Los Andes Copper Ltd. · TSXV:LA
Los Andes Copper — Investor Presentation (April 2022)
26 slides from Los Andes Copper's investor presentation, Apr 21, 2022
Slide 1: Advancing Chile's Next Major Copper Mine
TSX-V:LA Advancing Chile's Next Major Copper Mine 1 TSX-V:LA Corporate Presentation April 21, 2022
Slide 2: Disclaimer
TS-V:LA /2 Disclaimer Certain of the information and statements contained in this presentation constitute “forward-looking information” within the meaning of applicable securities laws. Forward-looking information is often, but not always, identified by the use of words such as: “believe”, “expect”,
Slide 3: Located Along Chile's Most Prolific Copper Belt
TSX-V:LA /3 Located Along Chile's Most Prolific Copper Belt Proven & Measured & Inferred Probable Indicated Project Reserves Resources Resources Cu lb billions Cu lb billions Cu lb billions Los Pelambres 15.0 39.2 28.6 Los Bronces 16.4 8.8 27.9 Rio Blanco-Andina 20.3 81.1 217.4 Costal Range Block El
Slide 4: Los Andes Copper: World Class Copper, 100% Owned
TSX-V:LA /4 LOS ANDES COPPER World Class Copper 100% Owned Advancing Leverage Los Andes owns a Significant Leverage to 1 0 0 % interest in a Copper with 13 Billion World Class Copper Pounds CuEQ Measured Asset that is advancing and Indicated Resource NOW TOWARDS PFS RARE Expansion NO STRATEGIC Drill
Slide 5: Copper Key to Chile - World Needs Chile Copper
TSX-V:LA Copper Key to Chile - World Needs Chile Copper 10% of GDP 30% of Copper has a Key World Cu Economic Place in Chile World Needs Chile copper New President Senate Royalty Increase – Balanced Reasonable Proposal Recently, Upgrade Senate is balanced 50/50 leading to broadly of Environment negot
Slide 6: Copper: The Essential Metal for Electrification
TSX-V:LA /6 COPPER: THE ESSENTIAL METAL FOR ELECTRIFICATION Electrification is coming Renewables need more copper Global shift to urbanization requires copper Copper is getting harder to find and develop
Slide 7: Fundamentals of Los Andes Copper
TSX-V:LA FUNDAMENTALS OF /7 LOS ANDES COPPER Tier 1 in the best copper belt Chile is a mining country 2019 P EA estimated an Large resource base with and one of the best mining competitive grade and after tax NPV (@8%) of US$ jurisdictions in the world clean mineralization 2.7 Billion at long term c
Slide 8: Corporate Update
Corporate Update / Strengthened the Board Major shareholders of Corinne Boone – Non-executive Director and Board Chair of the Los Andes Copper Environmental, Social, and Governance Committee Warren Gilman – Non-executive Director Other Management Team Strengthened R Michael Jones CEO 33% Sanitago Mo
Slide 9: Vizcachitas in the Community
TSX-V:LA /10 VIZCACHITAS IN THE COMMUNITY Organized and Together with the local chamber of Regular meetings participated in commerce, provided sanitary kits public forums to to the community during the with stakeholder discuss pandemic community to inform them of the environmental Working in the dev
Slide 10: Solid Economics Supporting the Project
SOLID ECONOMICS 2significantly TSX-V:LA /11 0 1 9 PEA economics upgraded (base SUPPORTING THE PROJECT case 1 1 0 ktpd mill) 26.7% US$2.7 billion $3.50/lb NPV @ 8 % (post tax) IRR US $4.6 billion NPV @ 5 % (post tax) Copper price 20.8% US$1.8 billion $3.00/lb NPV @ 8 % (post tax) IRR US $3.2 billion
Slide 11: Undervalued Copper Developer
TSX-V:LA / Los Andes Copper is undervalued on both a P/NAV and an UNDERVALUED COPPER DEVELOPER EV/Resource basis relative to the peer set location. Company Price [1] Market Cap [2] TEV M&I Total M&I Total NAV [3] P/NAV Stage Location (M US$) (M lbs CuEq) (M lbs CuEq) (US$/lb) US$/lb) (M US$) (Local
Slide 12: Significant Work Undertaken Since 2019 PEA
TSX-V:LA SIGNIFICANT WORK UNDERTAKEN SINCE /12 2019 PEA The 2019 PEA provided a conceptual plan for developing an economic open pit operation at Vizcachitas: US$2.7bn NPV and 2 6 . 7 % I R R US$1.9bn initial capex PEA pricing assumption: Current Price: Copper US$3.5/lb US$4.2/lb Molybdenum US$22.0/k
Slide 13: The PFS Plan: Update Project Economics
TSX-V:LA /13 The PFS plan: Update project Economics Materially de-risk the operation technically Design Project incorporating leading environmental principles of sustainable mining Reduced Energy Costs Because of P FS optimizations in the flow of all materials going Freeing up Area downstream and fr
Slide 14: PFS Engineering Changes
PFS ENGINEERING TSX-V:LA /14 CHANGES Topic PEA 2019 2022E PFS Impact Lower energy consumption Processing SAG Mill HPGR circuit Enhanced project economics grinding circuit Operational flexibility Reduced water and energy consumption Tailings Facility Thickened Filtered dry- Reduced footprint and oper
Slide 15: Advancing Development of Vizcachitas: Milestones
TSX-V:LA A D V A N C I N G DEVELOPMENT O F VIZCACHITAS Milestones Immediate path to increase value recognition Potential Commencement of commercial ENVIROMENT operations PERMITS AND 2027 Completion of CONST. DFS FUNDING 2024- Completion of 2023-2024 2025 PFS Construction Drilling Q4-2022 2025 - 2027
Slide 16: Key Advantages
KEY Advantages TSX-V:LA /15 Advantageous location - excellent access to infrastructure 2,000 m Elevation Low elevation, mild climate conditions 120 km Port Railway line from San Felipe to Ventanas concentrate smelter & port S a n Felipe 45 - 85 km Towns Towns and cities with skilled mining labour fo
Slide 17: Capital Cost Estimate
TSX-V:LA /16 Initial Sustaining 45 yr LOM Description 1 1 0 ktpd 1 1 0 ktpd Capital Direct Costs Diversion Rocin River 52,912 2,500 Cost Access 29,731 Concentrate Transport 29,932 Pipeline Rocin-Chalaco Estimate General Facilities 35,000 Operations Platform 35,145 Mine 277,465 1,025,196 Plant 439,01
Slide 18: Leveraged Exposure to Copper
TSX-V:LA /17 LEVERAGED EXPOSURE TO COPPER C1 Cash Costs – US$1.36 /lb average US$1.8 billion after-tax NPV (8%) at $3.0 /lb Copper US$2.7 billion after-tax NPV (8%) at $3.5 /lb Copper C1 cash cost for the first 8 years of NPV (kUS$) Sensitivity Analysis – production Copper Price Variation (After Tax
Slide 19: Engineering Factors
TSX-V:LA /18 Engineering Factors Protection of the Environment OPPORTUNITY TO DESIGN A CLEAN GREEN MINE Reduced Footprint Valley Location River Diversion Reduced Water and Energy Consumption
Slide 20: Surrounded by Mining Majors
TSX-V:LA /19 Surrounded by Mining Majors Vizcachitas Project 0 3 6 9 Km
Slide 21: Further Upside in Vizcachitas' District
TSX-V:LA /20 FURTHER UPSIDE IN VIZCACHITAS’ DISTRICT Vizcachitas has a substantial land holding (308 km2) of which only a small portion has been properly explored Geological mapping and geophysics have identified drill ready targets to north of current mineral resource
Slide 22: Appendix
Appendix LOS ANDES COPPERus.
Slide 23: Vizcachitas Mineral Resources
/25 VIZCACHITAS MINERAL RESOURCES (effective d a t e 5 June 2019) Measured and Indicated Copper Resource of 1.28 billion tonnes at a copper grade of 0 . 4 0 % and a copper equivalent grade of 0 . 4 5% Measured a n d indicated: Measured and Indicated Copper Resource increased 3 1 . 2 % 11.2 billion p
Slide 24: Copper Market
COPPER MARKET /26 C o p p e r value chain – A widening market deficit is looming The widening market deficit in the copper sector will put further pressure on price Copper Supply and Demand (million tonnes) Source : Hannam Partners
Slide 25: Outlook for Copper Impacted by Battery Demand
The outlook for c o p p e r will b e significantly /27 i m p a c te d by battery d e m a n d EVs will drive a modest According to supply-demand deficit Hannam, an EV needs between 2021-2024, then c.80kgs of copper, this is c.4 from 2025 demand will times more than a Cumulative copper demand from ele
Slide 26: Contact
TSX-V:LA LOS A N D E S COPPER /23 TSX-V: LA Contact R. Michael Jones, CEO BLYTHERAY (Financial PR) rmj@losandescopper.com Tim Blythe tim.blythe@blytheweigh.com Harry Nijjar, CFO harry.nijjar@losandescopper.com Megan Ray megan.ray@blytheweigh.com Antony J. Amberg, Chief Geologist antony.amberg@losand
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