HudBay Minerals Inc. 2010 Annual Report

INTERVIEW
WITH THE CEO
David Garofalo
President and
Chief Executive Officer
Q: What has impressed you most
about HudBay since joining in
July 2010?
HudBay is a fundamentally sound company that does the basics
of finding, building and operating mines very well. The company
has consistently met its production targets, even during periods
of turmoil within the organization. It generates strong cash flow
and has an exceptional balance sheet, enabling it to grow on a
value-accretive basis. However, what impresses me most are the
people – something you do not fully appreciate until you have
worked with them. We have generations of families working
here. Our people bring a depth of experience and expertise
that few companies can match.
Q: What are the key achievements
of 2010?
One of the most important things we have done is to clarify
our strategy – among ourselves and with the investment
community. After 85 years of discovering and developing
VMS deposits in northern Manitoba, we have recognized
what we do very well, built our strategy around it, and started
communicating it to the market.
By now, people who follow HudBay know that we intend to
grow the company by focusing on VMS and porphyry deposits
in low-risk jurisdictions in the Americas where we can add
value through exploration and development. The market also
appreciates that we have been able to execute on our strategy
since July – by acquiring the Constancia project in Peru, by
expanding our investment portfolio to a total of 14 junior
exploration companies, and by making aggressive exploration
commitments in the Flin Flon Greenstone Belt, Peru, Michigan,
Yukon and Chile.
Q: What was the significance of
the NYSE listing and dividend
introduction?
To broaden the appeal of HudBay stock, we not only needed
a sound strategy for building the business, we also needed
to tap into the deepest pool of capital in the world. By listing
on the New York Stock Exchange and implementing a regular
dividend, we are starting to appeal to a larger group of
investors and helping to increase our overall trading liquidity.
In fact, our representation among U.S. shareholders is already
close to double what it was prior to our listing in October 2010.
4 HudBay Minerals Inc. 2010 Annual Report