COPPER MOUNTAIN MINING A Canadian Copper/Gold Producer TSX:CMMC 2017Year End Conference Call Support Slides February 20, 2018 1
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 www.sedar.com, 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. Feb. 16, 2018 1
2017 Highlights US $304 million 2
2017 Mine Activities Mining activities in 2017 continued to be focused in the Pit #2, Saddle and Oriole areas with a majority of ore coming from the Pit #2 area. Oriole accounted for about 8% of the ore processed during the period during 2017. Western Extension A total of approximately 72.6 million tonnes of material was mined, including 26.2 million tonnes of ore and 46.4 million tonnes of waste (for a strip ratio of 1.77:1) 198,900 tonnes per day mined, well above our 2017 mining guidance rate of 180,000 tonnes per day moved. Super Pit Pit 2 area Pit 3 area Oriole 2017 Mining costs average $1.69 /tonne (US$ 1.35/tonne) 3
Quarterly Mill Throughput Mill Throughput Averaged 40,600 tpd for the 2 nd half of 2017 SAG gear replaced in early April 2017 4
Quarterly Cash Costs (US$/lb Cu) US $1.60/lb Cu US $1.81/lb Cu US $1.17/lb Cu US $1.38/lb Cu 5
Guidance and Production 2018 Guidance 2017 Guidance 2017 Production Copper Production 80 Million Lbs Cu 75-85 Million Lbs Cu 75.8 Million Lbs Cu Mill Throughput: 40,000 tpd 38,000 tpd 38,600 tpd Mill Feed: 0.31% Cu 0.30% Cu 0.317% Cu Mining Rate: 190,000 tpd 180,000 tpd 198,900 tpd 6
2. Organic & Sustainable Growth Exploration 2017 Summer Diamond Drill Program, to - Further expand resources on the western side of the pit 2 area. - Upgrade the resources to assist with longer term mine planning. - Test continuity of high grade mineralization at depth. The 2017 program was successful in intercepting the high grade mineralization at depth on the eastern end of Pit 2. Drilling south west of Pit 2 continued to intercept mineralization, but was intermittent as drilling moved outside of the western extremities of the current pit limits, indicating that additional drilling may be required. New Ingerbelle Part of Land Package. Not currently in Mine Plan. A 5,000m Phase 1 diamond drill program was recently completed on the New Ingerbelle deposit with the objective of - Verifying historical drilling while also testing both lateral and depth potential of the resource. - Confirming the historical drill data which has the potential to add an extra 10 years to the mine life of the operation. A total of fourteen holes have been designed and results for the first hole include 100 meters at 0.37% Cu and 72 meters at 0.42% Cu.* *See News Release, October 2, 2017 for table of results. www.cumtn.com 7
Exploration Organic Growth New Ingerbelle Drilling Results The drill program was successful as follows: Validated and confirmed historical data and therefore resources that are currently classified as Inferred can now be upgraded to categories based on mineralization continuity and data density Drilling intersected mineralization peripheral to the block model indicating potential for the expansion of resources both laterally and at depth Drill hole assays confirmed the high gold tenor of the Ingerbelle mineralization estimated from historical production data to average 0.66g/t Au for every 1% of copper grade Notable recent intercepts 1 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 Note: Drill holes projected to a single pane so orientations may appear distorted. The New Ingerbelle resource 2 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. 1. See News Release, Feb.1, 2018 for table of results. www.cumtn.com 2. Estimated from the historical data (inferred) that is within a whittle pit shell, generated using a US$2.75 copper price and current mine costs New Ingerbelle with 2017 diamond drill holes projected to plan view. Section line in the top image is through the center of the above diagram. 8
2017 Financial Results Year Ended December 31, (In thousands of CAD$) 2017 2016 Revenues $304,080 $277,996 Realized copper price (US$ per pound) $2.82 $2.19 Total pounds of contained copper sold (million pounds) 73.9 82.7 Total ounces of gold sold 23,800 29,900 Total ounces of silver sold 264,800 283,900 Average realized Cu price up 28.8% 9
2017 Financial Results (In thousands of CDN$) 2017 $ Year Ended December 31, 2016 $ Revenues 304,080 277,996 Cost of sales (244,985) (258,330) Gross Profit 58,262 19,666 Adjusted EBITDA (1) 92,441 55,768 Net income 67,339 11,597 Net income per share 0.36 0.06 Cash flow from operations (before w/c) 102,796 68,892 Cash end of period 45,133 31,409 (1) Adjusted EBITDA and Adjusted earnings (loss) are non-gaap financial measurements, please see disclosure in financial statements and MD&A 10
2017 Highlights Total production for 2017 was 75.8 Mil lbs Cu, 23,600 oz Au, and 277,000 oz Ag 2017 revenue was $304 Mil, from the sale of 73.9 Mil lbs Cu, 23,800 oz Au, and 264,800 oz Ag, net of pricing adjustments Cash flow from operations of $102.8 Mil for 2017 (before working capital changes) Mine production continued at a mining rate of 198,900 tpd (approximately 10.5% ahead of plan) SAG mill averaged throughput rate of plus 40,000 tpd post SAG gear changeout Site cash costs for 2017 were US$1.38 per lb of Cu produced net of precious metal credits Total cash costs for 2017 were US$1.81 per lb of Cu sold net of precious metal credits Realized prices on metal sales for 2017 were US$2.82 per lb of Cu 11
2018 Going Forward Acquisition opportunities Politically stable jurisdictions Capitalize on our development skills Prudent capital use Maximize return on equity Nov. 2017 Announced Altona Mining acquisition Seek accretive opportunities Disciplined capital management Expand resource Drilled New Ingerbelle Identified drill targets Grow organically Improve Operating efficiencies Mining productivity Processing optimization Responsible & safe mining practices Minimizing Costs 12
COPPER MOUNTAIN MINING TSX:CMMC 13