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Hudbay Minerals Inc. (HBM.TO)

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9.88-0.24 (-2.37%)
At close: 4:00PM EDT
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Previous Close10.12
Open10.06
Bid9.87 x 0
Ask9.88 x 0
Day's Range9.76 - 10.12
52 Week Range2.79 - 10.58
Volume1,310,376
Avg. Volume1,432,283
Market Cap2.583B
Beta (5Y Monthly)2.09
PE Ratio (TTM)N/A
EPS (TTM)-0.69
Earnings DateMay 12, 2021 - May 17, 2021
Forward Dividend & Yield0.02 (0.20%)
Ex-Dividend DateMar. 08, 2021
1y Target Est9.83
  • Hudbay Commences Pampacancha Pit Development
    GlobeNewswire

    Hudbay Commences Pampacancha Pit Development

    TORONTO, April 07, 2021 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM) today announced that the final land user agreement for Pampacancha has been completed and Hudbay now has full access to the site to begin pit development activities. “We are very pleased to have completed the final land user agreements at Pampacancha and we remain on track for first production in the second quarter of 2021, in line with guidance,” said Peter Kukielski, Hudbay’s President and Chief Executive Officer. “This major milestone was achieved due to collaboration between the community and the Constancia team, which further demonstrates Hudbay’s strong social license to operate in Peru.” In January 2021, the company commenced pre-development activities, including haul road construction and site preparation work, which will allow Hudbay to commence pre-stripping activities shortly. Pampacancha is a high-grade copper and gold satellite deposit located approximately seven kilometres from Hudbay’s Constancia mine and processing facilities in Peru. Pampacancha is expected to contribute to an increase in copper and gold production at Constancia from 2022 to 2025 as the higher grades enter into the mine plan. Forward-Looking Information This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. Forward-looking information includes, but is not limited to, plans to commence the development of Pampacancha. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by the company at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that Hudbay identified and were applied by the company in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to, the expected timing of pre-stripping and production activities on the Pampacancha deposit and no significant unanticipated delays to the full development of Pampacancha. The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), risks associated with the political situation in Peru, risks associated with the rainy season in Peru as well as the risks discussed under the heading “Risk Factors” in Hudbay’s most recent Annual Information Form. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, you should not place undue reliance on forward-looking information. Hudbay does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law. About Hudbay Hudbay (TSX, NYSE: HBM) is a diversified mining company primarily producing copper concentrate (containing copper, gold and silver) and zinc metal. Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and copper projects in Arizona and Nevada (United States). The company’s growth strategy is focused on the exploration, development, operation and optimization of properties it already controls, as well as other mineral assets it may acquire that fit its strategic criteria. Hudbay’s vision is to be a responsible, top-tier operator of long-life, low-cost mines in the Americas. Hudbay’s mission is to create sustainable value through the acquisition, development and operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining, and to see the regions and communities in which the company operates benefit from its presence. The company is governed by the Canada Business Corporations Act and its shares are listed under the symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima. Further information about Hudbay can be found on www.hudbay.com. For further information, please contact: Candace BrûléDirector, Investor Relations(416) 814-4387candace.brule@hudbay.com

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    Stocks in play: Hudbay Minerals Inc.

    Announced the results of its preliminary economic assessment (“PEA”) of its 100%-owned Mason copper ...

  • Hudbay Announces Positive Preliminary Economic Assessment for its Mason Copper Project
    GlobeNewswire

    Hudbay Announces Positive Preliminary Economic Assessment for its Mason Copper Project

    Figure 1: Mason Location Map The Mason project is located in west-central Nevada, approximately 75 kilometres southeast of Reno and seven kilometres west of the town of Yerington. The area is known as the historic Yerington Mining District due to known historical mining activities. Figure 2: Mason Land Package Through a combination of patented and unpatented mineral claims on public and private land, the Mason project has a total area of approximately 13,820 hectares, including the land acquired through the Mason Valley acquisition in 2019. Figure 3: Mason Proposed Site Layout Proposed site layout including the location of the Mason open pit mine, the processing plant, waste rock facility and tailings management facility. Figure 4: Mason Valley Historical Mines The Mason Valley property consists of several past-producing mines with visuals of copper mineralization in the area. 27-year mine life with average annual copper production of approximately 140,000 tonnes over the first ten years of full production.Mason has the potential to more than double Hudbay’s current copper production levels, and if brought into production, Mason is expected to become the third largest copper mine in the United States.After-tax net present value (10%) of $519 million and 13.7% internal rate of return at $3.10 per pound copper, which increases to $773 million and 15.4%, respectively, at $3.25 per pound copper.Mine plan assumes the construction of a 120,000 tonnes per day conventional flotation concentrator and an initial capital cost estimate of approximately $2.1 billion.The mine plan includes 1.1 billion tonnes at 0.34% copper-equivalenti, 98% of which is from the measured and indicated categories.Mason’s 2.2 billion tonne measured and indicated resource estimate is one of the largest greenfield copper projects in the Americas.Opportunities to further enhance project economics through exploration for higher-grade satellite deposits on Hudbay’s prospective land package in Nevada.Mason is a viable long-term option for potential future development and a strong component of Hudbay’s pipeline of long-term growth opportunities in mining friendly jurisdictions. TORONTO, April 06, 2021 (GLOBE NEWSWIRE) -- Hudbay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE: HBM) today announced the results of its preliminary economic assessment (“PEA”) of its 100%-owned Mason copper project located in Nevada, United States. All dollar amounts are in US dollars, unless otherwise noted. “The Mason PEA demonstrates the success of Hudbay’s consistent growth strategy and our team’s ability to create value from accretive acquisitions of high-quality copper projects in mining-friendly jurisdictions,” said Peter Kukielski, Hudbay’s President and Chief Executive Officer. “We added Mason to our development pipeline portfolio in 2018 and have since leveraged our integrated core competencies of exploration, mine planning and project development to demonstrate that Mason is a quality long-term development project in our robust organic growth pipeline.” Hudbay’s Mason Development Strategy The Mason project is a large greenfield copper deposit located in the historic Yerington District of Nevada and is one of the largest undeveloped copper porphyry deposits in North America. Mason’s measured and indicated mineral resource estimates are approximately twice the size of Hudbay’s Constancia and Rosemont deposits. Hudbay views the Mason project as a long-term option for future development and a strong component of its pipeline of long-term growth opportunities in mining friendly jurisdictions. Please refer to Figure 1 for a map showing the location of the Mason project. In 2017, Hudbay made a $2 million toe-hold equity investment in Mason Resources Corp., the entity that owned the Mason project at that time. In October 2018, Hudbay entered into an agreement to acquire the remaining 86% of the issued and outstanding common shares of Mason Resources Corp. that it didn’t already own for approximately $15 million. The acquisition of Mason was completed by way of a plan of arrangement in December 2018. Since acquiring Mason, Hudbay has consolidated a prospective package of patented and unpatented mining claims contiguous to the Mason project in two private transactions in 2019 and 2020, including a property called Mason Valley, as shown in Figure 2. In March 2021, Hudbay announced an updated measured and indicated resource estimate of 2.2 billion tonnes at 0.29% copper at Mason, based on a revised resource model and an updated mine plan constructed by Hudbay personnel using the same methods applied at Constancia. The company has also advanced a number of technical studies to support the completion of its 2021 PEA. Mason 2021 PEA Summary The 2021 Mason PEA contemplates a 27-year mine life with average annual copper production of approximately 140,000 tonnes over the first ten years of full production. At a copper price of $3.10 per pound, the after-tax net present value using a 10% discount rate is $519 million and the internal rate of return is 13.7%. The valuation metrics are highly sensitive to the copper price and at a price of $3.25 per pound, the after-tax net present value using a 10% discount rate increases to $773 million and the internal rate of return increases to 15.4%. A summary of key valuation, production and cost details from the 2021 PEA can be found below. For further details, including metrics provided on an annual basis, please refer to the section titled “Detailed Cash Flow Model” at the end of this news release. Summary of Key Metrics (at $3.10/lb Cu)UnitValueValuation Metrics (Unlevered)1 Net present value @ 8% (after-tax)$ millions$945 Net present value @ 10% (after-tax)$ millions$519 Internal rate of return (after-tax)%13.7%Payback period# years9.0 EBITDA (annual LOM avg.)$ millions$339 Project Metrics Initial capital2$ millions$2,079Operating Metrics Copper production (annual avg. over first 10 full years)000 tonnes138.7Copper production (annual LOM avg.)000 tonnes112.3Copper recovery%90.0%Sustaining capital (annual LOM avg.)$ millions$21Cash cost3 (LOM avg.)$/lb Cu$1.61Sustaining cash cost3 (LOM avg.)$/lb Cu$1.76Mining unit cost4 (LOM avg.)$/t moved$1.20Milling unit cost (LOM avg.)$/t milled$4.85G&A unit cost (LOM avg.)$/t milled$1.15Combined unit cost5 (LOM avg.)$/t milled$8.66 Note: “LOM” refers to life-of-mine total.1 Calculated assuming the following commodity prices: copper price of $3.10 per pound, gold price of $1,500 per ounce, silver price of $18.00 per ounce and molybdenum price of $10.00 per pound.2 Initial capital assumes a 20% contingency.3 Cash cost and sustaining cash cost, net of by-product credits, per pound of copper produced. By-product credits calculated using the following commodity prices: gold price of $1,500 per ounce, silver price of $18.00 per ounce and molybdenum price of $10.00 per pound. Sustaining cash cost includes sustaining capital expenditures and royalties. Cash cost and sustaining cash cost are non-IFRS financial performance measures with no standardized definition under IFRS. For further details on why Hudbay believes cash costs are a useful performance indicator, please refer to the company's most recent Management's Discussion and Analysis for the three and twelve months ended December 31, 2020.4 Before the impact of capitalized stripping.5 Combined mine, mill and general and administrative costs per tonne of ore milled, after the impact of capitalized stripping. Cu Price SensitivityUnit$3.00/lb$3.10/lb$3.25/lb$3.50/lb$3.75/lb$4.00/lbValuation Metrics Net present value1 @ 8%$ millions$739$945 $1,253$1,761$2,264$2,766Net present value1 @ 10%$ millions$350$519 $773$1,191$1,606$2,019Internal rate of return1%12.5%13.7 %15.4%18.1%20.7%23.1%Payback period# years9.59.0 8.47.77.16.7EBITDA (annual LOM avg.)$ millions$315$339 $374$434$493$553 1 Net present value and internal rate of return are shown on an after-tax basis. Overview of Proposed Operation The Mason deposit is a large tonnage, copper-molybdenum deposit and is planned to be a traditional open pit shovel/truck operation with a copper sulphide mineral processing plant producing commercial grade copper and molybdenum concentrate. The plant is designed to operate at a throughput rate of 120,000 tonnes per day. Please refer to Figure 3 for a map of the proposed site layout. Mining operations in the pit are designed to be performed from 15 and 30-metre-high benches using large-scale mining equipment including 10 5/8-inch diameter rotary blast hole drills, 74 cubic-yard electric mining shovels, a 55 cubic-yard hydraulic shovel, a 37 cubic-yard front-end loader and 290-tonne capacity haul trucks. During the 27-year operation, the mine plan achieves peak mining rates until year 13, then reduces by about half of the original mining rate from year 14 to 20 as the strip ratio drops. The remaining seven years assumes the processing of rehandled ore from stockpiles. The concentrator design consists of conventional crushing and milling, followed by rougher and cleaner froth flotation, and is a similar flowsheet to that used at Hudbay’s Constancia mine in Peru. The proposed site layout assumes the plant will be located to the northwest of the open pit, northeast of the waste rock facility and east of the tailings management facility. Haul trucks will dump ore at the primary crusher, which will feed the concentrator via overland conveyor. Operating costs were developed by Hudbay based on a bottom-up approach utilizing price quotes from suppliers and local costs for labour. Mine operating costs were validated against actual costs at Constancia and other similar projects and operations. Mineral Resource Estimate The PEA and mine plan were based on a revised resource model which was used to publish Hudbay’s first compiled updated resource estimate for Mason. The resource model was constructed using the same methods Hudbay applied at Constancia. Based on this new model, including resource classification criteria calibrated on historical performance at Constancia, control of grade over-smoothing in the central zone of the deposit and the use of a lower cut-off grade, the measured and indicated resources increased to 2.2 billion tonnes at 0.29% copper, from 1.4 billion tonnes at 0.32% copper previously. The current mineral resource estimates for Mason, based on the revised resource model as of January 1, 2021, are summarized below. Mason ProjectMineral Resource Estimates1,2,3TonnesCu Grade(%)Mo Grade(g/t)Au Grade(g/t)Ag Grade(g/t)Measured 1,417,000,0000.29590.0310.66Indicated 801,000,0000.30800.0250.57Total Measured and Indicated 2,219,000,0000.29670.0290.63Inferred 237,000,0000.24780.0330.73 Note: totals may not add up correctly due to rounding.1 Mineral resource estimates that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not include factors for mining recovery or dilution.2 Metal prices of $3.10 per pound copper, $10.00 per pound molybdenum, $1,500 per ounce gold, and $18.00 per ounce silver were used to estimate mineral resources.3 Mineral resource estimates are reported as 20 metres by 20 metres by 15 meters blocks above cut-off using a minimum NSR per tonne of $6.25. Regional Upside Potential There is opportunity to further enhance the project economics through exploration for higher grade satellite deposits on Hudbay’s prospective land package in Nevada, including Mason Valley. The Mason Valley property hosts several historical underground copper mines that were in production in the early 1900s. Much of the Mason Valley property is located on Hudbay’s wholly owned private lands and contains highly prospective skarn mineralization. Mason Valley presents a similar opportunity to Hudbay’s Copper World property in Arizona, where the company has recently announced the discovery of four mineral deposits in a historical mining district. Historical drilling and production records from the past producing mines at Mason Valley indicate the mineralization is high grade and starts at or near surface (please refer to Figure 4). In 2015, Metal Bank Limited optioned the Mason Valley property and conducted a limited campaign of nine reverse circulation drillholes at the Bluestone prospect with the objective to define the extent of the high-grade copper mineralization. Two notable holes intersected 42 metres of 1.51% copper and 34 metres of 0.61% copper, both starting from surface. The company also owns the Blue Hill copper oxide deposit located 1.5 kilometres northwest of the Mason deposit, which was not included in the 2021 PEA and may present an opportunity to add an oxide component to the Mason project design in the future. Next Steps Hudbay continues to compile and interpret historical data relating to its land package near Mason. Once this is done, the company expects to complete a geophysical survey to refine the exploration targets in preparation for a potential initial drilling campaign later this year. The company will also continue to advance its local stakeholder engagement program while advancing trade-off studies to support future pre-feasibility work on the project. Non-IFRS Financial Performance Measures Cash cost and sustaining cash cost per pound of copper produced are shown because the company believes they help investors and management assess the performance of its operations, including the margin generated by the operations and the company. Unit operating costs are shown because these measures are used by the company as a key performance indicator to assess the performance of its mining and processing operations. These measures do not have a meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently. For further details on these measures, please refer to page 53 of Hudbay’s management’s discussion and analysis for the year ended December 31, 2020 available on SEDAR at www.sedar.com. Qualified Person and NI 43-101 The scientific and technical information contained in this news release related to the Mason project has been approved by Olivier Tavchandjian, P. Geo, Hudbay’s Vice-President, Exploration and Geology. Mr. Tavchandjian is a qualified person pursuant to NI 43 101. The company expects to voluntarily file a National Instrument 43-101 technical report on Mason in the coming months. This preliminary economic assessment is preliminary in nature, includes inferred resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty the preliminary economic assessment will be realized. Note to United States Investors This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of United States securities laws. Canadian reporting requirements for disclosure of mineral properties are governed by the Canadian Securities Administrators’ National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). For this reason, information contained in this news release in respect of the Mason project may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder. For further information on the differences between the disclosure requirements for mineral properties under the United States federal securities laws and NI 43-101, please refer to the company’s AIF, a copy of which has been filed under Hudbay’s profile on SEDAR at www.sedar.com and the company’s Form 40-F, a copy of which has been filed on EDGAR at www.edgar.com. Forward-Looking Information This news release contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “budget”, “guidance”, “scheduled”, “estimates”, “forecasts”, “strategy”, “target”, “intends”, “objective”, “goal”, “understands”, “anticipates” and “believes” (and variations of these or similar words) and statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” “occur” or “be achieved” or “will be taken” (and variations of these or similar expressions). All of the forward-looking information in this news release is qualified by this cautionary note. Forward-looking information includes, but is not limited to, the results of the Mason PEA, including the production, operating cost capital cost and cash cost estimates, metal price assumptions, cash flow projections, metal recoveries, mine life projections and production rates for the Mason project, the planned design of the Mason project, the potential to further enhance the economics of the Mason project, including through the exploration of the Mason Valley property, the possibility of bringing the Mason project into production and its position as compared to other copper mines in the United States and expectations regarding future work programs to advance the Mason project. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that Hudbay identified and were applied by the company in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to: the success of exploration and development activities at Mason;the accuracy of geological, mining and metallurgical estimates;anticipated metals prices and the costs of production;the supply and demand for metals Hudbay produces;the supply and availability of all forms of energy and fuels at reasonable prices;no significant unanticipated operational or technical difficulties;the availability of additional financing, if needed;the availability of personnel for the company’s exploration, development and operational projects and ongoing employee relations;maintaining good relations with the communities in which the company operates, including the neighbouring communities and local governments in Nevada;no significant unanticipated challenges with stakeholders at the Mason project;no significant unanticipated events or changes relating to regulatory, environmental, health and safety matters;no contests over title to Hudbay’s properties, including as a result of rights or claimed rights of Indigenous peoples or challenges to the validity of its unpatented mining claims;no significant unanticipated litigation;certain tax matters, including, but not limited to the mining tax regime in Nevada; andno significant and continuing adverse changes in general economic conditions or conditions in the financial markets (including commodity prices and foreign exchange rates). The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks associated with the COVID-19 pandemic and its effect on the company’s operations, financial condition, projects and prospects, the possibility of a global recession arising from the COVID-19 pandemic and attempts to control it, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), uncertainties related to the development and operation of the company’s projects, risks in respect of Indigenous and community relations, rights and title claims, risks in respect of permitting the Mason project, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources, and the potential for variations in grade and recovery rates, as well as the risks discussed under the heading “Risk Factors” in the company’s AIF. Should one or more risk, uncertainty, contingency or other factor materialize or should any factor or assumption prove incorrect, actual results could vary materially from those expressed or implied in the forward-looking information. Accordingly, you should not place undue reliance on forward-looking information. The company does not assume any obligation to update or revise any forward-looking information after the date of this news release or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law. About Hudbay Hudbay (TSX, NYSE: HBM) is a diversified mining company primarily producing copper concentrate (containing copper, gold and silver) and zinc metal. Directly and through its subsidiaries, Hudbay owns three polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and copper projects in Arizona and Nevada (United States). The company’s growth strategy is focused on the exploration, development, operation and optimization of properties it already controls, as well as other mineral assets it may acquire that fit its strategic criteria. Hudbay’s vision is to be a responsible, top-tier operator of long-life, low-cost mines in the Americas. Hudbay’s mission is to create sustainable value through the acquisition, development and operation of high-quality, long-life deposits with exploration potential in jurisdictions that support responsible mining, and to see the regions and communities in which the company operates benefit from its presence. The company is governed by the Canada Business Corporations Act and its shares are listed under the symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima. Further information about Hudbay can be found on www.hudbay.com. For investor and media inquiries, please contact: Candace BrûléDirector, Investor Relations (416) 814-4387 candace.brule@hudbay.com Detailed Cash Flow Model Mason Cash Flow ModelUnitLOMY-03Y-02Y-01Y01Y02Y03Y04Y05Y06Y07Mining Activities Ore mined000 tonnes1,133,427 - - - 41,929 45,929 60,172 64,130 57,167 56,756 53,605 Waste mined000 tonnes1,448,540 - - - 117,871 113,781 99,828 95,870 102,833 103,244 106,395 Rehandle000 tonnes301,531 - - - 200 290 - - - - - Pre-strip – Ore mined000 tonnes3,012 - - 3,012 - - - - - - - Pre-strip – Waste mined000 tonnes116,988 - - 116,988 - - - - - - - Mineral moved000 tonnes3,003,498 - - 120,000 160,000 160,000 160,000 160,000 160,000 160,000 160,000 Strip ratio excl. pre-stripwaste/ore1.28 - - - 2.81 2.48 1.66 1.49 1.80 1.82 1.98 Mining rate000 t/day353 - - 329 438 438 438 438 438 438 438 Unit cost$/t moved1.20 - - - 1.20 1.20 1.20 1.25 1.25 1.25 1.29 Milling Activities Ore milled000 tonnes1,136,439 - - - 36,500 43,800 43,800 43,800 43,800 43,800 43,800 Headgrade – Cu%0.296% - - - 0.310% 0.381% 0.356% 0.380% 0.367% 0.369% 0.364% Headgrade – Mo%0.006% - - - 0.006% 0.008% 0.005% 0.007% 0.003% 0.002% 0.003% Headgrade – Aug/tonne0.032 - - - 0.013 0.026 0.024 0.027 0.042 0.029 0.025 Headgrade – Agg/tonne0.667 - - - 0.381 0.516 0.527 0.659 0.826 0.590 0.597 Milling Rate000 t/day115 - - - 100 120 120 120 120 120 120 Unit cost$/t milled4.85 - - - 4.90 4.90 4.90 4.90 4.90 4.90 4.90 Concentrates Produced & Sold Copper concentrate000 tonnes10,108 - - - 339 501 468 499 482 485 479 Contained metal – Cu000 tonnes3,033 - - - 102 150 140 150 145 145 144 Contained metal – Au000 ounces696 - - - 9 22 20 23 36 24 21 Contained metal – Ag000 ounces14,630 - - - 268 436 445 556 698 499 504 Payable metal - Cu000 tonnes2,926 - - - 98 145 135 145 140 140 139 Payable metal – Au000 ounces618 - - - - 20 18 21 32 22 19 Payable metal – Ag000 ounces12,133 - - - - - - 501 628 449 454 Moly concentrate000 tonnes64 - - - 2 3 2 3 1 1 1 Contained metal – Mo000 tonnes32 - - - 1 2 1 1 1 1 1 Payable metal – Mo000 tonnes31 - - - 1 2 1 1 1 1 1 Capital Costs Project capital$ millions2,079 228 839 1,012 - - - - - - - Sustaining capital$ millions541 - - - 29 34 34 34 34 29 29 Deferred stripping$ millions427 - - - 77 66 28 17 37 38 49 Total$ millions3,046 228 839 1,012 106 100 62 51 71 67 78 Operating Costs Mining$ millions3,458 - - - 192 192 192 200 200 200 206 Deferred stripping$ millions(427) - - - (77) (66) (28) (17) (37) (38) (49) Milling$ millions5,506 - - - 179 215 215 215 215 215 215 G&A$ millions1,272 - - - 46 55 55 55 55 55 55 Closure + surety bonds$ millions153 1 1 1 1 1 1 1 1 1 1 Total$ millions9,963 1 1 1 340 396 435 453 433 432 427 Cost Metrics Cash cost$/lb Cu prod.1.61 - - - 1.81 1.40 1.65 1.56 1.52 1.58 1.59 Sustaining cash cost$/lb Cu prod.1.76 - - - 2.30 1.72 1.86 1.73 1.76 1.81 1.85 Combined unit cost$/t milled8.66 - - - 9.32 9.05 9.93 10.34 9.89 9.86 9.76 Cash Flow Summary Gross revenue$ millions21,838 - - - 697 1,059 975 1,061 1,030 1,011 998 TC/RC$ millions(1,417) - - - (47) (70) (64) (70) (66) (65) (65) Freight$ millions(1,320) - - - (44) (65) (61) (65) (63) (63) (62) NSR royalty$ millions(76) - - - (2) (4) (3) (4) (4) (4) (3) Operating costs$ millions(9,963) (1) (1) (1) (340) (396) (435) (453) (433) (432) (427) Federal tax$ millions(576) - - - - - (2) (2) (5) (16) (15) State tax$ millions(314) - - - - - (6) (5) (10) (9) (8) WC changes$ millions0 37 100 28 (139) (16) 6 (5) 2 1 2 Cash from operations$ millions8,173 36 99 27 123 507 409 458 451 423 419 Capital costs$ millions(3,046) (228) (839) (1,012) (106) (100) (62) (51) (71) (67) (78) Unlevered free cash flow$ millions5,127 (192) (740) (984) 17 407 348 407 380 356 342 Mason Cash Flow ModelUnitY08Y09Y10Y11Y12Y13Y14Y15Y16Y17Y18Mining Activities Ore mined000 tonnes61,926 60,606 75,486 69,209 72,697 60,446 56,742 65,268 69,051 62,323 45,688 Waste mined000 tonnes98,074 99,394 84,514 90,791 87,303 99,554 94,242 44,732 6,993 746 103 Rehandle000 tonnes- - - - - - - - - - - Pre-strip – Ore mined000 tonnes- - - - - - - - - - - Pre-strip – Waste mined000 tonnes- - - - - - - - - - - Mineral moved000 tonnes160,000 160,000 160,000 160,000 160,000 160,000 150,983 110,000 76,043 63,069 45,791 Strip ratio excl. pre-stripwaste/ore1.58 1.64 1.12 1.31 1.20 1.65 1.66 0.69 0.10 0.01 0.00 Mining rate000 t/day438 438 438 438 438 438 414 301 208 173 125 Unit cost$/t moved1.29 1.29 1.29 1.31 1.32 1.30 1.37 1.41 1.43 1.44 1.39 Milling Activities Ore milled000 tonnes43,800 43,800 43,800 43,800 43,800 43,800 43,800 43,800 43,800 43,800 43,800 Headgrade – Cu%0.336% 0.312% 0.314% 0.339% 0.357% 0.349% 0.319% 0.330% 0.329% 0.320% 0.285% Headgrade – Mo%0.008% 0.003% 0.004% 0.004% 0.003% 0.006% 0.008% 0.008% 0.008% 0.009% 0.004% Headgrade – Aug/tonne0.042 0.044 0.043 0.040 0.026 0.026 0.037 0.039 0.040 0.040 0.051 Headgrade – Agg/tonne0.904 0.916 0.751 0.733 0.639 0.572 0.854 1.008 0.867 0.846 1.028 Milling Rate000 t/day120 120 120 120 120 120 120 120 120 120 120 Unit cost$/t milled4.90 4.90 4.90 4.90 4.90 4.90 4.90 4.90 4.90 4.90 4.90 Concentrates Produced & Sold Copper concentrate000 tonnes442 410 412 445 469 459 419 433 432 420 374 Contained metal – Cu000 tonnes132 123 124 134 141 138 126 130 130 126 112 Contained metal – Au000 ounces35 37 36 34 22 22 31 33 34 34 43 Contained metal – Ag000 ounces764 774 634 619 540 483 721 852 733 715 869 Payable metal - Cu000 tonnes128 119 119 129 136 133 121 125 125 122 108 Payable metal – Au000 ounces32 33 33 30 20 20 28 30 30 31 39 Payable metal – Ag000 ounces688 696 571 557 486 435 649 767 660 644 782 Moly concentrate000 tonnes3 1 2 2 1 2 4 4 3 4 2 Contained metal – Mo000 tonnes2 1 1 1 1 1 2 2 2 2 1 Payable metal – Mo000 tonnes2 1 1 1 1 1 2 2 2 2 1 Capital Costs Project capital$ millions- - - - - - - - - - - Sustaining capital$ millions29 27 27 25 25 25 25 27 27 10 10 Deferred stripping$ millions25 28 - 3 - 29 30 - - - - Total$ millions54 55 27 28 25 54 55 27 27 10 10 Operating Costs Mining$ millions207 206 206 210 211 209 207 155 109 91 64 Deferred stripping$ millions(25) (28) - (3) - (29) (30) - - - - Milling$ millions215 215 215 215 215 215 215 215 215 215 215 G&A$ millions55 55 55 55 55 55 55 55 53 53 53 Closure + surety bonds$ millions1 1 1 1 1 1 1 1 1 1 1 Total$ millions453 448 477 478 481 450 448 426 377 359 332 Cost Metrics Cash cost$/lb Cu prod.1.63 1.77 1.87 1.77 1.78 1.67 1.70 1.56 1.41 1.35 1.38 Sustaining cash cost$/lb Cu prod.1.83 1.98 1.98 1.87 1.87 1.86 1.91 1.67 1.51 1.39 1.43 Combined unit cost$/t milled10.35 10.23 10.88 10.91 10.98 10.27 10.22 9.72 8.61 8.20 7.58 Cash Flow Summary Gross revenue$ millions971 889 892 958 982 974 921 955 949 932 832 TC/RC$ millions(63) (56) (57) (61) (64) (64) (60) (62) (61) (61) (52) Freight$ millions(58) (53) (54) (58) (61) (60) (55) (57) (56) (55) (49) NSR royalty$ millions(3) (3) (3) (3) (3) (3) (3) (3) (3) (3) (3) Operating costs$ millions(453) (448) (477) (478) (481) (450) (448) (426) (377) (359) (332) Federal tax$ millions(14) (21) (24) (23) (29) (31) (31) (27) (34) (41) (43) State tax$ millions(7) (11) (13) (12) (15) (16) (17) (15) (18) (21) (21) WC changes$ millions2 5 (0) (4) (1) 0 3 (10) (8) (5) 2 Cash from operations$ millions374 302 266 318 328 350 310 355 390 388 334 Capital costs$ millions(54) (55) (27) (28) (25) (54) (55) (27) (27) (10) (10) Unlevered free cash flow$ millions321 246 239 289 303 296 255 328 363 378 324 Mason Cash Flow ModelUnitY19Y20Y21Y22Y23Y24Y25Y26Y27Y28Y29Mining Activities Ore mined000 tonnes43,800 10,498 - - - - - - - - - Waste mined000 tonnes2,031 241 - - - - - - - - - Rehandle000 tonnes- 33,302 43,800 43,800 43,800 43,800 43,800 43,800 4,939 - - Pre-strip – Ore mined000 tonnes- - - - - - - - - - - Pre-strip – Waste mined000 tonnes- - - - - - - - - - - Mineral moved000 tonnes45,831 44,041 43,800 43,800 43,800 43,800 43,800 43,800 4,939 - - Strip ratio excl. pre-stripwaste/ore0.05 0.02 - - - - - - - - - Mining rate000 t/day126 29 - - - - - - - - - Unit cost$/t moved1.02 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 - - Milling Activities Ore milled000 tonnes43,800 43,800 43,800 43,800 43,800 43,800 43,800 43,800 4,939 - - Headgrade – Cu%0.282% 0.245% 0.217% 0.202% 0.190% 0.177% 0.161% 0.141% 0.117% - - Headgrade – Mo%0.006% 0.007% 0.006% 0.006% 0.006% 0.006% 0.005% 0.004% 0.003% - - Headgrade – Aug/tonne0.054 0.032 0.026 0.023 0.021 0.019 0.020 0.016 0.012 - - Headgrade – Agg/tonne1.067 0.637 0.510 0.453 0.419 0.379 0.373 0.300 0.249 - - Milling Rate000 t/day120 120 120 120 120 120 120 120 14 - - Unit cost$/t milled4.90 4.70 4.70 4.70 4.70 4.70 4.70 4.70 4.70 - - Concentrates Produced & Sold Copper concentrate000 tonnes370 322 285 265 249 232 212 185 17 - - Contained metal – Cu000 tonnes111 97 86 80 75 70 64 56 5 - - Contained metal – Au000 ounces46 27 22 19 18 16 17 13 1 - - Contained metal – Ag000 ounces901 538 431 383 354 321 315 253 24 - - Payable metal - Cu000 tonnes107 93 83 77 72 67 61 54 5 - - Payable metal – Au000 ounces41 24 20 17 16 15 15 12 1 - - Payable metal – Ag000 ounces811 484 387 345 319 288 283 228 21 - - Moly concentrate000 tonnes3 3 3 3 3 3 2 2 0 - - Contained metal – Mo000 tonnes1 1 1 1 1 1 1 1 0 - - Payable metal – Mo000 tonnes1 1 1 1 1 1 1 1 0 - - Capital Costs Project capital$ millions- - - - - - - - - - - Sustaining capital$ millions10 10 10 10 5 5 5 5 - - - Deferred stripping$ millions- - - - - - - - - - - Total$ millions10 10 10 10 5 5 5 5 - - - Operating Costs Mining$ millions47 22 22 22 22 22 22 22 2 - - Deferred stripping$ millions- - - - - - - - - - - Milling$ millions215 206 206 206 206 206 206 206 23 - - G&A$ millions44 44 35 35 35 35 35 35 4 - - Closure + surety bonds$ millions1 1 1 1 1 1 1 1 41 41 40 Total$ millions306 273 264 264 264 264 264 264 71 41 40 Cost Metrics Cash cost$/lb Cu prod.1.23 1.34 1.47 1.57 1.66 1.77 1.93 2.22 2.78 - - Sustaining cash cost$/lb Cu prod.1.28 1.40 1.54 1.64 1.70 1.82 1.97 2.27 2.79 - - Combined unit cost$/t milled6.99 6.23 6.02 6.02 6.02 6.02 6.02 6.02 6.22 - - Cash Flow Summary Gross revenue$ millions838 714 629 586 552 515 472 410 38 - - TC/RC$ millions(53) (46) (41) (38) (36) (34) (31) (27) (2) - - Freight$ millions(48) (42) (37) (35) (33) (30) (28) (24) (2) - - NSR royalty$ millions(3) (3) (2) (2) (2) (2) (2) (1) (0) - - Operating costs$ millions(306) (273) (264) (264) (264) (264) (264) (264) (71) (41) (40) Federal tax$ millions(37) (43) (34) (26) (22) (20) (17) (13) (8) - - State tax$ millions(19) (20) (17) (13) (12) (10) (9) (7) (4) - - WC changes$ millions(5) 3 4 3 1 2 3 4 (8) (2) - Cash from operations$ millions367 290 239 210 185 158 125 77 (58) (43) (40) Capital costs$ millions(10) (10) (10) (10) (5) (5) (5) (5) - - - Unlevered free cash flow$ millions357 280 229 200 180 153 120 72 (58) (43) (40) Model Assumptions METALUNITPRICE Copper$/lb$3.10 Molybdenum$/lb$10.00 Gold$/oz$1,500.00 Silver$/oz$18.00 METALUNITRECOVERIES Copper%90.00% Molybdenum%50.00% Gold%60.00% Silver%60.00% METALUNITCONC. GRADE Copper%30.00% Molybdenum%50.00% METALUNITPAYABILITY Copper%96.50% Molybdenum%99.00% Gold%90.00% Silver%90.00% Note: a 0.4% net smelter return royalty is payable on minerals extracted from the Mason claims. MATERIALTYPEUNITCHARGECu concentrateTreatment$/dmt$80.00Payable molyRoasting$/lb$1.20Payable copperRefining$/lb$0.08Payable goldRefining$/oz$5.00Payable silverRefining$/oz$0.50 MATERIALTYPEUNITVALUECu concentrateMoisture% H2O8.00%Blended freight$/wmt$119.67Mo concentrateMoisture% H2O4.00%Blended freight$/wmt$72.73 Figure 1: Mason Location MapThe Mason project is located in west-central Nevada, approximately 75 kilometres southeast of Reno and seven kilometres west of the town of Yerington. The area is known as the historic Yerington Mining District due to known historical mining activities.https://www.globenewswire.com/NewsRoom/AttachmentNg/89db298e-d898-4b48-b2b7-1565d3fd4946 Figure 2: Mason Land PackageThrough a combination of patented and unpatented mineral claims on public and private land, the Mason project has a total area of approximately 13,820 hectares, including the land acquired through the Mason Valley acquisition in 2019.https://www.globenewswire.com/NewsRoom/AttachmentNg/dc4575cd-44d2-42fe-ab83-1f44007456c5 Figure 3: Mason Proposed Site LayoutProposed site layout including the location of the Mason open pit mine, the processing plant, waste rock facility and tailings management facility.https://www.globenewswire.com/NewsRoom/AttachmentNg/21526cfc-d5dd-4a51-992a-8a61373cfd48 Figure 4: Mason Valley Historical MinesThe Mason Valley property consists of several past-producing mines with visuals of copper mineralization in the area.https://www.globenewswire.com/NewsRoom/AttachmentNg/81253ee0-79e4-437d-b8a2-d26212189dd1 ________________________i Copper equivalent grade calculated using the following commodity price assumptions: $3.10 per pound copper, $1,500 per ounce gold, $18.00 per ounce silver and $10.00 per pound molybdenum.