HudBay Minerals Inc. 2010 Annual Report

MANAGEMENT’S DISCUSSION AND ANALYSIS
New York Stock Exchange (“NYSE”) Listing
On October 22, 2010, our common shares commenced trading on the NYSE under the symbol “HBM”. We intend to maintain our
listing on the Toronto Stock Exchange.
Copper Smelter and WPCR
On June 11, 2010, our copper smelter in Flin Flon, Manitoba, ceased operations. Operations at WPCR ceased in July due to the
smelter closure.
Outlook
This outlook includes forward‐looking information about HudBay’s operations and financial expectations that is subject to risks,
uncertainties and assumptions. The outlook and financial targets are for 2011 only. The information provided in this section is
forward‐looking, based on HudBay’s expectations and outlook and shall be effective only as of the date the targets were originally issued
on March 9, 2011. Refer to “Forward‐Looking Information” on page 25. The overall outlook, including targets, and our performance is
generally subject to various risks and uncertainties which may impact future performance and our achievement of these targets.
Copper, gold and silver prices have recovered substantially over the course of 2010 and are currently significantly higher than
average prices in 2009. If these prices and current exchange rates are sustained during 2011 and our production, sales and cost
performance are as expected, our operating financial results are likely to improve substantially over 2010 results. HudBay may
update its outlook depending on changes in metals prices and other factors.
For our sensitivity to metal prices and foreign exchange rates, refer to “Sensitivity Analysis” on page 39.
Material Assumptions
Our 2011 operational and financial performance will be influenced by a number of factors. At the macro‐level, the general
performance of the North American and global economies will influence the demand for our products. The realized prices we
achieve in the commodity markets significantly affect our performance. Our general expectations regarding prices for metals and
foreign exchange rates are included in the “Commodity Markets” and “Sensitivity Analysis” sections of this MD&A.
2011 Domestic Mine and Mill Production (Contained Metal in Concentrate)
2010 actual 2011 forecast
Copper (tonnes) 52,413 40,000–55,000
Zinc (tonnes) 77,314 70,000–90,000
Gold equivalent 1 (oz.) 101,233 95,000–120,000
1
Gold equivalent production includes gold and silver production. Silver converted to gold equivalent at 60:1 ratio.
Contained metal production in concentrate in 2011 is expected to be similar to 2010 as we expect reduced production at Trout
Lake will be offset by a full year of production at Chisel North and higher production and copper grades at the 777 mine.
2010 contained concentrate metal production was consistent with our 2010 outlook.
36 HudBay Minerals Inc. 2010 Annual Report