Good to see the opening of the Reed Mine.
"...the partners were bought out.....then HB made money hand over fist!
Mining is ever so expensive these days...... "
HUDBAY MINERALS INC.
Management's Discussion and Analysis of
Results of Operations and Financial Condition
For the Three and Six Months Ended
June 30, 2012
Reed Copper Project Development Progressing on Schedule
During the second quarter, our focus for our 70% owned Reed copper project in Manitoba was
preparation of the site for portal development. The project is on schedule and we commenced the trench
excavation in June 2012. We have also completed the site leveling for the mechanical shop, warehouse
office, changehouse and parking lot pads, as well as camp expansions to accommodate the workforce
for the development stage of the project. Materials and equipment from the Trout Lake mine have begun
arriving at site, and we have ordered new mobile equipment and compressors for delivery in the third
quarter of 2012. We also issued tenders for the mechanical shop and warehouse.
We expect the remaining capital spending to occur over the 2012 - 2014 period as follows:
(in $ millions) Q3-Q4
Total future capital spending $66
Total spent in Q1 and Q2 2012 $6
We expect initial production at the Reed copper project by the fourth quarter of 2013 and anticipate to
ramp-up to full production of approximately 1,300 tonnes per day by the first quarter of 2014.