Hudbay Minerals Inc (HBM) 2024 Q1 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Hudbay Minerals first-quarter 2024 results conference call. (Operator Instructions) As a reminder, this conference call is being broadcast live on the webcast and is being recorded today, May 14, at 11:00 AM Eastern Time.

早安，女士們，先生們。謝謝你的支持。歡迎參加 Hudbay Minerals 2024 年第一季業績電話會議。 （操作員說明）謹此提醒，本次電話會議正在網路直播中進行現場直播，並於東部時間今天 5 月 14 日上午 11:00 進行錄製。

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

我現在將會議交給投資者關係副總裁 Candace Brule 女士主持。謝謝。請繼續。

Thank you, operator. Good morning, and welcome to Hudbay's 2024 first-quarter results conference call.

謝謝你，接線生。早上好，歡迎參加 Hudbay 2024 年第一季業績電話會議。

Hudbay's financial results were issued this morning and are available on our website at www.hudbay.com. A corresponding PowerPoint presentation is available on the Investor Events section of our website, and we encourage you to refer to it during this call.

Hudbay 的財務表現於今天上午發布，可在我們的網站 www.hudbay.com 上查看。我們網站的投資者活動部分提供了相應的 PowerPoint 演示文稿，我們鼓勵您在本次電話會議期間參考它。

Our presenter today is Peter Kukielski, Hudbay's President and Chief Executive Officer. Accompanying Peter for the Q&A portion of the call will be Eugene Lei, our Chief Financial Officer; and Andre Lauzon, our Chief Operating Officer.

今天我們的主講人是 Hudbay 總裁兼執行長 Peter Kukielski。陪同 Peter 參加電話問答部分的是我們的財務長 Eugene Lei；以及我們的營運長 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. As a reminder, all amounts discussed on today's call are in US dollars unless otherwise noted.

請注意，對今天電話會議的評論可能包含前瞻性信息，而這些信息本質上會受到風險和不確定性的影響，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，請查閱該公司在 SEDAR+ 和 EDGAR 上的相關文件。這些文件也可以在我們的網站上找到。提醒一下，除非另有說明，今天電話會議中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.

現在，我將把電話轉給 Peter Kukielski。

Thank you, Candace. Good morning, everyone, and thanks very much for joining us.

謝謝你，坎迪斯。大家早安，非常感謝您加入我們。

In the first quarter, we delivered another consecutive quarter of strong operational and financial performance with steady free cash flow generation and continued debt reduction. This was largely a result of our unique copper and gold production diversification that provides meaningful exposure to higher copper and gold prices and attractive free cash flow generation. I'll go into more detail on our first-quarter operating and financial achievements throughout today's presentation, along with providing an update on many of the exciting growth initiatives underway to further enhance our copper and gold exposure.

第一季度，我們連續一個季度實現了強勁的營運和財務業績，自由現金流穩定生成，債務持續減少。這在很大程度上是由於我們獨特的銅和金生產多元化的結果，這種多元化為銅和金價格的上漲提供了有意義的敞口，並產生了有吸引力的自由現金流。在今天的演講中，我將更詳細地介紹我們第一季的營運和財務成就，並提供正在進行的許多令人興奮的增長計劃的最新信息，以進一步增強我們的銅和黃金敞口。

Slide 3 summarizes the strong financial performance that we delivered in the first quarter. Consolidated copper production was 35,000 tons, and consolidated gold production was 90,000 ounces in the first quarter. First-quarter production demonstrated the strength of our diversified operating base with benefits from the continued mining of high copper and gold grades at the Pampacancha deposit in Peru, continued high gold grades at Lalor, and strong performance from the New Britannia mill in Manitoba, as well as the operational stabilization efforts at the Copper Mountain mine in British Columbia. We are well on track to achieve the production guidance metrics for all metals.

投影片 3 總結了我們在第一季實現的強勁財務表現。第一季綜合銅產量為35,000噸，綜合黃金產量為90,000盎司。第一季的產量證明了我們多元化經營基礎的實力，受益於秘魯 Pampacancha 礦床的高銅和金品位的持續開採、Lalor 的持續高金品位以及曼尼托巴省 New Britannia 工廠的強勁表現，以及不列顛哥倫比亞省銅山礦場的運作穩定工作。我們正在順利實現所有金屬的生產指導。

Consolidated cash costs were a remarkable $0.16 per pound of copper for the second quarter in a row. This was primarily the result of continued high byproduct credits, partially offset by higher mining costs and lower copper production. Consolidated sustaining cash costs were equally impressive and decreased to $1.03 per pound in the quarter. Given this strong cost performance, we have affirmed our full-year 2024 consolidated cost guidance, and we are pleased to see continued cost efficiencies being realized throughout the business which is a testament to the outstanding team we have at Hudbay.

連續第二季每磅銅的綜合現金成本高達 0.16 美元。這主要是副產品信貸持續高企的結果，但部分被採礦成本上升和銅產量下降所抵消。綜合維持現金成本同樣令人印象深刻，本季下降至每磅 1.03 美元。鑑於這種強勁的成本績效，我們確認了 2024 年全年綜合成本指導，我們很高興看到整個業務持續實現成本效率，這證明了我們 Hudbay 擁有出色的團隊。

Revenue in the quarter was $525 million, driven by gold production and sales volumes that exceeded our expectations. This, together with impressive cost performance, led to adjusted EBITDA of $214 million and adjusted net earnings of $0.16 per share.

由於黃金產量和銷售量超出了我們的預期，該季度的營收為 5.25 億美元。再加上令人印象深刻的性價比，調整後的 EBITDA 達到 2.14 億美元，調整後的每股淨利為 0.16 美元。

Operating cash flow before change in non-cash working capital of $148 billion also exceeded expectations. After deducting sustaining capital expenditures and cash lease and community payments, we generated $87 million in free cash flow this quarter. This continues our quarterly trend of generating positive free cash flow, and over the last 12 months, we have generated more than $350 million in free cash flow.

非現金營運資本變動前的營運現金流量也達到 1,480 億美元，超乎預期。扣除持續資本支出以及現金租賃和社區付款後，我們本季產生了 8,700 萬美元的自由現金流。這延續了我們每季產生正自由現金流的趨勢，在過去 12 個月中，我們產生了超過 3.5 億美元的自由現金流。

Our strong free cash flow generation enabled us to make additional progress against our deleveraging targets by completing a $10 million repayment on our revolving credit facilities and reducing net debt by $44 million during the quarter.

我們強大的自由現金流產生使我們能夠在本季度完成 1000 萬美元循環信貸額度的償還並減少 4400 萬美元的淨債務，從而在實現去槓桿化目標方面取得更多進展。

As at March 31, our total liquidity increased to $619 million, including $284 million in cash, as well as undrawn availability of $335 million on our revolving credit facilities. The decline in net debt, together with the strong EBITDA generation, has improved our net debt to EBITDA ratio to 1.3 times, compared to 1.6 times at the end of 2023, and we are well on track to achieve our 3-P plan leverage target of 1.2 times.

截至 3 月 31 日，我們的流動資金總額增至 6.19 億美元，其中包括 2.84 億美元現金，以及未提取的循環信貸額度 3.35 億美元。淨債務的下降，加上強勁的 EBITDA 生成，使我們的淨債務與 EBITDA 比率提高至 1.3 倍，而 2023 年底為 1.6 倍，我們有望實現 3-P 計劃槓桿目標的1.2倍。

Moving to slide 4, our Peru operations produced 25,000 tons of copper, 29,000 ounces of gold, 640,000 ounces of silver, and approximately 400 tons of molybdenum in the quarter. While high-grade copper and gold ore continued to be mined from Pampacancha in the quarter, the mill processed less Pampacancha ore than in the fourth quarter of 2023. This was in line with the mine plan and the typical ore feed blend of approximately one-third from Pampacancha and two-thirds from Constancia. As a result, we are on track to achieve our 2024 production guidance for all metals in Peru.

轉向幻燈片 4，我們的秘魯工廠本季生產了 25,000 噸銅、29,000 盎司黃金、640,000 盎司白銀和約 400 噸鉬。雖然本季繼續從 Pampacancha 開採高品位銅礦石和金礦石，但該工廠加工的 Pampacancha 礦石數量比 2023 年第四季度要少。分之二來自康斯坦西亞。因此，我們有望實現秘魯所有金屬 2024 年的生產指導目標。

Total ore mined in the first quarter decreased by 27% compared to the prior quarter, in line with the mine plan, which included supplemental ore feed from stockpiles during the quarter as the operations advanced pit stripping activities. The Constancia mill performed well during the quarter, with throughput averaging 89,000 tons per day. Ore milled was 2% higher than the fourth quarter of 2023 mainly due to the treatment of soft ore from stockpiles. Recoveries continued to be strong and in line with our metallurgical models, with 84.9% copper recovery and 73.4% gold recovery. The operations benefited from strong cost performance, achieving lower cash costs and sustaining cash costs compared to the fourth quarter.

第一季開採的礦石總量比上一季減少了 27%，符合採礦計劃，其中包括在本季度因作業推進礦井剝離活動而從庫存中補充礦石原料。 Constancia 工廠本季表現良好，平均日產量為 89,000 噸。礦石磨碎量較 2023 年第四季成長 2%，主要是由於對庫存軟礦石的處理。回收率持續強勁，符合我們的冶金模型，銅回收率為 84.9%，金回收率為 73.4%。該業務受益於強勁的成本績效，與第四季度相比，實現了較低的現金成本並維持了現金成本。

Peru's cash costs were at a record low of $0.43, a 20% improvement over the favorable levels achieved in the fourth quarter, and benefited from higher gold byproduct credits and lower operating costs. Sustaining cash costs were $1.06, or 12% lower than the fourth quarter, primarily due to the same factors. We are positioned well to achieve our 2024 cash cost guidance in Peru.

秘魯的現金成本創歷史新低，為 0.43 美元，比第四季度實現的有利水平提高了 20%，這得益於較高的黃金副產品信貸和較低的營運成本。維持現金成本為 1.06 美元，比第四季低 12%，這主要是由於相同的因素。我們處於有利地位，能夠在秘魯實現 2024 年現金成本指引。

Our Manitoba business also saw another quarter of strong operating performance as summarized on slide 5. First-quarter production included 57,000 ounces of gold, 3,100 tons of copper, 8,800 tons of zinc, and 220,000 ounces of silver. Production of gold in the first quarter was better than expected as a result of many operational improvement initiatives and record performance from the New Britannia mill. We are well on track to achieve our 2024 production guidance for all metals in Manitoba.

正如幻燈片 5 所總結的那樣，我們的馬尼托巴業務又一個季度表現強勁。由於許多營運改善措施和新不列顛工廠創紀錄的業績，第一季的黃金產量優於預期。我們正在順利實現馬尼托巴省所有金屬的 2024 年生產指導方針。

The strong gold production was partly attributed to the successful implementation of improvement initiatives at Lalor that were completed in 2023 and early 2024, including higher shaft availability, efficient ore hoisting, stoke fragmentation reduction, and mucking productivity enhancements. The New Britannia mill achieved record quarterly throughput of 1,870 tons per day in the first quarter due to ongoing improvement initiatives and effective preventative maintenance measures. The New Britannia mill recoveries of gold and copper were 89% and 96%, respectively, in the quarter.

黃金產量強勁的部分原因是拉勒金礦成功實施了 2023 年和 2024 年初完成的改進舉措，包括提高豎井可用性、高效礦石提升、減少斯托碎塊和提高出渣生產率。由於持續的改進措施和有效的預防性維護措施，新不列顛工廠第一季的季度吞吐量達到創紀錄的 1,870 噸/天。新不列顛尼亞工廠本季黃金和銅的回收率分別為 89% 和 96%。

During the first quarter, we received a permit approval from the Environment and Climate Change Manitoba to increase the New Britannia mill production rate to 2,500 tons per day. This approval aligns well with our long-term objective to further increase gold production at the Snow Lake operations by directing more gold ore from Lalor to the New Britannia mill to achieve higher gold recoveries.

第一季度，我們獲得了馬尼托巴省環境和氣候變遷部門的批准，將 New Britannia 工廠的產量提高到每天 2,500 噸。此批准與我們的長期目標非常吻合，即透過將更多金礦石從 Lalor 輸送至 New Britannia 工廠，以實現更高的黃金回收率，從而進一步增加 Snow Lake 業務的黃金產量。

The Stall mill processed 4% less ore in the first quarter than the prior quarter, aligned with our strategy of allocating more Lalor ore feed to New Britannia. With the Stall mill recovery improvement project completed last year, we saw consistent strong recoveries of gold, copper, and silver in the first quarter and achieved our targeted gold recovery levels of 68%.

Stall 工廠第一季處理的礦石比上一季減少了 4%，這符合我們向新不列顛尼亞分配更多 Lalor 礦石原料的策略。隨著去年攤位工廠回收改善項目的完成，我們在第一季看到金、銅和白銀的持續強勁回收，並實現了 68% 的黃金回收率目標。

Manitoba's gold cash cost was $736 per ounce, which is well positioned at the lower end of our 2024 cash cost guidance range. Gold sustaining cash costs were $950 per ounce in the quarter.

馬尼托巴省的黃金現金成本為每盎司 736 美元，處於我們 2024 年現金成本指導範圍的下限。本季黃金維持現金成本為每盎司 950 美元。

Now, moving to slide 6, we continue to focus on advancing our operational stabilization plans at our British Columbia business unit. In the first quarter, Copper Mountain produced 7,000 tons of copper, 4,400 ounces of gold, and 88,000 ounces of silver. Production of copper and silver was lower than the prior quarter, while gold production was higher as a result of higher gold grades and overall higher recoveries. We are on track to achieve 2024 production guidance for all metals in British Columbia.

現在，轉到投影片 6，我們繼續專注於推進不列顛哥倫比亞省業務部門的營運穩定計畫。第一季度，銅山生產了7,000噸銅、4,400盎司黃金和88,000盎司白銀。銅和銀的產量低於上一季，而由於黃金品位較高和整體回收率較高，黃金產量較高。我們預計將實現不列顛哥倫比亞省所有金屬 2024 年的生產指引。

Total ore mined in the first quarter was 3.7 million tons, which increased 42% from the fourth quarter, in line with our fleet production ramp-up plan. The mill processed a total of 3.2 million tons of ore during the quarter, with mill availability averaging 90.4% while maintaining a stable throughput rate. Mill throughput was impacted by reduced reliability of the crushing circuit, which was caused primarily by elevated levels of magnetite and scrap metal as the mining progresses through areas of historical underground workings.

第一季開採的礦石總量為 370 萬噸，較第四季成長 42%，符合我們的船隊產量提升計畫。該廠本季共加工礦石 320 萬噸，工廠利用率平均為 90.4%，同時維持穩定的吞吐量。破碎迴路的可靠性降低影響了工廠的產量，這主要是由於採礦過程中穿過歷史地下作業區域時磁鐵礦和廢金屬含量升高造成的。

First-quarter milled copper grades averaged 0.27%, which was lower than the fourth quarter of 2023 but higher than the reserve grade of 0.25%. Copper recoveries of 83.4% were higher than the prior quarter and higher than expected due to relieving the regrind circuit constraint and implementing the flotation operational strategy improvements, including reagent selection and dose modification.

第一季磨碎銅平均品位為 0.27%，低於 2023 年第四季度，但高於儲備品位 0.25%。由於緩解了回收迴路限制並實施了浮選操作策略改進（包括試劑選擇和劑量修改），銅回收率為 83.4%，高於上一季並高於預期。

Cash costs were $3.49, above the upper end of 2024 guidance range, but we expect these to decline during the remainder of the year as we continue to implement the stabilization initiatives. We have affirmed our full-year cash cost guidance range for BC.

現金成本為 3.49 美元，高於 2024 年指導範圍的上限，但我們預計隨著我們繼續實施穩定舉措，這些成本將在今年剩餘時間內下降。我們已經確認了 BC 省的全年現金成本指導範圍。

Slide 7 highlights the improvements we have seen at Copper Mountain through the early stages of our stabilization initiatives. Since the acquisition in June of last year, we have achieved and exceeded the targeted $10 million in annualized corporate synergies, and we are on track to realize the three-year annual operating efficiencies target. On the mining side, we have remobilized idle haul trucks and accelerated the purchase of five new haul trucks to increase mining activities and improve flexibility in the mine with additional mining phases.

投影片 7 重點介紹了我們在穩定措施的早期階段在銅山看到的改進。自去年 6 月收購以來，我們已經實現並超過了年度企業協同效應 1000 萬美元的目標，並且有望實現三年年度營運效率目標。在採礦方面，我們重新調動了閒置的運輸卡車，並加速購買了五輛新的運輸卡車，以增加採礦活動，並透過增加採礦階段來提高礦場的靈活性。

To open up the mine, we have begun a campaign of accelerated stripping over the next three years to enable access to higher-grade ore and to mitigate the reduced stripping undertaken by Copper Mountain over the four years prior to our acquisition. As a result of the remobilization initiatives, total material moved will continue to increase quarter over quarter in line with the mine plan. We continue to hire and train additional haul truck drivers and expect to have a fully trained complement of truck drivers this summer to support the expanded mining fleet, which is expected to increase material moved, improve operating efficiencies, and reduce unit operating costs.

為了開發該礦，我們已開始在未來三年內加速剝採活動，以便獲得更高品位的礦石，並緩解銅山在我們收購之前四年中減少剝離的情況。由於採取了重新動員舉措，運輸的材料總量將根據礦山計劃繼續逐季增加。我們繼續僱用和培訓額外的運輸卡車司機，並預計今年夏天將擁有訓練有素的卡車司機，以支援擴大的採礦車隊，這預計將增加物料運輸，提高營運效率並降低單位營運成本。

Additionally, we are implementing plant improvement initiatives that mirror the successful processes at our other operations, specifically Constancia. We have seen stronger mill performance as demonstrated by higher mill availability and above-target copper recoveries of 83.4% in the first quarter of 2024. The first quarter saw the highest quarterly copper recoveries achieved in the last decade at Copper Mountain.

此外，我們正在實施工廠改進計劃，以反映我們其他業務（特別是康斯坦西亞）的成功流程。我們看到工廠的表現更加強勁，2024 年第一季工廠利用率提高，銅回收率高於目標 83.4%。

Stabilization benefits continue to be realized into April with 83% copper recoveries and approximately 40,000 tons per day average mill throughput, an increase of approximately 9% over the first quarter. We are also accelerating engineering studies to de-bottleneck and increase the nominal plant capacity to 50,000 tons per day earlier than was contemplated in the technical report.

穩定效益持續到 4 月份，銅回收率達到 83%，平均工廠吞吐量約 4 萬噸/日，比第一季成長約 9%。我們也正在加快工程研究，以消除瓶頸，並比技術報告中預期的提前將工廠名義產能提高到每天 5 萬噸。

Maintenance practices to improve mill availability continue to be a key pillar of the stabilization initiatives. The average mill availability during the first quarter increased to 90.4% from 85.1% last quarter, as I mentioned earlier. The maintenance programs completed during the quarter were fully executed according to plan. Additional maintenance practice enhancements are planned for rollout over the second and third quarter to implement the improved maintenance management processes and change the maintenance organizational structure.

提高工廠可用性的維護實踐仍然是穩定措施的關鍵支柱。正如我之前提到的，第一季工廠的平均可用性從上季的 85.1% 增加到 90.4%。本季完成的維護計劃完全按照計劃執行。計劃在第二季和第三季推出更多維護實務增強功能，以實施改進的維護管理流程並改變維護組織結構。

Several mill initiatives to target higher mill throughput were advanced during the quarter, including reprogramming the mill expert system, installation of advanced SAG control instrumentation, redesign of the SAG liner package, and updated operational procedures to remove magnetite from the pebble stream. The mill throughput in April increased to close to 40,000 tons per day as the mill began realizing benefits from the recalibrated expert system. The benefits of the operational stabilization improvements are expected to be realized through the remainder of 2024.

本季度推進了幾項以提高磨機產量為目標的磨機舉措，包括重新編程磨機專家系統、安裝先進的SAG 控制儀表、重新設計SAG 襯套套件以及更新操作程序以從卵石流中去除磁鐵礦。隨著工廠開始意識到重新校準的專家系統帶來的好處，4 月工廠的吞吐量增加到接近 40,000 噸/天。營運穩定性改進的好處預計將在 2024 年剩餘時間內實現。

In March, we released our annual mineral reserve and resource update and provided our updated three-year production outlook, which is shown on slide 8. We expanded the mine life at Constancia by three years to 2041 as a result of the successful conversion of mineral resources to mineral reserves by adding an additional mining phase at the Constancia pit.

3 月份，我們發布了年度礦產儲量和資源更新，並提供了最新的三年生產展望，如幻燈片8 所示。達到2041 年。

Manitoba reserves continue to support a mine life to 2038, with significant extension potential through a conversion of the remaining 1.4 million ounces of gold in inferred resources in Snow Lake. British Columbia reserves support the 21-year mine life disclosed in our technical report released in December of 2023, with additional optionality and upside potential for reserve conversion through 370 million tons of inferred resources.

馬尼托巴省的儲量將繼續支持礦山壽命至 2038 年，透過轉換雪湖推斷資源中剩餘的 140 萬盎司黃金，具有顯著的延長潛力。不列顛哥倫比亞省的儲量支持我們在 2023 年 12 月發布的技術報告中披露的 21 年礦山壽命，並透過 3.7 億噸推斷資源量實現儲量轉換的額外選擇和上行潛力。

Our three-year production outlook highlighted that Constancia operations are expected to produce 101,000 tons of copper and 62,000 ounces of gold over the next three years. British Columbia's annual copper production is expected to average 41,000 tons of copper over the next three years. Manitoba annual gold production guidance continues to average 185,000 ounces over the next three years.

我們的三年產量展望強調，Constancia 業務預計在未來三年內生產 101,000 噸銅和 62,000 盎司黃金。未來三年，不列顛哥倫比亞省的銅年產量預計平均為 41,000 噸。未來三年，曼尼托巴省的年度黃金產量指導值將繼續平均為 185,000 盎司。

Hudbay offers investors meaningful copper exposure, complementary gold exposure, and strong near-term cash flow generation. We are well positioned to benefit from strong copper and gold prices with our low-cost stable operating platform in Tier 1 jurisdictions and our leading copper development and exploration pipeline.

Hudbay 為投資者提供了有意義的銅敞口、互補的黃金敞口以及強勁的短期現金流生成。憑藉我們在一級司法管轄區的低成本穩定營運平台以及領先的銅開發和勘探管道，我們處於有利地位，可以從強勁的銅和金價格中受益。

As shown on slide 9, today, Hudbay produces more than 150,000 tons of copper per year, which is further augmented by our complementary gold exposure that offers cash flow resiliency in volatile pricing environments. For each $0.25 annual change in copper prices, Hudbay will gain an additional $75 million in cash flow and EBITDA. Similarly, for gold, for a $100 per ounce annual increase in price, Hudbay will see $25 million in increased cash flow and EBITDA. Our portfolio also generates the highest increase in net asset value with rising copper prices amongst our peers.

如幻燈片 9 所示，如今，Hudbay 每年生產超過 150,000 噸銅，我們的補充性黃金敞口進一步增強了這一產量，黃金敞口在波動的定價環境中提供了現金流彈性。銅價每年每變動 0.25 美元，Hudbay 將額外獲得 7,500 萬美元的現金流和 EBITDA。同樣，對於黃金來說，每盎司價格每年上漲 100 美元，Hudbay 將看到現金流和 EBITDA 增加 2500 萬美元。隨著銅價的上漲，我們的投資組合在同業也創造了最高的淨值增幅。

Now, turning to slide 10, Copper World is the next promising greenfield copper development project in our growth pipeline. As we progress towards making a sanctioning decision, we will continue to be prudent with our financing plans for Copper World by remaining focused on meeting all of the prerequisites outlined in our 3-P plan that we introduced in late 2022.

現在，轉向幻燈片 10，Copper World 是我們成長管道中下一個有前途的綠地銅開發項目。隨著我們做出製裁決定的進展，我們將繼續謹慎對待 Copper World 的融資計劃，繼續專注於滿足我們於 2022 年底推出的 3-P 計劃中概述的所有先決條件。

Copper World is one of the highest-grade open pit copper projects in the Americas, with proven and probable reserves of 385 million tons at 0.54% copper in Phase 1. There is roughly 60% of the total contained copper remaining in the measured and indicated resources, excluding reserves, which provides significant upside potential for Phase 2 expansion and mine life extension beyond 20 years.

Copper World 是美洲品位最高的露天銅礦項目之一，一期已探明和概算儲量為 3.85 億噸，銅品位為 0.54%。不包括儲量）為第二階段擴建和延長礦山壽命超過20 年提供了巨大的上升潛力。

The Phase 1 PFS released in 2023 showed enhanced project economics, an optimized flow sheet, and a simplified permitting process, with extended mine life to 20 years and an internal rate of return of 19% at a copper price of $3.75 per pound. The first key state permit required for Copper World, the Mined Land Reclamation Plan, was initially approved by the Arizona State Mine Inspector in October 2021 and was subsequently amended to reflect a larger private land project footprint in June 2022.

2023 年發布的第一階段 PFS 顯示了專案經濟性的增強、流程的優化和許可流程的簡化，將礦山壽命延長至 20 年，以每磅 3.75 美元的銅價計算，內部收益率為 19%。 Copper World 所需的第一個關鍵州許可證，即礦區土地復墾計劃，最初於2021 年10 月獲得亞利桑那州礦山監察員批准，隨後於2022 年6 月進行了修改，以反映更大的私人土地項目足跡。

In late 2022, we submitted the applications for an Aquifer Protection Permit and an Air Quality Permit to the Arizona Department of Environmental Quality. We continue to expect to receive these two outstanding permits in 2024. We also received the floodplain use permit approval from Pima County in April 2024.

2022年底，我們向亞利桑那州環境品質部提交了含水層保護許可證和空氣品質許可證的申請。我們繼續預計在 2024 年獲得這兩個未完成的許可證。

We expect to launch the formal joint venture process later this year after we secure our permits and prior to commencing a definitive feasibility study, which would allow the potential joint venture partner to participate in the funding of definitive feasibility study activities, as well as in the final project designed for Copper World. We have seen strong initial interest from potential joint venture partners as many industry participants are focused on increasing copper exposure.

我們預計在今年稍後獲得許可後、開始最終可行性研究之前啟動正式的合資流程，這將允許潛在的合資夥伴參與最終可行性研究活動的融資，以及參與最終可行性研究活動的融資。銅世界設計的最終項目。我們看到潛在合資夥伴最初表現出濃厚的興趣，因為許多行業參與者都專注於增加銅的曝險。

Securing copper supply becomes a growing global concern, as evidenced by BHP's recent bid for Anglo American in an effort to increase their copper exposure. Copper World will be a key contributor to the domestic US supply chain with our intention to produce made-in-America copper cathode by building a concentrate leach processing facility in the fourth year of operations.

確保銅供應已成為全球日益關注的問題，必和必拓最近競購英美資源集團以增加其銅業務就證明了這一點。 Copper World 將成為美國國內供應鏈的關鍵貢獻者，我們計劃在營運第四年建造精礦浸出處理設施，生產美國製造的陰極銅。

Local production of copper cathode would reduce the operation's total energy requirements and lower greenhouse gas and sulfur emissions by eliminating overseas shipping, smelting, and refining activities relating to processing copper concentrate. The project is expected to contribute more than $850 million in US taxes, including $170 million in Arizona state taxes. The mine will also create more than 400 direct jobs and up to 3,000 indirect jobs in Arizona.

陰極銅的本地生產將消除與加工銅精礦相關的海外運輸、冶煉和精煉活動，從而減少營運的總能源需求，並降低溫室氣體和硫排放。該項目預計將貢獻超過8.5億美元的美國稅收，其中包括1.7億美元的亞利桑那州稅收。該礦還將為亞利桑那州創造 400 多個直接就業機會和多達 3,000 個間接就業機會。

Copper World is an attractive copper growth project for Hudbay and our stakeholders, which will generate strong project returns and bring many benefits to the community and local economy in Arizona.

Copper World 對 Hudbay 和我們的利害關係人來說是一個有吸引力的銅成長項目，它將產生豐厚的項目回報，並為亞利桑那州的社區和當地經濟帶來許多好處。

We are also encouraged by the progress that the United States Mining Regulatory Clarity Act of 2024 is making through legislative approvals as the government recognizes the importance of supporting the domestic critical mineral supply chain. Consequently, this bill aims to clarify the use of federal lands for mining critical minerals and also effectively overturns the prior Rosemont decision.

隨著政府意識到支持國內關鍵礦產供應鏈的重要性，《2024 年美國礦業監管澄清法案》通過立法批准所取得的進展也令我們感到鼓舞。因此，該法案旨在澄清聯邦土地用於開採關鍵礦物的用途，並有效推翻羅斯蒙特先前的決定。

While it doesn't change our path forward on Phase 1 of our Copper World plan, if passed by the Senate, the bill would be a positive development for the second phase of Copper World when we expand onto federal lands and significantly increase the annual production and mine life at Copper World. It would also simplify this future permitting process for our Mason copper project in Nevada.

雖然它不會改變我們銅世界計劃第一階段的前進道路，但如果參議院通過，當我們擴展到聯邦土地並大幅增加年產量時，該法案將是銅世界第二階段的積極發展以及銅世界的礦山生活。它還將簡化我們內華達州梅森銅礦計畫未來的許可流程。

Turning to slide 11, in Peru, our exploration activities surrounding the Maria Reyna and Caballito properties near Constancia continue to focus on permitting and drill preparation. We commenced early exploration activities after completing a surface rights exploration agreement with the community of Uchucarco in August 2022. As part of the drill permitting process, environmental impact assessment applications were submitted for the Maria Reyna property in November 2023 and for the Caballito property in April 2024.

轉向幻燈片 11，在秘魯，我們圍繞康斯坦西亞附近的 Maria Reyna 和 Caballito 礦區的勘探活動繼續專注於許可和鑽探準備。 2022 年8 月與Uchucarco 社區完成地表權勘探協議後，我們開始了早期勘探活動。了Caballito 礦區的環境影響評估申請。

And in Manitoba, we initiated the largest exploration program in the company's history in Snow Lake as highlighted on slide 12. Much of the newly acquired land from the Cook Lake and Rockcliff transactions last year has been untested by modern deep geophysics.

在馬尼托巴省，我們在Snow Lake 啟動了公司歷史上最大的勘探計劃，如幻燈片12 所示。學的測試。

During the first quarter, a surface geophysical survey was conducted over a portion of our Cook Lake tenements using cutting-edge techniques that enabled the team to detect targets at depths of almost 1,000 meters below surface. The multi-phase 2024 drilling program with up to eight drill rigs during the winter focused on testing potential for deep extensions of the gold and copper gold zones at Lalor and will continue throughout the year testing other targets identified from current and past geophysical surveys.

第一季度，我們使用尖端技術對庫克湖礦權的一部分進行了表面地球物理調查，使團隊能夠探測到地表以下近 1,000 公尺深度的目標。 2024 年冬季多階段鑽探計畫將配備多達 8 台鑽機，重點測試拉勒金礦和銅金礦區深層延伸的潛力，並將在全年繼續測試當前和過去地球物理調查確定的其他目標。

The goal of the 2024 exploration program is to test mineralized extensions of the Lalor deposit and to find a new anchor deposit within tracking distance of the Snow Lake processing infrastructure, which has the potential to extend the life of the Snow Lake operations beyond 2038.

2024 年勘探計畫的目標是測試 Lalor 礦床的礦化延伸，並在 Snow Lake 處理基礎設施的追蹤距離內找到新的錨定礦床，這有可能將 Snow Lake 作業的壽命延長到 2038 年以後。

Additionally, we are advancing an access drift at the nearby 1901 deposit to enable infill drilling aimed at converting the inferred mineral resources in the gold lenses to mineral reserves. In the first quarter, we commenced the development of the smaller profile drift from the existing Lalor ramp. The 1901 development and exploration drift is proceeding on schedule and on budget and is expected to reach the mineralization in late 2024. Definition drilling is planned for 2025 to further confirm the optimal mining method, evaluate the ore body geometry and continuity, and convert gold inferred resources to reserves.

此外，我們正在附近 1901 礦床推進通巷，以便進行加密鑽探，旨在將金透鏡體中的推斷礦產資源轉化為礦產儲量。在第一季度，我們開始在現有的拉勒坡道上開發較小型的巷道。 1901開發和勘探漂移正在按計劃和按預算進行，預計將於2024年底實現礦化。推斷值轉換為金礦值。

Additionally, in March 2024, Hudbay signed a five-year option agreement with Marubeni focused on three exploration projects within tracking distance of Flin Flon. The agreement grants Marubeni an option to acquire a 20% interest in the projects following the completion of funding CAD12 million in exploration activities over a period of five years. All three properties host past producing mines with attractive copper and gold grades and remain highly prospective for further mineral discoveries.

此外，2024 年 3 月，Hudbay 與 Marubeni 簽署了一份為期五年的選擇權協議，重點關注 Flin Flon 追蹤範圍內的三個勘探項目。該協議授予丸紅在五年內完成為勘探活動提供 1,200 萬加元資金後收購這些項目 20% 權益的選擇權。所有這三個礦區都擁有過去生產的銅礦和金礦，具有有吸引力的銅和金品位，並且仍然具有進一步發現礦產的良好前景。

Concluding on slide 13, we believe that copper has the best long-term supply and demand fundamentals in the sector, as global copper mine supply will be unable to meet demand from global decarbonization initiatives and growing demand from the use in AI data centers. Hudbay is uniquely positioned to benefit from the strong outlook for copper, with a steady copper production profile of over 150,000 tons per year through to the end of the decade. Hudbay's resilient operating platform offers leading exposure to copper and unique complementary exposure to gold which, together with our quality pipeline of growth assets, provide significant upside potential for further value creation at higher copper and gold prices.

在投影片13 中得出的結論是，我們認為銅具有該行業中最好的長期供需基本面，因為全球銅礦供應將無法滿足全球脫碳倡議的需求以及人工智慧數據中心使用不斷增長的需求。 Hudbay 處於獨特的地位，可以從銅的強勁前景中受益，到本十年末，銅產量穩定在每年 15 萬噸以上。 Hudbay 的彈性營運平台提供領先的銅風險敞口和獨特的黃金互補風險敞口，再加上我們優質的成長資產管道，為在銅和金價格上漲的情況下進一步創造價值提供了巨大的上行潛力。

And with that, we are pleased to take your questions.

因此，我們很高興回答您的問題。

(Operator Instructions) Jackie Przybylowski, BMO.

（操作員說明）Jackie Przybylowski，BMO。

Hi. Good morning. Thanks for taking my question, and congratulations on a really tremendous quarter; it was really great to see. My question is just on Peru. You mentioned in the MD&A that the Peruvian government is considering expanding, or an option, I guess, to expand permits including potentially, I guess, at Constancia. Can you tell me is that something that, practically, if you were able to extend your permit by 10% or so, is that something that would be within the mill's capacity to achieve that higher throughput, or what would you guys need to do to get there? Thanks.

你好。早安.感謝您提出我的問題，並祝賀您度過了一個非常出色的季度；真是太棒了。我的問題只是關於秘魯。您在 MD&A 中提到，秘魯政府正在考慮擴大許可範圍，或擴大許可範圍的選項，我想可能包括在康斯坦西亞。您能否告訴我，實際上，如果您能夠將許可證延長 10% 左右，工廠就有能力實現更高的吞吐量，或者您需要做什麼才能實現到達那裡？謝謝。

Thanks very much, Jackie. So the way that I would characterize it is there's a potential that this could increase future copper production at Constancia after the Pampacancha deposit is depleted in 2025 by achieving further economies of scale to offset lower grades. But I think what you got to remember is the regulation is currently a proposal, and we'll continue to monitor its progress and the potential impacts on Constancia.

非常感謝，傑基。因此，我的描述是，在 Pampacancha 礦床於 2025 年枯竭後，透過實現進一步的規模經濟來抵消品位較低的影響，這有可能增加康斯坦西亞未來的銅產量。但我認為你必須記住的是，該法規目前只是一項提案，我們將繼續監控其進展以及對康斯坦西亞的潛在影響。

Now, that said, the team and I were in Peru a couple of weeks ago, and we met with the Minister of Energy and Mines, the Minister of Economy and Finance, the first Minister et cetera, and they intimated that the proposal is in highly advanced stages and is likely to be implemented very soon. That remains anecdotal, and specifically, what it will allow us to do is uncertain at this point. But we certainly would be looking at options to actually increase production by supplementing the process facilities that we have in place if needed.

也就是說，我和團隊幾週前在秘魯，我們會見了能源和礦業部長、經濟和財政部長、首席部長等，他們暗示該提案正在製定中。 。這仍然是傳聞，具體來說，目前還不確定它能讓我們做什麼。但如果需要的話，我們當然會考慮透過補充我們現有的製程設施來實際增加產量。

Andre, anything you want to add?

安德烈，你還有什麼要補充的嗎？

Sure. So that covers, I guess, what I'd say the permitting process and what they're looking at. And so in simple terms, what they're proposing is to increase copper production in Peru is authorizing within your existing permit permitted facilities opportunities for process improvement, so existing crushers and infrastructure that you currently have.

當然。我想這涵蓋了我所說的許可流程以及他們正在考慮的內容。簡而言之，他們的建議是增加秘魯的銅產量，在您現有的許可證允許的設施內授權流程改進的機會，因此您目前擁有的現有破碎機和基礎設施。

And so what we do have, which is a benefit for us, is we do have permitted pebble crushers that haven't been implemented, and the reason why we haven't implemented in the past is because we're throttled on the throughput capacity. So the teams are looking actively at what are the levers, if you will, around what we can do within that framework to take advantage of that 10% reduction. It's still early days yet, but we are running on days up to 94,000 tons per day. And so they're making continuous improvements in the process, and so we're quite optimistic that, if this happens, that'll be an upside for us.

因此，我們確實擁有，這對我們來說是一個好處，我們確實允許使用尚未實施的卵石破碎機，而我們過去沒有實施的原因是因為我們的吞吐量受到限制。因此，如果您願意的話，團隊正在積極研究我們可以在該框架內採取哪些措施來利用這 10% 的減少。雖然現在還處於早期階段，但我們的日產量已達 94,000 噸。所以他們在這個過程中不斷改進，所以我們非常樂觀，如果這種情況發生，這對我們來說將是一個好處。

Thanks very much, Andre and Peter. And maybe just as a follow-up question, I attended the presentation by the Peruvian minister at PDAC in March, and there was some talk there about streamlining permitting in general. I know your exploration projects in Peru have been very thoroughly going through the permitting process. Do you have any color or any optimism on whether streamlining of the permitting process for your exploration projects might be kind of forthcoming as well?

非常感謝安德烈和彼得。也許只是作為一個後續問題，我三月參加了秘魯部長在 PDAC 上的演講，那裡有一些關於簡化總體許可的討論。我知道你們在秘魯的勘探計畫已經非常徹底地通過了許可程序。對於您的勘探專案的許可流程是否也即將簡化，您有什麼看法或樂觀嗎？

I think, Jackie -- so yes, I'm optimistic that that is the case. All of the ministers with whom we met in Peru were keen to confirm that they're working hard to do that. That said, it remains to be seen what the bureaucracy can actually achieve.

我想，傑基 - 所以是的，我很樂觀地認為情況確實如此。我們在秘魯會見的所有部長都熱衷於證實他們正在努力做到這一點。也就是說，官僚機構實際上能取得什麼成果還有待觀察。

So the key elements really are the middle of the EIA, and after that, there are a couple of other permits that need to be granted like archaeological permits and water use permits. But the primary permit required subsequent to EIA approval is Consulta Previa, and Consulta Previa kind of dwarfs the others.

因此，關鍵要素確實是環境影響評估的中間部分，之後，還需要授予其他一些許可證，例如考古許可證和用水許可證。但 EIA 批准後所需的主要授權是 Consulta Previa，而 Consulta Previa 則使其他授權相形見絀。

So we suspect that we'll be able to conduct the things like archaeological permit and the water use permit in parallel, potentially, with Consulta Previa. But the total duration we estimate right now is 12 to 18 months. We're hopeful that the 18 gets reduced to 12 or so.

因此，我們懷疑我們將能夠與Consulta Previa同時進行考古許可和用水許可等工作。但我們目前估計總持續時間為 12 至 18 個月。我們希望 18 個能夠減少到 12 個左右。

That's great. Thank you very much for taking my questions, and congrats again.

那太棒了。非常感謝您回答我的問題，再次恭喜您。

And your next question comes from the line of Orest Wowkodaw.

你的下一個問題來自 Orest Wowkodaw。

Hi. Good morning. It's nice to see the free cash flow generation continue here in the quarter. My question has to do with costs. We saw very low cost per ton in Peru this quarter of just below $11 a ton. I mean, that's probably the lowest number we've seen in quite some time. Is that sustainable, and can you talk about some of the drivers there? And then conversely, the cost per ton in Manitoba, CAD2.35, were among the highest we've seen in quite some time. Just wondering if we should -- or can we anticipate cost to ease there for the rest of the year? Thanks.

你好。早安.很高興看到本季繼續產生自由現金流。我的問題與成本有關。本季秘魯每噸成本非常低，略低於每噸 11 美元。我的意思是，這可能是我們相當長一段時間以來看到的最低數字。這是可持續的嗎？相反，曼尼托巴省的每噸成本為 2.35 加元，是我們相當長一段時間以來見過的最高成本之一。只是想知道我們是否應該——或者我們是否可以預期在今年剩餘時間內放鬆成本？謝謝。

Sure, I'll take it Orest. I'll start with the cost in Peru. The team has done an excellent job on cost conservation and looking for opportunities to reduce. The forecast to the end of the year is pretty much in line with what you're seeing and within our budget ranges, maybe even towards the lower end like you're seeing this quarter. So there's nothing unusual about this quarter. It's just good operating practice, good cost control, and they did overcome challenges with flooding and water and that -- while they did that. So we're really proud of the efforts of the team there.

當然，我會接受奧雷斯特。我先從秘魯的費用開始。團隊在節省成本和尋找降低成本的機會方面做得非常出色。今年年底的預測與您所看到的情況基本一致，並且在我們的預算範圍內，甚至可能接近您本季度看到的較低水平。所以這個季度沒有什麼異常的。這只是良好的操作實踐，良好的成本控制，他們確實克服了洪水和水的挑戰 - 當他們這樣做的時候。因此，我們對團隊的努力感到非常自豪。

In terms of Manitoba -- so the Manitoba, if you look at it at face value, there's some increases at Stall and, overall, a little bit in the mine, but it's part of the strategy. And so what we trialed in the quarter was, with increased opportunity to put more ore through, our productivity improvements are really taking hold. We've trialed putting some higher base metal feed, if you will, from Stall that would normally go through Stall through New Britannia at better recoveries, and we were successful at that.

就曼尼托巴而言——所以曼尼托巴，如果你從表面上看，失速有一些增加，總體而言，礦井有一點增加，但這是策略的一部分。因此，我們在本季的嘗試是，隨著投入更多礦石的機會增加，我們的生產力確實提高了。如果你願意的話，我們已經嘗試從失速中投入一些較高的賤金屬進料，這些進料通常會通過失速穿過新不列顛尼亞以更好的回收率，我們在這方面取得了成功。

So we're putting stuff from the lower cost mill or ore feeds through the higher cost mill, but we're generating a lot more cash by producing more gold ounces. So at face value, the costs look a little bit higher than what they were, but it's all part of the strategy to make more cash, and so you saw the results in the gold for the quarter.

因此，我們將來自成本較低的工廠的原料或礦石原料放入成本較高的工廠，但我們透過生產更多的金盎司來產生更多的現金。因此，從表面上看，成本看起來比實際情況要高一些，但這都是賺取更多現金策略的一部分，因此您看到了本季黃金的結果。

Okay. Just to clarify, so in Peru, we should then -- I think what I'm hearing you say is we should expect cost per ton to increase for the rest of the year in order to get closer to your guidance range.

好的。只是為了澄清，所以在秘魯，我們應該 - 我想我聽到你說的是我們應該預計今年剩餘時間每噸成本會增加，以便更接近你的指導範圍。

It'll be within the bottom to mid-range of the guidance, yes.

是的，它將位於指導的底部到中間範圍內。

Okay. Thank you.

好的。謝謝。

Ralph Profiti, Eight Capital.

拉爾夫·普羅菲蒂，八資本。

Thanks, operator. Good morning, everyone. Peter, do you have a handle on the issue related to these elevated magnetite levels at Copper Mountain? It seems to be impacting the front end of the plant, as opposed to the back end of the plant, when we look at the success you've seen on copper recoveries. Just wondering what's the mitigation plan look like and just trying to get a sense of how important this issue is.

謝謝，接線生。大家，早安。彼得，您知道與銅山磁鐵礦含量升高相關的問題嗎？當我們看到您在銅回收方面所取得的成功時，它似乎正在影響工廠的前端，而不是工廠的後端。只是想知道緩解計劃是什麼樣的，並試圖了解這個問題的重要性。

Sure. I'll take that one as well. It's Andre. So I was up at site last week, and I actually saw the site. So what the challenge is, is the pebble crusher -- as the pebbles get rejected from the SAG mill, there's a magnet on there to identify tramp or balls of metal that came out of the SAG mill. And when you put high magnetite through, the magnets can't discern between these steel balls and the magnetite. And so by default, so you don't damage the pebble crusher, we were surging the pebbles back into the SAG mill which reduced throughput.

當然。我也拿那個。是安德烈。所以我上週去了現場，我確實看到了這個網站。因此，挑戰在於卵石破碎機——當卵石從半自磨機中被剔除時，上面有一塊磁鐵來識別從半自磨機中出來的雜質或金屬球。當你將高磁鐵礦放入其中時，磁鐵無法區分這些鋼球和磁鐵礦。因此，預設情況下，為了不損壞卵石破碎機，我們將卵石送回半自磨機，這降低了產量。

And so over the course of April, where you saw the increased throughput, what we did as a trial is we just rejected the pebbles. So while we worked for technologies to try to separate out what's magnetite versus the steel balls that are coming out, we just discarded the pebbles, we're storing them in a safe spot for the future.

因此，在四月期間，您看到了吞吐量的增加，我們所做的試驗就是拒絕了鵝卵石。因此，雖然我們致力於技術嘗試將磁鐵礦與即將出現的鋼球分開，但我們只是丟棄了鵝卵石，將它們存放在一個安全的地方以備將來使用。

Longer term -- so we're seeing the benefit of increased throughput capacity by doing that in the short term. Longer term, some capital projects that we're looking at, that will increase our throughput through the through the mills will allow us to just recirculate those pebbles back into the pile, and it'll come run of mine feed and not a surge into the mill of pebbles.

從長遠來看，我們看到了透過在短期內這樣做來提高吞吐量的好處。從長遠來看，我們正在考慮的一些資本項目將增加我們通過工廠的吞吐量，這將使我們能夠將這些卵石重新循環回堆中，並且它將來自礦山飼料，而不是湧入鵝卵石磨坊

And so we believe we've got it under control right now. We're looking at technologies, like I said, to separate or differentiate between magnetite and steel, but those problems will ultimately be solved like early next year with some improvements that we're planning in the mill.

所以我們相信我們現在已經控制了它。正如我所說，我們正在研究分離或區分磁鐵礦和鋼鐵的技術，但這些問題最終將在明年初透過我們計劃在工廠進行的一些改進得到解決。

Got it. And Peter, I want to come back to the issue of the 10% potential permitted capacity increase at Constancia. Just wondering what special considerations outside of the plant that you may need to consider, things like power purchase agreement, things like trucking and logistics, things like tailings. Outside of the plant, are there anything that you're going to be paying closer attention to when you think about sort of that cost benefit analysis?

知道了。 Peter，我想回到康斯坦西亞 10% 潛在許可容量增加的問題。只是想知道您可能需要考慮工廠以外的哪些特殊考慮因素，例如電力購買協議、卡車運輸和物流等、尾礦等。在工廠之外，當您考慮成本效益分析時，有什麼是您需要密切關注的嗎？

Hey, Ralph. That's a great question. I think that we are so used to the need to be a resilient operation in Peru that we plan for these types of things in advance in any case. So we have sort of surge requirements for various aspects of our operational activities there.

嘿，拉爾夫。這是一個很好的問題。我認為我們已經習慣了在秘魯保持彈性運作的需要，因此無論如何我們都會提前規劃此類事情。因此，我們對那裡的營運活動的各個方面都有某種激增的要求。

I think this will be nothing exceptional for us. I don't think there'll be any additional logistics requirements. We have ample trucking capacity. We've increased our concentrate storage capacity. Frankly, I don't see any particular requirements arising out of this.

我認為這對我們來說沒什麼特別的。我認為不會有任何額外的物流要求。我們有充足的貨運能力。我們增加了精礦儲存容量。坦白說，我沒有看到由此產生的任何特殊要求。

Understood. Well done. Thank you.

明白了。做得好。謝謝。

Greg Barnes, TD Securities.

格雷格·巴恩斯，道明證券。

Thank you. Andre, question on Copper Mountain, you saw a step change in April both on mill throughput and mill availability. What happened in April, and is this sustainable?

謝謝。安德烈，關於銅山的問題，您看到四月份工廠吞吐量和工廠可用性都發生了階梯變化。四月發生了什麼事？

Great question. Thanks for that, Greg. So there's an analogy one of our head metallurgists that he uses. It's like boiling water -- you put a lot of energy into it, and then eventually the bubbles start coming up. We've been putting a lot of energy and effort into the mill, and all of a sudden, you start to see the benefits coming through.

很好的問題。謝謝你，格雷格。我們的一位首席冶金學家使用了一個類比。這就像沸水一樣——你投入大量能量，最終氣泡開始出現。我們一直在工廠投入大量精力和精力，突然之間，您開始看到所帶來的好處。

The mill reliability, in terms of -- it's a new measure we've been tracking, and it measures the percent downtime due to unplanned events. For the quarter, we were about 96.4%. And months to months from January, we're at 94%; February, we're at 96.4%; in March, we're at 98.4% reliability. And so month to month, we're seeing that reliability.

工廠的可靠性是我們一直在追蹤的一項新衡量標準，它衡量由於計劃外事件而導致的停機百分比。本季度，我們的完成率約為 96.4%。從 1 月開始的幾個月裡，我們達到了 94%； 2 月份，我們達到 96.4%； 3 月份，我們的可靠性達到 98.4%。因此，我們每個月都看到了這種可靠性。

The big step change that happened in terms of throughput was the implementation of -- or the optimization of the expert system. So the expert system is what controls the SAG mill feed and throughput. And so we have a three-part system: one controls the speed of the mill, one monitors the density, and one is the tonnage. And in prior days, only one of them was used, which was the tonnage input.

吞吐量方面發生的重大變化是專家系統的實施或最佳化。因此，專家系統負責控制 SAG 磨機的進給量和產量。因此，我們有一個由三個部分組成的系統：一個控制磨機的速度，一個監控密度，一個是噸位。而在以前，只使用其中之一，那就是噸位輸入。

In the month of April, we turned on all three. So we were running the expert system with all three parameters, and so where the operators were more in a monitoring mode rather than dialing up the individual components. And so we're seeing the benefits of that going through in addition to the prior question about the rejection of pebbles. So our intention is to continue as we're in high magnetite scenarios right now to reject them until we have some capital projects come in early next year that will solve the overall throughput.

在四月份，我們開啟了這三個功能。因此，我們運行具有所有三個參數的專家系統，因此操作員更多地處於監控模式，而不是撥打各個組件。因此，除了先前關於拒絕卵石的問題之外，我們還看到了這樣做的好處。因此，我們的目的是繼續拒絕它們，因為我們目前處於高磁鐵礦情況，直到明年初我們有一些資本項目到來，這將解決整體吞吐量問題。

Fantastic progress. And a question for you, Eugene, on the gold hedging. Obviously, you've done a little bit. I think it's about 15% hedged on callers for the balance of the year. Do you intend to do more of that?

驚人的進步。尤金，還有一個關於黃金對沖的問題。顯然，你已經做了一點點。我認為今年餘下的時間裡，大約有 15% 的資金對來電者進行了對沖。您打算做更多這樣的事嗎？

Thanks, Greg. And no, not at this time. I think we did some modest hedging at Copper Mountain to protect some cash flows as prudent financial management during this stabilization period. Given the volatility we've seen in prices in prior years, it was a prudent measure to keep ourselves free cash flow positive.

謝謝，格雷格。不，現在不行。我認為我們在銅山做了一些適度的對沖，以保護一些現金流，作為穩定期間的審慎財務管理。考慮到前幾年價格的波動，這是保持自由現金流為正值的謹慎措施。

In general, our strategy is to provide the investors with the increasing exposure to both copper and gold. And by prudently managing our cash flow to want to acquire Copper Mountain and stabilize it, we think we're giving investors kind of more exposure to that.

總的來說，我們的策略是為投資者提供更多的銅和黃金曝險。透過謹慎管理我們的現金流，以收購銅山並穩定它，我們認為我們正在為投資者提供更多的機會。

So at this time, given where prices are, I think we're comfortable to let it with callers we have. If we see sort of a decline, we may want to ensure that we underwrite some of that. But given the strong copper and gold prices today, I don't feel the need to add additional hedges at this time. Let it ride.

因此，目前，考慮到價格，我認為我們可以放心地讓來電者接受。如果我們看到某種程度的下降，我們可能希望確保我們承保其中的一部分。但考慮到今天銅價和金價的強勁，我認為目前沒有必要增加額外的避險。任逍遙。

Great. Thanks, Eugene.

偉大的。謝謝，尤金。

(Operator Instructions) Dalton Baretto, Canaccord.

（操作員說明）Dalton Baretto，Canaccord。

Thanks, operator. Good morning, Peter and team. I've got a couple of questions as it relates to the 3-P plan, given what's happening in the copper market currently. I guess my first question is, how are you guys thinking about a hurdle rate for Copper World, given the movement in the copper price?

謝謝，接線生。早上好，彼得和團隊。鑑於當前銅市場的情況，我有幾個與 3-P 計劃相關的問題。我想我的第一個問題是，考慮到銅價的變動，你們如何考慮銅世界的最低門檻利率？

Hi, Dalton. The 3-P plan is a thoughtful plan that kind of looks throughout the cycle. And the basis of that potential sanction's vision on the rate of return part was 15% IRR, a minimum of that, at base prices. When we put out that study, that was [$350] copper. And certainly, the PFS that we released last year achieved that. Obviously, at today's higher prices, we're going to see -- and the IRRs, if they were to hold during the period of a build and through first production at those levels, IRRs north of 20%.

嗨，道爾頓。 3-P 計劃是一個深思熟慮的計劃，可以貫穿整個週期。潛在製裁的回報率部分願景的基礎是 15% 的 IRR（以基本價格計算的最低值）。當我們發表這項研究時，那是[350 美元]銅。當然，我們去年發布的 PFS 實現了這一目標。顯然，在今天較高的價格下，我們將會看到，如果 IRR 在建設期間和首次生產期間保持在這些水平，我們將看到 IRR 超過 20%。

And so certainly, that's one element of the plan that I think is clear on track. I mean, the current prices have allowed us to achieve deleveraging faster than originally planned, and we're very pleased with that result. And as I think Peter mentioned, over $200 million of net debt reduction in the last three quarters since the acquisition of Copper Mountain, and now, we're at 1.3 times net debt to EBITDA. So from a financial standpoint, we're getting towards that.

當然，我認為這是該計劃中明確的一項內容。我的意思是，目前的價格使我們能夠比原計劃更快地實現去槓桿化，我們對此結果感到非常滿意。正如我認為 Peter 所提到的，自從收購 Copper Mountain 以來，過去三個季度的淨債務減少了超過 2 億美元，而現在，我們的淨債務是 EBITDA 的 1.3 倍。因此，從財務角度來看，我們正在朝著這個目標邁進。

I don't think we -- there's nothing to relax on the hurdle rate for investment in Copper World. We think it's still prudent to have those strong IRRs. There's significant work need to be done on planning and the feasibility study still. So the production -- we know the project's a great project. As Peter mentioned, it's the highest grade undeveloped copper deposit in the Americas at the reserve stage. And consequently, it has very high returns, and that's the kind of project that Hudbay wants to invest in.

我不認為我們——對銅世界的投資門檻沒有什麼可以放鬆的。我們認為保持如此強勁的內部報酬率仍然是謹慎的做法。規劃和可行性研究仍有大量工作要做。所以製作——我們知道這個項目是一個偉大的項目。正如彼得所提到的，這是美洲處於儲量階段的最高品位的未開發銅礦床。因此，它具有非常高的回報，這正是 Hudbay 想要投資的項目。

Thanks, Eugene. So then given everything you just said, I guess my second question is, do you still want or need to do a deal on the project? And then part B, I guess, is would you consider doing a deal ahead of the permits just to kind of take advantage of current market conditions?

謝謝，尤金。那麼考慮到你剛才所說的一切，我想我的第二個問題是，你是否仍然希望或需要就該專案達成協議？然後，我想，B 部分是，您是否會考慮在獲得許可之前進行交易，以利用當前的市場狀況？

Again, we're going to stick with the plan here. The plan is to get the permits and get a partner. Given the attractiveness of the project, we expect that there's lots of -- there's certainly lots of interest. I don't think front running the permits with a partner today, in today's sort of hot environment, is the right thing to do from a prudent planning basis. We're going to evaluate once we have the permits and how we move the project forward to create the most value for shareholders and potentially that partnership.

再次強調，我們將堅持這裡的計畫。計劃是獲得許可並找到合作夥伴。鑑於該項目的吸引力，我們預計會有很多——當然會有很多人感興趣。我認為，在當今炎熱的環境下，從審慎規劃的角度來看，與合作夥伴一起預先申請許可證並不是正確的做法。一旦獲得許可，我們將進行評估，以及如何推進項目，為股東和潛在的合作夥伴關係創造最大價值。

But we're not getting -- I don't think you get the sustained highest value by doing this in front of the permits to try to make -- get a quick win here. We want to look at this over the long term in terms of what's best for the company, in terms of the percentage we sell, the valuation of the project, and also, as I think Peter highlighted in his remarks, the optionality of Phase 2 given the improved permitting environment. There's a lot of value there by just sticking with the plan here and executing.

但我們並沒有——我認為在獲得許可之前這樣做並不能獲得持續的最高價值——在這裡快速獲勝。我們希望從長遠角度來看待這個問題，從對公司最有利的方面、我們銷售的百分比、項目的估值，以及正如我認為彼得在他的講話中強調的那樣，第二階段的選擇性鑑於許可環境的改善。只要堅持並執行這裡的計劃，就會有很多價值。

I think I'd add, Dalton, that there is occasional fierce debate amongst the management team about the options. But we typically land back at the scenario Eugene has described, but we'll continue to debate this going forward.

道爾頓，我想我要補充一點，管理團隊之間偶爾會就這些選擇進行激烈的爭論。但我們通常會回到尤金所描述的場景，但我們將繼續對此進行辯論。

And so then maybe one last one, if I can squeeze it in, as you look at Copper World and you think about buy versus build in the current environment, can you talk a little bit about how Copper World compares to market valuations on a per ton of copper basis?

那麼也許最後一個，如果我可以把它擠進去，當你看看銅世界並考慮在當前環境下購買與建設時，你能談談銅世界與市場估值的比較嗎？

I mean, I'll kick off by saying that if you look at capital intensity, Copper World has a capital intensity of sub-$16,000 an annual ton. So in comparison, Copper Mountain cost us about $12,000 annual dollars a ton. But when you look at projects that others are building, they cost $20,000 to $30,000 to $40,000 per annual ton. So if you could acquire -- if we could acquire something like the Copper Mountain at $10,000 or $12,000 an annual ton, of course, we'd be happy to do it. But it's a bit of a unicorn. So we continue to try to find.

我的意思是，我首先要說的是，如果你看看資本密集度，Copper World 的資本密集度為每年 16,000 美元以下。相比之下，銅山礦場每年每噸的成本約為 12,000 美元。但當你看看其他人正在建造的項目時，你會發現它們每年每噸的成本為 20,000 至 30,000 至 40,000 美元。因此，如果您能夠以每年 10,000 美元或 12,000 美元的價格收購像銅山這樣的東西，我們當然很樂意這樣做。但它有點像獨角獸。所以我們繼續嘗試尋找。

But the ease of implementation of Copper World is extremely attractive, I believe. And it makes that the capital intensity, which stacks up very well against peer projects, highly, highly attractive. So in the absence of good acquisitions to buy, this is the way to go. And we've demonstrated in the past that we're good at this. And so we're excited to do it.

但我相信 Copper World 的實施簡便性非常有吸引力。這使得資本密集度與同行專案相比非常具有吸引力。因此，在沒有好的收購對象的情況下，這就是正確的選擇。我們過去已經證明我們擅長這方面。所以我們很高興能做到這一點。

I have nothing further to add.

我沒有什麼好補充的了。

All right. Well, thanks very much, guys. That's all for me. Congratulations.

好的。嗯，非常感謝，夥計們。這就是我的全部。恭喜。

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

謝謝。問答環節到此結束。我想將會議轉交坎迪斯·布魯爾女士發表閉幕詞。

Thank you, operator. And thank you, everyone, for joining us today. If you have any further questions, please feel free to reach out to our investor relations team. Thank you. Have a good day.

謝謝你，接線生。感謝大家今天加入我們。如果您還有任何疑問，請隨時聯絡我們的投資者關係團隊。謝謝。祝你有美好的一天。

Ladies and gentlemen, this concludes the conference call for today. You can now disconnect your lines.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開線路。