ANNUAL GENERAL AND SPECIAL MEETING

Transcription

1 ANNUAL GENERAL AND SPECIAL MEETING 1

2 COPPER GROWTH FROM A SOLID FOUNDATION June 20, 2018 Gil Clausen, President & CEO

3 Forward Looking Information 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. 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. Information concerning Altona. except as otherwise expressly indicated herein, the information concerning Altona contained in this document has been taken from and is based solely upon Altona s public disclosure on file with the relevant securities regulatory authorities. Altona has not reviewed this document and has not confirmed the accuracy and completeness of the information in respect of Altona contained in this document. although we have no knowledge that would indicate that any information or statements contained in this document concerning Altona taken from, or based upon, such public disclosure contain any untrue statement of a material fact or omit to state a material fact that is required to be stated or that is necessary to make a statement not misleading in light of the circumstances in which it was made, none of our directors or officers have verified the accuracy or completeness of such information or statements or are aware of any failure by Altona to disclose events or facts which may have occurred or which may affect the significance or accuracy of any such information or statements. we have no means of verifying the accuracy or completeness of any of the information contained herein that is derived from Altona s publicly available documents or records or whether there has been any failure by Altona to disclose events that may have occurred or may affect the significance or accuracy of any information. except as otherwise indicated, information concerning Altona is given based on information in Altona s public disclosure available as of the date of the offer. 3

4 Safety Winner of the BC Ministry of Energy and Mines Edward Prior Award Safest mid-size mine three out of the last four years Best BC South/Central Zone 3 person First Aid Team Our Objective: Everyone, after every shift, goes home unhurt. ~ Gil Clausen, Copper Mountain CEO 4

5 Environment 5 year environmental reviews completed in 2017 with positive results Reclamation costing updated confirming reclamation liability is fully covered with existing bonding Updated waste rock classification approved, confirming our waste rock is Non Acid Generating (NAG). Tailings facility 5 year Dam Safety Review (DSR) completed with positive results Tailings Independent Review Board meeting on a regular basis to provide oversight 5

6 Our Communities - Our Culture Mining Day BC Premier s Visit Focused on Local Hire, Internal Training & Promotion 6

7 2017 and YTD Highlights 2017 Q Production (CuEq lbs) 88.3M 23.2M Production (Cu lbs) 75.9M 19.9M Site Costs US$1.38/lb Cu US$1.46/lb Cu Total Costs US$1.81/lb Cu US$1.90/lb Cu Revenues C$304M C$77.9M Operating Cash Flow C$102M C$18.1M Cash (Period end) C$45M C$42.6M 2017: Setting the stage for growth 7

8 Transformational Acquisition Completed acquisition of Altona in April 2018 Permitted Eva copper/gold development project Located in Queensland, Australia Cash in Altona of A$30M Large land package, Highly Prospective (379,000 ha) Eva Copper Project Ownership 100% Mine Status Development Open Pit Commodity Cu, Au Reserves 0.50%Cu, 0.07g/t Au Mine Life years Annual Production ~ 85M lbs Cu, 17K oz Au Cash Costs (net of credits) US$1.65/lb Cu Pre-Production Capex US$ 215 M Based on Altona Public Disclosure Announce Feasibility Study Results and Financing Plan For Eva Copper in Q

9 Accretive Transaction Creation of a new diversified copper mining company Growth: Significant organic growth opportunity on both continents Value: Amongst the best Return on Equity profiles in the sector Low Risk: Strong cash position, low cost debt, solid political jurisdictions Scale: Significant increase in copper reserves and Cu production profile Mine Life: Long life open pit assets Skills: Exploration, Development and Operations Teams in place Profile: Increasing capital markets profile Timing: Rising copper prices coupled with projected production growth Maintains Exposure to Politically Safe Mining Jurisdictions 9

10 Global Copper Supply Outlook After years of supply surpluses, deficits begin to appear in Beyond 2020, reserve depletion and falling head grades will see Base Case production fall, leading to a deficit rapidly opening up unless new Probable and Possible projects are developed Supply from producing mines does not expect to meet demand in the near term and a supply deficit begins to appear without additional projects Source: Wood Mackenzie and National Bank Copper Sector Analysis (May 20, 2018) 10

11 Significant Organic Growth Potential New Ingerbelle Deposit, Copper Mountain Mine Three-Phase 30,000m Programme Objective is to provide potential to add to Copper Mountain s resource and production plan (150+M Tonnes) Successful Phase 1 program results included: Hole 17IG-07: 88.4 m of 0.40% Cu, 0.30 g/t Au, 0.77 g/t Ag Hole 17IG-11: 57.9 m of 0.47% Cu, 0.21 g/t Au, 1.01 g/t Ag Hole 17IG-15: 54.8 m of 0.49% Cu, 0.29 g/t Au, 0.52 g/t Ag Use larger resource to form basis of New Technical Study Exploration in Australia $5 million budgeted for exploration in Australia. Planned work programs include: Follow-up drilling on discoveries made in 2017 Testing new targets supporting works for Eva Copper Feasibility Study Future exploration targets include Companion, Veiled and Quamby prospects that have been early stage tested and are located 30km from Eva Copper. 11

12 Copper Mountain s Strategy Copper Mountain is well positioned to launch into its new phase of growth, leveraging on its solid operating base Grow Organically Eva Copper more than doubles production Active drilling programs focused on resource expansion Drilling New Ingerbelle (Phase 2 & 3) Disciplined Capital Management Strengthen balance sheet Prudent capital use Maximize return on equity Explore new Conclurry land package targets Improve Operating Efficiencies Responsible and safe mining practices Mining productivity improvement Process optimization 12

13 2018: A Transformative Year Value-Driving Catalysts a Completed accretive, growth-focused acquisition of Altona Mid Updated reserve and reserve estimate for Copper Mountain Mine to include New Ingerbelle deposit Q New mine plan for Copper Mountain Mine demonstrating significant mine life extension Q Updated Mineral Resource for New Ingerbelle (following Phase 2 drilling program) Q Feasibility Study and Financing Plan for Eva Copper Project Q Construction Decision on Eva Copper Project 13

14 Well Positioned Among Peers Avg: 0.68x Avg: 7.5x Copper Mountain undervalued compared to other copper producers, yet provides a leading growth profile Hudbay 14

15 Well Positioned Among Peers Companies with growth expected to outperform over the long-term Source: BMO Capital Markets Report 15

16 Investment Highlights aa a a Solid operating base with positive cash flow 2017 production of 76M lbs of Cu, 2018 expected to be 80M lbs of Cu 2017 Operating cash flow of C$102M (before w/c changes) Near, mid and long term production growth potential Optimization of Copper Mountain Mine Plan Additional production from New Ingerbelle Doubling of production expected from Eva Copper production Exploration potential Drilling at New Ingerbelle 7,284 ha land package at Copper Mountain Mine 397,000 ha of mineral rights in Australia Attractive valuations Low P/NAV and EV/EBITDA versus peers and strong growth potential Highly leveraged to the copper price with benefit of weaker Canadian dollar No hedging or streaming in place 16

17 THANK YOU 17