Year End 2016 Conference Call Supporting Slides

Transcription

1 Year End 2016 Conference Call Supporting Slides Strong Operating Base Significant Exploration Potential TSX:CMMC COPPER MOUNTAIN MINING February 21,

2 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. Forward Looking Information 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 on Sedar at and more specifically such recent reports that identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. 1

3 2016 Highlights 120,000, ,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - Copper Production With Gold & Silver Copper Equivalents Silver Production (Cu Eq) Gold Production (Cu Eq) Copper Production (lbs) $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 Revenues US $278 million Q1-16 Q2-16 Q3-16 Q4-16 $1.90 $1.70 $1.50 $1.30 Quarterly Cash Costs US $1.74/lb Cu US $1.54/lb Cu Site Cash Costs Net of Precious Metal Credits $35,000,000 $30,000,000 $25,000,000 $20,000,000 Cash End Of Quarter $1.10 $0.90 $0.70 $0.50 US $1.25/lb Cu US $1.12/lb Cu Q1 '15Q2 '15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Total Cash Costs Net of Precious Metal Credits & After All Offsite Charges $15,000,000 $10,000,000 $5,000,000 $0 Q1-16 Q2-16 Q3-16 Q4-16 2

4 2016 Mine Activities Mining activities were focused on Pit #2 and Virginia Pit during 2016 A total of 68.8 million tonnes of material was mined during 2016 (including 23.4 million tonnes of ore and 45.4 million tonnes of waste for a strip ratio of 1.94:1) Mining costs average $1.69 /tonne (US$ 1.28/tonne) Western Extension Pit 2 area Super Pit Pit 3 area Virginia Oriole 3

5 Tonnes Per Day (000 s) Quarterly Mill Throughput 31,025 tpd 35,100 tpd 38,900 tpd Mill Throughput Averaged 41,200 tpd for Q4,

6 Quarterly Cash Costs (US$/lb Cu) Quarterly Cash Costs $2.50 $2.30 $2.10 $1.90 $1.70 $1.50 $1.30 $1.10 $0.90 $0.70 $0.50 US $1.98/lb Cu US $1.74/lb Cu US $1.49/lb Cu US $1.54/lb Cu US $1.25/lb Cu US $1.12/lb Cu Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Site Cash Costs Net of Precious Metal Credits Total Cash Costs Net of Precious Metal Credits & After All Off-site Charges Linear (Site Cash Costs Net of Precious Metal Credits) Linear (Total Cash Costs Net of Precious Metal Credits & After All Off-site Charges) 5

7 2016 Production vs Guidance Copper Production 2016 Guidance 2016 Production 2017 Guidance 80 Million Lbs Cu (+/- 5%) 83 Million Lbs Cu Million Lbs Cu Mill Throughput: 37,500 tpd 38,900 tpd 38,000 tpd Mill Feed: 0.33% Cu 0.324% Cu 0.30% Cu Mining Rate: 174,000 tpd 187,900 tpd 180,000 tpd 6

8 Financial Results Three months ended December 31, Year ended December 31, (In thousands of CAD$) Revenues $84,523 $50,018 $277,996 $241,987 Realized copper price (US$ per pound) $2.35 $2.21 $2.19 $2.49 Total pounds of contained copper sold (000 lbs) 21,000 18,900 82,700 77,600 Total ounces of gold sold 7,200 7,800 29,900 29,500 Total ounces of silver sold 83,300 62, , ,100 7

9 Financial Results (In thousands of CDN$) 2016 $ Three months ended December 31, 2015 $ 2016 $ Year ended December 31, 2015 $ Revenues 84,523 50, , ,987 Cost of sales (67,002) (53,477) (250,406) (239,627) Gross Profit 17,521 (3,459) 27,590 2,360 Adjusted EBITDA (1) 26,317 10,721 62,122 59,269 Adjusted (loss) earnings (1) 8,775 1,533 (3,793) 11,358 Adjusted earnings (loss) per share (1) (0.03) 0.10 Cash flow from operations (before w/c) 28, ,246 38,869 Increase in Cash and cash equivalents during the period 6,675 (6,287) 19,219 (9,140) Cash end of period 31,409 12,190 31,409 12,190 (1) Adjusted EBITDA and Adjusted earnings (loss) are non-gaap financial measurements, please see disclosure in financial statements and MD&A 8

10 2016 Highlights Total production for 2016 was 82.9 Mil lbs Cu, 30,800 oz Au, and 291,900 oz Ag 2016 revenue was $278 Mil, from the sale of 82.7 Mil lbs Cu, 29,900 oz Au, and 283,900 oz Ag, net of pricing adjustments Cash flow from operations of $75.2 Mil for 2016 (before working capital changes) Mine production continued at a mining rate of 187,900 tpd (approximately 8% ahead of plan) SAG mill averaged throughput rate of 38,900 tpd during 2016 (ahead of 37,500tpd 2016 guidance) Site cash costs for 2016 were US$1.12 per lb of Cu produced net of precious metal credits Total cash costs for 2016 were US$1.54 per lb of Cu sold net of precious metal credits Realized prices on metal sales for Q3 were US$2.19 per lb of Cu, US$1,269 per oz Au & US$17.29 per oz Ag 9

11 2017 Going Forward Actively perusing acquisition opportunities Politically stable jurisdictions Capitalize on our development skills Prudent capital use Maximize return on equity Seek accretive opportunities Disciplined capital management Expand resource Identified drill targets Grow organically Improve Operating efficiencies Mining productivity Processing optimization Responsible & safe mining practices Minimizing Costs 10

12 COPPER MOUNTAIN MINING TSX:CMMC 11