Stocks to watchGold is up again

Watch the secular market Mining

Coeur Mining is the largest U.S.-based primary silver

producer and a significant gold producer

HudBay Minerals Inc.

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Goldpreis - Gold Chart; 1.345,49 $; Date 05-07-2016

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Gold – Date: 05-07-2016

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Coeur Mining

Coeur has been a star performer YTD.

Coeur has slashed costs and refocused its operations on the higher grade portions of its Palmarejo and

Kensington mines. The company expects to access these higher margin ore sources by late 2016 and

this should deliver better margins, for as long as this ore lasts. Progress with this initiative and deep

cuts to costs seem to have encouraged investors and led to stocks outperformance.

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Coeur Mining – Strong Portfolio

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Coeur Mining is the largest U.S.-based primary silver producer and a significant gold producer with five precious

metals mines in the Americas. Coeur produces from its wholly-owned operations: the Palmarejo silver-gold mine in Mexico,

the San Bartolome silver mine in Bolivia, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska,

and the Wharf gold mine in South Dakota.

The company also has a non-operating interest in the Endeavor mine in Australia, and royalties on the Cerro Bayo mine in

Chile, the El Gallo complex in Mexico, the Zaruma mine in Ecuador, and the Correnso mine in New Zealand. In addition,

the Company has two silver-gold feasibility stage projects - the La Preciosa project in Mexico and the Joaquin project in

Argentina.

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Coeur Mining

Coeur Mining Inc. (CDE.N)

11.26USD; 1 July 2016

Coeur has been a star performer YTD. Coeur has slashed costs and refocused its operations on the higher grade portions of its Palmarejo and

Kensington mines. The company expects to access these higher margin ore sources by late 2016 and this should deliver better margins, for as

long as this ore lasts. Progress with this initiative and deep cuts to costs seem to have encouraged investors and led to stocks outperformance.

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Coeur Mining - Interim Income Statement

Coeur Mining Inc

Interim Income Statement

[Standardized in USD Millions]

31-Mar-2016 31-Dec-2015 30-Sep-2015 30-Jun-2015 31-Mar-2015

Period Length 3 Months 3 Months 3 Months 3 Months 3 Months

Total Revenue 148,4 164,3 162,6 166,3 153

Cost of Revenue 101,6 125,3 120,2 119,1 115,1

Gross Profit 46,8 39,1 42,3 47,2 37,9

Exploration, Development and Mineral Property Lease 1,7 1,7 2,1 3,6 4,3

General and Administrative Expense 8,3 8,9 6,7 8,5 8,8

Selling, General and Administrative Expenses 8,3 8,9 6,7 8,5 8,8

Development Expense 4,2 - 4,9 2,3 6,8

Research and Development 4,2 - 4,9 2,3 6,8

Depreciation, Amortization and Depletion 28 36,2 35,5 39 33,1

Write-Down 4,4 - - - -

Special Income Charges 4,4 - - - -

Total Operating Expense 46,6 363,9 49,2 53,3 53

Total Expenses 148,2 489,2 169,5 172,4 168

Operating Income 0,2 -324,8 -6,9 -6,1 -15,1

Interest Expense - Non-Operating 9,8 11,8 12,4 13,6 8,4

Net Non-Operating Interest Income (Expense) -9,8 -11,8 -12,4 -13,6 -8,4

Income Before Tax -18,3 -320,8 -22,5 -16,9 -33,2

Total Income Tax 2,1 -17,8 -8,3 -0,3 0,1

Income After Tax -20,4 -303 -14,2 -16,7 -33,3

Net Income -20,4 -303 -14,2 -16,7 -33,3

EBITDA 19,5 -272,9 25,5 39,1 8,3

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Coeur Mining owns : a Diversified Geographical Presence

Geographically diverse operations helps Coeur mitigate the various risks associated with an over dependence on a

particular market. The company is a silver and gold mining company. It owns operational properties in Mexico, the US and

Bolivia. It also owns development projects; and streaming and royalty interests in Mexico, Australia, New Zealand Chile

and Ecuador. Geographically, the company classifies its operations into five regions: the US, Mexico, Bolivia, Australia and

Others. In FY 2015, these regions accounted for 58%, 27.%, 13 %, 1.4 % and 0.6% of the company’s total revenue

respectively. A wide geographical presence enables the company to enhance its brand equity, and provides new growth

opportunities.

Coeur Mining owns : Huge Reserves

Strong reserves help the company to cater the increasing demand in the market. As of December 2015, the company’s

San Bartolome mine has proven and probable reserves of 27.9 ounces of silver at the mine. Its Palmarejo silver and gold

mine has total proven and probable reserves of 9.09Mt, with 44.9 Moz of silver at 4.94 oz./ton of silver grade. . In addition,

the Rochester Mine has total proven and probable reserves of 150.6 Mt with 79.3 ounces of silver at 0.53 oz./ton of silver

grade and 0.003 oz./ton of gold grade. Kensington mine has total proven and probable reserves of 26.7 Mt with 560,301

ounces of gold at 0.198 oz./ton of gold grade. Therefore, the company’s reserves and resources enhance its business

operations and generate higher revenues.

Coeur Mining owns : Strong Asset Base

Strong asset base enables the company to enhance its business growth objectives. The company involves in the

production and exploration of silver and gold mining assets. Coeur owns and operates San Bartolome mine; Palmarejo

mine; Rochester mine; Wharf mine; and the Kensington Gold Mine. Coeur also owns streaming and royalty interests in

Endeavor mine which produces silver, lead and zinc; El Gallo complex; Zaruma gold mine; Cerro Bayo silver-gold mine;

Correnso gold mine; and other non-producing properties. The company also owns development projects including Joaquin

in Argentina and La Preciosa in Mexico. In Fy2015, the company produced 15.9 million ounces (Moz) of silver and 327,908

ounces of gold. Therefore, strong asset base helps the company in attracting larger customer base, while improving the

top-line performance.

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Coeur Mining

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HudBay Minerals Inc.

Assets:

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HudBay Minerals Inc. is a Canada-based mining company. The Company is engaged in the production of copper

concentrate, consisting of copper, gold and silver, as well as zinc metal. The Company is focused on the discovery,

production and marketing of base and precious metals. The Company has assets in North and South America. Through its

subsidiaries, the Company owns approximately four polymetallic mines, four ore concentrators and a zinc production

facility in northern Manitoba and Saskatchewan (Canada) and Cusco (Peru), and a copper project in Arizona (the United

States). The Company owns Constancia mine, an open pit copper mine in Peru. It owns 777 mine, an underground copper,

zinc, gold and silver mine in Flin Flon, Manitoba. It owns Lalor mine, an underground zinc, copper and gold mine near

Snow Lake, Manitoba. It also owns Rosemont project, a copper development project in Pima County, Arizona, in the United

States.

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HudBay Minerals Inc.

HBM.TO on Toronto Stock Exchange

6.64 CAD; 4th of July 2016

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HudBay Minerals Inc. - Interim Income Statement

HudBay Minerals Inc

Interim Income Statement

[Standardized in USD Millions]

31-Mar-2016 31-Dec-2015 30-Sep-2015 30-Jun-2015 31-Mar-2015

Period Length 3 Months 3 Months 3 Months 3 Months 3 Months

Total Revenue 253,6 336,6 269,8 149,7 128,7

Cost of Revenue 225,7 277,8 227,8 145,5 115,7

Gross Profit 27,9 58,8 42 4,2 13

Exploration, Development and Mineral Property Lease 1,2 2,5 2,5 2,1 2,3

Selling, General and Administrative Expenses 8,3 7,6 3,1 10,1 9,5

Total Operating Expense 13,8 354,7 42,3 33,9 15,3

Total Expenses 239,5 632,9 270,1 179,4 131,1

Operating Income 14,2 -295,9 -0,3 -29,8 -2,3

Income Before Tax -16,9 -325,6 -16,1 -46 -11,5

Total Income Tax -1,1 -70,1 -4,3 -1,5 8,4

Income After Tax -15,8 -255,5 -11,8 -44,5 -19,8

Net Income -15,8 -255,5 -11,8 -44,5 -19,8

Net Income Available to Common Stockholders -15,8 -255,5 -11,8 -44,5 -19,8

EBITDA 80,6 -206,3 74,7 -1,9 14,3

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HudBay is a mining company, involved in the exploration and production of copper, zinc, gold and silver. The

company’s strong asset base and reserves and resources are its key strengths, even as limited liquidity position

remains an area of concern. Going forward, operational risks, stringent Canadian regulations and shortage of

skilled labor in Canada may impact the company’s performance. However, increasing demand for silver and gold

and strategic growth initiatives may provide new growth opportunities for the company.

Strong Asset Base

HudBay asset portfolio enables the company to increase its revenues. The company owns 100% interest in two material

mineral projects in Canada including 777 mine, an underground mine in Flin Flon, Manitoba and Lalor project, located near

Snow Lake, Manitoba. In addition, it owns a 70% interest in the Reed mine located near Snow Lake, Manitoba. The

company owns 100% interest in Constancia project in Peru. In addition, the company also includes other exploration

properties such as Tom and Jason project and Grassroots projects. HudBay also holds minority equity interest several

junior exploration companies, as part of its strategy to occupy a pipeline of projects with the potential for development. The

company’s early stage opportunity pipeline projects are located in Canada, the US, Chile, Peru and Colombia. Such strong

asset portfolio enables the company to expand its production.

Strong Reserves and Resources

Strong reserves and resources help the company to cater the increasing demand in the market. As of January, 2016, the

mine had total proven and probable mineral reserves of 6.3 million tonnes, at 1.8% Cu grade, 4.9% of Zn grade, 1.8 g/t

(Au) grade and 26.7 g/t silver (Ag) grade. Lalor project had total proven and probable mineral reserves of 15.3 million

tonnes, at 0.7% of Cu, 5.7% of Zn grade, 2.54 of Au (g/t) and grade of 25.2 Ag (g/t). Reed mine had total mineral reserves

of 1.2 million tonnes, at 4.1% of copper grade, 0.4% of Zn, 0.4 g/t of Au and 5.3 g/t of Ag. Constancia project the project

had total mineral reserves of 614 million tonnes at 0.3% of Cu, 93% of Mo(g/t), 0.05% of Au (g/t) and 2.3% of Ag (g/t).

Therefore, the company’s reserves and resources enhance its business operations and generate higher revenues.

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HudBay – Strategic Overview

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Limited Liquidity Position

HudBay's current ratio was 1.2 in FY2015. This was lower than its close competitors, Centerra Gold Inc. and Eldorado

Gold Corporation, with respective current ratios of 5.7 and 4.2. This suggests that the company is less able to meet its

short-term obligations than some of its peers. At the end of the review year, the company had total current assets worth

US$435.2 million, a decrease of 5.6%. Its total current liabilities stood at US$377.6 million, an increase of 1% over the

previous year. Its current portfolio of long-term debt or capital leases also increased from US$20.1 million in FY2014 to

US$75.6 million in FY2015. The company’s and liquidity position puts it at a disadvantage when funding any potential

opportunities in the market.

Strategic Growth Initiatives

HudBay supports growth across diversified portfolio through acquisition and integration of firms apart from organic growth.

In October 2015, the company and Northern Zinc, LLC signed a purchase agreement with Star Mountain Resources, Inc.,

whereby Star Mountain announced to acquire Balmat Holding Corporation. In June 2015, the company signed a three year

collective agreements with the members of United Steelworkers Local 7106 and USW Local 9338. Such strategic

acquisitions are likely to strengthen the company's position in the market, in turn increasing its revenues.

Increase in Demand for Copper

Increasing global demand for Copper may lead to a potential increase in demand for company’s products. According to in-

house sources, global demand for copper is expected to be fueled by countries such as China, India, Japan, Germany and

the US. China is currently the largest consumer of refined copper accounting for 40% of world consumption. Its

consumption is expected to increase from 8.5 Mt in 2015 to 10 Mt in 2020. Germany’s copper consumption is expected to

increase from 1.7 Mt in 2015 to 2.2 Mt in 2020. Copper consumption in Japan is expected to increase from 1.2 Mt in 2015

to 1.3 Mt in 2020. India’s copper imports are expected to increase from 4.2 Mt in 2015 to 5.2 Mt in 2020. Therefore,

HudBay mining may benefit from this growing demand by gaining new projects or increased business activities and

enhance its revenues.

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HudBay – Strategic Overview

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Increasing Demand for Gold

Increasing global demand for gold may lead to a potential increase in demand for company’s products. According to in-

house research, global demand for gold is expected to be fueled by countries such as China, India and the US. China is

the largest consumer of gold and its gold consumption is expected to increase from 47.8 million ounces in 2015 to 61.5

million ounces in 2020. India’s gold consumption is expected to increase from 40.6 million ounces in 2015 to 54.6 million

ounces in 2020. In the medium term, the rise in demand for refined gold from Asian countries is mainly expected from its

jewelry sector, with factors such as wealthy citizens and a supportive government playing major roles. HudBay is involved

in the exploration and mining of gold and hence may benefit from this growing demand by gaining new projects or

increased business activities and enhance its revenues.

Rising Demand for Silver

Increasing global demand for silver may lead to a potential increase in demand for mining activities offering significant

growth opportunities for the company. According to the Silver Institute, Silver industrial demand which is the major

component of total silver offtake is expected to expand its share of total demand in 2016. In addition, in 2015, the industrial

fabrication demand accounted for 54% of total physical silver demand. Moreover Silver’s use in photovoltaic’s for solar

energy is expected to increase in 2016 and exceed the 75.8 Moz (million ounces) which was set in 2011, due to increase in

solar panel installations globally. Silver’s use in this application is expected to account for over 13% of total silver industrial

demand in 2016. The demand for silver from producers of ethylene oxide (EO) is anticipated to increase by 25% to more

than 10 Moz in 2016 annually. This demand is expected to appear from establishment of new EO plants and expansions

primarily in China, which is expected to account for 80% of silver supplies for new EO capacity in 2016. Jewelry fabrication

is also expected to grow by 5% in 2016; and coin demand which accounted for 12% of the total physical demand of silver

with 130 Moz is also expected to increase in 2016. HudBay can consider diversifying its portfolio to cater to the rising

demand for silver, and increase its revenue.

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HudBay – Strategic Overview

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Disclaimer

The study is not intended as an offer to sell, or to solicit an offer to buy or form any basis of

investment decision for any class of securities of the company in any jurisdiction. All such

information should not be used or relied on without professional advice. The study is a brief

summary in nature and do not purport to be a complete description of the Company, its

business, its current or historical operating results or its future prospects.

This study contains forward-looking statements that involve risks and uncertainties. All

statements other than statements of historical facts are forward-looking statements. These

statements involve known and unknown risks, uncertainties and other factors that may cause

that actual results, performance or achievements to be materially different from those

expressed or implied by the forward-looking statements.

This study is provided without any warranty or representation of any kind, either expressed or

implied.