESADOR DE RELAVES

CLEANER I CLEANER SCAVENGER CLEANER II

CLEANER III(COLUMNAR CELL)

REMOLIENDA DE COBRE

16

15

17

18

192021

22

42

PU-032

PU-012

PU-021PU-024

PU-014

CHANCADORAPRIMARIA

STOCK PILE

FAJA TRANSPORTADORA CV 001

FEEDER 001

ALIMENTADORES

1

23

4

6

4

1

2

1

5

6

3

7

8

9

44

Location of Implemented Improvements

METALLURGICAL PROJECTS

Metallurgical Projects Several metallurgical initiatives are being implemented

with the intention of supporting us in getting copper recoveries up to the levels forecast in our latest 43-101 Technical Report for Constancia, dated March 29, 2018:

1. ProFlote Magnets

2. Jameson Cell

3. HydroFloat Cell

4. CiDRA

5. Air Evaluation

46

FEED

FEED

JAMESON CELLS

FINAL CONCENTRATE

LL

SV S S S S S S

SV S S S S S S

SS S SV SV

S SV SV SV

L1 COPPER ROUGHER FLOTATION

COPPER REGRIND MILL

COPPER CLEANER 1FLOTATION

L2 COPPER ROUGHER FLOTATION

COPPER CLEANER SCAVENGERFLOTATION

PROFLOTE MAGNETS (ALTERNATIVE 1)

JAMESON CELL CLEANER SCALPER

(For Ultrafines)

HYDROFLOAT (For Extracoarse)

PROFLOTE MAGNETS (ALTERNATIVE 2)

47

Location of Metallurgical Projects

Intended Benefit: By aggregating fine particles by magnetic force, ProFlote magnets are intended to recover metal from ultrafine particles (less than 20 microns) that may otherwise end up in tailings

Timeline: Location of magnets currently under evaluation; installation expected to be

completed by Jan 2019

Electrodos ProFlote

48

ProFlote Magnets

49

Jameson Cell Intended Benefit: Technology intended to allow removal of liberated and fast floating

minerals to final concentrate, reducing load in downstream circuit

Timeline: Jameson cell sizing performed in May 2018; engineering expected to be completed by end of August 2018

Worldwide HydroFloat Pilot Campaigns

50

HydroFloat Cell Intended Benefit: By using an aeration system to disperse fine bubbles into a

fluidized-bed environment, HydroFloat is intended to improve the selective recovery of extracoarse particles (greater than 140 microns) by applying flotation fundamentals to gravity separation

Timeline: Site visits of other operations with similar technology completed in 2017;

studies are underway

Particle Size Tracking (PST) (On-line granulometric analysis per cyclones in regrinding; three sizes)

PST is made up of a set of sensors, a junction

box and a computer in the control room

The set of sensors consists of a reinforced probe in contact with the overflow and a set of integrated electronic elements protected by a sealed metal box

The probe is covered by an extremely hard layer that makes it resistant to wear

When the pulp flow hits the probe, it creates an impact acoustic signal; the response is then processed by a set of integrated electronic elements to obtain a measurement of the particle size in the pulp flow

Intended Benefit: Enables real-time closed grind

circuit control and improved recovery without loss of throughput

51

CiDRA

EVALUATION OF SUCTIONED AIR

Sampling campaign was performed (two days of sampling with open vent (ON) during four hours, followed by closed vent (OFF) for another four hours, successively)

Results of the evaluation of the Rougher flotation circuit (ON-OFF), in Line 01

In general, based on the results and metallurgical balance, observed an increase in valuable particles recovery smaller than 400 micron (-400)

Percentage of improvement in recovery is yet to be determined; additional testing will be conducted

52

Air Evaluation

53

Air Evaluation: Results

FOR MORE INFORMATION CONTACT:

Carla Nawrocki, Director, Investor Relations

416.362.7362 | [email protected]

mailto:[email protected]

Slide Number 1Cautionary InformationSlide Number 3Health & Safety Statistics Environmental Performance KPIs Constancia PermitsAnti-Fatigue and Collision ProjectObjective and background:Alternatives Non-invasive:Alternatives Non-invasive:Slide Number 11Government and Community InstitutionsLocal Political Context Mining Properties Near ConstanciaPampacancha: Negotiation StatusExploration Properties : Negotiation StatusSlide Number 17Physicals H1 and Q2 2018Slide Number 19Slide Number 20Slide Number 21Instrumentation and Monitoring - PITInstrumentation and Monitoring - WRFInstrumentation and Monitoring - TMFSlide Number 25Objective: To increase truck engine life in Constancia operationsObjective:ObjectiveGeotechnical & HydrogeologySlide Number 30Slide Number 31Slide Number 32Mine PlanningSlide Number 34Current General OverviewSlide Number 36Slide Number 37Production KPIs 2018Production KPIs Q2 Gold and SilverCumulative TreatmentMechanical Availability Slide Number 422018 Implemented ImprovementsLocation of Implemented ImprovementsSlide Number 45Metallurgical ProjectsLocation of Metallurgical ProjectsProFlote MagnetsJameson CellHydroFloat CellCiDRA Evaluation of Suctioned Air Slide Number 54

constancia site visit presentation -...

Documents