6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13A-16 OR 15D-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

For the month of November 2020

Commission File Number: 001-34244

HUDBAY MINERALS INC.
(Translation of registrant’s name into English)

25 York Street, Suite 800
Toronto, Ontario
M5J 2V5, Canada
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F [   ]                    Form 40-F [X]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [   ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [   ]

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes [   ]                     No [X]

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____________________________

EXPLANATORY NOTE

On November 3, 2020, Hudbay Minerals Inc. (“Hudbay”) filed on the Canadian Securities Administrators’ System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com the following documents: (1) Unaudited Condensed Consolidated Interim Financial Statements for the period ended September 30, 2020, (2) Management's Discussion and Analysis for the period ended September 30, 2020, (3) Form 52-109F2 Certification of Interim Filings Full Certificate - CEO, (4) Form 52-109F2 Certification of Interim Filings Full Certificate - CFO, (5) News Release dated November 3, 2020.

Copies of the filings are attached to this Form 6-K and incorporated herein by reference, as follows:

• Exhibit 99.1 — Unaudited Condensed Consolidated Interim Financial Statements for the period ended September 30, 2020

• Exhibit 99.2 — Management's Discussion and Analysis for the period ended September 30, 2020

• Exhibit 99.3 — Form 52-109F2 Certification of Interim Filings Full Certificate - CEO

• Exhibit 99.4 — Form 52-109F2 Certification of Interim Filings Full Certificate - CFO

• Exhibit 99.5 — News Release dated November 3, 2020

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

HUDBAY MINERALS INC.
(registrant)
By:	/s/ Patrick Donnelly
Name:	Patrick Donnelly
Title:	Vice President and General Counsel

Date: November 4, 2020

3

EXHIBIT INDEX

The following exhibits are furnished as part of this Form 6-K:

Exhibit	Description
99.1	Unaudited Condensed Consolidated Interim Financial Statements for the period ended September 30, 2020
99.2	Management's Discussion and Analysis for the period ended September 30, 2020
99.3	Form 52-109F2 Certification of Interim Filings Full Certificate - CEO
99.4	Form 52-109F2 Certification of Interim Filings Full Certificate - CFO
99.5	News Release dated November 3, 2020

4

EX-99.1

Unaudited Condensed Consolidated Interim Financial Statements

(In US dollars)

HUDBAY MINERALS INC.

For the three and nine months ended, September 30, 2020 and 2019

HUDBAY MINERALS INC.

Condensed Consolidated Interim Balance Sheets

(Unaudited and in thousands of US dollars)

			Sep. 30,			Dec. 31,
	Note		2020			2019
Assets
Current assets
Cash and cash equivalents		$	449,014		$	396,146
Trade and other receivables	6		129,019			105,994
Inventories	7		135,228			138,820
Prepaid expenses and other current assets			10,240			12,737
Other financial assets	8		1,729			2,049
Taxes receivable			10,269			7,289
			735,499			663,035
Receivables	6		18,225			19,264
Inventories	7		21,429			19,455
Other financial assets	8		14,378			11,287
Intangibles and other assets	9		21,475			10,411
Property, plant and equipment	10		3,693,940			3,662,559
Deferred tax assets	18b		85,742			75,046
		$	4,590,688		$	4,461,057
Liabilities
Current liabilities
Trade and other payables		$	157,221		$	192,404
Taxes payable			2,823			2,146
Other liabilities	11		45,183			49,411
Other financial liabilities	12		18,625			28,076
Lease liabilities	13		34,910			32,781
Deferred revenue	15		73,296			86,933
			332,058			391,751
Other financial liabilities	12		193,455			39,784
Lease liabilities	13		38,460			49,166
Long-term debt	14		1,175,104			985,255
Deferred revenue	15		477,285			476,823
Provisions	16		323,880			280,850
Pension obligations	17		20,051			29,599
Other employee benefits	17		124,738			116,778
Deferred tax liabilities	18b		221,193			242,928
			2,906,224			2,612,934
Equity
Share capital	19b		1,777,340			1,777,340
Reserves			(32,136	)		(24,250	)
Retained earnings			(60,740	)		95,033
			1,684,464			1,848,123
		$	4,590,688		$	4,461,057
Commitments (note 22)

1

HUDBAY MINERALS INC.

Condensed Consolidated Interim Income Statements

(Unaudited and in thousands of US dollars)

	Note		Three months ended September 30,						Nine Months Ended September 30,
			2020			2019			2020			2019
Revenue	5a	$	316,108		$	291,282		$	770,128		$	912,953
Cost of sales
Mine operating costs			180,832			178,041			502,251			536,435
Depreciation and amortization	5b		95,998			82,286			263,244			250,610
			276,830			260,327			765,495			787,045
Gross profit			39,278			30,955			4,633			125,908
Selling and administrative expenses			10,902			5,177			26,718			30,499
Exploration and evaluation expenses			2,750			7,668			10,715			21,010
Other expenses	5d		4,798			6,570			11,566			47,176
Impairment loss	5e		-			322,249			-			322,249
Results from operating activities			20,828			(310,709	)		(44,366	)		(295,026	)
Net interest expense on long term debt	5f		21,738			16,286			61,102			48,784
Accretion on streaming arrangements	5f		10,785			15,944			42,816			53,827
Change in fair value of financial instruments	5f		(2,750	)		2,072			8,150			212
Other net finance costs	5f		14,999			3,356			23,566			12,560
Net finance expense			44,772			37,658			135,634			115,383
Loss before tax			(23,944	)		(348,367	)		(180,000	)		(410,409	)
Tax expense (recovery)	18a		11			(73,571	)		(28,010	)		(68,054	)
Loss for the period		$	(23,955	)	$	(274,796	)	$	(151,990	)	$	(342,355	)
Loss per share
Basic and diluted		$	(0.09	)	$	(1.05	)	$	(0.58	)	$	(1.31	)
Weighted average number of common shares outstanding:
Basic and diluted	20		261,272,151			261,272,151			261,272,151			261,272,151

2

HUDBAY MINERALS INC.

Condensed Consolidated Interim Statements of Cash Flows

(Unaudited and in thousands of US dollars)

	Note		Three months ended September 30,						Nine months ended September 30,
			2020			2019 (Note 23a)			2020			2019 (Note 23a)
Cash generated from operating activities:
Loss for the period		$	(23,955	)	$	(274,796	)	$	(151,990	)	$	(342,355	)
Tax expense (recovery)	18a		11			(73,571	)		(28,010	)		(68,054	)
Items not affecting cash:
Depreciation and amortization	5b		96,465			82,838			264,552			252,259
Share-based compensation expenses (recoveries)	5c		4,636			(2,904	)		5,521			562
Net interest expense on long term debt	5f		21,738			16,286			61,102			48,784
Accretion on streaming arrangements	5f		10,785			15,944			42,816			53,827
Change in fair value of financial instruments	5f		(2,750	)		2,072			8,150			212
Other net finance costs	5f		14,999			3,356			23,566			12,560
Inventory write-down	7		-			385			2,221			604
Amortization of deferred revenue and variable consideration	5a		(30,156	)		(21,415	)		(53,820	)		(52,225	)
Pension and other employee benefit payments, net of accruals			560			788			4,494			2,534
Write-down of UCM Receivable	5d		-			-			-			25,978
Decommissioning and restoration payments			(7,637	)		-			(13,766	)		-
Asset impairment	5e		-			322,249			-			322,249
Other 1			1,136			3,648			(1,543	)		(448	)
Taxes paid			(1,449	)		(3,676	)		(7,501	)		(18,344	)
Operating cash flow before change in non-cash working capital			84,383			71,204			155,792			238,143
Change in non-cash working capital	23a		(6,448	)		(27,721	)		(37,402	)		(25,953	)
			77,935			43,483			118,390			212,190
Cash used in investing activities:
Acquisition of property, plant and equipment			(144,461	)		(78,147	)		(243,297	)		(170,458	)
Acquisition of subsidiary, net of cash acquired			-			-			-			(44,688	)
Change in restricted cash			-			692			-			3,066
Net interest received			297			1,920			1,777			6,401
			(144,164	)		(75,535	)		(241,520	)		(205,679	)
Cash generated from/(used) in financing activities:
Issuance of senior unsecured notes, net of transaction costs	14a		191,824			-			191,824			-
Premium paid on redemption of notes	14a		(7,252	)		-			(7,252	)		-
Interest paid on long-term debt			(44,142	)		(37,375	)		(81,517	)		(74,750	)
Financing costs			(4,217	)		(10,693	)		(12,394	)		(20,876	)
Lease payments			(9,389	)		(9,010	)		(26,598	)		(23,839	)
Gold prepayment proceeds	12		-			-			115,005			-
Dividends paid	19b		(1,979	)		(1,972	)		(3,783	)		(3,927	)
			124,845			(59,050	)		175,285			(123,392	)
Effect of movement in exchange rates on cash and cash equivalents			(738	)		13			713			(178	)
Net increase (decrease) in cash and cash equivalents			57,878			(91,089	)		52,868			(117,059	)
Cash and cash equivalents, beginning of the period			391,136			489,527			396,146			515,497
Cash and cash equivalents, end of the period		$	449,014		$	398,438		$	449,014		$	398,438
1 Includes disbursements for share based compensation, restructuring, realized foreign exchange gains and losses and Pampacancha delivery obligation payments.
For supplemental information, see note 23.

3

HUDBAY MINERALS INC.

Condensed Consolidated Interim Statements of Comprehensive Loss

(Unaudited and in thousands of US dollars)

		Three months ended September 30,						Nine months ended September 30,
		2020			2019			2020			2019
Loss for the period	$	(23,955	)	$	(274,796	)	$	(151,990	)	$	(342,355	)
Other comprehensive income (loss):
Item that will be reclassified subsequently to profit or loss:
Recognized directly in equity:
Net exchange gain (loss) on translation of foreign currency balances		4,646			(1,891	)		(5,940	)		5,567
		4,646			(1,891	)		(5,940	)		5,567
Items that will not be reclassified subsequently to profit or loss:
Recognized directly in equity:
Gold prepayment revaluation (note 12)		203			-			(277	)		-
Tax effect		(55	)		-			74			-
Remeasurement - actuarial (loss) gain		(1,158	)		5,522			(1,256	)		(5,822	)
Tax effect		110			(101	)		(1,234	)		(816	)
		(900	)		5,421			(2,693	)		(6,638	)
Other comprehensive gain (loss) net of tax, for the period		3,746			3,530			(8,633	)		(1,071	)
Total comprehensive loss for the period	$	(20,209	)	$	(271,266	)	$	(160,623	)	$	(343,426	)

4

HUDBAY MINERALS INC.

Condensed Consolidated Interim Statements of Comprehensive Loss

(Unaudited and in thousands of US dollars)

		Share capital (note 19)		Other capital reserves		Foreign currency translation reserve			Remeasurement reserve			Retained earnings			Total equity
Balance, January 1, 2019	$	1,777,340	$	28,837	$	(11,819	)	$	(58,272	)	$	442,770		$	2,178,856
Loss		-		-		-			-			(342,355	)		(342,355	)
Other comprehensive income (loss)		-		-		5,567			(6,638	)		-			(1,071	)
Total comprehensive income (loss)		-		-		5,567			(6,638	)		(342,355	)		(343,426	)
Dilution of Partner's investor in Rosemont				25,978											25,978
Contributions by and distributions to owners:
Dividends (note 19b)		-		-		-			-			(3,927	)		(3,927	)
Total contributions by and distributions to    owners		-		-		-			-			(3,927	)		(3,927	)
Balance, September 30, 2019	$	1,777,340	$	54,815	$	(6,252	)	$	(64,910	)	$	96,488		$	1,857,481
Loss		-		-		-			-			(1,455	)		(1,455	)
Other comprehensive income (loss)		-		-		3,653			(11,556	)		-			(7,903	)
Total comprehensive income (loss)		-		-		3,653			(11,556	)		(1,455	)		(9,358	)
Contributions by and distributions to owners:
Dividends		-		-		-			-			-			-
Total contributions by and distributions to    owners		-		-		-			-			-			-
Balance, December 31, 2019	$	1,777,340	$	54,815	$	(2,599	)	$	(76,466	)	$	95,033		$	1,848,123

5

HUDBAY MINERALS INC.

Condensed Consolidated Interim Statements of Changes in Equity

(Unaudited and in thousands of US dollars)

		Share capital (note 19)		Other capital reserves		Foreign currency translation reserve			Remeasurement reserve			Retained earnings			Total equity
Balance, January 1, 2020	$	1,777,340	$	54,815	$	(2,599	)	$	(76,466	)	$	95,033		$	1,848,123
Loss		-		-		-			-			(151,990	)		(151,990	)
Other comprehensive loss		-		-		(5,940	)		(2,693	)		-			(8,633	)
Total comprehensive loss		-		-		(5,940	)		(2,693	)		(151,990	)		(160,623	)
Contributions by and distributions to owners:
Dividends (note 19b)		-		-		-			-			(3,783	)		(3,783	)
Stock options (note 5c)		-		747		-			-			-			747
Total contributions by and distributions    to owners		-		747		-			-			(3,783	)		(3,036	)
Balance, September 30, 2020	$	1,777,340	$	55,562	$	(8,539	)	$	(79,159	)	$	(60,740	)	$	1,684,464

6

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

1.Reporting entity

On January 1, 2017, Hudbay Minerals Inc. amalgamated under the Canada Business Corporations Act with its subsidiaries Hudson Bay Mining and Smelting Co., Limited and Hudson Bay Exploration and Development Company Limited to form Hudbay Minerals Inc. ("HMI" or the "Company"). The address of the Company's principal executive office is 25 York Street, Suite 800, Toronto, Ontario. The unaudited condensed consolidated interim financial statements ("interim financial statements") of the Company for the three and nine months ended September 30, 2020 and 2019 represent the financial position and the financial performance of the Company and its subsidiaries (together referred to as "Hudbay").

Wholly owned subsidiaries as at September 30, 2020 include HudBay Marketing & Sales Inc. ("HMS"), HudBay Peru Inc., HudBay Peru S.A.C. ("Hudbay Peru"), HudBay (BVI) Inc., Hudbay Arizona Inc, Rosemont Copper Company ("Rosemont") and Mason Resources (US) Inc ("Mason").

Hudbay is an integrated mining company primarily producing copper concentrate (containing copper, gold and silver), molybdenum concentrate and zinc metal. With assets in North and South America, Hudbay is focused on the discovery, production and marketing of base and precious metals. 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). Hudbay also has equity investments in a number of junior exploration companies. 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.

2.Basis of preparation

(a)   Statement of compliance:

These interim financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting as issued by the International Accounting Standards Board ("IASB") and do not include all of the information required for full annual financial statements by International Financial Reporting Standards ("IFRS").

These interim financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2019 which includes information necessary or useful to understanding the Company's business and financial statement presentation. In particular, the Company's significant accounting policies are presented as note 3 in the audited consolidated financial statements for the year ended December 31, 2019 and have been consistently applied in the preparation of these interim financial statements.

The Board of Directors approved these interim financial statements on November 3, 2020.

7

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

(b)  COVID-19 estimation uncertainty:

At the end of 2019, a novel strain of coronavirus ("COVID-19") was reported in China. The COVID-19 outbreak has developed rapidly in 2020, with a significant number of infections around the world, including regions Hudbay operates in. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. Since then, containment measures have resulted in decreased economic activity, which has adversely affected the broader global economy.

The resulting impacts on global commerce have been and continue to be far-reaching. To date there has been volatility in stock markets, commodities and foreign exchange markets, restrictions on the conduct of business in many jurisdictions and the global movement of people and some goods have become restricted.

The Company has evaluated the potential impacts arising from COVID-19 on all aspects of its business.

(c)   Use of judgements and estimates:

The preparation of the interim financial statements in conformity with IFRS requires Hudbay to make judgements, estimates and assumptions, in applying accounting policies that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim financial statements, as well as reported amounts of revenue and expenses during the reporting period. Actual results may differ from these judgements, estimates and assumptions. The interim financial statements reflect the judgements and estimates outlined by Hudbay in its audited consolidated financial statements for the year ended December 31, 2019.

8

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

3.Significant accounting policies

These interim financial statements reflect the accounting policies applied by Hudbay in its audited consolidated financial statements for the year ended December 31, 2019 and comparative periods.

4.New standards

New standards and interpretations adopted

(a)  Amendment to IFRS 3 - Business Combinations

The amendment to IFRS 3 clarifies the definition of a business and includes an optional concentration test to determine whether an acquired set of activities and assets is a business. This amendment is in effect January 1, 2020 and will be treated prospectively. Hudbay will apply these amendments to future acquisition transactions.

New standards and interpretations not yet adopted

(b)  Amendment to IAS 16 - Property, Plant and Equipment

The amendments to IAS 16 prohibit deducting from the cost of property, plant and equipment the proceeds from selling items produced while bringing that assets to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, a company will recognize such sales proceeds and related cost in profit or loss.

This amendment is in effect January 1, 2022 with early adoption permitted. Hudbay is currently working on determining  the effect of the adoption of this amendment on its consolidated financial statements, specifically to projects expected to achieve commercial production in the coming years. On adoption, an entity applies the amendments retrospectively only to items of property, plant and equipment that were brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the financial statements in which the entity first applies the amendments.

9

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

5.Revenue and expenses

(a)Revenue

Hudbay's revenue by significant product types:

		Three months ended September 30,						Nine months ended September 30,
		2020			2019			2020			2019
Copper	$	169,525		$	177,044		$	396,896		$	584,679
Zinc		64,972			74,971			187,546			212,810
Gold		44,934			28,429			131,703			83,139
Silver		6,945			5,495			17,979			20,808
Molybdenum		5,301			8,984			16,797			26,568
Other		2,168			984			4,023			3,494
		293,845			295,907			754,944			931,498
Non-cash streaming arrangement items 1
Amortization of deferred revenue - gold		8,980			8,122			19,437			24,165
Amortization of deferred revenue - silver		11,694			13,293			27,715			44,355
Amortization of deferred revenue - variable consideration adjustments - prior periods		9,482			-			6,668			(16,295	)
		30,156			21,415			53,820			52,225
Pricing and volume adjustments 2		7,113			(5,819	)		3,529			(8,467	)
		331,114			311,503			812,293			975,256
Treatment and refining charges		(15,006	)		(20,221	)		(42,165	)		(62,303	)
	$	316,108		$	291,282		$	770,128		$	912,953
1 See note 15.
2 Pricing and volume adjustments represent mark-to-market adjustments on initial estimate of provisionally priced sales, realized and unrealized changes to fair value for non-hedge derivative contracts and adjustments to originally invoiced weights and assays.

Consideration from the Company's stream agreement is considered variable (note 15). Gold and silver stream revenue can be subject to cumulative adjustments when the amount of precious metals to be delivered under the contract changes. As a result of changes in the Company's mineral reserve and resource estimate in the first quarter of 2020 and amendments made to the 777 mine plan in the third quarter of 2020, the amortization rate by which deferred revenue is drawn down into income was adjusted and, as required, a current period catch up adjustment is made for all prior period stream revenues since the stream agreement inception date. This variable consideration adjustment for the three and nine months ended September 30, 2020 resulted in increased revenue of $9,482 and $6,668, respectively. This increase in revenue was primarily the result of internal business planning and amendments in the 777 mine plan resulting in mining less of the inferred resource than what was previously planned. The variable consideration adjustment for the nine months ended September 30, 2019 resulted in a reversal of revenue of $16,295.

10

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

(b)Depreciation and amortization

Depreciation of property, plant and equipment and amortization of intangible assets are reflected in the condensed consolidated interim income statements as follows:

		Three months ended September 30,				Nine months ended September 30,
		2020		2019		2020		2019
Cost of sales	$	95,998	$	82,286	$	263,244	$	250,610
Selling and administrative expenses		467		552		1,308		1,649
	$	96,465	$	82,838	$	264,552	$	252,259

(c)Share-based compensation expenses (recoveries)

Share-based compensation expenses (recoveries) are reflected in the condensed consolidated interim income statements as follows:

		Cash-settled										Total share-based compensation expense
		RSUs			DSUs			PSUs		Stock options
Three months ended September 30, 2020
Cost of sales	$	411		$	-		$	-	$	-	$	411
Selling and administrative		1,537			1,649			545		349		4,080
Other expenses		145			-			-		-		145
	$	2,093		$	1,649		$	545	$	349	$	4,636
Nine months ended September 30, 2020
Cost of sales	$	480		$	-		$	-	$	-	$	480
Selling and administrative		1,606			1,714			829		747		4,896
Other expenses		145			-			-		-		145
	$	2,231		$	1,714		$	829	$	747	$	5,521
Three months ended September 30, 2019
Cost of sales	$	(173	)	$	-		$	-	$	-	$	(173	)
Selling and administrative		(1,852	)		(796	)		-		-		(2,648	)
Other expenses		(83	)		-			-		-		(83	)
	$	(2,108	)	$	(796	)	$	-	$	-	$	(2,904	)
Nine months ended September 30, 2019
Cost of sales	$	192		$	-		$	-	$	-	$	192
Selling and administrative		33			200			-		-		233
Other expenses		137			-			-		-		137
	$	362		$	200		$	-	$	-	$	562

During the nine months ended September 30, 2020, the Company granted 1,581,385 stock options (nine months ended September 30, 2019 - nil). For further details on stock options, see note 19c.

11

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

(d)Other expenses

		Three months ended September 30,					Nine months ended September 30,
		2020			2019		2020		2019
Regional costs	$	803		$	807	$	2,583	$	2,748
Write down of UCM receivable		-			-		-		25,978
Pampacancha delivery obligation		-			-		-		7,499
(Gain) loss on disposals		(65	)		-		2,792		-
Closure cost adjustment - non-producing properties		1,936			2,596		2,980		3,032
Allocation of community costs		704			1,657		2,184		1,657
Other		1,420			1,510		1,027		6,262
	$	4,798		$	6,570	$	11,566	$	47,176

During the first quarter of 2019, Hudbay recognized an obligation to deliver additional precious metal credits to Wheaton Precious Metals ("Wheaton") as a result of Hudbay's expectation that mining at the Pampacancha deposit will not begin until after 2020. The obligation is to be paid in four quarterly installments, with the first three payments having been paid in March, June and September 2020.

(e)Impairment

For the third quarter ended September 30, 2020, Hudbay recorded no impairment losses.

During the third quarter ended September 30, 2019, Hudbay recorded impairment losses of $322,249 for non-current assets relating to the Arizona cash generating units ("CGU").

		Arizona
Pre-tax impairment to:
Property, plant & equipment	$	322,249
Tax impact - (recovery)		(80,143	)
After-tax impairment charge	$	242,106

On July 31, 2019 the U.S. District Court of the District of Arizona ("Court") issued a ruling in the lawsuits challenging the U.S. Forest Service's issuance of the Final Record of Decision ("FROD") for the Rosemont project in Arizona. The Court ruled to vacate and remand the FROD thereby delaying the expected start of construction of Rosemont. Hudbay and the U.S. federal government have appealed the Court's decision to the U.S. Ninth Circuit Court of Appeals. However, the Court's ruling and the subsequent impact to the Company's market capitalization gave rise to an indicator of impairment. Following an impairment test conducted as of September 30, 2019, it was determined that the recoverable amount of the Arizona CGU was lower than its carrying value, causing Hudbay to recognize an impairment loss related to these assets.

12

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

(f)Net finance expenses

		Three months ended September 30,						Nine months ended September 30,
		2020			2019			2020			2019
Net interest expense on long-term debt
Interest expense on long-term debt	$	21,738		$	19,584		$	61,102		$	58,674
Interest capitalized		-			(3,298	)		-			(9,890	)
		21,738			16,286			61,102			48,784
Accretion on streaming arrangements (note 15)
Current year additions		15,437			15,944			46,508			47,780
Variable consideration adjustments - prior periods		(4,652	)		-			(3,692	)		6,047
		10,785			15,944			42,816			53,827
Change in fair value of financial assets and liabilities at fair value through profit or loss
Embedded derivatives		(9,147	)		(1,507	)		(5,076	)		(5,214	)
Gold prepayment liability (note 12)		9,163			-			16,735			-
Investments		(2,766	)		3,579			(3,509	)		5,426
		(2,750	)		2,072			8,150			212
Other net finance costs
Net foreign exchange losses (gains)		(1,150	)		(83	)		(4,228	)		1,697
Accretion on community agreements measured at amortized cost		731			289			2,973			883
Unwinding of discounts on provisions		666			1,065			2,791			3,363
Withholding taxes		2,142			1,980			6,172			6,248
Premium paid on redemption of notes (note 14)		7,252			-			7,252			-
Write-down of unamortized transaction costs (note 14)		3,817			-			3,817			-
Other finance expense		1,832			2,067			6,518			7,230
Interest income		(291	)		(1,962	)		(1,729	)		(6,861	)
		14,999			3,356			23,566			12,560
Net finance expense	$	44,772		$	37,658		$	135,634		$	115,383

Until October 1, 2019, interest expense related to certain long-term debt had been capitalized to the Rosemont project. Following the Court ruling to vacate and remand the U.S. Forest Service's issuance of the Final Record of Decision for the Rosemont project during the third quarter of 2019, Hudbay ceased capitalization effective October 1, 2019. The capitalization of this interest expense will resume upon the reinstatement of permits and will continue from that point until commercial production is reached.

Other finance expense relates primarily to fees on Hudbay's revolving credit facilities and capitalized leases.

13

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

6.Trade and other receivables

		Sep. 30, 2020		Dec. 31, 2019
Current
Trade receivables	$	108,827	$	87,332
Statutory receivables		17,261		16,543
Other receivables		2,931		2,119
		129,019		105,994
Non-current
Taxes receivable		16,672		17,669
Other receivables		1,553		1,595
		18,225		19,264
	$	147,244	$	125,258

7.Inventories

		Sep. 30, 2020		Dec. 31, 2019
Current
Stockpile	$	6,929	$	10,396
Work in progress		10,665		14,420
Finished goods		65,218		62,230
Materials and supplies		52,416		51,774
		135,228		138,820
Non-current
Stockpile		16,144		14,626
Materials and supplies		5,285		4,829
		21,429		19,455
	$	156,657	$	158,275

The cost of inventories recognized as an expense, including depreciation, and included in cost of sales amounted to $251,821 and $668,665 for the three and nine months ended September 30, 2020 (three and nine months ended September 30, 2019 - $235,009 and $710,163).

During the nine months ended September 30, 2020, Hudbay recognized an expense of $2,221 in cost of sales related to adjustments of the carrying value of inventories to net realizable value.

During the three and nine months ended September 30, 2019, Hudbay recognized an expense of $385 and $604, respectively in cost of sales related to adjustments of the carrying value of inventories to net realizable value.

14

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

8.Other financial assets

		Sep. 30, 2020		Dec. 31, 2019
Current
Derivative assets	$	1,392	$	1,712
Restricted cash		337		337
		1,729		2,049
Non-current
Investments at fair value through profit or loss		14,378		11,287
	$	16,107	$	13,336

Investments at fair value through profit or loss consist of securities in Canadian metals and mining companies, all of which are publicly traded. The change in investments at fair value through profit or loss is mostly attributed to fluctuations in market price and foreign exchange impact.

9.Intangibles and other assets

Intangibles and other assets of $21,475 (December 31, 2019 - $10,411) includes $16,528 of other assets (December 31, 2019 - $5,384) and $4,947 of intangibles (December 31, 2019 - $5,027).

Other assets represent the carrying value of certain future community costs. The liability remaining for these agreements is recorded in other financial liabilities at amortized cost (note 12).  Amortization of the carrying amount is recorded in the condensed consolidated interim income statements within other expenses (note 5d). The increase in other assets during the nine months ended September 30, 2020 primarily relates to amendments to the original agreements with communities for the Constancia operation which allow Hudbay to extract minerals over the useful life of the Constancia operation.

Intangibles mainly represent computer software costs.

15

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

10.Property, plant and equipment

Sep. 30, 2020		Cost		Accumulated depreciation and amortization			Carrying amount
Exploration and evaluation assets	$	70,073	$	-		$	70,073
Capital works in progress		905,093		-			905,093
Mining properties		2,152,846		(1,051,236	)		1,101,610
Plant and equipment		2,725,312		(1,201,824	)		1,523,488
Plant and equipment-ROU Assets1		220,673		(126,997	)		93,676
	$	6,073,997		(2,380,057	)	$	3,693,940
Dec. 31, 2019		Cost		Accumulated depreciation and amortization			Carrying amount
Exploration and evaluation assets	$	69,903	$	-		$	69,903
Capital works in progress		733,874		-			733,874
Mining properties		2,146,583		(963,530	)		1,183,053
Plant and equipment		2,653,752		(1,069,687	)		1,584,065
Plant and equipment - ROU Assets1		201,972		(110,308	)		91,664
	$	5,806,084	$	(2,143,525	)	$	3,662,559
1 Includes $4,926 of capital works in progress - ROU assets (cost) that relate to the Arizona and Manitoba Business units (December 31, 2019 - $4,481)

For the nine months ended September 30, 2020, the increase in property, plant and equipment (cost) of $267,913 was mainly caused by fixed asset and construction in progress asset additions of $270,297 and increases in decommissioning and restoration assets of $50,807 (producing assets) mostly as a result of lower discount rates, partially offset by the effects of movements in exchange rates of $46,521.

11.Other liabilities

		Sep. 30, 2020		Dec. 31, 2019
Current
Provisions (note 16)	$	28,784	$	33,575
Pension liability		13,059		12,015
Other employee benefits		3,208		2,806
Unearned revenue		132		1,015
	$	45,183	$	49,411

16

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

12.Other financial liabilities

		Sep. 30, 2020		Dec. 31, 2019
Current
Derivative liabilities	$	6,282	$	10,295
Embedded derivatives (note 21c)		2,982		9,074
Other financial liabilities at amortized cost		9,361		8,707
		18,625		28,076
Non-current
Deferred Rosemont acquisition consideration		25,585		24,491
Gold prepayment liability		132,017		-
Other financial liabilities at amortized cost		35,853		15,293
		193,455		39,784
	$	212,080	$	67,860

The derivative liabilities include derivative and hedging transactions. Derivative liabilities are carried at their fair value with changes in fair value recorded to the condensed consolidated interim income statements. The fair value adjustments for hedging type derivatives are recorded in revenue. Fair value adjustments for embedded derivatives are recorded within net finance expense.

On May 7, 2020, the Company entered into an agreement and received $115,005 in exchange for the delivery of 79,954 gold ounces starting January 2022 and ending in December 2023, which were valued at gold forward curve prices averaging $1,682 per ounce at the time of the transaction. The agreement has been assessed as a financial liability that has been designated as fair value through profit or loss within change in fair value of financial instruments, with a component of the fair value related to the fluctuation in the Company's own credit risk being recorded to other comprehensive income. The fair value adjustment recorded in profit or loss and other comprehensive income for the nine months ended September 30, 2020 were losses of $16,735 and $277, respectively.

Other financial liabilities at amortized cost relate to agreements with communities near the Constancia operation which allow Hudbay to extract minerals over the useful life of the Constancia operation, carry out exploration and evaluation activities in the area and provide Hudbay with community support to operate in the region. The increase in other financial liabilities at amortized cost during the nine months ended September 30, 2020 primarily relates to changes in estimated community payments arising from the execution of the Pampacancha surface rights agreement.

17

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

The following table summarizes changes in other financial liabilities at amortized cost:

Balance, January 1, 2019	$	21,361
Net additions		7,369
Disbursements		(6,351	)
Accretion		1,222
Effects of changes in foreign exchange		399
Balance, December 31, 2019	$	24,000
Net additions		110,541
Disbursements		(87,861	)
Accretion		2,973
Effects of changes in foreign exchange		(4,439	)
Balance, September 30, 2020	$	45,214

13.Lease Liability

		Sep. 30, 2020			Dec. 31, 2019
Total minimum lease payments - lease liabilities	$	78,905		$	88,096
Effect of discounting		(5,535	)		(6,149	)
Present value of minimum lease payments		73,370			81,947
Less: current portion		(34,910	)		(32,781	)
	$	38,460		$	49,166
Minimum payments under leases:
Less than 12 months	$	36,538		$	27,557
13 - 36 months		35,619			48,503
37 - 60 months		2,466			7,798
More than 60 months		4,282			4,238
	$	78,905		$	88,096

Hudbay has entered into leases for its Peru, Manitoba and Arizona business units which expire between 2020 and 2043. The interest rates on leases which were capitalized have implicit interest rates between 1.95% to 5.13%, per annum. The range of interest rates utilized for discounting varies depending mostly on the Hudbay entity acting as lessee and duration of the lease. For certain leases, Hudbay has the option to purchase the equipment and vehicles leased at the end of the terms of the leases. Hudbay's obligations under these leases are secured by the lessor's title to the leased assets. The present value of applicable lease payments has been recognized as a ROU asset, which was included as a non-cash addition to property, plant and equipment, and a corresponding amount as a lease liability.

There are no restrictions placed on Hudbay by entering into these leases.

The following outlines expenses recognized within the Company's condensed consolidated interim income statements for the periods ended September 30, 2020, relating to leases for which a recognition exemption was applied.

18

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

		Three months ended September 30,				Nine months ended September 30,
		2020		2019		2020		2019
Short-term leases	$	8,954	$	13,236	$	29,795	$	35,387
Low value leases		45		13		169		82
Variable leases		10,802		13,468		33,168		44,472
Total	$	19,801	$	26,717	$	63,132	$	79,941

Payments made for short term, low value and variable leases would mostly be captured as expenses in the condensed consolidated interim income statements, however, certain amounts may be capitalized to PP&E for the Arizona business unit during its development phase and certain amounts may be reported in inventories given the timing of sales. Variable consideration leases include equipment used for heavy civil works at Constancia.

14.Long-term debt

Long-term debt is comprised of the following:

		Sep. 30, 2020			Dec. 31, 2019
Senior unsecured notes (a)	$	1,179,709		$	991,558
Less: Unamortized transaction costs - revolving credit facilities (b)		(4,605	)		(6,303	)
	$	1,175,104		$	985,255

(a)Senior unsecured notes

Balance, January 1, 2019	$	989,306
Change in fair value of embedded derivative (prepayment option)		1,079
Accretion of transaction costs and premiums		1,173
Balance, December 31, 2019	$	991,558
Addition to Principal, net of $8,176 transaction costs		191,824
Change in fair value of embedded derivative (prepayment option)		(6,871	)
Write-down of unamortized transaction costs		2,315
Accretion of transaction costs and premiums		883
Balance, September 30, 2020	$	1,179,709

On September 23, 2020, Hudbay completed an offering of $600,000 aggregate principal amount of 6.125% senior unsecured notes due April 2029 (the "2029 Notes").

Hudbay used the proceeds of the offering to satisfy and discharge all of its obligations with respect to its then outstanding $400,000 aggregate principal amount of 7.25% senior unsecured notes due 2023 (the "2023 Notes").

19

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

The unamortized transaction costs of $2,315 were expensed upon extinguishment of the 2023 Notes. The early redemption of these notes resulted in a charge of $7,252, which was recorded on the condensed consolidated interim income statement (note 5f).

As at September 30, 2020, $1,200,000 aggregate principal amount of senior notes were outstanding in two series: (i) a series of 7.625% senior notes due 2025 in an aggregate principal amount of $600,000 and (ii) a series of 6.125% senior notes due 2029 in an aggregate principal amount of $600,000.

The senior notes are guaranteed on a senior unsecured basis by substantially all of the Company's subsidiaries, other than HudBay (BVI) Inc. and certain excluded subsidiaries, which include the Company's subsidiaries that own an interest in the Rosemont project and any newly formed or acquired subsidiaries that primarily hold or may develop non-producing mineral assets that are in the pre-construction phase of development. Hudbay's revolving credit facilities are secured against substantially all of the Company's assets, other than those associated with the Arizona business unit.

(b)Unamortized transaction costs - revolving credit facilities

Balance, January 1, 2019	$	8,276
Accretion of transaction costs		(2,342	)
Transaction costs		369
Balance, December 31, 2019	$	6,303
Accretion of transaction costs		(2,376	)
Write-down of unamortized transaction costs		(1,502	)
Transaction costs		2,180
Balance, September 30, 2020	$	4,605

On August 31, 2020, Hudbay completed a restructuring of its two senior secured credit facilities. The total available credit has been reduced from $550,000 to $400,000 and various financial covenants have been amended.

The unamortized transaction costs of $1,502 were expensed upon restructuring of the credit facilities.

As at September 30, 2020, the Peru business unit had $24,795 in letters of credit issued under the Peru revolving credit facility to support its reclamation obligations and the Manitoba business unit had $83,795 in letters of credit issued under the Canada revolving credit facility to support its reclamation and pension obligations. As at September 30, 2020, there were no cash advances under the credit facilities.

Surety bonds

The Arizona business unit had $8,591 in surety bonds and the Peru business unit had $20,000 in surety bonds, issued to support future reclamation and closure obligations. No cash collateral is required to be posted under these surety bonds.

Other letters of credit

The Peru business unit had $45,000 in letters of credit issued with various Peruvian financial institutions. No cash collateral is required to be posted under these letters of credit.

20

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

15. Deferred revenue

On August 8, 2012 and November 4, 2013, Hudbay entered into precious metals stream transactions with Wheaton whereby Hudbay has received aggregate deposit payments of $455,100 against delivery of (i) 100% of payable gold and silver from the 777 mine until the end of 2016, and delivery of 50% of payable gold and 100% of payable silver for the remainder of the 777 mine life; and aggregate deposit payments of $429,900 against the delivery of (ii) 100% of payable silver and 50% of payable gold from the Constancia mine.

In addition to the aggregate deposit payments of $885,000, as gold and silver is delivered under the stream agreements, Hudbay receives cash payments equal to the lesser of (i) the market price and (ii) $400 per ounce (for gold) and $5.90 per ounce (for silver), subject to 1% annual escalation after three years, from the inception of the agreement.

Hudbay recorded the deposits received as deferred revenue and recognizes amounts in revenue as gold and silver are delivered under the stream agreements. Hudbay determines the amortization of deferred revenue to the condensed consolidated interim income statements on a per unit basis using the estimated total number of gold and silver ounces expected to be delivered under the stream agreements over the life of the 777 and Constancia life-of-mine plans. At September 30, 2020, Hudbay revised its estimate of remaining mineralization for the 777 deposit and as such adjusted the drawdown rates for the remainder of the year. For the nine months ended September 30, 2020 the drawdown rates for the 777 stream agreement for gold and silver were $1,155 and $22.07 per ounce, respectively (year ended December 31, 2019 - $1,177 and $22.51 per ounce, respectively). For the nine months ended September 30, 2020 the drawdown rates for the Constancia stream agreement for gold and silver were $976 and $21.52 per ounce, respectively (year ended December 31, 2019 - $948 and $21.77 per ounce, respectively). Hudbay estimates the current portion of deferred revenue based on deliveries anticipated over the next twelve months.

Hudbay has determined that precious metals stream contracts are subject to variable consideration and contain a significant financing component. As such, the Company recognizes a financing charge at each reporting period and will gross up the deferred revenue balance to recognize the significant financing element that is part of these contracts. Hudbay's streaming arrangements are secured against the mining properties and other business unit assets associated with the applicable stream.

Hudbay expects that the remaining performance obligations for the 777 and Constancia streams will be settled by the expiry of their respective stream agreements, which is no earlier than 2036.

As part of the streaming agreement for the 777 mine, Hudbay must repay, with precious metals credits, the legal deposit provided by August 1, 2052, the expiry date of the agreement. If the legal deposit is not fully repaid with precious metals credits from 777 production by the expiry date, a cash payment for the remaining amount will be due at the expiry date of the agreement. Given the mineral reserve and resources of the 777 mine and the current mine plan, there is a possibility that an amount of the legal deposit may not be repaid by means of 777 mine's precious metals credits over its expected remaining mine life. As at September 30, 2020, this prepayment amount does not meet the definition of a financial liability. Hudbay incorporates the possibility of repayment as part of its assessment of variable consideration in recognizing the amount of deferred revenue to recognize in income.

21

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

The following table summarizes changes in deferred revenue:

Balance, January 1, 2019	$	566,078
Amortization of deferred revenue
Liability drawdown		(92,398	)
Variable consideration adjustments - prior periods		16,295
Accretion on streaming arrangements
Current year additions		63,725
Variable consideration adjustments - prior periods		6,047
Effects of changes in foreign exchange		4,009
Balance, December 31, 2019	$	563,756
Amortization of deferred revenue
Liability drawdown		(47,152	)
Variable consideration adjustments - prior periods		(6,668	)
Accretion on streaming arrangements (note 5f)
Current year additions		46,508
Variable consideration adjustments - prior periods		(3,692	)
Effects of changes in foreign exchange		(2,171	)
Balance, September 30, 2020	$	550,581

Consideration from the Company's stream agreement is considered variable. Gold and silver stream revenue can be subject to cumulative adjustments when the number of ounces to be delivered under the contract changes. As a result of changes in the Company's mineral reserve and resource estimate in the first quarter of 2020 and amendments made to the 777 mine plan in the third quarter of 2020, the amortization rate by which deferred revenue is drawn down into income was adjusted and, as required, a current period catch up adjustment is made for all prior period stream revenues since the stream agreement inception date. This variable consideration adjustment resulted in an increase in revenue of $6,668 and reversal of finance expense of $3,692 for the nine months ended September 20, 2020 (December 31, 2019 - revenue reversal of $16,295 and additional finance expense $6,047).

During the nine months ended September 30, 2020, the Company recognized an adjustment to gold and silver revenue and finance costs due to a net increase in the Company's mineral reserve and resources estimates coupled with a change to the 777 mine plan. During the year ended December 31, 2019, and first quarter of 2020, the Company recognized an adjustment to gold and silver revenue and finance costs.

Deferred revenue is reflected in the condensed consolidated interim balance sheets as follows:

		Sep. 30, 2020		Dec. 31, 2019
Current	$	73,296	$	86,933
Non-current		477,285		476,823
	$	550,581	$	563,756

22

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

16.Provisions

Reflected in the condensed consolidated interim balance sheets as follows:

Sep. 30, 2020		Decommissioning, restoration and similar liabilities		Deferred share units		Restricted share units		Performance share units		Other		Total
Current (note 11)	$	21,327	$	4,979	$	2,478	$	-	$	-	$	28,784
Non-current		318,995		-		2,710		831		1,344		323,880
	$	340,322	$	4,979	$	5,188	$	831	$	1,344	$	352,664
Dec. 31, 2019		Decommissioning, restoration and similar liabilities		Deferred share units		Restricted share units		Performance share units		Other		Total
Current (note 11)	$	23,621	$	3,876	$	4,468	$	-	$	1,610	$	33,575
Non-current		278,495		-		1,009		-		1,346		280,850
	$	302,116	$	3,876	$	5,477	$	-	$	2,956	$	314,425

Decommissioning, restoration and similar liabilities are remeasured at each reporting date to reflect changes in discount rates, exchange rates, and timing and extent of cash outflows which can significantly affect the liabilities.

Decommissioning, restoration and similar liabilities have been discounted to their present value at rates ranging from 0.13% to 1.46% per annum (2019 - 1.59% to 2.39%), using pre-tax risk-free interest rates that reflect the estimated maturity of each specific liability.

During the nine months ended September 30, 2020, the decommissioning, restoration and similar liabilities increased by $38,206. This was mainly the result of lower discount rates, compared to December 31, 2019, associated with discounting the provisions, increasing the liabilities by $52,972, which was partially offset by payments of $13,766 and a weaker Canadian dollar impacting the liabilities of the Manitoba segment by $4,183.

23

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

17.Pension and other employee benefits

Pension obligations

Hudbay uses a December 31 measurement date for all of its plans. As at September 30, 2020, the discount rate applied to the most recent actuarial valuation decreased to 2.67% compared to the December 31, 2019 discount rate of 3.08%, reflecting lower corporate bond yields utilized for discounting pension liabilities. The decrease in the discount rate has resulted in an increase in the defined benefit pension obligation which was offset by changes in plan assets.

Other employee benefits

Hudbay sponsors both other long-term employee benefit plans and non-pension post-employment benefits plans and uses a December 31 measurement date. As at September 30, 2020, the discount rate applied to the most recent actuarial valuation decreased to 2.88% compared to the December 31, 2019 discount rate of 3.17%, reflecting lower corporate bond yields utilized for discounting other employee benefit liabilities. The decrease in the discount rate has resulted in an increase in the long-term employee benefit plans and non-pension post-employment benefit plans obligation.

24

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

18.Income and mining taxes

(a)Tax recoveries:

The tax expense (recoveries) is applicable as follows:

		Three months ended September 30,						Nine months ended September 30,
		2020			2019			2020			2019
Current:
Income taxes	$	9		$	6,542		$	709		$	12,198
Mining taxes		2,916			(1,573	)		2,899			4,282
Adjustments in respect of prior years		-			-			(349	)		(642	)
		2,925			4,969			3,259			15,838
Deferred:
Income tax recoveries - origination, revaluation and/or   reversal of temporary differences		(669	)		(81,200	)		(28,580	)		(84,774	)
Mining tax (recoveries) expenses - origination, revaluation   and/or reversal of temporary difference		(2,245	)		2,442			(3,075	)		283
Adjustments in respect of prior years		-			218			386			599
		(2,914	)		(78,540	)		(31,269	)		(83,892	)
	$	11		$	(73,571	)	$	(28,010	)	$	(68,054	)

Adjustments in respect of prior years refers to amounts changing due to the filing of tax returns and assessments from government authorities.

(b)Deferred tax assets and liabilities as represented on the condensed consolidated interim balance sheets:

		Sep. 30, 2020			Dec. 31, 2019
Deferred income tax asset	$	78,060		$	69,950
Deferred mining tax asset		7,682			5,096
		85,742			75,046
Deferred income tax liability		(212,074	)		(233,218	)
Deferred mining tax liability		(9,119	)		(9,710	)
		(221,193	)		(242,928	)
Net deferred tax liability balance, end of period	$	(135,451	)	$	(167,882	)

Hudbay has retroactively changed its presentation of deferred tax assets and liabilities to separate out the Canadian mining tax assets and liabilities, which has the effect of changing the prior reported balances of deferred tax assets and deferred tax liabilities. There is no net impact to cash flows or net deferred tax liabilities.

25

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

(c)Changes in deferred tax assets and liabilities:

		Nine months ended September 30, 2020			Year ended Dec. 31, 2019
Net deferred tax liability balance, beginning of year	$	(167,882	)	$	(308,577	)
Deferred tax recovery		31,269			144,865
OCI transactions		(1,160	)		1,878
Foreign currency translation on the deferred tax liability		2,322			(6,048	)
Net deferred tax liability balance, end of period	$	(135,451	)	$	(167,882	)

19.Share capital

(a)Preference shares:

Authorized: Unlimited preference shares without par value.

Issued and fully paid: Nil.

(b)Common shares:

Authorized: Unlimited common shares without par value.

Issued and fully paid:

	Nine months ended September 30, 2020			Year ended Dec. 31, 2019
	Common shares		Amount	Common shares		Amount
Beginning and end of period	261,272,151	$	1,777,340	261,272,151	$	1,777,340

During the nine months ended September 30, 2020, the Company declared two semi-annual dividends of C$0.01 per share each. The Company paid $1,804 and $1,979 in dividends on March 27, 2020 and September 25, 2020 to shareholders of record as of March 10, 2020 and September 4, 2020.

During the nine months ended September 30, 2019, the Company paid $1,955 and $1,972 in dividends on March 29, 2019 and September 27, 2019 to shareholders of record as of March 8, 2019 and September 6, 2019.

26

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

(c) Equity-settled share-based compensation - stock options:

Hudbay may grant options to employees, officers, directors or consultants of Hudbay or its affiliates to purchase common shares of Hudbay.

During the nine months ended September 30, 2020, the Company granted 1,581,385 stock options (nine months ended September 30, 2019 - nil). The following table presents the weighted average fair value assumptions used in the Black-Scholes valuation of these options:

For options granted during the nine months ended:		Sep. 30, 2020
Weighted average share price at grant date (CAD)	$	3.77
Risk-free rate		1.14%
Expected dividend yield		0.5%
Expected stock price volatility (based on historical volatility)		57.0%
Expected life of option (months)		84
Weighted average per share fair value of stock options granted (CAD)	$	2.02

During the nine months ended September 30, 2020, 12,052 stock options were forfeited, which resulted in 1,569,333 options outstanding as of September 30, 2020. There are no stock options outstanding that are exercisable as at September 30, 2020.

20.Earnings per share

	Three months ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Basic and diluted weighted average common shares outstanding	261,272,151	261,272,151	261,272,151	261,272,151

The determination of the diluted weighted-average number of common shares excludes the impact of 1,574,357 and 1,506,625 weighted-average stock options outstanding that were anti-dilutive for the three and nine months ended September 30, 2020 (three and nine months ended September 30, 2019 - nil).

For periods where Hudbay records a loss, Hudbay calculates diluted loss per share using the basic weighted average number of shares. If the diluted weighted average number of shares were used, the result would be a reduction in the loss, which would be anti-dilutive. For the three and nine months ended September 30, 2020 and 2019, Hudbay calculated diluted loss per share using 261,272,151 common shares.

27

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

21.Financial instruments

(a)Fair value and carrying value of financial instruments:

The following presents the fair value ("FV") and carrying value ("CV") of Hudbay's financial instruments and non-financial derivatives:

		Sep. 30, 2020						Dec. 31, 2019
		FV			CV			FV			CV
Financial assets at amortized cost
Cash and cash equivalents 1	$	449,014		$	449,014		$	396,146		$	396,146
Restricted cash1		337			337			337			337
Fair value through profit or loss
Trade and other receivables1, 2		113,311			113,311			91,046			91,046
Non-hedge derivative assets3		1,392			1,392			1,712			1,712
Prepayment option - embedded derivatives7		9,456			9,456			2,585			2,585
Investments at FVTPL4		14,378			14,378			11,287			11,287
Total financial assets		587,888			587,888			503,113			503,113
Financial liabilities at amortized cost
Trade and other payables1, 2		143,988			143,988			184,604			184,604
Deferred Rosemont acquisition consideration8		25,585			25,585			24,491			24,491
Other financial liabilities5		39,446			45,214			21,338			24,000
Senior unsecured notes6		1,210,488			1,189,165			1,050,126			994,143
Fair value through profit or loss
Embedded derivatives3		2,982			2,982			9,074			9,074
Gold prepayment liability9		132,017			132,017			-			-
Non-hedge derivative liabilities3		6,282			6,282			10,295			10,295
Total financial liabilities		1,560,788			1,545,233			1,299,928			1,246,607
Net financial liability	$	(972,900	)	$	(957,345	)	$	(796,815	)	$	(743,494	)
1 Cash and cash equivalents, restricted cash, trade and other receivables and trade and other payables are recorded at carrying value, which approximates fair value due to their short-term nature and generally negligible credit losses.
2 Excludes tax and other statutory amounts.
3 Derivatives are carried at their fair value, which is determined based on internal valuation models that reflect observable forward market commodity prices, currency exchange rates, and discount factors based on market US dollar interest rates adjusted for credit risk.
4 All investments are carried at their fair value, which is determined using quoted market bid prices in active markets for listed shares.
5 These financial liabilities relate to agreements with communities near the Constancia project in Peru (note 12). Fair values have been determined using a discounted cash flow analysis based on expected cash flows and a credit adjusted discount rate.
6 Fair value of the senior unsecured notes (note 14) has been determined using the quoted market price at the period end.
7 Fair value of the prepayment option embedded derivative related to the long-term debt (note 14) has been determined using a binomial tree/lattice approach based on the Hull-White single factor interest rate term structure model.
8 Discounted value based on a risk adjusted discount rate.
9 The gold prepayment liability (note 12) is designated as fair value through profit or loss under the fair value option.  Gains and losses related to the Company's own credit risk have been recorded at fair value through other comprehensive income. The fair value adjustment recorded in other comprehensive income for the nine months ended September 30, 2020 was a loss of $277.

28

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

Fair value hierarchy

The table below provides an analysis by valuation method of financial instruments that are measured at fair value subsequent to recognition. Levels 1 to 3 are defined based on the degree to which fair value inputs are observable and have a significant effect on the recorded fair value, as follows:

-Level 1: Quoted prices in active markets for identical assets or liabilities;

-Level 2: Valuation techniques use significant observable inputs, either directly or indirectly, or

    valuations are based on quoted prices for similar instruments; and,

-Level 3: Valuation techniques use significant inputs that are not based on observable market

    data.

September 30, 2020		Level 1		Level 2		Level 3		Total
Financial assets measured at fair value
Financial assets at FVTPL:
Non-hedge derivatives	$	-	$	1,392	$	-	$	1,392
Investments at FVTPL		14,378		-		-		14,378
Prepayment option embedded derivative		-		9,456		-		9,456
	$	14,378	$	10,848	$	-	$	25,226
Financial liabilities measured at fair value
Financial liabilities at FVTPL:
Embedded derivatives	$	-	$	2,982	$	-	$	2,982
Non-hedge derivatives		-		6,282		-		6,282
Gold prepayment liability1		-		132,017		-		132,017
	$	-	$	141,281	$	-	$	141,281
1The gold prepayment liability (note 12) is designated as fair value through profit or loss under the fair value option.  Gains and losses related to the Company's own credit risk have been recorded at fair value through other comprehensive income. The fair value adjustment recorded in other comprehensive income for the nine months ended September 30, 2020 was a loss of $277.

December 31, 2019		Level 1		Level 2		Level 3		Total
Financial assets measured at fair value
Financial assets at FVTPL:
Non-hedge derivatives	$	-	$	1,712	$	-	$	1,712
Investments at FVTPL		11,287		-		-		11,287
Prepayment option embedded derivative		-		2,585		-		2,585
	$	11,287	$	4,297	$	-	$	15,584
Financial liabilities measured at fair value
Financial liabilities at FVTPL:
Embedded derivatives	$	-	$	9,074	$	-	$	9,074
Non-hedge derivatives		-		10,295		-		10,295
	$	-	$	19,369	$	-	$	19,369

Hudbay's policy is to recognize transfers into and transfers out of fair value hierarchy levels as of the date of the event or change in circumstances that caused the transfer. During the three and nine months ended September 30, 2020 and 2019 Hudbay did not make any transfers.

29

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

(b)Derivatives and hedging:

Copper fixed for floating swaps

Hudbay enters into copper fixed for floating swaps in order to manage the risk associated with provisional pricing terms in copper concentrate sales agreements. As at September 30, 2020, Hudbay had 57.3 million pounds of net copper swaps outstanding at an effective average price of $2.93/lb and settling across October 2020 to January 2021. As at December 31, 2019, Hudbay had 66.1 million pounds of net copper swaps outstanding at an effective average price of $2.67/lb and settling across January to April 2020. The aggregate fair value of the transactions at September 30, 2020 was a liability of $5,675 (December 31, 2019 was a liability position of $8,362).

Transactions involving derivatives are with large multi-national financial institutions that Hudbay believes to be credit worthy.

Non-hedge derivative zinc contracts

Hudbay enters into future dated fixed price sales contracts with zinc customers and, to ensure that the Company continues to receive a floating or unhedged realized zinc price, Hudbay enters into forward zinc purchase contracts that effectively offset the fixed price sales contracts. At September 30, 2020, Hudbay held contracts for forward zinc purchased of7.7 million pounds (December 31, 2019 - 12.7 million pounds) that related to forward customer sales of zinc. Prices range from $0.87/lb to $1.14/lb (December 31, 2019 - $1.00/lb to $1.15/lb) and settlement dates extend to January 2021. The aggregate fair value of the transactions at September 30, 2020 was a net asset position of $785 (December 31, 2019 - a net liability position of $221).

(c)Embedded derivatives

Changes in fair value of provisionally priced receivables

Hudbay records changes in fair value of provisionally priced receivables related to provisional pricing in concentrate purchase, concentrate sale and certain other sale contracts. Under the terms of these contracts, prices are subject to final adjustment at the end of a future period after title transfers based on quoted market prices during the quotation period specified in the contract. The period between provisional pricing and final pricing is typically up to three months.

Changes in fair value of provisionally priced receivables are presented in trade and other receivables when they relate to sales contracts and in trade and other payables when they relate to purchase contracts. At each reporting date, provisionally priced metals are marked-to-market based on the forward market price for the quotation period stipulated in the contract, with changes in fair value recognized in revenue for sales contracts and in inventory or cost of sales for purchase concentrate contracts. Cash flows related to changes in fair value of provisionally priced receivables are classified in operating activities.

30

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

As at September 30, 2020 and 2019, Hudbay's net position consisted of contracts awaiting final pricing which are as indicated below:

Metal in concentrate		Sales awaiting final pricing		Average YTD price ($/unit)
	Unit	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2020	Dec. 31, 2019
Copper	pounds (in thousands)	64,104	72,977	2.98	2.80
Gold	oz	11,664	16,152	1,519	1,522
Silver	oz	85,782	124,371	16.94	17.86

The aggregate changes in fair value of provisionally priced receivables within the copper and zinc concentrate sales contracts at September 30, 2020, was an asset position of $4,889(December 31, 2019 - an asset position of $10,165).

Prepayment option embedded derivative

The senior unsecured notes (note 14) contain prepayment options, which represent embedded derivatives that require bifurcation from the host contract. The prepayment options are measured at fair value, with changes in the fair value being recognized as change in fair value of financial instruments (note 5f). The fair value of the embedded derivative at September 30, 2020 was an asset of $9,456 (December 31, 2019 - an asset of $2,585).

Pampacancha delivery obligation-embedded derivative

Hudbay has recognized an obligation to deliver additional precious metal credits to Wheaton as a result of the Pampacancha deposit not being mined until after 2020 (note 12). The fair value of the embedded derivative at September 30, 2020 was a liability of $2,982 (December 31, 2019 - a liability of $9,074).

(d)  Other financial liabilities

Gold prepayment liability

The gold prepayment liability (note 12) requires settlement by physical delivery of gold ounces or equivalent gold credits. The fair value of the embedded derivative at September 30, 2020 was a liability of $132,017 (December 31, 2019 - nil).

31

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

22.Commitments and contingencies

Capital commitments

As at September 30, 2020, Hudbay had outstanding capital commitments in Canada of approximately $42,902 of which $37,703 can be terminated, approximately $34,674 in Peru, all of which can be terminated, and approximately $179,782 in Arizona, primarily related to the Rosemont project, of which approximately $89,194 can be terminated by Hudbay.

23.Supplementary cash flow information

(a)Change in non-cash working capital:

		Three months ended September 30,						Nine months ended September 30,
		2020			2019			2020			2019
Change in:
Trade and other receivables	$	(22,251	)	$	(31,590	)	$	(27,986	)	$	(2,611	)
Other financial assets/liabilities		(2,508	)		1,181			(3,661	)		223
Inventories		8,320			(7,083	)		521			(25,308	)
Prepaid expenses		(40	)		4,818			2,322			(368	)
Trade and other payables		11,510			788			(10,817	)		(3,241	)
Provisions and other liabilities		(1,479	)		4,165			2,219			5,352
	$	(6,448	)	$	(27,721	)	$	(37,402	)	$	(25,953	)

Hudbay has retroactively changed its presentation of changes in taxes payable/receivable in the statements of cash flows to report all changes in taxes payable/receivable within the operating cash flow before changes in non-cash working capital. There is no net impact to cash flows from operating activities. All comparative periods have been revised.

32

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

(b)Non-cash transactions:

During the nine months ended September 30, 2020 and 2019, Hudbay entered into the following non-cash investing and financing activities which are not reflected in the consolidated statements of cash flows:

-Remeasurement of Hudbay's decommissioning and restoration liabilities for the nine months ended September 30, 2020 led to a net increase in related property, plant and equipment assets of $50,807 (nine months ended September 30, 2019 - increase of $42,849) related to lower discount rates associated with remeasurement of the liabilities.

-Property, plant and equipment included $17,420 (nine months ended September 30, 2019 - $19,751) of capital additions related to the recognition of ROU assets.

-Immediately prior to purchasing United Copper & Moly LLC's ("UCM") remaining interest in the Rosemont project, Hudbay agreed to release UCM from repayment obligations under a Rosemont project loan in exchange for an increase in equity in Rosemont. As a result, the loan receivable balance of $25,978 was written off. Hudbay recognized the loss on write-off of the loan receivable in the income statement (refer to Note 5d). In addition, in order to recognize previously unfunded contributions to the Rosemont Project due from UCM, Hudbay recognized an increase to other capital reserves, a component of shareholder's equity.

33

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

24.Segmented information

Corporate and other activities include the Company's exploration activities in Chile, Canada and the State of Nevada. These exploration entities are not individually significant, as they do not meet the minimum quantitative thresholds for standalone segment disclosure. Corporate and other activities are not considered a segment and are included as a reconciliation to total consolidated results.

Three months ended September 30, 2020
		Manitoba		Peru		Arizona			Corporate and other activities			Total
Revenue from external customers	$	164,719	$	151,389	$	-		$	-		$	316,108
Cost of sales
Mine operating costs		90,460		90,372		-			-			180,832
Depreciation and amortization		42,977		53,021		-			-			95,998
Gross profit		31,282		7,996		-			-			39,278
Selling and administrative expenses		-		-		-			10,902			10,902
Exploration and evaluation		719		1,984		-			47			2,750
Other expense		2,060		1,377		1,104			257			4,798
Results from operating activities	$	28,503	$	4,635	$	(1,104	)	$	(11,206	)	$	20,828
Net interest expense on long term debt												21,738
Accretion on streaming arrangements												10,785
Change in fair value of financial instruments												(2,750	)
Other net finance costs												14,999
Loss before tax												(23,944	)
Tax expense												11
Loss for the period											$	(23,955	)

34

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

Three months ended September 30, 2019
		Manitoba			Peru		Arizona			Corporate and other activities			Total
Revenue from external customers	$	132,981		$	158,301	$	-		$	-		$	291,282
Cost of sales
Mine operating costs		96,854			81,187		-			-			178,041
Depreciation and amortization		35,050			47,236		-			-			82,286
Gross profit		1,077			29,878		-			-			30,955
Selling and administrative expenses		-			-		-			5,177			5,177
Exploration and evaluation		5,209			1,133		-			1,326			7,668
Other expense (income)		4,131			2,210		572			(343	)		6,570
Asset Impairment		-			-		322,249			-			322,249
Results from operating activities	$	(8,263	)	$	26,535	$	(322,821	)	$	(6,160	)	$	(310,709	)
Net interest expense on long term debt													16,286
Accretion on streaming arrangements													15,944
Change in fair value of financial instruments													2,072
Other net finance costs													3,356
Loss before tax													(348,367	)
Tax recovery													(73,571	)
Loss for the period												$	(274,796	)

Nine Months Ended September 30, 2020
		Manitoba		Peru			Arizona			Corporate and other activities			Total
Revenue from external customers	$	443,832	$	326,296		$	-		$	-		$	770,128
Cost of sales
Mine operating costs		283,541		218,710			-			-			502,251
Depreciation and amortization		129,830		133,414			-			-			263,244
Gross profit (loss)		30,461		(25,828	)		-			-			4,633
Selling and administrative expenses		-		-			-			26,718			26,718
Exploration and evaluation		5,713		4,700			-			302			10,715
Other expense		4,735		4,356			1,262			1,213			11,566
Results from operating activities	$	20,013	$	(34,884	)	$	(1,262	)	$	(28,233	)	$	(44,366	)
Net interest expense on long term debt													61,102
Accretion on streaming arrangements													42,816
Change in fair value of financial instruments													8,150
Other net finance costs													23,566
Loss before tax													(180,000	)
Tax recovery													(28,010	)
Loss for the period												$	(151,990	)

35

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

Nine Months Ended September 30, 2019
		Manitoba			Peru		Arizona			Corporate and other activities			Total
Revenue from external customers	$	392,674		$	520,279	$	-		$	-		$	912,953
Cost of sales
Mine operating costs		282,402			254,033		-			-			536,435
Depreciation and amortization		98,422			152,188		-			-			250,610
Gross profit		11,850			114,058		-			-			125,908
Selling and administrative expenses		-			-		-			30,499			30,499
Exploration and evaluation		13,174			3,680		-			4,156			21,010
Other expenses (income)		6,862			11,847		28,526			(59	)		47,176
Asset impairment		-			-		322,249			-			322,249
Results from operating activities	$	(8,186	)	$	98,531	$	(350,775	)	$	(34,596	)	$	(295,026	)
Net interest expense on long term debt													48,784
Accretion on streaming arrangements													53,827
Change in fair value of financial instruments													212
Other net finance costs													12,560
Loss before tax													(410,409	)
Tax recovery													(68,054	)
Loss for the period												$	(342,355	)

September 30, 2020
		Manitoba		Peru		Arizona		Corporate and other activities		Total
Total assets	$	784,047	$	2,522,230	$	709,610	$	574,801	$	4,590,688
Total liabilities		551,271		931,808		77,103		1,346,042		2,906,224
Property, plant and equipment1		670,979		2,288,828		702,302		31,831		3,693,940
1 Included in Corporate and other activities are $27,290 of property, plant and equipment that is located in Nevada.

December 31, 2019
		Manitoba		Peru		Arizona		Corporate and other activities		Total
Total assets	$	779,896	$	2,556,895	$	700,799	$	423,467	$	4,461,057
Total liabilities		556,267		926,642		78,988		1,051,037		2,612,934
Property, plant and equipment1		684,679		2,253,404		691,538		32,938		3,662,559
1 Included in Corporate and other activities are $27,273 of property, plant and equipment that is located in Nevada.

36

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

(in thousands of US dollars, except where otherwise noted)

For the three and nine months ended September 30, 2020 and 2019

25.Events after the reporting period

777 Operations Update

Production at the 777 mine was temporarily suspended due to an incident that occurred on October 9th during routine maintenance of the hoist rope and skip.  Underground mining activity has resumed at 777 with limited production from the mine's ramp access. Fourth quarter production and sales volumes will be impacted, and the Company is implementing production mitigation plans. 

37

EX-99.2

Management's Discussion and Analysis of

Results of Operations and Financial Condition

For the three and nine months ended

September 30, 2020

November 3, 2020

TABLE OF CONTENTS	Page
Introduction	1
Our Business	1
Summary	2
Key Financial Results	5
Key Production Results	6
Recent Developments	7
Constancia Operations Review	12
Manitoba Operations Review	16
Financial Review	24
Liquidity and Capital Resources	34
Trend Analysis and Quarterly Review	40
Non-IFRS Financial Performance Measures	42
Accounting Changes and Critical Estimates	57
Changes in Internal Control over Financial Reporting	58
Notes to Reader	58
Summary of Results	61

INTRODUCTION

This Management's Discussion and Analysis ("MD&A") dated November 3, 2020 is intended to supplement Hudbay Minerals Inc.'s unaudited condensed consolidated interim financial statements and related notes for the three and nine months ended September 30, 2020 and 2019 (the "consolidated interim financial statements"). The consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), including International Accounting Standard 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB").

References to "Hudbay", the "Company", "we", "us", "our" or similar terms refer to Hudbay Minerals Inc. and its direct and indirect subsidiaries as at September 30, 2020.

Readers should be aware that:

-This MD&A contains certain "forward-looking statements" and "forward-looking information" (collectively, "forward-looking information") that are subject to risk factors set out in a cautionary note contained in our MD&A.

-This MD&A includes an updated discussion of the risks associated with the COVID-19 pandemic and its effect on our operations, financial condition, projects and prospects, and supplements the discussion of these risks in our most recent Annual Information Form ("AIF").

-This MD&A has been prepared in accordance with the requirements of the securities laws in effect in Canada, which may differ materially from the requirements of United States securities laws applicable to US issuers.

-We use a number of non-IFRS financial performance measures in our MD&A.

-The technical and scientific information in this MD&A has been approved by qualified persons based on a variety of assumptions and estimates.

For a discussion of each of the above matters, readers are urged to review the "Notes to Reader" discussion beginning on page 57 of this MD&A and to carefully review the risks associated with the COVID-19 pandemic that are discussed throughout this MD&A.

Additional information regarding Hudbay, including the risks related to our business and those that are reasonably likely to affect our financial statements in the future, is contained in our continuous disclosure materials, including our most recent AIF, consolidated interim financial statements and Management Information Circular available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

All amounts are in US dollars unless otherwise noted.

OUR BUSINESS

We are a diversified mining company primarily producing copper concentrate (containing copper, gold, and silver) and zinc metal. Directly and through our subsidiaries, we own 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). Our growth strategy is focused on the exploration, development, operation and optimization of properties we already control, as well as other mineral assets we may acquire that fit our strategic criteria. Our vision is to be a responsible, top-tier operator of long-life, low-cost mines in the Americas. We are governed by the Canada Business Corporations Act and our shares are listed under the symbol "HBM" on the Toronto Stock Exchange, New York Stock Exchange and Bolsa de Valores de Lima.

1

SUMMARY

Third Quarter Operating and Financial Results

-Delivered a solid operating quarter with steady production and cost performance from the Manitoba and Peru operations, including an increase in copper production over the first two quarters of 2020 and strong gold production driven by increased gold grades at Lalor.

-Third quarter net loss was $24.0 million or $0.09 per share. Third quarter adjusted net loss¹ per share was $0.10 and adjusted EBITDA¹ was $96.1 million.

-Operating cash flow before change in non-cash working capital increased to $84.4 million in the third quarter of 2020, from $71.2 million in the same quarter of 2019, due to higher realized copper and precious metals prices and higher gold sales volumes, partially offset by lower sales volumes of copper and zinc.

-Cash and cash equivalents increased during the third quarter to $449.0 million as at September 30, 2020 as a result of the receipt of $191.8 million, net of transaction costs, from the refinancing of our 2023 notes and cash generated from operations, partially offset by capital investments in the New Britannia refurbishment project and our Peru business.

On Track to Achieve Annual Guidance

-Owing to the performance from the Manitoba operations during the first three quarters of 2020, and the steady operations at Constancia since our eight-week suspension earlier this year, we continue to expect to meet all production, consolidated sustaining capital expenditures and unit cost guidance for 2020, despite ongoing COVID-19 operating challenges.

-Fourth quarter 2020 production and sales volumes in Manitoba will be impacted by the production interruption at the 777 mine. With the implementation of production mitigation plans, we continue to expect to achieve full year guidance for Manitoba.

Executing on Growth Initiatives

-The New Britannia gold mill refurbishment project is ahead of schedule and within budget, with detailed engineering approximately 99% complete and construction activities approximately 45% complete. Commissioning of the gold plant is expected in mid-2021, three months earlier than originally planned.

-Early mining of the gold zone at Lalor is well-underway with underground development in the gold rich lenses advancing ahead of schedule in preparation for the mid-2021 ramp-up of New Britannia. The New Britannia gold mill is expected to increase average annual gold production from Lalor to over 150,000 ounces commencing in 2022.

-Successfully advanced individual land-user agreements at Pampacancha with 79% of the land turned over to Hudbay as of September 30, 2020 (as compared to approximately 33% as of June 30, 2020).

-Constancia North follow-up drilling continues to intersect porphyry and skarn mineralization north of the Constancia pit, including one intersection of 78.6 metres grading 1.39% copper, 305 grams per tonne molybdenum, 0.43 grams per tonne gold and 16.0 grams per tonne silver.

-Completed offering of $600.0 million of 6.125% senior notes due 2029 and redeemed all of our outstanding $400.0 million of 7.250% senior notes due 2023.

Summary of Third Quarter Results

Cash generated from operating activities in the third quarter of 2020 increased to $77.9 million compared to $43.5 million in the same quarter of 2019. Operating cash flow before change in non-cash working capital was $84.4 million during the third quarter of 2020, reflecting an increase of $13.2 million compared to the same period of 2019. The increase in operating cash flow is primarily the result of higher realized copper and precious metals prices and higher gold sales volume, partially offset by lower sales volumes of copper and zinc.

Copper-equivalent production in the third quarter of 2020 decreased by 18% compared to the same period in 2019 primarily as a result of lower copper grades at Constancia, in line with the mine plan, and lower ore production at Constancia due to a scheduled plant maintenance shutdown. However, copper-equivalent production in Manitoba increased by 3% in the third quarter over the same quarter in 2019 primarily due to a 14% increase in gold production from increased gold head grades and sustained throughput improvements at the Stall mill.

2

Net loss and loss per share in the third quarter of 2020 were $24.0 million and $0.09, respectively, compared to a net loss and loss per share of $274.8 million and $1.05, respectively, in the third quarter of 2019. The prior period loss was mainly caused by an after-tax impairment charge of $242.1 million recorded in our investment in the Rosemont project. During the third quarter of 2020, we recorded a non-cash adjustment on our streaming revenues due to an amendment to the 777 mine plan leading to fewer inferred resources expected to be mined than originally planned as the mine nears its expected closure in 2022. The increased deferred revenue drawdown rate, which is recalculated back to the inception of the stream, resulted in a positive pre-tax non-cash earnings impact of approximately $14.1 million. This was partially offset by $7.3 million in costs primarily relating to the call premium paid to redeem all of our outstanding $400.0 million of 7.25% senior unsecured notes due 2023 (the "Redeemed Notes") and a $3.8 million write-down of unamortized transaction costs related to the Redeemed Notes and our revolving credit facilities, which  were restructured during the quarter.

Adjusted net loss¹ and adjusted EBITDA¹ in the third quarter of 2020 were $25.4 million, or $0.10 per share, and $96.1 million, respectively. This compares to an adjusted net loss and adjusted EBITDA of $23.3 million, or $0.09 per share, and $76.2 million, respectively, in the same period of 2019. The increase in adjusted EBITDA in the third quarter of 2020 was primarily due to higher realized copper and precious metals prices and higher gold sales volume, partially offset by lower sales volumes of copper and zinc.

In the third quarter of 2020, consolidated cash cost per pound of copper produced, net of by-product credits¹, was $0.65, compared to $0.71 in the same period last year. The overall decrease in this measure was a result of increased by-product credit revenues mainly driven by a significant increase in Manitoba's precious metal revenue compared to the same period in 2019, which was partially offset by a decline in copper production at Constancia due to lower grades and a planned August plant maintenance shutdown. Incorporating sustaining capital, capitalized exploration, royalties, selling, administrative and regional costs, consolidated all-in sustaining cash cost per pound of copper produced, net of by-product credits¹, in the third quarter of 2020 was $2.25, which increased from $1.69 in the same period last year, primarily as a result of higher sustaining capital expenditures and lower copper production at Constancia as mentioned above.

3

*Reflects Constancia temporary suspension of operations in April and May.

¹ Adjusted net loss and adjusted net loss per share, adjusted EBITDA, cash cost, all-in sustaining cash cost per pound of copper produced, net of by-product credits, and net debt are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A.

4

KEY FINANCIAL RESULTS

Financial Condition	Sep. 30, 2020	Dec. 31, 2019
(in $ thousands)
Cash and cash equivalents	449,014	396,146
Total long-term debt	1,175,104	985,255
Net debt1	726,090	589,109
Working capital	403,441	271,284
Total assets	4,590,688	4,461,057
Equity	1,684,464	1,848,123
1 Net debt is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, please see discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A.

Financial Performance	Three months ended						Nine months ended
(in $ thousands, except per share amounts)	Sep. 30, 2020			Sep. 30, 2019			Sep. 30, 2020			Sep. 30, 2019
Revenue	$	316,108		$	291,282		$	770,128		$	912,953
Cost of sales	276,830			260,327			765,495			787,045
Loss before tax	(23,944		)	(348,367		)	(180,000		)	(410,409		)
Loss	(23,955		)	(274,796		)	(151,990		)	(342,355		)
Basic and diluted loss per share	(0.09		)	(1.05		)	(0.58		)	(1.31		)
Adjusted loss per share1	(0.10		)	(0.09		)	(0.40		)	(0.09		)
Operating cash flow before change in non-cash working capital2	84.4			71.2			155.8			238.1
Adjusted EBITDA1,2	96.1			76.2			200.1			276.2
1 Adjusted loss per share and adjusted EBITDA are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A.
2 In millions.

5

KEY PRODUCTION RESULTS

		Three months ended				Three months ended
		Sep. 30, 2020				Sep. 30, 2019
		Peru	Manitoba		Total	Peru	Manitoba		Total
Contained metal in concentrate produced 1
Copper	tonnes	20,803	4,592		25,395	31,091	5,331		36,422
Gold	oz	3,333	25,944		29,277	5,565	22,754		28,319
Silver	oz	430,208	241,477		671,685	686,258	237,933		924,191
Zinc	tonnes	-	30,570		30,570	-	28,639		28,639
Molybdenum	tonnes	392	-		392	262	-		262
Payable metal sold
Copper	tonnes	21,654	4,249		25,903	25,314	4,602		29,916
Gold	oz	3,753	26,852		30,605	3,858	21,630		25,488
Silver	oz	433,595	271,900		705,495	529,139	227,157		756,296
Zinc 2	tonnes	-	26,520		26,520	-	29,140		29,140
Molybdenum	tonnes	313	-		313	334	-		334
Cash cost 3	$/lb	1.54	(3.41	)	0.65	1.06	(1.31	)	0.71
Sustaining cash cost 3	$/lb	2.29	0.83			1.53	2.15
All-in sustaining cash cost3	$/lb				2.25				1.69

		Nine months ended				Nine months ended
		Sep. 30, 2020				Sep. 30, 2019
		Peru	Manitoba		Total	Peru	Manitoba		Total
Contained metal in concentrate produced 1
Copper	tonnes	51,596	16,459		68,055	87,166	17,591		104,757
Gold	oz	8,705	83,540		92,245	14,716	67,264		81,980
Silver	oz	1,145,197	874,997		2,020,194	1,872,995	782,198		2,655,193
Zinc	tonnes	-	92,287		92,287	-	88,514		88,514
Molybdenum	tonnes	870	-		870	900	-		900
Payable metal sold
Copper	tonnes	49,924	16,002		65,926	77,754	17,050		94,804
Gold	oz	7,689	80,081		87,770	14,132	64,523		78,655
Silver	oz	1,037,705	785,497		1,823,202	1,785,657	757,846		2,543,503
Zinc 2	tonnes	-	80,916		80,916	-	76,318		76,318
Molybdenum	tonnes	864	-		864	987	-		987
Cash cost 3	$/lb	1.45	(1.75	)	0.67	1.10	(0.57	)	0.82
Sustaining cash cost 3	$/lb	2.05	1.51			1.48	2.13
All-in sustaining cash cost3	$/lb				2.13				1.73
1 Metal reported in concentrate is prior to deductions associated with smelter contract terms.
2 Includes refined zinc metal sold.
3 Cash cost, sustaining cash cost and all-in sustaining cash cost per pound of copper produced, net of by-product credits are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A.

6

RECENT DEVELOPMENTS

COVID-19 Business Update

Amidst the COVID-19 pandemic, our business response plan continued to be executed throughout the quarter, as we adapt to this fluid environment. We remain focused on the health and safety of our workforce, their families, and the communities in which we operate. We closely monitor the evolution of the pandemic in each of our regions and are continuously reviewing and adapting our procedures based on the latest local situation. Peru currently ranks in the top fifteen countries worldwide in terms of the total number of infections. Arequipa and Cusco, where 80% of our Constancia workforce resides, continue to see a high COVID-19 case count. The province of Manitoba has seen a recent increase in COVID-19 cases, including a growing number of cases in northern Manitoba.

Each of our business units has developed site-specific measures intended to identify and limit COVID-19 exposure and transmission and maintain a safe environment for our workers and our communities. Site-specific measures include testing of incoming workers prior to their travel to site, pre-screening protocols, quarantine periods for incoming workers, workplace physical distancing protocols, and adjustment of work rotation schedules. These measures continue to evolve as the status of the pandemic changes in each of our operating regions and our measures are adapted to the regional health authorities' latest restrictions and guidelines.

We believe the most important way we can support the communities in which we operate is to manage safe operations, which provide income for local employees, businesses, and communities. While we have had members of our workforce contract COVID-19, to date we have not identified cases of transmission within our workplaces, or transmission between rotational employees and local communities. We believe that our diligence in screening and testing, and workplace protocols has been effective in achieving our objective of being a safe employer and neighbour. In addition to our efforts to maintain safe operations, we have been supporting public health efforts and providing COVID-19 relief funding, supplies and services to our neighbouring communities.

777 Operations Update

Production at the 777 mine was temporarily suspended due to an incident that occurred on October 9th during routine maintenance of the hoist rope and skip. The hoist rope detached from the skip, causing the skip to fall to the bottom of the shaft. All underground personnel were safely evacuated from the mine using the secondary ramp access.

A preliminary video inspection of the mine shaft indicates that damage is limited to the headframe and the bottom of the shaft in the skip compartment. It does not appear that the cage compartments or the ore loading area were damaged, and the structural integrity of the shaft does not appear to have been compromised by the incident. A full inspection of the shaft and skip compartment will require an in-person inspection, which is underway.

Underground mining activity has resumed at 777 with limited production from the mine's ramp access. If it is confirmed there is no further damage beyond what has been identified to date, it is expected that the 777 shaft could resume full production in December at a repair cost that is not expected to exceed $5.0 million.

While fourth quarter production and sales volumes will be impacted, we are implementing production mitigation plans. Based on the preliminary video inspection and mitigation plans, we continue to expect the Manitoba business unit to achieve its full year production and unit cost guidance for 2020.

Lalor Mine and the New Britannia Mill Refurbishment Update

The New Britannia refurbishment project is ahead of schedule and on budget. Overall project progress is approximately 64% complete, which includes the completion of 99% of detailed engineering, 98% of project procurement and 45% of construction. Commissioning of the gold plant is expected in mid-2021, three months earlier than planned. Construction of the new copper flotation building continues to advance as planned and is on track to have the external structure fully enclosed before winter. Construction of the pipeline between the New Britannia and Stall mills also continues as planned.

7

As previously disclosed, we have identified the potential to produce gold from the New Britannia mill earlier in 2021 than originally expected. The refurbishment activities at the gold plant are ahead of schedule and commissioning of the gold plant is now expected in mid-2021, followed by ramp-up and first production in the third quarter of 2021. Copper flotation building construction activities continue to be on track for completion in August 2021, with commissioning and ramp-up expected during the second half of 2021. While the copper flotation building is being constructed, we plan to install modular flotation cells at the gold plant to optimize copper recoveries as we start the early processing of gold and copper-gold ores. The impact of this early gold production from the New Britannia mill continues to be evaluated and will be reflected in our annual production guidance update in early 2021.

We continue with the early mining of the gold zone at Lalor as part of stope sequencing in preparation for the start of the New Britannia gold mill. Once the New Britannia mill is ramped-up, average annual gold production from Lalor is expected to increase to over 150,000 ounces commencing in 2022 at cash costs and sustaining cash costs, net of by-product credits, of approximately $480 and $655 per ounce, respectively, during the first eight years of the gold plant's operation.

Pampacancha Update

We completed the Pampacancha surface rights agreement with the local community of Chilloroya in February 2020. Since that time, we have made significant progress on completing the Pampacancha individual land-user agreements and as of September 30, 2020, approximately 79% of the land has been vacated and turned over to Hudbay (as compared to approximately one third as of June 30, 2020). During the first nine months of 2020, we accrued approximately $95.9 million in growth spending in Peru relating to obligations under the local community surface rights agreement and the individual land-user agreements. As previously disclosed, our initial growth capital guidance for Peru of $70.0 million did not include the cost of the individual land user agreements due to the ongoing nature of the negotiations and, as indicated by accrued expenditures to date, full year growth capital spending for Peru will exceed that initial guidance once all the land user agreements are concluded. As stated in our second quarter results, the Consulta Previa consultation process has been impacted by the Peruvian government declared state of emergency, and as a result, the company expects a Pampacancha production start date of early 2021.

Constancia Regional Exploration

Constancia North Drilling

We have recently completed a follow-up drill program at Constancia North to continue to test a possible extension of copper porphyry and high-grade skarn mineralization occurring within 300 metres of the northern edge of the current Constancia pit. The drill program was a follow-up to the drill intersections announced on March 30, 2020 and continued to intersect both skarn and porphyry mineralization as shown in the table below. Most of the drill holes intersected mineralization located along a southeast-northwest trending regional fault. The results will be evaluated and integrated into the annual mineral reserve and resource estimate update for Constancia at the end of the first quarter of 2021.

8

Hole ID1	From	To	Intercept	Estimated True Thickness1	Cu2	Mo2	Au2,3	Ag2	Mineralization Type
	(m)	(m)	(m)	(m)	(%)	(g/t)	(g/t)	(g/t)
CO-19-306	368.0	408.6	40.6	39.3	0.52	42.4	0.79	17.9	Porphyry
CO-19-307 (top)	42.0	64.0	22.0	20.5	0.19	26.1	0.03	3.5	Porphyry
CO-19-307 (bottom)	400.0	408.0	8.0	7.3	0.60	10.8	0.08	6.9	Porphyry
CO-19-308	35.0	57.0	22.0	21.3	0.24	23.7	0.07	2.0	Porphyry
CO-19-309	70.0	92.3	22.3	21.0	0.27	9.0	0.19	9.7	Porphyry
CO-19-310	263.0	361.0	98.0	91.9	1.10	27.9	0.08	5.9	Skarn
CO-19-311	90.3	118.0	27.7	23.6	0.54	4.3	0.45	11.8	Porphyry
CO-20-313	116.5	125.0	8.5	7.6	0.63	4.5	1.04	11.5	Porphyry
CO-20-314	7.3	100.0	92.7	89.4	0.16	89.9	0.02	1.2	Porphyry
CO-20-315	19.0	87.9	68.9	67.1	0.30	99.2	0.02	3.9	Porphyry
CO-20-316 (top)	136.0	187.0	51.0	48.0	0.22	363.7	0.02	2.4	Skarn
CO-20-316 (bottom)	208.1	291.7	83.6	78.6	1.39	305.0	0.43	16.0	Skarn
CO-20-319	193.0	252.0	59.0	58.7	0.21	52.2	0.35	9.9	Skarn
CO-20-320 (top)	19.3	103.9	84.6	79.7	0.19	39.0	0.03	2.8	Skarn
CO-20-320 (bottom)	143.5	231.0	87.5	81.8	0.29	30.5	0.03	2.9	Skarn
CO-20-321 (top)	118.0	151.0	33.0	30.9	0.21	84.3	0.02	2.6	Skarn
CO-20-321 (bottom)	181.0	234.0	53.0	49.5	0.61	42.9	0.05	7.4	Skarn
CO-20-322 (top)	0.0	65.0	65.0	62.9	0.25	171.9	0.02	1.8	Porphyry
CO-20-322 (bottom)	99.0	197.0	98.0	94.1	0.31	103.9	0.03	6.1	Porphyry
CO-20-324	4.0	175.6	171.6	165.1	0.29	61.8	0.03	2.9	Porphyry
CO-20-325	0.0	15.0	15.0	14.5	0.80	38.2	0.09	4.3	Skarn
CO-20-326	0.0	16.3	16.3	15.9	0.85	24.9	0.10	4.8	Skarn
CO-07-1094	305.0	348.0	43.0	37.2	1.54	59.7	0.23	9.1	Skarn
CO-08-2154 (top)	20.1	59.8	39.7	37.2	0.24	4.5	0.24	12.6	Porphyry
CO-08-2154 (bottom)	217.3	346.0	128.7	123.3	0.82	37.0	0.05	13.6	Skarn

¹ True width estimates are based on the current knowledge and interpretation of skarn mineralization geometry.

² Specific gravity results are pending - assay results are length weighted.

³ Gold values capped at 10 g/t.

⁴ Historical drill results from 2007 and 2008.

9

Hole ID	From (m)			To (m)			Azimuth at Intercept	Dip at Intercept	Core Size
	Easting	Northing	Elevation	Easting	Northing	Elevation
CO-19-306	200,773	8,400,165	3,924	200,763	8,400,163	3,885	261	-76	HQ
CO-19-307 (top)	200,841	8,400,370	4,236	200,835	8,400,364	4,215	228	-69	HQ
CO-19-307 (bottom)	200,733	8,400,290	3,904	200,730	8,400,288	3,897	236	-67	HQ
CO-19-308	200,849	8,400,385	4,241	200,845	8,400,389	4,220	316	-75	HQ
CO-19-309	200,657	8,400,579	4,218	200,661	8,400,573	4,197	150	-70	HQ
CO-19-310	200,767	8,400,674	4,086	200,783	8,400,644	3,994	153	-70	HQ
CO-19-311	200,620	8,400,635	4,227	200,630	8,400,624	4,203	138	-58	HQ
CO-20-313	200,608	8,400,525	4,164	200,611	8,400,523	4,157	124	-64	HQ
CO-20-314	200,811	8,400,101	4,255	200,833	8,400,100	4,173	92	-75	HQ
CO-20-315	200,883	8,400,328	4,259	200,873	8,400,316	4,192	219	-77	HQ
CO-20-316 (top)	200,879	8,400,146	4,152	200,885	8,400,130	4,104	159	-70	HQ
CO-20-316 (bottom)	200,888	8,400,123	4,084	200,897	8,400,096	4,006	161	-70	HQ
CO-20-319	200,847	8,400,179	4,088	200,842	8,400,176	4,029	236	-85	HQ
CO-20-320 (top)	200,911	8,400,092	4,270	200,923	8,400,066	4,190	155	-70	HQ
CO-20-320 (bottom)	200,928	8,400,054	4,153	200,940	8,400,025	4,071	158	-69	HQ
CO-20-321 (top)	200,908	8,400,110	4,176	200,912	8,400,099	4,145	158	-69	HQ
CO-20-321 (bottom)	200,916	8,400,089	4,117	200,923	8,400,071	4,067	158	-69	HQ
CO-20-322 (top)	200,961	8,400,108	4,290	200,952	8,400,122	4,227	326	-75	HQ
CO-20-322 (bottom)	200,947	8,400,129	4,194	200,931	8,400,151	4,100	325	-74	HQ
CO-20-324	200,944	8,400,144	4,291	200,913	8,400,179	4,126	319	-74	HQ
CO-20-325	200,981	8,400,065	4,275	200,979	8,400,069	4,260	335	-75	HQ
CO-20-326	200,981	8,400,065	4,275	200,982	8,400,061	4,259	170	-78	HQ
CO-07-1094	200,762	8,400,618	4,055	200,777	8,400,602	4,018	135	-60	HQ
CO-08-215 (top)	200,891	8,400,237	4,260	200,877	8,400,237	4,222	271	-70	HQ
CO-08-215 (bottom)	200,827	8,400,238	4,073	200,790	8,400,237	3,950	268	-73	HQ

Other Regional Exploration

Our patient and consistent approach to community negotiations has proven successful, demonstrating our strong relationships with the neighbouring communities near Constancia and positioning us well to gain access to other regional growth targets in Peru. After reaching an exploration agreement with the Quehuincha community in early 2019 and subsequently completing the Consulta Previa process, we have commenced site preparation work and expect to start our drill program on the Quehuincha North high-grade skarn target in November.

Rosemont Update

The appeal of the unprecedented Rosemont court decision continues to advance. After Hudbay and the U.S. government filed their respective initial briefs in June 2020 with the U.S. Court of Appeals for the Ninth Circuit in relation to the U.S. District Court for the District of Arizona's decision in July 2019, the plaintiffs filed their briefs in September. Hudbay and the U.S. government expect to file their final briefs in November. A final decision in the appeal process is expected in late 2021.

In October 2020, Hudbay commenced a drilling program on its wholly owned private land located in a historic mining district, called Helvetia, near its Rosemont project in Arizona. The focus of the program is two-fold: to complete condemnation drilling in the areas planned for power and water lines for Rosemont, and to test the Helvetia copper district for future exploration potential. We will provide further updates as appropriate.

Senior Unsecured Notes Refinancing

On September 23, 2020, we completed the offering of $600.0 million aggregate principal amount of 6.125% senior notes due April 2029 (the "New Notes"). The New Notes are governed by an indenture, dated as of September 23, 2020, among the Company, the subsidiaries of the Company party thereto as guarantors and U.S. Bank National Association, as trustee.

10

The proceeds from this offering were primarily used to redeem all $400.0 million of our outstanding 7.250% Redeemed Notes, including the payment of accrued and unpaid interest, a call premium of $7.3 million, and transaction costs associated with the New Notes.

11

CONSTANCIA OPERATIONS REVIEW

		Three months ended		Nine months ended		Guidance
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Annual
						2020 1
Ore mined 2	tonnes	8,455,668	8,413,367	18,216,166	25,259,306
Copper	%	0.31	0.44	0.33	0.44
Gold	g/tonne	0.03	0.05	0.03	0.04
Silver	g/tonne	2.55	3.93	2.81	3.72
Molybdenum	%	0.02	0.02	0.02	0.01
Ore milled	tonnes	7,480,655	8,240,344	18,555,604	23,913,145
Copper	%	0.33	0.44	0.34	0.43
Gold	g/tonne	0.03	0.04	0.03	0.04
Silver	g/tonne	2.68	3.76	2.93	3.57
Molybdenum	%	0.02	0.02	0.02	0.02
Copper concentrate	tonnes	91,496	135,052	226,843	373,571
Concentrate grade	% Cu	22.74	23.02	22.75	23.33
Copper recovery	%	83.3	86.0	82.1	85.7
Gold recovery	%	51.6	48.3	48.7	47.5
Silver recovery	%	66.7	68.9	65.6	68.3
Molybdenum recovery	%	30.4	20.2	29.7	25.1
Combined unit operating costs3,4	$/tonne	9.85	8.63	9.16	9.28	8.30 - 10.00
1 Updated Peru guidance issued August 11, 2020.
2 Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled.
3 Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.
4 Combined unit costs is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A.

The Constancia team has demonstrated strong operating performance in an environment of strict COVID-19 measures and controls. We work collaboratively with the health authorities to ensure our workforce and partners adhere to our COVID-19 protocols while continuing to operate safely and efficiently.

Ore milled at our Constancia mine during the third quarter of 2020 was 9% lower compared to the same period in 2019 due to a deferred plant maintenance shutdown in August which typically occurs in the second and fourth quarters, as previously disclosed, as well as lower throughput caused by increased ore hardness. Milled gold, silver and copper grades in the third quarter were approximately 25%, 29% and 25% lower, respectively, than the same period in 2019 in line with the mine plan. Copper recoveries in the third quarter of 2020 decreased by 3% compared to the same period in 2019 due to the decrease in milled grade and higher contaminants in the current mining phase of the pit.

Combined mine, mill and G&A unit operating costs in the third quarter of 2020 were 14% higher than the same period in 2019, primarily due to fewer tonnes of ore milled as a result of the plant maintenance in August, which also led to increased operating costs. Unit operating costs in the quarter were within the guidance range for 2020. 

Year-to-date combined unit operating costs were generally in line with the same period in 2019, as lower production caused by an eight-week suspension of Constancia mine operations was offset by a corresponding decrease in mine, mill and general and administration costs. We expect cost guidance to be met for the full year 2020.

12

Contained metal in concentrate produced		Three months ended		Nine months ended		Guidance
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Annual
						2020 1
Copper	tonnes	20,803	31,091	51,596	87,166	65,000 - 75,000
Gold	oz	3,333	5,565	8,705	14,716
Silver	oz	430,208	686,258	1,145,197	1,872,995
Molybdenum	tonnes	392	262	870	900	1,100- 1,300
Precious metals2	oz	8,167	15,369	21,573	41,473	25,000 - 35,000
1 Updated Peru guidance issued August 11, 2020.
2 Precious metals production includes gold and silver production on a gold-equivalent basis. For 2019, silver is converted to gold at a ratio of 70:1. For 2020, silver is converted to gold at a ratio of 89:1.

In the third quarter of 2020, production of copper, gold and silver were 33%, 40%, and 37% lower, respectively, than the same period in 2019 due to lower grades in line with the mine plan and reduced production caused by the August plant maintenance shutdown. Year-to-date 2020 production of copper, gold and silver were 41%, 41%, and 39% lower, respectively, compared to the same period of 2019, due to the same reasons as the third quarter variances as well as the suspension of Constancia operations in the second quarter.

Molybdenum production in the third quarter of 2020 was higher than the same period in 2019 due to higher recovery and slightly higher grade. Year-to-date molybdenum production is in line with the same period in 2019.

We expect production of all metals and unit operating costs at Constancia to be in line with the revised full year guidance for 2020 that was released with our second quarter results.

*Reflects Constancia temporary suspension of operations in April and May.

13

Peru Cash Cost and Sustaining Cash Cost

		Three months ended		Nine months ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Cash cost per pound of copper produced, net of by-product credits1	$/lb	1.54	1.06	1.45	1.10
Sustaining cash cost per pound of copper produced, net of by-product credits1	$/lb	2.29	1.53	2.05	1.48
1 Cash cost and sustaining cash costs per pound of copper produced, net of by-product credits, are not recognized under IFRS. For more detail on these non-IFRS financial performance measures, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

Cash cost per pound of copper produced, net of by-product credits, for the three and nine months ended September 30, 2020 were $1.54 and $1.45, respectively. Cash cost increased 45% and 32%, respectively, compared to the same periods in 2019. The overall increase is primarily due to lower copper production caused by lower grades and increasing ore hardness as we progress through the mine plan and lower by-product credits.

Sustaining cash cost per pound of copper produced, net of by-product credits increased by 50% compared to the third quarter of 2019, mainly due to the same factors noted above, affecting cash costs as well as accelerated sustaining capital spending following a full ramp up of operations to normal levels in early July 2020 at Constancia. Sustaining cash cost increased 39% on a year-to-date basis, primarily due to the same factors noted above, offset by lower sustaining capital spending due to a curtailment of activity during the eight-week shutdown at Constancia in the second quarter of 2020.

14

Metal Sold

		Three months ended		Nine months ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Payable metal in concentrate
Copper	tonnes	21,654	25,314	49,924	77,754
Gold	oz	3,753	3,858	7,689	14,132
Silver	oz	433,595	529,139	1,037,705	1,785,657
Molybdenum	tonnes	313	334	864	987

Quantities of payable metal sold for the three and nine months ended September 30, 2020 were lower than the same period in 2019 primarily for the same reasons that affected contained metal production.

15

MANITOBA OPERATIONS REVIEW

Mines

		Three months ended		Nine months ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Lalor
Ore	tonnes	357,213	346,456	1,186,139	1,146,640
Copper	%	0.66	0.68	0.71	0.73
Zinc	%	5.98	6.16	5.81	6.41
Gold	g/tonne	2.28	2.21	2.40	2.00
Silver	g/tonne	21.23	25.56	25.45	24.54
777
Ore	tonnes	264,905	273,319	826,720	840,440
Copper	%	0.98	1.33	1.30	1.44
Zinc	%	3.95	3.01	4.06	3.19
Gold	g/tonne	2.01	1.63	1.91	1.64
Silver	g/tonne	24.25	15.42	24.62	18.72
Total Mines
Ore	tonnes	622,118	619,775	2,012,859	1,987,080
Copper	%	0.80	0.97	0.95	1.03
Zinc	%	5.11	4.77	5.09	5.05
Gold	g/tonne	2.17	1.95	2.20	1.85
Silver	g/tonne	22.52	21.09	25.11	22.08

Unit Operating Costs1,2		Three months ended		Nine months ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Mines
Lalor	C$/tonne	97.38	102.16	95.63	105.96
777	C$/tonne	80.84	80.78	78.50	77.95
Total Mines	C$/tonne	90.34	92.74	88.60	94.11
1 Reflects costs per tonne of ore mined.
2 Unit costs is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A.

16

The Manitoba business unit had solid operating performance across the mines, mills and zinc plant during the third quarter. In the face of the ongoing COVID-19 pandemic, we have maintained the controls that were developed in the early part of the year and our health and safety committees have continued to work collaboratively with local health units with a focus on keeping our employees and communities safe. 

Operational performance during the third quarter at both Lalor and 777 was strong, with ore production generally in line with the same period in 2019 and grades at both mines remaining in line with the mine plan. At Lalor, we completed a two-week planned maintenance program, on schedule and achieved a third quarter production rate averaging 4,600 tonnes per day outside of the maintenance period. The 777 mine maintained consistent and stable performance during the third quarter as it approaches its planned closure in 2022.

Operational readiness activities in support of the early start-up of New Britannia are on track, including ensuring that a sufficient and consistent volume of gold ore will be available. Underground development at Lalor in gold-rich lenses 25 and 27 is advancing ahead of schedule in preparation for the mid-2021 start-up of New Britannia, which is three months earlier than previously planned. Mining of the first stope in lens 27 was completed in September and the trend of increased precious metal production from Lalor is expected to continue. 

Total unit operating costs for the mines during the third quarter of 2020 decreased by 3% compared to the same period in 2019 mainly due to lower unit costs at Lalor. Year-to-date total unit operating costs for the mines decreased by 6% for the same reason.

17

Processing Facilities

		Three months ended		Nine months ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stall Concentrator
Ore	tonnes	335,739	318,539	1,040,127	979,678
Copper	%	0.68	0.64	0.71	0.71
Zinc	%	6.11	6.22	5.87	6.44
Gold	g/tonne	2.35	2.12	2.44	1.99
Silver	g/tonne	22.08	25.16	25.71	24.64
Copper concentrate	tonnes	10,459	8,928	33,409	29,926
Concentrate grade	% Cu	18.22	19.40	19.04	19.97
Zinc concentrate	tonnes	38,070	35,439	111,467	112,054
Concentrate grade	% Zn	49.99	51.29	50.47	51.38
Copper recovery	%	84.0	84.4	85.8	85.8
Zinc recovery	%	92.7	91.8	92.2	91.2
Gold recovery	%	57.4	54.3	60.3	55.0
Silver recovery	%	57.5	57.4	60.5	59.6
Contained metal in concentrate produced
Copper	tonnes	1,906	1,732	6,362	5,975
Zinc	tonnes	19,030	18,178	56,256	57,570
Precious metals1	oz	16,063	13,910	54,991	41,000
Flin Flon Concentrator
Ore	tonnes	322,156	331,216	979,651	987,477
Copper	%	0.99	1.22	1.21	1.33
Zinc	%	4.07	3.64	4.28	3.67
Gold	g/tonne	1.99	1.74	1.96	1.71
Silver	g/tonne	24.01	17.36	24.63	19.57
Copper concentrate	tonnes	11,116	15,043	43,758	49,868
Concentrate grade	% Cu	24.16	23.92	23.07	23.29
Zinc concentrate	tonnes	22,590	20,482	71,154	60,847
Concentrate grade	% Zn	51.08	51.07	50.64	50.86
Copper recovery	%	83.9	89.1	85.4	88.4
Zinc recovery	%	87.9	86.7	85.9	85.4
Gold recovery	%	55.3	59.1	55.8	60.6
Silver recovery	%	42.0	48.7	45.8	51.5
Contained metal in concentrate produced
Copper	tonnes	2,686	3,599	10,097	11,616
Zinc	tonnes	11,540	10,461	36,031	30,944
Precious metals1	oz	12,594	12,243	38,380	37,438
1 Precious metals production includes gold and silver production on a gold-equivalent basis.  For 2019, silver is converted to gold at a ratio of 70:1. For 2020, silver is converted to gold at a ratio of 89:1.

18

Unit Operating Costs1		Three months ended		Nine months ended		Guidance
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Annual
						2020
Concentrators
Stall	C$/tonne	24.28	26.38	23.58	25.57
Flin Flon	C$/tonne	23.89	22.93	23.19	22.91
Combined mine/mill unit operating costs 2,3
Manitoba	C$/tonne	126	130	129	137	130 - 140
1 Reflects costs per tonne of milled ore.
2 Reflects combined mine, mill and G&A costs per tonne of milled ore.
3 Combined unit costs is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A.

At the Stall concentrator, ore processed during the third quarter of 2020 was 5% higher than the same period in 2019, despite a planned one-week outage on one of the grinding lines for capital upgrades. Year-to-date ore processed at Stall increased by 6% as a result of several continuous improvement initiatives and higher ore availability from the Lalor mine. Although lower than the first half of 2020, the trend of improved gold recoveries has continued compared to the same periods in 2019 due to improved ore characteristics and numerous operational improvement projects implemented at the Stall mill.

Ore processed in the Flin Flon concentrator in the third quarter of 2020 decreased by 3% compared to the same period in 2019 due to less Lalor ore required to be processed in Flin Flon as a result of higher throughput at the Stall mill. Metal recoveries at the Flin Flon concentrator during the third quarter of 2020 decreased slightly compared with the same period in 2019, which was in line with metallurgical models. Year-to-date ore processed at the Flin Flon mill remained largely unchanged from the same period in 2019.

Unit operating costs at Stall decreased by 8% in the third quarter of 2020 compared to the same period in 2019, due to increased throughput, whereas unit operating costs at Flin Flon were 4% higher over the same period because of reduced ore throughput. Manitoba combined mine, mill and G&A unit operating costs in the third quarter of 2020 decreased by 3% compared to the same period in 2019. Year-to-date combined mine, mill and G&A unit operating costs were 6% lower as the mines and mills delivered efficient results. Manitoba combined unit costs are expected to be within the guidance range for the full year 2020.

Manitoba contained metal in concentrate produced1		Three months ended		Nine months ended		Guidance
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Annual
						2020
Copper	tonnes	4,592	5,331	16,459	17,591	18,000 - 22,000
Gold	oz	25,944	22,754	83,540	67,264
Silver	oz	241,477	237,933	874,997	782,198
Zinc	tonnes	30,570	28,639	92,287	88,514	105,000 - 125,000
Precious metals2	oz	28,657	26,153	93,371	78,438	110,000 - 135,000
1 Metal reported in concentrate is prior to deductions associated with smelter terms.
3 Precious metals production includes gold and silver production on a gold-equivalent basis. For 2019, silver is converted to gold at a ratio of 70:1. For 2020, silver is converted to gold at a ratio of 89:1.

In the third quarter of 2020, gold, silver and zinc production was 14%, 1%, and 7% higher, compared to the same period in 2019, due to higher head grades and higher gold and zinc recoveries. Copper production declined by 14% in the third quarter of 2020 due to lower head grades. Year-to-date, gold, silver and zinc production increased by 24%, 12% and 4%, respectively, due to higher throughput and higher gold and silver head grades. Year-to-date copper production decreased by 6% as head grades and recoveries decreased compared to the same period in 2019.

19

Fourth quarter 2020 production and sales volumes in Manitoba will be impacted by the production interruption at the 777 mine. With the implementation of production mitigation plans, we continue to expect to achieve full year guidance for Manitoba.

Zinc Plant

Zinc Production		Three months ended		Nine months ended		Guidance
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Annual
						2020
Zinc Concentrate Treated
Domestic	tonnes	54,993	50,577	179,694	158,600
Refined Metal Produced
Domestic	tonnes	26,818	24,319	82,819	75,524	100,000 - 112,000

Unit Operating Costs		Three months ended		Nine months ended		Guidance
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Annual
						2020
Zinc Plant 1,2	C$/lb	0.48	0.54	0.47	0.50	0.45 - 0.52
1 Zinc unit operating costs include G&A costs.
2 Zinc unit costs is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A.

20

Production of cast zinc in the third quarter of 2020 was 10% higher than the same period in 2019 while operating costs per pound of zinc metal produced were 11% lower over the same period. Year-to-date refined zinc metal production increased by 10% compared to the same period in 2019 due to higher equipment availability coupled with higher concentrate availability.

Full year production of cast zinc and zinc plant unit operating cost are expected to be within guidance ranges for 2020.

21

Manitoba Cash Cost and Sustaining Cash Cost

		Three months ended				Nine months ended
		Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Cost per pound of copper produced
Cash cost per pound of copper produced, net of by-product credits 1	$/lb	(3.41	)	(1.31	)	(1.75	)	(0.57)
Sustaining cash cost per pound of copper produced, net of by-product credits 1	$/lb	0.83		2.15		1.51		2.13
Cost per pound of zinc produced
Cash cost per pound of zinc produced, net of by-product credits 1	$/lb	0.02		0.53		0.14		0.45
Sustaining cash cost per pound of zinc produced, net of by-product credits 1	$/lb	0.66		1.18		0.72		0.98
1 Cash cost and sustaining cash cost per pound of copper & zinc produced, net of by-product credits, are not recognized under IFRS. For more detail on this non-IFRS financial performance measure, please see the discussion under the "Non-IFRS Financial Performance Measures" section of this MD&A.

Cash cost per pound of copper produced, net of by-product credits, in the third quarter of 2020 was negative $3.41. These costs were lower compared to the same period in 2019, primarily as a result of higher by-product credits and lower mining costs, partially offset by lower copper production. Cash cost per pound of copper produced, net of by-product credits, for the first nine months of 2020 were lower compared to the same period, primarily due to the same reasons.

Sustaining cash cost per pound of copper produced, net of by-product credits, in the third quarter of 2020 was $0.83. These costs were lower compared to the same period in 2019, primarily due to the reasons listed above slightly offset by increased sustaining capital expenditures. Sustaining cash cost per pound of copper produced, net of by-product credits, for the first nine months of 2020 were lower compared to the same period in 2019, primarily due to the same reasons.

Cash cost and sustaining cash cost per pound of zinc produced, net of by-product credits, in the third quarter of 2020 were lower than the same period last year as a result of significantly higher by-product credits, lower mining costs and higher zinc production, partially offset by higher sustaining capital expenditures.

Cash cost and sustaining cash cost per pound of zinc produced, net of by-product credits, were lower in the first nine months of 2020 compared to the same period in 2019 due to increased zinc production, significantly higher by-product credits and lower mining costs, partially offset by higher sustaining capital expenditures.

22

23

Metal Sold

		Three months ended		Nine months ended
		Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Payable metal in concentrate
Copper	tonnes	4,249	4,602	16,002	17,050
Gold	oz	26,852	21,630	80,081	64,523
Silver	oz	271,900	227,157	785,497	757,846
Refined zinc	tonnes	26,520	29,140	80,916	76,318

24

FINANCIAL REVIEW

Financial Results

In the third quarter of 2020, we recorded a net loss of $24.0 million compared to a loss of $274.8 million for the same period in 2019, representing a reduction in loss of $250.8 million. Year-to date in 2020, we recorded a loss of $152.0 million compared to a loss of $342.4 million in the same period in 2019, reducing net loss by $190.4 million.

The following table provides further details on these variances:

(in $ millions)	Three months ended September 30, 2020		Nine months ended September 30, 2020
Increase (decrease) in components of profit or loss:
Revenues	24.8		(142.8	)
Cost of sales
Mine operating costs	(2.8	)	34.2
Depreciation and amortization	(13.7	)	(12.6	)
Selling and administrative expenses	(5.7	)	3.8
Exploration and evaluation expenses	4.9		10.3
Other expenses	1.8		35.6
Impairment	322.2		322.2
Net finance expense	(7.1	)	(20.2	)
Tax	(73.6	)	(40.1	)
Reduction in loss for the period	250.8		190.4

Revenue

Revenue for the third quarter of 2020 was $316.1 million, $24.8 million or 9% higher than the same period in 2019, primarily as a result of higher realized copper and precious metals prices and higher gold sales volume as well as a variable consideration adjustment on our Manitoba stream revenue and lower comparative treatment and refining charges. This was partially offset by lower sales volumes of copper and zinc.

Year-to-date revenue in 2020 was $770.1 million, $142.8 million or 16% lower than the same period in 2019, primarily as a result of significantly lower copper sales volumes in Peru as a result of an eight-week suspension of Constancia operations in the second quarter and lower copper grades as well as lower realized base metal prices and silver sales volumes. This was partially offset by higher realized gold prices, a variable consideration adjustment on stream revenue as well as lower comparative treatment and refining charges.

25

(in $ millions)	Three months ended September 30, 2020	Nine months ended September 30, 2020
Metals prices1
Higher (lower) copper prices	20.7	(5.4)
Lower zinc prices	(2.1)	(39.0)
Higher gold prices	13.4	33.6
Higher silver prices	1.8	1.0
Sales volumes
Lower copper sales volumes	(23.0)	(174.7)
(Lower) higher zinc sales volumes	(6.8)	12.9
Higher gold sales volumes	7.5	12.9
Lower silver sales volumes	(1.3)	(18.1)
Other
Change in derivative mark-to-market on zinc	1.4	0.6
Molybdenum and other volume and pricing differences	(1.5)	(9.8)
Variable consideration adjustments	9.5	23.0
Effect of lower treatment and refining charges	5.2	20.2
Increase (decrease) in revenue in 2020 compared to 2019	24.8	(142.8)
1 See discussion below for further information regarding metals prices.

Our revenue by significant product type is summarized below:

	Three months ended			Nine months ended
(in $ millions)	Sep. 30, 2020		Sep. 30, 2019	Sep. 30, 2020		Sep. 30, 2019
Copper	169.5		177.0	396.9		584.7
Zinc	65.0		75.0	187.5		212.8
Gold	44.9		28.4	131.7		83.1
Silver	6.9		5.5	18.0		20.8
Molybdenum	5.3		9.0	16.8		26.6
Other metals	2.2		1.0	4.0		3.5
Revenue from contracts	293.8		295.9	754.9		931.5
Amortization of deferred revenue - gold	9.0		8.1	19.4		24.2
Amortization of deferred revenue - silver	11.7		13.3	27.7		44.4
Amortization of deferred revenue - variable consideration adjustments - prior periods	9.5		-	6.7		(16.3)
Pricing and volume adjustments1	7.1		(5.8)	3.5		(8.5)
Treatment and refining charges	(15.0	)	(20.2)	(42.1	)	(62.3)
Revenue	316.1		291.3	770.1		913.0
1 Pricing and volume adjustments represents mark-to-market adjustments on provisionally prices sales, realized and unrealized changes to fair value for non-hedge derivative contracts and adjustments to originally invoiced weights and assays.

For further detail on variable consideration adjustments, refer to note 15 of our consolidated interim financial statements.

26

Realized sales prices

This measure is intended to enable management and investors to understand the average realized price of metals sold to third parties in each reporting period. The average realized price per unit sold does not have any standardized meaning prescribed by IFRS, is unlikely to be comparable to similar measures presented by other issuers and should not be considered in isolation or a substitute for measures of performance prepared in accordance with IFRS.

For sales of copper, gold and silver we may enter into non-hedge derivatives ("QP hedges") which are intended to manage the provisional pricing risk arising from quotational period terms in concentrate sales agreements. The QP hedges are not removed from the calculation of realized prices. We expect that gains and losses on QP hedges will offset provisional pricing adjustments on concentrate sales contracts.

Our realized prices for the third quarter in 2020 and 2019, respectively, are summarized below:

			Realized prices1 for the		LME YTD 20202	Realized prices1 for the
			Three months ended			Nine months ended
		LME QTD 20202	Sep. 30, 2020	Sep. 30, 2019		Sep. 30, 2020	Sep. 30, 2019
Prices
Copper	$/lb	2.94	2.96	2.60	2.64	2.71	2.74
Zinc3	$/lb	1.06	1.12	1.16	0.97	1.05	1.26
Gold4	$/oz		1,898	1,460		1,803	1,421
Silver4	$/oz		27.86	25.28		25.62	25.08
1 Realized prices exclude refining and treatment charges and are on the sale of finished metal or metal in concentrate. Realized prices include the effect of provisional pricing adjustments on prior period sales.
2 London Metal Exchange average for copper and zinc prices.
3 All sales for the three and nine months ended September 30, 2020 and 2019 were cast zinc metal. Zinc realized prices include premiums paid by customers for delivery of refined zinc metal, but exclude unrealized gains and losses related to non-hedge derivative contracts that are included in zinc revenues.
4 Sales of gold and silver from our 777 and Constancia mines are subject to our precious metals stream agreement with Wheaton Precious Metals, pursuant to which we recognize deferred revenue for precious metals deliveries and also receive cash payments. Stream sales are included within realized prices and their respective deferred revenue and cash payment rates can be found on page 29.

27

The following tables provide a reconciliation of average realized price per unit sold, by metal, to revenues as shown in the consolidated interim financial statements.

Three months ended September 30, 2020
(in $ millions) 1	Copper		Zinc		Gold	Silver	Molybdenum		Other	Total
Revenue per financial statements	169.5		65.0		44.9	6.9	5.3		2.2	293.8
Amortization of deferred revenue	-		-		9.0	11.7	-		-	20.7
Pricing and volume adjustments2	(0.3	)	1.9		4.2	1.0	0.3		-	7.1
By-product credits 3	169.2		66.9		58.1	19.6	5.6		2.2	321.6
Derivative mark-to-market 4	-		(1.4	)	-	-	-		-	(1.4	)
Revenue, excluding mark-to-market on non-QP hedges	169.2		65.5		58.1	19.6	5.6		2.2	320.2
Payable metal in concentrate sold 5	25,903		26,520		30,605	705,495	313		-	-
Realized price 6	6,533		2,472		1,898	27.86	-		-	-
Realized price 7	2.96		1.12		-	-	-		-	-
Nine Months Ended September 30, 2020
(in $ millions) 1	Copper		Zinc		Gold	Silver	Molybdenum		Other	Total
Revenue per financial statements	396.9		187.5		131.7	18.0	16.8		4.0	754.9
Amortization of deferred revenue	-		-		19.4	27.7	-		-	47.1
Pricing and volume adjustments2	(3.5	)	-		7.1	1.0	(1.1	)	-	3.5
By-product credits 3	393.4		187.5		158.2	46.7	15.7		4.0	805.5
Derivative mark-to-market 4	-		(0.9	)	-	-	-		-	(0.9	)
Revenue, excluding mark-to-market on non-QP hedges	393.4		186.6		158.2	46.7	15.7		4.0	804.6
Payable metal in concentrate sold 5	65,926		80,916		87,770	1,823,202	864		-	-
Realized price 6	5,967		2,306		1,803	25.62	-		-	-
Realized price 7	2.71		1.05		-	-	-		-	-
1 Average realized price per unit sold may not calculate based on amounts presented in this table due to rounding.
2 Pricing and volume adjustments represents mark-to-market adjustments on provisionally priced sales, realized and unrealized changes to fair value for non-hedge derivative contracts and adjustments to originally invoiced weights and assays.
3 By-product credits subtotal is used in the calculated of cash cost per pound of copper and zinc produced, net of by-product credits. Cash cost per pound of copper and zinc produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A.
4 Derivative mark-to-market excludes mark-to-market on QP hedges.
5 Copper and zinc shown in metric tonnes and gold and silver shown in ounces.
6 Realized price for copper, zinc and molybdenum in $/metric tonne and realized price for gold and silver in $/oz.
7 Realized price for copper, zinc and molybdenum in $/lb.

28

Three months ended September 30, 2019
(in $ millions) 1	Copper		Zinc		Gold	Silver		Molybdenum		Other	Total
Revenue per financial statements	177.0		75.0		28.4	5.5		9.0		1.0	295.9
Amortization of deferred revenue	-		-		8.1	13.3		-		-	21.4
Pricing and volume adjustments2	(5.5	)	(0.6	)	0.7	0.3		(0.7	)	-	(5.8	)
By-product credits 3	171.5		74.4		37.2	19.1		8.3		1.0	311.5
Derivative mark-to-market 4	-		-		-	-		-		-	-
Revenue, excluding mark-to-market on non-QP hedges	171.5		74.4		37.2	19.1		8.3		1.0	311.5
Payable metal in concentrate sold 5	29,916		29,140		25,488	756,296		334		-	-
Realized price 6	5,735		2,551		1,460	25.28		-		-	-
Realized price 7	2.60		1.16		-	-		-		-	-
Nine months ended September 30, 2019
(in $ millions) 1	Copper		Zinc		Gold	Silver		Molybdenum		Other	Total
Revenue per financial statements	584.7		212.8		83.1	20.8		26.6		3.5	931.5
Amortization of deferred revenue	-		-		24.2	44.4		-		-	68.6
Pricing and volume adjustments2	(11.2	)	0.2		4.4	(1.4	)	(0.5	)	-	(8.5	)
By-product credits 3	573.5		213.0		111.7	63.8		26.1		3.5	991.6
Derivative mark-to-market4	-		(0.3	)	-	-		-		-	(0.3	)
Revenue, excluding mark-to-market on non-QP hedges	573.5		212.7		111.7	63.8		26.1		3.5	991.3
Payable metal in concentrate sold 5	94,804		76,318		78,655	2,543,503		987		-	-
Realized price 6	6,049		2,788		1,421	25.08		-		-	-
Realized price 7	2.74		1.26		-	-		-		-	-
1 Average realized price per unit sold may not calculate based on amounts presented in this table due to rounding.
2 Pricing and volume adjustments represents mark-to-market adjustments on provisionally priced sales, realized and unrealized changes to fair value for non-hedge derivative contracts and adjustments to originally invoiced weights and assays.
3 By-product credits subtotal is used in the calculated of cash cost per pound of copper and zinc produced, net of by-product credits. Cash cost per pound of copper and zinc produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A.
4 Derivative mark-to-market excludes mark-to-market on QP hedges.
5 Copper and zinc shown in metric tonnes and gold and silver shown in ounces.
6 Realized price for copper, zinc and molybdenum in $/metric tonne and realized price for gold and silver in $/oz.
7 Realized price for copper, zinc and molybdenum in $/lb.

The price, quantity and mix of metals sold, affect our revenue, operating cash flow and profit. Revenue from metals sales can vary from quarter to quarter due to production levels, shipping volumes and transfer of risk and title to customers.

29

Stream Sales

The following table shows stream sales included within realized prices and their respective deferred revenue and cash payment rates:

		Three months ended		Nine months ended
		Sep. 30, 2020		Sep. 30, 2020
		Manitoba	Peru	Manitoba	Peru
Gold	oz	5,845	2,107	13,067	4,451
Silver	oz	121,042	415,069	262,484	1,018,687
Gold deferred revenue drawdown rate1,2	$/oz	1,185	976	1,155	976
Gold cash rate3	$/oz	423	408	421	405
Total gold stream realized price	$/oz	1,608	1,384	1,576	1,381
Silver deferred revenue drawdown rate1,2	$/oz	22.81	21.52	22.07	21.52
Silver cash rate3	$/oz	6.24	6.02	6.21	5.98
Total silver stream realized price	$/oz	29.05	27.54	28.28	27.50
		Three months ended		Nine months ended
		Sep. 30, 2019		Sep. 30, 2019
		Manitoba	Peru	Manitoba	Peru
Gold	oz	4,672	2,737	13,580	8,647
Silver	oz	85,881	521,360	293,981	1,733,812
Gold deferred revenue drawdown rate1,2	$/oz	1,183	948	1,176	948
Gold cash rate 3	$/oz	419	404	417	401
Total gold stream realized price	$/oz	1,602	1,352	1,593	1,349
Silver deferred revenue drawdown rate1,2	$/oz	22.63	21.77	22.48	21.77
Silver cash rate 3	$/oz	6.18	5.96	6.15	5.92
Total silver stream realized price	$/oz	28.81	27.73	28.63	27.69
1Subsequent to the variable consideration adjustment recorded on August 1, 2020 the deferred revenue amortization is recorded in Manitoba at C$1,589/oz and C$30.63/oz for gold and silver (for the three and nine months ended September 30, 2019 - C$1,589/oz and C$30.40/oz for gold and silver), respectively, and converted to US dollars at the exchange rate in effect at the time of revenue recognition.
2 Deferred revenue drawdown rates for gold and silver do not include variable consideration adjustments.
3 The gold and silver cash rate for Manitoba increased by 1% from $400/oz and $5.90/oz effective August 1, 2015. Subsequently every year, on August 1, the cash rate will increase by 1% compounded. The weighted average cash rate is disclosed. The gold and silver cash rate for Peru increased by 1% from $400/oz and $5.90/oz effective July 1, 2019. Subsequently every year, on July 1, the cash rate will increase by 1% compounded. The weighted average cash rate is disclosed.

30

Cost of Sales

Our detailed cost of sales is summarized as follows:

(in thousands)	Three months ended				Nine months ended
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020	Sep. 30, 2019
Peru
Mining	18,220		18,274		45,757	63,884
Milling	42,836		38,064		94,877	116,053
Changes in product inventory	4,824		(5,075	)	2,666	(10,723	)
Depreciation and amortization	53,021		47,236		133,414	152,188
G&A	12,627		14,763		28,852	41,748
Overhead costs related to suspension of activities (cash)	-		-		15,810	-
Inventory adjustments	-		385		2,221	604
Freight, royalties and other charges	11,865		14,776		28,527	42,467
Total Peru cost of sales	143,393		128,423		352,124	406,221
Manitoba
Mining	42,224		43,525		131,711	140,637
Milling	11,901		12,118		34,910	35,873
Zinc plant	17,504		18,552		53,063	52,795
Changes in product inventory	(2,595	)	3,317		25	(7,680	)
Depreciation and amortization	42,977		35,050		129,830	98,422
G&A	12,231		11,552		37,439	35,619
Freight, royalties and other charges	9,195		7,790		26,393	25,158
Total Manitoba cost of sales	133,437		131,904		413,371	380,824
Cost of sales	276,830		260,327		765,495	787,045

Total cost of sales for the third quarter of 2020 was $276.8 million, reflecting an increase of $16.5 million from the third quarter of 2019. Cost of sales related to Peru increased in the third quarter of 2020, compared to the same period of 2019, by $15.0 million. The increase is primarily the result of changes in product inventory, increased depreciation charges and increased milling costs. In Manitoba, cost of sales increased by $1.5 million, compared to the third quarter of 2019, primarily as a result of higher depreciation costs from an increase to our decommissioning and restoration assets offset by changes in product inventory.

Year-to-date, cost of sales was $765.5 million, which was $21.6 million less than the same period in 2019. The decrease is principally related to lower production costs from an eight-week suspension of Constancia operations in the second quarter of 2020. During the shut-down, an adjustment to cost of sales was recorded for $31.9 million of fixed overhead costs (cash: $15.8 million, non-cash: $16.1 million included in depreciation) that would ordinarily have been capitalized to inventories and property, plant, and equipment. In Manitoba, depreciation increased by $31.4 million as a result of increases to our decommissioning and restoration obligation assets that were recorded in the fourth quarter of 2019 and are being depreciated straight-line through to the end of the mine life in 2022.

For details on unit operating costs refer to the respective tables in the "Operations Review" section of this MD&A.

31

For the third quarter of 2020, other significant variances in expenses from operations, compared to the same period in 2019, include the following:

-Selling and administrative expense increased by $5.7 million compared to the same period in 2019. This increase was mainly due to higher stock-based compensation charges as a result of the relative impact of the revaluation of previously issued share units to higher share prices, partially offset by a general reduction in consulting and travel costs.

-Exploration and evaluation expenses decreased by $4.9 million compared to the third quarter of 2019, in line with the reduced 2020 exploration budget compared to 2019.

-Impairment losses decreased by $322.2 million as a result of an impairment charge recorded in the third quarter of 2019 in our investment in the Rosemont project.

For 2020 year-to-date, other significant variances in expenses from operations, compared to 2019, include the following:

-Selling and administrative expense decreased by $3.8 million compared to the same period in 2019. This decrease was mainly due to a general reduction in consulting, legal and travel costs, partially offset by higher stock-based compensation charges as a result of the relative impact of revaluation of previously issued share units to higher share prices.

-Other expenses decreased by $35.6 million due to the write down of a joint venture receivable from prior year of $26.0 million as well as the recognition of a delivery obligation related to the Pampacancha deposit from prior year of $7.5 million, neither of which reoccurred in the current year.

-Exploration and evaluation expenses decreased by $10.3 million in line with the reduced 2020 exploration budget compared to 2019.

-Impairment losses decreased by $322.2 million as a result of an impairment charge recorded in the third quarter of 2019 in our investment in the Rosemont project.

32

Net finance expense

(in $ thousands)	Three months ended			Nine months ended
	Sep. 30, 2020		Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Finance costs - accrued or payable:
Interest expense on long-term debt	21,738		19,584	61,102	58,674
Withholding taxes	2,142		1,980	6,172	6,248
Tender premium on 7.25% senior unsecured notes	7,252		-	7,252	-
Other accrued/payable costs (income)1	1,541		105	4,789	369
Total finance costs - accrued or payable	32,673		21,669	79,315	65,291
Finance costs - non-cash:
Accretion on streaming agreements2	10,785		15,944	42,816	53,827
Interest capitalized	-		(3,298)	-	(9,890)
Change in fair value of financial assets and liabilities at fair value through profit or loss	(2,750	)	2,072	8,150	212
Write off unamortized transaction costs	3,817		-	3,817	-
Other non-cash costs3	247		1,271	1,536	5,943
Total finance costs - non-cash	12,099		15,989	56,319	50,092
Net finance expense	44,772		37,658	135,634	115,383
1 Includes interest income and other finance expense.
2 Includes variable consideration adjustment (prior periods).
3 Includes accretion on community agreements, unwinding of discount on provisions, and net foreign exchange losses (gains).

Compared to the three months ended September 30, 2019, net finance expense increased by $7.1 million.  Accrued finance costs increased by $11.0 million mostly due to a $7.3 million early redemption premium paid to holders of our Redeemed Notes. Non-cash finance costs decreased by $3.9 million primarily as a result of a net increase of $6.3 million in the market value of our investments measured through profit or loss consisting of securities in Canadian metals and mining companies as well as a $4.7 million variable consideration adjustment reducing the accretion expense on our stream arrangements. Offsetting these gains was a $3.8 million write-down of unamortized transaction costs and a $3.3 million increase in net interest charges as we no longer capitalize interest costs on the Rosemont project effective October 1, 2019, due to its delay in development.

On a year-to-date basis, net finance expense increased by $20.2 million compared to the same period in 2019 mainly for the reasons as described above and due to $16.7 million in losses from the non-cash revaluation of our gold prepayment liability measured through profit or loss.

33

Tax Recovery

For the three and nine months ended September 30, 2020, tax recovery decreased by $73.6 million and $40.1 million, respectively, compared to the same period in 2019. The following table provides further details:

	Three months ended		Nine months ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
(in $ thousands)
Deferred tax recovery - income tax 1	(669)	(80,892)	(28,194)	(84,004)
Deferred tax (recovery) expense - mining tax 1	(2,245)	2,442	(3,075)	112
Total deferred tax recovery	(2,914)	(78,450)	(31,269)	(83,892)
Current tax expense - income tax	9	6,542	360	11,134
Current tax expense (recovery) - mining tax	2,916	(1,573)	2,899	4,704
Total current tax expense	2,925	4,969	3,259	15,838
Tax expense (recovery)	11	(73,571)	(28,010)	(68,054)
1 Deferred tax expense (recovery) represents our draw down/increase of non-cash deferred income and mining tax assets/liabilities.

Income Tax Recovery

Applying the estimated Canadian statutory income tax rate of 27.0% to our loss before taxes of $180.0 million for the year-to-date period in 2020 would have resulted in a tax recovery of approximately $48.6 million; however, we recorded an income tax recovery of $27.8 million. The significant items causing our effective income tax rate to be different than the 27.0% estimated Canadian statutory income tax rate include:

-Deferred tax expense of approximately $5.5 million as certain non-monetary assets are recognized at historical cost while the tax bases of the assets change as the exchange rates fluctuates, which creates taxable temporary differences.

-Certain deductible temporary differences mostly with respect to Peru, and mostly relating to the decommissioning and restoration liabilities, were not recognized as we have determined that it is not probable that we will realize the recovery of these deferred tax assets based on the timing of the reversals of the deductible temporary differences and the future projected taxable profit of the Peruvian operations.  This has resulted in deferred tax expense of $7.9 million.

-Certain deductible temporary differences with respect to Manitoba, and mostly relating to the decommissioning and restoration liabilities, were not recognized as we have determined that it is not probable that we will realize the recovery of these deferred tax assets based on the timing of the reversals of the deductible temporary differences and the future projected taxable profit of the Manitoba operations. Adjusted for the average annual effective tax rate methodology, this resulted in deferred tax expense of $4.5 million.

-Certain deductible temporary differences with respect to our foreign operations are recorded using an income tax rate other than the Canadian statutory income tax rate of 27%, resulting in a deferred tax expense of $4.3 million.

-Certain foreign exchange gains and other items are not taxable for local income tax purposes and therefore result in a deferred tax recovery of approximately $1.5 million.

34

Mining Tax Recovery

Applying the estimated Manitoba mining tax rate of 10.0% to our loss before taxes of $180.0 million for the year-to-date period in 2020 would have resulted in a tax recovery of approximately $18.0 million; however, we recorded a mining tax recovery of $0.2 million. Effective mining tax rates can vary significantly based on the composition of our earnings and the expected amount of mining taxable profits. Corporate costs and other costs not related to mining operations are not deductible in computing mining profits. A brief description of how mining taxes are calculated in our various business units is discussed below.

Manitoba

The Province of Manitoba imposes mining tax on profit related to the sale of mineral products mined in the Province of Manitoba (mining taxable profit) at the following rates:

-10% of total mining taxable profit if mining profit is C$50 million or less;

-15% of total mining taxable profit if mining profits are between C$55 million and C$100 million; and

-17% of total mining taxable profit if mining profits exceed C$105 million.

We estimate that the tax rate that will be applicable when temporary differences reverse will be approximately 10.0%.

Peru

The Peruvian government imposes two parallel mining tax regimes, the Special Mining Tax and the Modified Royalty, on companies' operating mining income on a sliding scale, with progressive rates ranging from 2.0% to 8.4% and 1.0% to 12.0%, respectively. Based on financial forecasts, we have recorded a deferred tax liability as at September 30, 2020, at the tax rate we expect to apply when temporary differences reverse.

LIQUIDITY AND CAPITAL RESOURCES

Senior Unsecured Notes Refinancing

On September 23, 2020, we completed the offering of $600.0 million aggregate principal amount of 6.125% senior notes due April 2029. The New Notes are governed by an indenture, dated as of September 23, 2020, among the Company, the subsidiaries of the Company party thereto as guarantors and U.S. Bank National Association, as trustee.

The proceeds from this offering were primarily used to redeem all $400.0 million of our outstanding 7.250% Redeemed Notes, including the payment of accrued and unpaid interest and a call premium of $7.3 million, and to pay transaction costs associated with the New Notes.

Senior Secured Revolving Credit Facilities

On August 31, 2020, we completed an amendment to our senior secured revolving credit facilities (the "Credit Facilities"). As a result of the amendment, the total available borrowings under the Credit Facilities has decreased to $400.0 million from $550.0 million to reflect our anticipated business requirements until June 2022 when the Credit Facilities mature. We also revised various financial covenants as follows:

-Maintaining net debt to EBITDA ratio of less than:

•5.25:1 from September 30, 2020 to December 31, 2021; and,

•3.50:1 from January 1, 2022 to maturity.

- Maintaining an interest coverage ratio of greater than:

•2.50:1 from September 30, 2020 to December 31, 2021; and,

•3.00:1 from January 1, 2022 to maturity.

-Maintaining a minimum liquidity of greater than $50 million to December 31, 2021.

35

The EBITDA calculation for the purposes of the covenants may differ from the non-IFRS measure of adjusted EBITDA shown in this MD&A. As at September 30, 2020, our liquidity includes $449.0 million in cash and cash equivalents as well as undrawn availability of $291.4 million under our Credit Facilities. As at September 30, 2020, we are in compliance with our covenants under the Credit Facilities and have drawn $108.6 million in letters of credit under the Credit Facilities.

As at September 30, 2020, the Arizona business unit had $8.6 million in surety bonds and the Peru business unit had $20.0 million in surety bonds issued to support future reclamation and closure obligations. The Peru business unit also had $45.0 million in letters of credit issued with various Peruvian financial institutions. No cash collateral is required to be posted under these letters of credit or surety bonds.

Financial Condition

Financial Condition as at September 30, 2020 compared to December 31, 2019

Cash and cash equivalents increased by $52.9 million during the first nine months of the year to $449.0 million as at September 30, 2020. This increase was mainly the result of cash flow from operating activities of $118.4 million, $115.0 million of proceeds from the gold prepay transaction and approximately $191.8 million in net proceeds raised from our New Notes offering. Offsetting these cash inflows was $243.3 million of capital investments primarily at our Peru and Manitoba operations, interest payments of $81.5 million, other leasing and financing costs of $39.0 million, a $7.3 million premium paid to redeem our 2023 Notes and paid dividends of $3.8 million. We hold the majority of our cash and cash equivalents in low-risk, liquid investments with major Canadian and Peruvian financial institutions.

Working capital increased by $132.2 million to $403.4 million from December 31, 2019 to September 30, 2020, primarily due to the cash and cash equivalent increase of $52.9 million, a decrease in our trade and other payables  of $35.2 million arising mainly from timing of interest payments on our senior unsecured notes, an increase of $23.0 in accounts receivable due to timing of cash receipts, a reduction of the current portion of deferred revenue by $13.6 million based on changes in expected future stream deliveries, and a decrease in other current financial liabilities of $9.5 million mainly as a result of a reduction in the fair value of certain provisionally priced sales receivables and other embedded derivatives.

Cash Flows

The following table summarizes our cash flows for the three and nine months ended September 30, 2020 and September 30, 2019:

(in $ thousands)	Three months ended		Nine months ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Operating cash flow before changes in non-cash working capital	84,383	71,204	155,792	238,143
Change in non-cash working capital	(6,448)	(27,721)	(37,402)	(25,953)
Cash generated from operating activities	77,935	43,483	118,390	212,190
Cash (used in) generated by investing activities	(144,164)	(75,535)	(241,520)	(205,679)
Cash generated by (used in) financing activities	124,845	(59,050)	175,285	(123,392)
Effect of movement in exchange rates on cash and cash equivalents	(738)	13	713	(178)
Increase (decrease) in cash and cash equivalents	57,878	(91,089)	52,868	(117,059)

36

Cash Flow from Operating Activities

Cash generated from operating activities was $77.9 million during the third quarter of 2020, an increase of $34.5 million compared with the same period in 2019. Operating cash flow before change in non-cash working capital was $84.4 million during the third quarter of 2020, reflecting an increase of $13.2 million compared to the third quarter of 2019. The increase in operating cash flow is primarily the result of higher realized copper and precious metals prices and higher gold sales volume. This was partially offset by lower sales volumes of copper and zinc compared to the third quarter of 2019.

Year-to-date cash generated from operating activities was $118.4 million, representing a decrease of $93.8 million compared to the same period in 2019. Operating cash flow before change in non-cash working capital was $155.8 million during the first nine months of 2020, compared to $238.1 million during the same period in 2019. The year-to-date decrease in operating cash flow is due to significantly lower copper sales volumes in Peru as a result of an eight-week suspension of Constancia operations in the second quarter and lower copper grades as well as lower realized base metal prices and silver sales volumes. This was partially offset by higher realized gold prices.

Cash Flow from Investing and Financing Activities

During the third quarter of 2020, we used $19.3 million in investing and financing activities, primarily driven by $144.5 million of capital expenditures, interest payments of $44.1 million, capitalized lease payments of $9.4 million and other financing payments of $11.5 million. Offsetting these payments was net proceeds of $191.8 million from our New Notes offering, net of transaction costs.

Year-to-date, we used $66.2 million in investing and financing activities, composed primarily of $243.3 million of capital investments, interest payments of $81.5 million, capitalized lease payments of $26.6 million and other financing payments of $19.6 million, partially offset by net proceeds of $191.8 million from our New Notes offering, and $115.0 million of proceeds from the gold prepay transaction.

37

Capital Expenditures

The following summarizes accrued and cash additions to capital assets for the periods indicated:

	Three months ended				Nine months ended				Guidance
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019		Annual
(in $ millions)									2020 1
Manitoba sustaining capital expenditures	23.3		44.5		74.3		95.7		100.0
Peru sustaining capital expenditures 2	35.0		25.0		54.2		53.5		80.0
Total sustaining capital expenditures	58.3		69.5		128.5		149.2		180.0
Arizona capitalized costs	2.0		16.0		9.7		29.4		20.0
Peru growth capitalized expenditures 3	25.7		0.3		95.9		0.9		70.0
Manitoba growth capitalized expenditures	15.7		3.7		30.4		6.9		80.0
Other capitalized costs 4	(6.5	)	18.1		53.3		41.6
Capitalized exploration	1.0		4.8		3.3		6.8		15.0
Capitalized interest	-		3.3		-		9.9
Total other capitalized costs	37.9		46.2		192.6		95.5
Total capital additions	96.2		115.7		321.1		244.7
Reconciliation to cash capital additions:
Decommissioning and restoration obligation	7.7		(16.4	)	(50.8	)	(42.8	)
Capitalized interest	-		(3.3	)	-		(9.9	)
Right-of-use asset additions	(10.2	)	(15.2	)	(17.4	)	(19.8	)
Change in community agreement accruals	55.3		-		(7.1	)	-
Change in capital accruals and other	(4.5	)	(2.7	)	(2.5	)	(1.8	)
Total cash capital additions	144.5		78.1		243.3		170.4
1 Reflects Manitoba guidance issued February 20, 2020 and updated Peru guidance issued August 11, 2020.
2 Peru sustaining capital expenditures includes capitalized stripping costs.
3 Hudbay's initial growth capital guidance for Peru of $70 million did not include the cost of the individual land user agreements due to the ongoing nature of the negotiations and, as indicated by accrued expenditures to date, full year growth capital spending for Peru will exceed that initial guidance once all land user agreements are concluded.
4 Other capitalized costs include decommissioning and restoration adjustments.

Sustaining capital expenditures in Manitoba for the three and nine months ended September 30, 2020 were $23.3 million and $74.3 million respectively, representing a decrease of $21.2 million and a decrease of $21.4 million compared to the same period in 2019. The decrease is due to a reduction in capital development at the 777 mine as it nears the end of its mine life in 2022.

Sustaining capital expenditures in Peru for the three and nine months ended September 30, 2020 were $35.0 million and $54.2 million respectively, representing increases of $10.0 million and  $0.7 million, respectively, from the same period in 2019. The increase in Peru sustaining capital expenditures compared to the same period last year was mainly due to the shifting of costs from the second quarter to the third quarter due to a temporary suspension of operations at Constancia earlier this year. Increased expenditures in the current quarter primarily relate to additions to in mine and plant equipment capitalized leases.

We expect consolidated sustaining capital expenditures in 2020 to be in line with full year guidance.

Year-to-date Peru growth capital of $95.9 million includes the recognition of future spending obligations arising from the execution of the surface rights agreement with the local community and agreements related to current uses of the land by certain community members. During the first nine months of 2020, we made payments of approximately $84.3 million, representing the majority of expenditures under these agreements. As previously disclosed, the company's initial growth capital guidance for Peru of $70.0 million did not include the cost of the individual land user agreements due to the ongoing nature of the negotiations and, as indicated by accrued expenditures to date, full year growth capital spending for Peru will exceed that initial guidance once all land user agreements are concluded.

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Year-to-date Manitoba growth capital of $30.4 million includes spending for the New Britannia refurbishment project which includes construction of the new copper flotation building and construction of a pipeline between the New Britannia and Stall mills. The project is currently approximately 64% complete and is tracking ahead of schedule while remaining on budget. Full year growth capital spending for Manitoba is expected to be lower than guidance as some anticipated 2020 capital spend is forecast to be incurred in 2021.

Other capitalized costs for the three and nine months ended September 30, 2020 were negative $6.5 million and $53.3 million, respectively, and relate primarily to the remeasurement of previously recognized decommissioning and restoration liabilities at our Peru and Manitoba operations.

Capital Commitments

As at September 30, 2020, we had outstanding capital commitments in Canada of approximately $42.9 million of which $37.7 million can be terminated, approximately $34.7 million in Peru primarily related to exploration option agreements, all of which can be terminated, and approximately $179.8 million in Arizona, primarily related to our Rosemont project, of which approximately $89.2 million can be terminated.

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Contractual Obligations

The following table summarizes our significant contractual obligations as at September 30, 2020:

		Less than 12 months	13 - 36 months	37 - 60 months	More than 60 months
Payment Schedule (in $ millions)	Total
Long-term debt obligations1	1,728.1	69.5	169.5	742.1	747.0
Gold prepayment obligation3	132.0	-	116.4	15.6	-
Lease obligations	146.0	96.4	42.8	2.5	4.3
Purchase obligation - capital commitments	257.4	58.3	24.5	27.4	147.2
Purchase obligation - other commitments2	912.4	366.8	322.0	166.6	57.0
Pension and other employee future benefits obligations3	205.6	20.1	34.7	9.4	141.4
Community agreement obligations	59.9	11.5	9.9	7.0	31.5
Decommissioning and restoration obligations4	261.6	21.7	27.8	5.7	206.4
Total	3,703.0	644.3	747.6	976.3	1,334.8
1 Long-term debt obligations include scheduled interest payments, as well as principal repayments.
2 Primarily made up of long-term agreements with operational suppliers, obligations for power purchase, Pampacancha delivery obligation, concentrate handling, fleet and port services, as well as deferred consideration arising from the acquisition of Rosemont's minority interest.
3 Discounted.
4 Undiscounted before inflation.

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In addition to the contractual obligations included in the above payment schedule, we also have the following commitments which impact our financial position:

-A profit-sharing plan with most Manitoba employees;

-A profit-sharing plan with all Peru employees;

-Wheaton precious metals stream agreements for the 777 mine and Constancia mines;

-A net smelter returns royalty agreement related to the 777 mine; and,

-Government royalty payments related to the Constancia mine.

Outstanding Share Data

As of November 2, 2020, there were 261,272,151 common shares of Hudbay issued and outstanding. In addition, there were 1,567,593 stock options outstanding.

TREND ANALYSIS AND QUARTERLY REVIEW

A detailed quarterly and annual summary of financial and operating performance can be found in the "Summary of Results" section at the end of this MD&A. The following table sets forth selected consolidated financial information for each of our eight most recently completed quarters:

	2020			2019				2018
(in $ millions)	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Revenue	316.1	208.9	245.1	324.5	291.3	329.4	292.3	351.8
Gross margin	39.3	(12.7)	(22.0)	25.6	31.0	43.1	51.8	75.2
(Loss) profit before tax	(23.9)	(74.6)	(81.5)	(42.4)	(348.4)	(43.9)	(18.1)	17.7
(Loss) profit	(24.0)	(51.9)	(76.1)	(1.5)	(274.8)	(54.1)	(13.4)	(3.5)
Adjusted net (loss) earnings1	(25.4)	(39.7)	(39.4)	(24.6)	(23.2)	(8.1)	7.3	13.3
(Loss) earnings per share:
Basic and Diluted	(0.09)	(0.20)	(0.29)	(0.01)	(1.05)	(0.21)	(0.05)	(0.01)
Adjusted net (loss) earnings1 per share	(0.10)	(0.15)	(0.15)	(0.09)	(0.09)	(0.03)	0.03	0.05
Operating cash flow2	84.4	29.5	42.0	69.1	71.2	81.3	85.7	104.3
Adjusted EBITDA1	96.1	49.1	55.0	82.2	76.2	95.9	104.2	120.7
1 Adjusted net (loss) earnings, adjusted net (loss) earnings per share, and adjusted EBITDA are non-IFRS financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A.
2 Operating cash flow before changes in non-cash working capital.

During the third quarter of 2020, our business was able to adapt to the global impact of the evolving COVID-19 pandemic. We benefited from increasing commodity prices and consistent, uninterrupted operations in Manitoba and Peru while adhering to established health and safety protocols. During the quarter, we redeemed our 2023 senior unsecured notes and issued new senior unsecured notes maturing in 2029 raising incremental gross proceeds of $200 million. Our third quarter results were impacted by a $7.3 million premium paid to redeem the 2023 notes as well as a $3.8 million write-down of unamortized transaction costs offset by an after-tax non-cash adjustment of $9.0 million on our streaming revenues.

Due to the temporary suspension of operations at Constancia throughout April and into mid-May 2020, we had lower second quarter production and sales volumes and higher production costs by $25.6 million as a result of the immediate recognition of fixed overhead production costs incurred during the suspension. The first quarter results were less impacted by the shutdown and reflected $6.3 million of shutdown-related production costs as well as an inventory write-down of $10.4 million triggered by lower copper prices.

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In 2019, the lower realized prices for copper and zinc, combined with a trend towards lower copper grades in the Constancia mine plan and the closure of the Reed copper mine in August 2018 resulted in lower revenues and gross margin, despite the lower Constancia grades being partially offset by higher mill throughput and recoveries. Earnings in 2019 were also impacted by an after-tax impairment charge of $242.1 million in the third quarter of 2019, as well as a UCM receivable write down of $26.0 million in the second quarter of 2019. In the first quarter of 2019, pre-tax revenue and finance expenses were negatively impacted by a $22.3 million charge due to a deferred revenue adjustment arising from higher net mineral reserves and resources.

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NON-IFRS FINANCIAL PERFORMANCE MEASURES

Adjusted net earnings (loss), adjusted net earnings (loss) per share, adjusted EBITDA, net debt, cash cost, sustaining and all-in sustaining cash cost per pound of copper produced, cash cost and sustaining cash cost per pound of zinc produced and combined unit cost and zinc plant unit cost are non-IFRS performance measures. 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.

Management believes adjusted net earnings (loss) and adjusted net earnings (loss) per share better reflect the Company's performance for the current period and are better indications of its expected performance in future periods. These measures are used internally by the Company to evaluate the performance of its underlying operations and to assist with its planning and forecasting of future operating results. As such, the Company believes these measures are useful to investors in assessing the Company's underlying performance. We provide adjusted EBITDA to help users analyze our results and to provide additional information about our ongoing cash generating potential in order to assess our capacity to service and repay debt, carry out investments and cover working capital needs. Net debt is shown because it is a performance measure used by the Company to assess our financial position. Cash cost, sustaining and all-in sustaining cash cost per pound of copper produced are shown because we believe they help investors and management assess the performance of our operations, including the margin generated by the operations and the Company. Cash cost and sustaining cash cost per pound of zinc produced are shown because we believe they help investors and management assess the performance of our Manitoba operations. Combined unit cost and zinc plant unit cost is shown because we believe they help investors and management assess our cost structure and margins that are not impacted by variability in by-product commodity prices.

In the first half of 2020, a government-imposed shutdown of non-essential businesses led to a temporary suspension of our Constancia mining operations. As such, fixed overhead production costs incurred during the suspension were directly charged to cost of sales. These costs did not contribute to production of inventory and were therefore excluded from the calculations of adjusted net earnings (loss), adjusted EBITDA and cash costs.

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Adjusted Net Earnings (Loss)

Adjusted net earnings (loss) represents net earnings (loss) excluding certain impacts, net of taxes, such as changes in estimates of asset retirement obligations at closed sites, mark-to-market adjustments, impairment charges and reversal of impairment charges, write-down of assets, and foreign exchange (gain) loss. These measures are not necessarily indicative of net earnings (loss) or cash flows as determined under IFRS.

The following table provides a reconciliation of earnings (loss) per the consolidated interim income statements, to adjusted net earnings (loss) for the three and nine months ended September 30, 2020 and 2019.

	Three months ended				Nine months ended
(in $ millions)	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Loss for the period	(24.0	)	(274.8	)	(152.0	)	(342.4	)
Tax expense (recovery)	0.1		(73.6	)	(28.0	)	(68.0	)
Loss before tax	(23.9	)	(348.4	)	(180.0	)	(410.4	)
Adjusting items:
Mark-to-market adjustments1	1.9		(0.8	)	13.7		0.8
Rosemont impairment	-		322.2		-		322.2
Peru inventory write-down	-		-		2.2		-
Peru cost of sales direct charge from temporary shutdown	-		-		31.9		-
Write down of UCM receivable	-		-		-		26.0
Costs associated with proxy contest	-		-		-		3.0
Variable consideration adjustment - stream revenue	(14.1	)	-		(10.4	)	22.3
Pampacancha delivery obligation	-		-		-		7.5
Foreign exchange gain	(1.2	)	(0.1	)	(4.2	)	1.7
Write-down of unamortized transaction costs	3.8		-		3.8		-
Premium paid on redemption of notes	7.3		-		7.3		-
Adjusted loss before income taxes	(26.2	)	(27.1	)	(135.7	)	(26.9	)
Tax expense (recovery)	(0.1	)	73.6		28.0		68.0
Tax impact of adjusting items	0.1		(78.9	)	(14.2	)	(86.2	)
Dividend withholding tax	-		6.9		-		6.9
Non-cash deferred tax adjustments	0.8		2.2		17.9		14.1
Adjusted net loss	(25.4	)	(23.3	)	(104.0	)	(24.1	)
Adjusted net loss ($/share)	(0.10	)	(0.09	)	(0.40	)	(0.09	)
Basic weighted average number of common shares outstanding (millions)	261.3		261.3		261.3		261.3
1 Includes changes in fair value of financial assets and liabilities at fair value through profit or loss and share-based compensation expenses.

After adjusting reported net loss for those items not considered representative of the Company's core business or indicative of future operations, the Company had an adjusted net loss in the third quarter 2020 of $25.4 million or $0.10 loss per share.

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Adjusted EBITDA

Adjusted EBITDA is profit or loss before net finance expense/income, tax expense/recoveries, depreciation and amortization of property, plant and equipment and deferred revenue, as well as certain other adjustments. We calculate adjusted EBITDA by excluding certain adjustments included within our adjusted net earnings measure which we believe reflects the underlying performance of our core operating activities. The measure also removes the impact of non-cash items and financing costs that are not associated with measuring the underlying performance of our operations. However, our adjusted EBITDA is not the measure defined as EBITDA under our senior notes or revolving credit facilities and may not be comparable with performance measures with the same name reported by other companies. Adjusted EBITDA should not be considered as a substitute for profit or loss or as a better measure of liquidity than operating cash flow, which are calculated in accordance with IFRS. We provide adjusted EBITDA to help users analyze our results and to provide additional information about our ongoing cash generating potential in order to assess our capacity to service and repay debt, carry out investments and cover working capital needs.

The following table presents the reconciliation of earnings (loss) per the consolidated interim income statements, to adjusted EBITDA for the three and nine months ended September 30, 2020 and 2019: 

	Three months ended				Nine months ended
(in $ millions)	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Loss for the period	(24.0	)	(274.8	)	(152.0	)	(342.4	)
Add back: tax expense (recovery)	0.1		(73.6	)	(28.0	)	(68.0	)
Add back: Net finance expense	44.8		37.7		135.6		115.4
Add back: Other expenses	4.8		6.6		11.6		47.2
Add back: Depreciation and amortization1	96.0		82.3		263.2		250.6
Less: Amortization of deferred revenue and variable consideration adjustment	(30.2	)	(21.4	)	(53.8	)	(52.2	)
	91.5		(243.2	)	176.6		(49.4	)
Adjusting items (pre-tax):
Peru inventory write-down	-		-		2.2		-
Cash portion of Peru cost of sales direct charge from temporary shutdown	-		-		15.8		-
Costs associated with proxy contest	-		-		-		3.0
Share-based compensation expenses (recoveries)2	4.6		(2.8)		5.5		0.4
Rosemont impairment	-		322.2		-		322.2
Adjusted EBITDA	96.1		76.2		200.1		276.2
1 Includes the non-cash portion of the Peru cost of sales direct charge from the temporary shutdown of $16.1 million for the nine months ended September 30, 2020.
2 Share-based compensation expenses (recoveries) reflected in cost of sales and selling and administrative expenses.

Net Debt

The following table presents our calculation of net debt as at September 30, 2020 and December 31, 2019:

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(in $ thousands)	Sep. 30, 2020		Dec. 31, 2019
Total long-term debt as per IFRS financial statements	1,175,104		985,255
Cash and cash equivalents as per IFRS financial statements	(449,014	)	(396,146	)
Net debt	726,090		589,109

Cash Cost, Sustaining and All-in Sustaining Cash Cost (Copper Basis)

Cash cost per pound of copper produced ("cash cost") is a non-IFRS measure that management uses as a key performance indicator to assess the performance of our operations. Our calculation designates copper as our primary metal of production as it has been the largest component of revenues. The calculation is presented in four manners:

-Cash cost, before by-product credits - This measure is gross of by-product revenues and is a function of the efforts and costs incurred to mine and process all ore mined. However, the measure divides this aggregate cost over only pounds of copper produced, our primary metal of production. This measure is generally less volatile from period to period, as it is not affected by changes in the price received for by-product metals. It is, however, significantly affected by the relative mix of copper concentrate and finished zinc production, where the sale of the zinc will occur later, and an increase in production of zinc metal will tend to result in an increase in cash cost under this measure.

-Cash cost, net of by-product credits - In order to calculate the net cost to produce and sell copper, the net of by-product credits measure subtracts the revenues realized from the sale of the metals other than copper. The by-product revenues from zinc, gold, and silver are significant and are integral to the economics of our operations. The economics that support our decision to produce and sell copper would be different if we did not receive revenues from the other significant metals being extracted and processed. This measure provides management and investors with an indication of the minimum copper price consistent with positive operating margins, assuming realized by-product metal prices are consistent with those prevailing during the reporting period. It also serves as an important operating statistic that management and investors utilize to measure our operating performance versus that of our competitors. However, it is important to understand that if by-product metal prices decline alongside copper prices, the cash cost net of by-product credits would increase, requiring a higher copper price than that reported to maintain positive cash flows and operating margins.

-Sustaining cash cost, net of by-product credits - This measure is an extension of cash cost that includes cash sustaining capital expenditures, including payments on capitalized leases, capitalized sustaining exploration, net smelter returns royalties, payments on certain long-term community agreements, as well as accretion and amortization for expected decommissioning activities for producing assets. It does not include corporate selling and administrative expenses. It provides a more fulsome measurement of the cost of sustaining production than cash cost, which is focused on operating costs only.

-All-in sustaining cash cost, net of by-product credits - This measure is an extension of sustaining cash cost that includes corporate G&A, regional costs, accretion and amortization for community agreements relating to current operations, and accretion for expected decommissioning activities for non-producing assets. Due to the inclusion of corporate selling and administrative expenses, all-in sustaining cash cost is presented on a consolidated basis only.

Effective September 30, 2020 and for all comparably disclosed periods, we have included the period's deferred revenue amortization as a by-product credit to reflect the net cost of producing and selling the period's precious metals under our streaming arrangements as we believe doing so allows management and our investors to better evaluate the operating performance of the underlying operations. The variable consideration adjustment required under IFRS 15 related to prior periods is not included as a by-product credit in the current period and hence is disclosed as an adjustment in the non-IFRS cash cost measure reconciliation.

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The tables below present a detailed build-up of cash cost and sustaining cash cost, net of by-product credits, by business unit in addition to consolidated all-in sustaining cash cost, net of by-product credits, and reconciliations between cash cost, net of by-product credits, to the most comparable IFRS measures of cost of sales for the three and nine months ended September 30, 2020 and 2019. Cash cost, net of by-product credits may not calculate exactly based on amounts presented in the tables below due to rounding.

Consolidated	Three months ended		Nine months ended
Net pounds of copper produced
(in thousands)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Peru	45,862	68,544	113,750	192,167
Manitoba	10,124	11,753	36,286	38,781
Net pounds of copper produced	55,986	80,297	150,036	230,948

Consolidated	Three months ended				Nine months ended
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Cash cost per pound of copper produced	$000s	$/lb	$000s	$/lb	$000s	$/lb	$000s	$/lb
Cash cost, before by-product credits	188,699	3.37	196,889	2.46	513,225	3.42	606,515	2.63
By-product credits	(152,403)	(2.72)	(139,930)	(1.75)	(412,235)	(2.75)	(418,058)	(1.81)
Cash cost, net of by-product credits	36,296	0.65	56,959	0.71	100,990	0.67	188,457	0.82

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Consolidated	Three months ended				Nine months ended
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Supplementary cash cost information	$000s	$/lb 1	$000s	$/lb 1	$000s	$/lb 1	$000s	$/lb 1
By-product credits2:
Zinc	66,918	1.20	74,321	0.93	187,512	1.25	213,034	0.92
Gold 3	58,093	1.04	37,202	0.46	158,235	1.05	111,685	0.48
Silver 3	19,656	0.35	19,116	0.24	46,718	0.31	63,803	0.28
Molybdenum & other	7,736	0.14	9,291	0.12	19,770	0.13	29,536	0.13
Total by-product credits	152,403	2.72	139,930	1.75	412,235	2.75	418,058	1.81
Reconciliation to IFRS:
Cash cost, net of by-product credits	36,296		56,959		100,990		188,457
By-product credits	152,403		139,930		412,235		418,058
Treatment and refining charges	(15,006)		(20,221)		(42,165)		(62,303)
Share-based compensation expense	411		(173)		480		192
Inventory adjustments	-		385		2,221		604
Change in product inventory	2,229		(1,758)		2,691		(18,403)
Royalties	4,499		2,919		9,989		9,830
Overhead costs related to suspension of activities (cash)	-		-		15,810		-
Depreciation and amortization4	95,998		82,286		263,244		250,610
Cost of sales5	276,830		260,327		765,495		787,045
1 Per pound of copper produced.
2 By-product credits are computed as revenue per financial statements, amortization of deferred revenue and pricing and volume adjustments. For more information please see the realized price reconciliation table on page 27 for these figures.
3 Gold and silver by-product credits do not include variable consideration adjustments with respect to stream arrangements. Variable consideration adjustments are cumulative adjustments to gold and silver stream deferred revenue primarily associated with the net change in mineral reserves and resources or amendments to the mine plan that would change the total expected deliverable ounces under the precious metal streaming arrangement. For the three and nine months ended September 30, 2020 the variable consideration adjustments amounted to revenue of $9,482 and $6,668, respectively. For the three and nine months ended September 30, 2019 - $nil and an expense of $16,295.
4 Depreciation is based on concentrate sold.
5 As per IFRS financial statements.

Peru	Three months ended		Nine months ended
(in thousands)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net pounds of copper produced1	45,862	68,544	113,750	192,167
1 Contained copper in concentrate.

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Peru	Three months ended				Nine months ended
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Cash cost per pound of copper produced	$000s	$/lb	$000s	$/lb	$000s	$/lb	$000s	$/lb
Mining	18,220	0.40	18,274	0.27	45,757	0.40	63,884	0.33
Milling	42,836	0.93	38,064	0.56	94,877	0.83	116,053	0.60
G&A	12,538	0.27	14,791	0.22	28,778	0.25	41,700	0.22
Onsite costs	73,594	1.60	71,129	1.04	169,412	1.49	221,637	1.15
Treatment & refining	10,694	0.23	15,409	0.22	26,573	0.23	44,446	0.23
Freight & other	10,201	0.22	13,375	0.20	24,805	0.22	37,895	0.20
Cash cost, before by-product credits	94,489	2.06	99,913	1.46	220,790	1.94	303,978	1.58
By-product credits	(23,675)	(0.52)	(27,509)	(0.40)	(56,265)	(0.49)	(93,417)	(0.49)
Cash cost, net of by-product credits	70,814	1.54	72,404	1.06	164,525	1.45	210,561	1.10

Peru	Three months ended				Nine months ended
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Supplementary cash cost information	$000s	$/lb 1	$000s	$/lb 1	$000s	$/lb 1	$000s	$/lb 1
By-product credits2:
Gold3	6,099	0.13	4,848	0.07	12,232	0.11	18,856	0.10
Silver3	12,006	0.26	14,354	0.21	28,286	0.25	48,518	0.25
Molybdenum	5,570	0.12	8,307	0.12	15,747	0.14	26,043	0.14
Total by-product credits	23,675	0.52	27,509	0.40	56,265	0.49	93,417	0.48
Reconciliation to IFRS:
Cash cost, net of by-product credits	70,814		72,404		164,525		210,561
By-product credits	23,675		27,509		56,265		93,417
Treatment and refining charges	(10,694)		(15,409)		(26,573)		(44,446)
Inventory adjustments	-		385		2,221		604
Share-based compensation expenses	89		(28)		74		48
Change in product inventory	4,824		(5,075)		2,666		(10,723)
Royalties	1,664		1,401		3,722		4,572
Overhead costs related to suspension of activities (cash	-		-		15,810		-
Depreciation and amortization4	53,021		47,236		133,414		152,188
Cost of sales5	143,393		128,423		352,124		406,221
1 Per pound of copper produced.
2 By-product credits are computed as revenue per financial statements, amortization of deferred revenue and pricing and volume adjustments. For more information please see the realized price reconciliation table on page 27.
3 Gold and silver by-product credits do not include variable consideration adjustments with respect to stream arrangements.
4 Depreciation is based on concentrate sold.
5 As per IFRS financial statements.

49

Manitoba	Three months ended		Nine months ended
(in thousands)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net pounds of copper produced1	10,124	11,753	36,286	38,781
1 Contained copper in concentrate.

Manitoba	Three months ended				Nine months ended
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Cash cost per pound of copper produced	$000s	$/lb	$000s	$/lb	$000s	$/lb	$000s	$/lb
Mining	42,224	4.17	43,525	3.70	131,711	3.63	140,637	3.63
Milling	11,901	1.18	12,118	1.03	34,910	0.96	35,873	0.93
Refining (zinc)	17,504	1.73	18,552	1.58	53,063	1.46	52,795	1.36
G&A	11,909	1.18	11,697	1.00	37,033	1.02	35,475	0.91
Onsite costs	83,538	8.25	85,892	7.31	256,717	7.07	264,780	6.83
Treatment & refining	4,312	0.43	4,812	0.41	15,592	0.43	17,857	0.46
Freight & other	6,360	0.63	6,272	0.53	20,126	0.55	19,900	0.51
Cash cost, before by-product credits	94,210	9.31	96,976	8.25	292,435	8.06	302,537	7.80
By-product credits	(128,728)	(12.72)	(112,421)	(9.56)	(355,970)	(9.81)	(324,641)	(8.37)
Cash cost, net of by-product credits	(34,518)	(3.41)	(15,445)	(1.31)	(63,535)	(1.75)	(22,104)	(0.57)

50

Manitoba	Three months ended				Nine months ended
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Supplementary cash cost information	$000s	$/lb 1	$000s	$/lb 1	$000s	$/lb 1	$000s	$/lb 1
By-product credits2:
Zinc	66,918	6.61	74,321	6.32	187,512	5.17	213,034	5.49
Gold3	51,994	5.14	32,354	2.75	146,003	4.02	92,829	2.39
Silver3	7,650	0.76	4,762	0.41	18,432	0.51	15,285	0.39
Other	2,166	0.21	984	0.08	4,023	0.11	3,493	0.09
Total by-product credits	128,728	12.72	112,421	9.56	355,970	9.81	324,641	8.37
Reconciliation to IFRS:
Cash cost, net of by-product credits	(34,518)		(15,445)		(63,535)		(22,104)
By-product credits	128,728		112,421		355,970		324,641
Treatment and refining charges	(4,312)		(4,812)		(15,592)		(17,857)
Share-based compensation expenses	322		(145)		406		144
Change in product inventory	(2,595)		3,317		25		(7,680)
Royalties	2,835		1,518		6,267		5,258
Depreciation and amortization4	42,977		35,050		129,830		98,422
Cost of sales5	133,437		131,904		413,371		380,824
1 Per pound of copper produced.
2 By-product credits are computed as revenue per financial statements, amortization of deferred revenue and pricing and volume adjustments. For more information please see the realized price reconciliation table on page 27.
3 Gold and silver by-product credits do not include variable consideration adjustments with respect to stream arrangements.
4 Depreciation is based on concentrate sold.
5 As per IFRS financial statements.

51

Consolidated	Three months ended				Nine months ended
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
All-in sustaining cash cost per pound of copper produced	$000s	$/lb	$000s	$/lb	$000s	$/lb	$000s	$/lb
Cash cost, net of by-product credits	36,296	0.65	56,959	0.71	100,990	0.67	188,457	0.82
Cash sustaining capital expenditures	72,461	1.29	68,372	0.85	176,658	1.18	165,355	0.72
Capitalized exploration1	-	0.00	1,589	0.02	-	0.00	3,585	0.02
Royalties	4,499	0.08	2,919	0.04	9,989	0.07	9,830	0.04
Sustaining cash cost, net of by-product credits	113,256	2.02	129,839	1.62	287,637	1.92	367,227	1.59
Corporate selling and administrative expenses & regional costs	11,705	0.21	5,984	0.07	29,301	0.20	33,247	0.14
Accretion and amortization of decommissioning and community agreements2	995	0.02	56	-	3,110	0.02	188	-
All-in sustaining cash cost, net of by-product credits	125,956	2.25	135,879	1.69	320,048	2.13	400,662	1.73
1 Only includes exploration costs incurred for locations near existing mines.
2 Includes accretion of decommissioning relating to non-productive sites, and accretion and amortization of current community agreements.

Peru	Three months ended				Nine months ended
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Sustaining cash cost per pound of copper produced	$000s	$/lb	$000s	$/lb	$000s	$/lb	$000s	$/lb
Cash cost, net of by-product credits	70,814	1.54	72,404	1.06	164,525	1.45	210,561	1.10
Cash sustaining capital expenditures	32,354	0.71	30,781	0.45	64,453	0.57	69,322	0.36
Royalties	1,664	0.04	1,401	0.02	3,722	0.03	4,572	0.02
Sustaining cash cost per pound of copper produced	104,832	2.29	104,586	1.53	232,700	2.05	284,455	1.48

Manitoba	Three months ended								Nine months ended
	Sep. 30, 2020				Sep. 30, 2019				Sep. 30, 2020				Sep. 30, 2019
Sustaining cash cost per pound of copper produced	$000s		$/lb		$000s		$/lb		$000s		$/lb		$000s		$/lb
Cash cost, net of by-product credits	(34,518	)	(3.41	)	(15,445	)	(1.31	)	(63,535	)	(1.75	)	(22,104	)	(0.57)
Cash sustaining capital expenditures	40,107		3.96		37,591		3.20		112,205		3.09		96,033		2.48
Capitalized exploration	-		0.00		1,589		0.14		-		0.00		3,585		0.09
Royalties	2,835		0.28		1,518		0.13		6,267		0.17		5,258		0.14
Sustaining cash cost per pound of copper produced	8,424		0.83		25,253		2.15		54,937		1.51		82,772		2.13

52

Zinc Cash Cost and Zinc Sustaining Cash Cost

Cash cost per pound of zinc produced ("zinc cash cost") is a non-IFRS measure that management uses as a key performance indicator to assess the performance of our Manitoba operations. This alternative cash cost calculation designates zinc as the primary metal of production as it is the largest component of revenues for our Manitoba business unit and should therefore be less volatile over time than Manitoba cash cost per pound of copper. The calculation is presented in three manners:

-Zinc cash cost, before by-product credits - This measure is gross of by-product revenues and is a function of the efforts and costs incurred to mine and process all ore mined. However, the measure divides this aggregate cost over only pounds of zinc produced, our primary metal of production. This measure is generally less volatile from period to period, as it is not affected by changes in the price received for by-product metals. It is, however, significantly affected by the relative mix of copper concentrate and finished zinc production, where the sale of the copper will occur later, and an increase in production of copper metal will tend to result in an increase in zinc cash cost under this measure.

-Zinc cash cost, net of by-product credits - In order to calculate the net cost to produce and sell zinc, the net of by-product credits measure subtracts the revenues realized from the sale of the metals other than zinc. The by-product revenues from copper, gold, and silver are significant and are integral to the economics of our Manitoba operation. The economics that support our decision to produce and sell zinc would be different if we did not receive revenues from the other significant metals being extracted and processed. This measure provides management and investors with an indication of the minimum zinc price consistent with positive operating margins, assuming realized by-product metal prices are consistent with those prevailing during the reporting period. It also serves as an important operating statistic that management and investors utilize to measure our operating performance at our Manitoba operation versus that of our competitors. However, it is important to understand that if by-product metal prices decline alongside zinc prices, the zinc cash cost net of by-product credits would increase, requiring a higher zinc price than that reported to maintain positive cash flows and operating margins.

-Zinc sustaining cash cost, net of by-product credits - This measure is an extension of zinc cash cost that includes cash sustaining capital expenditures, capitalized exploration, net smelter returns royalties, as well as accretion and amortization for expected decommissioning activities for producing assets. It does not include corporate selling and administrative expenses. It provides a more fulsome measurement of the cost of sustaining production than zinc cash cost, which is focused on operating costs only.

Effective September 30, 2020 and for all comparably disclosed periods, we have included the period's deferred revenue amortization as a by-product credit to reflect the net cost of producing and selling the period's precious metals under our streaming arrangements as we believe doing so allows management and our investors to better evaluate the operating performance of the underlying operations. The variable consideration adjustment required under IFRS 15 related to prior periods is not included as a by-product credit in the current period and hence is disclosed as an adjustment in the non-IFRS cash cost measure reconciliation.

The tables below present a detailed build-up of zinc cash cost and zinc sustaining cash cost, net of by-product credits, for the Manitoba business unit, and reconciliations between zinc cash cost, net of by-product credits, to the most comparable IFRS measures of cost of sales for the three and nine months ended September 30, 2020 and 2019. Zinc cash cost, net of by-product credits, may not calculate exactly based on amounts presented in the tables below due to rounding.

Manitoba	Three months ended		Nine months ended
(in thousands)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net pounds of zinc produced1	67,395	63,138	203,458	195,140
1 Contained zinc in concentrate.

53

Manitoba	Three months ended				Nine months ended
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Cash cost per pound of zinc produced	$000s	$/lb	$000s	$/lb	$000s	$/lb	$000s	$/lb
Cash cost, before by-product credits1	94,210	1.39	96,976	1.54	292,435	1.44	302,537	1.55
By-product credits	(92,630)	(1.37)	(63,472)	(1.01)	(264,397)	(1.30)	(215,260)	(1.10)
Zinc cash cost, net of by-product credits	1,580	0.02	33,504	0.53	28,038	0.14	87,277	0.45
1 For additional detail on cash cost, before by-product credits please see page 49 of this MD&A.

Manitoba	Three months ended						Nine months ended
	Sep. 30, 2020			Sep. 30, 2019			Sep. 30, 2020			Sep. 30, 2019
Supplementary cash cost information	$000s		$/lb 1	$000s		$/lb 1	$000s		$/lb 1	$000s		$/lb 1
By-product credits2:
Copper	30,820		0.46	25,372		0.40	95,939		0.47	103,653		0.53
Gold3	51,994		0.77	32,354		0.51	146,003		0.72	92,829		0.48
Silver3	7,650		0.11	4,762		0.08	18,432		0.09	15,285		0.08
Other	2,166		0.03	984		0.02	4,023		0.02	3,493		0.02
Total by-product credits	92,630		1.37	63,472		1.01	264,397		1.30	215,260		1.10
Reconciliation to IFRS:
Cash cost, net of by-product credits	1,580			33,504			28,038			87,277
By-product credits	92,630			63,472			264,397			215,260
Treatment and refining charges	(4,312	)		(4,812	)		(15,592	)		(17,857	)
Share-based compensation expenses	322			(145	)		406			144
Change in product inventory	(2,595	)		3,317			25			(7,680	)
Royalties	2,835			1,518			6,267			5,258
Depreciation and amortization4	42,977			35,050			129,830			98,422
Cost of sales5	133,437			131,904			413,371			380,824
1 Per pound of zinc produced.
2 By-product credits are computed as revenue per financial statements, amortization of deferred revenue and pricing and volume adjustments. For more information please see the realized price reconciliation table on page 27.
3 Gold and silver by-product credits do not include variable consideration adjustments with respect to stream arrangements.
4 Depreciation is based on concentrate sold.
5 As per IFRS financial statements.

54

Manitoba	Three months ended				Nine months ended
	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Sustaining cash cost per pound of zinc produced	$000s	$/lb	$000s	$/lb	$000s	$/lb	$000s	$/lb
Zinc cash cost, net of by-product credits	1,580	0.02	33,504	0.53	28,038	0.14	87,277	0.45
Cash sustaining capital expenditures	40,107	0.60	37,591	0.60	112,205	0.55	96,033	0.49
Capitalized exploration	-	-	1,589	0.03	-	-	3,585	0.02
Royalties	2,835	0.04	1,518	0.02	6,267	0.03	5,258	0.03
Sustaining cash cost per pound of zinc produced	44,522	0.66	74,202	1.18	146,510	0.72	192,152	0.98

55

Combined Unit Cost & Zinc Plant Unit Cost Reconciliation

Combined unit cost ("unit cost") and zinc plant unit cost is a non-IFRS measure that management uses as a key performance indicator to assess the performance of our mining and milling operations. Combined unit cost and zinc plant unit cost are calculated by dividing the cost of sales by mill throughput and refined zinc metal produced, respectively. This measure is utilized by management and investors to assess our cost structure and margins and compare it to similar information provided by other companies in our industry. Unlike cash cost, this measure is not impacted by variability in by-product commodity prices since there are no by-product deductions; costs associated with profit-sharing and similar costs are excluded because of their correlation to external metal prices. In addition, the unit costs are reported in the functional currency of the operation which minimizes the impact of foreign currency fluctuations. In all, the unit cost measures provide an alternative perspective on operating cost performance with minimal impact from external market prices. In the first half of 2020, as a result of the temporary suspension of operations in Peru, fixed overhead production costs incurred during the suspension were directly charged to cost of sales. These costs did not contribute to production of inventory and were therefore excluded from the calculation of combined unit costs.

The tables below present a detailed combined unit cost and zinc plant unit costs for the Manitoba business unit and combined unit cost for the Peru business unit, and reconciliations between these measures to the most comparable IFRS measures of cost of sales for the three and nine months ended September 30, 2020 and 2019.

Peru	Three months ended		Nine months ended
(in thousands except unit cost per tonne)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Combined unit cost per tonne processed
Mining	18,220	18,274	45,757	63,884
Milling	42,836	38,064	94,877	116,053
G&A 1	12,538	14,791	28,778	41,700
Other G&A 2	89	13	651	288
Unit cost	73,683	71,142	170,063	221,925
Tonnes ore milled	7,481	8,240	18,556	23,913
Combined unit cost per tonne	9.85	8.63	9.16	9.28
Reconciliation to IFRS:
Unit cost	73,683	71,142	170,063	221,925
Freight & other	10,201	13,375	24,805	37,895
Other G&A	(89)	(13)	(651)	(288)
Share-based compensation expenses	89	(28)	74	48
Inventory adjustments	-	385	2,221	604
Change in product inventory	4,824	(5,075)	2,666	(10,723)
Royalties	1,664	1,401	3,722	4,572
Overhead costs related to suspension of activities (cash)	-	-	15,810	-
Depreciation and amortization	53,021	47,236	133,414	152,188
Cost of sales3	143,393	128,423	352,124	406,221
1 G&A as per cash cost reconciliation above.
2 Other G&A primarily includes profit sharing costs.
3 As per IFRS financial statements.

56

Manitoba	Three months ended				Nine months ended
(in thousands except tonnes ore milled and unit cost per tonne)	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Combined unit cost per tonne processed
Mining	42,224		43,525		131,711		140,637
Milling	11,901		12,118		34,910		35,873
G&A 1	11,909		11,697		37,033		35,475
Less: G&A allocated to zinc metal production	(3,707	)	(3,462	)	(11,130	)	(9,541	)
Less: Other G&A related to profit sharing costs	(10	)	12		(10	)	(85	)
Unit cost	62,317		63,890		192,514		202,359
USD/CAD implicit exchange rate	1.33		1.32		1.35		1.33
Unit cost - C$	82,962		84,364		260,410		269,034
Tonnes ore milled	657,895		649,755		2,019,778		1,967,155
Combined unit cost per tonne - C$	126		130		129		137
Reconciliation to IFRS:
Unit cost	62,317		63,890		192,514		202,359
Freight & other	6,360		6,272		20,126		19,900
Refined (zinc)	17,504		18,552		53,063		52,795
G&A allocated to zinc metal production	3,707		3,462		11,130		9,541
Other G&A related to profit sharing	10		(12	)	10		85
Share-based compensation expenses	322		(145	)	406		144
Change in product inventory	(2,595	)	3,317		25		(7,680	)
Royalties	2,835		1,518		6,267		5,258
Depreciation and amortization	42,977		35,050		129,830		98,422
Cost of sales2	133,437		131,904		413,371		380,824
1 G&A as per cash cost reconciliation above.
2 As per IFRS financial statements.

57

Manitoba	Three months ended				Nine months ended
(in thousands except zinc plant unit cost per pound)	Sep. 30, 2020		Sep. 30, 2019		Sep. 30, 2020		Sep. 30, 2019
Zinc plant unit cost
Zinc plant costs	17,504		18,552		53,063		52,795
G&A 1	11,909		11,697		37,033		35,475
Less: G&A allocated to other areas	(8,192	)	(8,247	)	(25,893	)	(25,849	)
Less: Other G&A related to profit sharing	(10	)	12		(10	)	(85	)
Zinc plant unit cost	21,211		22,014		64,193		62,336
USD/CAD implicit exchange rate	1.33		1.32		1.35		1.33
Zinc plant unit cost - C$	28,246		29,077		86,701		82,839
Refined metal produced (in pounds)	59,123		53,614		182,584		166,504
Zinc plant unit cost per pound - C$	0.48		0.54		0.47		0.50
Reconciliation to IFRS:
Zinc plant unit cost	21,211		22,014		64,193		62,336
Freight & other	6,360		6,272		20,126		19,900
Mining	42,224		43,525		131,711		140,637
Milling	11,901		12,118		34,910		35,873
G&A allocated to other areas	8,192		8,247		25,893		25,849
Other G&A related to profit sharing	10		(12	)	10		85
Share-based compensation expenses	322		(145	)	406		144
Change in product inventory	(2,595	)	3,317		25		(7,680	)
Royalties	2,835		1,518		6,267		5,258
Depreciation and amortization	42,977		35,050		129,830		98,422
Cost of sales2	133,437		131,904		413,371		380,824
1 G&A as per cash cost reconciliation above.
2 As per IFRS financial statements.

ACCOUNTING CHANGES AND CRITICAL ESTIMATES

New standards and interpretations adopted

For information on new standards and interpretations adopted, refer to note 4 of our September 30, 2020 consolidated interim financial statements.

Estimates and judgements

The preparation of the consolidated interim financial statements in conformity with IFRS requires us to make judgements, estimates and assumptions that affect the application of accounting policies, reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated interim financial statements, and reported amounts of revenue and expenses during the reporting period. Actual results may differ from these estimates.

We review these estimates and underlying assumptions on an ongoing basis based on our experience and other factors, including expectations of future events that we believe to be reasonable under the circumstances. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Certain accounting estimates and judgements have been identified as being "critical" to the presentation of our financial condition and results of operations because they require us to make subjective and/or complex judgments about matters that are inherently uncertain; or there is a reasonable likelihood that materially different amounts could be reported under different conditions or using different assumptions and estimates.

58

For more information on judgements and estimates, refer to note 2 of our September 30, 2020 consolidated interim financial statements.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate internal control over financial reporting ("ICFR"). ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.

We did not make any changes to ICFR during the three months ended September 30, 2020 that materially affected or are reasonably likely to materially affect our ICFR.

NOTES TO READER

Forward-Looking Information

This MD&A contains forward-looking information within the meaning of applicable Canadian and United States securities legislation. All information contained in this MD&A, 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 MD&A is qualified by this cautionary note.

Forward-looking information includes, but is not limited to, production, cost and capital and exploration expenditure guidance and potential revisions to such guidance, anticipated production at our mines and processing facilities, expectations regarding the impact of the COVID-19 pandemic on our operations, financial condition and prospects, the ability to complete the shaft inspection activities at 777 in the anticipated timeframe, the ability to identify the extent of any damage to the 777 mine shaft, the expected timeline and costs to complete repairs at the 777 mine, the ability to continue production and use of the 777 mine′s ramp access as a temporary substitute to the shaft, the expected timeline to resume full production at 777, expectations regarding the timing of mining activities at the Pampacancha deposit and the related capital expenditures, the anticipated timing, cost and benefits of developing the Rosemont project and the outcome of litigation challenging Rosemont's permits, expectations regarding the Lalor gold strategy, including the refurbishment of the New Britannia mill and the potential to increase 2021 gold production, the possibility of converting inferred mineral resource estimates to higher confidence categories, the potential and our anticipated plans for advancing our mining properties surrounding Constancia and the Mason project, anticipated mine plans, anticipated metals prices and the anticipated sensitivity of our financial performance to metals prices, events that may affect our operations and development projects, anticipated cash flows from operations and related liquidity requirements, the anticipated effect of external factors on revenue, such as commodity prices, estimation of mineral reserves and resources, mine life projections, reclamation costs, economic outlook, government regulation of mining operations, and business and acquisition strategies. 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 we identified and were applied by us in drawing conclusions or making forecasts or projections set out in the forward-looking information include, but are not limited to:

-our ability to continue to operate safely and at full capacity during the COVID-19 pandemic;

-the outcome of the inspections at the 777 mine, the ability and cost to remedy the damage and resume production at the 777 mine and the ability to mitigate production while the 777 shaft is not operating;

-the ability to achieve production and unit cost guidance;

59

-no significant interruptions to our operations or significant delays to our development projects in Manitoba and Peru due to the COVID-19 pandemic;

-the timing of development and production activities on the Pampacancha deposit;

-the timing of the Consulta Previa and permitting process for mining the Pampacancha deposit;

-the timing for reaching additional agreements with individual community members and no significant unanticipated delays to the development of Pampacancha;

-the successful completion of the New Britannia project on budget and on schedule;

-the successful outcome of the Rosemont litigation;

-the success of mining, processing, exploration and development activities;

-the scheduled maintenance and availability of our processing facilities;

-the accuracy of geological, mining and metallurgical estimates;

-anticipated metals prices and the costs of production;

-the supply and demand for metals we produce;

-the supply and availability of all forms of energy and fuels at reasonable prices;

-no significant unanticipated operational or technical difficulties;

-the execution of our business and growth strategies, including the success of our strategic investments and initiatives;

-the availability of additional financing, if needed;

-the ability to complete project targets on time and on budget and other events that may affect our ability to develop our projects;

-the timing and receipt of various regulatory and governmental approvals;

-the availability of personnel for our exploration, development and operational projects and ongoing employee relations;

-maintaining good relations with the labour unions that represent certain of our employees in Manitoba and Peru;

-maintaining good relations with the communities in which we operate, including the neighbouring Indigenous communities;

-no significant unanticipated challenges with stakeholders at our various projects;

-no significant unanticipated events or changes relating to regulatory, environmental, health and safety matters;

-no contests over title to our properties, including as a result of rights or claimed rights of Indigenous peoples or challenges to the validity of our unpatented mining claims;

-the timing and possible outcome of pending litigation and no significant unanticipated litigation;

-certain tax matters, including, but not limited to current tax laws and regulations and the refund of certain value added taxes from the Canadian and Peruvian governments; and

-no 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 our operations, financial condition, projects and prospects, the possibility of a global recession arising from the COVID-19 pandemic and attempts to control it, the political situation in Peru, 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 our projects (including risks associated with the litigation affecting the Rosemont project), risks related to the U.S. district court's recent decisions to set aside the U.S. Forest Service's FROD and the Biological Opinion for Rosemont and related appeals and other legal challenges, risks related to the new Lalor mine plan, including the schedule for the refurbishment of the New Britannia mill and the ability to convert inferred mineral resource estimates to higher confidence categories, risks related to the schedule for mining the Pampacancha deposit (including risks associated with COVID-19, the Consulta Previa process, risks associated with reaching additional agreements with individual community members and risks associated with the rainy season in Peru and the impact of any schedule delays), dependence on key personnel and employee and union relations, risks related to political or social unrest or change, risks in respect of Indigenous and community relations, rights and title claims, operational risks and hazards, including the cost of maintaining and upgrading the Company's tailings management facilities and any unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, depletion of our reserves, volatile financial markets that may affect our ability to obtain additional financing on acceptable terms, the failure to obtain required approvals or clearances from government authorities on a timely basis, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources, and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, our ability to comply with our pension and other post-retirement obligations, our ability to abide by the covenants in our debt instruments and other material contracts, tax refunds, hedging transactions, as well as the risks discussed under the heading "Risk Factors" in our most recent Annual Information Form.

60

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. We do not assume any obligation to update or revise any forward-looking information after the date of this MD&A or to explain any material difference between subsequent actual events and any forward-looking information, except as required by applicable law.

Note to United States Investors

This MD&A has been prepared in accordance with the requirements of the securities laws in effect in Canada, which may differ materially from the requirements of United States securities laws applicable to U.S. issuers.

Qualified Person

The technical and scientific information in this MD&A related to the Constancia mine and Rosemont project has been approved by Cashel Meagher, P. Geo, our Senior Vice President and Chief Operating Officer. The technical and scientific information related to our other material mineral projects contained in this MD&A has been approved by Olivier Tavchandjian, P. Geo, our Vice President, Exploration and Geology. Messrs. Meagher and Tavchandjian are qualified persons pursuant to NI 43-101. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources at Hudbay's material properties, as well as data verification procedures and a general discussion of the extent to which the estimates of scientific and technical information may be affected by any known environmental, permitting, legal title, taxation, sociopolitical, marketing or other relevant factors, please see the technical reports for our material properties as filed by us on SEDAR at www.sedar.com.

61

SUMMARY OF RESULTS

The following unaudited tables set out a summary of quarterly and annual results for the Company:

		2020						2019										2018
		Q3		Q2		Q1		2019		Q4		Q3		Q2		Q1		2018		Q4
Consolidated Financial Condition ($000s)
Cash and cash equivalents		$	449,014	$	391,136	$	305,997	$	396,146	$	396,146	$	398,438	$	489,527	$	485,867	$	515,497	$	515,497
Total long-term debt		1,175,104		988,418		988,074		985,255		985,255		976,272		977,196		977,413		981,030		981,030
Net debt1		726,090		597,282		682,077		589,109		589,109		577,834		487,669		491,546		465,533		465,533
Consolidated Financial Performance ($000s except per share amounts)
Revenue		$	316,108	$	208,913	$	245,105	$	1,237,439	$	324,485	$	291,282	$	329,414	$	292,258	$	1,472,366	$	351,773
Cost of sales		276,830		221,567		267,096		1,085,897		298,852		260,327		286,271		240,446		1,098,626		276,547
Earnings (loss) before tax		(23,944)		(74,604)		(81,452)		(452,763)		(42,352)		(348,367)		(43,931)		(18,108)		170,837		17,650
Earnings (loss)		(23,955)		(51,901)		(76,134)		(343,810)		(1,455)		(274,796)		(54,145)		(13,412)		85,416		(3,510)
Basic and diluted (loss) earnings per share		$	(0.09)	$	(0.20)	$	(0.29)	$	(1.32)	$	(0.01)	$	(1.05)	$	(0.21)	$	(0.05)	$	0.33	$	(0.01)
Adjusted (loss) earnings per share 1		$	(0.10)	$	(0.15)	$	(0.15)	$	(0.18)	$	(0.09)	$	(0.09)	$	(0.03)	$	0.03	$	0.40	$	0.05
Operating cash flow before change in non-cash working capital 1		84,383		29,457		41,951		307,284		69,141		71,204		81,259		85,684		501,352		104,264
Adjusted EBITDA 1, 2		96.1		49.1		55.0		358.5		82.2		76.2		95.9		104.2		554.8		120.7
Consolidated Operational Performance
Contained metal in concentrate produced 3
Copper	tonnes	25,395		18,026		24,635		137,719		32,422		36,422		30,363		37,972		154,550		37,238
Gold	ounces	29,277		32,614		30,355		114,692		32,712		28,319		28,099		25,562		119,882		28,051
Silver	ounces	671,685		580,817		767,692		3,585,330		930,137		924,191		811,807		919,195		3,954,469		1,014,684
Zinc	tonnes	30,570		31,222		30,495		119,106		30,592		28,639		31,838		28,037		115,588		27,408
Molybdenum	tonnes	392		124		354		1,272		372		262		334		304		904		329
Payable metal in concentrate sold
Copper	tonnes	25,903		15,951		24,072		128,519		33,715		29,916		33,171		31,717		147,923		36,350
Gold	ounces	30,605		30,590		26,574		108,999		30,344		25,488		30,538		22,629		113,097		25,861
Silver	ounces	705,495		541,785		575,922		3,452,926		909,423		756,296		804,301		982,906		3,372,353		909,500
Zinc 4	tonnes	26,520		27,604		26,792		104,319		28,001		29,140		24,224		22,954		115,723		31,134
Molybdenum	tonnes	313		120		431		1,186		199		334		419		234		819		447
Cash cost 1	$/lb	$	0.65	$	0.29	$	0.98	$	0.83	$	0.90	$	0.71	$	0.95	$	0.81	$	0.66	$	0.63
All-in sustaining cash cost 1	$/lb	$	2.25	$	1.91	$	2.17	$	1.86	$	2.22	$	1.69	$	1.98	$	1.58	$	1.32	$	1.49
1 Net debt, adjusted (loss) earnings per share, adjusted EBITDA, cash cost, and all-in sustaining cash cost per pound of copper produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A. All comparative cash cost and all-in sustaining cash cost per pound of copper produced, net of by-product credits figures have been restated as indicated on page 45.
2 In millions.
3 Metal reported in concentrate is prior to deductions associated with smelter contract terms.
4 Includes refined zinc metal sold.

62

		2020						2019										2018
		Q3		Q2		Q1		2019		Q4		Q3		Q2		Q1		2018		Q4
Peru Operations
Ore mined1	tonnes	8,455,668		2,775,286		6,985,212		33,308,369		8,049,063		8,413,367		8,211,166		8,634,773		34,372,156		7,329,423
Copper	%	0.31		0.34		0.34		0.43		0.41		0.44		0.39		0.47		0.49		0.47
Gold	g/tonne	0.03		0.04		0.03		0.04		0.04		0.05		0.04		0.04		0.05		0.05
Silver	g/tonne	2.55		2.90		3.10		3.76		3.87		3.93		3.68		3.55		4.15		4.16
Molybdenum	%	0.02		0.02		0.01		0.02		0.02		0.02		0.01		0.01		0.01		0.01
Ore milled	tonnes	7,480,655		4,355,482		6,719,466		31,387,281		7,474,136		8,240,344		7,679,739		7,993,062		31,282,610		7,657,943
Copper	%	0.33		0.34		0.34		0.42		0.42		0.44		0.37		0.46		0.47		0.48
Gold	g/tonne	0.03		0.04		0.03		0.04		0.04		0.04		0.04		0.04		0.05		0.06
Silver	g/tonne	2.68		3.04		3.13		3.64		3.86		3.76		3.40		3.53		4.08		4.26
Molybdenum	%	0.02		0.01		0.02		0.01		0.00		0.02		0.01		0.01		0.01		0.01
Copper recovery	%	83.3		76.6		84.3		85.7		85.6		86.0		84.7		86.2		82.6		84.8
Gold recovery	%	51.6		43.4		50.2		48.1		50.0		48.3		41.3		52.2		47.4		48.5
Silver recovery	%	66.7		59.6		68.2		68.2		68.2		68.9		65.7		69.9		66.5		71.6
Molybdenum recovery	%	30.4		19.9		35.0		26.5		30.8		20.2		28.9		26.8		21.6		30.5
Contained metal in concentrate
Copper	tonnes	20,803		11,504		19,290		113,825		26,659		31,091		24,232		31,843		122,178		30,834
Gold	ounces	3,333		2,311		3,062		19,723		5,007		5,565		3,794		5,357		24,189		7,522
Silver	ounces	430,208		253,687		461,302		2,504,769		631,774		686,258		551,807		634,930		2,729,859		750,747
Molybdenum	tonnes	392		124		354		1,272		372		262		334		304		904		329
Precious metals2	ounces	8,167		5,161		8,245		55,506		14,033		15,369		11,677		14,427		63,187		18,247
Payable metal sold
Copper	tonnes	21,654		9,023		19,247		106,184		28,430		25,314		25,778		26,662		116,449		31,252
Gold	ounces	3,753		1,317		2,618		18,956		4,824		3,858		4,056		6,218		20,420		7,262
Silver	ounces	433,595		242,519		361,591		2,452,496		666,839		529,139		504,259		752,259		2,255,700		672,756
Molybdenum	tonnes	313		120		431		1,186		199		334		419		234		819		447
Peru combined unit operating cost,3, 4	$/tonne	$	9.85	$	7.77	$	9.31	$	9.50	$	10.20	$	8.63	$	10.39	$	8.87	$	9.44	$	9.88
Peru cash cost4	$/lb	$	1.54	$	1.31	$	1.42	$	1.16	$	1.36	$	1.06	$	1.39	$	0.90	$	1.14	$	1.05
Peru sustaining cash cost4	$/lb	$	2.29	$	1.84	$	1.91	$	1.65	$	2.17	$	1.53	$	1.87	$	1.13	$	1.37	$	1.40
1 Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not fully reconcile to ore milled.
2 Precious metals production includes gold and silver production on a gold-equivalent basis. For 2018 and 2019, silver is converted to gold at a ratio of 70:1. For 2020, silver is converted to gold at a ratio of 89:1.
3 Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.
4 Combined unit costs,  cash cost, and sustaining cash cost per pound of copper produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A. All comparative cash cost and all-in sustaining cash cost per pound of copper produced, net of by-product credits figures have been restated as indicated on page 45.

63

		2020			2019					2018
		Q3	Q2	Q1	2019	Q4	Q3	Q2	Q1	2018 1	Q4
Manitoba Operations
Lalor ore mined	tonnes	357,213	407,408	421,518	1,536,780	390,140	346,456	411,701	388,483	1,260,241	317,616
Copper	%	0.66	0.77	0.70	0.75	0.80	0.68	0.73	0.76	0.74	0.82
Zinc	%	5.98	6.05	5.43	6.36	6.20	6.16	6.34	6.70	6.25	6.80
Gold	g/tonne	2.28	2.64	2.27	2.16	2.63	2.21	2.12	1.68	2.19	2.09
Silver	g/tonne	21.23	28.4	26.18	25.51	28.38	25.56	22.32	25.96	25.39	24.66
777 ore mined	tonnes	264,905	281,890	279,925	1,109,782	269,342	273,319	288,599	278,522	966,567	244,613
Copper	%	0.98	1.72	1.18	1.37	1.17	1.33	1.34	1.65	1.47	1.76
Zinc	%	3.95	4.13	4.11	3.22	3.33	3.01	3.37	3.18	4.43	3.46
Gold	g/tonne	2.01	1.91	1.82	1.61	1.52	1.63	1.60	1.70	1.83	1.61
Silver	g/tonne	24.25	25.73	23.86	18.67	18.52	15.42	18.92	21.75	28.34	24.37
Reed ore mined	tonnes	-	-	-	-	-	-	-	-	326,363	-
Copper	%	-	-	-	-	-	-	-	-	3.35	-
Zinc	%	-	-	-	-	-	-	-	-	0.90	-
Gold	g/tonne	-	-	-	-	-	-	-	-	0.77	-
Silver	g/tonne	-	-	-	-	-	-	-	-	9.08	-
Stall Concentrator:
Ore milled	tonnes	335,739	334,601	369,787	1,290,300	310,622	318,539	339,616	321,523	1,201,466	313,995
Copper	%	0.68	0.76	0.70	0.73	0.80	0.64	0.71	0.78	0.72	0.84
Zinc	%	6.11	6.16	5.38	6.39	6.24	6.22	6.36	6.75	6.38	6.83
Gold	g/tonne	2.35	2.70	2.28	2.13	2.60	2.12	2.08	1.75	2.15	2.09
Silver	g/tonne	22.08	28.72	26.28	25.48	28.12	25.16	22.03	26.89	25.27	24.58
Copper recovery	%	84.0	86.6	86.5	85.9	85.9	84.4	85.6	87.2	85.7	88.6
Zinc recovery	%	92.7	92.4	91.4	91.1	90.7	91.8	91.2	90.7	92.8	91.9
Gold recovery	%	57.4	62.3	60.9	56.8	61.1	54.3	52.5	59.1	57.6	57.1
Silver recovery	%	57.5	62.1	61.1	60.4	62.9	57.4	56.5	64.2	59.2	60.7
Flin Flon Concentrator:
Ore milled	tonnes	322,156	324,906	332,589	1,362,006	374,529	331,216	367,017	289,244	1,423,744	259,569
Copper	%	0.99	1.52	1.11	1.27	1.11	1.22	1.26	1.55	1.90	1.73
Zinc	%	4.07	4.41	4.36	3.78	4.05	3.64	3.84	3.49	3.71	3.55
Gold	g/tonne	1.99	1.99	1.88	1.72	1.75	1.74	1.71	1.66	1.63	1.62
Silver	g/tonne	24.01	25.56	24.33	19.84	20.56	17.36	19.82	21.78	23.48	24.79
Copper recovery	%	83.9	87.3	84.1	88.0	86.9	89.1	88.0	88.1	92.3	90.4
Zinc recovery	%	87.9	84.9	85.0	85.5	85.8	86.7	86.0	82.9	84.2	83.7
Gold recovery	%	55.3	58.6	53.5	59.4	56.1	59.1	61.3	61.8	64.5	62.8
Silver recovery	%	42.0	50.7	44.3	50.8	49.2	48.7	53.0	52.3	60.2	54.8
1 Mining activities at Reed were completed in August 2018.

64

		2020						2019										2018
		Q3		Q2		Q1		2019		Q4		Q3		Q2		Q1		2018		Q4
Manitoba Operations (continued)
Total Manitoba contained metal in concentrate produced
Copper	tonnes	4,592		6,522		5,345		23,354		5,763		5,331		6,131		6,129		32,272		6,404
Zinc	tonnes	30,570		31,222		30,495		119,106		30,592		28,639		31,838		28,037		115,588		27,408
Gold	ounces	25,944		30,303		27,293		94,969		27,705		22,754		24,305		20,205		95,693		20,529
Silver	ounces	241,477		327,130		306,390		1,080,561		298,363		237,933		260,000		284,265		1,224,610		263,937
Precious metals1	ounces	28,657		33,979		30,736		110,406		31,967		26,153		28,019		24,266		113,188		24,300
Total Manitoba payable metal sold
Copper	tonnes	4,249		6,928		4,825		22,335		5,285		4,602		7,393		5,055		31,474		5,098
Zinc2	tonnes	26,520		27,604		26,792		104,346		28,001		29,140		24,224		22,954		115,723		31,134
Gold	ounces	26,852		29,273		23,956		90,043		25,520		21,630		26,482		16,411		92,677		18,599
Silver	ounces	271,900		299,266		214,331		1,000,430		242,584		227,157		300,042		230,647		1,116,653		236,744
Manitoba combined unit operating cost3,4	C$/tonne	$	126	$	135	$	127	$	134	$	128	$	130	$	135	$	146	$	130	$	143
Manitoba cash cost4	$/lb	$	(3.41)	$	(1.52)	$	(0.62)	$	(0.75)	$	(1.26)	$	(1.31)	$	(0.79)	$	0.29	$	(1.16)	$	(1.47)
Manitoba sustaining cash cost4	$/lb	$	0.83	$	1.15	$	2.53	$	2.06	$	1.83	$	2.15	$	1.55	$	2.68	$	0.66	$	1.16
1 Precious metals production includes gold and silver production on a gold-equivalent basis. For 2018 and 2019, silver is converted to gold at a ratio of 70:1. For 2020, silver is converted to gold at a ratio of 89:1.
2 Includes refined zinc metal sold.
3 Reflects combined mine, mill and G&A costs per tonne of milled ore.
4 Combined unit costs, cash cost, and sustaining cash cost per pound of copper produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information and a detailed reconciliation, please see the discussion under the "Non-IFRS Financial Reporting Measures" section of this MD&A. All comparative cash cost and all-in sustaining cash cost per pound of copper produced, net of by-product credits figures have been restated as indicated on page 45.

65

EX-99.3

FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE

I, Peter Kukielski, President and Chief Executive Officer of Hudbay Minerals Inc., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Hudbay Minerals Inc. (the "issuer") for the interim period ended September 30, 2020.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1Control framework: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

5.2N/A

5.3N/A

6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on July 1, 2020 and ended on September 30, 2020 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date:November 3, 2020

(signed) Peter Kukielski

Peter Kukielski
President and Chief Executive Officer

EX-99.4

FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE

I, Steve Douglas, Senior Vice President and Chief Financial Officer of Hudbay Minerals Inc., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Hudbay Minerals Inc. (the "issuer") for the interim period ended September 30, 2020.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1Control framework: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is the Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

5.2N/A

5.3N/A

6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on July 1, 2020 and ended on September 30, 2020 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date:November 3, 2020

(signed) Steve Douglas

Steve Douglas
Senior Vice President and Chief Financial Officer

EX-99.5

	TSX, NYSE - HBM 2020 No. 22
	News Release

Hudbay Announces Third Quarter 2020 Results

Toronto, Ontario, November 3, 2020 - Hudbay Minerals Inc. ("Hudbay" or the "company") (TSX, NYSE:HBM) today released its third quarter 2020 financial results. All amounts are in U.S. dollars, unless otherwise noted.

Third Quarter Operating and Financial Results

• Delivered a solid operating quarter with steady production and cost performance from the Manitoba and Peru operations, including an increase in copper production over the first two quarters of 2020 and strong gold production driven by increased gold grades at Lalor.
• Third quarter net loss was $24.0 million or $0.09 per share. Third quarter adjusted net loss^[i] per share was $0.10 and adjusted EBITDAⁱ was $96.1 million.
• Operating cash flow before change in non-cash working capital increased to $84.4 million in the third quarter of 2020, from $29.5 million in the second quarter of 2020, due to higher realized prices and increased sales volumes at Constancia after the successful ramp up to full production.
• Cash and cash equivalents increased during the third quarter to $449.0 million as at September 30, 2020 as a result of the net proceeds received from the refinancing of the 2023 notes and cash generated from operations, partially offset by capital investments in the New Britannia refurbishment project and the company's Peru business and interest payments.

On Track to Achieve Annual Guidance

• Owing to the outstanding performance from the Manitoba operations during the first three quarters of 2020, and the steady operations at Constancia since the eight-week suspension earlier this year, Hudbay continues to expect to meet all production, consolidated sustaining capital expenditures and unit cost guidance for 2020, despite ongoing COVID-19 operating challenges.
• Fourth quarter 2020 production and sales volumes in Manitoba will be impacted by the production interruption at the 777 mine. With the implementation of production mitigation plans, the company continues to expect to achieve full year guidance for Manitoba.

Executing on Growth Initiatives

• The New Britannia gold mill refurbishment project is ahead of schedule and within budget, with detailed engineering approximately 99% complete and construction activities approximately 45% complete. Commissioning of the gold plant is expected in mid-2021, three months earlier than originally planned.
• Early mining of the gold zone at Lalor is well-underway with underground development in the gold rich lenses advancing ahead of schedule in preparation for the mid-2021 ramp up of New Britannia. The New Britannia gold mill is expected to increase average annual gold production from Lalor to over 150,000 ounces commencing in 2022.

• Successfully advanced individual land-user agreements at Pampacancha with 79% of the land turned over to Hudbay as of September 30, 2020 (as compared to approximately 33% as of June 30, 2020).

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• Constancia North follow-up drilling continues to intersect porphyry and skarn mineralization north of the Constancia pit, including one intersection of 78.6 metres grading 1.39% copper, 305 grams per tonne molybdenum, 0.43 grams per tonne gold and 16.0 grams per tonne silver.
• Completed offering of $600.0 million of 6.125% senior notes due 2029 and redeemed all of the outstanding $400.0 million of 7.250% senior notes due 2023.

"We continue to be pleased with the team's ability to maintain strong operating and financial performance while executing on our growth initiatives," said Peter Kukielski, President and Chief Executive Officer. "Our Peru operations have been successfully running at full capacity after having been temporarily suspended in the second quarter due to government-imposed COVID-19 restrictions, and we have maintained positive momentum at Pampacancha. Our Manitoba operations had the best quarterly cost performance in the last two years, demonstrating our focus on continuous improvement initiatives and cost control. The New Britannia project is on budget and ahead of schedule with first gold production expected three months earlier in 2021 than originally planned. The 777 skip incident was an unfortunate event but we are grateful all underground personnel were safely evacuated and we are hopeful the repairs will be completed quickly. We are proud of our team's achievement of several significant milestones while adapting to the ever-changing COVID-19 environment and focus on keeping our workforce and communities safe during this pandemic."

Summary of Third Quarter Results

Consolidated copper production in the third quarter of 2020 was 25,395 tonnes, a 41% increase from the second quarter of 2020, primarily as a result of the successful ramp up at Constancia after the eight-week temporary suspension from mid-March to mid-May. Consolidated gold production decreased by 10% compared to the second quarter of 2020 due to lower production from Manitoba as a result of the planned maintenance at the Lalor mine in the third quarter and the record quarterly gold production achieved in the second quarter in Manitoba. Consolidated zinc production in the third quarter was in line with the second quarter of 2020.

In the third quarter of 2020, consolidated cash cost per pound of copper produced, net of by-product creditsⁱ, was $0.65, higher than the second quarter of 2020 when cash costs, net of by-product credits, were more heavily impacted by the lower cash costs in Manitoba due to the temporary Peru suspension. Incorporating sustaining capital, capitalized exploration, royalties, selling, administrative and regional costs, consolidated all-in sustaining cash cost per pound of copper produced, net of by-product creditsⁱ, in the third quarter of 2020 was $2.25, higher than the prior quarter due to the same factors affecting cash costs, and higher sustaining capital expenditures.

Cash generated from operating activities in the third quarter of 2020 increased to $77.9 million compared to $31.4 million in the second quarter of 2020. Operating cash flow before change in non-cash working capital was $84.4 million during the third quarter of 2020, reflecting an increase of $54.9 million compared to the second quarter of 2020. The increase in operating cash flow is primarily the result of increased sales volumes at Constancia due to the ramp up to full production after the temporary suspension, lower operating costs in Manitoba and improved commodity prices.

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Net loss and loss per share in the third quarter of 2020 were $24.0 million and $0.09, respectively, compared to a net loss and loss per share of $51.9 million and $0.20, respectively, in the second quarter of 2020. During the third quarter of 2020, Hudbay recorded a non-cash adjustment on streaming revenues due to an amendment to the 777 mine plan leading to fewer inferred resources expected to be mined than previously planned as the mine nears its expected closure in 2022. The increased deferred revenue drawdown rate, which is recalculated back to the inception of the stream, resulted in a positive pre-tax non-cash earnings impact of approximately $14.1 million. This was partially offset by $7.3 million in costs primarily relating to the call premium paid to redeem all of the outstanding $400.0 million of 7.25% senior unsecured notes due 2023 (the "Redeemed Notes") and a $3.8 million write-down of unamortized transaction costs related to the Redeemed Notes and the company's revolving credit facilities, which were restructured during the quarter.

Adjusted net lossⁱ and adjusted EBITDAⁱ in the third quarter of 2020 were $25.4 million, or $0.10 per share, and $96.1 million, respectively, after adjusting for the call premium paid on the Redeemed Notes, the write-down of unamortized transaction costs related to the Redeemed Notes and amended credit facilities, and the non-cash adjustment on streaming revenues. This compares to an adjusted net loss and adjusted EBITDA of $51.9 million, or $0.15 per share, and $49.1 million, respectively, in the second quarter of 2020. The increase in adjusted EBITDA in the third quarter of 2020 was primarily due to increased sales volumes in Peru after the successful mine ramp up, lower operating costs in Manitoba and higher realized prices, partially offset by lower sales volumes in Manitoba.

Financial Condition ($000s)	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Cash and cash equivalents	449,014	391,136	396,146
Total long-term debt	1,175,104	988,418	985,255
Net debt1	726,090	597,282	589,109
Working capital	403,441	260,672	271,284
Total assets	4,590,688	4,498,892	4,461,057
Equity	1,684,464	1,706,303	1,848,123

¹ Net debt is a non-IFRS financial performance measure with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release.

Consolidated Financial Performance		Three Months Ended
		Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019
Revenue	$000s	316,108	208,913	291,282
Cost of sales	$000s	276,830	221,567	260,327
Earnings (loss) before tax	$000s	(23,944)	(74,604)	(348,367)
Earnings (loss)	$000s	(23,955)	(51,901)	(274,796)
Basic and diluted earnings (loss) per share	$/share	(0.09)	(0.20)	(1.05)
Adjusted earnings (loss) per share1	$/share	(0.10)	(0.15)	(0.09)
Operating cash flow before change in non-cash working capital	$ millions	84.4	29.5	71.2
Adjusted EBITDA1	$ millions	96.1	49.1	76.2
1 Adjusted loss per share and adjusted EBITDA are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release.

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Consolidated Operational Performance		Three Months Ended
		Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019
Contained metal in concentrate produced1
Copper	tonnes	25,395	18,026	36,422
Gold	ounces	29,277	32,614	28,319
Silver	ounces	671,685	580,817	924,191
Zinc	tonnes	30,570	31,222	28,639
Molybdenum	tonnes	392	124	262
Precious metals2	ounces	36,824	39,140	41,522
Payable metal in concentrate sold
Copper	tonnes	25,903	15,951	29,916
Gold	ounces	30,605	30,590	25,488
Silver	ounces	705,495	541,785	756,296
Zinc3	tonnes	26,520	27,604	29,140
Molybdenum	tonnes	313	120	334
Precious metals2	ounces	38,532	36,677	36,292
Cash cost4	$/lb	0.65	0.29	0.71
All-in sustaining cash cost4	$/lb	2.25	1.91	1.69

¹ Metal reported in concentrate is prior to deductions associated with smelter contract terms.

² Precious metals production includes gold and silver production on a gold-equivalent basis. For 2019, silver is converted to gold at a ratio of 70:1. For 2020, silver is converted to gold at a ratio of 89:1.

³ Includes refined zinc metal sold.

⁴ Cash cost and all-in sustaining cash cost per pound of copper produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release.

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Peru Operations Review

		Three Months Ended
		Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019
Ore mined1	tonnes	8,455,668	2,775,286	8,413,367
Copper	%	0.31	0.34	0.44
Gold	g/tonne	0.03	0.04	0.05
Silver	g/tonne	2.55	2.90	3.93
Molybdenum	%	0.02	0.02	0.02
Ore milled	tonnes	7,480,655	4,355,482	8,240,344
Copper	%	0.33	0.34	0.44
Gold	g/tonne	0.03	0.04	0.04
Silver	g/tonne	2.68	3.04	3.76
Molybdenum	%	0.02	0.01	0.02
Copper recovery	%	83.3	76.6	86.0
Gold recovery	%	51.6	43.4	48.3
Silver recovery	%	66.7	59.6	68.9
Molybdenum recovery	%	30.4	19.9	20.2
Contained metal in concentrate
Copper	tonnes	20,803	11,504	31,091
Gold	ounces	3,333	2,311	5,565
Silver	ounces	430,208	253,687	686,258
Molybdenum	tonnes	392	124	262
Precious metals2	ounces	8,167	5,161	15,369
Payable metal sold
Copper	tonnes	21,654	9,023	25,314
Gold	ounces	3,753	1,317	3,858
Silver	ounces	433,595	242,519	529,139
Molybdenum	tonnes	313	120	334
Combined unit operating cost3,4	$/tonne	9.85	7.77	8.63
Cash cost4	$/lb	1.54	1.31	1.06
Sustaining cash cost4	$/lb	2.29	1.84	1.53

¹ Reported tonnes and grade for ore mined are estimates based on mine plan assumptions and may not reconcile fully to ore milled.

² Precious metals production includes gold and silver production on a gold-equivalent basis.For 2019, silver is converted to gold at a ratio of 70:1. For 2020, silver is converted to gold at a ratio of 89:1.

³ Reflects combined mine, mill and general and administrative ("G&A") costs per tonne of ore milled. Reflects the deduction of expected capitalized stripping costs.

⁴ Combined unit cost, cash cost and sustaining cash cost are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release.

The Constancia team has demonstrated strong operating performance in an environment of strict COVID-19 measures and controls. Hudbay works collaboratively with the health authorities to ensure its workforce and partners adhere to the company's COVID-19 protocols while continuing to operate safely and efficiently.

During the quarter, the Constancia mine produced 20,803 tonnes of copper, 8,167 ounces of precious metals and 392 tonnes of molybdenum. Production results were significantly higher than the second quarter of 2020 as a result of the ramp-up to full production after the temporary suspension of operations until mid-May.

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The ramp-up also resulted in a significant increase in ore milled during the third quarter at Constancia compared to the second quarter of 2020. Compared to the same period in 2019, ore milled was 9% lower due to a deferred plant maintenance shutdown in August, which typically occurs in the second and fourth quarters, as previously disclosed, as well as lower throughput caused by increased ore hardness. Milled copper grades in the third quarter were slightly lower than the second quarter of 2020, in line with the mine plan. Copper recoveries in the third quarter were higher than the second quarter of 2020 due to the processing of stockpile ore after the mill ramp-up in the second quarter.

Combined mine, mill and G&A unit operating costsⁱ in the third quarter of 2020 were higher than the second quarter of 2020, primarily due to abnormally low operating costs during the second quarter as a result of the processing of stockpile ore after the mill ramp up. Unit operating costs in the quarter were within the guidance range for 2020.

Peru's cash cost per pound of copper produced, net of by-product credits, for the three months ended September 30, 2020 was $1.54, higher than the previous quarter primarily due to higher operating costs, as described above, and lower grades. Peru's sustaining cash cost per pound of copper produced, net of by-product credits, for the three months ended September 30, 2020 also increased compared to the prior quarter primarily due to the same factors affecting cash cost as well as accelerated sustaining capital spending following a full ramp up of operations to normal levels in early July 2020 at Constancia.

Production of all metals and unit operating costs at Constancia are expected to be in line with the revised full year guidance for 2020 that was released with second quarter results.

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Manitoba Operations Review

		Three Months Ended
			Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019
Lalor ore mined	tonnes		357,213	407,408	346,456
Copper	%		0.66	0.77	0.68
Zinc	%		5.98	6.05	6.16
Gold	g/tonne		2.28	2.64	2.21
Silver	g/tonne		21.23	28.40	25.56
777 ore mined	tonnes		264,905	281,890	273,319
Copper	%		0.98	1.72	1.33
Zinc	%		3.95	4.13	3.01
Gold	g/tonne		2.01	1.91	1.63
Silver	g/tonne		24.25	25.73	15.42
Stall Concentrator:
Ore milled	tonnes		335,739	334,601	318,539
Copper	%		0.68	0.76	0.64
Zinc	%		6.11	6.16	6.22
Gold	g/tonne		2.35	2.70	2.12
Silver	g/tonne		22.08	28.72	25.16
Copper recovery	%		84.0	86.6	84.4
Zinc recovery	%		92.7	92.4	91.8
Gold recovery	%		57.4	62.3	54.3
Silver recovery	%		57.5	62.1	57.4
Flin Flon Concentrator:
Ore milled	tonnes		322,156	324,906	331,216
Copper	%		0.99	1.52	1.22
Zinc	%		4.07	4.41	3.64
Gold	g/tonne		1.99	1.99	1.74
Silver	g/tonne		24.01	25.56	17.36
Copper recovery	%		83.9	87.3	89.1
Zinc recovery	%		87.9	84.9	86.7
Gold recovery	%		55.3	58.6	59.1
Silver recovery	%		42.0	50.7	48.7
Total contained metal in concentrate
Copper	tonnes		4,592	6,522	5,331
Zinc	tonnes		30,570	31,222	28,639
Gold	ounces		25,994	30,303	22,754
Silver	ounces		241,477	327,130	237,933
Precious metals1	ounces		28,657	33,979	26,153
Total payable metal sold
Copper	tonnes		4,249	6,928	4,602
Zinc2	tonnes		26,520	27,604	29,140
Gold	ounces		26,852	29,273	21,630
Silver	ounces		271,900	299,266	227,157
Combined unit operating cost3,4	C$/tonne		126	135	130
Cash cost4	$/lb		(3.41)	(1.52)	(1.31)
Sustaining cash cost4	$/lb		0.83	1.15	2.15

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¹ Precious metals production includes gold and silver production on a gold-equivalent basis. For 2019, silver is converted to gold at a ratio of 70:1. For 2020, silver is converted to gold at a ratio of 89:1.

² Includes refined zinc metal sold and payable zinc in concentrate sold.

³ Reflects combined mine, mill and G&A costs per tonne of ore milled.

⁴ Combined unit cost, cash cost and sustaining cash cost are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release.

The Manitoba business unit had solid operating performance across the mines, mills and zinc plant during the third quarter. In the face of the ongoing COVID-19 pandemic, the controls that were developed in the early part of the year have been maintained and the company's health and safety committees have continued to work collaboratively with local health units with a focus on keeping employees and communities safe.

Production during the quarter included 30,570 tonnes of zinc, 4,592 tonnes of copper and 28,657 ounces of precious metals. Production results were slightly lower compared to the previous quarter primarily due to lower head grades and planned maintenance at the Lalor mine during the third quarter.

Operational performance during the third quarter at both Lalor and 777 was strong, with ore production generally in line with the same period in 2019 and grades at both mines remaining in line with the mine plan. At Lalor, a two-week planned maintenance program was completed on schedule, and the company achieved a third quarter production rate averaging 4,600 tonnes per day outside of the maintenance period. The 777 mine maintained consistent and stable performance during the third quarter as it approaches its planned closure in 2022.

Operational readiness activities in support of the early start-up of New Britannia are on track, including ensuring that a sufficient and consistent volume of gold ore will be available. Underground development at Lalor in gold-rich lenses 25 and 27 is advancing ahead of schedule in preparation for the mid-2021 start-up of New Britannia, which is three months earlier than originally planned. Mining of the first stope in lens 27 was completed in September and the trend of increased precious metal production from Lalor is expected to continue.

At the Stall concentrator, ore processed during the third quarter of 2020 was in line with the second quarter, as both periods had planned outages for capital upgrades. Although lower than the first half of 2020, the trend of improved gold recoveries has continued compared to the same periods in 2019 due to improved ore characteristics and numerous operational improvement projects implemented at the Stall mill. At the Flin Flon concentrator, ore processed during the third quarter slightly decreased by 1% compared to the second quarter.

Combined mine, mill and G&A unit operating costs in the third quarter decreased by 7% compared to the second quarter of 2020 primarily due to lower operating costs. Manitoba's combined unit costs are expected to be within the guidance range for the full year 2020.

Manitoba's cash cost per pound of copper produced, net of by-product credits, for the third quarter of 2020 was negative $3.41. These costs were significantly lower compared to the second quarter of 2020, primarily as a result of higher by-product credits and lower mining costs, partially offset by lower copper production. Manitoba's sustaining cash cost per pound of copper produced, net of by-product credits, in the third quarter of 2020 was $0.83, lower than the previous quarter due to the reasons listed above, slightly offset by increased sustaining capital expenditures.

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COVID-19 Business Update

Amidst the COVID-19 pandemic, Hudbay's business response plan continued to be executed throughout the quarter, as the company adapts to this fluid environment. The focus remained on the health and safety of Hudbay's workforce and families, and the communities in which the company operates. The evolution of the pandemic has been closely monitored in each of the regions Hudbay operates in and the company is continuously reviewing and adapting procedures based on the latest local situation. Peru currently ranks in the top fifteen countries worldwide in terms of the total number of infections. Arequipa and Cusco, where 80% of Constancia's workforce resides, continue to see a high COVID-19 case count. The province of Manitoba has seen a recent increase in COVID-19 cases, including a growing number of cases in northern Manitoba.

Hudbay's business units have developed site-specific measures intended to identify and limit COVID-19 exposure and transmission and maintain a safe environment for workers and communities. Site-specific measures include testing of incoming workers prior to their travel to site, pre-screening protocols, quarantine periods for incoming workers, workplace physical distancing protocols, and adjustment of work rotation schedules. These measures continue to evolve as the status of the pandemic changes in each of the regions in which the company operates with measures being adapted to the regional health authorities' latest restrictions and guidelines.

Hudbay believes the most important way the company can support the communities in which it operates is to manage safe operations, which provide income for local employees, businesses, and communities. While the company has had members of its workforce contract COVID-19, to date there have been no identified cases of transmission within its workplaces, or transmission between rotational employees and local communities. The company believes that its diligence in screening and testing, and workplace protocols have been effective in achieving the objective of being a safe employer and neighbour. In addition to the company's efforts to maintain safe operations, it has been supporting public health efforts and providing COVID-19 relief funding, supplies and services to neighbouring communities.

777 Operations Update

Production at the 777 mine was temporarily suspended due to an incident that occurred on October 9^th during routine maintenance of the hoist rope and skip. The hoist rope detached from the skip, causing the skip to fall to the bottom of the shaft. All underground personnel were safely evacuated from the mine using the secondary ramp access.

A preliminary video inspection of the mine shaft indicates that damage is limited to the headframe and the bottom of the shaft in the skip compartment. It does not appear that the cage compartments or the ore loading area were damaged, and the structural integrity of the shaft does not appear to have been compromised by the incident. A full inspection of the shaft and skip compartment will require an in-person inspection, which is underway.

Underground mining activity has resumed at 777 with limited production from the mine's ramp access. If it is confirmed there is no further damage beyond what has been identified to date, it is expected that the 777 shaft could resume full production in December at a repair cost that is not expected to exceed $5.0 million.

While fourth quarter production and sales volumes will be impacted, the company is implementing production mitigation plans. Based on the preliminary video inspection and mitigation plans, the company continues to expect the Manitoba business unit to achieve its full year production and unit cost guidance for 2020.

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Lalor Mine and the New Britannia Mill Refurbishment Update

The New Britannia refurbishment project is ahead of schedule and on budget. Overall project progress is approximately 64% complete, which includes the completion of 99% of detailed engineering, 98% of project procurement and 45% of construction. Commissioning of the gold plant is expected in mid-2021, three months earlier than planned. Construction of the new copper flotation building continues to advance as planned and is on track to have the external structure fully enclosed before winter. Construction of the pipeline between the New Britannia and Stall mills also continues as planned.

As previously disclosed, Hudbay has identified the potential to produce gold from the New Britannia mill earlier in 2021 than originally expected. The refurbishment activities at the gold plant are ahead of schedule and commissioning of the gold plant is now expected in mid-2021, followed by ramp-up and first production in the third quarter of 2021. Copper flotation building construction activities continue to be on track for completion in August 2021, with commissioning and ramp-up expected during the second half of 2021. While the copper flotation building is being constructed, the company plans to install modular flotation cells at the gold plant to optimize copper recoveries as the company starts early processing of gold and copper-gold ores. The impact of the early gold production from the New Britannia mill continues to be evaluated and will be reflected in the company's annual production guidance update in early 2021.

Hudbay continues with the early mining of the gold zone at Lalor as part of stope sequencing in preparation for the start of the New Britannia gold mill. Once the New Britannia mill is ramped-up, average annual gold production from Lalor is expected to increase to over 150,000 ounces commencing in 2022 at cash costs and sustaining cash costs, net of by-product credits, of approximately $480 and $655 per ounce, respectively, during the first eight years of the gold plant's operation.

Pampacancha Update

The company completed the Pampacancha surface rights agreement with the local community of Chilloroya in February 2020. Since that time, the company has made significant progress on completing the Pampacancha individual land-user agreements and, as of September 30, 2020, approximately 79% of the land has been vacated and turned over to Hudbay (as compared to approximately one third as of June 30, 2020). During the first nine months of 2020, the company accrued approximately $95.9 million in growth spending in Peru relating to obligations under the local community surface rights agreement and the individual land-user agreements. As previously disclosed, the company's initial growth capital guidance for Peru of $70.0 million did not include the cost of the individual land user agreements due to the ongoing nature of the negotiations and, as indicated by accrued expenditures to date, full year growth capital spending for Peru will exceed that initial guidance once all land user agreements are concluded. As stated in Hudbay's second quarter results, the Consulta Previa consultation process has been impacted by the Peruvian government declared state of emergency, and as a result, the company expects a Pampacancha production start date of early 2021.

Constancia Regional Exploration

Constancia North Drilling

Hudbay has recently completed a follow-up drill program at Constancia North to continue to test a possible extension of copper porphyry and high-grade skarn mineralization occurring within 300 metres of the northern edge of the current Constancia pit. The drill program was a follow-up to the drill intersections announced on March 30, 2020 and continued to intersect both skarn and porphyry mineralization as shown in the table below. Most of the drill holes intersected mineralization located along a southeast-northwest trending regional fault. The location of the intersections is shown in Figure 1. The results will be evaluated and integrated into the annual mineral reserve and resource estimate update for Constancia at the end of the first quarter of 2021.

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Hole ID1	From	To	Intercept	Estimated True Thickness2	Cu3	Mo3	Au3,4	Ag3	Mineralization Type
	(m)	(m)	(m)	(m)	(%)	(g/t)	(g/t)	(g/t)
CO-19-306	368.0	408.6	40.6	39.3	0.52	42.4	0.79	17.9	Porphyry
CO-19-307 (top)	42.0	64.0	22.0	20.5	0.19	26.1	0.03	3.5	Porphyry
CO-19-307 (bottom)	400.0	408.0	8.0	7.3	0.60	10.8	0.08	6.9	Porphyry
CO-19-308	35.0	57.0	22.0	21.3	0.24	23.7	0.07	2.0	Porphyry
CO-19-309	70.0	92.3	22.3	21.0	0.27	9.0	0.19	9.7	Porphyry
CO-19-310	263.0	361.0	98.0	91.9	1.10	27.9	0.08	5.9	Skarn
CO-19-311	90.3	118.0	27.7	23.6	0.54	4.3	0.45	11.8	Porphyry
CO-20-313	116.5	125.0	8.5	7.6	0.63	4.5	1.04	11.5	Porphyry
CO-20-314	7.3	100.0	92.7	89.4	0.16	89.9	0.02	1.2	Porphyry
CO-20-315	19.0	87.9	68.9	67.1	0.30	99.2	0.02	3.9	Porphyry
CO-20-316 (top)	136.0	187.0	51.0	48.0	0.22	363.7	0.02	2.4	Skarn
CO-20-316 (bottom)	208.1	291.7	83.6	78.6	1.39	305.0	0.43	16.0	Skarn
CO-20-319	193.0	252.0	59.0	58.7	0.21	52.2	0.35	9.9	Skarn
CO-20-320 (top)	19.3	103.9	84.6	79.7	0.19	39.0	0.03	2.8	Skarn
CO-20-320 (bottom)	143.5	231.0	87.5	81.8	0.29	30.5	0.03	2.9	Skarn
CO-20-321 (top)	118.0	151.0	33.0	30.9	0.21	84.3	0.02	2.6	Skarn
CO-20-321 (bottom)	181.0	234.0	53.0	49.5	0.61	42.9	0.05	7.4	Skarn
CO-20-322 (top)	0.0	65.0	65.0	62.9	0.25	171.9	0.02	1.8	Porphyry
CO-20-322 (bottom)	99.0	197.0	98.0	94.1	0.31	103.9	0.03	6.1	Porphyry
CO-20-324	4.0	175.6	171.6	165.1	0.29	61.8	0.03	2.9	Porphyry
CO-20-325	0.0	15.0	15.0	14.5	0.80	38.2	0.09	4.3	Skarn
CO-20-326	0.0	16.3	16.3	15.9	0.85	24.9	0.10	4.8	Skarn
CO-07-1095	305.0	348.0	43.0	37.2	1.54	59.7	0.23	9.1	Skarn
CO-08-2155 (top)	20.1	59.8	39.7	37.2	0.24	4.5	0.24	12.6	Porphyry
CO-08-2155 (bottom)	217.3	346.0	128.7	123.3	0.82	37.0	0.05	13.6	Skarn

¹ For details relating to the coordinates of each drill hole, please refer to the data table in the "Additional Drill Hole Information" section of this news release.

² True width estimates are based on the current knowledge and interpretation of skarn mineralization geometry.

³ Specific gravity results are pending - assay results are length weighted.

⁴ Gold values capped at 10 g/t.

⁵ Historical drill results from 2007 and 2008.

Other Regional Exploration

Hudbay's patient and consistent approach to community negotiations has proven successful, demonstrating strong relationships with the neighbouring communities near Constancia and positioning the company well to gain access to other regional growth targets in Peru. After reaching an exploration agreement with the Quehuincha community in early 2019 and subsequently completing the Consulta Previa process, Hudbay has commenced site preparation work and expects to start a drill program on the Quehuincha North high-grade skarn target in November.

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Rosemont Update

The appeal of the unprecedented Rosemont court decision continues to advance. After Hudbay and the U.S. government filed their respective initial briefs in June 2020 with the U.S. Court of Appeals for the Ninth Circuit in relation to the U.S. District Court for the District of Arizona's decision in July 2019, the plaintiffs filed their briefs in September. Hudbay and the U.S. government expect to file their final briefs in November. A final decision in the appeal process is expected in late 2021.

In October 2020, Hudbay commenced a drilling program on its wholly owned private land located in a historic mining district, called Helvetia, near its Rosemont project in Arizona. The focus of the program is two-fold: to complete condemnation drilling in the areas planned for power and water lines for Rosemont, and to test the Helvetia copper district for future exploration potential. The company will provide further updates as appropriate.

Senior Unsecured Notes Refinancing

On September 23, 2020, the company completed the offering of $600.0 million aggregate principal amount of 6.125% senior notes due April 2029 (the "New Notes"). The New Notes are governed by an indenture, dated as of September 23, 2020, among the company, the subsidiaries of the company party thereto as guarantors and U.S. Bank National Association, as trustee.

The proceeds from this offering were primarily used to redeem all $400.0 million of the outstanding 7.250% Redeemed Notes, including the payment of accrued and unpaid interest, a call premium of $7.3 million, and transaction costs associated with the New Notes.

Non-IFRS Financial Performance Measures

Adjusted net earnings (loss), adjusted net earnings (loss) per share, adjusted EBITDA, net debt, cash cost, sustaining and all-in sustaining cash cost per pound of copper produced, and combined unit cost are non-IFRS performance measures. 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.

Hudbay believes adjusted net earnings (loss) and adjusted net earnings (loss) per share better reflect the company's performance for the current period and are better indications of its expected performance in future periods. These measures are used internally by the company to evaluate the performance of its underlying operations and to assist with its planning and forecasting of future operating results. As such, the company believes these measures are useful to investors in assessing the company's underlying performance. The company provides adjusted EBITDA to help users analyze its results and to provide additional information about the company's ongoing cash generating potential in order to assess its capacity to service and repay debt, carry out investments and cover working capital needs. Net debt is shown because it is a performance measure used by the company to assess its financial position. Cash cost, sustaining and all-in 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. Combined unit cost is shown because the company believes it helps investors and management assess the cost structure and margins that are not impacted by variability in by-product commodity prices.

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In the first half of 2020, a government-imposed shutdown of non-essential businesses led to a temporary suspension of the Constancia mining operations. As such, fixed overhead production costs incurred during the suspension were directly charged to cost of sales. These costs did not contribute to production of inventory and were therefore excluded from the calculations of adjusted net earnings (loss), adjusted EBITDA and cash costs.

Effective September 30, 2020 and for all comparably disclosed periods, Hudbay has included the period's deferred revenue amortization as a by-product credit to reflect the net cost of producing and selling the period's precious metals under its streaming arrangements as it believes doing so allows management and the company's investors to better evaluate the operating performance of the underlying operations as compared to its peers. The variable consideration adjustment required under IFRS 15 related to prior periods is not included as a by-product credits in the current period and hence is disclosed as an adjustment in the non-IFRS cash cost measure reconciliation.

For further details on these measures, including reconciliations to the most comparable IFRS measures, please refer to page 42 of Hudbay's management's discussion and analysis for the three and nine months ended September 30, 2020 available on SEDAR at www.sedar.com.

Website Links

Hudbay:

www.hudbay.com

Management's Discussion and Analysis:

http://www.hudbayminerals.com/files/doc_financials/2020/Q3/MDA203.pdf

Financial Statements:

http://www.hudbayminerals.com/files/doc_financials/2020/Q3/FS203.pdf

Conference Call and Webcast

Date:	Wednesday, November 4, 2020
Time:	8:30 a.m. ET
Webcast:	http://services.choruscall.ca/links/hudbay20201104.html
Dial in:	1-416-915-3239 or 1-800-319-4610

Qualified Person

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The technical and scientific information in this news release related to the Constancia mine and Rosemont project has been approved by Cashel Meagher, P. Geo, Hudbay's Senior Vice President and Chief Operating Officer. The technical and scientific information related to the company's other material mineral projects contained in this news release has been approved by Olivier Tavchandjian, P. Geo, Hudbay's Vice-President Exploration and Geology. Messrs. Meagher and Tavchandjian are qualified persons pursuant to NI 43-101. For a description of the key assumptions, parameters and methods used to estimate mineral reserves and resources at Hudbay's material properties, as well as data verification procedures and a general discussion of the extent to which the estimates of scientific and technical information may be affected by any known environmental, permitting, legal title, taxation, sociopolitical, marketing or other relevant factors, please see the technical reports for the company's material properties as filed by Hudbay on SEDAR at www.sedar.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, production, cost and capital and exploration expenditure guidance and potential revisions to such guidance, anticipated production at Hudbay's mines and processing facilities, expectations regarding the impact of the COVID-19 pandemic on the company's operations, financial condition and prospects, the ability to complete the shaft inspection activities at 777 in the anticipated timeframe, the ability to identify the extent of any damage to the 777 mine shaft, the expected timeline and costs to complete repairs at the 777 mine, the ability to continue production and use of the 777 mine′s ramp access as a temporary substitute to the shaft, the expected timeline to resume full production at 777, expectations regarding the timing of mining activities at the Pampacancha deposit and the related capital expenditures, the anticipated timing, cost and benefits of developing the Rosemont project and the outcome of litigation challenging Rosemont's permits, expectations regarding the Lalor gold strategy, including the refurbishment of the New Britannia mill and the potential to increase 2021 gold production, the possibility of converting inferred mineral resource estimates to higher confidence categories, the potential and anticipated plans for advancing the mining properties surrounding Constancia and the Mason project, anticipated mine plans, anticipated metals prices and the anticipated sensitivity of the company's financial performance to metals prices, events that may affect its operations and development projects, anticipated cash flows from operations and related liquidity requirements, the anticipated effect of external factors on revenue, such as commodity prices, estimation of mineral reserves and resources, mine life projections, reclamation costs, economic outlook, government regulation of mining operations, and business and acquisition strategies. 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 ability to continue to operate safely and at full capacity during the COVID-19 pandemic;

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• the outcome of the inspections at the 777 mine, the ability and cost to remedy the damage and resume production at the 777 mine and the ability to mitigate production while the 777 shaft is not operating;

• the ability to achieve production and unit cost guidance;

• no significant interruptions to the company's operations or significant delays to its development projects in Manitoba and Peru due to the COVID-19 pandemic;

• the timing of development and production activities on the Pampacancha deposit;

• the timing of the Consulta Previa and permitting process for mining the Pampacancha deposit;

• the timing for reaching additional agreements with individual community members and no significant unanticipated delays to the development of Pampacancha;

• the successful completion of the New Britannia project on budget and on schedule;

• the successful outcome of the Rosemont litigation;

• the success of mining, processing, exploration and development activities;

• the scheduled maintenance and availability of the processing facilities;

• the accuracy of geological, mining and metallurgical estimates;

• anticipated metals prices and the costs of production;

• the supply and demand for metals the company produces;

• the supply and availability of all forms of energy and fuels at reasonable prices;

• no significant unanticipated operational or technical difficulties;

• the execution of the company's business and growth strategies, including the success of its strategic investments and initiatives;

• the availability of the revolving credit facilities and additional financing, if needed;

• the ability to complete project targets on time and on budget and other events that may affect the company's ability to develop its projects;

• the timing and receipt of various regulatory and governmental approvals;

• the availability of personnel for the exploration, development and operational projects and ongoing employee relations;

• maintaining good relations with the labour unions that represent certain of the company's employees in Manitoba and Peru;

• maintaining good relations with the communities in which the company operates, including the neighbouring Indigenous communities;

• no significant unanticipated challenges with stakeholders at Hudbay's various projects;

• no significant unanticipated events or changes relating to regulatory, environmental, health and safety matters;

• no contests over title to the company's properties, including as a result of rights or claimed rights of Indigenous peoples or challenges to the validity of the company's unpatented mining claims;

• the timing and possible outcome of pending litigation and no significant unanticipated litigation;

• certain tax matters, including, but not limited to current tax laws and regulations and the refund of certain value added taxes from the Canadian and Peruvian governments; and

• no 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 Hudbay's operations, financial condition, projects and prospects, the possibility of a global recession arising from the COVID-19 pandemic and attempts to control it, the state of emergency and political situation in Peru and risks associated with the resumption of operations at Constancia, risks associated with the company's access to capital, including the negative impact of low metal prices on credit facility availability, 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 (including risks associated with the litigation affecting the Rosemont project), risks related to the U.S. district court's recent decisions to set aside the U.S. Forest Service's FROD and the Biological Opinion for Rosemont and related appeals and other legal challenges, risks related to the new Lalor mine plan, including the schedule for the refurbishment of the New Britannia mill and the ability to convert inferred mineral resource estimates to higher confidence categories, risks related to the schedule for mining the Pampacancha deposit (including risks associated with COVID-19, the Consulta Previa process, risks associated with reaching additional agreements with individual community members and risks associated with the rainy season in Peru and the impact of any schedule delays), dependence on key personnel and employee and union relations, risks related to political or social unrest or change, risks in respect of Indigenous and community relations, rights and title claims, operational risks and hazards, including the cost of maintaining and upgrading the company's tailings management facilities and any unanticipated environmental, industrial and geological events and developments and the inability to insure against all risks, failure of plant, equipment, processes, transportation and other infrastructure to operate as anticipated, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, depletion of reserves, volatile financial markets that may affect the ability to obtain additional financing on acceptable terms, the failure to obtain required approvals or clearances from government authorities on a timely basis, uncertainties related to the geology, continuity, grade and estimates of mineral reserves and resources, and the potential for variations in grade and recovery rates, uncertain costs of reclamation activities, the company's ability to comply with its pension and other post-retirement obligations, the company's ability to abide by the covenants in its debt instruments and other material contracts, tax refunds, hedging transactions, as well as the risks discussed under the heading "Risk Factors" in the company's most recent Annual Information Form.

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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.

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 may differ materially from the requirements of United States securities laws applicable to U.S. issuers.

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.

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For further information, please contact:

Candace Brûlé

Director, Investor Relations

(416) 814-4387
candace.brule@hudbay.com

Figure 1: Location of Constancia North Drill Holes

3D view of drill hole locations north of the existing Constancia reserve pit. Several of the drill holes intersected porphyry or skarn mineralization along a SE-NW trend.

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Additional Drill Hole Information

Hole ID	From (m)			To (m)			Azimuth at Intercept	Dip at Intercept	Core Size
	Easting	Northing	Elevation	Easting	Northing	Elevation
CO-19-306	200,773	8,400,165	3,924	200,763	8,400,163	3,885	261	-76	HQ
CO-19-307 (top)	200,841	8,400,370	4,236	200,835	8,400,364	4,215	228	-69	HQ
CO-19-307 (bottom)	200,733	8,400,290	3,904	200,730	8,400,288	3,897	236	-67	HQ
CO-19-308	200,849	8,400,385	4,241	200,845	8,400,389	4,220	316	-75	HQ
CO-19-309	200,657	8,400,579	4,218	200,661	8,400,573	4,197	150	-70	HQ
CO-19-310	200,767	8,400,674	4,086	200,783	8,400,644	3,994	153	-70	HQ
CO-19-311	200,620	8,400,635	4,227	200,630	8,400,624	4,203	138	-58	HQ
CO-20-313	200,608	8,400,525	4,164	200,611	8,400,523	4,157	124	-64	HQ
CO-20-314	200,811	8,400,101	4,255	200,833	8,400,100	4,173	92	-75	HQ
CO-20-315	200,883	8,400,328	4,259	200,873	8,400,316	4,192	219	-77	HQ
CO-20-316 (top)	200,879	8,400,146	4,152	200,885	8,400,130	4,104	159	-70	HQ
CO-20-316 (bottom)	200,888	8,400,123	4,084	200,897	8,400,096	4,006	161	-70	HQ
CO-20-319	200,847	8,400,179	4,088	200,842	8,400,176	4,029	236	-85	HQ
CO-20-320 (top)	200,911	8,400,092	4,270	200,923	8,400,066	4,190	155	-70	HQ
CO-20-320 (bottom)	200,928	8,400,054	4,153	200,940	8,400,025	4,071	158	-69	HQ
CO-20-321 (top)	200,908	8,400,110	4,176	200,912	8,400,099	4,145	158	-69	HQ
CO-20-321 (bottom)	200,916	8,400,089	4,117	200,923	8,400,071	4,067	158	-69	HQ
CO-20-322 (top)	200,961	8,400,108	4,290	200,952	8,400,122	4,227	326	-75	HQ
CO-20-322 (bottom)	200,947	8,400,129	4,194	200,931	8,400,151	4,100	325	-74	HQ
CO-20-324	200,944	8,400,144	4,291	200,913	8,400,179	4,126	319	-74	HQ
CO-20-325	200,981	8,400,065	4,275	200,979	8,400,069	4,260	335	-75	HQ
CO-20-326	200,981	8,400,065	4,275	200,982	8,400,061	4,259	170	-78	HQ
CO-07-1094	200,762	8,400,618	4,055	200,777	8,400,602	4,018	135	-60	HQ
CO-08-215 (top)	200,891	8,400,237	4,260	200,877	8,400,237	4,222	271	-70	HQ
CO-08-215 (bottom)	200,827	8,400,238	4,073	200,790	8,400,237	3,950	268	-73	HQ

^{_________________________________________
i} Adjusted net loss and adjusted net loss per share, adjusted EBITDA, net debt, unit operating costs, cash cost, sustaining and all-in sustaining cash cost per pound of copper produced, net of by-product credits, are non-IFRS financial performance measures with no standardized definition under IFRS. For further information, please see the "Non-IFRS Financial Reporting Measures" section of this news release.

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