Slide 1: Optimized to Perform – Q2 2021 Results Webcast
OPTIMIZED TO PERFORM Q2 2021 RESULTS WEBCAST – July 28, 2021 Image: Pinto Valley Mine – Tailings Thickeners PV3 Optimization Work During the Quarter Included Substantial Upgrades to Tailings Thickeners to Increase Throughput and Water Recovery Capability
Slide 2: Today's Presenters
Today’s Presenters Darren Pylot Raman Randhawa Brad Mercer Jerrold Annett President & CEO SVP & CFO SVP & COO SVP, Strategy & Capital Markets 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
Darren Pylot President & CEO
Slide 6: 2020 Sustainability Report – Seeing Beyond
2020 Sustainability Report – Seeing Beyond • Fifth annual Sustainability Report. • Sustainability improvements play key role in our corporate strategy and long-term goal of creating value for shareholders. • Prepared in accordance with Global Reporting Initiative Standards (“GRI”), Core Option. • Do
Slide 7: Q2 2021 Results Summary
Q2 2021 Results Summary Q2 Cu Q2 C1 Cash Production Costs1 (Mlbs) Per Payable lb Cu Produced Pinto Valley 29.5 $2.33 Cozamin 13.8 $1.00 Total 43.3 $1.91 175 – 190 Cozamin Mine, Mexico 2021 Mlbs Cu Production Achieved record quarterly Cu production and reached run rate GUIDANCE $1.75 – $1.90 target f
Slide 8: Another Record Quarter for Capstone
Another Record Quarter for Capstone Adj. EBITDA (US$M) OCF (After-Tax) Before Changes in WC (US$M) $128 $119 (2) (1) $110 $95 $64 $65 $52 $45 $24 $11 $13 ($3) Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Adj. EPS (US$/sh) (Net Debt) / Net Cash (US$M) $0.17 $172 $0.16 $45 $
Slide 9: Q2 2021 Highlights – Setting New Records
Q2 2021 Highlights – Setting New Records CORPORATE • $172 million in net cash1 and debt free. Strong cash flow generation in H1 2021 in robust Cu price environment. • 43.3 million pounds Cu produced @ C1 cash costs1 of $1.91 per payable pound. • Adjusted net income1 of $68.7 million or $0.17 per sha
Slide 10: Strong Operating Performance Delivering Cash Flow
Strong Operating Performance Delivering Cash Flow OCF (After-Tax) Before Changes in WC (US$M) Note: Operating cash flow before changes in working capital (“OCF”) shown above excludes upfront payments for precious metal streams of $150M (Q1 2021), $30M (Q2 2021) and $180M (H1 2021). OCF is an alterna
Slide 11: Record Operating Cash Flow
RECORD Operating Cash Flow(1) … driven by record high realized copper prices of $4.78/lb Cu (1) Operating Cash Flow (US$M) LME Avg Cu Price (US$/lb) $150 $5.00 New Record (Q2/21) $140 $110M $4.50 $130 $120 Previous Record: $4.00 Operating Cash Flow(1) (US$M) $110 (Q1/21) $95M Copper Price (US$/lb) $
Slide 12: Balance Sheet is Growing to Finance Next Stage of Growth
Balance Sheet is Growing to Finance Next Stage of Growth Available Liquidity1 (US$M) 2021E-2023E Cash & ST Investments Cumulative After-Tax Operating Cash Flow1, 2 LONG TERM DEBT FREE RCF Capacity with $172 STRONG BALANCE $397 $225 ~$1,400 SHEET LIQUIDTY ~$1,200 • Capstone has pipeline of low capita
Slide 13: 2021 Consolidated Capital Guidance Update
2021 Consolidated Capital Guidance Update Original 2021 Guidance Revised 2021 Guidance CAPEX ($M) (January 2021) (July 2021) Sustaining capital1 $43 $55 Expansionary capital1 $20 $25 Stripping* $7 $12 Total Pinto Valley $70 $92 Sustaining capital1 $25 $25 Expansionary capital1 $13 $13 Total Cozamin
Slide 14: Santo Domingo Project Capital Estimate Update
Santo Domingo Project Capital Estimate Update Total Capex Cost Total Capex Cost • Labour Model is (US$ Millions) Variance adjusted, related (May 2021) (2018 Feasibility) amounts increased by Mine 7% 180 180 - Process Plant • Material cost increase of 330 315 15 5% related to more Tailing and Water R
Slide 15: Pinto Valley – Wrapping Up PV3 Optimization Project
Pinto Valley – Wrapping Up PV3 Optimization Project • Significant Q2 planned downtime for maintenance and Phase 2 PV3 Optimization work: Mill throughput of 49,170 tpd compared to Q3 2020 of 49,104 tpd where most of Phase 1 PV3 Optimization work was done. Wildfires in region during May and June had a
Slide 16: Phase 2 Work for PV3 Optimization Mostly Complete in July
Phase 2 Work for PV3 Optimization Mostly Complete in July Restart and ramp up of molybdenum production in H2 2021. Tailings thickeners upgrades expected to result in increased water recovery and higher throughput. Ball mill shell #3 replaced. Restart of Moly plant H Increased reliability and through
Slide 17: Cozamin Mine – Ramp-up Complete
Cozamin Mine – Ramp-up Complete • Mine expansion to targeted run rate complete. Mill throughput increased from 2,949 tpd in 2020 to 3,828 tpd in Q2 2021. • Higher Grades and Higher Recovery. Grades rose from 1.67% in Q2 2020 to 1.86% in Q2 2021 and copper recovery rose to 96.3% from 95.4% in Q2 2020
Slide 18: Santo Domingo Cobalt Feasibility Enters Phase 2 With Additional Drilling
Santo Domingo Cobalt Feasibility Enters Phase 2 With Additional Drilling Cobalt (in red) is High Recovery predominantly present in As Cobalt is contained pyrite crystals (in grey), within pyrite mineralization typical for IOCG ores in (~0.6% cobalt in pyrite Chile (microbe image of concentrate). Sa
Slide 19: Santo Domingo DL 600 Tax Stability Agreement
Santo Domingo DL 600 Tax Stability Agreement End-year of Specific Tax on Mining (Royalty) Stability Contracts • Santo Domingo remains attractive as the Cu-Fe Company End of Stability project is permitted and it retains a Decree Law Glencore Ended in 2018 600 (“DL 600”) tax invariability agreement, w
Slide 20: Catalysts and Scorecard
Catalysts and Scorecard Corporate • Debt free1 √ Q1 2021 • 2020 Sustainability Report – GRI Core option √ Published Q2 2021 • Sustainable 200 Mlbs Cu producer by 2022 On track Pinto Valley • Phase 2 PV3 Optimization √ Q3 2021 • Molybdenum production restart Ramp-up H2 2021 • Pyrite agglomeration Dec
Slide 21: Transformational Growth in 2024
Transformational Growth in 2024 Transformational copper production 2022-2023 ~200 Mlbs sustainable copper production 2024** growth with Santo Domingo Pinto Valley Cozamin Santo Domingo • PV4 study released; • Impact23 Growth Project • Cobalt feasibility released 500 $2.30 evaluating scenarios for re
Slide 22: Pinto Valley – Community Support
Pinto Valley – Community Support In June, regional wildfires in Arizona briefly disrupted road access to the Pinto Valley Mine. The mine was never at risk, but some neighbouring communities were forced to evacuate their homes and the Pinto Valley Mine played a key role to bring the fires under contr
Slide 23: 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