Forward Looking Information This presentation contains - - PowerPoint PPT Presentation
Business and Growth Strategy Progressing as Planned * Strong Operational Base: ~90M Lbs Copper Eq Produced per year * Organic Growth: Drilling New Ingerbelle and Pit 2 areas Adding Mine Life * M&A - Altona Mining Acquisition with Development
1
Support Slides April 27, 2018
Business and Growth Strategy Progressing as Planned
* Strong Operational Base: ~90M Lbs Copper Eq Produced per year * Organic Growth: Drilling New Ingerbelle and Pit 2 areas – Adding Mine Life * M&A - Altona Mining Acquisition with Development Plans
This presentation contains forward-looking statements. These forward-looking statements are not based on historical facts, but rather on current expectations, forecasts, estimates and projections about global and regional economic conditions as well as industries that are major markets for Copper Mountain Mining Corporation and projections about future events. These forward-looking statements are subject to risks an uncertainties. These risks and uncertainties could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Therefore, all statements, other than statements of historical fact, are to be considered forward looking.
1
There can be no assurances that such statements will prove accurate and, therefore, readers are cautioned that such statements may differ materially from actual future events. Readers are referred to the documents, filed by the Company
actual results to differ from those contained in the forward-looking statements.
2
$22 million received Apr 4, 2018 for late Q1 Shipment
Q1 ~$80 million
3
Mining activities in Q1 continued to be focused in the Pit #2, Saddle and Oriole areas with a majority of ore coming from the Pit #2 area.
A total of approximately 16.6 million
tonnes of material was mined, including 6.5 million tonnes of ore and 10.1 million tonnes of waste (for a strip ratio of 1.54:1)
184,300 tonnes per day were mined.
Pit 2 area Pit 3 area
Super Pit
4
SAG gear replaced in early April 2017
37.4 35.7 41.2 40.1 38.8 32 33 34 35 36 37 38 39 40 41 42 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18
Quarterly Mill Throughput (tpd)
Mill Throughput Averaged 38,800 tpd for Q1-2018
5
US $1.46/lb Cu US $1.38/lb Cu US $1.90/lb Cu US $1.81/lb Cu
6
2018 Guidance 2017 Production Copper Production 80 Million Lbs Cu 75.8 Million Lbs Cu Mill Throughput: 40,000 tpd 38,600 tpd Mill Feed: 0.31% Cu 0.317% Cu Mining Rate: 190,000 tpd 198,900 tpd
7
New Ingerbelle Drilling Results Positive
Follow Up Drill Program Scheduled For This Summer
Notable recent intercepts1 from 2017 Drill Program include:
Hole 17IG-07: 88.4 m grading 0.40% copper, 0.30 g/t gold, and 0.77 g/t silver starting at a downhole depth of ~228 m. Hole 17IG-11: 57.9 m grading 0.47% copper, 0.21 g/t gold, and 1.01 g/t silver starting at a downhole depth of ~39 m. Hole 17IG-15: 54.8 m grading 0.49% copper, 0.29 g/t gold, and 0.52 g/t silver starting at a downhole depth of ~60 m
and current mine costs
The New Ingerbelle resource2 contains 104Mt grading 0.42% Cu Eq. (0.30% Cu and 0.20g/t Au) based on a 0.2% copper cut-off grade. A revised resource estimate, using both historical and new drill data, will be completed in the near future. Additional drill programs and engineering studies will be designed to upgrade resources to reserve status and targeted to define sufficient reserves that could contribute an additional 10 years of production to Copper Mountain’s life-of-mine plan.
Note: Drill holes projected to a single pane so orientations may appear distorted.
New Ingerbelle with 2017 diamond drill holes projected to plan view. Section line in the top image is through the center of the above diagram.
8
100% Altona
Advanced copper project:
▪
Permitted Eva Copper Project
▪
7 million tpy (20,000 tpd)
▪
~80 million pounds Cu per year
▪
~17,000 Oz Gold per year
Next steps:
▪
Project optimisation
▪
Feasibility Study
▪
Project financing
Prolific mineral district
▪
Home to several world-class mines including Mount Isa, Ernest Henry, Dugald River
Advanced Discovery:
Eva Copper
“includes 397,000 hectares of mineral rights”
9
50km copper anomalism (green to pink above)
Multiple discoveries (white)
Multiple targets (yellow above) within >30km of anomalism
Only a small number of targets have been tested to date
Eva Copper
Eva Copper Project:
Advanced Discovery:
Exploration: New Claims
Exploration: New Claims
Large Landholding with Discovery Potential
Queen Sally Mine
Production
10
Three Months Ended March 31, (In thousands of CAD$)
2018 2017
Revenues $77,946 $74,096 Realized copper price (US$ per pound) $3.17 $2.65 Total pounds of contained copper sold (million pounds) 21.7 19.0 Total ounces of gold sold 6,500 6,000 Total ounces of silver sold 80,600 64,000
Average realized Cu price up 19.6%
11
Three Months Ended March 31, (In thousands of CDN$)
2018 $ 2017 $
Revenues 77,946 74,096 Cost of sales (71,634) (62,885) Gross Profit 6,312 11,211 Adjusted EBITDA (1) 28,553 16,030 Adjusted earnings 10,602 328 Adjusted earnings per share 0.08 0.00 Cash flow from operations (before w/c) 18,083 20,843 Cash end of period (Post Apr 4-2018 $64.6 Mil) 42,568 30,127
(1) Adjusted EBITDA and Adjusted earnings (loss) are non-GAAP financial measurements, please see disclosure in financial statements and MD&A
12
█
Total production for Q1 2018 was 19.9 Mil lbs Cu, 6,070 oz Au, and 77,900 oz Ag
█
Q1-2018 revenue was $77.9 Mil, from the sale of 21.7 Mil lbs Cu, 6,500 oz Au, and 80,600 oz Ag, net of pricing adjustments
█
Cash flow from operations of $18.1 Mil for Q1-2018 (before working capital changes)
█
Mine production continued at a mining rate of 184,300 tpd
█
Site cash costs for Q1-2018 were US$1.46 per lb of Cu produced net of precious metal credits
█
Total cash costs for Q1-2018 were US$1.90 per lb of Cu sold net of precious metal credits
█
Realized prices on metal sales for 2017 were US$3.17 per lb of Cu
█
Cash on hand at end of Q1-2018 $42.6 Mil, (Post Apr 4-2018 $64.6 Mil)
13
practices
April 18, 2018 Altona Mining Acquisition Completed
Disciplined capital management Improve Operating efficiencies Grow
Seek accretive
14