Slide 1: Q1 2020 Results
Q1 2020 RESULTS APRIL 2020
Slide 2: 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 Unless otherwise indicated, Capstone has prepared the technical information in
Slide 3: Participants On Today's Call
Participants On Today’s Call Darren Pylot Raman Randhawa Brad Mercer Mike Wickersham President & CEO CFO SVP, Exploration Mine General Manager, and Operations Pinto Valley CAPSTONE MINING (TSX:CS) • 3
Slide 4: Q1 2020 Results Summary
Q1 2020 Results Summary Copper Production C1 Cash Costs1 (million pounds) Per Pound Payable Produced Pinto Valley 26.8 $2.41 Cozamin 8.7 $0.95 Total 35.5 $2.05 1. This is an Alternative Performance Measure; refer to the Company’s MD&A for the three months ended March 31, 2020 for full details. CAPST
Slide 5: COVID-19
COVID-19 • Implemented rigorous control and prevention measures at all our offices and operations. • Reduced discretionary capital and exploration expenditures by $32 million and $22 million in operating expenditures in 2020. Our top priority is to • At March 31, we had $80 million of undrawn credit
Slide 6: Cost Reductions Expected to Offset Low Copper Prices
Cost Reductions Expected to Offset Low Copper Prices $32M ~$50M Capital Revenue + 1. Fixing a contract for low cost diesel Decline $22M Opex 2. Hedged foreign exchange in Mexico Reductions 3. Interest rate swaps 4. Contractor reductions 2020 CAPSTONE MINING (TSX:CS) • 6
Slide 7: Cozamin: On Track for 50% Production Growth in 2021
Cozamin: On Track for 50% Production Growth in 2021 • One-way ramp is on schedule for completion by end of 2020, with expected 50% production growth to 50-55 Mlbs copper and 1.5 Moz silver by 2021 • Major projects towards underground expansion were completed in early April • The 818 meter raisebore
Slide 8: PV3 Optimization: Permitted for 79.5 ktpd Throughput Potential
PV3 Optimization: Permitted for 79.5 ktpd Throughput PV3 Optimization: focus on maximizing throughput with a • Dec 2019: 18 days >60 ktpd and an all-time record of 70,334 tpd series of low capex and quick payback initiatives • During Q1/20: 28 days >60 ktpd and average of ~54.9 ktpd, which is 5% hig
Slide 9: Santo Domingo: Opportunity to Build a Cobalt Business
Santo Domingo: Opportunity to Build a Cobalt Business Base Case – No Cobalt Processing Cobalt PEA Opportunity Cumulative FCF and CuEq Grade Over LOM Cumulative FCF and CuEq Grade Over LOM $4,000 1.20% $6,000 1.40% $5,293 $3,250 $5,000 1.20% $3,000 1.00% $4,000 1.00% $2,000 0.80% $3,000 0.80% US$ mil
Slide 10: Q1 2020 Financial Results
Q1 2020 Financial Results OPERATIONAL OVERVIEW Q1 2020 Consolidated C1 Cash Costs1 Q1 2020 vs. Balance of 2020 Copper production (million pounds) 35.5 C1 cash costs1 ($/lb.) produced 2.05 Copper sales (million pounds) 30.4 $1.80 Realized copper price ($/lb.) 2.29 FINANCIAL OVERVIEW (US$ millions) Q1
Slide 11: Balance of 2020: C1 Costs $1.80/lb. and AISC $2.20/lb.
Balance of 2020: C1 Costs $1.80/lb. and AISC $2.20/lb. Actions taken during March and April 2020 • Reduced expected 2020 discretionary capital and exploration Consolidated All-in Sustaining Costs1,2 by $32 and $5 million Q1 2020 vs. Balance of 2020 • Reduced operating costs for the remainder of 2020
Slide 12: 2021 EBITDA at Various Copper Prices
2021 EBITDA at Various Copper Prices +23% 100% +30% EBITDA1 growth in 2021 from 2020, with low capex projects on track and cost reductions ~2.2x EV / EBITDA1 2021 EBITDA at $2.50/lb. copper price 1. These are alternative performance measures; refer to the Company’s MD&A for the three months ended Ma
Slide 13: Upcoming Catalysts Remain On Track for Growth in 2021+
Upcoming Catalysts Remain On Track for Growth in 2021+ PINTO VALLEY PV3 Optimization results of low-capital, quick-payback projects to execute on, to maximize existing mill PINTO VALLEY PV3 final EIS/Draft Record of Decision expected from USFS Commence modernization COMPANY-WIDE TARGET projects st
Slide 14: Positioned to Weather COVID-19 Affects
Positioned to Weather COVID-19 Affects Quality Assets • Cozamin is a Tier 1 mine, cash flow generating at current commodity prices • Arizona has declared mining an essential service, no temporary suspensions to Pinto Valley operations Financial Flexibility • Reduced 2020 capital and exploration expe
Slide 15: 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