Corporate Presentation July/August 2019
Cautionary Notes Cautionary Note on Forward Looking Information Compliance with NI 43-101 This presentation, and the documents incorporated by reference herein, may contain “forward-looking information” Unless otherwise indicated, Capstone has prepared the technical information in this presentation (“Technical within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the Information”) based on information contained in the technical reports and news releases (collectively the “Disclosure United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These Documents”) available under Capstone Mining Corp.’s company profile on SEDAR at www.sedar.com. Each Disclosure forward-looking statements are made as of the date of this document and Capstone Mining Corp. (“Capstone” or the Document was prepared by or under the supervision of a qualified person (a “Qualified Person” or “QP”) as defined in “Company”) does not intend, and does not assume any obligation, to update these forward-looking statements, National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators except as required under applicable securities legislation. Forward-looking statements relate to future events or (“NI 43-101”). For readers to fully understand the information in this presentation, they should read the Technical future performance and reflect our expectations or beliefs regarding future events. Forward-looking statements Reports (available on www.sedar.com) in their entirety, including all qualifications, assumptions and exclusions that include, but are not limited to, statements with respect to the estimation of mineral resources and mineral reserves, relate to the information set out in this presentation which qualifies the Technical Information. Readers are advised the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Disclosure production and capital expenditures, the success of our mining operations, environmental risks, unanticipated Documents are each intended to be read as a whole, and sections should not be read or relied upon out of reclamation expenses and title disputes. In certain cases, forward-looking statements can be identified by the use of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure words such as “plans”, “expects”, “guidance”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, Documents. “believes” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable Alternative Performance Measures terminology. In this document certain forward-looking statements are identified by words such as “expects”, “C1 cash cost”, “cash cost”, “adjusted EBITDA”, “operating cash flow before changes in working capital” and “net “approximately”, “could”, “expects”, “target”, “targeting”, “guidance”, “potential”, “extended”, “convert”, “will”, debt” are Alternative Performance Measures. Alternative performance measures are furnished to provide additional “plan” and “expected”. By their very nature, forward-looking statements involve known and unknown risks, information. These non-GAAP performance measures are included in this presentation because these statistics are uncertainties and other factors that may cause our actual results, performance or achievements to be materially key performance measures that management uses to monitor performance, to assess how the Company is different from any future results, performance or achievements expressed or implied by the forward-looking performing, to plan and to assess the overall effectiveness and efficiency of mining operations. These performance statements. Such factors include, amongst others, risks related to inherent hazards associated with mining operations measures do not have a standard meaning within IFRS and, therefore, amounts presented may not be comparable to and closure of mining projects, future prices of copper and other metals, compliance with financial covenants, surety similar data presented by other mining companies. These performance measures should not be considered in bonding, our ability to raise capital, Capstone’s ability to acquire properties for growth, counterparty risks associated isolation as a substitute for measures of performance in accordance with IFRS. For full information, please refer to the with sales of our metals, foreign currency exchange rate fluctuations, changes in general economic conditions, Company’s latest Management Discussion and Analysis published on its Financial Reporting webpage or on SEDAR. accuracy of mineral resource and mineral reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental regulations, compliance with environmental laws and Currency regulations, reliance on approvals, licences and permits from governmental authorities, impact of climatic conditions All amounts are in US$ unless otherwise specified. on our operations, aboriginal title claims and rights to consultation and accommodation, land reclamation and mine closure obligations, uncertainties and risks related to the potential development of the Santo Domingo Project, increased operating and capital costs, challenges to title to our mineral properties, maintaining ongoing social license to operate, dependence on key management personnel, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing energy prices, competition in the mining industry, risks associated with joint venture partners, our ability to integrate new acquisitions into our operations, cybersecurity threats, legal proceedings, and other risks of the mining industry as well as those factors detailed from time to time in the Company’s interim and annual financial statements and MD&A of those statements, all of which are filed and available for review under the Company’s profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-looking statements will prove to be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements. CAPSTONE MINING (TSX:CS) • 2
Capstone Mining at a Glance Low Risk Copper Producer. Focused On Execution. Delivering Value. • Pinto Valley is one of the US’s top 10 PINTO VALLEY – US Copper production 1 : 115-125 million lbs. copper mines by production volume • Remaining mine life 4 : 21 years • Annual copper production 1 : • • Resource 3 : over 1.35 billion tonnes CORPORATE OFFICE grading 0.30% copper 145-160 million pounds BC, Canada • By products: zinc, gold, silver and COZAMIN – MEXICO PINTO VALLEY MINE molybdenum (100%) Arizona, US Copper production 1 : 30-35 million lbs., • targeting 40-45 million lbs. by H2 2020 5 COZAMIN MINE • YTD’19 C1 cash cost per pound of (100%) Zacatecas, Mexico Reserve life 5 : 5+ years • copper produced 2 : $1.67 Resource 3 : over 17 million tonnes grading • 1.49% copper Over 1.5 billion tonnes of Resource 3 • potential at operating mines SANTO DOMINGO - CHILE Low net debt 2 /EBITDA 2 ratio of 1.26x • • Large scale copper-iron ore-gold project SANTO DOMINGO PROJECT with additional cobalt and gold by- • Employs over 1,100 employees and (70%) Region III, Chile product upside 500 contractors globally 3 • Shovel-ready in mining-friendly jurisdiction with local community support NOTES : 1. 2019 Guidance, refer to the Company’s news release of January 10, 2019 for • 18 year mine life 6 full details. 2. This is an Alternative Performance Measure; refer to the Company’s news release of July 30, 2019 for full details. 3. Refer to the Company’s Annual Information Reserve 3 : over 537 million tonnes grading • Form for the year ended December 31, 2018 for full details. 4. Refer to the Company’s news release of January 18, 2016 for full details. 5. Refer to the Company’s Technical 0.52% copper equivalent Report dated January 2019 for full details. 6. Refer to the Company’s news release of CAPSTONE MINING (TSX:CS) • 3 November 26, 2018 for full details.
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