Hudbay Minerals Inc (HBM) 2022 Q3 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Hudbay Minerals Inc. Third Quarter 2022 Results Conference Call. (Operator Instructions) I would like to remind everyone that this conference call is being recorded today, November 3, 2022, at 8:30 a.m. Eastern Time.

早上好，女士們，先生們。謝謝你的支持。歡迎參加 Hudbay Minerals Inc. 2022 年第三季度業績電話會議。 （操作員說明）我想提醒大家，今天，2022 年 11 月 3 日，東部時間上午 8 點 30 分正在錄製此電話會議。

I will now turn the conference over to Candace Brule, Vice President, Investor Relations. Please go ahead.

我現在將會議轉交給投資者關係副總裁 Candace Brule。請繼續。

Thank you, operator. Good morning, and welcome to Hudbay's 2022 Third Quarter Results Conference Call.

謝謝你，運營商。早上好，歡迎來到 Hudbay 的 2022 年第三季度業績電話會議。

Hudbay's financial results were issued yesterday and are available on our website at www.hudbay.com. A corresponding PowerPoint presentation is available, and we encourage you to refer to it during this call. Our presenter is Peter Kukielski, Hudbay's President and Chief Executive Officer. Accompanying Peter for the call will be Eugene Lei, our Senior Vice President and Chief Financial Officer; and Andre Lauzon, our Senior Vice President and Chief Operating Officer.

Hudbay 的財務業績於昨天發布，可在我們的網站 www.hudbay.com 上查閱。提供了相應的 PowerPoint 演示文稿，我們鼓勵您在此次通話中參考它。我們的主持人是 Hudbay 的總裁兼首席執行官 Peter Kukielski。陪同 Peter 參加電話會議的是我們的高級副總裁兼首席財務官 Eugene Lei；和我們的高級副總裁兼首席運營官 Andre Lauzon。

Please note that comments made on today's call may contain forward-looking information, and this information, by its nature, is subject to risks and uncertainties, and as such, actual results may differ materially from the views expressed today. For further information on these risks and uncertainties, please consult the company's relevant filings on SEDAR and EDGAR. These documents are also available on our website.

請注意，對今天的電話會議發表的評論可能包含前瞻性信息，而這些信息就其性質而言具有風險和不確定性，因此，實際結果可能與今天表達的觀點存在重大差異。有關這些風險和不確定性的更多信息，請查閱公司關於 SEDAR 和 EDGAR 的相關文件。這些文件也可以在我們的網站上找到。

As a reminder, all amounts discussed on today's call are in U.S. dollars unless otherwise noted.

提醒一下，除非另有說明，否則今天電話會議上討論的所有金額均以美元為單位。

And now, I'll pass the call over to Peter Kukielski. Peter?

現在，我將把電話轉給 Peter Kukielski。彼得？

Thank you, Candace. Good morning, everyone, and thank you for joining us.

謝謝你，坎迪斯。大家早上好，感謝您加入我們。

Before we jump into quarterly results, I'd like to congratulate Eugene Lei, who was recently appointed Senior Vice President and Chief Financial Officer. Eugene has a 10-year history with Hudbay, progressing through a number of increasingly senior roles and executive responsibilities and is highly regarded within the industry. He has over 20 years of global mining investment banking, finance and corporate development experience, and his transition into the CFO role has been seamless. With Eugene in the CFO role and Andre in the COO role, I believe we have the right leadership team dynamics in place to continue to execute our exciting growth strategy, while remaining committed to deleveraging and disciplined capital allocation. Now in conjunction with our announcement of Eugene's assumption of the CFO role, I'm going to depart from tradition and have both Eugene and Andre Lauzon, our COO, talk to some of the key themes.

在我們進入季度業績之前，我想祝賀最近被任命為高級副總裁兼首席財務官的 Eugene Lei。 Eugene 在 Hudbay 工作了 10 年，經歷了一系列越來越高級的職位和行政職責，在業內享有很高的聲譽。他擁有超過 20 年的全球礦業投資銀行、金融和企業發展經驗，並且順利過渡到首席財務官職位。 Eugene 擔任首席財務官，Andre 擔任首席運營官，我相信我們擁有正確的領導團隊動力，可以繼續執行我們令人興奮的增長戰略，同時繼續致力於去槓桿化和有紀律的資本配置。現在，結合我們宣布 Eugene 擔任首席財務官一職的消息，我將打破傳統，讓 Eugene 和我們的首席運營官 Andre Lauzon 談談一些關鍵主題。

With our commitment to deleveraging and disciplined capital allocation in mind, 2022 has presented us with a period of higher input prices and decline in copper prices, resulting in industry margins being significantly reduced. While Hudbay benefits from our consolidated cash costs being positioned in the first quartile of the global cash cost curve, our focus continues to be on cash flow, and we will touch on the steps we've taken to navigate this challenging environment. But first, let me speak to our quarterly results beginning on Slide 3.

考慮到我們對去槓桿化和嚴格的資本配置的承諾，2022 年給我們帶來了一段投入價格上漲和銅價下跌的時期，導致行業利潤率大幅下降。雖然 Hudbay 受益於我們位於全球現金成本曲線第一四分位的綜合現金成本，但我們的重點仍然是現金流，我們將談及我們為應對這一充滿挑戰的環境所採取的步驟。但首先，讓我談談我們從幻燈片 3 開始的季度業績。

I'd characterize our third quarter results as a period of strong performance in our Peru operations and a period of transition in our Manitoba operations after the planned closure of the 777 mine in June 2022. Our consolidated copper production in the third quarter was 24,500 tonnes, a 5% decrease compared to the second quarter due to the closure of 777, but partially offset by higher copper grades in Peru. Consolidated gold production was 53,200 ounces, a 9% decrease due to the closure of 777 and slightly lower gold grades in Peru, but partially offset by significantly higher grades at Lalor and higher recoveries in Snow Lake in Peru. Consolidated zinc production was 9,800 tonnes, lower than the prior quarter due to 777's closure and one-off production interruptions in Snow Lake during the quarter. We anticipate stronger production in the fourth quarter and have reaffirmed our 2022 production guidance for all metals.

在計劃於 2022 年 6 月關閉 777 礦之後，我將我們第三季度的業績描述為秘魯業務的強勁表現期和馬尼托巴業務的過渡期。我們第三季度的綜合銅產量為 24,500 噸，由於關閉 777，與第二季度相比減少了 5%，但部分被秘魯較高的銅品位所抵消。綜合黃金產量為 53,200 盎司，由於 777 關閉和秘魯黃金品位略低而減少 9%，但部分被秘魯 Lalor 品位顯著提高和雪湖採收率提高所抵消。綜合鋅產量為 9,800 噸，低於上一季度，原因是本季度 777 航班關閉以及雪湖的一次性生產中斷。我們預計第四季度的產量將增加，並重申了我們對所有金屬的 2022 年產量指導。

Consolidated cash costs decreased to $0.58 per pound of copper from $0.65 in the second quarter. This significant improvement was primarily a result of lower on-site costs in Manitoba, partially offset by higher on-site costs in Peru, higher treatment and refining charges, higher freight costs and lower consolidated copper production with the closure of 777. Consolidated sustaining cash costs were $1.91 per pound in the third quarter compared to $1.87 in the prior quarter. This slight increase was due to higher sustaining capital expenditures, partially offset by lower cash costs and lower royalties. Both measures are tracking well with respect to the 2022 guidance ranges, and we are reaffirming our full year consolidated copper cash cost guidance of $0.60 to $1.05 per pound and sustaining copper cash cost guidance of $1.60 to $2.25 per pound.

綜合現金成本從第二季度的每磅銅 0.65 美元降至 0.58 美元。這一顯著改善主要是由於馬尼托巴省的現場成本較低，部分被秘魯現場成本較高、處理和精煉費用較高、運費較高以及 777 關閉後綜合銅產量較低所抵消。綜合維持現金第三季度的成本為每磅 1.91 美元，而上一季度為 1.87 美元。這一小幅增長是由於較高的持續資本支出，部分被較低的現金成本和較低的特許權使用費所抵消。這兩項措施都很好地跟踪了 2022 年的指導範圍，我們重申我們的全年綜合銅現金成本指導為每磅 0.60 美元至 1.05 美元，並將銅現金成本指導維持在每磅 1.60 美元至 2.25 美元。

Consolidated all-in sustaining cash costs increased to $2.16 in the third quarter from $1.93 in the second quarter due to higher corporate selling and administrative expenses and accretion and amortization of decommissioning and community agreements. Operating cash flow before change in noncash working capital was $82 million during the third quarter, reflecting a decrease from the second quarter. This decrease was primarily the result of lower zinc sales volumes, lower realized prices for all metals and inflationary pressures on mine operating costs.

由於公司銷售和管理費用增加以及退役和社區協議的增加和攤銷，第三季度的綜合維持現金成本從第二季度的 1.93 美元增加到 2.16 美元。第三季度非現金營運資本變動前的經營現金流為 8200 萬美元，較第二季度有所下降。下降的主要原因是鋅銷量下降、所有金屬的實際價格下降以及礦山運營成本的通脹壓力。

Third quarter adjusted net loss per share was $0.05 after adjusting for a noncash gain related to the revaluation of the environmental provision and a revaluation gain on the gold prepayment liability, among other items. Third quarter adjusted EBITDA was $99 million, a decrease compared to the prior quarter's $141 million. This was as a result of the same factors affecting cash flow as discussed. We exited the quarter with $286 million in cash, an increase of $28 million during the quarter as well as undrawn availability of nearly $370 million under our revolving credit facilities.

第三季度調整後的每股淨虧損為 0.05 美元，其中包括與環境準備重估相關的非現金收益和黃金預付款負債的重估收益等項目。第三季度調整後的 EBITDA 為 9900 萬美元，低於上一季度的 1.41 億美元。這是由於所討論的影響現金流的相同因素造成的。我們以 2.86 億美元的現金退出了本季度，本季度增加了 2800 萬美元，並且我們的循環信貸額度下未提取的可用資金接近 3.7 億美元。

Turning to Slide 4. Our Peru operations benefited from higher copper grades and higher molybdenum recoveries, partially offset by lower throughput due to a planned semiannual mill maintenance program during the third quarter. We produced approximately 22,000 tonnes of copper, 13,000 ounces of gold, 564,000 ounces of silver and 437 tonnes of molybdenum. Production of copper and molybdenum was higher than the second quarter, while production of gold and silver was lower primarily due to slightly lower precious metal grades. We have seen successive quarterly increases in production this year in Peru. And as previously disclosed, we expect that trend to continue into the fourth quarter with the benefit of significantly higher grades from Pampacancha. As such, full year production of all metals remains on track to achieve guidance ranges for 2022.

轉到幻燈片 4。我們的秘魯業務受益於更高的銅品位和更高的鉬回收率，部分被第三季度計劃的半年度工廠維護計劃導致的吞吐量下降所抵消。我們生產了大約 22,000 噸銅、13,000 盎司黃金、564,000 盎司白銀和 437 噸鉬。銅和鉬的產量高於第二季度，而金和銀的產量較低主要是由於貴金屬品位略有下降。我們已經看到今年秘魯的產量連續季度增長。正如之前披露的那樣，我們預計這一趨勢將持續到第四季度，這得益於 Pampacancha 的顯著更高等級。因此，所有金屬的全年產量仍有望實現 2022 年的指導範圍。

Total ore mined increased quarter-over-quarter due to higher amounts of ore mine from Pampacancha. The Constancia mill performed well during the third quarter with all mill nearly unchanged from the second quarter despite the planned maintenance shutdown. Milled copper grades increased quarter-over-quarter due to better-than-planned grades from Constancia. Third quarter combined unit operating costs in Peru were 9% higher than the second quarter, primarily due to continued inflationary pressures on fuel, consumables and energy costs. Hudbay expects to complete a 4-day mill shutdown at Constancia in November 2022 to advance maintenance activities that were originally planned for the first quarter of 2023. As a result of ongoing inflationary cost pressures and the additional mill maintenance in the fourth quarter, full year unit operating costs in Peru are expected to be near the top end of the 2022 guidance range.

由於來自 Pampacancha 的礦石量增加，開采的礦石總量環比增加。 Constancia 工廠在第三季度表現良好，儘管計劃進行維護停產，但所有工廠與第二季度相比幾乎沒有變化。由於來自 Constancia 的好於計劃的等級，研磨銅等級環比增加。秘魯第三季度的綜合單位運營成本比第二季度高出 9%，這主要是由於燃料、消耗品和能源成本的持續通脹壓力。 Hudbay 預計將於 2022 年 11 月完成 Constancia 工廠為期 4 天的停工，以推進原計劃於 2023 年第一季度進行的維護活動。由於持續的通脹成本壓力和第四季度額外的工廠維護，全年秘魯的單位運營成本預計將接近 2022 年指導範圍的上限。

Peru's cash cost in the third quarter declined by 8% to $1.68 per pound of copper. This improvement over the second quarter was primarily due to higher byproduct credits and higher copper production. Copper cash costs are expected to continue to decline in the fourth quarter with higher anticipated copper production and contributions from precious metal byproduct credits. However, full year cash costs in Peru are expected to exceed the upper end of the 2022 guidance range by approximately 5%, primarily due to the inflationary cost environment. Peru's sustaining cash cost declined by 6% compared to the second quarter, mainly due to the same factors affecting cash costs, offset by slightly higher sustaining capital expenditures and royalties.

秘魯第三季度的現金成本下降了 8% 至每磅銅 1.68 美元。與第二季度相比的改善主要是由於副產品信貸增加和銅產量增加。銅現金成本預計將在第四季度繼續下降，因為預期銅產量增加以及貴金屬副產品信貸的貢獻。然而，秘魯的全年現金成本預計將超過 2022 年指導範圍的上限約 5%，這主要是由於通貨膨脹的成本環境。與第二季度相比，秘魯的維持現金成本下降了 6%，這主要是由於影響現金成本的相同因素被維持資本支出和特許權使用費略高所抵消。

Moving to Slide 5. We will discuss our Manitoba operations. During the third quarter, the Manitoba operations produced over 40,000 ounces of gold, almost 10,000 tonnes of zinc, approximately 2,000 tonnes of copper and 153,000 ounces of silver. Production of all metals was lower than the second quarter, primarily due to the 777 closure. We saw successive quarterly gold production increases out of Snow Lake this year, and that trend continued into the third quarter with an 8% quarter-over-quarter improvement. This was due to higher Lalor gold grades and increased gold recoveries at both Stall and New Britannia. Full year production of all metals in Manitoba is on track to achieve guidance ranges for 2022.

轉到幻燈片 5。我們將討論我們在馬尼托巴省的業務。第三季度，曼尼托巴省的業務生產了超過 40,000 盎司黃金、近 10,000 噸鋅、約 2,000 噸銅和 153,000 盎司白銀。所有金屬的產量都低於第二季度，這主要是由於 777 關閉。今年，我們看到 Snow Lake 的黃金產量連續出現季度增長，並且這種趨勢一直持續到第三季度，環比增長 8%。這是由於更高的 Lalor 黃金品位以及 Stall 和 New Britannia 的黃金回收率增加。馬尼托巴省所有金屬的全年產量有望實現 2022 年的指導範圍。

After 18 years of steady production in the 777 and Flin Flon, the final reserves were depleted in June and the mine was decommissioned in early August. The Flin Flon mill was safely placed on long-term care and maintenance during the third quarter. Closure activities in Flin Flon including the zinc plant was substantially completed in the quarter with most of our employees and equipment of value transition to the Snow Lake operations to support Lalor's ramp-up to 5,300 tonnes per day in early 2023. This was a key focus area for the Snow Lake operations during the quarter as the integration of the Flin Flon employees and equipment will allow us to ultimately transition away from the use of contractors.

在 777 和 Flin Flon 穩定生產 18 年後，最終儲量於 6 月耗盡，礦山於 8 月初退役。 Flin Flon 工廠在第三季度安全地進行了長期維護和維護。 Flin Flon 的關閉活動（包括鋅廠）已在本季度基本完成，我們的大部分員工和有價值的設備都轉移到了 Snow Lake 業務，以支持 Lalor 在 2023 年初將產量提高到每天 5,300 噸。這是一個重點本季度 Snow Lake 運營區域，因為 Flin Flon 員工和設備的整合將使我們最終擺脫對承包商的使用。

Lalor's ore production was impacted by an underground scoop tram fire as well as a 2-day Manitoba hydro power outage during the quarter. Once production activities resumed following the power outage, priority was placed on mining the higher-value copper gold ore to maintain throughput at New Britannia mill. In addition, Lalor completed a scheduled maintenance program at the end of the third quarter and into the beginning of the fourth quarter to replace surface ore shoots and complete other pre-winter maintenance activities. Lalor's ore production is expected to return to 4,650 tonnes per day in the fourth quarter and is on track to ramp up to 5,300 tonnes per day in early 2023. Ore mined at Lalor decreased by 16% in the third quarter due to the noted transition and production interruptions impacting operations. Mined gold, zinc and copper grades were 23, 7% and 1% higher, respectively, compared to the second quarter.

本季度，Lalor 的礦石生產受到地下電車火災以及曼尼托巴省為期 2 天的水電停電的影響。停電後生產活動恢復後，優先開採價值較高的銅金礦石，以維持 New Britannia 工廠的產量。此外，Lalor 在第三季度末和第四季度初完成了定期維護計劃，以更換地表礦芽並完成其他冬季前維護活動。 Lalor 的礦石產量預計將在第四季度恢復到每天 4,650 噸，並有望在 2023 年初增加到每天 5,300 噸。由於明顯的過渡和影響運營的生產中斷。與第二季度相比，礦產金、鋅和銅的品位分別提高了 23%、7% 和 1%。

The ore processed at the Snow Lake mills was lower quarter-over-quarter to match the ore feed from Lalor. Stall recoveries were consistent with the metallurgical model for the head grades delivered. The New Britannia mill achieved consistent production in the third quarter, averaging approximately 1,440 tonnes per day. Metal recoveries have now stabilized near targeted levels. Additional improvement initiatives will continue to be advanced in the upcoming quarters with a focus on reducing reagents and grinding media consumption that has contributed to higher operating costs than planned. These initiatives require minimal capital expenditures and will further improve overall metal recoveries and copper concentrate grades.

Snow Lake 工廠加工的礦石環比下降，與 Lalor 的礦石進料相匹配。攤位回收率與交付的主要等級的冶金模型一致。 New Britannia 工廠在第三季度實現了穩定的生產，平均每天約 1,440 噸。金屬回收率現已穩定在目標水平附近。在接下來的幾個季度中，將繼續推進其他改進計劃，重點是減少導致運營成本高於計劃的試劑和研磨介質消耗。這些舉措需要最少的資本支出，並將進一步提高整體金屬回收率和銅精礦品位。

Manitoba combined unit operating costs significantly increased compared to the second quarter as we transition to the stand-alone cost structure of Lalor. Unit operating costs were also impacted by higher contractor costs during the transition period, higher costs at New Britannia, continued inflationary cost pressures and lower tonnage with production interruptions. Costs are expected to decline in the fourth quarter, but due to continued inflationary pressures, we expect the full year combined unit costs in Manitoba to exceed the upper end of the guidance range by approximately 5%.

隨著我們過渡到 Lalor 的獨立成本結構，與第二季度相比，馬尼托巴合併單位運營成本顯著增加。單位運營成本還受到過渡期間承包商成本上升、New Britannia 成本上升、持續的通貨膨脹成本壓力以及生產中斷導致噸位下降的影響。預計第四季度成本將下降，但由於持續的通脹壓力，我們預計馬尼托巴省全年的綜合單位成本將超過指導範圍的上限約 5%。

Gold cash cost in the second quarter were $216 per ounce, higher than the second quarter, primarily due to lower byproduct credits as gold revenue continues to increase and become the largest contributor to total Manitoba revenue. Cash costs were also impacted by higher treatment and refining charges, partially offset by lower on-site and zinc refining costs due to the closure of 777 and the zinc plant. Year-to-date gold cash cost of $136 per ounce continues to track well below the 2022 guidance range. And as such, we reiterate the guidance range for the full year.

第二季度的黃金現金成本為每盎司 216 美元，高於第二季度，這主要是由於黃金收入持續增長並成為馬尼托巴省總收入的最大貢獻者，因此副產品信貸減少。現金成本也受到較高的處理和精煉費用的影響，部分被因 777 和鋅廠關閉而降低的現場和鋅精煉成本所抵消。年初至今每盎司 136 美元的黃金現金成本繼續遠低於 2022 年的指導範圍。因此，我們重申全年的指導範圍。

Our current focus at Copper World is to derisk the project through the completion of prefeasibility activities, state-level permitting and the bulk sampling program in 2023 as discussed on Slide 6. The prefeasibility study is expected to include conversion of the remaining inferred mineral resources to measured and indicated. It will also optimize the layout and sequencing of the processing facilities, including concentrate leach technology, trade-offs and timing, in addition to evaluating other upside opportunities. The process plant prefeasibility level engineering is 85% complete and geotechnical and hydrogeological site investigation activities have been completed. Prefeasibility engineering design and metallurgical test activities are on track to be completed before the end of 2022 with the results expected to be published in the study in the first half of 2023.

如幻燈片 6 所述，我們目前在 Copper World 的重點是通過在 2023 年完成預可行性活動、州級許可和批量抽樣計劃來降低項目風險。預可行性研究預計包括將剩餘的推斷礦產資源轉化為測量和指示。除了評估其他上行機會外，它還將優化加工設施的佈局和順序，包括精礦浸出技術、權衡和時間安排。加工廠預可行性級工程已完成 85%，岩土和水文地質現場調查活動已經完成。預可行性工程設計和冶金測試活動有望在 2022 年底前完成，預計結果將於 2023 年上半年在研究中公佈。

Copper World requires state and local permits for Phase 1. We submitted an Aquifer Protection Permit application to the Arizona Department of Environmental Quality, known as ADEQ, in September. And in October, we submitted the application for an air quality permit to the ADEQ. We expect to receive these 2 remaining state permits by mid-2023. The other key state permit, the Mined Land Reclamation Plan was received in July 2022. Upon receipt of the state permits for Phase 1, Hudbay expects to conduct a bulk sampling program to continue to derisk the project by testing great continuity, variable cutoff effectiveness and metallurgical strategies in high-grade near surface areas of the Peach-Elgin and West pits. We have revisited the timing of a definitive feasibility study for Copper World in light of the current price environment, but it is important to note that nothing has changed with respect to our view that this project is a robust, high-quality copper project that will be developed in the medium term. And our efforts to derisk the project over the next 12 to 18 months will only add value to Copper World and prepare it for the definitive feasibility stage.

Copper World 第一階段需要獲得州和地方許可。我們在 9 月向亞利桑那州環境質量部 (ADEQ) 提交了含水層保護許可申請。 10 月，我們向 ADEQ 提交了空氣質量許可證申請。我們預計將在 2023 年年中之前收到這 2 個剩餘的州許可證。 2022 年 7 月收到了另一個重要的州許可證，即礦山復墾計劃。在收到第一階段的州許可證後，Hudbay 預計將進行批量抽樣計劃，以通過測試良好的連續性、可變的截止有效性和Peach-Elgin 和 West 礦坑高品位近地表區域的冶金策略。鑑於當前的價格環境，我們重新審視了 Copper World 最終可行性研究的時間安排，但重要的是要注意，我們認為該項目是一個穩健、優質的銅項目，將中期得到發展。我們在未來 12 到 18 個月內為降低項目風險所做的努力只會增加 Copper World 的價值，並為最終的可行性階段做好準備。

Turning to Slide 8. We recently executed the surface rights exploration agreement with the community over Chicago that allows for exploration of the Maria Reyna and Caballito properties. Hudbay owns the mineral rights to these properties that are located within trucking distance of the Constancia processing facility, and we completed geophysical surveys in the area that indicate large-scale potential at Maria Reyna and Caballito. Shortly after the community exploration agreement was completed, we commenced baseline environmental and archeological activities to advance the permitting process to allow for drilling the properties in the future.

轉到幻燈片 8。我們最近與芝加哥社區簽署了地表權勘探協議，允許勘探 Maria Reyna 和 Caballito 地產。 Hudbay 擁有這些位於康斯坦西亞加工廠卡車運輸距離內的礦產的礦產權，我們在該地區完成了地球物理調查，表明 Maria Reyna 和 Caballito 具有大規模潛力。社區勘探協議完成後不久，我們就開始了基線環境和考古活動，以推進許可程序，以便在未來對這些物業進行鑽探。

Our geological team commenced surface investigation activities and field evidence confirms that both Caballito and Maria Reyna host sulfide and oxide rich copper mineralization skarns, hydrothermal breccias and large porphyry intrusive bodies. Similar to Pampacancha, Caballito is located about 5 kilometers from Constancia and includes an old open pit mine that was operated by Mitsui until the early 1990s. A United States geological survey from 1990 estimated a total resource of 91 million tonnes as 2.3% copper for the open pit mine. We have collected hand samples in the old Mitsui pit, which confirmed the mineralization is both copper oxides and sulfides rich with extensive occurrence of chalcopyrite and bornite.

我們的地質團隊開始了地表調查活動，現場證據證實，Caballito 和 Maria Reyna 都擁有富含硫化物和氧化物的銅礦化矽卡岩、熱液角礫岩和大型斑岩侵入體。與 Pampacancha 類似，Caballito 距離 Constancia 約 5 公里，包括一個由 Mitsui 經營直到 1990 年代初的舊露天礦。 1990 年的一項美國地質調查估計露天礦的總資源量為 9100 萬噸，含銅量為 2.3%。我們在舊三井礦坑採集了手樣，證實礦化為富含銅氧化物和硫化物，並廣泛存在黃銅礦和斑銅礦。

Maria Reyna is approximately 10 kilometers from Constancia and hosts 3 types of mineralization, skarn, hydrothermal breccia and porphyry with magnetite and garnet skarn and hydrothermal breccias having the potential to host high-grade zones. Artisanal mining activity is present in these high-grade areas and the local operators reported producing an average grade between 2% and 6% copper in their small-scale selective mining activities.

Maria Reyna 距離 Constancia 約 10 公里，擁有 3 種類型的礦化、矽卡岩、熱液角礫岩和斑岩，其中磁鐵礦和石榴石矽卡岩和熱液角礫岩有可能成為高品位礦區。這些高品位地區存在手工採礦活動，當地運營商報告稱，他們在小規模選擇性採礦活動中生產的銅平均品位在 2% 至 6% 之間。

And now Andre will speak to our Llaguen mineral resource update and recent drilling at our Flin Flon tailings. Andre?

現在 Andre 將介紹我們的 Llaguen 礦產資源更新和最近在 Flin Flon 尾礦的鑽探。安德烈？

Thanks, Peter.

謝謝，彼得。

Yesterday, we provided a detailed exploration update with our quarterly results, which included the announcement of an initial mineral resource for our Llaguen property seen on Slide 9. Llaguen is a copper-molybdenum porphyry deposit located in the La Libertad region in Northwestern Peru. The project is 100% owned by Hudbay and is favorably located near the city of Trujillo, close proximity to existing infrastructure, water and power supply. A bit of background, we optioned the property from Vale in 2017 and have since leveraged our Peru community relations expertise to complete an exploration agreement with the local community. We conducted geological mapping, geochemical sampling and completed a 28-hole confirmation drill program in 2021 and 2022. The initial resource estimate was developed based on this drill program, combined with a 23 hole historical drill program completed by Vale from 2006 to 2008.

昨天，我們提供了季度結果的詳細勘探更新，其中包括幻燈片 9 中 Llaguen 礦產初始礦產資源的公告。Llaguen 是位於秘魯西北部 La Libertad 地區的銅鉬斑岩礦床。該項目由 Hudbay 100% 擁有，地理位置優越，靠近特魯希略市，靠近現有的基礎設施、水和電力供應。了解一下背景，我們在 2017 年從淡水河谷選擇了該物業，此後利用我們在秘魯社區關係方面的專業知識與當地社區完成了一項勘探協議。我們進行了地質測繪、地球化學取樣，並在 2021 年和 2022 年完成了 28 孔確認鑽探計劃。初步資源估算是基於該鑽探計劃，並結合淡水河谷在 2006 年至 2008 年完成的 23 孔歷史鑽探計劃得出的。

The mineralization in most cases starts from surface with a low strip ratio of 0.9, and the initial mineral resource estimate is at a higher level of geological confidence than we expected at this stage due to the continuous nature of the mineralization. The resource estimate includes 271 million tonnes of indicated at 0.42 copper equivalent and 83 million tonnes of inferred at 0.3% copper equivalent. The global resource contains a higher grade portion at the center of the deposit, which starts from surface. The high-grade resource includes 113 million tonnes of an indicated 0.6% copper equivalent. We have initiated preliminary technical studies at Llaguen, including metallurgical test work as well as geotechnical and hydrological studies, which are expected to be incorporated into a preliminary economic assessment at a later date. The mineralization at Llaguen remains open to the northeast, northwest and at depth as well as several untested geophysical targets that exist in the region, which could add to the mineral resource estimate in the future.

在大多數情況下，礦化是從地表開始的，剝採比很低，僅為 0.9，由於礦化的連續性，初始礦產資源估計的地質置信度高於我們現階段的預期。資源估算包括 2.71 億噸指示品位為 0.42 銅當量和 8300 萬噸推斷品位為 0.3% 銅當量。全球資源在礦床中心包含較高品位的部分，從地表開始。高品位資源包括 1.13 億噸指示品位 0.6% 的銅當量。我們已經在 Llaguen 啟動了初步技術研究，包括冶金測試工作以及岩土和水文研究，預計這些研究將在以後納入初步經濟評估。 Llaguen 的礦化區仍然向東北、西北和深處開放，以及該地區存在的幾個未經測試的地球物理目標，這可能會增加未來的礦產資源估計。

The last slide in our exploration update is on Slide 10. Our 2022 exploration efforts in Manitoba have been focused on completing ongoing infilling drilling at Lalor and 1901 as well as confirmatory drilling in our Flin Flon tails. This facility holds in excess of 100 million tonnes of tailings that have been deposited over a span of 90 years. The results from recent drilling indicate higher zinc, copper and silver grades than reported from our historical mill records, and we also confirmed the historical gold grade. Given these results, we plan to complete metallurgical test work on the Flin Flon tails to assess metallurgical recoveries. Our Anderson tails facility in Snow Lake also contains significant amounts of gold deposited over many years. Given our enhanced gold processing capacity in Snow Lake, we intend to evaluate a similar opportunity to reprocess the Anderson tailings.

我們勘探更新的最後一張幻燈片在幻燈片 10 上。我們 2022 年在曼尼托巴的勘探工作重點是完成 Lalor 和 1901 正在進行的加密鑽探以及我們 Flin Flon 尾部的驗證性鑽探。該設施擁有超過 1 億噸的尾礦，這些尾礦已沉積了 90 年。最近的鑽探結果表明鋅、銅和銀的品位高於我們歷史工廠記錄中報告的品位，我們還證實了歷史黃金品位。鑑於這些結果，我們計劃完成 Flin Flon 尾礦的冶金測試工作，以評估冶金回收率。我們在雪湖的安德森尾礦設施也含有大量多年來沉積的黃金。鑑於我們在雪湖的黃金加工能力增強，我們打算評估一個類似的機會來重新加工安德森尾礦。

And now I'll pass it over to Eugene.

現在我將把它傳遞給尤金。

Thanks, Andre.

謝謝，安德烈。

Moving to Slide 11. The short-term pullback and copper prices has only enhanced our long-term conviction for copper. Head grade is declining, and we haven't seen any new copper projects being sanctioned. It is clear that global mine supply will be unable to meet demand from global decarbonization initiatives. For these reasons, we believe that the long-term supply and demand fundamentals for copper remain strong. However, in the short term, we have all been faced with higher input prices, coupled with the recent decline in copper prices, significantly squeezing margins.

轉到幻燈片 11。短期回調和銅價只會增強我們對銅的長期信心。原礦品位正在下降，我們還沒有看到任何新的銅礦項目獲得批准。很明顯，全球礦產供應將無法滿足全球脫碳計劃的需求。基於這些原因，我們認為銅的長期供需基本面依然強勁。然而，在短期內，我們都面臨著更高的投入價格，加上近期銅價下跌，利潤率受到明顯擠壓。

While we do benefit from having our mines positioned in the first quartile of the cost curve, we have focused our efforts on maximizing operating efficiencies and implementing discretionary cost reductions in this challenging environment. In light of this, we have taken several steps to reduce discretionary spending by $30 million for the remainder of 2022 and are targeting more than $50 million in discretionary spending cuts as part of our 2023 budgeting process as we focus on generating free cash flow.

雖然我們確實受益於將我們的礦山置於成本曲線的第一個四分位數，但我們已將我們的努力集中在最大限度地提高運營效率和在這個充滿挑戰的環境中實施可自由支配的成本削減上。有鑑於此，我們已採取多項措施，在 2022 年剩餘時間內將可自由支配支出減少 3000 萬美元，併計劃在 2023 年預算過程中削減超過 5000 萬美元，因為我們專注於產生自由現金流。

In Arizona, we are reducing our 2022 exploration, evaluation and growth spending by $10 million. As Peter mentioned, we are also delaying the expected timing for our Copper World definitive feasibility study to 2024, which will reduce Arizona growth expenditures in 2023. We will prioritize the completion of that prefeasibility study and state level permits next year, which will allow us to begin our joint venture efforts. The planned bulk sample program will derisk the project and kick off our feasibility work without further spending on drilling and detailed engineering in 2023.

在亞利桑那州，我們將 2022 年的勘探、評估和增長支出減少 1000 萬美元。正如彼得提到的，我們還將銅世界最終可行性研究的預期時間推遲到 2024 年，這將減少亞利桑那州 2023 年的增長支出。我們將在明年優先完成預可行性研究和州級許可，這將使我們能夠開始我們的合資努力。計劃中的批量樣本計劃將降低項目風險並啟動我們的可行性工作，而無需在 2023 年進一步花費鑽井和詳細工程。

In Manitoba, we are deferring plans for early development of the 1901 deposit, resulting in a savings of $5 million of gross spending in 2022 and additional amounts that were previously planned to be accelerated into 2023. These deferrals do not impact our ability to achieve the 2026 start date as laid out in our current mine plan, which contemplates the first spend at 1901 in 2024.

在馬尼托巴省，我們推遲了 1901 礦床的早期開發計劃，從而在 2022 年節省了 500 萬美元的總支出，以及之前計劃加速到 2023 年的額外金額。這些推遲不會影響我們實現我們當前的礦山計劃中規定的 2026 年開始日期，該計劃預計在 2024 年的 1901 年進行首次支出。

In Peru, we are evaluating low capital alternatives to installing a public crusher saving $22 million of growth capital next year. Furthermore, we are deferring $15 million of 2022 gross spending in Peru and Manitoba relating to the mill recovery improvement programs and other capital projects. These high-return recovery projects remain on track for completion in 2023 with their capital spending profile to smooth over the next 6 to 12 months. We are also rationalizing our noncore asset portfolio with the divestiture of the 100% interest in our Lordsburg property in New Mexico, which was acquired through the Mason acquisition in 2018. And yesterday, we completed the sale of our equity interest in Fireweed, which received in 2018 in exchange for the sale of our Tom and Jason properties in the Yukon.

在秘魯，我們正在評估安裝公共破碎機的低資本替代方案，明年可節省 2200 萬美元的增長資本。此外，我們將推遲 2022 年在秘魯和馬尼托巴省與工廠恢復改善計劃和其他資本項目相關的總支出中的 1500 萬美元。這些高回報的複蘇項目仍有望在 2023 年完成，其資本支出狀況將在未來 6 至 12 個月內趨於平穩。我們還通過剝離我們在新墨西哥州洛茲堡物業的 100% 權益來合理化我們的非核心資產組合，該物業是通過 2018 年收購 Mason 獲得的。昨天，我們完成了對 Fireweed 股權的出售，該股權已獲得2018 年，以換取我們在育空地區出售 Tom 和 Jason 的房產。

We have reinvigorated our focus on deleveraging and disciplined capital allocation to unlock value in our pipeline, as shown on Slide 12. After completing our recent brownfield investment program in the first quarter, we are now entering a period of significant free cash flow over the next few years. To that end, we've improved our net debt position by $71 million to $897 million at the end of the third quarter. We also repaid 38% of the gold prepay liability during 2022 year-to-date, and the remaining $80 million will be repaid by the end of next year.

如幻燈片 12 所示，我們重新將重點放在去槓桿化和有紀律的資本分配上，以釋放我們管道中的價值。在第一季度完成我們最近的棕地投資計劃後，我們現在將進入下一季度的大量自由現金流期數年。為此，我們在第三季度末將淨債務頭寸改善了 7100 萬美元，達到 8.97 億美元。我們還在 2022 年年初至今償還了 38% 的黃金預付負債，其餘 8000 萬美元將在明年年底前償還。

As part of our disciplined capital allocation approach, we have introduced a 3 prerequisite plan, which I'm calling the 3P plan for greenlighting Copper World. This 3P plan includes specific targets and milestones that will need to be achieved prior to making an investment decision in this project. The first prerequisite is permits. We need to receive all state-level permits acquired for Phase 1. The second is a plan. This includes the completion of the definitive feasibility study with an internal rate of return greater than 15%. And third, most importantly, is a prudent financial strategy.

作為我們嚴格的資本配置方法的一部分，我們推出了 3 個先決條件計劃，我稱之為綠化銅世界的 3P 計劃。該 3P 計劃包括在對該項目做出投資決策之前需要實現的具體目標和里程碑。第一個先決條件是許可證。我們需要獲得第一階段獲得的所有州級許可證。第二個是計劃。這包括完成內部收益率超過 15% 的最終可行性研究。第三，也是最重要的一點，是審慎的財務策略。

This multifaceted strategy contemplates a committed minority joint venture partner, a renegotiated pressure stream agreements, a net debt-to-EBITDA ratio of less than 1.2x, a minimum cash balance of $600 million and limited nonrecourse project level debt of up to $500 million. This 3P plan will ensure Hudbay will be in the best position to move the Copper World project forward with the lowest cost of capital and highest risk-adjusted return on investment. Based on current estimated time lines, we think the earliest we will be in a position to prudently sanction Copper World would be late 2024. Copper World will ultimately be evaluated against other competing investment opportunities as part of our robust capital allocation process to ensure we're delivering the highest returns for our shareholders.

這一多方面戰略考慮了一個忠誠的少數合資夥伴、重新談判的壓力流協議、低於 1.2 倍的淨債務與 EBITDA 比率、最低 6 億美元的現金餘額和高達 5 億美元的有限無追索權項目級債務。該 3P 計劃將確保 Hudbay 處於最佳位置，以最低的資本成本和最高的風險調整後投資回報率推進 Copper World 項目。根據目前估計的時間表，我們認為我們最早能夠審慎地批准 Copper World 的時間是 2024 年底。Copper World 最終將根據其他競爭性投資機會進行評估，作為我們穩健的資本配置流程的一部分，以確保我們“為我們的股東帶來最高回報。

Now back to Peter.

現在回到彼得。

Thanks, Eugene. Concluding on Slide 13, and reiterating what Eugene said earlier on our continued view of strong long-term fundamentals for copper, we believe we are well positioned to reap the rewards from the strong copper outlook with our high-quality copper growth pipeline. We have the highest near-term free cash flow growth and the highest leverage to copper among our mid-tier base metal tiers, and we have successfully increased our copper equivalent resources per share by more than 2.5x over the past 10 years. For these reasons, we believe Hudbay is uniquely positioned to offer attractive copper production growth and long-term optionality for shareholders.

謝謝，尤金。總結幻燈片 13，並重申 Eugene 早些時候所說的我們對銅長期強勁基本面的持續看法，我們相信我們已經做好準備，通過我們高質量的銅增長渠道從強勁的銅前景中獲得回報。在我們的中等基本金屬層級中，我們擁有最高的近期自由現金流增長和最高的銅槓桿率，並且在過去 10 年中我們成功地將每股銅當量資源增加了 2.5 倍以上。由於這些原因，我們認為 Hudbay 具有獨特的優勢，可以為股東提供有吸引力的銅產量增長和長期選擇權。

And with that, we're happy to take your questions.

因此，我們很樂意回答您的問題。

(Operator Instructions) Our first question comes from Jackie Przybylowski of BMO Capital Markets.

（操作員說明）我們的第一個問題來自 BMO Capital Markets 的 Jackie Przybylowski。

Congrats on the quarter. And I guess, congrats to the new appointees. I know it's been a while now, but congratulations to Eugene and Andre. I guess I wanted to ask, maybe it's for you, Eugene or maybe it's for Peter, a question about the statement in the MD&A about reducing discretionary spending and shoring up the balance sheet. I understand the need to do that, and that definitely seems prudent to do that. But how do you do that at the same time as moving forward, your exploration projects, whether it's Copper World exploration or Llaguen or elsewhere? Where do you see the priorities for your spending?

祝賀這個季度。我想，祝賀新任命的人。我知道現在已經有一段時間了，但祝賀 Eugene 和 Andre。我想我想問，也許是給你，Eugene 或者也許是給 Peter，關於 MD&A 中關於減少可自由支配支出和支撐資產負債表的聲明的問題。我理解這樣做的必要性，而且這樣做似乎絕對是明智的。但是你如何在推進你的勘探項目的同時做到這一點，無論是 Copper World 勘探、Llaguen 還是其他地方？您在哪裡看到支出的優先順序？

I think it's all -- is a matter as you say of reprioritization. So no matter what we do, we do want to still continue to move forward our strategic objectives of growth in copper. But let me ask Eugene to talk a little bit more directly to the specifics of your question.

我認為這就是全部 - 正如您所說的重新確定優先級的問題。因此，無論我們做什麼，我們都希望繼續推進我們的銅增長戰略目標。但是讓我請 Eugene 更直接地談談你問題的具體細節。

Jackie, the focus on deleveraging and generating free cash flow benefits itself in many ways. And the first is, we want to continue to invest in those opportunities. And like the brownfield ones that we completed that generate, we'll call it near-term cash flow. So to that end, we are completing the stall recovery program over the course of the next six to 12 months. But what we've done with that is we smooth some of the spending to allow us to fund it in a way that reduces strain on the balance sheet based on the current copper environment.

Jackie 專注於去槓桿化和產生自由現金流本身在很多方面都有好處。首先，我們希望繼續投資於這些機會。就像我們完成的棕地項目一樣，我們將其稱為近期現金流量。因此，為此，我們將在接下來的 6 到 12 個月內完成失速恢復計劃。但我們所做的是，我們平滑了一些支出，使我們能夠根據當前的銅環境，以減少資產負債表壓力的方式為其提供資金。

Similarly, our focus on Copper World is to spend on the PFS and to get the project ready for bulk sampling. We think that, that's the highest return. Doing a bunch of feasibility level drilling and completing the definitive feasibility study in the next six months doesn't really generate a lot of return for us. So again, it's just reprioritizing where the capital goes for the maximum benefit without losing schedule. As I said before, for Copper World, we see the earliest sanctioning of that being late 2024. So there's really no need to do the feasibility study in '23, if we're prudently allocating capital and can put that money to Stall or any of the other projects within our pipeline that generate near-term cash flow.

同樣，我們對 Copper World 的關注是在 PFS 上投入資金，並讓項目為批量採樣做好準備。我們認為，這是最高的回報。在接下來的六個月內進行一系列可行性水平的鑽探並完成最終的可行性研究並不會真正為我們帶來很多回報。因此，再次強調，它只是在不影響進度的情況下重新確定資本的優先順序，以獲得最大利益。正如我之前所說，對於 Copper World，我們看到最早的批准是在 2024 年末。因此，如果我們謹慎地分配資本並且可以將這筆錢投入 Stall 或任何公司，那麼真的沒有必要在 23 年進行可行性研究我們管道中產生近期現金流的其他項目。

I would also add, in addition to that, Jackie, that we -- as soon as we have access to start drilling at the satellites at Maria Reyna and Caballito, we're going to drill, regardless of whether we've appropriated the money in the next six or 12 months or whatever. So we are pushing as hard as we can to get drilling permits in Peru so that we can start that work, because I guess for those on the line who aren't aware -- who don't know these satellites, these are potentially the future of the company. They are incredibly exciting, and we will do whatever needs to be done to expose their value.

Jackie，除此之外，我還要補充一點，一旦我們能夠開始在 Maria Reyna 和 Caballito 的衛星上進行鑽探，我們就會進行鑽探，無論我們是否已經撥款在接下來的 6 個月或 12 個月之內。因此，我們正在盡我們所能爭取在秘魯獲得鑽探許可，以便我們可以開始這項工作，因為我猜對於那些不知道這些衛星的人來說，這些可能是公司的未來。它們非常令人興奮，我們將盡一切努力來揭示它們的價值。

Yes. That's good. That's an excellent point to add. And that drilling is more important than drilling out the feasibility drilling for Copper World. So again, we're preparing the company to make those decisions in the best possible way.

是的。那挺好的。這是一個很好的補充點。而且該鑽探比為 Copper World 鑽探可行性鑽探更重要。因此，我們再次讓公司做好準備，以盡可能最好的方式做出這些決定。

That's really helpful. And maybe a follow-up question or a sort of semi-related question for Andre on the tailings reprocessing work that's happening in Manitoba. I'm just wondering if the priorities changed between doing that tailings reprocess and work at 777 versus around the Snow Lake area. It sounds like -- I know you mentioned that there is excess mill capacity at Snow Lake now. Does that sort of move Snow Lake up in the priority list given you've closed 777, you probably don't have as big of a workforce there anymore and your -- restore shifting or is 777 area, Flin Flon area is still the priority for that project?

這真的很有幫助。也許是安德烈關於馬尼托巴省正在進行的尾礦再加工工作的後續問題或某種半相關問題。我只是想知道在進行尾礦再加工和在 777 工作與在雪湖地區周圍工作之間的優先級是否發生了變化。聽起來——我知道你提到過雪湖現在的工廠產能過剩。考慮到你已經關閉了 777，這種做法是否會在優先列表中將 Snow Lake 提升到優先級列表中，你可能不再在那裡擁有那麼多的勞動力，而且你的 - 恢復轉移或者是 777 區域，Flin Flon 區域仍然是優先事項那個項目？

Thanks for the question, Jackie. It's an interesting one. So right now, we're taking a very measured approach with the Flin Flon Tails. So we've completed the initial drilling and the logical next step is to progress and develop a flow sheet from metallurgical testing. And so -- and what you just highlighted is, we have many, many opportunities in Manitoba, not just the Flin Flon Tails. We also have Anderson Tails, which is quite exciting. And so, we'll put them through our rigorous capital allocation process. But what I would say is, what you kind of alluded to is the Anderson Snow Lake Tails, and we're already recovering gold from Lalor mine. Any further enhancements that will improve gold recovery in Manitoba, whether it's -- we're currently looking at Stall mill further gold opportunities, which could tie in with the Anderson Tails.

謝謝你的問題，傑基。這是一個有趣的。所以現在，我們對 Flin Flon Tails 採取了非常謹慎的方法。因此，我們已經完成了初步鑽探，合乎邏輯的下一步是推進和開發冶金測試的流程圖。所以——你剛才強調的是，我們在馬尼托巴省有很多很多機會，而不僅僅是 Flin Flon Tails。我們還有 Anderson Tails，這非常令人興奮。因此，我們將對他們進行嚴格的資本分配流程。但我要說的是，你提到的是 Anderson Snow Lake Tails，我們已經在從 Lalor 礦山開採黃金。任何將改善馬尼托巴省黃金回收率的進一步改進，無論是——我們目前正在尋找 Stall 磨機進一步淘金的機會，這可能與 Anderson Tails 相結合。

The future of Lalor, which is still open at depth, we'll benefit from those improvements. And so it's probably logical for us if you're prioritizing resources, we haven't deprioritized. But what I'd say is, we just -- we're not aggressively fast tracking it. And definitely top of mind, Anderson, it definitely fits with the current operations to be advancing that in parallel and where it makes sense to fast track that to line up with the mine life of Lalor.

Lalor 的未來在深度上仍然開放，我們將從這些改進中受益。因此，如果您對資源進行優先排序，這對我們來說可能是合乎邏輯的，我們沒有降低優先級。但我要說的是，我們只是——我們並沒有積極地快速跟踪它。絕對最重要的是，安德森，它絕對符合當前的操作，可以並行推進，並且快速跟踪與 Lalor 的礦山壽命保持一致是有意義的。

Our next question comes from Orest Wowkodaw of Scotiabank.

我們的下一個問題來自豐業銀行的 Orest Wowkodaw。

I wanted to get some color on the cost situation in Manitoba. We saw a pretty big jump up in cost per ton there to $2.35 a ton in Q3. I realize it's a transition quarter with 777 workforce moving over. But can you give us a sense of how quickly those costs per ton may decline, assuming that inflationary pressures just stay the same?

我想了解一下馬尼托巴省的成本情況。我們看到第三季度每噸成本大幅上漲至每噸 2.35 美元。我意識到這是一個過渡季度，有 777 名員工搬過來。但是，假設通貨膨脹壓力保持不變，您能告訴我們每噸成本下降的速度有多快嗎？

Orest, look, I'll provide a couple of comments and then maybe ask Eugene and Andre to add a little bit more color. But we expected the unit cost to increase in the second half as a result of removing the lower cost 777 from the calculation. Also, we've been experiencing continued increases in the prices and materials and consumables such as fuel, reagents, grinding media and contractor costs that I mentioned earlier. Also, the third -- Q3 was a period of transition for Manitoba, and we were focused on training the Flin Flon workforce for their new positions in Snow Lake, and this transition process takes time and additional contractors were acquired during the period to onboard our Flin Flon employees.

Orest，你看，我會提供一些評論，然後可能會要求 Eugene 和 Andre 添加更多顏色。但我們預計，由於從計算中剔除了成本較低的 777，單位成本將在下半年增加。此外，我們一直在經歷我之前提到的燃料、試劑、研磨介質和承包商成本等價格、材料和消耗品的持續上漲。此外，第三季度 - 第三季度是曼尼托巴省的過渡期，我們專注於培訓 Flin Flon 員工在雪湖的新職位，這個過渡過程需要時間，在此期間還收購了額外的承包商來加入我們Flin Flon 員工。

So we'll continue to see lower contractor costs in fourth quarter and in 2023 as contractors are released, and we have a fully trained workforce. And I guess the third element was that in the third quarter, we were impacted by one-off production interruptions, which we don't expect to occur going forward. So fourth quarter unit costs should be lower than Q3, and we should trend towards those lower costs going into the new year. Andre, would you add any more to that?

因此，隨著承包商被釋放，我們將在第四季度和 2023 年繼續看到較低的承包商成本，並且我們擁有訓練有素的員工隊伍。我猜第三個因素是，在第三季度，我們受到了一次性生產中斷的影響，我們預計這種情況不會在未來發生。因此，第四季度的單位成本應該會低於第三季度，我們應該會在新的一年裡趨向於降低成本。安德烈，你能補充更多嗎？

All I'd say is, the transition is going well, and it's going a little bit slower. And as Peter had mentioned, what the plan was, is to have -- while we are training our people as they came over from Flin Flon, we were having a contract resource as Peter was alluding to. I think we had close to over 200 people of contract resources supporting us in the transition. And that's -- what's happened is there's been a little bit more turnover than we'd expected. People were moving from Flin Flon to Snow Lake and decided to look for other opportunities. And so that's slowed that process. But as Peter alluded, it's a one-time thing in the transition. We expect to be down to about 25 to 50 or so contractors by December is the plan. And so we definitely will see decreases.

我要說的是，過渡進展順利，但速度有點慢。正如彼得所提到的，計劃是要擁有——當我們正在培訓我們的員工時，因為他們來自 Flin Flon，我們擁有合同資源，正如彼得所暗示的那樣。我認為我們有近 200 多名合同資源人員在過渡期間支持我們。那就是 - 發生的事情是營業額比我們預期的要多一點。人們從 Flin Flon 搬到 Snow Lake，並決定尋找其他機會。所以這減慢了這個過程。但正如彼得所暗示的那樣，這是過渡中的一次性事情。我們預計到 12 月將減少到大約 25 到 50 個左右的承包商是計劃。所以我們肯定會看到減少。

And also, the focus has been very much on New Britannia getting the gold recoveries, which we have been really successful and we're very happy with. And now we're focusing on costs. So we've probably been putting a little bit too much [cyanide] aggressively to make sure we get the recoveries -- and over the course of this last month, we've really dialed that back, which reduces our cost tremendously at New Brit, both in the cyanide consumption as well as the cyanide destruction reagents.

而且，重點一直放在新不列顛尼亞獲得黃金回收上，我們真的很成功，我們對此感到非常高興。現在我們關注成本。因此，我們可能積極地投入了過多的 [氰化物] 以確保我們獲得回收——在上個月的過程中，我們確實撥回了它，這極大地降低了 New Brit 的成本，無論是在氰化物消耗量還是氰化物破壞試劑方面。

And so we'll see benefits going forward as well. So it's definitely not a long-term thing for Manitoba. It's a combination of what Peter said is transition, part of the tail-end of the ramp-up of working through the refinements and those one-time events with, unfortunately, the power outage and the fire, and we're looking to a much better cost in Q4 and beyond.

因此，我們也會看到未來的好處。所以這對馬尼托巴來說絕對不是一個長期的事情。這是 Peter 所說的過渡的組合，是通過改進和那些一次性事件的斜坡尾部的一部分，不幸的是，停電和火災，我們正在尋找一個第四季度及以後的成本要好得多。

Okay. And just following up on Jackie's question. Your release talks about a $50 million in identified savings for next year. I realize it's probably budgeting season and you haven't issued any guidance yet. But can we -- how much of a year-over-year decline do you think we can anticipate in total CapEx next year from the $340 million number this year? Like would it be below $300 million or not so much?

好的。只是跟進 Jackie 的問題。您的發布談到了明年確定的 5000 萬美元的節省。我意識到現在可能是預算編制季節，您還沒有發布任何指導意見。但是我們可以 - 你認為我們可以預計明年的總資本支出會比今年的 3.4 億美元下降多少？它會低於 3 億美元還是不會那麼多？

We're still in the midst of the budgeting Orest. And as I said, we've done a [$50 million.] And obviously, we've seen some inflationary pressures. We're going to make -- announce the most capital-efficient plan as we can early in the new year. But rest assured, we're pouring over every dollar across all business lines.

我們仍處於預算 Orest 之中。正如我所說，我們已經完成了 [5000 萬美元]。顯然，我們已經看到了一些通脹壓力。我們將在新年伊始盡可能地宣布最具資本效率的計劃。但請放心，我們正在為所有業務線傾注每一分錢。

Our next question comes from Greg Barnes of TD Securities.

我們的下一個問題來自道明證券的格雷格巴恩斯。

Eugene and Peter obviously applaud the steps taken to reduce discretionary spending. But a lot of it -- or some of it seems to be focused on projects that were going to improve recoveries and improving efficiencies at the mills. Are you taking some risks here and that you don't get those efficiencies, and that you impact the mine plans and recoveries in production?

尤金和彼得顯然對為減少可自由支配開支而採取的措施表示讚賞。但其中很多 - 或者其中一些似乎集中在將提高回收率和提高工廠效率的項目上。您是否在這裡承擔了一些風險並且您沒有獲得那些效率，並且您影響了礦山計劃和生產恢復？

Look, I don't think so. For example, we said that we were going to not do look at the pebble crush alternative next year. But at the same time, we -- while not doing that, we're still going to look at the potential to reject pebble to prioritize higher grade ore and tons in the mills. So it's not like we are taking stuff out to put ourselves at risk. We're just trying to do stuffs better. Eugene or Andre, any further comments?

看，我不這麼認為。例如，我們說過明年我們不會考慮 pebble crush 替代方案。但與此同時，我們 - 雖然沒有這樣做，但我們仍將研究拒絕鵝卵石以優先考慮磨坊中更高品位礦石和噸的可能性。所以這並不是說我們把東西拿出來讓自己處於危險之中。我們只是想把事情做得更好。 Eugene 或 Andre，還有什麼意見嗎？

None of these cuts impact the mine plans that we have for the next two years. And that's actually a focus, and we're looking at capital spending and the spread between needs and wants and make the allocation appropriately. Andre?

這些削減都不會影響我們未來兩年的礦山計劃。這實際上是一個重點，我們正在研究資本支出以及需求和需求之間的差距，並適當地進行分配。安德烈？

Yes. So the Stall project is going as fast as it possibly can in terms of delivering the metallurgical improvements there. So there's -- any sort of shifting there isn't because we wanted to shift, it's either dealing with some supply chain challenges and the like. And then with the pulling forward of the maintenance shutdown at Peru in November, which I think is next week. What that does is it pulls forward the second shutdown later on next year. And it actually -- we're looking to the potential earlier commissioning of the gold recovery, I mean, the copper recovery project in Constantia, because it's tied to tying in some finalized pumps at the end, and that was originally going to be later on in the year end, and that will be pulled forward now that we've shifted those shutdowns ahead by a couple of months.

是的。因此，就那裡的冶金改進而言，Stall 項目正在盡可能快地進行。所以有 - 任何類型的轉變都不是因為我們想要轉變，它要么處理一些供應鏈挑戰等。然後隨著 11 月在秘魯的維護停工的提前，我認為是下週。這樣做的目的是將明年晚些時候的第二次關閉提前。實際上——我們正在尋找黃金回收的潛在早期調試，我的意思是康斯坦蒂亞的銅回收項目，因為它與最後安裝一些最終的泵有關，而這本來是要晚些時候進行的在年底開始，現在我們已經將這些停工時間提前了幾個月，這將被提前。

So there is -- we really just focused on the ones, like Peter said is, we found a better way. We found a better way with the pebble crusher where we think that we don't need it, and it's aligned with our variable cutoff strategy. And with the drilling and the stuff that's going on, like Eugene talked about earlier in Copper World, originally, we were drilling ahead of schedule because we thought we wouldn't be able to secure drillers because the market was so tight. Obviously, that's changed. And so now we're not as concerned about re-securing drills when we need it, and we're pacing the drills to when we actually need it in the schedule. So we're just being diligent around the program at this point.

因此，我們真的只是專注於那些，就像彼得所說的那樣，我們找到了更好的方法。在我們認為不需要的地方，我們找到了一種更好的方法來使用卵石破碎機，並且它符合我們的可變截止策略。隨著鑽探和正在進行的事情，就像 Eugene 早些時候在銅世界談到的那樣，最初，我們提前進行了鑽探，因為我們認為我們無法獲得鑽探，因為市場非常緊張。顯然，這已經改變了。因此，現在我們不再擔心在需要時重新進行演習，而是將演習安排在日程表中實際需要的時候進行。所以我們現在只是在這個項目周圍勤奮。

And just a secondary question on Llaguen. It looks like an interesting little project. Does that fit within your pipeline of development projects or some of the strategy you're looking at to move that forward?

還有一個關於 Llaguen 的次要問題。它看起來像一個有趣的小項目。這是否符合您的開發項目管道或您正在尋找的推動該項目的某些戰略？

Greg, I would say it fits in the pipeline to the same extent as Mason does. It's a large project with potentially a very, very significant economics around it. But it is our longer-dated project. And so we're going to -- we'll move it forward prudently. We're going to spend very little on it, but I think the next step is likely a PEA to assess its potential. And you never know, there is potential for us to actually perhaps to do advance to work a little bit further in conjunction with somebody else. But I would say it fits into the same space in Peru as Mason fits into the space in the U.S.

格雷格，我想說它與梅森一樣適合管道。這是一個大型項目，可能會帶來非常非常重要的經濟效益。但這是我們的長期項目。因此，我們將——我們將謹慎地推進它。我們將在這方面花很少的錢，但我認為下一步可能是 PEA 來評估它的潛力。而且你永遠不會知道，我們有可能實際上與其他人一起做進一步的工作。但我會說它適合秘魯的同一個空間，因為梅森適合美國的空間。

(Operator Instructions) Our next question comes from Lawson Winder of Bank of America Securities.

（操作員說明）我們的下一個問題來自美國銀行證券公司的 Lawson Winder。

Peter, Eugene and Andre, it's nice to hear from you all and definitely reiterate the congratulations to you, Eugene. I wanted to ask about Copper World and just with the benefit of additional time to spend on the various studies. Do you continue to believe that the ore will be optimally processed using a sulfide leach approach first, but then one that uses no pressure and heat. And our -- how is the CapEx kind of developing relative to the PEA.

彼得、尤金和安德烈，很高興收到你們所有人的來信，並再次向你們表示祝賀，尤金。我想詢問有關 Copper World 的問題，並希望有更多時間花在各種研究上。您是否繼續相信礦石將首先使用硫化物浸出法進行最佳處理，然後再使用不使用壓力和熱量的方法。我們的資本支出相對於 PEA 的發展情況如何。

Look, I will take a first stab and then I'll ask Andre to expand a little bit. And what we said, I guess what I said in my opening remarks was that, we're progressing the pre-feasibility study looking at a variety of options and also looking at the timing of various options and the sort of the modular nature of those options, as well as trade-offs of the various technologies themselves. And we think that the sulfide leaching process is approximately a $400 million sort of plug-and-play module. And we'll make the decision during the course of pre-feasibility, whether that is now or whether that is later and we'll also make the decision whether in fact, we go with atmospheric leach or whether we go with a medium pressure or whatever similar to what [Flin Flon] is using in Arizona.

聽著，我會先試一試，然後我會請安德烈稍微擴展一下。我們所說的，我想我在開場白中所說的是，我們正在進行預可行性研究，著眼於各種選擇，同時也在考慮各種選擇的時間安排以及這些選擇的模塊化性質選項，以及各種技術本身的權衡。我們認為硫化物浸出過程大約是一種價值 4 億美元的即插即用模塊。我們將在預可行性研究過程中做出決定，無論是現在還是以後任何類似於 [Flin Flon] 在亞利桑那州使用的東西。

So the PFS will take those things into consideration. And when we come out of that, we'll have made much better decisions -- we had been able to take better decisions and also take a look at the optionality of the various modules, whether they get plugged in now or later. Anything further you would add to that, Andre?

因此 PFS 將考慮這些因素。當我們走出困境時，我們將做出更好的決定——我們已經能夠做出更好的決定，並查看各種模塊的可選性，無論它們是現在還是以後插入。安德烈，你還有什麼要補充的嗎？

I think just on the cost question, part of it is -- so the initial work that we've -- and we're trading off a variety of different sulfide leach different scenarios, whether it's high temperature, medium temperature or the [RBM.] And what we're finding at this stage right now is, they're all kind of a wash. So there's not -- you're not picking one versus the other because it's -- you're benefiting from CapEx. We continue to think that the atmospheric leach has the opportunity for us to really go into it slowly so that it's very modular. You could start off with a trial of something very small. That's just a small percentage of the final capacity to verify that that's where you want to go, whereas when you were looking at the larger CapEx wins that you have to design it to the right-size forever with the high-pressure leach, those ones are big commitments.

我認為只是成本問題，其中一部分是——所以我們所做的初步工作——我們正在權衡各種不同的硫化物浸出不同的場景，無論是高溫、中溫還是 [RBM .] 我們現階段發現的是，它們都差不多。所以沒有——你不是在選擇一個而不是另一個，因為它——你從資本支出中受益。我們繼續認為大氣浸出有機會讓我們真正慢慢地進入它，以便它非常模塊化。您可以從嘗試一些非常小的東西開始。這只是驗證那是你想要去的地方的最終容量的一小部分，而當你看到更大的資本支出勝利時，你必須通過高壓浸出將它永遠設計成合適的尺寸，那些是很大的承諾。

But in any case, like Peter mentioned is, we have that optionality, we don't have to do it right away, and it will all be laid out in the pre-feas. And our focus though is, we still believe that leaching sulfides and producing finished copper in the U.S. is aligned to all of our stakeholders, particularly in the U.S. with the demand for copper in the near future.

但無論如何，就像 Peter 提到的那樣，我們有這種選擇權，我們不必馬上去做，這一切都會在預審中安排好。不過，我們的重點是，我們仍然相信在美國浸出硫化物和生產成品銅符合我們所有的利益相關者，特別是在不久的將來對銅有需求的美國。

Yes, the approach you guys are taking makes a lot of sense. If I'm hearing you correctly, I guess you're kind of reserving the right to follow sort of a traditional smelter approach, at least in the initial years as you kind of develop the sulfide lease technology. Is that -- would that be a fair interpretation?

是的，你們採取的方法很有意義。如果我沒聽錯的話，我猜你是在某種程度上保留了採用傳統冶煉方法的權利，至少在開發硫化物租借技術的最初幾年是這樣。那是——這是一個公平的解釋嗎？

Well, except for developing the technology. So we don't develop technologies. So the technology is already developed and proven. But from a risk-based process, we can go at it in a step-wise manner where we feel test it, feel comfortable and where the cost isn't that large. So we can take a measured approach from traditional, send it to a smelter while trialing the -- at a smaller scale to go the one way or we can look to the high-pressure medium-temperature ones, which we're very familiar with from Flin Flon. So we're looking for that options.

好吧，除了開發技術。所以我們不開發技術。因此，該技術已經得到開發和驗證。但是從基於風險的過程中，我們可以逐步進行，在我們覺得測試它、感覺舒服並且成本不是那麼大的地方進行。所以我們可以從傳統的方法中採取一種有節制的方法，把它送到冶煉廠，同時試驗——在較小的規模上採用一種方法，或者我們可以看看我們非常熟悉的高壓中溫方法來自 Flin Flon。所以我們正在尋找這種選擇。

And then just one final question from me. With the Las Bambas community disruptions, obviously, it's had a pretty significant impact on operations there, but we've heard very little from Hudbay. So would it be fair to conclude that there's been little to no disruptions on Constancia operations, particularly with respect to the shared road access, at least year-to-date.

然後是我的最後一個問題。顯然，隨著 Las Bambas 社區的中斷，它對那裡的運營產生了相當大的影響，但我們很少聽到 Hudbay 的消息。因此，可以公平地得出這樣的結論，即 Constancia 的運營幾乎沒有或沒有中斷，尤其是在共享道路方面，至少今年迄今為止是這樣。

Lawson, it would be fair to conclude that. So the most recent blockades were actually -- in fact, Las Bambas don't impact us because they are uphill, so they're in the opposite direction to report from us. It's really blockades more down towards how that impact us. But in the recent blockade, which was not aimed at them, it was actually aimed at the government, but it was downhill from us. There was no impact on us. The only impact was that we build up concentrate for a little bit of time and when matter is resolved and off it goes down the hill. What we have done though is, we recently helped to establish co-op trucking enterprise with the local communities, whereby the community has now truck some 30% of our concentrate to the port. And that's just very helpful in navigating things. So overall, we had no impact.

勞森，這樣下結論是公平的。所以最近的封鎖實際上是 - 事實上，Las Bambas 不會影響我們，因為它們在上坡，所以它們與我們的報告方向相反。這真的阻礙了這對我們的影響。但是最近的封鎖，不是針對他們的，實際上是針對政府的，但是對我們來說是下坡路。對我們沒有影響。唯一的影響是我們集中了一點時間，當問題解決了，事情就開始走下坡路了。不過，我們所做的是，我們最近幫助與當地社區建立了合作卡車運輸企業，社區現在已將我們約 30% 的精礦運往港口。這對導航非常有幫助。所以總的來說，我們沒有影響。

Our next question comes from Ralph Profiti of Eight Capital.

我們的下一個問題來自 Eight Capital 的 Ralph Profiti。

Peter and Eugene, maybe if I can ask a question just on how I should be thinking about this $500 million non-recourse project level debt. Would -- is it easy to consider that this could be sort of the maximum level that banks were willing to sort of put up in your initial discussions? Or is that more sort of a voluntary threshold in terms of Hudbay's comfort level?

彼得和尤金，也許我可以問一個問題，我應該如何考慮這筆 5 億美元的無追索權項目級債務。會 - 是否容易認為這可能是銀行願意在您最初的討論中提出的最高水平？或者，就 Hudbay 的舒適度而言，這更像是一個自願的門檻？

Ralph, it's actually Hudbay's comfort level. And so, what I would envision is that the project level debt be the last piece of financing and be sort of allow us to overfund the potential build of it. And we want to kind of build this project in the most prudent financial structure, given what we've seen with CapEx builds recently. And so, we don't want to layer on too much debt, particularly at the front. So it would be kind of the last piece of financing. We think that approximately 25% debt financing would be a very prudent structure for us. There is more than $500 million available to us, we're choosing to limit it to $500 million of non-recourse project level debt.

拉爾夫，這實際上是 Hudbay 的舒適度。因此，我設想的是項目級別的債務是最後一筆融資，並且可以讓我們為它的潛在建設提供超額資金。考慮到我們最近在資本支出建設中看到的情況，我們希望以最審慎的財務結構來建設這個項目。因此，我們不想背負太多債務，尤其是在前線。所以這將是最後一筆融資。我們認為大約 25% 的債務融資對我們來說是一個非常謹慎的結構。我們有超過 5 億美元的可用資金，我們選擇將其限制為 5 億美元的無追索權項目級債務。

This concludes the question-and-answer session. I would like to turn the conference back over to Candace Brule for any closing remarks.

問答環節到此結束。我想將會議轉回 Candace Brule 的閉幕詞。

Thank you, operator, and thank you, everyone, for joining today. If you have any further questions, please feel free to reach out to the Investor Relations team. You may now disconnect your lines.

謝謝接線員，也謝謝大家今天的加入。如果您有任何其他問題，請隨時聯繫投資者關係團隊。您現在可以斷開線路。