Slide 1: Strengthening Communities by Building Resilient Operations
Strengthening Communities by Building Resilient Operations Q3 2021 RESULTS Conference Call – October 27, 2021 Pinto Valley partnership with Tonto National Forest making post-wildfire repairs in response to flash flooding damage in the burn scars
Slide 2: Today's Presenters
Today’s Presenters Darren Pylot Raman Randhawa CEO CFO Wendy King Brad Mercer Sr. VP Risk, ESG, General COO Counsel & Corporate Secretary Jerrold Annett Sr. VP 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, President & CEO
Darren President &Pylot CEO President & CEO
Slide 6: Q3 2021 Results Summary
Q3 2021 Results Summary Q3 Cu Q3 C1 Cash YTD Cu YTD C1 Production Costs1 Production Cash (Mlbs) US$ Per (Mlbs) Costs1 Payable lb Cu US$ Per Produced Payable lb Cu Produced Pinto Valley 30.3 $2.44 96.2 $2.22 Cozamin 14.1 $0.93 39.3 $0.95 Total 44.4 $1.96 135.5 $1.85 175 – 190 Pinto Valley Mine, Arizo
Slide 7: Record Annual Operating Cash Flow Generation
RECORD ANNUAL Operating Cash Flow(1) Generation … … enhanced by record high realized copper prices of $4.35/lb Cu YTD at September 30, 2021 $300 $4.50 $272 $4.00 $250 $3.50 Avg LME Price US$/lb Cu $200 $3.00 OCF US$ millions $2.50 $150 $2.00 $100 $1.50 $1.00 $50 $0.50 $0 $0.00 2008 2009 2010 2011 20
Slide 8: Q3 2021 Highlights – Cash is Building
Q3 2021 Highlights – Cash is Building CORPORATE • $208.2 million in net cash1 and no long-term debt. Cash grew by $36.7 million from Q2 2021. • 44.4 Mlb Cu produced at C1 cash costs1 of $1.96 per payable pound. • Adjusted net income1 of $35.3 million or $0.09 per share. • Operating Cash Flow Before
Slide 9: Q3 EBITDA & EPS versus Consensus
Q3 EBITDA & EPS versus Consensus Q3 Financials impacted by the following …. Strong YTD EBITDA Generation Cu price ($/lb.) 1. Timing of sales – production was skewed toward second half $350M $10.00 of quarter leaving payable copper sales of 39.6 Mlbs versus $319M production of 44.4 MIbs $9.00 $300M 2
Slide 10: Balance Sheet is Growing to Finance next stage of Growth
Balance Sheet is Growing to Finance next stage of Growth Available Liquidity (US$M) 2021E-2023E LT DEBT FREE Cash & ST Cumulative After-Tax Operating Cash Flow* Investments with RCF Capacity ~$1,400 STRONG $225 $433 $208 BALANCE SHEET ~$1,200 LIQUIDTY ~$1,000 • Capstone has pipeline of low capital,
Slide 11: What A Difference a Year Makes
What A Difference a Year Makes NET CASH (DEBT) US$M +$371M $208 Sep 30, 2020 Sep 30, 2021 -$163 Building significant cash and positioned for transformational growth CAPSTONE MINING (TSX:CS) • 11
Slide 12: Pinto Valley – Optimization Complete
Pinto Valley – Optimization Complete • PV3 Optimization Completed during Q3. Total project investment of $31 million has increased throughput by ~10% to reliably process 58,000 tpd annualized with horsepower to run above 60,000 tpd. • Tailings Thickener Upgrades has increased water reclaim performan
Slide 13: 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 $3.3 million during YTD 2021. • At current diesel prices expected savings of approximately $10 million over the remainder of 2021 and 2022. • Ramp
Slide 14: Pinto Valley – Blast Fragmentation Excellence
Pinto Valley – Blast Fragmentation Excellence “Blastability Pattern” Increased Mill Throughput by 10%+ Data is collected from smart Selective blast plans are A higher percentage of drills to create a blastability created based on smart drill fines derived from index based on rock data that measures
Slide 15: Cozamin – Exceeding Targets
Cozamin – Exceeding Targets • Record Quarterly Copper production of 14.1 Mlbs; 33% higher than in Q3 2020. • Mine expansion is exceeding targeted run rate. Mill throughput increased from 3,090 tpd in Q3 2020 to 3,854 tpd in Q3 2021 versus target of 3,780 tpd • Higher Grades and Higher Recovery. Grad
Slide 16: Cozamin – Innovation Driving Improvements
Cozamin – Innovation Driving Improvements Ore Sorting – Positive Initial Test Results • 8 tonne representative sample from six production headings was crushed then screened to remove >3.5" and <0.5" (unsuitable for sorting). • Tested two different technologies and best result realized up to 31% mass
Slide 17: Opportunity to Build a World Leading Battery Grade Cobalt Business
Opportunity to Build a World Leading, Low Cost, Fully-integrated, Battery Grade Cobalt Business Santo Domingo Cobalt Feasibility Update • Drilled 7,600m of PQ core for flowsheet confirmation and geometallurgical work. • Current drilling will generate sample mass for pilot scale testing of Co recover
Slide 18: Sustainability – A Competitive Advantage & Strategic Priority
Sustainability – A Competitive Advantage & Strategic Priority Building more resilient operations and helping communities around us thrive is vital for us. Severe weather has shifted our operational focus. Water Management • Diverting non-impacted water away from at-risk ESG improvements: Surface/sto
Slide 19: Strengthening Communities by Building Resilient Operations
Strengthening Communities by Building Resilient Operations Strong local community relations has always been fundamental to our operations In August, Pinto Valley worked with the Arizona Department of Transportation to provide limestone rock to repair US Highway 60 (US 60) that sustained heavy damage
Slide 20: Capstone Growing Margins in Rising Copper Price Market
Capstone Growing Margins in Rising Copper Price Market +24% Copper Price +58% Gross US$/lb. Margin % $4.35 $2.75 54% 30% YTD 2020 YTD 2021 Production +20% Mlbs. YTD 2020 YTD 2021 135.5 112.5 +319% EBITDA US$M YTD 2020 YTD 2021 C1 Cash -3% Costs1 $319 US$/lb. $1.91 $1.85 $76 YTD 2020 YTD 2021 YTD 202
Slide 21: 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