Los Andes Copper Ltd. · TSXV:LA
Los Andes Copper — Investor Presentation (February 2022)
29 slides from Los Andes Copper's investor presentation, Feb 10, 2022
Slide 1: Advancing Chile's Next Major Copper Mine
TS X-V:LA Advancing Chile's Next Major Copper Mine TSX-V:LA Corporate Presentation - February 10, 2022
Slide 2: Disclaimer
TSX-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: Los Andes Copper: World Class Copper on the Move
TSX-V:LA /3 LOS ANDES COPPER World Class Copper on the Move 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 Milestones Expansion The Company will be Dri
Slide 4: Copper Key to Chile - World Needs Chile Copper
TSX-V:LA /4 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 Senate President Balanced Royalty Increase Senate is balanced 50/50 Likely – Upgrade of leading to broadly Environment negotiated legislation St
Slide 5: Copper: The Essential Metal for Electrification
TSX-V:LA /5 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 6: Fundamentals of Los Andes Copper
TSX-V:LA FUNDAMENTALS OF /6 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 7: Corporate Update
TSX-V:LA Corporate Update /7 Major shareholders of Los Strengthened the Board Corinne Boone – Non-executive Director and Board Chair of the Environmental, Social, and Governance Committee Andes Copper (private) - 53% *Turnbrook Mining Ltd Warren Gilman – Non-executive Director Plan to continue to en
Slide 8: Directors
TSX-V:LA Directors /8 FERNANDO PORCILE, EDUARDO COVARRUBIAS, Executive Chairman Vice Chairman Mining Engineer from the University of Chile & MSc in Mineral Engineering from Industrial and Chemical Engineer from the Catholic University of Chile. MSc in Columbia University, NY. Over 50 years of experi
Slide 9: Vizcachitas in the Community
TSX-V:LA VIZCACHITAS IN THE COMMUNITY /10 Regular meetings Organized and Financed cost of with stakeholders participated in teachers in school and the public forums to in the nearby town community to discuss of Calle Larga inform them of the environmental Sponsored Putaendo’s project issues of inter
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 U S $4.6 billion NPV @ 5 % (post tax) Copper price 20.8% US$1.8 billion $3.00/lb NPV @ 8 % (post tax) IRR U S $3.2 billio
Slide 11: Significant Work Undertaken Since 2019 PEA
TSX-V:LA SIGNIFICANT WORK UNDERTAKEN SINCE /12 2019 PEA The 2 0 1 9 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.
Slide 12: 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 13: PFS Work in Progress
TSX-V:LA PFS Work in Progress /14 Area 2019 PEA 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 operatio
Slide 14: 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 15: Capital Cost Estimate
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 439,016 Direct c
Slide 16: Engineering Factors
TSX-V:LA /17 Engineering Factors Protection of the Environment Valley Location River Diversion Reduced Water and Energy Consumption Reduced Footprint
Slide 17: Located Along Chile's Most Prolific Copper Belt
TSX-V:LA /18 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 A
Slide 18: Surrounded by Mining Majors
TSX-V:LA /19 Surrounded by Mining Majors Vizcachitas Project 0 3 6 9 Km
Slide 19: Exploration - Clear Targets for Updated Mine Plan
TSX-V:LA Exploration - Clear Targets /20 for Updated Mine Plan Western Target Northern Target Eastern Target
Slide 20: Drilling Results February 2022
TSX-V:LA Drilling Results February 2022 /21 732 m of 0.51 Cu Eq further results pending
Slide 21: Further Upside in Vizcachitas' District
TSX-V:LA /22 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: Leveraged Exposure to Copper
TSX-V:LA /23 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 23: Undervalued Copper Developer
TSX-V:LA Los Andes Copper is undervalued on both a P/NAV and an UNDERVALUED COPPER DEVELOPER /24 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 StLocationage (M US$) (M US$) (M lbs CuEq) (M lbs CuEq) (US$/lb) US$/lb)
Slide 24: Advancing Development of Vizcachitas
TSX-V:LA A D V A N C I N G DEVELOPMENT O F VIZCACHITAS /25 Milestones Immediate path to increase value recognition Potential Commencement of commercial ENVIROMENT operations PER MITS AND 2027 Completion of CONST. DFS FUNDING 2024- Completion of 2023-24 2025 PFS Construction Drilling Results Q2-2022
Slide 25: Contact
TSX-V:LA LOS A N D E S COPPER /26 TSX-V: LA Contact R. Michael Jones, CEO BLYTHEWEIGH (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@losa
Slide 26: Appendix
Y > ¥ ee < Za Appendix LOS ANDES COPPERus.
Slide 27: Vizcachitas Mineral Resources
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 poun
Slide 28: Copper Market
COPPER MARKET 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 29: The outlook for copper will be significantly impacted by battery demand
The outlook for c o p p e r will b e significantly im pac 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 electric v
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