All amounts in US$ unless otherwise
indicated
Capstone Copper Corp. (“Capstone” or the “Company”)
(TSX:CS) today reported financial results for the three months and
quarter ended March 31, 2023 (“Q1 2023”). Q1 copper production
totaled 40.7 tonnes at C1 cash costs1 of $2.96 per payable pound of
copper produced. The Company reaffirmed its 2023 consolidated
production, C1 cash costs1, and capital (including capitalized
stripping) guidance of 170-190kt of copper, $2.50 to $2.70 per
payable pound, and $620 million, respectively. Link HERE for
Capstone’s Q1 2023 webcast presentation.
John MacKenzie, CEO of Capstone, commented, "We are pleased to
report that construction at our transformational Mantoverde
Development Project (“MVDP”) remains on-time and on-budget, with
nearly 3 million tonnes of sulphide ore stockpiled to date ahead of
our ramp-up commencing late this year. Furthermore, despite a
challenging Q1 2023 marked by heavy rainfall at our Pinto Valley
mine in Arizona, we are re-iterating our 2023 production, cost, and
capital outlook. We anticipate production to increase sequentially,
with a commensurate decrease in costs in the back half of 2023.
This year is pivotal for Capstone, as we expect to complete MVDP
construction in Q4, setting the stage for a doubling of
consolidated cash flow and positioning us well for future
growth".
Q1 2023 OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Net loss of $29.0 million, or $(0.03) per share for Q1 2023.
Adjusted net income1 of $8.5 million, or $0.02 per share for Q1
2023. Q1 2023 results are lower compared to the same quarter last
year due to a lower realized copper price, inflationary pressure on
costs, and an inventory build-up due to a sales lag in the
availability of ocean going vessels for cathode shipments which
totaled 2.4 thousand tonnes of copper. Given the strengthening
Chilean peso, net income includes a realized foreign exchange loss
of $8.5 million.
- Adjusted EBITDA1 of $65.3 million for Q1 2023 compared to
$123.4 million for Q1 2022. The decrease in Adjusted EBITDA1 is
driven by a lower realized copper price, a sales lag and
inflationary pressure on costs, and realized foreign exchange loss
of $8.5 million and realized derivative loss of $8.4 million.
- Operating cash flow before changes in working capital of $41.7
million in Q1 2023 compared to $70.4 million in Q1 2022.
- Consolidated copper production for Q1 2023 of 40.7 thousand
tonnes at C1 cash costs1 of $2.96. Copper production was lower than
expected in the first quarter due to unfavorable weather at Pinto
Valley and maintenance downtime at Mantos Blancos focused on
increasing mill throughput which translated into higher
consolidated cash costs.
- The Company reiterates the 2023 guidance of 170-190kt of copper
production at $2.50-$2.70 per pound, along with capital guidance
(including capitalized stripping) of $620 million. We expect
production to be back-half weighted, with sequential
quarter-over-quarter improvements in copper production, notably at
Pinto Valley.
- Mantoverde Development Project ("MVDP") remains on budget and
on schedule. Construction is progressing well on all key areas of
the project. Total project spend inception-to-date was
approximately $654 million at the end of March 2023 of a total
budget of $825 million.
- Total available liquidity1 of $529.1 million as at March 31,
2023, composed of $101.1 million of cash and short-term
investments, and $428.0 million of undrawn amounts on the corporate
revolving credit facility.
- On March 20, 2023, Capstone Copper announced a new Sustainable
Development Strategy and the adoption of greenhouse gases ("GHG")
emissions reduction targets to support the Company's commitment to
responsible copper production.
- On March 31, 2023, the Company and its largest shareholder,
Orion Resource Partners ("Orion") completed a secondary bought
offering of common shares whereby Orion sold an aggregate of
57,500,000 common shares at a price of C$5.70 per share. Subsequent
to the completion of the offering, Orion's shareholding decreased
from approximately 32% to approximately 24%.
- Subsequent to quarter-end, the Company announced the results of
a new Technical Report and life of mine plan for its Cozamin mine.
The updated life of mine plan includes average annual copper
production of 20 thousand tonnes of copper and 1.3 million ounces
of silver over eight years at average C1 costs1 of $1.51 per
payable pound of copper.
1 These are alternative performance measures. Refer to the
section entitled “Alternative Performance Measures” in the
Cautionary Notes
OPERATIONAL OVERVIEW
Refer to Capstone's Q1 2023 MD&A and Financial Statements
for detailed operating results.
Q1 2023
Q1 2022
Copper production (000s tonnes)
Sulphide business
Pinto Valley
12.9
14.4
Cozamin
5.2
5.9
Mantos Blancos
10.8
0.7
Total sulphides
28.9
21.0
Cathode business
Mantos Blancos
3.3
0.30
Mantoverde2
8.5
1.20
Total cathodes
11.8
1.5
Consolidated
40.7
22.5
Copper sales
Copper sold (000s tonnes)
37.5
25.5
Realized copper price1 ($/pound)
4.17
4.78
C1 cash costs1 ($/pound)
produced
Sulphides business
Pinto Valley
3.09
2.60
Cozamin
1.72
1.12
Mantos Blancos
2.46
2.89
Total sulphides
2.61
2.31
Cathode business
Mantos Blancos
3.36
4.38
Mantoverde
4.02
3.63
Total cathodes
3.83
3.78
Consolidated
2.96
2.31
2 Mantoverde production shown on a 100% basis. 3 Q1 2022
production represents only nine days production for Mantos Blancos
and Mantoverde
Consolidated Production
Q1 2023 copper production of 40.7 thousand tonnes of copper is
higher than the 22.5 thousand tonnes in Q1 2022, primarily as a
result of the addition of full quarter Mantos Blancos and
Mantoverde production.
Q1 2023 C1 cash costs1 of $2.96/lb are a mix of sulphide and
cathode business units compared to Q1 2022 which was predominately
sulphide production. Cash costs are higher than guidance for the
quarter due to lower production and inflationary pressure on costs
which included some carryover of higher cost sulphuric acid
inventory.
Q1 2023 consolidated sulphide C1 cash costs1 of $2.61/lb were
13% higher than in Q1 2022 primarily due to inflationary price
increases on main consumables.
Cathode production is from copper oxide ore that requires
sulphuric acid leaching, solvent extraction and electrowinning
(SX-EW) to produce copper cathodes which are a finished copper
product for the market. Sulphide production requires a mill that
utilizes a grinding and flotation process to recover sulphide
minerals in a copper concentrate saleable as an intermediate
product to smelters and refiners. Capstone's low-cost sulphide
production is growing significantly with the MVDP to be completed
late in 2023.
Pinto Valley Mine
Q1 2023 production was 10% lower than Q1 2022 mainly due to
lower mill throughput (52,207 tpd in Q1 2023 versus 58,412 tpd in
Q1 2022) driven by heavy rainfall, including flooding, which
resulted in plugged chutes and screens; in addition, there was
unplanned maintenance on the secondary crusher. The mill feed grade
was 6% lower (0.30% in Q1 2023 versus 0.32% in Q1 2022) due to
mining sequence, which was partially offset by higher recoveries as
a result of lower mill throughput.
Q1 2023 C1 cash costs1 of $3.09/lb were $0.49/lb higher compared
to the same period last year of $2.60/lb primarily due to lower
production ($0.30/lb), increased mining costs due to inflationary
pressures on diesel prices, explosives, grinding media and higher
spend on rental equipment, mining equipment tools and contractors
($0.24/lb), higher 2022 bonus payout ($0.05/lb) and lower
capitalized stripping ($0.05/lb), partially offset by higher
by-product credits on higher molybdenum production. The cash costs
are expected to trend down as result of higher production but will
be at the high end of the cost guidance range for Pinto Valley.
Mantos Blancos Mine
Q1 2023 production was 14.1 thousand tonnes, comprised of 10.8
thousand tonnes from the sulphide operations and 3.3 thousand
tonnes of cathode from the oxide operations. Sulphide concentrate
production increased by 9% quarter-over-quarter, driven by higher
throughput (16,023 tpd vs. 15,246 tpd in Q4 2022) and higher
recoveries (80.2% vs. 75.1% in Q4 2022). Copper grades remained
strong at 0.94% (compared to 0.94% in Q4 2022). During Q1 2023, the
focus was on preventative maintenance in order to increase
reliability and improve online time. The quarter included 18 days
operating at 20,000 tpd, and an average throughput rate of 19,000
tpd in February.
Combined Q1 2023 C1 cash costs1 were $2.68/lb ($2.46/lb
sulphides and $3.36/lb cathodes). The cathode costs were
significantly impacted by high sulphuric acid prices that averaged
$212/tonne in Q1 2023 including inland transport costs and 11,300
tonnes of high-acid cost inventory ($240/tonne) as of the end of
2022. Recently, sulphuric acid prices have significantly decreased
with contract prices of approximately $130/tonne for 2023. In
addition, for the rest of 2023 we expect a reduction in combined C1
cash costs as the production mix will have a higher ratio of
concentrates to cathodes with the ramp up in sulphide production
during the year. Cash costs in Q4 2022 were lower as a result of a
stockpile adjustment that was recorded.
Mantoverde Mine
Q1 2023 production was 8.5 thousand tonnes. Heap operations
grade was 0.31% and recoveries were 69.0%. Dump operations grade
was 0.17% and recoveries were 39.9%. The heap operations will have
a lower grade during 2023 in range of 0.31% to 0.33% as result of
mine sequence as we transition towards the sulphide ore for MVDP.
As a result of 30% lower grade, the cash costs for 2023 will be
higher than 2022 and then subsequently decline in 2024 with the
commencement of sulphide production.
Q1 2023 C1 cash costs1 were $4.02/lb and were significantly
impacted by high energy costs, averaging 25.6 c/kWh due to high
coal prices included in the pricing formula of the energy contract,
and high sulphuric acid prices, averaging $177/tonne for the
quarter including inland transport costs and 17,600 tonnes of
high-cost acid inventory as of the end of 2022. The impact of
higher cost sulphuric acid in opening inventory was approximately
$1.3 million. For the rest of 2023, energy costs are expected to
gradually decrease and in 2024 the coal price element will be
eliminated from the pricing formula. In addition, sulphuric acid
prices have significantly decreased with contract prices in the
$140/tonne range for 2023.
Cozamin Mine
Q1 2023 production was lower than Q1 2022 due to lower
throughput as a result of change in mining method (cut-and-fill)
(3,410 tpd in Q1 2023 versus 3,704 tpd in Q1 2022) and lower grades
(1.77% in Q1 2023 versus 1.84% in Q1 2022). Recoveries were
consistent quarter over quarter.
Q1 2023 C1 cash costs1 were 54% higher than the same period last
year primarily due to the change in mining method which resulted in
an increase in employee headcount, higher power rates, planned
higher spend on contractors and mechanical parts to increase
equipment availability and reliability ($0.20/lb). In addition,
cash costs were impacted by lower production ($0.17/lb) and lower
zinc by-product credits due to planned lower zinc production, as
well as lower silver prices ($0.15/lb).
Mantoverde Development Project
Construction of the MVDP located at the existing Mantoverde
(oxide) operation continues to progress well. The MVDP is expected
to enable the mine to process 235 million tonnes of copper sulphide
reserves over a 20-year expected mine life, in addition to existing
oxide reserves. The MVDP involves the addition of a sulphide
concentrator (12.3 million tonnes per year) and tailings storage
facility, and the expansion of the existing desalination plant.
Upon completion, the Company expects the MVDP to increase
production from approximately 36,000 to 40,000 tonnes of copper
(cathodes only) in our current guidance for 2023 to approximately
110,000 to 120,000 tonnes of copper (copper concentrate and
cathodes) post project completion. In parallel, C1 cash costs1 are
expected to decrease from a range of $3.50/lb to $3.70/lb in the
current guidance for 2023 to below $2.00/lb after project
completion and ramp up. The decline in expected costs will be
driven by the mine's transition to becoming a primary producer of
copper concentrate. Upon completion of the MVDP, approximately 75%
of Mantoverde's production will come from the lower-cost sulphide
copper. The mine will also benefit from the production of
approximately 31,000 ounces of gold per year that will generate
by-product credits.
MVDP is progressing under a lump-sum turn-key engineering,
procurement, and construction (EPC) contract with Ausenco Limited,
a multi-national EPC management company, with broad international
experience in the design and construction of copper concentrator
projects of this scale in the international market. The execution
plan includes a Capstone Copper owner’s team working with the
contractors during the execution phase.
The Mantoverde Development Project is progressing well and
remains on track for commissioning and feeding first ore to the
mill in late 2023. Areas of focus in Q1 2023 were:
- Third electric rope shovel assembly and commissioning
completed;
- Stockpiled nearly 3 million tonnes of sulphide ore grading
~0.6% copper;
- Structural and mechanical assembly completed in the primary
crusher, while services facilities are progressing according to
plan; and
- Installed critical equipment such as the SAG and ball mill,
flotation cells, conveyor belts and other components in the final
position and electromechanical assembly is progressing according to
the planned schedule.
As of March 31, 2023, the cost of the different components of
the project, including the lump-sum turnkey EPC, continue on track
and on target. The total project capital remains at $825 million
and inception-to-date project spend, excluding finance costs,
totals $654 million.
The majority of the total project capital cost of $825 million
is fully encompassed by the turn-key contract with Ausenco. The EPC
contract total budget is approximately $525 million of which $413
million has been spent as of March 31, 2023. In addition, major
mining equipment for approximately $140 million was price fixed
prior to the elevated inflationary pressures observed this
year.
A virtual tour of the project can be viewed at
https://vrify.com/decks/12698-mantoverde-development-project
Mantoverde - Santo Domingo District Integration Plan
The Company is focused on creating a world-class mining district
in the Atacama region of Chile, targeting over 200,000 tonnes per
year of low-cost copper production with the potential to also
become one of the largest and lowest cost battery grade cobalt
producers in the world. Capstone Copper has the opportunity to
unlock a total of $80-100 million per year in operating cost
synergies, while also enabling additional copper and cobalt
production, infrastructure capital savings, and the potential for
significant tax synergies.
The district integration synergies include the following:
- Water and Power Infrastructure – a plan to expand the existing
Mantoverde desalination plant to 840 litres per second, utilization
of existing water pipelines, and upgraded energy transmission
capacity to Santo Domingo.
- Port Infrastructure – opportunity to reduce Mantoverde’s
concentrate trucking costs by $10 million per year by using the
planned Santo Domingo port, located 65 kilometres from Mantoverde.
This will also lower GHG emissions associated with transporting
concentrate to customers.
- Integrated Operations – potential to lower district operating
costs by $20-30 million by streamlining the organizational chart
across both operations, increasing purchasing power given district
scale, and standardizing equipment to promote productivity
gains.
- Santo Domingo Oxides – potential addition of 8,000-10,000
tonnes per annum ("tpa") of copper production over the first 10
years of production, by leaching copper oxides at Santo Domingo and
processing the concentrated solutions at Mantoverde’s underutilized
SX-EW facility.
- Cobalt Opportunity – ability to reduce operating costs by
approximately $45 million per year by building the cobalt and
sulphuric acid production facility at Mantoverde that will process
cobaltiferous pyrite produced by both Mantoverde and Santo Domingo.
The benefits would be realized through the by-product production of
sulphuric acid as well as the elimination of related sulphuric acid
port and trucking costs.
Santo Domingo
Santo Domingo has started the flowsheet optimization process
previously announced by awarding Ausenco a Prefeasibility Study
("PFS") subsequently followed by a Feasibility Study ("FS") scope
which explores betterments identified through the development of
several technical assessments conducted by subject matter experts.
Taking into consideration the previous feasibility study, Ausenco
will put together a new Technical Report to update the market with
the Santo Domingo current business case. The press release
associated with the Technical Report is expected in December 2023.
Also, project debottlenecking activities have continued to maintain
Capstone Copper's "shovel ready" position by advancing permitting
and formalizing agreements with third parties.
Mantoverde Optimization and Phase II
The Company is currently analyzing the next expansion of the
sulphide concentrator. Capstone has identified that the
desalination plant capacity and major components of the comminution
and flotation circuits of the Mantoverde Development Project are
capable of sustaining average annual throughput of between 40,000
and 45,000 tonnes per day with no major capital equipment upgrades.
Capstone continues to work with Ausenco's engineering team to
develop the Optimized Mantoverde Development Project (MVDP
Optimized), including evaluating the costs and timelines of
debottlenecking the minor components of the plant to meet the
potential throughput target. The conceptual engineering study is
expected to be completed in Q2 and the Feasibility Study is on
track for completion late in H2 2023.
Given the above, the Mantoverde Phase II study will evaluate the
addition of an entire second processing line, possibly a
duplication of the first line, to process some of the additional
77% of resources not utilized by the optimized MVDP. Current
activities are focused on understanding the optimum concentrator
capacity and mine plan, along with the implications to the timing
and permitting for the project.
Mantoverde - Santo Domingo Cobalt Feasibility Study
Update
A district cobalt plant for Mantoverde - Santo Domingo may also
unlock cobalt production from Mantoverde while producing a
by-product of sulphuric acid which can then be consumed internally
to further significantly lower operating costs in the leaching
process at Mantoverde.
The cobalt recovery process consists of a concentration step, an
oxidation step, and a cobalt recovery step. The concentration step
considers a conventional froth flotation circuit treating copper
flotation tails to produce a cobaltiferous pyrite concentrate which
is expected to contain between 0.5% and 0.7% Co. Two cobalt
processes are under evaluation, Roasting and Heap Leaching-Ion
Exchange. In both cases, the technology is proven and is expected
to deliver low cost cobalt production and GHG savings. The roasting
case requires higher capital and would need a longer timeline for
permitting and construction, while the heap leaching-ion exchange
process is expected to have lower cobalt production but with a
quicker timeline to production, and lower risk due to the use of
heap leach infrastructure already in place at Mantoverde.
For the roasting case, the pyrite concentrate, which contains
between 0.5% and 0.7% Co, is oxidized in a fluidized bed roaster to
produce a cobalt calcine and a concentrated sulphuric acid
by-product. The calcine is then subjected to various leaching,
precipitation, solvent extraction and crystallization steps to
produce battery grade cobalt sulphate heptahydrate. Capstone is
also evaluating alternatives that may include the direct sale of
some or all the cobalt as intermediate product, such as mixed
hydroxide precipitate, to a partner, joint venture or an
independent third-party refiner. At a combined MV-SD target of 6.0
to 6.5 thousand tonnes of cobalt production per year, this would be
one of the largest and lowest cost cobalt producers in the world.
Additional benefits of this project include the generation of
carbon-free energy from waste heat emitted by the roaster, and the
production of by-product sulphuric acid which can be used for heap
or dump leaching to produce low-cost copper cathodes at Mantoverde,
Mantos Blancos, or sold to other consumers within the district.
Exploratory test-work has started at Mantoverde to confirm
suitability of the Santo Domingo cobalt circuit flowsheet to
process an integrated cobaltiferous pyrite feed.
For the heap leaching-ion exchange case, the pyrite concentrate
from Mantoverde and Santo Domingo would be recovered and added to
the oxide heap leach feed agglomerate drums. The pyrite would
oxidize in the heap, producing by-product sulfuric acid in situ and
solubilizing a significant fraction of the cobalt. A bleed stream
containing cobalt in solution will then be directed to a recovery
plant consisting of various steps of impurity removal, continuous
ion exchange, and hydroxide precipitation to produce a cobalt
hydroxide precipitate. It is believed that this approach would
require significantly less capital expenditure and could
potentially accelerate the production of cobalt from the district.
Test work has commenced as planned, including cobaltiferous pyrite
roasting and leaching tests for Santo Domingo, column leaching and
selective flotation tests using Mantoverde ore, and ion exchange
separation tests using Mantoverde raffinates.
Mantos Blancos Phase II
Mantos Blancos is currently evaluating the potential to increase
throughput of the Mantos Blancos sulphide concentrator plant from
7.3 million tonnes per year to 10.0 million tonnes per year using
existing underutilized ball mills and process equipment. As part of
the Mantos Blancos Phase II Project, we are also evaluating the
potential to extend the life of copper cathode production. The
Mantos Blancos Phase II Feasibility Study is expected to be
released in H2 2023, and the environmental DIA application was
submitted in August 2022.
PV4 Study
The PV4 PFS aims to maximize the conversion of approximately one
billion tonnes of mineral resources to mineral reserves,
significantly extending Pinto Valley’s mine life, and increasing
the mine’s copper production profile. Given our review of district
consolidation potential, the release of the PV4 study will be
deferred while we investigate the incorporation of district
opportunities including a potential mill expansion and increased
leaching capacity supported by optimized water, heap and dump
leach, and tailings infrastructure. This could unlock significant
ESG opportunities and may transform our approach to surface value
for all stakeholders in the Globe-Miami District.
Cozamin Updated Technical Report
The Company is pleased to announce the results of a new
Technical Report for its Cozamin Mine in Zacatecas, Mexico. As at
January 1, 2023, Probable Mineral Reserves stood at 10.2 million
tonnes grading 1.65% copper, 43 g/t silver, 0.54% zinc and 0.29%
lead. Measured and Indicated Mineral Resources were 19.7 million
tonnes grading 1.58% copper, 47 g/t silver, 1.08% zinc and 0.41%
lead. Inferred Resources were 12.3 million tonnes grading 0.72%
copper, 38g/t silver, 1.97% zinc and 0.83% lead.
The updated life of mine plan includes average annual copper
production of 20 thousand tonnes of copper and 1.3 million ounces
of silver production over eight years at average C1 costs1 of $1.51
per payable pound of copper. Over the next five years from 2023 to
2027, average projected annual production is higher at 24 thousand
tonnes of copper and 1.7 million ounces of silver, at lower average
projected C1 costs1 of $1.46 per payable pound of copper.
Based on our experience mining the Mala Noche Footwall Zone
("MNFWZ") orebody at Cozamin to date, management believes the
combination of mining methods outlined in the Technical Report will
result in optimal mine performance, particularly in ore extraction.
Furthermore, as Cozamin builds its skill set in paste backfill and
cut and fill mining, there are several possibilities to extend the
mine life and improve mining productivity and dilution.
Specifically, the Technical Report outlines a number of
opportunities to expand the mine that are not included in the life
of mine plan and are not reflected in the mineral reserve estimate
as of January 1, 2023, including: through exploration on drill
targets open to the southeast, northwest, and down-dip (at depth),
by converting material classified as Inferred with additional
drilling and studies, through the implementation of selective
mining techniques to decrease dilution and lower mining costs, and
through enhanced pillar recovery, leveraging the benefits of the
paste backfill plant.
The company has filed on SEDAR a technical report titled "NI
43-101 Technical Report on the Cozamin Mine, Zacatecas, Mexico"
that has an effective date of January 1, 2023. The Technical Report
was prepared in accordance with the Canadian Securities
Administrator's NI 43-101 Standards of Disclosure for Mineral
Projects; and is available for review under the Company's profile
on SEDAR at www.sedar.com and the Company's web site at
www.capstonecopper.com.
Cozamin Updated Life of Mine Plan 2023 to 2030
Life of Mine Plan2
2023E
2024E
2025E
2026E
2027E
2028E
2029E
2030E
Cu Production (Kt)
23.8
25.4
23.8
25.3
22.3
17.8
15.6
5.3
Ag Production (Koz)
1,411
1,576
1,678
1,829
1,832
1,549
1,353
404
Pb Production (Kt)
0.2
0.4
3.2
2.7
4.5
4.4
7.5
2.2
Zn Production (Kt)
0.8
0.8
3.5
2.9
5.3
5.6
9.0
2.6
Tonnes milled (M tonnes)
1.38
1.38
1.36
1.41
1.47
1.32
1.42
0.48
Cu Grade (%)
1.80
1.92
1.84
1.88
1.60
1.44
1.19
1.19
Cu Recovery (%)
95.62
95.84
95.54
95.57
94.66
93.85
92.45
92.96
Ag Grade (g/t)
38
42
46
48
48
46
39
35
Ag Recovery (%)
83.64
84.68
83.66
84.04
80.82
79.37
76.02
75.07
Pb Grade (%)
0.04
0.05
0.27
0.23
0.35
0.39
0.60
0.51
Pb Recovery (%)
31.26
54.52
87.19
84.40
87.11
84.72
88.44
89.64
Zn Grade (%)
0.34
0.29
0.49
0.43
0.57
0.64
0.91
0.89
Zn Recovery (%)
17.39
20.80
53.33
47.73
63.83
65.78
69.52
61.34
Operating Cost per Tonne ($/t
milled)
58.78
60.73
58.17
57.95
60.58
59.22
59.94
59.84
C1 Costs3 ($/lb)
1.63
1.56
1.31
1.32
1.49
1.57
1.73
1.86
Sustaining capex ($M)
27.6
19.7
15.2
20.9
14.8
12.2
3.1
-
Expansion capex ($M)
7.6
-
-
-
-
-
-
-
Cozamin LOM Plan Table Notes:
2. Cozamin’s Life of Mine Plan has been
updated based on the Mineral Reserves as of January 1, 2023.
Operating and capital costs assume an exchange rate of MXN$20 per
USD$1.
3. C1 Costs assume by-product pricing of
Ag = $20.00/oz in 2023, Ag = $22.00/oz in 2024-2025, and Ag =
$21.00/oz thereafter; Pb = $0.90/lb and Zn = $1.10/lb in all
periods. C1 Costs are net of by-products and includes the 50%
silver stream, which provides 10% of silver price to Capstone for
50% of silver produced, and is an alternative performance measure.
Please see the “Alternative Performance Measures” section.
Mineral Reserve Estimate as of January 1, 2023
Classification
Tonnes
Cu Grade
Ag Grade
Zn Grade
Pb Grade
Cu Metal
Ag Metal
Zn Metal
Pb Metal
(kt)
(%)
(g/t)
(%)
(%)
(kt)
(koz)
(kt)
(kt)
Proven
-
-
-
-
-
-
-
-
-
Probable
10,210
1.65
43.44
0.54
0.29
168
14,258
55
29
Total
10,210
1.65
43.44
0.54
0.29
168
14,258
55
29
Reserve Table Notes:
1. The Mineral Reserve is reported at the
point of delivery to the process plant, using the 2014 CIM
Definition Standards, and has an effective date of January 1,
2023.
2. The Qualified Person for the estimate
is Mr. Clay Craig, P.Eng., a Capstone employee
3. The Mineral Reserve is reported within
fully diluted mineable stope shapes generated by the Deswik
Mineable Shape Optimiser software. Mining methods include long-hole
stoping and cut-and-fill methods.
4. The Mineral Reserve is reported at or
above a blended cut-off of $60.54/t NSR for long-hole stoping and
$65.55/t NSR for cut-and-fill mining
5. The NSR cut-off is based on operational
mining and milling costs plus general and administrative costs. The
NSR formulae vary by zone. Three separate NSR formulae are used
based on zone mineralization and metallurgical recoveries.
Copper-silver dominant zones use the NSR formula: (Cu*66.638 +
Ag*0.484)*(1-NSRRoyalty%). MNFWZ zinc-silver zones use the NSR
formula: (Ag*0.290 + Zn*13.723 + Pb*13.131)*(1-NSRRoyalty%). MNV
zinc-silver dominant zones use the NSR formula: (Ag*0.228 +
Zn*12.121 + Pb*11.363)*(1-NSRRoyalty%). Metal price assumptions (in
USD) of Cu $3.55/lb, Ag = $20.00/oz, Pb = $0.90/lb, Zn = $1.15/lb
and metal recoveries of 96% Cu, 86% Ag, 0% Pb and 0% Zn in
copper-silver dominant zones, 0% Cu, 61% Ag, 93% Pb and 88% Zn in
MNFWZ zinc-silver dominant zones, and 0% Cu, 56% Ag, 80% Pb and 77%
Zn in MNV zinc-silver dominant zones. The formulae include
consideration of confidential current smelter contract terms,
transportation costs and 1–3% net smelter return royalty payments.
Royalties are dependent on the mining concession, and are treated
as costs in the Mineral Reserve estimates.
6.Totals may not sum due to rounding.
Mineral Resource Estimate as of January 1, 2023
Classification
Tonnes
Cu Grade
Ag Grade
Zn Grade
Pb Grade
Cu Metal
Ag Metal
Zn Metal
Pb Metal
(kt)
(%)
(g/t)
(%)
(%)
(kt)
(koz)
(kt)
(kt)
Measured
400
1.25
53.8
1.23
0.40
5
692
5
2
Indicated
19,264
1.59
46.8
1.08
0.41
306
28,970
207
79
Measured + Indicated
19,664
1.58
46.9
1.08
0.41
311
29,662
212
81
Inferred
12,283
0.72
38.3
1.97
0.83
88
15,123
242
102
Resource Table Notes:
1. The Mineral Resource is reported
insitu, using the 2014 CIM Definition Standards, and have an
effective date of January 1, 2023.
2. The Qualified Person for the estimate
is Mr. Clay Craig, P.Eng., a Capstone employee.
3. The Mineral Resource is reported
inclusive of the Mineral Resource converted to Mineral Reserve.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability.
4. The Mineral Resource was estimated
assuming underground mining by longhole stoping and post-pillar
cut-and-fill with mineral processing by flotation. Mineral Resource
estimates do not account for mining loss and dilution.
5. The Mineral Resource is reported above
a net smelter return of US$59/t. Metal price assumptions in the NSR
formulae were $3.75/lb Cu, US$22.00/oz Ag, US$1.35/lb Zn and
US$1.00/lb Pb.
6. Metallurgical recoveries used in the
NSR formulae are based on mineralization. Metallurgical recoveries
vary by domain and NSR formula. The NSR formula for MNV zinc zones
is (Ag*0.241 + Zn*15.511 + Pb*12.993)*(1-NSRRoyalty%) using
metallurgical recoveries of 55% Ag, 80% Zn and 80% Pb. The NSR
formula for MNV copper-zinc zones is (Cu*69.739 + Ag*0.498 +
Zn*12.956)*(1-NSRRoyalty%) using metallurgical recoveries of 95%
Cu, 85% Ag and 67% Zn.Copper–silver dominant zones use the NSR
formula: (Cu%*$70.72 + Ag g/t$0.53) * (1-NSR Royalty%).
Copper–silver dominant zones use the following metallurgical
recoveries: 96.16% Cu and 85.83% Ag. Copper–zinc zones use the NSR
formula: (Cu%*$69.74 + Ag g/t*$0.50 + Zn%*$12.96) * (1-NSR
Royalty%). Copper–zinc zones use the following metallurgical
recoveries: 94.82% Cu, 83.82% Ag, 66.95% Zn, and 0% Pb.MNFWZ
zinc–silver dominant zones use the NSR formula: (Ag g/t*$0.35 +
Zn%*$16.80 + Pb%*$15.11) * (1-NSR Royalty%).Zinc–silver dominant
zones use the following metallurgical recoveries: 66.50% Ag, 86.79%
Zn, and 92.86% Pb. The formulae include consideration of
confidential current smelter contract terms, transportation costs
and 1-3% net smelter return royalty payments.
7. Totals may not sum due to rounding.
Corporate Exploration Update
Cozamin: Q1 2023 focused on infilling the Mala Noche Main
Vein West Target with one underground rig from the west exploration
crosscut station. Development of the proposed lower elevation mine
cross-cut will allow for additional infill drilling starting in
late Q3 2023 to develop an updated mineral resource estimate in
2024.
Copper Cities, Arizona: On January 20, 2022, Capstone
Mining announced that it had entered into an 18-month access
agreement with BHP Copper Inc. ("BHP") to conduct drill and
metallurgical test-work at BHP's Copper Cities project ("Copper
Cities"), located approximately 10 km east of the Pinto Valley
mine. An amendment to the agreement was completed in March 2023
extending the term by another six months. Drilling with two surface
rigs twinning historical drill holes was completed in 2022 with
metallurgical testing continuing in 2023. As explained in the PV4
Study section, district consolidation opportunities are being
evaluated.
Planalto, Brazil: Step-out drilling at the Planalto Iron
Ore-Copper-Gold prospect in Brazil, under an earn-in agreement with
Lara Exploration Ltd. ("Lara"), was completed in Q1 2023. During Q1
Capstone and Lara amended the Planalto Option Agreement extending
the timeframe to complete the feasibility study until 2026 and
Capstone now plans to complete 10,000 metres of exploration
drilling during 2023.
2023 Outlook
The Company reiterates the 2023 consolidated production, C1 cash
costs1 and capital guidance (including capitalized stripping) of
170-190kt of copper, $2.50 to $2.70 per payable pound and $620
million, respectively. We expect production to be back-half
weighted, with sequential quarter-over-quarter improvements in
copper production, notably at Pinto Valley.
MVDP remains on track and on budget for commissioning and
feeding first ore to the mill in late 2023.
FINANCIAL OVERVIEW
Please refer to Capstone's Q1 2023 MD&A and Financial
Statements for detailed financial results.
($ millions, except per share data)
Q1 2023
Q1 2022
Revenue
335.6
268.1
Net (loss) income
(29.0)
35.1
Net (loss) income attributable to
shareholders
(20.0)
34.0
Net (loss) income attributable to
shareholders per common share - basic and diluted ($)
(0.03)
0.08
Adjusted net income1
8.5
61.1
Adjusted net income attributable to
shareholders per common share - basic and diluted
0.02
0.14
Adjusted EBITDA1
65.3
123.4
Cash flow from operating
activities
3.8
(7.8)
Cash flow from (used in) operating
activities per common share1 - basic ($)
0.01
(0.02)
Operating cash flow before changes in
working capital1
41.7
70.4
Operating cash flow before changes in
working capital per common share1 – basic ($)
0.06
0.16
($ millions)
March 31, 2023
December 31, 2022
Total assets
5,503.7
5,380.9
Long term debt (excluding financing fees
and purchase price allocation fair value adjustments)1
692.0
595.0
Total non-current financial
liabilities
829.3
709.5
Total non-current liabilities
1,941.7
1,792.5
Cash and cash equivalents and short-term
investments
101.1
171.9
Net debt1
(650.9)
(483.1)
Attributable net (debt)/cash1
(491.7)
(34.1)
CONFERENCE CALL AND WEBCAST DETAILS
Capstone will host a conference call and webcast on Wednesday,
May 3, 2023 at 08:00 am PT/11:00 am ET. Link to the audio webcast:
https://app.webinar.net/ZrDqayglNXe
Dial-in numbers for the audio-only portion of the conference
call are below. Due to an increase in call volume, please dial-in
at least five minutes prior to the call to ensure placement into
the conference line on time.
Toronto: (+1) 416-764-8650 Vancouver: (+1) 778-383-7413 North
America toll free: 888-664-6383
A replay of the conference call will be available until May 10,
2023. Dial-in numbers for Toronto: (+1) 416-764-8677 and North
American toll free: 888-390-0541. The replay code is 844836#.
Following the replay, an audio file will be available on Capstone’s
website at
https://capstonecopper.com/investors/events-and-presentations/.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
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 (collectively,
“forward-looking statements”). These forward-looking statements are
made as of the date of this document and the Company does not
intend, and does not assume any obligation, to update these
forward-looking statements, except as required under applicable
securities legislation.
Forward-looking statements relate to future events or future
performance and reflect our expectations or beliefs regarding
future events. Our sustainable Development Strategy goals and
strategies are based on a number of assumptions, including
regarding the biodiversity and climate-change consequences;
availability and effectiveness of technologies needed to achieve
our sustainability goals and priorities; availability of land or
other opportunities for conservation, rehabilitation or capacity
building on commercially reasonable terms and our ability to obtain
any required external approvals or consensus for such
opportunities; the availability of clean energy sources and
zero-emissions alternatives for transportation on reasonable terms;
our ability to successfully implement new technology; and the
performance of new technologies in accordance with our
expectations.
Forward-looking statements include, but are not limited to,
statements with respect to the estimation of Mineral Resources and
Mineral Reserves, the success of the underground paste backfill and
tailings filtration projects at Cozamin, the timing and cost of the
construction of the paste backfill and dry stack tailings plant at
Cozamin, the success and timing of the MB-CDP (as defined below),
the timing and cost of the MV Development Project, the timing and
results of the Pinto Valley pre-feasibility study (“PV4 PFS”), the
expected reduction in capital requirements for the Santo Domingo
project, the timing and success of the Cobalt Study for Santo
Domingo, the timing and results of the integrated plan for
Mantoverde – Santo Domingo, the realization of Mineral Reserve
estimates, the timing and amount of estimated future production,
the costs of production and capital expenditures and reclamation,
the budgets for exploration at Cozamin, Santo Domingo, Pinto
Valley, Mantos Blancos, Mantoverde, and other exploration projects,
the timing and success of the Copper Cities project, the success of
our mining operations, the continuing success of mineral
exploration, the estimations for potential quantities and grade of
inferred resources and exploration targets, our ability to fund
future exploration activities, our ability to finance the Santo
Domingo project, environmental risks, unanticipated reclamation
expenses and title disputes, the success of the synergies and
catalysts related to prior transactions, in particular the
potential synergies with Mantoverde and Santo Domingo, the
anticipated future production, costs of production, including the
cost of sulphuric acid and oil and other fuel, capital expenditures
and reclamation of Company’s operations and development projects
and the risks included in our continuous disclosure filings on
SEDAR at www.sedar.com. The potential effects of the COVID-19
pandemic on our business and operations are unknown at this time,
including Capstone’s ability to manage challenges and restrictions
arising from COVID-19 in the communities in which Capstone operates
and our ability to continue to safely operate. The impact of
COVID-19 to Capstone is dependent on a number of factors outside of
our control and knowledge, including the effectiveness of the
measures taken by public health and governmental authorities to
combat the spread of the disease, global economic uncertainties and
outlook due to the disease, supply chain delays resulting in lack
of availability of supplies, goods and equipment, and evolving
restrictions relating to mining activities and to travel in certain
jurisdictions in which we operate. In certain cases,
forward-looking statements can be identified by the use of words
such as “anticipates”, “approximately”, “believes”, “budget”,
“estimates”, “expects”, “forecasts”, “guidance”, “intends”,
“plans”, “scheduled”, “target”, or variations of such words and
phrases, or statements that certain actions, events or results “be
achieved”, “could”, “may”, “might”, “occur”, “should”, “will be
taken” or “would” or the negative of these terms or comparable
terminology.
In certain cases, forward-looking statements can be identified
by the use of words such as “anticipates”, “approximately”,
“believes”, “budget”, “estimates”, expects”, “forecasts”,
“guidance”, intends”, “plans”, “scheduled”, “target”, or variations
of such words and phrases, or statements that certain actions,
events or results “be achieved”, “could”, “may”, “might”, “occur”,
“should”, “will be taken” or “would” or the negative of these terms
or comparable terminology. In this document certain forward-looking
statements are identified by words including “anticipated”,
“expected”, “guidance” and “plan”. By their very nature,
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Such factors include, amongst
others, risks related to inherent hazards associated with mining
operations and closure of mining projects, future prices of copper
and other metals, compliance with financial covenants, surety
bonding, our ability to raise capital, Capstone Copper’s ability to
acquire properties for growth, counterparty risks associated with
sales of our metals, use of financial derivative instruments and
associated counterparty risks, foreign currency exchange rate
fluctuations, market access restrictions or tariffs, changes in
general economic conditions, availability and quality of water,
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 regulations, reliance on
approvals, licences and permits from governmental authorities and
potential legal challenges to permit applications, contractual
risks including but not limited to, our ability to meet the
completion test requirements under the Cozamin Silver Stream
Agreement with Wheaton Precious Metals Corp. ("Wheaton"), our
ability to meet certain closing conditions under the Santo Domingo
Gold Stream Agreement with Wheaton, acting as Indemnitor for Minto
Metals Corp.’s surety bond obligations post divestiture, impact of
climate change and changes to climatic conditions at our operations
and projects, changes in regulatory requirements and policy related
to climate change and greenhouse gas ("GHG") emissions, land
reclamation and mine closure obligations, aboriginal title claims
and rights to consultation and accommodation, risks relating to
widespread epidemics or pandemic outbreak including the COVID-19
pandemic; the impact of COVID-19 on our workforce, risks related to
construction activities at our operations and development projects,
suppliers and other essential resources and what effect those
impacts, if they occur, would have on our business, including our
ability to access goods and supplies, the ability to transport our
products and impacts on employee productivity, the risks in
connection with the operations, cash flow and results of Capstone
Copper relating to the unknown duration and impact of the COVID-19
pandemic, impacts of inflation, geopolitical events and the effects
of global supply chain disruptions, uncertainties and risks related
to the potential development of the Santo Domingo project, risks
related to the Mantos Blancos Concentrator Debottlenecking Project
and the Mantoverde Development Project, increased operating and
capital costs, increased cost of reclamation, challenges to title
to our mineral properties, increased taxes in jurisdictions the
Company operates or is subject to tax, changes in tax regimes we
are subject to and any changes in law or interpretation of law may
be difficult to react to in an efficient manner, maintaining
ongoing social licence to operate, seismicity and its effects on
our operations and communities in which we 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
input costs such as those related to sulphuric acid, electricity,
fuel and supplies, increasing inflation rates, competition in the
mining industry including but not limited to competition for
skilled labour, risks associated with joint venture partners and
non-controlling shareholders or associates, our ability to
integrate new acquisitions and new technology into our operations,
cybersecurity threats, legal proceedings, the volatility of the
price of the common shares, the uncertainty of maintaining a liquid
trading market for the common shares, risks related to dilution to
existing shareholders if stock options or other convertible
securities are exercised, the history of Capstone Copper with
respect to not paying dividends and anticipation of not paying
dividends in the foreseeable future and sales of common shares by
existing shareholders can reduce trading prices, 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 and Annual Information Form, 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.
COMPLIANCE WITH NI 43-101
Unless otherwise indicated, Capstone Copper has prepared the
technical information in this document (“Technical Information”)
based on information contained in the technical reports, Annual
Information Form and news releases (collectively the “Disclosure
Documents”) available under Capstone Copper’s company profile on
SEDAR at www.sedar.com. Each Disclosure Document was prepared by or
under the supervision of a qualified person (a “Qualified Person”)
as defined in National Instrument 43-101 – Standards of Disclosure
for Mineral Projects of the Canadian Securities Administrators (“NI
43-101”). Readers are encouraged to review the full text of the
Disclosure Documents which qualifies the Technical Information.
Readers are advised that Mineral Resources that are not Mineral
Reserves do not have demonstrated economic viability. The
Disclosure Documents are each intended to be read as a whole, and
sections should not be read or relied upon out of context. The
Technical Information is subject to the assumptions and
qualifications contained in the Disclosure Documents.
Disclosure Documents include the National Instrument 43-101
compliant technical reports titled "NI 43-101 Technical Report on
the Cozamin Mine, Zacatecas, Mexico" effective January 1, 2023, “NI
43-101 Technical Report on the Pinto Valley Mine, Arizona, USA”
effective March 31, 2021, “Santo Domingo Project, Region III,
Chile, NI 43-101 Technical Report” effective February 19, 2020, and
"Mantos Blancos Mine NI 43-101 Technical Report Antofagasta /
Región de Antofagasta, Chile" and "Mantoverde Mine and Mantoverde
Development Project NI 43-101 Technical Report Chañaral / Región de
Atacama, Chile", both effective November 29, 2021.
The disclosure of Scientific and Technical Information in this
document was reviewed and approved by Clay Craig, P.Eng., Director,
Mining & Strategic Planning (technical information related to
Mineral Reserves at Pinto Valley and Cozamin), and Cashel Meagher,
P.Geo., President and Chief Operating Officer (technical
information related to project updates at Santo Domingo and Mineral
Reserves and Resources at Mantos Blancos and Mantoverde) all
Qualified Persons under NI 43-101.
Alternative Performance Measures
Alternative performance measures are furnished to provide
additional information. These non-GAAP performance measures are
included in this document because these statistics are key
performance measures that management uses to monitor performance,
to assess how the Company is performing, and to plan and assess the
overall effectiveness and efficiency of mining operations. These
performance measures do not have a standard meaning within IFRS
and, therefore, amounts presented may not be comparable to similar
data presented by other mining companies. These performance
measures should not be considered in isolation as a substitute for
measures of performance in accordance with IFRS.
Some of these alternative performance measures are presented in
Highlights and discussed further in other sections of the document.
These measures provide meaningful supplemental information
regarding operating results because they exclude certain
significant items that are not considered indicative of future
financial trends either by nature or amount. As a result, these
items are excluded for management assessment of operational
performance and preparation of annual budgets. These significant
items may include, but are not limited to, restructuring and asset
impairment charges, individually significant gains and losses from
sales of assets, share based compensation, unrealized gains or
losses, and certain items outside the control of management. These
items may not be non-recurring. However, excluding these items from
GAAP or Non-GAAP results allows for a consistent understanding of
the Company's consolidated financial performance when performing a
multi-period assessment including assessing the likelihood of
future results. Accordingly, these Non-GAAP financial measures may
provide insight to investors and other external users of the
Company's consolidated financial information.
C1 Cash Costs Per Payable Pound of Copper Produced
C1 cash costs per payable pound of copper produced is a measure
reflective of operating costs per unit. C1 cash costs is calculated
as cash production costs of metal produced net of by-product
credits and is a key performance measure that management uses to
monitor performance. Management uses this measure to assess how
well the Company’s producing mines are performing and to assess
overall efficiency and effectiveness of the mining operations and
assumes that realized by-product prices are consistent with those
prevailing during the reporting period.
All-in Sustaining Costs Per Payable Pound of Copper
Produced
All-in sustaining costs per payable pound of copper produced is
an extension of the C1 cash costs measure discussed above and is
also a non-GAAP key performance measure that management uses to
monitor performance. Management uses this measure to analyze
margins achieved on existing assets while sustaining and
maintaining production at current levels. Consolidated All-in
sustaining costs includes sustaining capital and corporate general
and administrative costs.
Net debt / Net cash
Net debt / Net cash is a non-GAAP performance measure used by
the Company to assess its financial position and is composed of
Long-term debt (excluding deferred financing costs and purchase
price accounting ("PPA") fair value adjustments), Cost overrun
facility from MMC, Cash and cash equivalents and Short-term
investments.
Attributable Net debt / Net cash
Attributable net debt / net cash is a non-GAAP performance
measure used by the Company to assess its financial position and is
calculated as net debt / net cash excluding amounts attributable to
non-controlling interests.
Available Liquidity
Available liquidity is a non-GAAP performance measure used by
the Company to assess its financial position and is composed of RCF
credit capacity, the $520 million Mantoverde DP facility capacity,
Cash and cash equivalents and Short-term investments. For clarity,
Available liquidity does not include undrawn amounts on Mantoverde
$60 million cost overrun facility from MMC nor the $260 million
undrawn portion of the Gold stream from Wheaton related to the
Santo Domingo project.
Operating Cash Flow before Changes in Working Capital per
Common Share
Operating Cash Flow before changes in working capital per common
share is a performance measure used by the Company to assess its
ability to generate cash from its operations, while also taking
into consideration changes in the number of outstanding shares of
the Company.
Adjusted Net Income
Adjusted net income is a non-GAAP measure of net (loss) income
as reported, adjusted for certain types of transactions that in our
judgment are not indicative of our normal operating activities or
do not necessarily occur on a regular basis.
Adjusted net income attributable to shareholders
Adjusted net income attributable to shareholders is a non-GAAP
measure of Net (loss) income attributable to shareholders as
reported, adjusted for certain types of transactions that in our
judgment are not indicative of our normal operating activities or
do not necessarily occur on a regular basis.
EBITDA
EBITDA is a non-GAAP measure of net (loss) income before net
finance expense, tax expense, and depletion and amortization.
Adjusted EBITDA
Adjusted EBITDA is non-GAAP measure of EBITDA before the pre-tax
effect of the adjustments made to adjusted net income (above) as
well as certain other adjustments required under the RCF agreement
in the determination of EBITDA for covenant calculation
purposes.
The adjustments made to Adjusted net income and Adjusted EBITDA
allow management and readers to analyze our results more clearly
and understand the cash generating potential of the Company.
Sustaining Capital
Sustaining capital is expenditures to maintain existing
operations and sustain production levels. A reconciliation of this
non-GAAP measure to GAAP segment MPPE additions is included within
the mine site sections of this document.
Expansionary Capital
Expansionary capital is expenditures to increase current or
future production capacity, cash flow or earnings potential. A
reconciliation of this non-GAAP measure to GAAP segment MPPE
additions is included within the mine site sections of this
document.
Realized copper price (per pound)
Realized price per pound is a non-GAAP ratio that is calculated
using the non-GAAP measures of revenue on new shipments, revenue on
prior shipments, and pricing and volume adjustments. Realized
prices exclude the effects of the stream cash effects as well as
TC/RCs. Management believes that measuring these prices enables
investors to better understand performance based on the realized
copper sales in the current and prior period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230503005302/en/
Jerrold Annett, SVP, Strategy and Capital Markets 647-273-7351
jannett@capstonecopper.com Daniel Sampieri, Director, Investor
Relations & Strategic Analysis 437-788-1767
dsampieri@capstonecopper.com
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