Arizona Sonoran Copper Co., Inc.
Arizona Sonoran Copper — Conference Presentation (February 2025)
32 slides from Arizona Sonoran Copper's conference presentation, Feb 13, 2025
Slide 1: American Copper for American Industry
ASCU:TSX ASCUF:OTCQX American Copper for American Industry Advancing the Cactus Project in Arizona Invest in Sustainability | February 2025
Slide 2: Cautionary Statements
2 Cautionary Statements Non-IFRS Financial Performance Measures This presentation contains certain non-IFRS measures, including sustaining capital, sustaining costs, EBITDA, C1 cash costs and AISC. The Company believes that these measures, together with measures determined in accordance with IFRS, p
Slide 3: Cautionary Statements
3 Cautionary Statements Forward-Looking Statements This presentation (including any accompanying commentary from the presenter) contains “forward-looking statements” and/or “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable securities legislat
Slide 4: Low Risk Copper Development in Tier 1 Location
4 Low Risk Copper Development in Tier 1 Location ֎ Robust after-tax economics outlined in 2024 PEA ֎ Open pit with low capital intensity ֎ Brownfield with well-developed infrastructure ֎ State-led streamlined permitting process ֎ Advancing to Pre-feasibility Study in 2H 2025 ASCU:TSX | ASCUF:OTCQX A
Slide 5: Capital Structure & Ownership
5 Capital Structure & Ownership CAPITAL STRUCTURE OWNERSHIP 9.9% Hudbay Market Capitalization C$306M 24% Nuton 7% Shares Outstanding (M) 148.4 Tembo Insitutional Options (M) 7.9 Management RSU’s (M)(1) 0.9 3% Float 23% DSU’s (M) 0.8 Including: Fully Diluted Share Capital (M) 158.0 Beedie Capital Kon
Slide 6: Mining-Savvy Management Team with Track Record of Execution
6 Mining-Savvy Management Team with Track Record of Execution George Ogilvie, P.Eng. Nick Nikolakakis, BASc, MBA Bernie Loyer Nick Hayduk, PRESIDENT, CEO & DIRECTOR SVP Projects VP FINANCE AND CFO VP CORPORATE DEVELOPMENT, +35 years of management, operating GENERAL COUNSEL & CORPORATE +40 years buil
Slide 7: Three Sophisticated Large Cap Corporate Endorsements
7 Three Sophisticated Large Cap Corporate Endorsements 2025 2025 2022 9.9% ownership Existing NSR purchase by 7.2% ownership and • Purchased for a 15% premium leading royalty company Option to Joint Venture to the 5-day VWAP • 2.5% NSR for US$55 million • Observer on the Technical • Observer on the
Slide 8: Review of 2024 – a Transformational Year
8 Review of 2024 – a Transformational Year ✓ No lost time incidents ✓ Financial strength with strong shareholder and corporate support, having raised ~C$59.2 million in October and November 2024, and January 2025 ✓ Successful updated Preliminary Economic Study (Aug 2024) at Cactus ✓ Exploration prog
Slide 9: Robust Organic Growth
9 Robust Organic Growth Growth since 2021 Updated MRE: MainSpring 352% M&I PEA (3Q24)* 86kstpa 94% Inferred 31-year LOM Pounds of Copper (millions) PFS (1Q24): * 3,839 Updated MRE: * 55kstpa Updated MRE: * Infill 21-year LOM Parks/Salyer Discovery UPDATE 2,208 2,208 2H 2025 PEA for IPO: * 28k stpa 1
Slide 10: Generational Open Pit Heap Leach and SX/EW Copper Operation (2024 PEA)
10 Generational Open Pit Heap Leach and SX/EW Copper Operation (2024 PEA) $3.90/lb $4.50/lb Cactus MRE, 2024 NPV8 (after-tax) $2,032 M $2,927 IRR (after-tax) 24% 30% Payback Period 4.9 yrs 4.5 yrs LOM FCF (unlevered) $7,295 M $9,777 M CAPEX $668 M $668 M 94% $2.00 /lb NPV:CAPEX 3.0x 4.4x Open Pit AI
Slide 11: Efficient Development in Casa Grande
11 Efficient Development in Casa Grande Safe Jurisdiction and In Place Infrastructure Water Power Roads / Railroad Permitting • Onsite permitted • Opportunity to use • Easy access from • Known State-led water access to 100% clean nuclear onsite rail and road permitting structure non-potable water en
Slide 12: Momentum, Growth and Accumulation: Trading 0.21x PNAV and $0.024 EV/lb
12 Momentum, Growth and Accumulation: Trading 0.21x PNAV and $0.024 EV/lb RGLD buys February 12, 2024 – February 12, 2025 Existing NSR $2.50 Feb 13 HBM/Nuton $2.00 PP Closes Jan 31 $1.50 $1.00 $34.5 Bought 2024 MRE 2024 PEA BCE NSR July 16 August 7 Deal Closes Oct 9 Buy-back HBM PP $0.50 Jan 3 Annou
Slide 13: Continuing the Momentum in 2025
Continuing the Momentum in 2025
Slide 14: 2025 Drilling Programs
14 Minimum of 130,000 ft of Drilling • 2025 Drilling Programs CACTUS EAST • PFS Drilling • Total infill to indicated drilling: 130,000 ft (39,624 m) • Parks/Salyer and Cactus West PARKS/SALYER • DFS Drilling • To be determined by QP’s Measured post-PFS Indicated Inferred 5,720 acres See ASCU’s press
Slide 15: The Scope is Set – Moving to PFS in 2025
15 The Scope is Set – Moving to PFS in 2025 Preliminary Definitive Mineral Pre-Feasibility Construction Economic Feasibility Resource Study Decision Assessment Study Advancing Technical Studies: • Continuing with technical study work initiated in 2024, that feeds into the 2025 PFS • Continuing with
Slide 16: 2025 PFS-level Engineering informs Land and Permits
16 2025 PFS-level Engineering informs Land and Permits Permits • Fully-permitted as per the 2021 PEA • Permit applications to begin in H2 2025, upon completion of 2025 PFS engineering Land • Final land payment of US$6 million to finalize the MainSpring acquisition completed on January 31 Major Requi
Slide 17: Clear Next Steps at the Cactus Project
17 CLEAR NEXT STEPS AT THE CACTUS PROJECT Near Term Construction Decision for Onsite Cathode Production 2024 2025 2026 2028/2029 Mineral Resource Estimate H2-2025 Mineral Resource Complete DFS First Cathode Update Update Production 3Q24 Preliminary Economic H2-2025 Complete Prefeasibility Constructi
Slide 18: Financing Discussions
18 Financing Discussions • Appoint a Project Financing Financial Advisor in H1 2025 • Favourable economics supportive of debt financing for initial capital • Industry leading NPV:CAPEX: 3.0x • Strong IRR: 24% • Robust Cash Flows After Tax (Years 1-10): $2.0B • Long life asset of 30+ years with LOM c
Slide 19: Enterprise Value to M&I Resource
19 Enterprise Value to M&I Resource Peer Benchmarking – Enterprise Value / M&I Copper Equivalent Resources(1) (US$/lb) $0.496 Updated MRE lowers ASCU execution risk $0.183 Total Mineral Resource: $0.123 M&I 7,295 Mlbs Inf 3,840 Mlbs Avg. EV / M&I CuEq: $0.0713 $0.085 $0.066 $0.037 $0.024 $0.024 $0.0
Slide 20: Benchmarking ASCU Relative to Americas Copper Development Projects
20 Benchmarking ASCU Relative to Americas Copper Development Projects Single Asset Arizona Developers Americas Developers Other Arizona Projects Market Capitalization (US$M) $225 $748 $108 $390 $199 $216 $3,570 $655 P/NAV Multiple(2) 0.2x 0.5x 0.3x 0.6x 0.6x 0.2x 1.0x 0.6x Cactus Santa Cruz Copper C
Slide 21: Junior Copper Producer Benchmarking (Enterprise Value and Production)
21 Junior Copper Producer Benchmarking (Enterprise Value and Production) 600 $7,000 180 $5,939 $6,000 2024 PEA 150 Annual Production(1) (Mlbs CuEq) $5,000 $4,374 120 $4,000 EV (US$M) $3,273 90 $3,000 $1,922 60 $2,000 $1,041 $988 $1,000 30 $641 $484 $235 $175 $0 0 Capstone Hudbay Minerals Sandfire (2
Slide 22: Cactus: A Meaningful Potential Contributor to U.S. Copper Production
22 Cactus: A Meaningful Potential Contributor to the U.S. Copper Production Mine County and State Owner Operation Freeport (72%) 1 Morenci Greenlee, Arizona Open Pit Sumitomo (28%) Bingham Long Hole Stoping, 2 Salt Lake, Utah Rio Tinto Canyon Open Pit, SL Stoping 3 Safford Graham, Arizona Freeport-M
Slide 23: Favourable Jurisdiction with Strong Trending Fundamentals
23 Favourable Jurisdiction with Strong Trending Fundamentals THE CACTUS PROJECT A domestic project, with potential cathode sales directly into the US supply chain • Political and regulatory environment increasingly supportive for new mining projects in the US • US focus on securing critical metals •
Slide 24: Leading Copper Developer in the United States
24 Leading Copper Developer in the United States GROWTH HIGH VALUE • 86 kstpa Copper Cathodes LOW RISK 172 Mlbspa Large Copper Porphyry Project 31 years LOM production Brownfield (Low Capital) Management Open Pit • NPV8 $2,032 million Tier 1 Location Permitting Future Opportunities • IRR 24% Social
Slide 25: Contact
Alison Dwoskin, CPIR George Ogilvie, P.Eng Director, Investor Relations President, CEO & Director adwoskin@arizonasonoran.com gogilvie@arizonasonoran.com +1 (647) 233-4348 (cell) +1 (416) 723-0458 (cell) www.arizonasonoran.com | www.cactusmine.com
Slide 26: Appendix
Appendix
Slide 27: Journey Towards Net Zero - Partnership with Minviro
27 Journey Towards Net Zero - Partnership with Minviro 205 PFS / 2026 DFS PRODUCTION AND REPORTING Construction • Design parameters used to scope impact • Establishing reporting KPIs • Investment in low carbon technologies and minimizing • GHG inventory assessment (Scope 1, 2 • Reporting to internat
Slide 28: ESG – Setting the Pace for Net Zero Carbon Emissions
28 ESG – Setting the Pace for Net Zero Carbon Emissions ASCU is actively exploring use of renewable energy for its operations with the goal of becoming a “Net Zero Carbon Emissions” copper producer Ability to also reduce carbon footprint by Arizona Public Service’s transition to renewable resources
Slide 29: Reactivating a Brownfields Property Using New Technologies
29 Reactivating a Brownfields Property Using New Technologies ASARCO Sacaton ARIZONA SONORAN COPPER COMPANY Production of primary sulphides using US$20M Remediation Heap leach and SXEW operation considered flotation mill Complete 2019 2019- Next 1964 1974 1984 2022 2023 2024 2021 Steps Sacaton Produ
Slide 30: Cactus Project Mineral Resource Estimate
30 Cactus Project Mineral Resource Estimate Material Tons Grade Grade Contained Contained Type kt CuT % Cu Tsol % Total Cu (k lbs) Cu Tsol (k lbs) Measured Total Leachable 55,200 0.94 0.79 1,032,200 873,800 Total Primary 12,300 0.51 0.05 124,400 13,400 Total Measured 67,500 0.86 0.66 1,156,500 887,2
Slide 31: Notes to the Mineral Resource Estimate
31 Notes to the Mineral Resource Estimate NOTES: 1. Total soluble copper grades (Cu TSol) are reported using sequential assaying to calculate the soluble copper grade. Tons are reported as short tons. 2. Stockpile resource estimates have an effective date of 1st March, 2022, Cactus mineral resource
Slide 32: Sulphide Optionality: Nuton Potential Ownership and Timeline
Sulphide Optionality: 32 Nuton Potential Ownership and Timeline Fits in ASCU Timeline 2024 2025 2026 • Work program with Nuton • Complete Phase 2 met program • Completion of Nuton PFS • Infill drilling at Cactus West • PFS to include MainSpring • Potential exercise of option by Nuton • Phase 2 metal
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