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 July 2015

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 o  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):  o

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):  o

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  o  No  x

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

EXPLANATORY NOTE

On July 29, 2015, 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) Management’s Discussion and Analysis of Results of Operations and Financial Condition for the three and six months ended June 30, 2015; (2) Unaudited Condensed Consolidated Interim Financial Report for the three and six months ended June 30, 2015 and 2014; (3) a Credit Supporters Disclosure; (4) CEO Certification of Interim Filings; (5) CFO Certification of Interim Filings; and (6) a press release announcing the quarterly results for the second quarter of 2015.

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

·Exhibit 99.1 — Management’s Discussion and Analysis of Results of Operations and Financial Condition for the three and six months ended June 30, 2015;

·Exhibit 99.2 — Unaudited Condensed Consolidated Interim Financial Report for the three and six months ended June 30, 2015 and 2014;

·Exhibit 99.3 — Credit Supporters Disclosure;

·Exhibit 99.4 — CEO Certification of Interim Filings;

·Exhibit 99.5 — CFO Certification of Interim Filings; and

·Exhibit 99.6 — Press release announcing the quarterly results for the second quarter of 2015.

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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, General Counsel and Corporate Secretary

Date:  July 30, 2015

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EXHIBIT INDEX

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

Exhibit	Description
99.1	Management’s Discussion and Analysis of Results of Operations and Financial Condition for the three and six months ended June 30, 2015
99.2	Unaudited Condensed Consolidated Interim Financial Report for the three and six months ended June 30, 2015 and 2014
99.3	Credit Supporters Disclosure
99.4	CEO Certification of Interim Filings
99.5	CFO Certification of Interim Filings
99.6	Press release announcing the quarterly results for the second quarter of 2015

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EX-99.1

Exhibit 99.1

HUDBAY MINERALS INC.

Management’s Discussion and Analysis of

Results of Operations and Financial Condition

For the three and six months ended

June 30, 2015

TABLE OF CONTENTS	Page
Notes to Reader	1
Our Business	4
Summary	5
Key Financial and Production Results	6
Recent Developments	7
Manitoba Operations Review	8
Constancia Operations Review	12
Financial Review	13
Liquidity and Capital Resources	23
Trend Analysis and Quarterly Review	27
Non-IFRS Financial Performance Measures	28
Accounting Changes and Critical Estimates	34
Changes in Internal Control Over Financial Reporting	34

NOTES TO READER

This Management’s Discussion and Analysis (“MD&A”) dated July 29, 2015 is intended to supplement HudBay Minerals Inc.’s unaudited condensed consolidated interim financial statements and related notes for the three and six months ended June 30, 2015 and 2014 (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.

Additional information regarding HudBay Minerals Inc., 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 Annual Information Form (“AIF”), audited consolidated financial statements and Management Information Circular available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

All amounts are in Canadian dollars unless otherwise noted.

References to “Hudbay”, the “Company”, “we”, “us”, “our” or similar terms refer to HudBay Minerals Inc. and its direct and indirect subsidiaries as at June 30, 2015. “Hudbay Peru” refers to HudBay Peru S.A.C., our wholly-owned subsidiary which owns a 100% interest in the Constancia project, and “Augusta” and “Hudbay Arizona” refer to HudBay Arizona Corporation (formerly named Augusta Resource Corporation), our wholly-owned subsidiary, which indirectly owns a 92.05% interest in the Rosemont project.

Forward-Looking Information

This MD&A contains “forward-looking statements” and “forward-looking information” (collectively, “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, anticipated production at our mines and processing facilities, anticipated production from our projects and events that may affect our operations and development projects, including a strike action that has been commenced by one union at our Manitoba operations, the anticipated effect of external factors on revenue, such as commodity prices, the potential to refurbish the recently acquired New Britannia mill and utilize it to process ore from our Lalor mine, the anticipated exploration and development expenditures and activities and the possible success of such activities at Lalor and elsewhere, estimation of mineral reserves and resources, mine life projections, reclamation costs, economic outlook, government regulation of mining operations, business and acquisition strategies, and the anticipated closing of our amended credit facility. 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:

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

·the accuracy of geological, mining and metallurgical estimates;

·the costs of production;

·the supply and demand for metals we produce;

·no significant and continuing adverse changes in financial markets, including commodity prices and foreign exchange rates;

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·the ability to successfully carry out our contingency plan for labour disruptions at our Manitoba operations as a result of the strike action that has been commenced by one union;

·the supply and availability of concentrate for our processing facilities;

·the supply and availability of third party processing facilities for our concentrate;

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

·the availability of transportation services at reasonable prices;

·the ability to successfully resolve logistical issues with respect to the transportation and shipping of concentrates;

·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;

·our ability to secure required land rights to mine the Pampacancha deposit in Peru;

·maintaining good relations with the communities in which we operate, including the communities surrounding our Constancia and Rosemont projects and First Nations communities surrounding our Lalor and Reed mines;

·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 aboriginal peoples;

·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.

The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), uncertainties related to the development and operation of our projects (including risks associated with the permitting of the Rosemont project and related legal challenges), risks associated with labour disruptions at our Manitoba operations, dependence on key personnel and employee and union relations, risks related to political or social unrest or change, risks in respect of aboriginal and community relations, rights and title claims, operational risks and hazards, including 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, planned infrastructure improvements in Peru (including the expansion of the port in Matarani) not being completed on schedule, 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 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.

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.

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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.

Information concerning our mineral properties has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements of the Securities and Exchange Commission (the “SEC”) set forth in Industry Guide 7. Under the SEC’s Industry Guide 7, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time of the reserve determination, and the SEC does not recognize the reporting of mineral deposits which do not meet the SEC Industry Guide 7 definition of “Reserve”. In accordance with National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators, the terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are defined in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required by NI 43-101, the SEC does not recognize them. You are cautioned that, except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic value. Inferred mineral resources have a high degree of uncertainty as to their existence and as to whether they can be economically or legally mined. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Therefore, you are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be economically or legally mined, or that it will ever be upgraded to a higher category. Likewise, you are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded into mineral reserves.

Presentation of Non-IFRS Financial Performance Measures

We use realized prices as a non-IFRS financial performance measure in our MD&A. For a detailed description, please see the discussion under “Financial Review” beginning on page 13 of our MD&A. In addition, we use operating cash flow per share and cash cost per pound of copper produced as non-IFRS financial performance measures in our MD&A. For a detailed description of each of the non-IFRS financial performance measures used in this MD&A, please see the discussion under “Non-IFRS Financial Performance Measures” beginning on page 28 of our MD&A.

Qualified Person

The technical and scientific information in this MD&A related to the Constancia project has been approved by Cashel Meagher, P. Geo, our Vice President, South America Business Unit. The technical and scientific information related to all other sites and projects contained in this MD&A has been approved by Robert Carter, P. Eng, our Director, Technical Services. Messrs. Meagher and Carter 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, 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.

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OUR BUSINESS

We are an integrated mining company producing copper concentrate (containing copper, gold and silver) and zinc metal. With assets in North and South America, we are focused on the discovery, production and marketing of base and precious metals. Through our subsidiaries, we own four polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba, Saskatchewan and Cusco (Peru) and a copper project in Arizona (United States). We also have equity investments in a number of junior exploration companies. Our growth strategy is focused on the exploration and development of properties we already control, as well as other mineral assets we may acquire that fit our strategic criteria. Our vision is to become a top-tier operator of long-life, low cost mines in the Americas. Our mission is to create sustainable value through increased commodity exposure on a per-share basis, in high quality and growing long-life deposits in mining-friendly jurisdictions. 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. We also have warrants listed under the symbol “HBM.WT” on the Toronto Stock Exchange and “HBM/WS” on the New York Stock Exchange.

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SUMMARY

In the second quarter of 2015, operating cash flow before stream deposit and change in non-cash working capital increased to $20.7 million from $11.8 million in the second quarter of 2014.

The net loss and loss per share in the second quarter of 2015 were $55.2 million and $0.24, respectively, compared to net income and income per share of $0.3 million and nil, respectively, in the second quarter of 2014. Net loss and loss per share in the second quarter of 2015 were affected by, among other things, the following items:

	Pre-tax		After-tax		Per share
	loss		loss		loss
	($ millions)		($ millions)		($/share)
Lalor concentrator impairment charge	(24.6	)	(16.2	)	(0.07	)
Pension expense arising from new collective bargaining agreements	(21.1	)	(13.9	)	(0.06	)
Non-cash deferred tax adjustments	—		(8.0	)	(0.03	)

Cash flow from operations was positively impacted by increased revenue as a result of significant increases in production of all metals as our Constancia mine achieved commercial production at the end of April 2015. Copper, gold, silver and zinc production increased by 270%, 37%, 301% and 9%, respectively, in the second quarter of 2015 compared to the same period in 2014. In addition, cash costs per pound of copper produced, net of by-product credits, declined by 37% to US$1.29. Our business benefited from slightly higher production volumes in Manitoba, weaker local currencies, lower energy and other input costs and the achievement of commercial production from the large-scale Constancia mine during the second quarter.

While improved when compared to the prior year, cash flow from operations and net earnings were negatively impacted by unsold copper, gold, and silver during the quarter. At quarter end, we had approximately 73,100 tonnes of unsold copper concentrate containing 19,200 tonnes of copper, 30,300 ounces of gold and 579,300 ounces of silver. Shipments from the Constancia mine to the port in Matarani were constrained during May and June by several factors including truck availability, protests along the lower part of the trucking route, unrelated to Constancia, and road refurbishment activities along the route that increased cycle times for concentrate trucks. Steps have been taken to increase the size of the trucking fleet, and the excess inventory is expected to be drawn down over the second half of 2015. Also, cash flow from operations was negatively affected by a $10.5 million increase in cash taxes, when compared to the prior year’s quarter, as gross profit, before depreciation and the non-cash pension expense, increased by 68% to $63.4 million.

In addition to the pension expense resulting from pension enhancements agreed to as part of the Manitoba collective bargaining process and the Lalor concentrator impairment charge, net earnings were also negatively affected by higher depreciation resulting from commercial production at Constancia and Lalor and higher interest expense as we are no longer capitalizing interest related to the Constancia project.

The Constancia mine commenced production in December 2014, and achieved commercial production on April 30, 2015. Ocean shipments began in April 2015, and the mine and concentrator are currently processing ore at or above design capacity. We expect to achieve full year 2015 production and operating cost guidance for all of our operations.

As at June 30, 2015, we had total pro-forma available and committed liquidity of approximately $436.6 million, including $143.3 million in cash and cash equivalents and availability under our committed credit facilities. This does not include over $100 million in cash flow from the sale of excess copper concentrate inventory and value added tax refunds from the Peruvian government expected in the second half of 2015. We expect that our current liquidity and expected cash flows will be sufficient to meet our liquidity needs for 2015.

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KEY FINANCIAL AND PRODUCTION RESULTS

Financial Condition ($000s)	Jun. 30, 2015	Dec. 31, 2014
Cash and cash equivalents	143,271	207,273
Working capital	141,825	101,124
Total assets	6,191,511	5,627,508
Equity	2,568,617	2,446,720

Financial Performance

		Three months ended			Six months ended
(in $ thousands, except per share and		Jun. 30,		Jun. 30,	Jun. 30,		Jun. 30,
cash cost amounts)		2015		2014	2015		2014
Revenue		185,779		139,329	346,431		246,108
(Loss) profit before tax		(57,102	)	6,843	(70,173	)	(17,296	)
Basic and diluted (loss) earnings per share1		(0.24	)	—	(0.34	)	(0.14	)
(Loss) profit		(55,218	)	252	(78,921	)	(26,967	)
Operating cash flows before stream deposit and change in non-cash working capital		20,661		11,764	44,717		7,130
Operating cash flow per share 2		0.09		0.06	0.19		0.04
Cash cost per pound of copper produced, net of by-product credits - US$ 2		1.29		2.04	1.33		2.32
Production
Contained metal in concentrate3
Copper	tonnes	36,212		9,778	51,220		17,733
Gold	oz	23,217		16,982	46,892		35,630
Silver	oz	779,364		194,350	1,090,232		381,351
Zinc	tonnes	23,486		21,481	46,392		40,776
Metal Sold
Payable metal in concentrate
Copper	tonnes	25,868		8,366	36,863		13,905
Gold	oz	15,175		18,741	27,525		29,507
Silver	oz	428,095		191,098	528,411		293,907
Refined zinc	tonnes	25,657		24,351	49,436		45,455

1Attributable to owners of the Company.

2Operating cash flow per share and 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 page 28 of this MD&A.

3Metal reported in concentrate is prior to refining losses or deductions associated with smelter contract terms.

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RECENT DEVELOPMENTS

Acquisition of New Britannia Mine and Mill

On May 4, 2015, we closed a transaction to acquire a 100% interest in the New Britannia mine and mill, located in Snow Lake, Manitoba. While there are presently no plans to bring the New Britannia mine back into production, based on our initial review, we believe the New Britannia mill (the “NBM Mill”), if refurbished, has the potential to process approximately 2,000 tonnes per day of gold zone ore from the Lalor mine.

The NBM Mill historically operated as a two-stage crushing and grinding carbon-in-pulp circuit, producing gold doré on site, and is currently on care and maintenance. The expected refurbishment of the NBM Mill would increase total processing capacity in the Snow Lake area and, based on our initial review, is expected to have a relatively low capital cost compared to the cost of a new concentrator. Historical gold recoveries at the NBM Mill on New Britannia ore have been in the 90% range compared to approximately 60% recoveries that are typical of a base metal concentrator. The NBM Mill has tailings capacity that is permitted, and the historical tailings are a potential source of feed for a new paste backfill plant at Lalor.

As a result of the acquisition of the NBM Mill, we no longer plan to construct a new concentrator at Lalor. During the three months ended June 30, 2015, we recognized an impairment loss of $24.6 million related to our Lalor concentrator assets in Snow Lake, Manitoba.

Revolving Credit Facility

We have received commitments from our current lenders to increase the size of our corporate revolving credit facility from US$300 million to US$400 million. The upsized credit facility will be on substantially similar terms to our existing revolving credit facility and will be repayable in March 2018. We expect to complete definitive documentation for the credit facility amendments during the third quarter of 2015.

Collective Bargaining Agreements

The collective agreements with each of the seven labour unions representing employees at our Manitoba business unit expired on December 31, 2014. The members of the International Association of Machinists and Aerospace Workers, Local No. 1848 have been on strike since May 2, 2015. The other six unions, representing approximately 88% of our employees in Manitoba, have ratified new three year agreements that provide enhancements to wage rates, pensions and benefits. Operations are continuing at our Manitoba operations under a comprehensive contingency plan.

Dividend Declaration

We declared a semi-annual dividend of $0.01 per share on July 29, 2015. The dividend will be paid on September 30, 2015 to shareholders of record as of September 11, 2015.

Conversion to US Dollar Reporting

Following the declaration of commercial production at Constancia, we have determined that, effective July 1, 2015, the appropriate functional currency of our corporate entity has changed from Canadian dollars to US dollars. In addition, we intend to change our reporting currency to US dollars effective with our financial reports for the three and nine months ending September 30, 2015.

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MANITOBA OPERATIONS REVIEW

		Three months ended		Six months ended		Guidance
		Jun. 30,	Jun. 30,	Jun. 30,	Jun. 30,	Annual
		2015	2014	2015	2014	2015
Ore mined	tonnes	624,195	625,656	1,276,551	1,207,729
Ore milled	tonnes	624,886	605,837	1,263,469	1,163,580
Copper	%	1.69	1.82	1.79	1.71
Zinc	%	4.40	4.13	4.25	4.10
Gold	g/tonne	1.77	1.59	1.76	1.66
Silver	g/tonne	17.22	20.65	17.65	20.84
Copper concentrate	tonnes	43,738	41,608	89,799	75,779
Concentrate grade	% Cu	22.27	23.50	23.06	23.40
Zinc concentrate	tonnes	45,523	41,528	90,475	79,171
Concentrate grade	% Zn	51.59	51.73	51.27	51.50
Copper recovery	%	91.9	88.7	91.4	88.9
Zinc recovery	%	85.3	85.8	86.4	85.5
Gold recovery	%	54.1	54.9	57.9	57.5
Silver recovery	%	54.5	48.3	55.9	48.9
Contained metal in concentrate produced
Copper	tonnes	9,738	9,778	20,705	17,733	40,000-50,000
Zinc	tonnes	23,486	21,481	46,392	40,776	95,000-120,000
Gold	oz	19,276	16,982	41,325	35,630
Silver	oz	188,472	194,350	401,019	381,351
Precious metals1	oz	22,417	20,158	48,009	42,001	85,000-105,000
Combined operating costs (mines and mills)2	$/tonne	89.33	71.37	85.19	73.05	73 - 88
Copper cash costs, net of by-product credits3,4	US$/lb	1.39	2.04	1.42	2.32

1For 2015 precious metals production and guidance, silver is converted to gold at a ratio of 60:1. For 2014 precious metals production, silver is converted to gold at realized prices.

2Reflects combined mine and mill costs per tonne of ore milled.

3Combined operating costs and copper cash costs, net of by-product credits, exclude costs and tonnes associated with pre-commercial production output.

4Copper cash costs, 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 “Non-IFRS Financial Performance Measures” beginning on page 28 of our MD&A.

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For the second quarter of 2015, ore processed was 3% higher compared to the same period of 2014 primarily as a result of increased production at Lalor partially offset by lower production at our 777 mine. Compared to the second quarter of 2014, zinc and gold grades were 7% and 11% higher, and copper and silver grades were 7% and 17% lower as a result of normal mine sequencing. Recoveries of zinc and gold in the second quarter of 2015 were consistent with the same period of 2014, and recoveries of copper and silver in the second quarter of 2015 were 4% and 13% higher compared to the same period of 2014 as a result of higher copper ore grades received by the Flin Flon concentrator. Combined operating costs per tonne of ore processed in the second quarter of 2015 were 25% higher, compared to the same period in 2014, primarily due to increased production at our Snow Lake operations which have higher unit costs, as well as increased unit costs at our Flin Flon operations resulting from decreased production at the 777 mine.

Year-to-date ore processed was 9% higher than the same period in 2014 as a result of increased production from Lalor and Reed. Year-to-date copper, zinc and gold grades were 5%, 4% and 6% higher, respectively, and  silver grades were 15% lower compared to the same period of 2014 as a result of normal mine sequencing. Year-to-date recoveries of copper, zinc and gold were consistent with the same period of 2014. Recoveries of silver were 14% higher compared to the same period of 2014 as a result of result of higher copper ore grades received by the Flin Flon concentrator. Combined operating costs per tonne of ore processed year-to-date in 2015 were 17% higher, compared to the same period in 2014, primarily due to the same factors that affected second quarter production and costs.

Metal production and combined operating costs per tonne in Manitoba are expected to be within guidance ranges for 2015.

Zinc Plant

		Three months ended		Six months ended		Guidance
		Jun. 30,	Jun. 30,	Jun. 30,	Jun. 30,	Annual
Zinc Production		2015	2014	2015	2014	2015
Zinc Concentrate Treated
Domestic	tonnes	45,277	35,825	86,190	66,251
Purchased	tonnes	7,008	18,522	16,407	34,769
Total	tonnes	52,285	54,347	102,597	101,020	190,000-235,000
Refined Metal Produced
Domestic	tonnes	21,928	17,156	41,960	32,693
Purchased	tonnes	3,594	9,313	8,343	17,531
Total	tonnes	25,522	26,469	50,303	50,224	95,000-120,000

		Three months ended		Six months ended		Guidance
		Jun. 30,	Jun. 30,	Jun. 30,	Jun. 30,	Annual
Unit Operating Costs		2015	2014	2015	2014	2015
Zinc Plant	$/lb	0.34	0.34	0.36	0.37	0.31  - 0.38

Production of cast zinc and operating costs per pound of zinc metal produced in the second quarter and the first six months of 2015 were relatively consistent compared to the same periods in 2014.

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Metal Sold

		Three months ended		Six months ended
		Jun. 30,	Jun. 30,	Jun. 30,	Jun. 30,
		2015	2014	2015	2014
Payable metal in concentrate
Copper	tonnes	7,463	8,366	18,458	13,905
Gold	oz	11,952	18,741	24,302	29,507
Silver	oz	108,198	191,098	208,514	293,907
Refined zinc	tonnes	25,657	24,351	49,436	45,455

Limitations on rail service resulted in a continued build up of copper concentrate inventory. However, additional leased rail cars are expected to enter service during the third quarter which is expected to draw down Manitoba inventory levels.

Lalor Copper-Gold Zone Exploration Results

The Phase 1 copper-gold zone drill program at Lalor included a total of 14 holes (totalling approximately 4,500 metres) drilled from the 1,025 metre level; assay results from seven holes were released with our first quarter results in May. Assay results from the remaining seven holes are shown in the table on the following page and were similar to those from previous holes, confirming a high grade thick core down the middle of the main zone with decreasing grade and thickness towards the contacts, as well as separate hanging wall and footwall mineralization.

The Phase 2 exploration ramp extension to the north, which will allow testing of the copper-gold zones down plunge, and step out drilling to the east and west, is progressing well and is expected to be complete by the end of August. Drilling from the Phase 2 exploration ramp is anticipated to commence in September 2015 with approximately 8,500 metres of drilling planned. The Phase 2 portion of the ramp development continues to maintain a drift size capable of accommodating future mine equipment and related infrastructure for mining the copper-gold zones.

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Hole1	Cu-Au Zone	Core Length2(m)	From (m)	To (m)	Cu (%)	Au (g/t)	Ag (g/t)	Zn (%)
LX0007	Hanging wall	7.20	127.80	135.00	1.47	5.95	8.11	0.07
LX0007	Main	26.53	159.22	185.75	4.04	11.30	27.53	0.41
LX0008	Main	0.52	175.96	176.48	0.43	1.34	5.90	0.02
LX0009	Hanging wall	2.83	127.17	130.00	2.03	2.73	5.80	0.06
LX0009	Main	24.10	160.20	184.30	5.28	17.46	43.44	0.84
LX0010	Hanging wall	8.75	91.75	100.50	0.02	2.34	4.82	0.01
LX0010	Hanging wall	3.08	114.56	117.64	2.57	9.78	45.22	0.15
LX0010	Main	0.37	184.58	184.95	3.09	11.45	36.69	0.06
LX0011	Hanging wall	5.55	146.75	152.30	4.79	22.62	27.95	0.19
LX0011	Main	3.96	158.54	162.50	2.12	5.77	6.81	0.11
LX0011	Main	13.50	168.50	182.00	5.60	12.37	20.42	0.26
LX0011	Main	4.49	192.91	197.40	2.28	3.09	11.04	0.22
LX0012	Hanging wall	7.02	122.82	129.84	3.15	7.25	1.04	0.08
LX0012	Main	0.43	169.11	169.54	0.33	1.27	7.99	0.00
LX0014	Main	18.76	205.24	224.00	5.94	11.52	19.14	0.32
LX0014	Main	3.96	229.00	232.96	3.00	1.74	15.15	0.19
LX0014	Footwall	7.45	248.55	256.00	2.66	2.82	12.59	0.22

1The quality assurance and quality control measures and the sampling, analytical and testing procedures that were applied and utilized during the execution of the exploration work at Lalor were substantially similar to those discussed in the Technical Report for Lalor that was previously filed on SEDAR, titled Pre-Feasibility Study Technical Report, on the Lalor Deposit, Snow Lake, Manitoba, Canada, effective as of March 29, 2012.  There are no drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the preliminary results.

2Due to varying angles of the drill holes and almost flat-lying nature of the copper-gold zone, true width is approximately 50% to 100% of core length.

	Collar Location
Hole	NAD83 Zone 14 East	NAD83 Zone 14 North	Distance Below Surface (m)	Core Size	Azimuth (degrees)	Dip (degrees)	Length (m)
LX0007	426782	6081349	1,021	NQ	185.9	-68	227.4
LX0008	426783	6081349	1,021	NQ	160.9	-66	230.4
LX0009	426782	6081349	1,021	NQ	185.9	-77	230.4
LX0010	426784	6081349	1,021	NQ	146.9	-73	317.4
LX0011	426784	6081357	1,021	NQ	150.0	-83	224.4
LX0012	426782	6081356	1,021	NQ	234.0	-83	227.3
LX0014	426786	6081394	1,022	NQ	37.1	-81	272.0

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CONSTANCIA OPERATIONS REVIEW

		Three months ended		Six months ended		Guidance
		Jun. 30,	Jun. 30,	Jun. 30,	Jun. 30,	Annual
		2015	2014	2015	2014	2015
Ore mined 1	tonnes	7,235,552	—	8,388,021	—
Ore milled	tonnes	6,583,232	—	9,016,714	—
Copper	%	0.61	—	0.56	—
Gold	g/tonne	0.06	—	0.07	—
Silver	g/tonne	6.12	—	5.90	—
Copper concentrate	tonnes	93,994	—	109,844	—
Concentrate grade	% Cu	28.17	—	27.78	—
Copper recovery	%	66.3	—	60.3	—
Gold recovery	%	30.9	—	28.2	—
Silver recovery	%	45.6	—	40.3	—
Contained metal in concentrate produced
Copper	tonnes	26,474	—	30,515	—	100,000 - 125,000
Gold	oz	3,941	—	5,567	—
Silver	oz	590,892	—	689,213	—
Precious metals 2	oz	13,789	—	17,054	—	50,000 - 65,000
Combined unit operating costs 3,4	US$/tonne	9.22	—	9.22	—	9.00 -10.90
Copper cash costs, net of by-product credits4,5	US$/lb	1.23	—	1.23	—

1Ore mined for the six months ended June 30, 2015 reflects the correction of a reconciliation error affecting previously reported production for the three months ended March 31, 2015.

2For precious metals production and guidance, silver is converted to gold at a ratio of 60:1.

3Reflects combined mine and mill costs per tonne of ore milled. Peru operations combined mine and mill unit costs include G&A costs and reflect the deduction of expected deferred stripping costs.

4Combined operating costs and cash costs, net of by-product credits, exclude costs and tonnes associated with pre-commercial production output.

5Copper cash costs, 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 “Non-IFRS Financial Performance Measures” beginning on page 28 of our MD&A. These cost statistics reflect May and June results subsequent to the declaration of commercial production on May 1, 2015, while production volumes include production before and after the declaration of commercial production.

Mining operations continue to progress as planned and cost optimization is underway. Equipment availabilities are within design parameters and both loading and hauling efficiencies are consistent with expectations. 

Optimization of plant performance was a primary focus in the later part of the second quarter of 2015 in response to normal ramp up challenges regarding ore blending and recoveries. Coordination among the mine planning, mine operations and plant operations groups has resulted in progress, and recoveries are now in line with our expectations. Daily ore throughput continues to meet ramp-up milestones. Since the end of the second quarter, daily ore throughput has averaged approximately 80,000 tonnes and copper recoveries have averaged approximately 75%.

During the second quarter, shipments of copper concentrate from the Constancia mine to the port in Matarani were constrained by several factors including truck availability, protests along the lower part of the trucking route, unrelated to Constancia, and road refurbishment activities along the route that increased cycle times for concentrate trucks.

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Steps have been taken to increase the size of the trucking fleet, and the excess inventory is expected to be drawn down over the second half of 2015.

Commissioning of the molybdenum flotation circuit commenced late in the second quarter of 2015, and ramp up of production is planned during the third quarter.

Metal production and combined operating costs per tonne at Constancia are expected to be within guidance ranges for 2015.

Metal Sold

		Three months ended		Six months ended
		Jun. 30,	Jun. 30,	Jun. 30,	Jun. 30,
		2015	2014	2015	2014
Payable metal in concentrate
Copper	tonnes	18,405	—	18,405	—
Gold	oz	3,223	—	3,223	—
Silver	oz	319,897	—	319,897	—

FINANCIAL REVIEW

Financial Results

In the second quarter of 2015, we recorded a loss of $55.2 million compared to a profit of $0.3 million for the same period in 2014, a decrease of $55.5 million.

Year-to-date 2015, we recorded a loss of $78.9 million compared to a loss of $27.0 million in the same period in 2014, an increased loss of $51.9 million.

The following table provides further details on these variances:

	Three months ended		Six months ended
(in $ millions)	Jun. 30, 2015		Jun. 30, 2015
Increase (decrease) in components of profit or loss:
Revenues	46.5		100.3
Cost of sales
Mine operating costs	(42.0	)	(73.0	)
Depreciation and amortization	(13.4	)	(29.9	)
Tax and other	(46.6	)	(49.3	)
Increased loss for the period	(55.5	)	(51.9	)

For the second quarter of 2015, we increased our gross profit before depreciation by $25.6 million, after excluding from mine operating costs a $21.1 million one-time adjustment for pension past service cost related to new collective bargaining agreements in Manitoba. This increase to gross profit is mainly the result of higher sales volumes resulting from increased production at our Lalor and Reed mines and the achievement of commercial production at Constancia, which resulted in sales revenues being recorded in the second quarter, after pre-commercial production concentrate was sold. Depreciation for the second quarter of 2015 was $13.4 million higher compared to the same period in 2014. This relates primarily to depreciation being recorded at Constancia following the achievement of commercial production effective May 1, 2015 as well as increased depreciation at Lalor following commissioning of the main

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production shaft in 2014.  Tax and other costs were higher in the second quarter of 2015 as a result of a non-cash impairment loss of $24.6 million related to our Lalor concentrator assets in Snow Lake, Manitoba as well as higher interest expense as interest related to our long-term debt is no longer being capitalized to the Constancia project effective May 1, 2015.

Year-to-date, after excluding the pension past service costs, we increased our gross profit before depreciation by $48.4 million.  This is mainly the result of higher sales volumes resulting from increased production at Reed, Lalor, and Constancia.  Offsetting this was higher interest and depreciation expense as well as the non-cash impairment loss related to our Lalor concentrator assets.

Revenue

Total revenue for the second quarter of 2015 was $185.8 million, $46.5 million higher than the same period in 2014, primarily as a result of higher sales volumes with the completion of the Constancia mine and favourable movements in the foreign exchange rate partially offset by lower copper prices, gold sales volumes and higher treatment and refining charges.

Year-to-date revenue was $346.4 million, $100.3 million higher than the same period in 2014, primarily as a result of the completion of the Constancia mine and favourable movements in the foreign exchange rate partially offset by lower copper prices. The following table provides further details of this variance:

	Three months ended		Six months ended
(in $ millions)	Jun. 30, 2015		Jun. 30, 2015
Metals prices1
Lower copper prices	(12.0	)	(19.4	)
Higher zinc prices	3.0		5.1
Higher gold prices	3.1		4.4
Higher silver prices	0.8		0.8
Sales volumes
Higher copper sales volumes	123.5		164.8
Higher zinc sales volumes	3.2		9.8
Lower gold sales volumes	(6.8	)	(4.5	)
Higher silver sales volumes	3.5		3.4
Other
Favourable movement in foreign exchange rates	15.4		33.4
Derivative mark-to-market increase (decrease)	5.8		(4.6	)
Pre-production revenue increase	(77.3	)	(72.8	)
Other volume and pricing differences	(0.4	)	0.3
Effect of higher treatment and refining charges	(15.3	)	(20.4	)
Increase in revenue in 2015 compared to 2014	46.5		100.3

1 See discussion below for further information regarding metals prices.

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Our revenue by significant product type is summarized below:

	Three months ended				Six months ended
	Jun. 30,		Jun. 30,		Jun. 30,		Jun. 30,
(in $ millions)	2015		2014		2015		2014
Copper	183.3		59.9		264.1		106.6
Zinc	74.2		59.9		141.0		112.1
Gold	23.4		25.9		42.5		40.0
Silver	8.7		4.2		11.1		6.6
Other	0.7		1.3		2.4		2.3
Gross revenue1	290.3		151.2		461.1		267.6
Treatment and refining charges	(24.0	)	(8.8	)	(34.2	)	(13.8	)
Pre-production revenue	(80.5	)	(3.1	)	(80.5	)	(7.7	)
Revenue	185.8		139.3		346.4		246.1

1Copper, zinc, gold and silver revenues include unrealized gains and losses related to non-hedge derivative contracts including costless collars that are not included in realized prices.

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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.

Our realized prices for the second quarter and year-to-date 2015 and 2014 are summarized below:

			Realized prices1 for the			Realized prices1 for the
			Three months ended			Six months ended
		LME QTD	Jun. 30,	Jun. 30,	LME YTD	Jun. 30,	Jun. 30,
		20152	2015	2014	20142	2015	2014
Prices in US$
Copper3	US$/lb	2.75	2.61	3.28	2.69	2.65	3.11
Zinc3	US$/lb	1.00	1.08	1.03	0.97	1.06	1.02
Gold3,4	US$/oz		1,397	1,343		1,392	1,316
Silver3,4	US$/oz		17.47	21.95		18.39	21.98
Prices in C$
Copper3	C$/lb	3.38	3.21	3.58	3.32	3.26	3.41
Zinc3	C$/lb	1.22	1.32	1.12	1.20	1.31	1.11
Gold3,4	C$/oz		1,540	1,387		1,544	1,366
Silver3,4	C$/oz		20.22	22.45		21.03	22.64
Exchange rate5	US$1 to C$		1.22	1.08		1.22	1.08

1Realized prices exclude refining and treatment charges and are on the sale of finished metal or metal in concentrate.

2London Metal Exchange average for copper and zinc prices.

3Copper, zinc, gold and silver revenues include unrealized gains and losses related to non hedge derivative contracts including costless collars that are not included in the above realized prices.

For the three months ended June 30, 2015, the unrealized components of the zinc derivative resulted in a loss of US$0.01/lb.

For the three months ended June 30, 2014, the unrealized components of derivatives resulted in a loss of US$0.3/lb; loss of US$0.01/lb; loss of US$3.22/oz, and loss of US$0.22/oz, respectively.

4Sales of gold and silver from our 777 and Constancia mines are subject to our precious metals stream agreement with Silver Wheaton, pursuant to which we recognize deferred revenue for precious metals deliveries and also receive cash payments of US$400/oz for gold deliveries and US$5.90/oz for silver deliveries. See page 18 for details of metals sold under these streaming agreements.

5Average exchange rate for the period for realized sales.

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

Three months ended June 30, 2015

(in $ millions)	Copper	Zinc	Gold	Silver	Other	Total
Revenue per financial statements	183.3	74.2	23.4	8.7	0.7	290.3
Derivative mark-to-mark and other	—	0.7	—	—	—	0.7
Revenue excluding unrealized derivative mark-to-mark	183.3	74.9	23.4	8.7	0.7	291.0
Payable metal in concentrate sold 1	25,868	25,657	15,175	428,095	—	—
Realized price 2,4	7,085	2,919	1,540	20	—	—
Realized price 3,4	3.21	1.32	—	—	—	—

Six months ended June 30, 2015

(in $ millions)	Copper	Zinc	Gold	Silver	Other	Total
Revenue per financial statements	264.1	141.0	42.5	11.1	2.4	461.1
Derivative mark-to-mark and other	1.3	1.2	—	—	—	2.5
Revenue excluding unrealized derivative mark-to-mark	265.4	142.2	42.5	11.1	2.4	463.6
Payable metal in concentrate sold 1	36,863	49,436	27,525	528,411	—	—
Realized price 2,4	7,200	2,877	1,544	21	—	—
Realized price 3,4	3.26	1.31	—	—	—	—

Three months ended June 30, 2014

(in $ millions)	Copper	Zinc	Gold	Silver	Other	Total
Revenue per financial statements	59.9	59.9	25.9	4.2	1.3	151.2
Derivative mark-to-mark and other	6.1	0.3	0.1	—	—	6.5
Revenue excluding unrealized derivative mark-to-mark	66.0	60.2	26.0	4.2	1.3	157.7
Payable metal in concentrate sold 1	8,366	24,351	18,741	191,098	—	—
Realized price 2,4	7,889	2,473	1,387	22	—	—
Realized price 3,4	3.58	1.12	—	—	—	—

Six months ended June 30, 2014

(in $ millions)	Copper		Zinc		Gold	Silver	Other	Total
Revenue per financial statements	106.6		112.1		40.0	6.6	2.3	267.6
Derivative mark-to-mark and other	(2.0	)	(0.4	)	0.2	0.1	—	(2.1	)
Revenue excluding unrealized derivative mark-to-mark	104.6		111.7		40.2	6.7	2.3	265.5
Payable metal in concentrate sold 1	13,905		45,455		29,507	293,907	—	—
Realized price 2,4	7,523		2,458		1,366	23	—	—
Realized price 3,4	3.41		1.11		—	—	—	—

1Copper and zinc shown in tonnes and gold and silver shown in ounces.

2Realized price for copper and zinc in C$/metric tonne and realized price for gold and silver in C$/oz.

3Realized price for copper and zinc in C$/lb.

4Average realized price per unit sold may not calculate based on amounts presented in this table due to rounding.

17

The price, quantity and mix of metals sold, along with movements in the Canadian dollar, 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.

Metal Prices

Since the end of June 2015, copper and zinc prices have declined on concerns regarding Chinese economic activity. As at July 27, 2015, the LME spot copper and zinc prices were US$2.35/lb and US$0.88/lb. Although these declines are mitigated somewhat by depreciation in the Canadian dollar and Peruvian nuevo sol over the same period, continued weakness in copper and zinc prices could adversely impact our financial results and liquidity.

Stream Sales

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

		Three months ended		Six months ended
		Jun. 30, 2015		Jun. 30, 2015
		Manitoba	Peru	Manitoba	Peru
Gold	oz	9,490	3,223	16,119	3,224
Silver	oz	89,518	319,897	138,779	319,897
Gold deferred revenue drawdown rate	US$/oz	1,264.02	436.45	1,264.02	436.45
Gold cash rate	US$/oz	400.00	400.00	400.00	400.00
Silver deferred revenue drawdown rate	US$/oz	25.61	7.63	25.61	7.63
Silver cash rate	US$/oz	5.90	5.90	5.90	5.90
Gold deferred revenue drawdown rate1	C$/oz	1,242.78	535.77	1,242.78	535.77
Gold cash rate1	C$/oz	486.51	486.51	487.19	487.19
Silver deferred revenue drawdown rate1	C$/oz	25.18	9.37	25.18	9.37
Silver cash rate1	C$/oz	7.18	7.18	7.19	7.19

		Three months ended		Six months ended
		Jun. 30, 2014		Jun. 30, 2014
		Manitoba	Peru	Manitoba	Peru
Gold	oz	13,598	—	19,889	—
Silver	oz	144,955	—	206,817	—
Gold deferred revenue drawdown rate	US$/oz	965.19	—	965.19	—
Gold cash rate	US$/oz	400.00	—	400.00	—
Silver deferred revenue drawdown rate	US$/oz	17.89	—	17.89	—
Silver cash rate	US$/oz	5.90	—	5.90	—
Gold deferred revenue drawdown rate1	C$/oz	948.98	—	948.98	—
Gold cash rate1	C$/oz	432.00	—	432.00	—
Silver deferred revenue drawdown rate1	C$/oz	17.59	—	17.59	—
Silver cash rate1	C$/oz	6.37	—	7.45	—

1Deferred revenue drawdowns are converted at the exchange rate in effect at the time of revenue recognition for Peru and at the time the initial deposit was received for Manitoba.   The fixed cash rate is converted at the average exchange rate in effect during the period of revenue recognition.

18

Cost of sales

Our detailed cost of sales is summarized as follows:

	Three months ended				Six months ended
	Jun. 30,		Jun. 30,		Jun. 30,		Jun. 30,
(in $ thousands)	2015		2014		2015		2014
Manitoba mines	41,245		31,008		78,343		60,186
Manitoba concentrators	12,072		10,218		24,411		20,590
Zinc plant	19,019		19,559		40,069		41,031
Constancia mine	10,654		—		10,654		—
Constancia concentrator	26,438		—		26,438		—
Purchased ore and concentrate (before inventory changes)	12,993		31,524		29,095		49,051
Changes in domestic inventory	(48,905	)	(10,191	)	(52,080	)	(33,436	)
Depreciation and amortization - Manitoba	25,792		23,716		57,735		39,143
Depreciation and amortization - Peru	11,353		—		11,353		—
Other charges - Manitoba	50,852		19,385		79,790		45,363
Other charges - Peru	19,092		—		19,092		—
Cost of sales	180,605		125,219		324,900		221,928

Total cost of sales for the second quarter of 2015 was $180.6 million, reflecting an increase of $55.4 million from the second quarter of 2014. Mine, concentrator and depreciation costs were all higher as a result of each of the Lalor production shaft and Constancia being in commercial production.  These costs were partially offset by lower costs of purchased zinc concentrate due to less purchased concentrate being required as a result of increased domestic production. Other charges related to Peru increased by $19.1 million as a result of Constancia being in commercial production. Other charges related to Manitoba increased by $31.5 million and related primarily to past service pension costs of $21.1 million associated with new collective bargaining agreements in Manitoba. Other charges in Manitoba were favourably impacted in the second quarter of 2014 by a $5.7 million adjustment related to zinc inventory.

Year-to-date cost of sales was $324.9 million, an increase of $103.0 million compared to the same period in 2014. Mine, concentrator and depreciation costs were all higher as a result of Lalor, Reed and Constancia being in commercial production.  These costs were partially offset by lower costs of purchased zinc concentrate and purchased ore from our Reed mine joint venture partner, which started after commercial production was achieved on March 31, 2014. Other charges increased by $19.1 million as a result of Constancia being in commercial production, increased distribution costs as a result of increased sales volumes, as well as approximately $21.1 million of past service pension costs associated with new collective bargaining agreements in Manitoba.

For details on unit operating costs refer to the respective tables in the Operations Review section beginning on page 8 of this MD&A.

For the second quarter of 2015, other significant variances in expenses, compared to the same period in 2014, include the following:

·Asset impairment expenses were $24.6 million in the second quarter of 2015 as a result the decision not to proceed with construction of a new concentrator at Lalor following the acquisition of the NBM Mill in May.

19

·Finance expenses increased by $20.9 million compared to the same quarter in the prior year mostly as a result of the achievement of commercial production at Constancia effective May 1, 2015. This triggered the cessation of capitalization of interest costs associated with our senior unsecured notes resulting in the recognition of approximately $16.3 million of interest costs on the statements of income. In addition, there were higher other interest costs and amortization of finance fees which are a function of the expanded corporate senior secured revolving credit facility and the Constancia standby credit facility.

·Other finance gains decreased by $8.3 million, compared to the same period in 2014, primarily as a result of:

·Foreign exchange gains decreased by $5.7 million to $3.4 million compared to higher foreign exchange gains of $9.1 million in the same quarter of the prior year. The difference in gains on foreign exchange is a function of a higher degree of Canadian dollar strengthening versus the US dollar in the comparative period.

·A fair value adjustment on the embedded derivative related to the senior unsecured notes resulted in a gain of $1.1 million in the second quarter of 2015 compared to a larger gain of $2.1 million in the second quarter of 2014.

·Impairment, disposals and mark-to-market on available for sale investments and warrants was a loss of $1.9 million in the second quarter of 2015 compared to a loss of $0.3 million in the second quarter of 2014.

For 2015 year-to-date, other significant variances in expenses from operations, compared to 2014, include the following:

·Selling and administrative expenses decreased by $2.3 million. The decrease was mostly due to pre-acquisition costs of $5.9 million associated with our acquisition of Augusta that were incurred in the same period of the prior year. This was partially offset by an increase in general support costs and an increase of $1.4 million in share based payment expenses for restricted share units as a result of newly issued share compensation for 2015 and an increasing company stock price in the year-to-date period.

·Asset impairment expenses were $24.6 million as a result of the decision not to proceed with construction of a new concentrator at Lalor following the acquisition of the NBM Mill in May.

·Loss on disposal of subsidiary of $6.5 million in the first quarter of 2014 is the result of the sale of our wholly owned subsidiary, Hudbay Michigan Inc.

·Finance expenses increased by $22.9 million compared to the same quarter in the prior year and is primarily the result of the achievement of commercial production at Constancia effective May 1, 2015 and the recognition of approximately $16.3 million of interest costs as noted in the discussion of the second quarter variances above.

·Other finance gains decreased by $8.8 million, compared to the same period in 2014, primarily as a result of:

·Foreign exchange losses increased by $7.1 million to $6.6 million compared to foreign exchange gains of $0.5 million in the same period of the prior year. The losses on foreign exchange are a function of a weakening Canadian dollar versus the US dollar in the current period compared to minimal movement in the currencies in the comparative period.

·Impairment, disposals and mark-to-market on available for sale investments was a loss of $3.6 million in first half of 2015 compared to losses of $1.1 million in the comparative period in 2014.

·Mark-to-market on warrants resulted in a loss of $3.3 million in the first half of 2015.

·The items above were partially offset by a fair value adjustment on the embedded derivative related to the senior unsecured notes resulting in a gain of $9.1 million in the first half of 2015 compared to a gain of $5.0 million in the first half of 2014.

20

The following is a breakdown of the impact of foreign currency translation to total equity:

	Three months ended				Six months ended
	Jun. 30,		Jun. 30,		Jun. 30,		Jun. 30,
(in $ millions)	2015		2014		2015		2014
(Loss) gain on Peruvian nuevo sol denominated transactions, primarily cash translated to USD	(2.7	)	0.8		(5.4	)	(0.6	)
Gain (loss) on revaluation of USD denominated long-term debt, interest expense accrued and intercompany balances, net of transaction costs and embedded derivative	7.6		13.8		(8.7	)	(4.1	)
Gain (loss) on revaluation of USD cash balances	0.6		(4.3	)	6.5		4.0
(Loss) gain on working capital and other small entities	(2.1	)	(1.2	)	1.0		1.2
Total pre-tax gain (loss)	3.4		9.1		(6.6	)	0.5
Total tax recovery (expense) related to translation	1.1		1.4		(0.1	)	(0.9	)
Total gain (loss) to the income statements	4.5		10.5		(6.7	)	(0.4	)
Cumulative translation adjustment (loss) gain in other comprehensive income related to translation of foreign operations, primarily Peru and Arizona	(45.6	)	(54.2	)	167.2		6.7
Total (decrease) increase to equity	(41.1	)	(43.7	)	160.5		6.3

Tax Expense

For the three and six months ended June 30, 2015 tax expense decreased by $8.5 million and $0.9 million, respectively, compared to the same period in 2014. The following table provides further details:

	Three months ended				Six months ended
	Jun. 30,		Jun. 30,		Jun. 30,		Jun. 30,
(in $ thousands)	2015		2014		2015		2014
Non cash - income tax expense 1	(14,190	)	5,045		(5,347	)	7,029
Non cash - mining tax expense 1	3,327		3,036		3,400		4,298
Total non cash tax expense	(10,863	)	8,081		(1,947	)	11,327
Estimated current taxes payable - income tax	2,957		1,318		4,651		2,387
Estimated current taxes payable - mining tax	6,022		(2,808	)	6,044		(4,043	)
Total estimated current taxes payable	8,979		(1,490	)	10,695		(1,656	)
Tax (recovery) expense	(1,884	)	6,591		8,748		9,671

1Non cash tax expenses represent our draw down/increase of non-cash deferred income and mining tax assets/liabilities.

21

Income Tax Expense

Our effective income tax rate on the loss before tax for 2015 year-to-date was approximately  1.0% (2014 year-to-date - negative 54.4%). Applying the estimated Manitoba statutory income tax rate of 27.0% to our loss before taxes of $70.2 million would have resulted in a tax recovery of approximately $18.9 million; however we recorded an income tax recovery of $0.7 million (2014 year-to-date expense - $9.4 million). The significant items causing our effective income tax rate to be different than the 27.0% estimated Manitoba statutory income tax rate include:

·Certain deductible temporary differences with respect to Manitoba were not recognized related to decommissioning and restoration and other employee benefit liabilities as we have determined that it is not probable that we will realize the recovery, adjusted for the application of the average annual effective tax rate methodology, resulting in an increase in deferred tax expense of approximately $8 million;

·Certain taxable temporary differences were determined probable to reverse within the timeframe of the 15 year tax stability agreement in Peru and will be subject to the higher applicable tax rates in Peru, resulting in an increase in deferred tax expense of $6.8 million;

·Certain foreign exchange losses of $6.5 million (2014 year-to-date - $4.6 million) are not deductible for local income tax purposes and therefore result in an increase in deferred tax expense of approximately $1.8 million; and,

·Increases to our decommissioning and restoration liabilities resulting from a significant decrease in discount rates required us to record a corresponding non-cash increase to property, plant, and equipment. We recognized a deferred tax expense of $1.1 million (2014 year-to-date — $3.7 million) related to the increase in property, plant and equipment; however, we did not recognize a deferred tax recovery related to the increase in the decommissioning and restoration liabilities because we determined it is not probable that we will realize the benefit of the recovery.

Mining Tax Expense

Applying the Manitoba statutory income tax rate of 10.0% to our loss before taxes for the year-to-date period of $70.2 million would have resulted in a tax recovery of approximately $7.0 million and we recorded a mining tax expense of $9.5 million (2014 year-to-date - $0.3 million). For the 2015 year-to-date period, our effective rate for mining taxes was approximately negative 13.5% (2014 year-to-date - negative 1.5%). 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 on 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 $50 million or less;

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

·17% of total mining taxable profit if mining profits exceed $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 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 June 30, 2015 at the tax rate we expect to apply when temporary differences reverse.

22

LIQUIDITY AND CAPITAL RESOURCES

Senior Secured Revolving Credit Facility

On March 13, 2015, we completed an expansion of our corporate revolving credit facility from US$100 million to US$300 million. Subsequently we received commitments from our current lenders to increase the size of the facility from US$300 million to US$400 million.

The new US$400 million revolving credit facility will be on substantially similar terms to the existing credit facility it will replace. It is intended to provide us with additional liquidity as the Constancia project ramps up to full production and to support our growth initiatives. The new credit facility matures in March 2018. As at June 30, 2015, we were in compliance with our covenants under the facility.

At June 30, 2015, $69.9 million (or US$56.0 million at June 30, 2015 exchange rates) of letters of credit had been advanced under the credit facility to support our reclamation obligations in Manitoba. In total, US$167.9 million was owing under the facility at June 30, 2015.

Equipment Finance Facility

In October 2013, we entered into an equipment financing facility to finance the purchase of components of the mobile fleet at our Constancia project. Loans pursuant to the equipment financing facility have a term of six years, amortized on a quarterly basis, and are secured by the financed equipment. As at June 30, 2015, we had approximately US$77.5 million owing under the facility.

Constancia Standby Credit Facility

In June 2014, we entered into a US$150 million standby credit facility to provide financing for expenditures on the Constancia project, if required. Drawdowns under the facility are repayable in quarterly instalments beginning December 31, 2015 and ending September 30, 2018. The facility is secured by the assets of our Peru business unit.  As at June 30, 2015, we had US$147.0 million owing under the facility.

Financial Condition

Financial Condition as at June 30, 2015 compared to December 31, 2014

Cash and cash equivalents decreased by $64.0 million from December 31, 2014 to $143.3 million as at June 30, 2015. This decrease was mainly a result of $321.7 million of investments primarily at our Constancia project, the $14.2 million acquisition of the NBM Mill, interest payments of $58.8 million, deposits of restricted cash in Peru of $27.7 million, principal payments of $9.2 million related to our equipment financing facility and dividends paid of $2.3 million. These amounts were partly offset by net borrowings from various long term financing facilities of $325.9 million, proceeds from the issuance of shares to acquire the NBM Mill of $16.0 million and $3.4 million of value added tax refunds from the Peruvian government. 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 $40.7 million to $141.8 million from December 31, 2014 to June 30, 2015. In addition to the decreased cash and cash equivalents position:

·Receivables increased by $59.7 million, primarily due to an increase in the current portion of the statutory receivable related to the Peruvian sales tax due to the timing of expected receipts;

·Inventories increased by $89.7 million as a result of timing of concentrate shipments;

·Trade and other payables decreased by $21.5 million primarily as a result of reduced development activities at Constancia and timing of interest payments on long-term debt;

·Current portion of long-term debt increased by $56.0 million in relation to the Constancia standby credit facility; and

·Current portion of deferred revenue increased by $9.1 million in relation to anticipated precious metals production.

23

Cash Flows

The following table summarizes our cash flows for the three months and three and six months ended June 30, 2015 and June 30, 2014.

	Three months ended				Six months ended
	Jun. 30,		Jun. 30,		Jun. 30,		Jun. 30,
(in $ thousands)	2015		2014		2015		2014
(Loss) profit for the period	(55,218	)	252		(78,921	)	(26,967	)
Tax (recovery) expense	(1,884	)	6,591		8,748		9,671
Items not affecting cash	79,232		7,815		117,005		28,235
Taxes recovered	(1,469	)	(2,894	)	(2,115	)	(3,809	)
Operating cash flows before change in non-cash working capital	20,661		11,764		44,717		7,130
Precious metal stream deposit	—		—		—		139,287
Change in non-cash working capital	(3,480	)	(21,310	)	(26,341	)	(40,389	)
Cash used in operating activities	17,181		(9,546	)	18,376		106,028
Cash used in investing activities	(168,359	)	(221,852	)	(361,262	)	(403,058	)
Cash used in financing activities	174,510		27,600		270,265		209,310
Effect of movement in exchange rates on cash and cash equivalents	(2,585	)	(12,920	)	8,619		3,576
Increase (decrease) in cash and cash equivalents	20,747		(216,718	)	(64,002	)	(84,144	)

Cash Flow from Operating Activities

Operating cash flow before change in non cash working capital was $20.7 million for the second quarter of 2015, a $8.9 million increase compared with the same period in 2014. This increase was primarily as a result of the completion of the Constancia mine, which resulted in higher sales volumes.

Year-to-date operating cash flow before change in non cash working capital in 2015 was $44.7 million, reflecting an increase of $37.6 million compared to 2014, mainly as a result of the completion of the Constancia mine, higher copper sales volumes from the ramp up of both our Lalor and Reed mines and the favourable impact of a stronger US dollar on sales.

Cash Flow from Investing and Financing Activities

During the second quarter of 2015 our investing and financing activities generated cash of $6.2 million. The net inflow of cash is the result of net borrowings on various long term financing facilities of $166.2 million and proceeds from the issuance of equity, which were utilized to purchase the New Britannia asset of $16.0 million. This was partially offset by capital expenditures of $152.2 million and the acquisition of the NBM Mill for $14.2 million.

Year-to-date, we used $91.0 million in investing and financing activities primarily driven by capital expenditures of $317.0 million, the net amount paid for the acquisition of the NBM Mill for $14.2 million, and interest payments of $58.8 million. In addition, we reclassified $27.7 million from cash and cash equivalents to restricted cash as Hudbay Peru was required to provide a letter of credit as a second annual deposit of security with respect to its decommissioning and restoration obligations. These activities were partly offset by net borrowings of $325.9 million related to various long term financing facilities and proceeds of $16.0 million from the issuance of equity, which were utilized to purchase the New Britannia assets.

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Capital Expenditures

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

	Three months ended				Six months ended
	Jun. 30,		Jun. 30,		Jun. 30,	Jun. 30,
(in $ millions)	2015		2014		2015	2014
Manitoba sustaining capital expenditures	18.8		25.6		42.2	49.8
Peru sustaining capital expenditures 1	55.1		—		83.6	—
Sustaining capital expenditures	73.9		25.6		125.8	49.8
Lalor Project	1.8		15.3		1.9	29.1
Peru project and pre-commercial production 1	64.0		206.5		156.4	369.5
Rosemont Project	13.8		—		24.8	—
Reed Project	—		(2.7	)	—	2.3
Growth capital expenditures	79.6		219.1		183.1	400.9
Capital accruals for the period	(1.3	)	(1.7	)	8.1	(0.3	)
Total	152.2		243.0		317.0	450.4

1Peru capital expenditures include pre-production net revenues and are reported net of capital accruals.

Our capital expenditures for the three months ended June 30, 2015 were $152.2 million, a decrease of $90.8 million compared to the same period in 2014. The decrease is primarily due to decreased expenditures at our Constancia project due to the completion of the Constancia mine during the second quarter of 2015. This was partially offset by Rosemont project costs and higher sustaining capital to support our Lalor and Reed mines.

Our capital expenditures for the six months ended June 30, 2015 decreased by $133.4 million compared to the same period in 2014, primarily due to decreased capitalized expenditures at our Constancia project due to completion of the Constancia mine.

25

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

	Three months ended				Six months ended		2015
	Jun. 30,		Jun. 30,		Jun. 30,	Jun. 30,	Full Year
(in $ millions)	2015		2014		2015	2014	Guidance
Manitoba sustaining capital expenditures	15.4		25.2		36.8	48.9	140.0
Peru sustaining capital expenditures	58.7		—		87.2	—	180.0
Sustaining capital expenditures	74.1		25.2		124.0	48.9	320.0
Arizona capitalized costs	13.8		—		24.8	—	60.0
Peru other capitalized costs	(48.7	)	260.0		49.1	457.5
Manitoba other capitalized costs	(3.0	)	(1.7	)	12.6	24.1
Other capitalized costs	(37.9	)	258.3		86.5	481.6
Total	36.2		283.5		210.5	530.5

Capital expenditures for the full year 2015 (not including pre-commercial production costs) are expected to be in line with guidance in their local currencies; however, as Peru and Arizona capital expenditures are primarily in US dollars, if the Canadian dollar-US dollar exchange rate remains higher than the 1.10 rate assumed for guidance purposes, actual spending in Canadian dollar terms will be higher.

Other Peru capitalized costs include capitalized interest as well as capitalized pre-commercial production operating costs, net of pre-commercial production sales receipts. Other Manitoba capitalized costs includes capitalized exploration and decommissioning and restoration adjustments.

Capital Commitments

As at June 30, 2015, we had outstanding capital commitments in Canada of approximately $29.9 million primarily related to committed mobile equipment purchases for Lalor and 777, none of which can be terminated by Hudbay, approximately $186.7 million in Peru related to sustaining capital costs, of which all can be terminated by Hudbay and approximately $328.4 million in Arizona, primarily related to the Rosemont project and expected to be paid after the commencement of Rosemont construction, of which approximately $192.1 million cannot be terminated by Hudbay.

Liquidity

At June 30, 2015, we had total pro-forma available and committed liquidity of approximately $436.6 million, including $143.3 million in cash and cash equivalents and availability under our committed credit facilities. In the second half of 2015, we expect to realize over $100 million in cash flow from the sale of excess copper concentrate inventory and value added tax refunds from the Peruvian government. We expect that our current liquidity and these expected cash flows will be sufficient to meet our liquidity needs for 2015.

To the extent that metals prices decline materially from current levels or we have other unanticipated demands on liquidity, we may need to raise additional financing or pursue other corporate initiatives.

Outstanding Share Data

As of July 28, 2015, there were 235,231,688 common shares of Hudbay issued and outstanding. In addition, Hudbay warrants to acquire an aggregate of 21,830,490 common shares of Hudbay were outstanding and Augusta warrants to acquire an aggregate of 1,039,500 common shares of Hudbay and 561,000 warrants of Hudbay were outstanding; there were also options for an aggregate of 1,924,189 common shares outstanding.

26

TREND ANALYSIS AND QUARTERLY REVIEW

The following table sets forth selected consolidated financial information for each of our eight most recently completed quarters.

	2015				2014						2013
(in $ thousands)	Q2		Q1		Q4		Q3	Q2	Q1		Q4		Q3
Revenue	185,779		160,652		128,416		185,431	139,329	106,779		136,082		130,179
Profit (loss) before tax	(57,102	)	(13,076	)	(28,750	)	57,586	6,843	(24,139	)	(33,693	)	9,650
Profit (loss)	(55,218	)	(23,708	)	49,583		49,248	252	(27,219	)	(61,481	)	2,985
Earnings (loss) per share:
Basic	(0.24	)	(0.10	)	0.21		0.22	—	(0.15	)	(0.32	)	0.03
Diluted	(0.24	)	(0.10	)	0.21		0.22	—	(0.15	)	(0.32	)	0.03
Operating cash flow per share1	0.09		0.10		(0.01	)	0.05	0.06	(0.02	)	—		0.07

1Operating cash flow per share is before stream deposit and change in non-cash working capital. It is a non IFRS financial performance measure with no standardized definition under IFRS. For further information and a detailed reconciliation, refer to page 28 of this MD&A.

With both the Lalor and Reed mines achieving commercial production in 2014, copper production volumes have increased compared to 2013 and the beginning of 2014. In addition, during the second quarter of 2015, Constancia achieved commercial production with associated net proceeds from sales related to pre-production being credited to property, plant and equipment. Constancia reported sales revenue from shipments in late June which resulted in an increase in sales compared to previous quarters. There were a number of non-cash accounting adjustments in the second quarter of 2015 including the negative impact to cost of sales of the $21.1 million charge related to pension enhancements which arose as a result of new collective agreements with six of the seven unions in Manitoba. In addition, during the second quarter of 2015, we recognized an impairment on our Lalor concentrator assets of $24.6 million as a result of the decision not to proceed with construction of a new concentrator at Lalor following from the acquisition of the NBM Mill in May 2015. Lastly, with the completion of the Constancia project we recorded $16.3 million of interest expense in our statements of income which would have previously been capitalized interest costs.

In the first quarter of 2015, sales revenue and operating cash flow per share increased primarily as a result of higher copper and zinc sales volumes offset partially by lower realized copper prices. The continuing strengthening of the US dollar against the Canadian dollar positively impacted revenues while negatively impacting net profit as a result of unrealized losses on the revaluation of net liability monetary items.

The fourth quarter of 2014 benefited from higher zinc metal production volumes and higher zinc realized prices causing zinc revenues to increase. The fourth quarter of 2014 also benefited from favourable movements in foreign exchange rates and favourable mark-to-market adjustments on certain financial instruments. However, this was offset by lower copper sales volumes due to the timing of shipments and lower realized copper prices causing a net decrease in revenues and pre-tax profit for the fourth quarter 2014.  Profit, after tax, was higher in the fourth quarter of 2014 as a result of deferred tax recoveries of $78.3 million resulting from the recognition of previously unrecognized deductible temporary differences in both Peru and Manitoba.

The third quarter of 2014 benefited from increases in copper output and also from the one-time gain on disposition of previously owned shares in Augusta of $50.3 million. In addition, the first quarterly mark-to-market adjustment related to the Hudbay warrant consideration paid to Augusta shareholders and the Augusta warrants that we assumed in connection with the acquisition resulted in a gain of $22.0 million. However, these gains were offset by $12.0 million of costs in connection with the acquisition of Augusta during the third quarter of 2014. The volatile currency markets continued in the third quarter of 2014 resulting in a loss on foreign exchange of $10.5 million.

27

The second quarter of 2014 benefited from the aforementioned increase in copper output and also from foreign exchange gains of $9.1 million as a result of a stronger Canadian dollar against the US dollar, which favourably impacts translation of our unsecured notes. The loss in the first quarter of 2014 was related to a loss on disposal of Hudbay Michigan of $6.5 million and foreign exchange losses of $8.6 million incurred from the weakening of the Canadian dollar against the US dollar.

The loss in the fourth quarter of 2013 included foreign currency translation losses, an impairment charge on the Back Forty project and deferred tax expense associated with Peruvian items. The profits in the third quarter of 2013 was mainly a result of finance gains related to foreign exchange gains as well as a lower tax expense as a result of lower gross margin. The loss in the second quarter of 2013 was mainly the result of foreign exchange loss and deferred tax expense on the translation of Peruvian tax basis.

Operating cash flow per share was higher in the first and second quarters of 2015 and the second, third and fourth quarters of 2014, compared to the first quarter of 2014, as a result of higher revenues derived mostly from higher zinc, gold and silver realized prices and sustained production volumes. In general, over the past eight quarters, revenues have varied as a result of volatile commodity prices and the timing of shipments.

NON-IFRS FINANCIAL PERFORMANCE MEASURES

Operating cash flow per share and cash cost per pound of copper produced are included in this MD&A because we believe that, in the case of operating cash flow per share, it helps investors and management to evaluate changes in cash flow while taking into account changes in shares outstanding, and in the case of cash cost per pound of copper produced, it helps investors assess the performance of our operations. These measures do not have a meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently.

Operating Cash Flow per Share

The following table presents our calculation of operating cash flow per share for the three months and  three and six months ended June 30, 2015 and June 30, 2014:

	Three months ended				Six months ended
(in $ thousands, except shares and	Jun. 30,		Jun. 30,		Jun. 30,		Jun. 30,
per share amounts)	2015		2014		2015		2014
Operating cash flows before stream deposit and change in non-cash working capital	20,661		11,764		44,717		7,130
Weighted average shares outstanding - basic	234,588,385		193,015,043		234,109,246		189,542,667
Operating cash flows per share 1	$	0.09	$	0.06	$	0.19	$	0.04

1Operating cash flow per share is before stream deposit and change in non-cash working capital. It is a non IFRS financial performance measure with no standardized meaning under IFRS.

28

Reconciliation of Cash Cost, After By-product Credits (non-IFRS) to Cost of Sales (IFRS)

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, and is expected to be, the largest component of revenues. Two changes have been made to the cash cost calculation beginning with the period ended June 30, 2015.  First, the basis of measurement has been changed from pounds of copper sold to pounds of copper produced.  This change has been made to better align the costs of production in the same period as the copper produced and reduce variation in cash cost due to inventory sales timing.  Second, royalties have been removed from the cash cost.  This change increases consistency between our cash cost calculation and industry peers.  The calculation is presented in two 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, and an increase in production of zinc metal will tend to result in an increase in cash costs under this measure.

·Cash cost, net of by-product credits - In order to calculate the 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, silver, and molybdenum are significant and are integral to the economics of our Company. The economics that support our decision to produce and sell copper would be different if our Company 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 cash flows and 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.

The tables below present a detailed build-up of cash cost by business unit in addition to reconciliations between cash cost, after by-product credits to the most comparable GAAP measures of cost of sales for the three and six-month periods ended June 30, 2015 and 2014. Cash costs, net of by-product credits per pound of copper produced may not calculate based on amounts presented in the tables below due to rounding.

29

Consolidated	Three months ended		Six months ended
Net pounds of copper produced1	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
(in thousands)
Manitoba	21,469	21,557	45,647	36,850
Peru	39,991	—	39,991	—
Net pounds of copper produced1	61,460	21,557	85,638	36,850

Consolidated	Three months ended								Six months ended
Cash costs per pound of	Jun. 30, 2015				Jun. 30, 2014				Jun. 30, 2015				Jun. 30, 2014
copper produced	$000s		$/lb		$000s		$/lb		$000s		$/lb		$000s		$/lb
Cash cost, before by-product credits	182,965		2.98		123,039		5.71		306,732		3.58		229,436		6.23
By-product credits	(85,783	)	(1.40	)	(75,467	)	(3.50	)	(166,154	)	(1.94	)	(136,938	)	(3.72	)
Cash cost, net of by-product credits	97,182		1.58		47,572		2.21		140,578		1.64		92,498		2.51
Average US$/C$ exchange rate	1.23				1.08				1.24				1.08
Cash cost, net of by-product credits - US$	79,048		1.29		44,048		2.04		113,802		1.33		85,646		2.32

1Contained copper in concentrate, exclusive of Constancia copper produced prior to the achievement of commercial production on May 1, 2015.

Consolidated	Three months ended								Six months ended
Supplementary cash cost	Jun. 30, 2015				Jun. 30, 2014				Jun. 30, 2015				Jun. 30, 2014
information	$000s		$/lb 1		$000s		$/lb 1		$000s		$/lb 1		$000s		$/lb 1
By-product credits:
Zinc	74,228		1.21		59,944		2.78		140,997		1.65		112,133		3.04
Gold	23,377		0.38		25,928		1.20		42,495		0.50		40,043		1.09
Silver	8,656		0.14		4,244		0.20		11,111		0.13		6,587		0.18
Other	766		0.01		1,262		0.06		2,455		0.03		2,246		0.06
Total by-product credits	107,027		1.74		91,378		4.24		197,058		2.30		161,009		4.37
Less: deferred revenue	(18,593	)	(0.30	)	(15,454	)	(0.72	)	(28,253	)	(0.33	)	(22,515	)	(0.61	)
Less: pre-production credits	(2,651	)	(0.04	)	(457	)	(0.02	)	(2,651	)	(0.03	)	(1,556	)	(0.04	)
Total by-product credits, net of pre-production credits	85,783		1.40		75,467		3.50		166,154		1.94		136,938		3.72
Reconciliation to IFRS:
Cash cost, net of by-product credits	97,182				47,572				140,578				92,498
By-product credits	107,027				91,378				197,058				161,009
Change in deferred revenues	(18,593	)			(15,454	)			(28,253	)			(22,515	)
Pre-production revenues	(2,651	)			(457	)			(2,651	)			(1,556	)
Treatment and refining charges 2	(14,550	)			(8,781	)			(24,704	)			(13,836	)
Share based payment	303				400				611				642
Pension enhancement	21,101				—				21,101				—
Adjustments related to zinc inventory write-off (reversals)	—				(5,685	)			—				(5,011	)
Change in product inventory	(48,905	)			(10,191	)			(52,080	)			(33,436	)
Royalties	2,546				2,721				4,152				4,990
Depreciation and amortization	37,145				23,716				69,088				39,143
Cost of sales	180,605				125,219				324,900				221,928

1Per pound of copper produced.

2Excludes $9,500 of treatment and refining charges which were incurred prior to commercial production.

30

Manitoba	Three months ended		Six months ended
(in thousands)	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Pounds of copper produced1	21,469	21,557	45,647	39,092
Less: pre-production pounds of copper produced1	—	—	—	(2,244	)
Net pounds of copper produced1	21,469	21,557	45,647	36,848

Manitoba	Three months ended								Six months ended
Cash cost per pound of	Jun. 30, 2015				Jun. 30, 2014				Jun. 30, 2015				Jun. 30, 2014
copper produced	$000s		$/lb		$000s		$/lb		$000s		$/lb		$000s		$/lb
Mining	41,245		1.92		31,008		1.44		78,343		1.72		60,186		1.63
Milling	12,072		0.56		10,218		0.47		24,411		0.53		20,590		0.56
Refining (zinc)	19,019		0.89		19,559		0.91		40,069		0.88		41,031		1.11
G&A	18,304		0.85		14,052		0.65		33,900		0.74		30,659		0.83
Purchased ore and zinc concentrates	12,993		0.61		31,524		1.46		29,095		0.64		49,051		1.33
Onsite costs	103,633		4.83		106,361		4.93		205,818		4.51		201,517		5.47
Treatment & refining	9,064		0.42		8,781		0.41		19,218		0.42		13,836		0.38
Freight & other	9,122		0.42		7,897		0.37		20,550		0.45		14,083		0.38
Cash cost, before by-product credits	121,819		5.67		123,039		5.71		245,586		5.38		229,436		6.23
By-product credits	(85,218	)	(3.97	)	(75,467	)	(3.50	)	(165,589	)	(3.63	)	(136,938	)	(3.72	)
Cash cost, net of by-product credits	36,601		1.70		47,572		2.21		79,997		1.75		92,498		2.51
Average US$/C$ exchange rate	1.23				1.08				1.24				1.08
Cash cost, net of by-product credits - US$	29,771		1.39		44,048		2.04		64,759		1.42		85,646		2.32

1Contained copper in concentrate.

Manitoba	Three months ended								Six months ended
Supplementary cash cost	Jun. 30, 2015				Jun. 30, 2014				Jun. 30, 2015				Jun. 30, 2014
information	$000s		$/lb 1		$000s		$/lb 1		$000s		$/lb 1		$000s		$/lb 1
By-product credits:
Zinc	74,228		3.46		59,944		2.78		140,997		3.09		112,133		3.04
Gold	20,795		0.97		25,928		1.20		39,913		0.87		40,043		1.09
Silver	3,297		0.15		4,244		0.20		5,752		0.13		6,587		0.18
Other	766		0.04		1,262		0.06		2,455		0.05		2,246		0.06
Total by-product credits	99,086		4.62		91,378		4.24		189,117		4.14		161,009		4.37
Less: deferred revenue	(13,868	)	(0.65	)	(15,454	)	(0.72	)	(23,528	)	(0.52	)	(22,515	)	(0.61	)
Less: pre-production credits	—		—		(457	)	(0.02	)	—		—		(1,556	)	(0.04	)
Total by-product credits, net of pre-production credits	85,218		3.97		75,467		3.50		165,589		3.63		136,938		3.72
Reconciliation to IFRS:
Cash cost, net of by-product credits	36,601				47,572				79,997				92,498
By-product credits	99,086				91,378				189,117				161,009
Change in deferred revenues	(13,868	)			(15,454	)			(23,528	)			(22,515	)
Pre-production revenues	—				(457	)			—				(1,556	)
Treatment and refining charges	(9,064	)			(8,781	)			(19,218	)			(13,836	)
Share based payment	303				400				611				642
Pension enhancement	21,101				—				21,101				—
Adjustments related to zinc inventory write-off (reversals)	—				(5,685	)			—				(5,011	)
Change in product inventory	(19,658	)			(10,191	)			(22,833	)			(33,436	)
Royalties	2,021				2,721				3,627				4,990
Depreciation and amortization	25,792				23,716				57,735				39,143
Cost of sales	142,314				125,219				286,609				221,928

1Per pound of copper produced.

31

In Manitoba cash cost net of by-product credits in the second quarter of 2015 was US$1.39/lb a decrease of US$0.65/lb, compared to the same period of 2014.  The decrease is largely the result of less reliance on purchased zinc concentrates, increased zinc by-product credits, and the effect of foreign exchange on Canadian dollar denominated costs in the quarter. Purchased zinc concentrate requirements decreased significantly as a result of higher production at Lalor following completion of the production shaft in the third quarter of 2014.  Zinc plant production and sales volume levels in the current quarter were 9% and 5% higher respectively versus the comparative quarter as a result of greater availability of zinc concentrates and its positive effect on plant utilization.  Zinc by-product credits were also favourably impacted by a 5% increase in realized zinc price in the current quarter.  The Canadian dollar weakened 13% relative to the US dollar versus the comparative quarter, partially offsetting a 29% increase in mining and milling costs in Canadian dollar terms.

Year-to-date cash cost net of by-product credits in Manitoba was US$1.42/lb, compared to US$2.32/lb in 2014.  Similar to the current quarter variance, the year-to-date variance is largely the result of reduced purchased zinc concentrate usage, higher zinc by-product credits, and the effect of foreign exchange on Canadian dollar denominated costs in the quarter.

	Three months ended			Six months ended
Peru	Jun. 30, 2015		Jun. 30, 2014	Jun. 30, 2015		Jun. 30, 2014
(in thousands)
Pounds of copper produced1	58,365		—	67,273		—
Less: pre-production production of copper produced1	(18,374	)	—	(27,282	)	—
Net pounds of copper produced1	39,991		—	39,991		—

Peru	Three months ended						Six months ended
Cash cost per pound of copper	Jun. 30, 2015				Jun. 30, 2014		Jun. 30, 2015				Jun. 30, 2014
produced	$000s		$/lb		$000s	$/lb	$000s		$/lb		$000s	$/lb
Mining	10,654		0.27		—	—	10,654		0.27		—	—
Milling	26,438		0.66		—	—	26,438		0.66		—	—
G&A	8,659		0.22		—	—	8,659		0.22		—	—
Onsite costs	45,751		1.14		—	—	45,751		1.14		—	—
Treatment & refining	5,486		0.14		—	—	5,486		0.14		—	—
Freight & other	9,909		0.25		—	—	9,909		0.25		—	—
Cash cost, before by-product credits	61,146		1.53		—	—	61,146		1.53
By-product credits	(565	)	(0.01	)	—	—	(565	)	(0.01	)	—	—
Cash cost, net of by-product credits	60,581		1.51		—	—	60,581		1.51		—	—
Average US$/C$ exchange rate	1.23				—		1.24				—
Cash cost, net of by-product credits - US$	49,277		1.23		—	—	49,043		1.23		—	—

1Contained copper in concentrate.

32

Peru	Three months ended							Six months ended
Supplementary cash cost	Jun. 30, 2015				Jun. 30, 2014			Jun. 30, 2015				Jun. 30, 2014
information	$000s		$/lb 1		$000s	$/lb 1		$000s		$/lb 1		$000s	$/lb 1
By-product credits:
Gold	2,582		0.06		—	—		2,582		0.06		—	—
Silver	5,359		0.13		—	—		5,359		0.13		—	—
Total by-product credits	7,941		0.20		—	—		7,941		0.20		—	—
Less: deferred revenue	(4,725	)	(0.12	)	—	—		(4,725	)	(0.12	)	—	—
Less: pre-production credits	(2,651	)	(0.07	)	—	—		(2,651	)	(0.07	)	—	—
Total by-product credits, net of pre-production credits	565		0.01		—	—		565		0.01		—	—
Reconciliation to IFRS:
Cash cost, net of by-product credits	60,581				—	60,581				—
By-product credits	7,941				—	7,941				—
Change in deferred revenues	(4,725	)			—	(4,725	)			—
Pre-production revenues	(2,651	)			—	(2,651	)			—
Treatment and refining charges2	(5,486	)			—	(5,486	)			—
Change in product inventory	(29,247	)			—	(29,247	)			—
Royalties	525				—	525				—
Depreciation and amortization	11,353				—	11,353				—
Cost of sales	38,291				—	38,291				—

1Per pound of copper produced.

2Excludes $9,500 of treatment and refining charges which were incurred prior to commercial production.

ACCOUNTING CHANGES AND CRITICAL ESTIMATES

New standards adopted in 2015

For information on our adoption of new accounting standards, refer to note 3 of our June 30, 2015 condensed consolidated interim financial statements.

New standards and interpretations not yet adopted

For information on new standards and interpretations not yet adopted, refer to note 4 of our June 30, 2015 condensed consolidated interim financial statements.

Estimates and judgements

For information on significant areas requiring us to make estimates and judgements, refer to note 2 of our June 30, 2015 condensed 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.

33

We did not make any changes to ICFR during the quarter ended June 30, 2015 that materially affected or are reasonably likely to materially affect our ICFR.

34

EX-99.2

Exhibit 99.2

Unaudited Condensed Consolidated Interim Financial Statements

(In Canadian dollars)

HUDBAY MINERALS INC.

For the three and six months ended June 30, 2015 and 2014

HUDBAY MINERALS INC.

Condensed Consolidated Interim Balance Sheets

(Unaudited and in thousands of Canadian dollars)

		Jun. 30,		Dec. 31,
	Note	2015		2014
Assets
Current assets
Cash and cash equivalents		$	143,271	$	207,273
Trade and other receivables	7	270,924		211,243
Inventories	8	177,411		87,709
Prepaid expenses	9	16,232		15,305
Other financial assets	10	—		1,345
Taxes receivable		12,429		11,941
		620,267		534,816
Receivables	7	26,982		24,824
Inventories	8	8,567		7,857
Prepaid expenses	9	—		246
Other financial assets	10	97,556		72,897
Intangible assets - computer software		13,810		12,063
Property, plant and equipment	11	5,143,857		4,715,811
Goodwill		226,507		210,655
Deferred tax assets	17b	53,965		48,339
		$	6,191,511	$	5,627,508
Liabilities
Current liabilities
Trade and other payables		$	259,188	$	280,683
Taxes payable		1,712		342
Other liabilities	12	46,306		47,248
Other financial liabilities	13	7,788		7,001
Current portion of long term debt	14	73,112		17,139
Deferred revenue	15	90,336		81,279
		478,442		433,692
Other financial liabilities	13	57,158		51,543
Long term debt	14	1,467,196		1,127,957
Deferred revenue	15	717,162		717,015
Provisions	16	199,330		183,700
Pension obligations		45,286		49,384
Other employee benefits		178,139		175,548
Deferred tax liabilities	17b	480,181		441,949
		3,622,894		3,180,788
Equity
Share capital	18b	1,641,876		1,624,419
Reserves		375,327		189,630
Retained earnings		551,414		632,671
Equity attributable to owners of the Company		2,568,617		2,446,720
		$	6,191,511	$	5,627,508

Capital commitments (note 21).

1

HUDBAY MINERALS INC.

Condensed Consolidated Interim Statements of Cash Flow

(Unaudited and in thousands of Canadian dollars)

		Three months ended						Six months ended
		June 30,						June 30,
	Note	2015			2014			2015			2014
Cash generated from (used in) operating activities:
(Loss) profit for the period		$	(55,218	)	$	252		$	(78,921	)	$	(26,967	)
Tax (recovery) expense	17a	(1,884		)	6,591			8,748			9,671
Items not affecting cash:
Depreciation and amortization	6b	37,345			23,909			69,484			39,521
Share-based payment expense	6c	2,611			2,476			4,792			3,800
Net finance expense	6e	22,807			1,434			26,807			3,037
Change in fair value of derivatives		(412		)	4,365			(6,622		)	(7,118		)
Change in deferred revenue related to stream	15	(18,593		)	(15,454		)	(28,253		)	(22,515		)
Change in taxes receivable/payable, net		(7,510		)	4,384			(8,580		)	5,464
Unrealized (gain) loss on warrants		(102		)	—			3,284			—
Pension past service costs		21,101			—			21,101			—
Asset impairment / loss on disposition of subsidiary	6f, 6g	24,627			—			24,627			6,512
Impairment and mark-to-market losses	6e	1,979			338			3,603			1,132
Foreign exchange and other		(4,621		)	(13,637		)	6,762			(1,598		)
Taxes paid		(1,469		)	(2,894		)	(2,115		)	(3,809		)
Operating cash flows before stream deposit and change in non-cash working capital		20,661			11,764			44,717			7,130
Precious metals stream deposit	15	—			—			—			139,287
Change in non-cash working capital	22a	(3,480		)	(21,310		)	(26,341		)	(40,389		)
		17,181			(9,546		)	18,376			106,028
Cash generated from (used in) investing activities:
Acquisition of property, plant and equipment		(152,132		)	(242,860		)	(316,828		)	(449,874		)
Acquisition of intangible assets		(86		)	(142		)	(133		)	(478		)
Acquisition of New Britannia, net cash paid	5a	(14,231		)	—			(14,231		)	—
Sale (acquisition) of investment		—			424			—			(2,463		)
Addition to restricted cash		—			—			(27,736		)	(22,963		)
Peruvian sales tax refunded on capital expenditures		1,262			20,981			3,397			72,533
Net interest received (paid)		(3,172		)	(255		)	(5,731		)	187
		(168,359		)	(221,852		)	(361,262		)	(403,058		)
Cash generated from (used in) financing activities:
Long-term debt borrowing, net of transaction costs		166,216			27,724			325,915			86,926
Principal repayments	14	(4,567		)	—			(9,228		)	—
Interest paid on long-term debt		(3,214		)	—			(58,784		)	(39,697		)
Proceeds from exercise of stock options		894			155			1,007			155
Financing costs		(841		)	(139		)	(2,331		)	(1,137		)
Proceeds (costs) from issuance of equity		16,022			(140		)	16,022			164,991
Dividends paid	18b	—			—			(2,336		)	(1,928		)
		174,510			27,600			270,265			209,310
Effect of movement in exchange rates on cash and cash equivalents		(2,585		)	(12,920		)	8,619			3,576
Net increase (decrease) in cash and cash equivalents		20,747			(216,718		)	(64,002		)	(84,144		)
Cash and cash equivalents, beginning of period		122,524			764,001			207,273			631,427
Cash and cash equivalents, end of period		$	143,271		$	547,283		$	143,271		$	547,283

2

HUDBAY MINERALS INC.

Condensed Consolidated Interim Income Statements

(Unaudited and in thousands of Canadian dollars, except share and per share amounts)

		Three months ended						Six months ended
		June 30,						June 30,
	Note	2015			2014			2015			2014
Revenue	6a	$	185,779		$	139,329		$	346,431		$	246,108
Cost of sales
Mine operating costs		143,460			101,503			255,812			182,785
Depreciation and amortization	6b	37,145			23,716			69,088			39,143
		180,605			125,219			324,900			221,928
Gross profit		5,174			14,110			21,531			24,180
Selling and administrative expenses		12,791			12,922			24,657			26,987
Exploration and evaluation		2,558			2,254			5,458			4,197
Other operating income and expenses	6d	2,142			1,587			5,851			5,199
Asset impairment	6f	24,627			—			24,627			—
Loss on disposal of subsidiary	6g	—			—			—			6,512
Results from operating activities		(36,944		)	(2,653		)	(39,062		)	(18,715		)
Finance income	6e	(482		)	(912		)	(863		)	(1,692		)
Finance expenses	6e	23,289			2,346			27,670			4,729
Other finance (gain) loss	6e	(2,649		)	(10,930		)	4,304			(4,456		)
Net finance expense (income)		20,158			(9,496		)	31,111			(1,419		)
(Loss) profit before tax		(57,102		)	6,843			(70,173		)	(17,296		)
Tax (recovery) expense	17a	(1,884		)	6,591			8,748			9,671
(Loss) profit for the period		$	(55,218	)	$	252		$	(78,921	)	$	(26,967	)
Attributable to:
Owners of the Company		$	(55,218	)	$	252		$	(78,921	)	$	(26,877	)
Non-controlling interests		—			—			—			(90		)
(Loss) profit for the period		$	(55,218	)	$	252		$	(78,921	)	$	(26,967	)
(Loss) earnings per share
Basic and diluted		$	(0.24	)	$	—		$	(0.34	)	$	(0.14	)
Weighted average number of common shares outstanding (note 19):
Basic		234,588,385			193,015,043			234,109,246			189,542,667
Diluted		234,588,385			193,217,709			234,109,246			189,542,667

3

HUDBAY MINERALS INC.

Condensed Consolidated Interim Statements of Comprehensive Income

(Unaudited and in thousands of Canadian dollars)

	Three months ended						Six months ended
	June 30,						June 30,
	2015			2014			2015			2014
(Loss) profit for the period	$	(55,218	)	$	252		$	(78,921	)	$	(26,967	)
Other comprehensive income (loss):
Recognized directly in equity:
Net exchange (loss) gain on translation of foreign operations	(45,572		)	(54,186		)	167,219			6,718
Change in fair value of available-for-sale financial assets	(2,154		)	1,954			(2,683		)	46,394
	(47,726		)	(52,232		)	164,536			53,112
Items that will not be reclassified subsequently to profit or loss:
Recognized directly in equity:
Remeasurement - actuarial gain (loss)	31,406			(14,532		)	22,909			(40,614		)
Tax effect	(4,673		)	1,902			(4,904		)	6,419
	26,733			(12,630		)	18,005			(34,195		)
Transferred to income statement:
Change in fair value of available-for-sale financial assets	1,958			329			3,608			1,123
Sale of investments	(5		)	(33		)	(32		)	(33		)
Tax effect	—			—			9			—
	1,953			296			3,585			1,090
Other comprehensive (loss) income net of tax, for the period	(19,040		)	(64,566		)	186,126			20,007
Total comprehensive (loss) income for the period	$	(74,258	)	$	(64,314	)	$	107,205		$	(6,960	)
Attributable to:
Owners of the Company	(74,258		)	(64,314		)	107,205			(6,870		)
Non-controlling interests	—			—			—			(90		)
Total comprehensive (loss) income for the period	$	(74,258	)	$	(64,314	)	$	107,205		$	(6,960	)

4

HUDBAY MINERALS INC.

Condensed Consolidated Interim Statements of Changes in Equity

(Unaudited and in thousands of Canadian dollars)

	Attributable to owners of the Company
	Share capital(note 18)			Other capital reserves			Foreign currency translation reserve			Available-for- sale reserve			Remeasurement reserve			Retained earnings			Total			Non- controlling interests			Total equity
Balance, January 1, 2014	$	1,021,088		$	26,015		$	97,924		$	2,468		$	(76,850	)	$	564,966		$	1,635,611		$	(7,904	)	$	1,627,707
Loss	—			—			—			—			—			(26,877		)	(26,877		)	(90		)	(26,967		)
Other comprehensive income (loss)	—			—			6,718			47,484			(34,195		)	—			20,007			—			20,007
Total comprehensive income (loss)	—			—			6,718			47,484			(34,195		)	(26,877		)	(6,870		)	(90		)	(6,960		)
Contributions by and distributions to owners:
Stock options exercised (note 18b)	214			(60		)	—			—			—			—			154			—			154
Equity issuance (note 18b)	172,672			—			—			—			—			—			172,672			—			172,672
Share issue costs, net of tax	(5,646		)	—			—			—			—			—			(5,646		)	—			(5,646		)
Dividends (note 18b)	—			—			—			—			—			(1,928		)	(1,928		)	—			(1,928		)
Total contributions by and distributions to owners	167,240			(60		)	—			—			—			(1,928		)	165,252			—			165,252
Reclassification adjustment:	—			—			—			—			—			—			—			1,073			1,073
Sale of subsidiary	—			—			(451		)	—			—			—			(451		)	6,921			6,470
Balance, June 30, 2014	$	1,188,328		$	25,955		$	104,191		$	49,952		$	(111,045	)	$	536,161		$	1,793,542		$	—		$	1,793,542
Profit (loss)	—			—			—			—			—			98,833			98,833			—			98,833
Other comprehensive income (loss)	—			—			178,528			(46,916		)	(11,928		)	—			119,684			—			119,684
Total comprehensive income (loss)	—			—			178,528			(46,916		)	(11,928		)	98,833			218,517			—			218,517
Contributions by and distributions to owners:
Stock options exercised (note 18b)	1,655			(530		)	—			—			—			—			1,125			—			1,125
Equity issuance (note 18b)	434,626			—			—			—			—			—			434,626			—			434,626
Share issue costs, net of tax	(190		)	—			—			—			—			—			(190		)	—			(190		)
Dividends (note 18b)	—			—			—			—			—			(2,323		)	(2,323		)	—			(2,323		)
Total contributions by and distributions to owners	436,091			(530		)	—			—			—			(2,323		)	433,238			—			433,238
Non-controlling interest upon acquisition of Augusta (note 5)	—			1,423			—			—			—			—			1,423			—			1,423
Balance, December 31, 2014	$	1,624,419		$	26,848		$	282,719		$	3,036		$	(122,973	)	$	632,671		$	2,446,720		$	—		$	2,446,720

5

HUDBAY MINERALS INC.

Condensed Consolidated Interim Statements of Changes in Equity

(Unaudited and in thousands of Canadian dollars)

	Attributable to owners of the Company
	Share capital (note 18)		Other capital reserves			Foreign currency translation reserve		Available-for- sale reserve		Remeasurement reserve			Retained earnings			Total			Non- controlling interests		Total equity
Balance, January 1, 2015	$	1,624,419	$	26,848		$	282,719	$	3,036	$	(122,973	)	$	632,671		$	2,446,720		$	—	$	2,446,720
Loss	—		—			—		—		—			(78,921		)	(78,921		)	—		(78,921		)
Other comprehensive income	—		—			167,219		902		18,005			—			186,126			—		186,126
Total comprehensive income (loss)	—		—			167,219		902		18,005			(78,921		)	107,205			—		107,205
Contributions by and distributions to owners:
Stock options exercised (note 18b)	1,435		(429		)	—		—		—			—			1,006			—		1,006
Equity issuance (note 18b)	16,022		—			—		—		—			—			16,022			—		16,022
Dividends (note 18b)	—		—			—		—		—			(2,336		)	(2,336		)	—		(2,336		)
Total contributions by and distributions owners	17,457		(429		)	—		—		—			(2,336		)	14,692			—		14,692
Balance, June 30, 2015	$	1,641,876	$	26,419		$	449,938	$	3,938	$	(104,968	)	$	551,414		$	2,568,617		$	—	$	2,568,617

6

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

1.Reporting entity

HudBay Minerals Inc. (“HMI” or the “Company”) was amalgamated under the Canada Business Corporations Act on August 15, 2011. The address of the Company’s principal executive office is 25 York Street, Suite 800, Toronto, Ontario. The condensed consolidated interim financial statements of the Company for the three and six months ended June 30, 2015 and 2014 represent the financial position and the financial performance of the Company and its subsidiaries (together referred to as the “Group” or “Hudbay” and individually as “Group entities”).

Significant subsidiaries, as at June 30, 2015, include Hudson Bay Mining and Smelting Co., Limited (“HBMS”), Hudson Bay Exploration and Development Company Limited (“HBED”), HudBay Marketing & Sales Inc. (“HMS”), HudBay Peru Inc., HudBay Peru S.A.C. (“Hudbay Peru”), HudBay (BVI) Inc., HudBay Arizona Corporation (formerly Augusta Resource Corporation, “Augusta” or “Hudbay Arizona”) and Rosemont Copper Company (“Rosemont”).

Hudbay is an integrated mining company producing copper concentrate (containing copper, gold and silver) and zinc metal. With assets in North and South America, the Group is focused on the discovery, production and marketing of base and precious metals. Through its subsidiaries, Hudbay owns four polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba, Saskatchewan and Cusco (Peru) and a copper project in Arizona (United States). The Group 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. Hudbay also has warrants listed under the symbol “HBM.WT” on the Toronto Stock Exchange and “HBM/WS” on the New York Stock Exchange.

Management does not consider the impact of seasonality on operations to be significant on the condensed consolidated interim financial statements.

2.Basis of preparation

(a)  Statement of compliance:

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and do not include all of the information required for full annual financial statements by International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The Board of Directors approved these condensed consolidated interim financial statements on July 29, 2015.

(b)  Functional and presentation currency:

The Group’s condensed consolidated interim financial statements are presented in Canadian dollars, which is the Company’s and all material subsidiaries’ functional currency, except for Hudbay Peru, HudBay (BVI) Inc. and the Hudbay Arizona entities, which have a functional currency of US dollars. All values are rounded to the nearest thousand ($000) except where otherwise indicated.

(c)  Use of judgement:

The preparation of the condensed consolidated interim financial statements in conformity with IFRS requires the Group to make judgements, apart from those involving estimations, in applying accounting policies that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated interim financial statements, as well as reported amounts of revenue and expenses during the reporting period.

7

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

The condensed consolidated interim financial statements reflect the judgements outlined by the Group in its consolidated financial statements for the year ended December 31, 2014.

(d)  Use of estimates:

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

The condensed consolidated interim financial statements reflect the estimates outlined by the Group in its consolidated financial statements for the year ended December 31, 2014.

3.Significant accounting policies

These condensed consolidated interim financial statements reflect the accounting policies applied by the Group in its consolidated financial statements for the year ended December 31, 2014 and comparative periods.

4.New standards not yet adopted

·IFRS 9, Financial Instruments (“IFRS 9 (2009)”) — this standard replaces the guidance in IAS 39 Financial Instruments: Recognition and Measurement, on the classification and measurement of financial assets. IFRS 9 (2009) retains but simplifies the mixed measurement model and establishes two primary measurement categories for financial assets: amortized cost and fair value. The basis of classification depends on an entity’s business model and the contractual cash flow of the financial asset. Gains and losses on remeasurement of financial assets measured at fair value will be recognized in profit or loss, except that for an investment in an equity instrument which is not held-for-trading, IFRS 9 (2009) provides, on initial recognition, an irrevocable election to present all fair value changes from the investment in other comprehensive income (“OCI”). The election is available on an individual share-by-share basis. Amounts presented in OCI will not be reclassified to profit or loss at a later date. The new standard also requires use of a single impairment method, replacing the multiple impairment methods in IAS 39, and amends some of the requirements of IFRS 7 Financial Instruments: Disclosures. IFRS 9 (2010) added guidance to IFRS 9 (2009) on the classification and measurement of financial liabilities, and this guidance is consistent with the guidance in IAS 39, except for changes related to financial liabilities measured at fair value under the fair value option and derivative liabilities that are linked to and must be settled by delivery of an unquoted equity instrument. The IASB has decided to require an entity to apply IFRS 9 for annual periods beginning on or after January 1, 2018. The Group has not yet determined the effect of adoption of IFRS 9 on its consolidated financial statements.

·IFRS 15, Revenue from Contracts with Customers - in May 2014, the IASB issued this standard which is effective for periods beginning on or after January 1, 2017 and is to be applied retrospectively. IFRS 15 clarifies the principles for recognizing revenue from contracts with customers. IFRS 15 will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (i.e. service revenue and contract modifications) and improve guidance for multiple-element arrangements. The Company intends to adopt IFRS 15 in its financial statements for the annual period beginning January 1, 2017, and may consider earlier adoption. The IASB has affirmed its proposal to defer the effective date of this standard to January 1, 2018, although the Accounting Standards Board has yet to approve this change within Canada. The Group has not yet determined the effect of adoption of IFRS 15 on its consolidated financial statements.

8

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

·Amendments to IAS 16, Property, Plant and Equipment (“IAS 16”) and IAS 38, Intangible Assets (“IAS 38”) - on May 12, 2014, the IASB issued amendments to clarify that the use of revenue-based methods to calculate the depreciation of a tangible asset is not appropriate because revenue generated by an activity that includes the use of a tangible asset generally reflects factors other than the consumption of the economic benefits embodied in the asset. The IASB has also clarified that revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits embodied in an intangible asset. This presumption for an intangible asset, however, can be rebutted in certain limited circumstances. The standard is to be applied prospectively for fiscal years beginning on or after January 1, 2016 with early adoption permitted. The Group is currently evaluating the impact of applying the amendments, however does not anticipate that there will be any impact on its current method of calculating depreciation or amortization.

5.Acquisitions

(a)Acquisition of New Britannia Mine and Mill

On May 4, 2015 the Group closed a transaction to acquire a 100% interest in the New Britannia mine and mill, located in Snow Lake, Manitoba, for US$12,300 in cash consideration, plus a contingent payment of US$5,000. In connection with the New Britannia acquisition, the Group entered into a private placement agreement with a Canadian bank to sell 1,357,000 Hudbay common shares for net proceeds of $15,700.

In accordance with IFRS 3, Business Combinations, this transaction does not meet the definition of a business combination as the assets acquired are not an integrated set of activities with inputs, processes and outputs.

The purchase price of $17,507 was allocated to the assets acquired and the liabilities assumed based on the fair value of the total consideration at the closing date of the acquisition. All financial assets acquired and financial liabilities assumed were recorded at their relative fair values. In addition, an option liability was recorded for the fair value amount of $1,409 in connection with the contingent consideration since it is an integral component of the consideration paid and represents a financial instrument. The fair values were allocated to the net assets on a relative fair value basis and the option liability was valued using the Black-Scholes model.

9

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

Assets acquired and liabilities assumed

The following summarizes the acquisition date allocation of the relative fair values of the major classes of assets and liabilities acquired:

Restricted cash	$	1,867
Machinery & equipment	12,600
Mineral property	3,500
Net decommissioning liability	(460		)
Total net assets acquired	$	17,507

The following summarizes consideration for the purchase:

Cash	$	14,892
Contingent payment - gold price option	1,409
Transaction costs	1,206
Total consideration	$	17,507

(b)Acquisition of Augusta Resource Corporation

On July 16, 2014, the Group obtained control of Hudbay Arizona (formerly named Augusta Resource Corporation), a Canadian company whose primary asset is the Rosemont copper project near Tucson, Arizona.

Hudbay obtained control of Augusta by acquiring Augusta common shares to increase the Group’s equity interest in Augusta from approximately 16% to 92%. On July 29, 2014 and September 23, 2014, Hudbay acquired the remaining outstanding common shares and now wholly owns Augusta. Acquiring control of Augusta allows the Group an opportunity to develop the Rosemont project and significantly increase Hudbay’s future copper production.

Consideration transferred:

The following summarizes the acquisition date fair value of the major classes of consideration transferred:

Equity instruments (36,613,464 common shares)	$	393,947
Warrant instruments (19,759,641 warrants)	42,087
Fair value of shares previously owned by the Group (23,058,585 common shares)	84,391
Consideration transferred - July 16, 2014	$	520,425

The fair value of the common shares issued was based on Hudbay’s listed share price of $10.76 at the July 16, 2014 acquisition date. The fair value of the warrants issued was based on a Black-Scholes option pricing calculation of $2.13. The fair value of the shares previously owned by the Group was based on Augusta’s listed share price of $3.66 at the July 16, 2014 acquisition date.

The Group took up the remaining 3,837,190 shares at a fair value of $40,679 based on Hudbay’s listed share prices of $11.62 and $9.68 on July 29, 2014 and September 23, 2014, respectively. The Group issued 2,070,849 warrant instruments with a fair value of $3,398 based on Hudbay’s listed warrant prices of $2.25 and $1.09 on July 29, 2014 and September 23, 2014, respectively.

10

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

Immediately prior to the acquisition, Augusta settled its outstanding in the money stock options, restricted units and convertible notes through the issuance of Augusta shares and settled its out of the money options in cash under the terms of the acquisition.

Identifiable assets acquired and liabilities assumed:

The Group has completed the purchase price allocation, resulting in recognized amounts of identifiable assets acquired and liabilities assumed as follows:

Cash and cash equivalents	$	3,261
Receivables and other current assets	1,486
Long-term receivable and other assets	9,896
Mineral properties	680,636
Other property, plant and equipment	83,626
Trade and other payables	(35,949		)
Warrant liability	(6,278		)
Current portion of long-term debt	(125,918		)
Deferred tax liabilities	(167,898		)
Total net identifiable assets acquired	$	442,862

The fair values of the mineral properties have been calculated using significant judgements. In particular, the fair values of mineral properties, and other property and plant and equipment have been determined based on an independent valuation.

The fair value of the acquired receivables was valued at $10,011. Based on the valuation performed at the acquisition date, management expected all contractual cash flows to be collectible. The long-term receivable relates to the amounts collectible from the joint venture partner.

The Group recognized goodwill as a result of the acquisition as follows:

Total consideration transferred	$	436,034
Fair value of previous interest in acquiree	84,391
Non-controlling interest of measured based on proportionate share	45,500
Less: value of net identifiable asset acquired	(442,862		)
Goodwill upon acquisition on July 16, 2014	$	123,063

The goodwill balance arose from the requirement to record deferred income tax liabilities measured at the tax effect of the difference between the fair values of the assets acquired and liabilities assumed and their tax bases. None of the goodwill recognized is expected to be deductible for income tax purposes. As a result of foreign exchange translation, the goodwill balance increased to $142,800 as at June 30, 2015 as a result of movements in foreign currency on translation.

11

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

6.Revenue and expenses

(a)Revenue

The Group’s revenue by significant product types:

	Three months ended						Six months ended
	June 30,						June 30,
	2015			2014			2015			2014
Copper	$	183,278		$	59,866		$	264,053		$	106,617
Zinc	74,228			59,944			140,997			112,133
Gold	23,377			25,928			42,495			40,043
Silver	8,656			4,244			11,111			6,587
Other	766			1,262			2,455			2,246
	290,305			151,244			461,111			267,626
Treatment and refining charges	(24,050		)	(8,781		)	(34,204		)	(13,836		)
Pre-production revenue	(80,476		)	(3,134		)	(80,476		)	(7,682		)
	$	185,779		$	139,329		$	346,431		$	246,108

Pre-production revenue in the three and six months ended June 30, 2015 related to Constancia. Pre-production revenue in 2014 related to revenue earned from production at the Group’s Reed mine. Revenues related to inventory produced prior to commencement of commercial production are credited against capital costs rather than recognized as revenue in the income statements.

Included in revenue for the three months ended June 30, 2015 are losses related to non-hedge derivative contracts of $673 (three months ended June 30, 2014 - loss of $6,506). Included in revenue for the six months ended June 30, 2015 are losses related to non-hedge derivative contracts of $2,514 (six months ended June 30, 2014 - gains of $2,080).

(b)Depreciation and amortization

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

	Three months ended				Six months ended
	June 30,				June 30,
	2015		2014		2015		2014
Cost of sales	$	37,145	$	23,716	$	69,088	$	39,143
Selling and administrative expenses	200		193		396		378
	$	37,345	$	23,909	$	69,484	$	39,521

12

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

(c)Share-based payment and expense

Share-based payment expenses are reflected in the income statements as follows:

	Cash-settled					Total share-based
	RSUs			DSUs		payment expense
Three months ended June 30, 2015
Cost of sales	$	303		$	—	$	303
Selling and administrative expenses	1,582			435		2,017
Other operating expenses	291			—		291
	$	2,176		$	435	$	2,611
Six months ended June 30, 2015
Cost of sales	$	611		$	—	$	611
Selling and administrative expenses	3,176			929		4,105
Other operating expenses	76			—		76
	$	3,863		$	929	$	4,792
Three months ended June 30, 2014
Cost of sales	$	400		$	—	$	400
Selling and administrative expenses	1,024			924		1,948
Other operating expenses	165			—		165
Exploration and evaluation	(37		)	—		(37		)
	$	1,552		$	924	$	2,476
Six months ended June 30, 2014
Cost of sales	$	642		$	—	$	642
Selling and administrative expenses	1,769			1,148		2,917
Other operating expenses	272			—		272
Exploration and evaluation	(31		)	—		(31		)
	$	2,652		$	1,148	$	3,800

13

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

(d)Other operating income and expenses

	Three months ended						Six months ended
	June 30,						June 30,
	2015			2014			2015			2014
Joint venture operator fee income	$	(107	)	$	(1,152	)	$	(223	)	$	(1,152	)
Cost of non-producing properties	2,863			3,132			7,024			6,652
Other income and expense	(614		)	(393		)	(950		)	(301		)
	$	2,142		$	1,587		$	5,851		$	5,199

(e)Finance income and expenses

	Three months ended						Six months ended
	June 30,						June 30,
	2015			2014			2015			2014
Finance income
Net interest income	$	(259	)	$	(847	)	$	(417	)	$	(1,627	)
Other finance income	(223		)	(65		)	(446		)	(65		)
	(482		)	(912		)	(863		)	(1,692		)
Finance expense
Interest expense on long-term debt	29,790			20,604			58,752			41,040
Unwinding of accretion on financial liabilities at amortized cost	282			344			720			782
Unwinding of discounts on provisions	841			919			1,756			1,879
Financing fees	3,362			1,130			6,851			2,521
Other finance expense	2,479			297			2,456			329
	36,754			23,294			70,535			46,551
Interest capitalized	(13,465		)	(20,948		)	(42,865		)	(41,822		)
	23,289			2,346			27,670			4,729
Other finance (gains) losses
Net foreign exchange (gains) losses	(3,436		)	(9,094		)	6,585			(517		)
Change in fair value of financial assets and liabilities at fair value through profit loss:
Hudbay and Augusta warrants	(102		)	—			3,284			—
Prepayment option embedded derivative	(1,085		)	(2,141		)	(9,136		)	(5,038		)
Investments classified as held-for-trading	21			9			(5		)	9
Net gain reclassified from equity on disposal of available- for-sale investments	(5		)	(33		)	(32		)	(33		)
Net loss reclassified from equity on impairment of available-for-sale investments	1,958			329			3,608			1,123
	(2,649		)	(10,930		)	4,304			(4,456		)
Net finance expense (income)	$	20,158		$	(9,496	)	$	31,111		$	(1,419	)

Interest expense related to long-term debt has been capitalized to the Constancia project until May 1, 2015 and to the Rosemont project (note 14).

14

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

During the three and six months ended June 30, 2015, the Group recognized impairment losses on investments in listed shares and transferred pre-tax losses of $1,958 and $3,608 respectively, from the available-for-sale reserve within equity to the income statements (three and six months ended June 30, 2014 - $329 and $1,123, respectively).

(f)Impairment

As a result of the acquisition of the New Britannia Mill (note 5a), Hudbay no longer expects to construct a new concentrator at Lalor. During the three months ended June 30, 2015, the Group recognized an impairment loss of $24,627 related to its Lalor concentrator assets in Snow Lake, Manitoba. The impairment was determined based on the difference between carrying value and fair value less costs of disposal. On the condensed consolidated interim income statements, the impairment loss is presented in the asset impairment loss line item. The Group presented the impairment loss within the Manitoba segment in note 23.

(g)Loss on disposal of subsidiary

During the six months ended June 30, 2014, the Group recognized a loss of $6,512 on the disposition of its Back Forty project in Michigan. This mainly resulted from the derecognition of the non-controlling interest and cumulative translation adjustments recorded in the entity. The Group has presented the loss within corporate and other activities in note 23.

7.Trade and other receivables

	Jun. 30, 2015			Dec. 31, 2014
Current
Trade receivables	$	69,834		$	43,087
Embedded derivatives - copper provisional pricing (note 20c)	(9,215		)	(1,807		)
Statutory receivables	170,525			144,836
Receivable from joint venture partners	12,367			12,607
Other receivables	27,413			12,520
	270,924			211,243
Non-current
Statutory receivables - Peruvian sales tax	—			553
Receivable from joint venture partners	24,313			23,487
Other receivables	2,669			784
	26,982			24,824
	$	297,906		$	236,067

As commercial production commenced at the Reed mine on April 1, 2014, the Group has a receivable for 30% of the applicable development costs as well as other amounts due from the joint venture partner, VMS Ventures Inc. (“VMS Ventures”) pursuant to the Reed Lake Project Joint Venture Agreement. The receivable will be repaid by offsetting amounts owed to VMS Ventures for the purchase of their proportionate share of the Reed mine ore. The receivable has been discounted and has been classified based on the expected timing of ore purchases. As at June 30, 2015, this receivable from VMS Ventures was $17,681 (December 31, 2014 - $20,206).

15

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

The remaining balance in the receivable from joint venture partners primarily relates to the Group’s joint venture partner for the Rosemont project in Arizona. On September 16, 2010, Rosemont and United Copper & Moly LLC (“UCM” or “Partner”), a company formed by Korea Resources Corporation and LG International Corp. to hold their interest in the Rosemont joint venture, executed an Earn-In Agreement (the “EI Agreement”) whereby UCM can acquire up to a 20% interest in the Rosemont joint venture by funding US$176,000 of Rosemont expenditures. Under the terms of the EI Agreement, UCM will contribute cash into the Rosemont project as follows: Tranche 1 - a maximum US$70,000 for permitting, engineering, deposits on long-lead equipment purchases and on-going support activities (collectively “Pre-Construction Costs”); and once the material permits are issued and construction has commenced; Tranche 2 - US$106,000 for construction costs can be released. Once UCM has earned its 20% interest in the Rosemont joint venture, Rosemont expenditures will be shared pro-rata 80/20. In the third quarter of 2011, UCM completed its Tranche 1 cash investment of US$70,000 and earned a 7.95% interest in the Rosemont joint venture.  Hudbay is currently funding UCM’s share of the pre-construction costs at Rosemont until such time as the final material permits have been obtained. The receivable has been classified as non-current.

As at June 30, 2015, $167,972 (December 31, 2014 - $142,548) of the current statutory receivables relate to refundable sales taxes in Peru that Hudbay Peru has paid on capital expenditures for its Constancia project. Management expects to receive the amount within one year. Significant judgements are required on measurement and classification of Peruvian sales taxes paid on capital expenditures (note 2c).

8.Inventories

	Jun. 30, 2015		Dec. 31, 2014
Current
Stockpile	$	2,486	$	—
Work in progress	7,531		2,494
Finished goods	137,002		62,218
Materials and supplies	30,392		22,997
	177,411		87,709
Non-current
Materials and supplies	8,567		7,857
	$	185,978	$	95,566

The cost of inventories recognized as an expense, including depreciation, and included in cost of sales amounted to $130,187 and $258,193 for the three and six months ended June 30, 2015 (three and six months ended June 30, 2014 - $117,791 and $203,848, respectively). The Group has amended its note disclosure of the cost of inventories recognized as an expense for the current and comparable period to include depreciation expensed from inventories.

During the six months ended June 30, 2014, the Group recognized an expense of $5,685 in cost of sales related to write-downs of the carrying value of zinc inventories to net realizable value. For zinc inventories sold during the six months ended June 30, 2014, the related amount transferred from inventory to cost of sales was $10,696 less than it would have been had write-downs not been previously recognized (three months ended June 30, 2014 - $5,685). As a result, for the six months ended June 30, 2014, the net impact on cost of sales, related to zinc inventory write-downs, was a decrease of $5,011 (three months ended June 30, 2014 — decrease of $5,685). There were no write-downs in the three and six months ended June 30, 2015.

16

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

9.      Prepaid expenses

	Jun. 30, 2015		Dec. 31, 2014
Current
Prepayments to suppliers related to capital projects	$	7,639	$	8,672
Prepaid insurance and other	8,593		6,633
	16,232		15,305
Non-current
Other	—		246
	$	16,232	$	15,551

10.    Other financial assets

	Jun. 30, 2015		Dec. 31, 2014
Current
Derivative assets	$	—	$	1,345
Non-current
Available-for-sale investments	16,225		18,694
Investments at fair value through profit or loss	90		—
Deferred financing fees	—		5,110
Restricted cash	81,241		49,093
	97,556		72,897
	$	97,556	$	74,242

Available-for-sale investments

As at June 30, 2015, available-for-sale investments consist of investments in Canadian-listed metals and mining companies, most of which are publicly traded. During the three and six months ended June 30, 2015 the Group recognized impairment losses of $1,958 and $3,608, respectively, related to its investments in the available-for-sale reserve within equity (three and six months ended June 30, 2014 - $329 and $1,123, respectively) (note 6e).

Restricted cash

As required by Peruvian law, Hudbay Peru provides security with respect to its decommissioning and restoration obligations. Hudbay Peru has provided a letter of credit in the amount of $79,166 as at June 30, 2015, and classified cash on deposit with a Peruvian bank to support the letter of credit as restricted cash (December 31, 2014 - $47,163).

17

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

11.    Property, plant and equipment

Jun. 30, 2015	Cost		Accumulated depreciation and amortization			Carrying amount
Exploration and evaluation assets	$	21,610	$	—		$	21,610
Capital works in progress	1,015,908		—			1,015,908
Mining properties	2,138,386		(455,420		)	1,682,966
Plant and equipment	2,895,691		(472,318		)	2,423,373
	$	6,071,595	$	(927,738	)	$	5,143,857

Dec. 31, 2014	Cost		Accumulated depreciation and amortization			Carrying amount
Exploration and evaluation assets	$	18,079	$	—		$	18,079
Capital works in progress	3,774,083		—			3,774,083
Mining properties	790,655		(411,245		)	379,410
Plant and equipment	956,163		(411,924		)	544,239
	$	5,538,980	$	(823,169	)	$	4,715,811

The Group has included the mineral properties and fixed assets acquired in the New Britannia asset purchase in the capital works in progress line (note 5a).

As a result of Constancia reaching commercial production in the second quarter of 2015 most of its capital works in progress has been reclassified to mining properties and plant and equipment. The increase in the cost of property, plant and equipment since December 31, 2014 was mostly the result of the effect of foreign exchange on opening balance of $290,907 and additions of $284,773, partially offset by the impairment of Lalor concentrator assets of $24,627 (note 6f).

12.    Other liabilities

	Jun. 30, 2015		Dec. 31, 2014
Current portion of
Provisions (note 16)	$	16,712	$	18,241
Pension liability	25,567		24,093
Other employee benefits	4,027		3,829
Unearned revenue	—		1,085
	$	46,306	$	47,248

18

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

13.    Other financial liabilities

	Jun. 30, 2015		Dec. 31, 2014
Current
Derivative liabilities	$	1,862	$	860
Other financial liabilities at amortized cost	5,926		6,141
	7,788		7,001
Non-current
Derivative liabilities	166		—
Contingent consideration - gold price option	1,409		—
Warrants at fair value through profit and loss	29,851		26,300
Other financial liabilities at amortized cost	25,732		25,243
	57,158		51,543
	$	64,946	$	58,544

Other financial liabilities at amortized cost relate to agreements with communities near the Constancia project which allow Hudbay to extract minerals over the useful life of the Constancia project, carry out exploration and evaluation activities in the area and provide Hudbay with community support to operate in the region. During the six months ended June 30, 2015, the liability associated with several of the community agreements increased by $80 and payments of $826 were made. During the year ended December 31, 2014, the liability associated with several of the community agreements increased by $4,699 and payments of $10,466 were made. Changes in estimates related to these liabilities are recorded to the liability with a corresponding change in property, plant and equipment or exploration expense.

The derivative liabilities include derivative and hedging transactions as well as warrants issued as consideration for the acquisition of Augusta (note 5b) and warrants assumed on the acquisition of Augusta. Derivative liabilities are carried at their fair value with changes in fair value recorded to the condensed consolidated income statements in other finance (gain) loss. The fair value of derivative and hedging transactions are determined based on internal valuation models and the fair value of warrants issued are determined based on the quoted market prices for the listed warrants. During the six months ended June 30, 2015, the Group recognized a loss of $3,056 related to the increase in the fair value of the warrants liability for those issued in the acquisition of Augusta (note 6e). The fair value of these warrants at June 30, 2015 is $25,759. A total of 21,830,490 warrants were issued which entitle the holder to acquire a common share of the Company at a price of $15.00 per share on, but not prior to, July 20, 2018. The Company, may, at its option, upon written notice to the warrant holders, settle the exercise of warrants for the in-the-money value, in cash, shares or a combination thereof.

In addition, during the six months ended June 30, 2015, the Group recognized a loss of US$179 related to the increase in the fair value of the liability for the transferable share purchase warrants of Augusta (the “Augusta Warrants”) which were assumed in connection with the acquisition of Augusta. Following the acquisition, each Augusta Warrant represents the right to acquire 0.315 of a Hudbay common share and 0.17 of a Hudbay warrant. The fair value of the Augusta Warrants at June 30, 2015 is US$3,280. There were 1,374,951 Augusta Warrants outstanding with an exercise price of US$3.85, which expired July 22, 2015 and there are 3,300,000 Augusta Warrants outstanding with an exercise price of US$2.12, expiring December 12, 2016.

The purchase price of the acquisition of New Britannia (note 5a) contained an option (European) that pays the seller US$5,000 if the price of gold is equal to or above US$1,400/oz on May 4, 2018. The option represents a financial liability and was recorded at fair value at the acquisition date of New Britannia and will be remeasured at each reporting date with change in the fair value being recognized as unrealized gains or losses in finance income and expense. The fair value of the embedded derivative at June 30, 2015 was a liability of $1,409 (December 31, 2014 - $nil).

19

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

14.    Long-term debt

Long-term debt is comprised of the following:

	Jun. 30, 2015			Dec. 31, 2014
Senior unsecured notes (a)	$	1,133,786		$	1,062,472
Equipment finance facility (b)	90,443			82,624
Constancia standby credit facility (c)	178,540			—
Senior secured revolving credit facility (d)	137,539			—
	1,540,308			1,145,096
Less: current portion	(73,112		)	(17,139		)
	$	1,467,196		$	1,127,957

(a)Senior unsecured notes

Balance, January 1, 2014	$	779,331
Addition to Principal, net of transaction costs and bond premium	197,824
Change in fair value of embedded derivative (prepayment option)	2,145
Effects of changes in foreign exchange	81,978
Accretion of transaction costs	1,194
Balance, December 31, 2014	$	1,062,472
Change in fair value of embedded derivative (prepayment option)	(9,136		)
Effects of changes in foreign exchange	80,164
Accretion of transaction costs	286
Balance, June 30, 2015	$	1,133,786

On August 6, 2014, the Group issued US$170,000 aggregate principal amount of its 9.50% senior unsecured notes due October 1, 2020 (the “Additional Notes”). The Additional Notes are incremental to the US$750,000 aggregate principal amount of 9.50% senior unsecured notes issued between September 2012 and December 2013 (the “Initial Notes”, and together with the Additional Notes, the “Notes”). The Additional Notes were priced at 107% of the aggregate principal amount, resulting in gross proceeds of US$181,900 ($197,844) and will yield 8.03% to maturity. The Notes have been classified as long-term debt and accounted for initially at fair value and subsequently at amortized cost using the effective interest rate method. Interest is payable on the Notes semi-annually on April 1 and October 1 of each year, beginning on April 1, 2013. As the proceeds have been used to date to fund the development of Constancia and Rosemont, interest costs on the Initial Notes have been capitalized to Constancia project assets until May 1, 2015 (the date on which Constancia commenced commercial production), and interest costs on the Additional Notes have been capitalized to Rosemont project assets. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by substantially all of the Company’s existing and future subsidiaries other than the Company’s subsidiaries associated with the Constancia project and the Rosemont project.

20

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

(b)Equipment finance facility

Balance, January 1, 2014	$	—
Addition to Principal, net of transaction costs	90,671
Payments made	(13,654		)
Effects of changes in foreign exchange	4,679
Accretion of transaction costs	928
Balance, December 31, 2014	$	82,624
Addition to Principal, net of transaction costs	10,164
Payments made	(9,228		)
Effects of changes in foreign exchange	6,256
Accretion of transaction costs	627
Balance, June 30, 2015	$	90,443

The equipment finance facility is reflected in the condensed consolidated interim balance sheets as follows:

	Jun. 30, 2015		Dec. 31, 2014
Current	$	19,972	$	17,139
Non-current	70,471		65,485
	$	90,443	$	82,624

In October 2013, the Group entered into an equipment financing facility with Caterpillar Financial Services Corporation to finance the purchase of components of the mobile fleet at the Group’s Constancia project. Loans pursuant to the equipment financing facility have a term of six years, amortized on a quarterly basis and are secured by the Constancia mobile fleet. The loan has been classified as long-term debt and accounted for initially at fair value and subsequently at amortized cost using the effective interest rate method. All payments due within twelve months of the period end date are classified as a current liability. The payments are based on a floating annual interest rate of 3-months LIBOR plus 4.25%.

(c)Constancia standby credit facility

Balance, December 31, 2014	$	—
Addition to Principal, net of transaction costs	176,692
Effects of changes in foreign exchange	1,370
Accretion of transaction costs	478
Balance, June 30, 2015	$	178,540

The Constancia standby credit facility is reflected in the condensed consolidated interim balance sheets as follows:

Current	$	53,140
Non-current	125,400
Balance, June 30, 2015	$	178,540

21

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

In June 2014, the Group entered into a US$150,000 standby credit facility to provide financing for expenditures at the Constancia project. Drawdowns under the facility are repayable in quarterly installments beginning December 31, 2015 and ending September 30, 2018, and will bear interest at LIBOR plus 3.50%. The facility is secured by the assets of the Peru segment. Drawdowns of US$147,000 occurred during six months ended June 30, 2015.

(d)Senior secured revolving credit facility

Balance, December 31, 2014	$	—
Addition to Principal, net of transaction costs	134,843
Effects of changes in foreign exchange	2,509
Accretion of transaction costs	187
Balance, June 30, 2015	$	137,539

On March 13, 2015, the Group completed an expansion of its corporate revolving credit facility from US$100,000 to US$300,000.

The US$300,000 million revolving credit facility is on substantially similar terms to the US$100,000 credit facility that it replaced. It was intended to provide the Group with additional liquidity as the Constancia project ramped up to commercial production and to support the growth of various business units. The credit facility is repayable in March 2018.

As at June 30, 2015, the Manitoba segment had letters of credit advanced under the facility in the amount of $69,873 (December 31, 2014 - $64,084) which are treated as drawings under the facility.

15.  Deferred revenue

On August 8, 2012, the Group entered into a precious metals stream transaction with Silver Wheaton whereby the Group has received aggregate deposit payments of US$750,000 against delivery of 100% of payable gold and silver from the 777 mine until the later of the end of 2016 and satisfaction of a completion test at the Constancia project, and delivery of 50% of payable gold and 100% of payable silver for the remainder of the 777 mine life. The stream transaction also includes delivery of 100% of payable silver from the Constancia project. On November 4, 2013, the Group entered into an amended and restated precious metals stream agreement with Silver Wheaton pursuant to which the Group agreed to receive an additional US$135,000 deposit against delivery of 50% of payable gold from the Constancia project, with the deposit payable in cash or Silver Wheaton shares, at Silver Wheaton’s election.  In addition to the deposit payments, as gold and silver is delivered to Silver Wheaton, the Group receives cash payments equal to the lesser of (i) the market price and (ii) US$400 per ounce (for gold) and US$5.90 per ounce (for silver), subject to 1% annual escalation after three years.

The Group received a cash deposit payment of US$125,000 ($139,287) in March 2014 as a result of US$1,000,000 in capital expenditures having been paid at the Constancia project. In addition, the Group received Silver Wheaton shares in satisfaction of the gold deposit during September 2014 and sold the shares for net proceeds of US$134,978 ($149,931). The Group has now received all the up-front deposit payments related to the precious metal stream transaction with Silver Wheaton in respect of 777 and Constancia.

The Group recorded the deposits received as deferred revenue and recognizes amounts in revenue as gold and silver are delivered to Silver Wheaton. The Group determines the amortization of deferred revenue to the consolidated income statements on a per unit basis using the estimated total number of gold and silver ounces expected to be delivered to Silver Wheaton over the life of the 777 and Constancia mines. The Group estimates the current portion of deferred revenue based on deliveries anticipated over the next twelve months. At this time, the Group has assessed that it is unlikely that there will be uncredited legal deposits after mine closure.

22

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

In February 2010, Hudbay Arizona entered into a precious metals stream transaction with Silver Wheaton whereby the Group will receive deposit payments of US$230,000 against delivery of 100% of the payable silver and gold from the Rosemont project. The deposit will be payable upon the satisfaction of certain conditions precedent, including the receipt of permits for the Rosemont project and the commencement of construction. In addition to the deposit payments, as gold and silver is delivered to Silver Wheaton, the Group receives cash payments equal to the lesser of (i) the market price and (ii) US$450 per ounce (for gold) and US$3.90 per ounce (for silver), subject to 1% annual escalation after three years. To date, no such deposit has been received under the terms of this contract.

The following table summarizes changes in deferred revenue:

Balance, January 1, 2014	$	529,751
Additional installment received	289,218
Recognition of revenue	(49,478		)
Effects of changes in foreign exchange	28,803
Balance, December 31, 2014	$	798,294
Recognition of revenue	(28,253		)
Effects of changes in foreign exchange	37,457
Balance, June 30, 2015	$	807,498

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

	Jun. 30, 2015		Dec. 31, 2014
Current	$	90,336	$	81,279
Non-current	717,162		717,015
	$	807,498	$	798,294

23

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

16.Provisions

Reflected in the condensed consolidated interim balance sheets as follows:

Jun. 30, 2015	Decommissioning, restoration and similar liabilities		Deferred share units		Restricted share units		Total
Current (note 12)	$	4,618	$	6,828	$	5,266	$	16,712
Non-current	195,501		—		3,829		199,330
	$	200,119	$	6,828	$	9,095	$	216,042

Dec. 31, 2014	Decommissioning, restoration and similar liabilities		Deferred share units		Restricted share units		Total
Current (note 12)	$	7,122	$	5,898	$	5,221	$	18,241
Non-current	178,273		—		5,427		183,700
	$	185,395	$	5,898	$	10,648	$	201,941

The increase in the total provision for decommissioning, restoration and similar liabilities is mainly the result of increased mine disturbance in Peru and the acquisition of New Britannia since December 31, 2014.

24

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

17.Income and mining taxes

(a)Tax expense:

The tax (recovery) expense is applicable as follows:

	Three months ended						Six months ended
	June 30,						June 30,
	2015			2014			2015			2014
Current:
Taxable income	$	2,819		$	1,150		$	4,513		$	2,219
Taxable mining profits	5,493			(1,721		)	5,515			(2,956		)
Adjustments in respect of prior years	667			(919		)	667			(919		)
	8,979			(1,490		)	10,695			(1,656		)
Deferred:
Income taxes - origination and reversal of temporary difference	(16,439		)	4,415			(7,382		)	8,069
Mining taxes - origination and reversal of temporary difference	3,830			(205		)	3,777			322
Peruvian mining tax - origination and reversal of temporary difference	467			2,296			(384		)	2,892
Adjustments in respect of prior years	1,279			1,575			2,042			44
	(10,863		)	8,081			(1,947		)	11,327
	$	(1,884	)	$	6,591		$	8,748		$	9,671

(b)Deferred tax assets and liabilities:

	Jun. 30, 2015			Dec. 31, 2014
Deferred income tax asset	$	53,965		$	48,339
Deferred income tax liability	(448,353		)	(415,479		)
Deferred mining tax liability - Canada	(4,425		)	(640		)
Deferred mining tax liability - Peru	(27,403		)	(25,830		)
	(480,181		)	(441,949		)
Net deferred tax liability balance	$	(426,216	)	$	(393,610	)

25

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

(c)Changes in deferred tax assets and liabilities:

	Six months ended			Year ended
	Jun. 30, 2015			Dec. 31, 2014
Net deferred tax liability balance, beginning of period	$	(393,610	)	$	(261,846	)
Deferred tax recovery	1,947			61,362
OCI transactions	(4,895		)	7,585
Acquisition of Augusta	—			(167,898		)
Items charged directly to equity	—			2,018
Foreign currency translation on the deferred tax liability	(29,658		)	(34,831		)
Net deferred tax liability balance, end of period	$	(426,216	)	$	(393,610	)

(d)Taxes receivable/payable:

The timing of payments results in significant variances in period-to-period comparisons of the tax receivable and tax payable balances.

(e)Other disclosure:

The tax rules and regulations applicable to mining companies are highly complex and subject to interpretation. The Group may be subject in the future to a review of its historic income and other tax filings and, in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules and regulations in respect of the Group’s business. These reviews may alter the timing or amount of taxable income or deductions. The amount ultimately reassessed upon resolution of issues raised may differ from the amount accrued.

18.Share capital

(a)Preference shares:

Authorized: Unlimited preference shares without par value

(b)Common shares:

Authorized: Unlimited common shares without par value

26

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

Issued and fully paid:

	Six months ended			Year ended
	Jun. 30, 2015			Dec. 31, 2014
	Common shares	Amount		Common shares		Amount
Balance, beginning of period	233,615,857	$	1,624,419	172,078,376		$	1,021,088
Exercise of stock options	258,831	1,435		181,035		1,869
Share issue costs, net of tax	—	—		—		(5,836		)
Share issuance	1,357,000	16,022		20,930,000		172,672
Shares cancelled	—	—		(24,208	)	—
Issued - acquisition of Augusta (note 5b)	—	—		40,450,654		434,626
Balance, end of period	235,231,688	$	1,641,876	233,615,857		$	1,624,419

On January 9, 2014, the Group entered into an agreement with a syndicate of underwriters who agreed to purchase, on a bought deal basis, 18,200,000 of the Group’s common shares at a price of $8.25 per share. The underwriters were granted an overallotment option, which they exercised in full, for an additional 2,730,000 common shares. The transaction closed on January 30, 2014, and aggregate gross proceeds from the offering were $172,672.

In connection with the New Britannia acquisition (note 5a), the Company entered into a private placement agreement with a Canadian bank to sell approximately 1,357,000 Hudbay common shares for net proceeds of $15,700.

During the six months ended June 30, 2015, the Company paid $2,336 in dividends on March 31, 2015 to shareholders of record as of March 13, 2015. The Company paid $1,928 in dividends on March 31, 2014 to shareholders of record as of March 14, 2014.

27

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

19.(Loss) earnings per share data

	Three months ended		Six months ended
	June 30,		June 30,
	2015	2014	2015	2014
Weighted average common shares outstanding
Basic	234,588,385	193,015,043	234,109,246	189,542,667
Plus net incremental shares from
Assumed conversion: warrants	1,039,500	—	1,039,500	—
Assumed conversion: stock options	104,571	202,666	129,735	194,378
Diluted weighted average common shares outstanding	235,732,456	193,217,709	235,278,481	189,737,045

The determination of the diluted weighted-average number of common shares excludes 1,097,077 and  1,321,959 shares, related to stock options that were anti-dilutive for the three and six months ended June 30, 2015 (three and six months ended June 30, 2014 - 1,846,952 and 1,854,388 shares, respectively). The calculation of diluted weighted-average number of common shares also excludes 1,374,951 out of the money Augusta Warrants which represented the right to acquire 0.315 of a Hudbay common share and 0.17 of a Hudbay warrant and are now expired (note 13). The calculation also excludes all 21,830,490 Hudbay warrants issued as consideration for the acquisition of Augusta (note 5b) as they are out of the money.

For periods where Hudbay records a loss, the Group calculates diluted loss per share using the basic weighted average number of shares. If the diluted weighted average number of share was used, the result would be a reduction in the loss, which would be anti-dilutive. Consequently, for the six months ended June 30, 2015 and 2014, the Group calculated diluted loss per share using 234,109,246 and 189,542,667 common shares, respectively. For the three months ended June 30, 2015, the Group calculated diluted loss per share using 234,588,385 common shares.

28

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

20.Financial instruments

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

The following presents the fair value and carrying value of the Group’s financial instruments and non-financial derivatives:

	Jun. 30, 2015						Dec. 31, 2014
	Fair Value			Carrying value			Fair Value			Carrying value
Recurring measurements
Loans and receivables
Cash and cash equivalents 1	$	143,271		$	143,271		$	207,273		$	207,273
Restricted cash1	81,241			81,241			49,093			49,093
Trade and other receivables1, 2	136,596			136,596			92,485			92,485
Fair value through profit or loss
Trade and other receivables - embedded derivatives3	(9,215		)	(9,215		)	(1,807		)	(1,807		)
Non-hedge derivative assets3	—			—			1,345			1,345
Prepayment option - embedded derivative7	10,312			10,312			1,217			1,217
Investments at FVTPL4	90			90			—			—
Available-for-sale investments4	16,225			16,225			18,694			18,694
Total financial assets	378,520			378,520			368,300			368,300
Financial liabilities at amortized cost
Trade and other payables1, 2	256,472			256,472			273,145			273,145
Other financial liabilities5	22,139			31,658			19,950			31,384
Senior unsecured notes6	1,225,072			1,144,098			1,009,658			1,063,689
Equipment finance facility8	90,443			90,443			82,624			82,624
Constancia standby credit facility8	178,540			178,540			—			—
Senior secured revolving credit facility8	137,539			137,539			—			—
Fair value through profit or loss
Trade and other payables - embedded derivatives3	(506		)	(506		)	(150		)	(150		)
Warrant liabilities3	2,028			2,028			860			860
Option liabilities3	1,409			1,409			—			—
Non-hedge derivative liabilities3	29,851			29,851			26,300			26,300
Total financial liabilities	1,942,987			1,871,532			1,412,387			1,477,852
Net financial liability	$	(1,564,467	)	$	(1,493,012	)	$	(1,044,087	)	$	(1,109,552	)

1Cash 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.

2Excludes embedded provisional pricing derivatives, as well as tax and other statutory amounts.

3Derivatives and embedded provisional pricing 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. For the warrant and option liabilities, fair value is determined based on quoted market closing price or the Black-Scholes model.

4Available-for-sale investments are carried at their fair value, which is determined using quoted market bid prices in active markets for listed shares and determined using valuation models for shares of private companies. Investments at FVTPL consist of warrants to purchase listed shares, which are carried at fair value as determined using a Black-Scholes model.

5These financial liabilities relate to agreements with communities near the Constancia project in Peru (note 13). Fair values have been determined using a discounted cash flow analysis based on expected cash flows and a credit adjusted discount rate.

6Fair value of the senior unsecured notes (note 14) has been determined using the quoted market price at the period end.

7Fair 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.

8The carrying value of the facilities approximates the fair value as the facilities are based on floating interest rates.

29

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

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.

June 30, 2015	Level 1		Level 2			Level 3		Total
Financial assets measured at fair value
Financial assets at FVTPL:
Embedded derivatives	$	—	$	(9,215	)	$	—	$	(9,215	)
Investments at FVTPL	90		—			—		90
Prepayment option embedded derivative	—		10,312			—		10,312
Available-for-sale investments	14,225		—			2,000		16,225
	$	14,315	$	1,097		$	2,000	$	17,412
Financial liabilities measured at fair value
Financial assets at FVTPL:
Embedded derivatives	$	—	$	(506	)	$	—	$	(506	)
Non-hedge derivatives	—		2,028			—		2,028
Option liability	—		1,409			—		1,409
Warrant liability	25,759		4,092			—		29,851
	$	25,759	$	7,023		$	—	$	32,782

December 31, 2014	Level 1		Level 2			Level 3		Total
Financial assets measured at fair value
Financial assets at FVTPL:
Embedded derivatives	$	—	$	(1,807	)	$	—	$	(1,807	)
Non-hedge derivatives	—		1,345			—		1,345
Prepayment option embedded derivative	—		1,217			—		1,217
Available-for-sale investments	16,694		—			2,000		18,694
	$	16,694	$	755		$	2,000	$	19,449
Financial liabilities measured at fair value
Financial liabilities at FVTPL:
Embedded derivatives	$	—	$	(150	)	$	—	$	(150	)
Non-hedge derivatives	—		860			—		860
Warrant liability	22,702		3,598			—		26,300
	$	22,702	$	4,308		$	—	$	27,010

30

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

The Group’s Level 3 investment relates to a minority investment in an unlisted junior mining company. As no observable inputs exist, the Group measures the Level 3 investment at the cost of the investment. The Group monitors business developments and the financial position of the investee to evaluate whether the fair value of the investment has changed significantly. Factors that could result in a significantly lower fair value measurement include poor exploration results or inadequate liquidity to continue as a going concern, among other factors. Factors that would result in a significantly higher fair value measurement include positive exploration results, among other factors.

The Group’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 six months ended June 30, 2015, the Group did not make any transfers.

(b)Derivatives and hedging:

Copper fixed for floating swaps

Prior to 2015, the Group had entered into copper fixed for floating swaps on approximately 13 million pounds of copper, settling across January 2015 through March 2015 inclusive at an average fixed receivable price of US$2.79/lb associated with provisional pricing risk in concentrate sales agreements.  As at June 30, 2015, 13 million pounds of copper swaps were settled leaving no unsettled copper fixed for floating swaps (December 31, 2014 — 13 million unsettled copper fixed for floating swaps).

The hedging transactions were with counterparties that the Group believed to be creditworthy and did not require the Group to provide collateral. Both copper and zinc costless collars were settled at December 31, 2014 as such the aggregate fair value of the transactions are nil at June 30, 2015 and December 31, 2014. The copper fixed for floating swaps were settled at March 31, 2015 as such the aggregate fair value of the transactions were $nil at June 30, 2015 (December 31, 2014 - an asset position of $1,263).

Non-hedge derivative zinc contracts

Hudbay enters into fixed price sales contracts with zinc customers and, to ensure that the Group 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. The fixed price sales contracts with customers are not recognized as derivatives, as they are executory contracts entered into and held for the purpose of the Group’s expected sale requirements. However, the zinc forward purchase contracts are recorded as derivatives. Gain and losses on these contracts are recorded in revenues, and cash flows are classified in operating activities.

At June 30, 2015, the Group held contracts for forward zinc purchased of 10,699 tonnes (December 31, 2014 — 10,747 tonnes) that related to forward customer sales of zinc. Prices range from US$2,005 to US$2,317 per tonne (December 31, 2014 — US$2,085 to US$2,403) and settlement dates extended to December 2016. The aggregate fair value of the transactions at June 30, 2015 was a net liability position of $2,028 (December 31, 2014 — a net liability position of $778).

Non-hedge derivative - warrants

Warrants issued by Hudbay as consideration for the purchase of the acquisition of Augusta are derivative liabilities that are carried at their fair value, with changes in fair value recorded to the consolidated income statements in other finance (gain)/loss. The fair value of warrants issued is determined based on the quoted market prices for the listed warrants. The fair value of the Hudbay warrants at June 30, 2015 was a liability of $25,759 (December 31, 2014 - $22,702).

31

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

Augusta warrants assumed by Hudbay in the acquisition of Augusta are derivative liabilities that are carried at their fair value, with changes in fair value recorded to the consolidated income statements in other finance (gain)/loss. The fair value of the Augusta warrants is determined based on the Black-Scholes model. The fair value of the Augusta warrants at June 30, 2015 was a liability of $4,092 (December 31, 2014 — $3,598). On July 22, 2015, 1,374,951 of the Augusta warrants expired.

Non-hedge derivative - options

The purchase price of the acquisition of New Britannia (note 5a) contained an option (European) that pays the seller US$5 million if the price of gold is at or above US$1,400/oz on the third anniversary from the closing date, or nil if the price of gold is below that level on that date. The option represents a financial liability and was recorded at fair value at the acquisition date of New Britannia and will be remeasured at each reporting date with changes in the fair value being recognized as unrealized gains or losses in finance income and expenses (note 6e). The fair value of the embedded derivative at June 30, 2015 was a liability of $1,409 (December 31, 2014 - $nil).

(c)Embedded derivatives

Provisional pricing embedded derivatives

The Group records embedded derivatives 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.

Provisional pricing embedded derivatives 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 revenues for sales contracts and in cost of sales for purchase concentrate contracts. Cash flows related to provisional pricing embedded derivatives are classified in operating activities.

At June 30, 2015, the Manitoba segment’s net position consisted of contracts awaiting final pricing for sales of 9,104 tonnes of copper (December 31, 2014 — 8,576 tonnes) and no purchases of zinc (December 31, 2014 — nil tonnes). In addition, at June 30, 2015, the Manitoba segments net position consisted of contracts awaiting final pricing for sales of 2,463 ounces of gold and 22,615 ounces of silver (December 31, 2014 — 2,651 ounces of gold and 26,968 ounces of silver).

As at June 30, 2015, the Manitoba segment’s provisionally priced copper, gold and silver sales subject to final settlement were recorded at average prices of US$2.62/lb (December 31, 2014 — US$2.83/lb), US$1,172/oz (December 31, 2014 — US$1,184/oz) and US$15.57/oz (December 31, 2014 — US$15.59/oz), respectively.

At June 30, 2015, the Peru segment’s net position consisted of contracts awaiting final pricing for sales of 18,405 tonnes of copper (December 31, 2014 — nil). As at June 30, 2015, the Peru segment’s provisionally priced copper sales subject to final settlement were recorded at average prices of US$2.62/lb (December 31, 2014 — nil).

The aggregate fair value of the embedded derivatives within the copper concentrate sales contracts at June 30, 2015, was a liability position of $9,215 (December 31, 2014 — liability of $1,807). The aggregate fair value of the embedded derivatives within the zinc concentrate purchases and other contracts at June 30, 2015, was an asset position of $506 (December 31, 2014 — asset of $150).

32

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

Prepayment option embedded derivative

The 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 unrealized gains or losses in finance income and expense (note 6e). The fair value of the embedded derivative at June 30, 2015 was an asset of $10,312 (December 31, 2014 - an asset of $1,217).

21.Capital commitments

As at June 30, 2015, the Group had outstanding capital commitments in Canada of approximately $29,903 primarily related to committed mobile equipment purchases mostly for Lalor and 777, none of which can be terminated by the Group, approximately $186,698 in Peru related to sustaining capital costs, of which all can be terminated by the Group and approximately $328,351 in Arizona, primarily related to its Rosemont project, of which approximately $192,051 cannot be terminated by the Group.

22.Supplementary cash flow information

(a)Change in non-cash working capital:

	Three months ended						Six months ended
	June 30,						June 30,
	2015			2014			2015			2014
Change in:
Trade and other receivables	$	(24,387	)	$	7,438		$	(39,130	)	$	11,185
Inventories	(51,286		)	(15,507		)	(55,005		)	(38,257		)
Prepaid expenses	(3,076		)	(2,531		)	(2,864		)	(1,534		)
Trade and other payables	84,671			(100		)	83,205			1,512
Change in taxes payable/receivable	7,510			(4,384		)	8,580			(5,464		)
Taxes - ITC	(3,112		)	(1,176		)	(4,268		)	(2,960		)
Provisions and other liabilities	(13,800		)	(5,050		)	(16,859		)	(4,871		)
	$	(3,480	)	$	(21,310	)	$	(26,341	)	$	(40,389	)

(b)     Non-cash transactions:

During the six months ended June 30, 2015, the Group entered into the following non-cash investing and financing activities which are not reflected in the condensed consolidated interim statements of cash flows:

·Remeasurements of the Group’s decommissioning and restoration liabilities as at June 30, 2015, led to a net increase in related property, plant and equipment assets of $10,807 mainly as a result of the increased disturbance in Peru and the acquisition of New Britannia (note 5a). For the six months ended June 30, 2014, such remeasurements led to increases in property, plant and equipment assets of $18,627.

·Property, plant and equipment included $46,017 of additions which were not yet paid for as at June 30, 2015 (June 30, 2014 - $208,877). These purchases will be reflected in the consolidated statements of cash flows in the periods payments are made.

·See note 6g for non-cash transactions related to the disposal of Hudbay Michigan.

33

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

23.Segmented information

The Group is an integrated metals producer. When making decisions on expansions, opening or closing mines, as well as day to day operations, management evaluates the profitability of the overall operation of the Group. The Group’s main mining operations are located in Manitoba and Saskatchewan and Peru and are included in the Manitoba segment and Peru segment, respectively. The Manitoba and Peru segments generate the Group’s revenues. The Manitoba segment sells copper concentrate (containing copper, gold and silver), zinc metal and other products. The Peru segment, formerly a part of the South America segment, consists of the Group’s Constancia mine and sells copper concentrate. The Group’s Arizona segment consists of the Group’s Rosemont project in Arizona, which Hudbay acquired on July 16, 2014. Corporate and other activities include the Group’s exploration activities in Chile and Colombia as well as the Balmat segment which consists of a zinc mine and concentrator, which is on care and maintenance. The prior year comparatives have been recast to move the South American exploration entities to corporate and other activities as they were previously included in the previously named South American segment.  The exploration entities and Balmat are not individually significant, as they do not meet the minimum quantitative thresholds. Corporate activities are not considered a segment and are included as a reconciliation to total consolidated results. In 2013, the corporate and other activities segment includes the Michigan segment which was sold on January 17, 2014. Accounting policies for each reported segment are the same. Segment profit or loss represents the profit earned by each segment without allocation of corporate costs. This is the measure reported to the chief operating decision-maker, the Group’s President and Chief Executive Officer, for the purposes of resource allocation and the assessment of segment performance. Total assets and liabilities do not reflect intercompany balances, which have been eliminated on consolidation.

Three months ended June 30, 2015

	Manitoba			Peru		Arizona			Corporate and other activities			Total
Revenue from external customers	$	142,711		$	43,068	$	—		$	—		$	185,779
Cost of sales
Mine operating costs	116,522			26,938		—			—			143,460
Depreciation and amortization	25,792			11,353		—			—			37,145
Gross profit	397			4,777		—			—			5,174
Selling and administrative expenses	713			—		—			12,078			12,791
Exploration and evaluation	1,966			362		—			230			2,558
Other operating income and expenses	(333		)	943		1,256			276			2,142
Asset impairment	24,627											24,627
Results from operating activities	$	(26,576	)	$	3,472	$	(1,256	)	$	(12,584	)	$	(36,944	)
Finance income												(482		)
Finance expenses												23,289
Other finance gains												(2,649		)
Loss before tax												(57,102		)
Tax recovery												(1,884		)
Loss for the period												$	(55,218	)

34

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

Three months ended June 30, 2015

Additions to property, plant and equipment $ 12,360 $ 21,855 $ 26,926 $ — $ 61,141

Three months ended June 30, 2014

	Manitoba			Peru			Arizona		Corporate and other activities			Total
Revenue from external customers	$	139,329		$	—		$	—	$	—		$	139,329
Cost of sales
Mine operating costs	101,503			—			—		—			101,503
Depreciation and amortization	23,716			—			—		—			23,716
Gross profit	14,110			—			—		—			14,110
Selling and administrative expenses	514			—			—		12,408			12,922
Exploration and evaluation	1,388			395			—		471			2,254
Other operating income and expenses	(1,315		)	1,958			—		944			1,587
Results from operating activities	$	13,523		$	(2,353	)	$	—	$	(13,823	)	$	(2,653	)
Finance income												(912		)
Finance expenses												2,346
Other finance gains												(10,930		)
Profit before tax												6,843
Tax expense												6,591
Profit for the period												$	252

Three months ended June 30, 2014

Additions to property, plant and equipment $ 23,547 $ 279,331 $ — $ — $ 302,878

35

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

Six months ended June 30, 2015

	Manitoba			Peru		Arizona			Corporate and other activities			Total
Revenue from external customers	$	303,363		$	43,068	$	—		$	—		$	346,431
Cost of sales
Mine operating costs	228,874			26,938		—			—			255,812
Depreciation and amortization	57,735			11,353		—			—			69,088
Gross profit	16,754			4,777		—			—			21,531
Selling and administrative expenses	1,255			—		—			23,402			24,657
Exploration and evaluation	4,082			865		—			511			5,458
Other operating income and expenses	68			2,652		3,238			(107		)	5,851
Asset impairment	24,627			—		—			—			24,627
Results from operating activities	$	(13,278	)	$	1,260	$	(3,238	)	$	(23,806	)	$	(39,062	)
Finance income												(863		)
Finance expenses												27,670
Other finance gains												4,304
Loss before tax												(70,173		)
Tax expense												8,748
Loss for the period												$	(78,921	)

Six months ended June 30, 2014

	Manitoba			Peru			Arizona		Corporate and other activities			Total
Revenue from external customers	$	246,108		$	—		$	—	$	—		$	246,108
Cost of sales
Mine operating costs	182,785			—			—		—			182,785
Depreciation and amortization	39,143			—			—		—			39,143
Gross profit	24,180			—			—		—			24,180
Selling and administrative expenses	1,058			—			—		25,929			26,987
Exploration and evaluation	2,712			786			—		699			4,197
Other operating income and expenses	(672		)	3,503			—		2,368			5,199
Loss on disposal of subsidiary	—			—			—		6,512			6,512
Results from operating activities	$	21,082		$	(4,289	)	$	—	$	(35,508	)	$	(18,715	)
Finance income												(1,692		)
Finance expenses												4,729
Other finance losses												(4,456		)
Loss before tax												(17,296		)
Tax expense												9,671
Loss for the period												$	(26,967	)

36

HUDBAY MINERALS INC.

Notes to Unaudited Condensed Consolidated Interim Financial Statements

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

For the three and six months ended June 30, 2015 and 2014

June 30, 2015

	Manitoba		Peru		Arizona		Corporate and other activities		Total
Total assets	$	1,128,136	$	3,851,563	$	1,110,784	$	101,028	$	6,191,511
Total liabilities	790,857		1,270,635		208,206		1,353,196		3,622,894
Property, plant and equipment	857,708		3,330,815		946,465		8,869		5,143,857

Six months ended June 30, 2015

Additions to property, plant and equipment $ 49,375 $ 196,001 $ 39,397 $ — $ 284,773

December 31, 2014

	Manitoba		Peru		Arizona		Corporate and other activities		Total
Total assets	$	1,163,827	$	3,333,455	$	994,376	$	135,850	$	5,627,508
Total liabilities	820,318		1,022,273		190,474		1,147,723		3,180,788
Property, plant and equipment	884,971		2,970,697		849,935		10,208		4,715,811

Six months ended June 30, 2014

Additions to property, plant and equipment $ 73,064 $ 508,569 $ — $ — $ 581,633

37

EX-99.3

Exhibit 99.3

The following table sets forth certain summary consolidated financial information for the six months ended June 30, 2015 and 2014 in respect of HudBay Minerals Inc. (“Hudbay”) and its subsidiaries, certain of which are guarantors in respect of Hudbay’s US$920,000,000 aggregate principal amount of 9.5% senior unsecured notes (the “Notes”) due October 1, 2020.  The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by Hudbay’s existing and future subsidiaries, other than unrestricted subsidiaries and certain excluded subsidiaries that include subsidiaries that own the Constancia and Rosemont projects; the Notes are guaranteed by: Hudson Bay Mining and Smelting Co., Limited, Hudson Bay Exploration and Development Company Limited and HudBay Marketing & Sales Inc.

This disclosure is being provided pursuant to Part 13.4 of National Instrument 51-102.  Additional continuous disclosure relating to Hudbay can be found on the System  for  Electronic  Document  Analysis  and  Retrieval (“SEDAR”) at www.sedar.com and on the Electronic Data Gathering, Analysis, and Retrieval system (“EDGAR”) at www.sec.gov.

	For the three months ending June 30:
	Guarantor - Issuer			Guarantor - Credit Supporters				Non Guarantor - Others				Consolidating adjustments 1				Consolidated Hudbay total
(000’s)	2015		2014	2015		2014		2015		2014		2015		2014		2015		2014
Total revenue	—		—	143,374		162,861		43,068		—		(663	)	(23,532	)	185,779		139,329
Profit (loss) continuing operations - attributable to owners	(2,751	)	7,138	(47,540	)	(6,320	)	(18,365	)	(15,094	)	13,438		14,528		(55,218	)	252
Profit (loss) - attributable to owners	(2,751	)	7,138	(47,540	)	(6,320	)	(18,365	)	(15,094	)	13,438		14,528		(55,218	)	252

	For the six months ending June 30:
	Guarantor - Issuer				Guarantor - Credit Supporters				Non Guarantor - Others				Consolidating adjustments 1				Consolidated Hudbay total
(000’s)	2015		2014		2015		2014		2015		2014		2015		2014		2015		2014
Total revenue	—		—		360,010		269,640		43,068		—		(56,647	)	(23,532	)	346,431		246,108
Profit (loss) continuing operations - attributable to owners	(31,484	)	(5,882	)	(52,219	)	(8,119	)	(26,617	)	(29,439	)	31,399		16,563		(78,921	)	(26,877	)
Profit (loss) - attributable to owners	(31,484	)	(5,882	)	(52,219	)	(8,119	)	(26,617	)	(29,439	)	31,399		16,563		(78,921	)	(26,877	)

	As at June 30, 2015 and December 31, 2014:
	Guarantor - Issuer		Guarantor - Credit Supporters		Non Guarantor - Others		Consolidating adjustments 1				Consolidated Hudbay total
(000’s)	2015	2014	2015	2014	2015	2014	2015		2014		2015	2014
Current assets	73,907	88,103	240,448	240,941	305,912	199,400	—		6,372		620,267	534,816
Non-current assets	3,471,411	3,265,276	1,395,823	1,335,585	7,466,258	6,568,215	(6,762,249	)	(6,076,384	)	5,571,243	5,092,692
Current liabilities	47,808	43,575	175,155	181,025	255,479	201,637	—		7,455		478,442	433,692
Non-current liabilities	1,301,220	1,092,096	1,271,427	1,177,109	1,913,281	1,667,451	(1,341,476	)	(1,189,560	)	3,144,452	2,747,096

1 This column includes all necessary amounts to eliminate all intercompany balances between the Guarantor credit supporters and the non-guarantor others, and other adjustments to arrive at the information for Hudbay on a consolidated basis.

EX-99.4

Exhibit 99.4

FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE

I, David Garofalo, 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 June 30, 2015.

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 April 1, 2015 and ended on June 30, 2015 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: July 29, 2015

(signed) David Garofalo

David Garofalo
President and Chief Executive Officer

EX-99.5

Exhibit 99.5

FORM 52-109F2
CERTIFICATION OF INTERIM FILINGS
FULL CERTIFICATE

I, David S. Bryson, 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 June 30, 2015.

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 April 1, 2015 and ended on June 30, 2015 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: July 29, 2015

(signed) David S. Bryson

David S. Bryson
Senior Vice President and Chief Financial Officer

EX-99.6

Exhibit 99.6

TSX, NYSE — HBM

2015 No. 16

Hudbay Releases Second Quarter 2015 Results

Toronto, Ontario, July 29, 2015 — HudBay Minerals Inc. (“Hudbay” or the “company”) (TSX, NYSE:HBM) today released its second quarter 2015 financial results.

In the second quarter of 2015, operating cash flow before stream deposit and change in non-cash working capital increased to $20.7 million from $11.8 million in the second quarter of 2014.

The net loss and loss per share in the second quarter of 2015 were $55.2 million and $0.24, respectively, compared to net income and income per share of $0.3 million and nil, respectively, in the second quarter of 2014. Net loss and loss per share in the second quarter of 2015 were affected by, among other things, the following items:

	Pre-tax loss ($ millions)		After-tax loss ($ millions)		Per share loss ($/share)
Lalor concentrator impairment charge	(24.6	)	(16.2	)	(0.07	)
Pension expense arising from new collective bargaining agreements	(21.1	)	(13.9	)	(0.06	)
Non-cash deferred tax adjustments	—		(8.0	)	(0.03	)

The Constancia mine commenced production in December 2014, and achieved commercial production on April 30, 2015. Ocean shipments began in April 2015, and the mine and concentrator are currently processing ore at or above design capacity. Hudbay expects to achieve full year 2015 production and operating cost guidance for all of its operations.

Financial and Operating Results

Cash flow from operations was positively impacted by increased revenue as a result of significant increases in production of all metals as the Constancia mine achieved commercial production at the end of April 2015. Copper, gold, silver and zinc production increased by 270%, 37%, 301% and 9%, respectively, in the second quarter of 2015 compared to the same period in 2014. In addition, cash costs per pound of copper produced, net of by-product credits, declined by 37% compared to the same period in 2014, to US$1.29. The business benefited from slightly

TSX, NYSE — HBM 2015 No. 16

higher production volumes in Manitoba, weaker local currencies, lower energy and other input costs and the achievement of commercial production from the large-scale Constancia mine during the second quarter.

While improved when compared to the prior year, cash flow from operations and net earnings were negatively impacted by unsold copper, gold, and silver during the quarter. At quarter end, Hudbay had approximately 73,100 tonnes of unsold copper concentrate containing 19,200 tonnes of copper, 30,300 ounces of gold and 579,300 ounces of silver. Shipments from the Constancia mine to the port in Matarani were constrained during May and June by several factors including truck availability, protests along the lower part of the trucking route, unrelated to Constancia, and road refurbishment activities along the route that increased cycle times for concentrate trucks. Steps have been taken to increase the size of the trucking fleet, and the excess inventory is expected to be drawn down over the second half of 2015. In addition, limitations on rail service resulted in a continued build up of copper concentrate inventory in Manitoba. However, additional leased rail cars are expected to enter service during the third quarter which is expected to draw down inventory levels. Also, cash flow from operations was negatively affected by a $10.5 million increase in cash taxes, when compared to the prior year’s quarter, as gross profit, before depreciation and the non-cash pension expense, increased by 68% to $63.4 million.

In addition to the pension expense resulting from pension enhancements agreed to as part of the Manitoba collective bargaining process and the Lalor concentrator impairment charge, net earnings were also negatively affected by higher depreciation resulting from commercial production at Constancia and Lalor, and higher interest expense as interest related to the Constancia project is no longer being capitalized.

	Three months ended			Six months ended
Financial Performance	June 30			June 30
($000s except per share and cash amounts)	2015		2014	2015		2014
Revenue	185,779		139,329	346,431		246,108
(Loss) profit before tax	(57,102	)	6,843	(70,173	)	(17,296	)
Basic and diluted (loss) earnings per share1	(0.24	)	—	(0.34	)	(0.14	)
(Loss) profit	(55,218	)	252	(78,921	)	(26,967	)
Operating cash flows before stream deposit and change in non-cash working capital	20,661		11,764	44,717		7,130
Operating cash flow per share2	0.09		0.06	0.19		0.04
Cash cost per pound of copper produced, net of by-product credits - US$2	1.29		2.04	1.33		2.32
Production
Contained metal in concentrate3
Copper (tonnes)	36,212		9,778	51,220		17,733
Gold (oz)	23,217		16,982	46,892		35,630
Silver (oz)	779,364		194,350	1,090,232		381,351
Zinc (tonnes)	23,486		21,481	46,392		40,776
Metal Sold
Payable metal in concentrate
Copper (tonnes)	25,868		8,366	36,863		13,905
Gold (oz)	15,175		18,741	27,525		29,507
Silver (oz)	428,095		191,098	528,411		293,907
Refined zinc (tonnes)	25,657		24,351	49,436		45,455

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TSX, NYSE — HBM 2015 No. 16

1Attributable to owners of the Company

2Operating cash flow per share and 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 page 6 of this news release.

3Metal reported in concentrate is prior to refining losses or deductions associated with smelter contract terms

At June 30, 2015, Hudbay had total pro-forma available and committed liquidity of approximately $436.6 million, including $143.3 million in cash and cash equivalents and availability under its committed credit facilities. In the second half of 2015, Hudbay expects to realize over $100 million in cash flow from the sale of excess copper concentrate inventory and value added tax refunds from the Peruvian government. Hudbay expects that its current liquidity and expected cash flows will be sufficient to meet its liquidity needs for 2015.

Recent Developments

On May 4, 2015, Hudbay closed a transaction to acquire a 100% interest in the New Britannia mine and mill, located in Snow Lake, Manitoba. While there are presently no plans to bring the New Britannia mine back into production, based on its initial review, Hudbay believes the New Britannia mill (the “NBM Mill”), if refurbished, has the potential to process approximately 2,000 tonnes per day of gold zone ore from the Lalor mine. As a result of the acquisition of the NBM Mill, Hudbay no longer plans to construct a new concentrator at Lalor, and during the three months ended June 30, 2015, an impairment loss of $24.6 million related to its Lalor concentrator assets was recognized.

Hudbay has received commitments from its current lenders to increase the size of its corporate revolving credit facility from US$300 million to US$400 million. The upsized credit facility will be on substantially similar terms to the existing revolving credit facility and will be repayable in March 2018. Hudbay expects to complete definitive documentation for the credit facility amendments during the third quarter of 2015.

The collective agreements with each of the seven labour unions representing employees at the Manitoba business unit expired on December 31, 2014. The members of the International Association of Machinists and Aerospace Workers, Local No. 1848 have been on strike since May 2, 2015. The other six unions, representing approximately 88% of Hudbay’s employees in Manitoba, have ratified new three year agreements. The Manitoba operations continue to operate under a comprehensive contingency plan.

A semi-annual dividend of $0.01 per share was declared on July 29, 2015. The dividend will be paid on September 30, 2015 to shareholders of record as of September 11, 2015.

Peru Operations Review

Mining operations continue to progress as planned and cost optimization is underway. Equipment availabilities are within design parameters and both loading and hauling efficiencies are consistent with expectations.

Optimization of plant performance was a primary focus in the later part of the second quarter of 2015 in response to normal ramp up challenges regarding ore blending and recoveries. Coordination among the mine planning, mine operations and plant operations groups has resulted in progress, and recoveries are now in line with expectations.

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TSX, NYSE — HBM 2015 No. 16

Daily ore throughput continues to meet ramp-up milestones. Since the end of the second quarter, daily ore throughput has averaged approximately 80,000 tonnes and copper recoveries have averaged approximately 75%.

Commissioning of the molybdenum flotation circuit commenced late in the second quarter of 2015, and ramp up of production is planned during the third quarter.

Manitoba Operations Review

For the second quarter of 2015, ore processed was 3% higher compared to the same period of 2014 primarily as a result of increased production at Lalor partially offset by lower production at the 777 mine. Compared to the second quarter of 2014, zinc and gold grades were 7% and 11% higher, and copper and silver grades were 7% and 17% lower as a result of normal mine sequencing. Recoveries of zinc and gold in the second quarter of 2015 were consistent with the same period of 2014, and recoveries of copper and silver in the second quarter of 2015 were 4% and 13% higher compared to the same period of 2014 as a result of higher copper ore grades received by the Flin Flon concentrator. Combined operating costs per tonne of ore processed in the second quarter of 2015 were 25% higher, compared to the same period in 2014, primarily due to increased production at the Snow Lake operations which have higher unit costs, as well as increased unit costs at the Flin Flon operations resulting from decreased production at the 777 mine.

Year-to-date ore processed was 9% higher than the same period in 2014 as a result of increased production from Lalor and Reed. Year-to-date copper, zinc and gold grades were 5%, 4% and 6% higher, respectively, and silver grades were 15% lower compared to the same period of 2014 as a result of normal mine sequencing. Year-to-date recoveries of copper, zinc and gold were consistent with the same period of 2014. Recoveries of silver were 14% higher compared to the same period of 2014 as a result of higher copper ore grades received by the Flin Flon concentrator. Combined operating costs per tonne of ore processed year-to-date in 2015 were 17% higher, compared to the same period in 2014, primarily due to the same factors that affected second quarter production and costs.

Lalor Copper-Gold Zone Exploration Results

The Phase 1 copper-gold zone drill program at Lalor included a total of 14 holes (totalling approximately 4,500 metres) drilled from the 1,025 metre level; assay results from seven holes were released with Hudbay’s first quarter results in May. Assay results from the remaining seven holes are shown in the table on the following page and were similar to those from previous holes, confirming a high grade thick core down the middle of the main zone with decreasing grade and thickness towards the contacts, as well as separate hanging wall and footwall mineralization.

The Phase 2 exploration ramp extension to the north, which will allow testing of the copper-gold zones down plunge, and step out drilling to the east and west, is progressing well and is expected to be complete by the end of August. Drilling from the Phase 2 exploration ramp is anticipated to commence in September 2015 with approximately 8,500 metres of drilling planned. The Phase 2 portion of the ramp development continues to maintain a drift size capable of accommodating future mine equipment and related infrastructure for mining the copper-gold zones.

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TSX, NYSE — HBM 2015 No. 16

Hole1	Cu-Au Zone	Core Length2 (m)	From (m)	To (m)	Cu (%)	Au (g/t)	Ag (g/t)	Zn (%)
LX0007	Hanging wall	7.20	127.80	135.00	1.47	5.95	8.11	0.07
LX0007	Main	26.53	159.22	185.75	4.04	11.30	27.53	0.41
LX0008	Main	0.52	175.96	176.48	0.43	1.34	5.90	0.02
LX0009	Hanging wall	2.83	127.17	130.00	2.03	2.73	5.80	0.06
LX0009	Main	24.10	160.20	184.30	5.28	17.46	43.44	0.84
LX0010	Hanging wall	8.75	91.75	100.50	0.02	2.34	4.82	0.01
LX0010	Hanging wall	3.08	114.56	117.64	2.57	9.78	45.22	0.15
LX0010	Main	0.37	184.58	184.95	3.09	11.45	36.69	0.06
LX0011	Hanging wall	5.55	146.75	152.30	4.79	22.62	27.95	0.19
LX0011	Main	3.96	158.54	162.50	2.12	5.77	6.81	0.11
LX0011	Main	13.50	168.50	182.00	5.60	12.37	20.42	0.26
LX0011	Main	4.49	192.91	197.40	2.28	3.09	11.04	0.22
LX0012	Hanging wall	7.02	122.82	129.84	3.15	7.25	1.04	0.08
LX0012	Main	0.43	169.11	169.54	0.33	1.27	7.99	0.00
LX0014	Main	18.76	205.24	224.00	5.94	11.52	19.14	0.32
LX0014	Main	3.96	229.00	232.96	3.00	1.74	15.15	0.19
LX0014	Footwall	7.45	248.55	256.00	2.66	2.82	12.59	0.22

1The quality assurance and quality control measures and the sampling, analytical and testing procedures that were applied and utilized during the execution of the exploration work at Lalor were substantially similar to those discussed in the Technical Report for Lalor that was previously filed on SEDAR, titled Pre-Feasibility Study Technical Report, on the Lalor Deposit, Snow Lake, Manitoba, Canada, effective as of March 29, 2012. There are no drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the preliminary results.

2Due to varying angles of the drill holes and almost flat-lying nature of the copper-gold zone, true width is approximately 50% to 100% of core length

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TSX, NYSE — HBM 2015 No. 16

	Collar Location
Hole	NAD83 Zone 14 East	NAD83 Zone 14 North	Distance below Surface (m)	Core Size	Azimuth (degrees)	Dip (degrees)	Length (m)
LX0007	426782	6081349	1021	NQ	185.9	-68	227.4
LX0008	426783	6081349	1021	NQ	160.9	-66	230.4
LX0009	426782	6081349	1021	NQ	185.9	-77	230.4
LX0010	426784	6081349	1021	NQ	146.9	-73	317.4
LX0011	426784	6081357	1021	NQ	150.0	-83	224.4
LX0012	426782	6081356	1021	NQ	234.0	-83	227.3
LX0014	426786	6081394	1022	NQ	37.1	-81	272.0

To view the Lalor plan view click here

To view the vertical composite section click here

Conversion to US Dollar Reporting

Following the declaration of commercial production at Constancia, Hudbay has determined that, effective July 1, 2015, the appropriate functional currency of its corporate entity has changed from Canadian dollars to US dollars. In addition, Hudbay intends to change its reporting currency to US dollars effective with the financial reports for the three and nine months ending September 30, 2015.

Non-IFRS Financial Performance Measures

Operating cash flow per share and cash cost per pound of copper produced are included in this news release because the company believes that, in the case of operating cash flow per share, it helps investors and management to evaluate changes in cash flow while taking into account changes in shares outstanding, and in the case of cash cost per pound of copper produced, it helps investors assess the performance of the company’s operations. These measures do not have a meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS and are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate these measures differently.

Operating Cash Flow per Share

The following table presents Hudbay’s calculation of operating cash flow per share for the three months and six months ended June 30, 2015 and June 30, 2014:

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TSX, NYSE — HBM 2015 No. 16

	Three Months Ended June 30		Six Months Ended June 30
($000s except shares and per share amounts)	2015	2014	2015	2014
Operating cash flow before stream deposit and change in non-cash working capital	20,661	11,764	44,717	7,130
Weighted average shares outstanding - basic	234,588,385	193,015,043	234,109,246	189,542,667
Operating cash flow per share1 ($)	0.09	0.06	0.19	0.04

1Operating cash flow per share is before stream deposit and change in non-cash working capital. It is a non-IFRS financial performance measure with no standardized meaning under IFRS.

Reconciliation of Cash Cost, After By-product Credits (non-IFRS) to Cost of Sales (IFRS)

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 the company’s operations. Hudbay’s calculation designates copper as its primary metal of production as it has been, and is expected to be, the largest component of revenues. Two changes have been made to the cash cost calculation beginning with the period ended June 30, 2015. First, the basis of measurement has been changed from pounds of copper sold to pounds of copper produced. This change has been made to better align the costs of production in the same period as the copper produced and reduce variation in cash cost due to inventory sales timing. Second, royalties have been removed from the cash cost. This change increases consistency between Hudbay’s cash cost calculation and industry peers. The calculation is presented in two 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, Hudbay’s 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, and an increase in production of zinc metal will tend to result in an increase in cash costs under this measure.

·Cash cost, net of by-product credits - In order to calculate the 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, silver, and molybdenum are significant and are integral to the economics of Hudbay. The economics that support Hudbay’s decision to produce and sell copper would be different if the company 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 cash flows and operating margins, assuming that 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 Hudbay’s operating performance versus that of its 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.

The tables below present a detailed build-up of cash cost by business unit in addition to reconciliations between cash cost, after by-product credits to the most comparable GAAP measures of cost of sales for the three and six-month

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TSX, NYSE — HBM 2015 No. 16

periods ended June 30, 2015 and 2014. Cash costs, net of by-product credits per pound of copper produced may not calculate based on amounts presented in the tables below due to rounding.

Consolidated	Three Months Ended June 30		Six Months Ended June 30
Net pounds of copper produced1 (000s)	2015	2014	2015	2014
Manitoba	21,469	21,557	45,647	36,850
Peru	39,991	—	39,991	—
Net pounds of copper produced1	61,460	21,557	85,638	36,850

Consolidated	Three Months Ended June 30								Six Months Ended June 30
Cash costs per pound of copper produced	2015				2014				2015				2014
	$000s		$/lb		$000s		$/lb		$000s		$/lb		$000s		$/lb
Cash cost, before by-product credits	182,965		2.98		123,039		5.71		306,732		3.58		229,436		6.23
By-product credits	(85,783	)	(1.40	)	(75,467	)	(3.50	)	(166,154	)	(1.94	)	(136,938	)	(3.72	)
Cash cost, net of by-product credits	97,182		1.58		47,572		2.21		140,578		1.64		92,498		2.51
Average US$/C$ exchange rate	1.23				1.08				1.24				1.08
Cash cost, net of by-product credits - US$	79,048		1.29		44,048		2.04		113,802		1.33		85,646		2.32

1Contained copper in concentrate, exclusive of Constancia copper produced prior to achievement of commercial production on May 1, 2015

Consolidated	Three Months Ended June 30								Six Months Ended June 30
Supplementary cash cost information	2015				2014				2015				2014
	$000s		$/lb1		$000s		$/lb1		$000s		$/lb1		$000s		$/lb1
By-product credits:
Zinc	74,228		1.21		59,944		2.78		140,997		1.65		112,133		3.04
Gold	23,377		0.38		25,928		1.20		42,495		0.50		40,043		1.09
Silver	8,656		0.14		4,244		0.20		11,111		0.13		6,587		0.18
Other	766		0.01		1,262		0.06		2,455		0.03		2,246		0.06
Total by-product credits	107,027		1.74		91,378		4.24		197,058		2.30		161,009		4.37
Less: deferred revenue	(18,593	)	(0.30	)	(15,454	)	(0.72	)	(28,253	)	(0.33	)	(22,515	)	(0.61	)
Less: pre-production credits	(2,651	)	(0.04	)	(457	)	(0.02	)	(2,651	)	(0.03	)	(1,556	)	(0.04	)
Total by-product credits, net of pre- production credits	85,783		1.40		75,467		3.50		166,154		1.94		136,938		3.72
Reconciliation to IFRS:
Cash cost, net of by-product credits	97,182				47,572				140,578				92,498
By-product credits	107,027				91,378				197,058				161,009
Change in deferred revenues	(18,593	)			(15,454	)			(28,253	)			(22,515	)
Pre-production revenues	(2,651	)			(457	)			(2,651	)			(1,556	)
Treatment and refining charges2	(14,550	)			(8,781	)			24,704				(13,836	)
Share based payment	303				400				611				642
Pension enhancement	21,101				—				21,101				—
Adjustments related to zinc inventory write-off (reversals)	—				(5,685	)			—				(5,011	)
Change in product inventory	(48,905	)			(10,191	)			(52,080	)			(33,436	)
Royalties	2,546				2,721				4,152				4,990
Depreciation and amortization	37,145				23,716				69,088				39,143
Cost of sales	180,605				125,219				324,900				221,928

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1Per pound of copper produced

2Excludes $9,500 of treatment and refining charges which were incurred prior to commercial production

Cash cost net of by-product credits in the second quarter of 2015 was US$1.29/lb, a decrease of US$0.75/lb compared to the same period of 2014. The decrease is largely the result of less reliance on purchased zinc concentrates, increased zinc by-product credits, and the effect of foreign exchange on Canadian dollar denominated costs in Manitoba and the start of commercial production at Constancia during the quarter.

Year-to-date cash cost net of by-product credits was US$1.33/lb, compared to US$2.32/lb in 2014. The year-to-date variance is largely the result of the factors noted in the discussion of the second quarter variance.

Website Links

Hudbay:

www.hudbayminerals.com

Management’s Discussion and Analysis:

http://www.hudbayminerals.com/files/doc_financials/2015/Q2/IMDAQ215.pdf

Financial Statements:

http://www.hudbayminerals.com/files/doc_financials/2015/Q2/IFSQ215.pdf

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Conference Call and Webcast

Date:	Thursday, July 30, 2015
Time:	10:30 a.m. ET
Webcast:	www.hudbayminerals.com
Dial in:	416-849-1847 or 1-866-530-1554
Replay:	647-436-0148 or 1-888-203-1112
Replay Passcode:	5000396#

The conference call replay will be available until 1:30 p.m. (Eastern Time) on August 5, 2015. An archived audio webcast of the call also will be available on Hudbay’s website.

Qualified Person

The technical and scientific information in this news release related to the Constancia project has been approved by Cashel Meagher, P. Geo, Hudbay’s Vice President, South America Business Unit. The technical and scientific information related to all other sites and projects contained in this news release has been approved by Robert Carter, P. Eng, Hudbay’s Director, Technical Services. Messrs. Meagher and Carter 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, 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 us on SEDAR at www.sedar.com.

Forward-Looking Information

This news release contains “forward-looking statements” and “forward-looking information” (collectively, “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, anticipated production at Hudbay’s mines and processing facilities, anticipated production from the company’s projects and events that may affect its operations and development projects, including a strike action that has been commenced by one union at the company’s Manitoba operations, the anticipated effect of external factors on revenue, such as commodity prices, the potential to refurbish the recently acquired New Britannia mill and utilize it to process ore from its Lalor mine, the anticipated exploration and development expenditures and activities and the possible success of such

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activities at Lalor and elsewhere, estimation of mineral reserves and resources, mine life projections, reclamation costs, economic outlook, government regulation of mining operations, business and acquisition strategies, and the anticipated closing of its amended credit facility. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information.

The material factors or assumptions that Hudbay identified and were applied by the company in drawing conclusions or making forecasts or projections set out in the forward looking information include, but are not limited to:

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

·the accuracy of geological, mining and metallurgical estimates;

·the costs of production;

·the supply and demand for metals that Hudbay produces;

·no significant and continuing adverse changes in financial markets, including commodity prices and foreign exchange rates;

·the ability to successfully carry out Hudbay’s contingency plan for labour disruptions at its Manitoba operations as a result of the strike action that has been commenced by one union;

·the supply and availability of concentrate for Hudbay’s processing facilities;

·the supply and availability of third party processing facilities for Hudbay’s concentrate;

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

·the availability of transportation services at reasonable prices;

·the ability to successfully resolve logistical issues with respect to the transportation and shipping of concentrates;

·no significant unanticipated operational or technical difficulties;

·the execution of Hudbay’s business and growth strategies, including the success of its 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 Hudbay’s ability to develop its projects;

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

·the availability of personnel for Hudbay’s exploration, development and operational projects and ongoing employee relations;

·Hudbay’s ability to secure required land rights to mine the Pampacancha deposit in Peru;

·maintaining good relations with the communities in which Hudbay operates, including the communities surrounding its Constancia and Rosemont projects and First Nations communities surrounding its Lalor and Reed mines;

·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 Hudbay’s properties, including as a result of rights or claimed rights of aboriginal peoples;

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

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·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.

The risks, uncertainties, contingencies and other factors that may cause actual results to differ materially from those expressed or implied by the forward-looking information may include, but are not limited to, risks generally associated with the mining industry, such as economic factors (including future commodity prices, currency fluctuations, energy prices and general cost escalation), uncertainties related to the development and operation of Hudbay’s projects (including risks associated with the permitting of the Rosemont project and related legal challenges), risks associated with labour disruptions at the company’s Manitoba operations, dependence on key personnel and employee and union relations, risks related to political or social unrest or change, risks in respect of aboriginal and community relations, rights and title claims, operational risks and hazards, including 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 planned infrastructure improvements in Peru (including the expansion of the port in Matarani) not being completed on schedule, compliance with government and environmental regulations, including permitting requirements and anti-bribery legislation, depletion of the company’s reserves, volatile financial markets that may affect Hudbay’s ability to obtain 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, Hudbay’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.

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.

Information concerning Hudbay’s mineral properties has been prepared in accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements of the Securities and Exchange Commission (the “SEC”) set forth in Industry Guide 7. Under the SEC’s Industry Guide 7, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time of the reserve determination, and the SEC does not recognize the reporting of mineral deposits which do not meet the SEC Industry Guide 7 definition of “Reserve”. In accordance with National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”) of the Canadian Securities Administrators, the terms “mineral reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are

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defined in the Canadian Institute of Mining, Metallurgy and Petroleum (the “CIM”) Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required by NI 43-101, the SEC does not recognize them. You are cautioned that, except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic value. Inferred mineral resources have a high degree of uncertainty as to their existence and as to whether they can be economically or legally mined. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Therefore, you are cautioned not to assume that all or any part of an inferred mineral resource exists, that it can be economically or legally mined, or that it will ever be upgraded to a higher category. Likewise, you are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be upgraded into mineral reserves.

About Hudbay

Hudbay (TSX, NYSE: HBM) is an integrated mining company producing copper concentrate (containing copper, gold and silver) and zinc metal. With assets in North and South America, the company is focused on the discovery, production and marketing of base and precious metals. Through its subsidiaries, Hudbay owns four polymetallic mines, four ore concentrators and a zinc production facility in northern Manitoba, Saskatchewan and Cusco (Peru) and a copper project in Arizona (United States). Hudbay also has equity investments in a number of junior exploration companies. The company’s growth strategy is focused on the exploration and development of properties it already controls, as well as other mineral assets it may acquire that fit its strategic criteria. Hudbay’s vision is to become a top-tier operator of long-life, low cost mines in the Americas. Hudbay’s mission is to create sustainable value through increased commodity exposure on a per-share basis, in high quality and growing long-life deposits in mining-friendly jurisdictions. 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. Hudbay also has warrants listed under the symbol “HBM.WT” on the Toronto Stock Exchange and “HBM/WS” on the New York Stock Exchange.

For further information, please contact:

Jacqueline Allison

Director, Investor Relations

(416) 814-4387

jacqueline.allison@hudbayminerals.com

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