Slide 1: Q4/YE 2021 Results Conference Call – February 16, 2022
Q4/YE 2021 RESULTS Conference Call – February 16, 2022 Upgrades to Pinto Valley’s tailings thickeners in 2021 have enabled higher water recycling and lower overall water consumption
Slide 2: Today's Presenters
Today’s Presenters Darren Pylot Raman Randhawa CEO SVP & CFO Wendy King Cashel Meagher SVP ESG, General Counsel President & COO & Corporate Secretary Jerrold Annett Brad Mercer SVP Strategy & Capital SVP Exploration & Strategic Markets Projects CAPSTONE MINING (TSX:CS) • 2
Slide 3: Cautionary Notes
Cautionary Notes CAUTIONARY NOTE ON FORWARD LOOKING INFORMATION This document may contain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (col
Slide 4: Cautionary Notes
Cautionary Notes CAUTIONARY NOTE TO UNITED STATES INVESTORS REGARDING PRESENTATION OF MINERAL RESERVE AND MINERAL RESOURCE ESTIMATES As a British Columbia corporation and a “reporting issuer” under Canadian securities laws, we are required to provide disclosure regarding our mineral properties in ac
Slide 5: Darren Pylot, CEO
Darren Pylot CEO President & CEO Ore conveyor from fine crushing plant - Pinto Valley
Slide 6: Q4/FY 2021 Operating Results Summary
Q4/FY 2021 Operating Results Summary Q4 Cu Q4 C1 Cash YE 2021 Cu YE C1 Cash Production Costs1 Production Costs1 (Mlbs) (Mlbs) US$ Per Payable Quality Safety Interactions - Focus on US$ Per Payable lb Cu Produced trust-building has led to measurable lb Cu Produced safety culture improvement with Zero
Slide 7: Summary of Record Financial Results
Summary of Record Financial Results Q4 2021 FY 2021 Record $241.6 million, or Adjusted Net Income1 $73.2 million, or $0.18/sh $0.58/sh Adjusted EBITDA1 $113.4 million Record $432.2 million Operating Cash Flow2 $104.9 million Record $376.3 million $264.4 million at YE 2021 Net Cash1 Grew by $56.2 mil
Slide 8: Record Annual Operating Cash Flow Generation
RECORD ANNUAL Operating Cash Flow1 Generation … … enhanced by a record high realized copper price of $4.42/lb Cu in 2021 $400 $376 M $4.50 $350 $4.00 $3.50 $300 Avg LME Price US$/lb Cu $3.00 OCF US$ millions $250 $2.50 $200 $2.00 $150 $1.50 $100 $1.00 $50 $0.50 $0 $0.00 2008 2009 2010 2011 2012 2013
Slide 9: Q4 EBITDA & EPS versus Consensus
Q4 EBITDA & EPS versus Consensus Q4 Financials impacted by the following… • Sales Lag – Payable copper sales of 46.8M vs Payable copper production of 49.8M lbs which would have increased Strong EBITDA Generation EBITDA by $8m • Lower C1 costs and higher copper prices – consolidated $140M $12.00 $128
Slide 10: Balance Sheet Strength to Finance Transformational Growth
Balance Sheet Strength to Finance Transformational Growth Available Liquidity (US$M) Combination with Mantos Copper LT DEBT FREE Cash & ST to Deliver a Steady Growth Profile Investments with RCF Capacity 2022-2024 EBITDA* STRONG $225 ~$1,600 2022 2023 2024 BALANCE SHEET $489 $264 ~$1,400 LIQUIDTY ~$
Slide 11: 2021 Was a Transformational Year for Capstone
2021 Was a Transformational Year for Capstone +21% Copper Price +48% Gross US$/lb. Margin % $4.42 $2.99 59% 38% 2020 2021 Production +19% Mlbs. 2020 2021 187.1 +209% 156.9 EBITDA US$M 2020 2021 C1 Cash -2% Costs1 $430 US$/lb. $1.84 $1.81 $139 2020 2021 2020 2021 1. 2021 C1 Cash Costs were impacted b
Slide 12: Cost Containment Strategies
Cost Containment Strategies Pinto Valley • Price fixing a large portion of expected diesel consumption for 2021 and 2022 has resulted in cost savings of $6.3 million during 2021. • At current diesel prices expected savings of approximately $4.5 million in 2022. • Ramp up of the Molybdenum production
Slide 13: Pinto Valley – Record Quarterly Mill Throughput
Pinto Valley – Record Quarterly Mill Throughput • Record average quarterly mill throughput of 58,500 tpd during Q4 2021 following completion of PV3 optimization ($31 million project). • Produced 37.1 Mlbs Cu at $2.00/lb in Q4 2021 and 133.3 Mlbs Cu at $2.16/lb in FY 2021. • Generated $270 million in
Slide 14: Copper Cities – Potential for District Scale Operations
Copper Cities – Potential for District Scale Operations • 18-month access agreement with BHP to conduct drill and metallurgical test work at Copper Cities Project (~10km east of Pinto Valley). • $6.7 million 2-phase drill program underway aims to twin historical drill holes. • A portion of these sam
Slide 15: Cozamin – A Record Year
Cozamin – A Record Year • Produced 14.5 Mlbs Cu at $0.99/lb in Q4 2021 and 53.8 Mlbs Cu at $0.96/lb in FY 2021. • 2021 production up 42% from 2020 due to higher grades and higher mill throughput. • Annual operating cash flow1,2 of $127.1 million. • Dry stack tailings and paste backfill facility cons
Slide 16: Santo Domingo Project Update
Santo Domingo Project Update • Capstone and port partner, Puerto Ventanas, have executed early works within the scope of the framework agreement (flora & fauna release complete, archeological release ongoing, marine drilling campaign to start in March 2022). • Drilled over 16,000 meter of PQ core fo
Slide 17: ESG Q4 Update
ESG Q4 Update • Continued to develop the Capstone ESG Strategy. Strategy • Committed to developing our Company-wide carbon reduction strategy and target setting in 2022 and commence TCFD reporting. • Cozamin filtered tailings and paste backfill plant construction commenced. Environment • Pinto Valle
Slide 18: Capstone/Mantos Transaction – Update
Capstone/Mantos Transaction – Update ISS and Glass Lewis recommend to vote FOR the transaction. January 14 Record date February 24 Proxy voting March/April Transaction @10:00 am PT cut-off 2022 Closing Capstone Copper Integration Shareholders Monday Nov 30 Transaction February Meeting Materials Febr
Slide 19: Capstone Copper Competitive Advantage
Capstone Copper Competitive Advantage • Senior leadership continuity and deepening bench strength with extensive People mine building and operating experience • Over 4,000 employees and contractors with complementary skill sets • Fully-permitted, multi-staged copper production growth of over 45% by
Slide 20: Contact Information
Contact Information GENERAL INQUIRIES MEDIA AND INVESTOR INQUIRIES Capstone Mining Corp. Jerrold Annett Suite 2100 – 510 West Georgia Street Senior VP, Strategy & Capital Markets Vancouver, BC V6B 0M3 1-647-273-7351, Toronto, ON www.capstonemining.com Kettina Cordero info@capstonemining.com Director