Slide 1: Q3 2020: Growth and Innovation
Q3 2020: GROWTH AND INNOVATION OCTOBER 2020
Slide 2: Participants On Today's Call
Participants On Today’s Call Darren Pylot Raman Randhawa Brad Mercer Mike Wickersham Jerrold Annett President and CEO SVP and CFO SVP, Exploration and Mine GM, Pinto Valley VP, Strategy and Operations Capital Markets CAPSTONE MINING (TSX:CS) • 2
Slide 3: Cautionary Notes
Cautionary Notes CAUTIONARY NOTE ON FORWARD LOOKING INFORMATION COMPLIANCE WITH NI 43-101 This document may contain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the Unless otherwise indicated, Capstone has prepared the te
Slide 4: Q3 2020 Results
Q3 2020 Results Copper production (million pounds) Q3 2020 YTD 2020 2020 CONSOLIDATED Pinto Valley 27.9 84.9 GUIDANCE ON TRACK Cozamin 10.6 27.6 Total 38.5 112.5 C1 cash costs1 ($/lb.) produced 140 – 155 million pounds of copper production Pinto Valley $2.38 $2.30 Cozamin Consolidated $0.36 $1.82 $0
Slide 5: Safety Performance
Safety Performance Consolidated Safety Performance KEY INITIATIVES 3.00 • Health Clinic established at Pinto Valley in June 2017 improving case management 2.50 • Ongoing training at all levels "Values in Action" and "Leadership in Action" Frequency (/200k hours) 2.00 • Reward Points System encourage
Slide 6: 2020 Value Drivers
2020 Value Drivers Completed This Year On Target Relaunched ESG-sustainability reporting ~40% copper and ~20% silver equivalent production growth and ~20% lower costs by 2023 Pinto Valley safely completed 60% of Phase 1 PV3 Optimization towards expected 10% production Cozamin underground exp
Slide 7: Q3 2020 Financial Results and Balance Sheet Strength
Q3 2020 Financial Results and Balance Sheet Strength FINANCIAL OVERVIEW Q3 2020 YTD 2020 (US$ millions) $51.6 Revenue 130.5 305.6 million Net income (loss) 2.3 (15.3) Adjusted EBITDA1 Adjusted net income (loss)1 9.5 (8.7) Q3 2020 Adjusted EBITDA from continuing 51.6 75.7 1.62x operations1,2,3 net de
Slide 8: Sensitivity to Higher Copper Prices
Sensitivity to Higher Copper Prices Sensitivity Analysis ($ millions) 2021E 2022E 2023E EBITDA Cu $3.00/lb, Ag $22.00/oz $215 $300 $315 Cu $3.25/lb, Ag $22.00/oz $260 $350 $370 Cu $3.00/lb, Ag $24.50/oz $220 $307 $322 EBITDA Sensitivity Copper +/- $0.25/lb $45 $50 $55 Silver +/- $2.50/oz $5 $7 $7 CA
Slide 9: Optimization, Innovation and Expansion at Pinto Valley
Optimization, Innovation and Expansion at Pinto Valley Umut Erol, Metallurgy, Lab and Process Control Superintendent, Pinto Valley
Slide 10: Targeting Higher Throughput AND Higher Recovery
Targeting Higher Throughput AND Higher Recovery MINE INNOVATION: Blast fragmentation to target 30% fines (minus ½”). Tele-remote dozer to increase worker safety for high risk applications. Capital of $250k. New mine equipment to increase efficiency while lowering diesel consumption and GHG emissi
Slide 11: PV3 Optimization – From Start to Finish
PV3 Optimization – From Start to Finish 1 A focus on return on 2 incremental 5 8 invested capital, 7 3 9 while improving environmental and safety 10 4 performance 6 1. Blast fragmentation optimization, new mine equipment 6. Molybdenum plant re-start 2. Tele-remote dozer 7. *UNDER REVIEW* Pilot plant
Slide 12: Pilot Plant Testing Coarse Particle Flotation Technology
Pilot Plant Testing Coarse Particle Flotation Technology Opportunity to Increase Overall Copper Recovery by 6% Copper Losses Distribution Before and After HydroFloat Laboratory Results by Eriez Flotation 60 50 40 % Copper Losses 30 20 10 Eriez Flotation, a world leader in innovative flotation techno
Slide 13: Pinto Valley: An Exciting Future
Pinto Valley: An Exciting Future A long-life, multi-generational mine currently focused on innovation 2039+ and optimization to surface value for our stakeholders 2022-2023 ~20 years mine life with extension and PV4 Expansion Study production 2021 PV4 Expansion evaluating expansion potential scenari
Slide 14: Cozamin: Safer, Greener and Higher Grade
Cozamin: Safer, Greener and Higher Grade
Slide 15: Q3 2020: Lowest Quarterly C1 Costs in Cozamin's History
Q3 2020: Lowest Quarterly C1 Costs1 in Cozamin’s History 14,000 $2.50 Q3 2020 C1 cash costs1 12,000 $0.36 per pound $2.00 C1 cash costs net of by-products 10,000 Mlbs Copper Production $1.50 8,000 6,000 $1.00 4,000 $0.50 2,000 - $- Mlbs C1 Cost 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 16: Cozamin 2021 Catalysts
Cozamin 2021 Catalysts One-Way Haulage Loop Only 31 vertical meters until completion in early December 2020. Ramp up to 1.35 tonnes milled per annum by Q2 2021 on time and budget. Paste Backfill and Dry PFS of an underground paste backfill system targeting the extraction of up to 3.5 million tonnes
Slide 17: A Major Step-Forward For Santo Domingo
A Major Step-Forward For Santo Domingo Sept 16, 2020: Capstone Enters into MOU with Puerto Ventanas S.A. for Rail and Port Facilities at Santo Domingo
Slide 18: Santo Domingo in the Middle of a Growing Mining District
Santo Domingo in the Middle of a Growing Mining District ~1,000m above sea level REGION III, CHILE 20 km (TSX:CS) • 18
Slide 19: Unlocking the Santo Domingo Opportunity
Unlocking the Santo Domingo Opportunity Significant De-Risking Capital Spend for Santo Domingo Illustrative Pathway to Financing Santo Domingo 1. Fixed capital costs, turn-key proposal from Posco E&C for mine site Santo Domingo Financial Plan $ Millions infrastructure at below Feasibility estimates
Slide 20: 170% EBITDA Growth at $3 Copper
170% EBITDA Growth at $3 Copper >20% silver 170% EBITDA GROWTH AT ~40% copper ~20% lower equivalent production growth C1 cash costs $3.00 COPPER production growth $310 Million $285 Million ~2.7 ~210 ~2.6 Moz ~$1.85 ~200 Mlbs Moz to ~180 Mlbs ~2.0 $2.00 $210 Mlbs ~$1.75 ~140-155 ~1.8 Moz Million Mlbs
Slide 21: 2024 Can Be Transformational
2024 Can Be Transformational 375 Mlbs SANTO DOMINGO 50% of Santo Domingo’s expected production after 200 Mlbs 210 Mlbs first shipment equates to 180 Mlbs an additional 165 million 148 Mlbs pounds of production 2020E 2021E 2022E 2023E 2024E CAPSTONE MINING (TSX:CS) • 21
Slide 22: Appendix
APPENDIX CAPSTONE MINING (TSX:CS) • 22
Slide 23: Pinto Valley Reserves & Resources
Pinto Valley Reserves & Resources COPPER Total Proven & Probable Cu Mineral Reserve 1.24 Mt contained metal (399 Mt @ 0.31% Cu) Total Measured & Indicated Cu Mineral Resource 4.13 Mt contained metal (1,357 Mt @ 0.30% Cu) Measured Cu Mineral Resource 1.89 Mt contained metal (567 Mt @ 0.33% Cu) Indica
Slide 24: Cozamin Reserves & Resources
Cozamin Reserves & Resources COPPER Total Proven & Probable Cu Mineral Reserve 182 kt contained metal (10,178 kt @ 1.79% Cu) Total Measured & Indicated Cu Mineral Resource 430 kt contained metal (27,459 kt @ 1.57% Cu) Inferred Cu Mineral Resource 106 kt contained metal (16,558 kt @ 0.64% Cu) SILVER
Slide 25: Santo Domingo Reserves & Resources
Santo Domingo Reserves & Resources COPPER EQUIVALENT Total Measured & Indicated CuEq Mineral Resource 537 Mt @ 0.52% CuEq Inferred CuEq Mineral Resource 48 Mt @ 0.41% CuEq COPPER Total Proven & Probable Cu Mineral Reserve 1,167 kt contained metal (392.3 Mt @ 0.30% Cu) Total Measured & Indicated Cu M
Slide 26: Contact Information
Contact Information GENERAL INQUIRIES MEDIA AND INVESTOR INQUIRIES Capstone Mining Corp. Jerrold Annett Suite 2100 – 510 West Georgia Street Vice President, Strategy & Capital Markets Vancouver, BC V6B 0M3 Suite 2700 – 161 Bay Street Toronto, ON M5J 2S1 www.capstonemining.com 1-416-572-2272 in