(All amounts in US$ unless otherwise
indicated)
Capstone Copper Corp. (“Capstone” or the “Company”)
(TSX:CS) (ASX:CSC) today announced the results of a feasibility
study (“FS”) for its Mantoverde Optimized brownfield expansion
project (“MV Optimized” or “MV-O”).
John MacKenzie, Capstone’s Chief Executive Officer, commented,
“We are excited to release the results of our MV Optimized
Feasibility Study which, when combined with our recently released
Santo Domingo Feasibility Study, defines the next phase of
transformational growth for Capstone. MV Optimized is a capital
efficient, high return and low risk expansion project that is
expected to bring on an additional 20,000 tonnes per annum of
copper for approximately $146 million of capital. We see the MV-SD
district producing approximately 250,000 tonnes of copper per
annum, placing it amongst the largest producing copper districts in
the world, with very attractive unit cash costs. Between MV
Optimized and Santo Domingo, we expect to have significant
optionality to surface further value, including through exploration
drilling which has not been performed at Mantoverde since 2019. Our
team is committed to pursuing the highest standards in safety and
environmental management as well as continued engagement with all
stakeholders as we progress our growth plans. The ramp up of the
current Mantoverde Development Project continues to progress well
and I am thrilled that the plant achieved commercial production in
September.”
MANTOVERDE OPERATION SUMMARY
Mantoverde (70%-owned by Capstone Copper and 30%-owned by
Mitsubishi Materials Corporation) is an open-pit copper-gold mine
located in the Atacama region of Chile. Since the 1990s, Mantoverde
operated as an oxide mine producing copper cathodes from its 60,000
tonnes per annum capacity SX-EW plant. Last year in 2023, Capstone
Copper completed construction of the Mantoverde Development Project
(“MVDP”) that enabled the mine to process its copper sulphide
reserves, in addition to existing oxide reserves. The MVDP involved
the addition of a sulphide concentrator (nominal 32,000 ore tonnes
per day (“tpd”)) and tailings storage facility, and the expansion
of the existing desalination plant and other minor infrastructure.
First saleable copper concentrate at MVDP was produced in June 2024
and commercial production was achieved in September 2024.
Commercial production is defined as the achievement of reaching a
minimum of 30 consecutive days of operations during which the mill
operated at an average of 75% of nameplate throughput of 32,000
tpd.
MANTOVERDE OPTIMIZED FEASIBILITY STUDY
MV OPTIMIZED HIGHLIGHTS
- MV Optimized is a capital efficient debottlenecking expansion
of the existing sulphide concentrator from throughput of 32 ktpd to
45 ktpd
- An extended 25-year mine life is supported by a higher sulphide
Mineral Reserve1 estimate of 398 million tonnes at a copper grade
of 0.49% and a gold grade of 0.10 grams per tonne
- Sulphide Mineral Reserve tonnes have increased by 68% while
contained copper has increased by 40%
- The updated oxide Mineral Reserve2 estimate is 236 million
tonnes at a soluble copper grade of 0.21%
- Oxide Mineral Reserve tonnes have increased by 18% while
contained copper has increased by 11%
- Expansionary capital of $146 million yields total incremental
production of 368,000 tonnes of copper and 215,000 ounces of gold
compared to the previous technical report, reflecting a capital
intensity of approximately $7,500 per tonne of incremental annual
copper equivalent production
- Over the next five years, annual production from Mantoverde is
expected to average 135,000 tonnes of copper and 37,000 ounces of
gold at attractive C1 cash costs of $1.81 per payable pound of
copper produced
- Over the 25-year mine life, production is expected to average
81,000 tonnes of copper and 32,000 ounces of gold at robust C1 cash
costs of $2.04 per payable pound of copper produced
- MV Optimized outlines an after-tax net present value at an 8%
discount rate (“NPV8%”) of $2.9 billion for the Mantoverde
operation on a 100%-basis based on a $4.10/lb long-term copper
price assumption
- Capstone plans to begin construction of MV Optimized following
acceptance of its environmental DIA permit application and subject
to Board approvals. The DIA permit application was submitted in H1
2024 and approval is expected in H1 2025
- The Company plans to progress several value enhancement
initiatives within the Mantoverde-Santo Domingo (“MV-SD”) district,
noted in the Opportunities section but not yet incorporated into
the base case MV Optimized plan, including:
- Processing of oxide material from Capstone’s neighbouring Santo
Domingo and Sierra Norte projects using Mantoverde’s excess SX-EW
capacity
- Recovery of cobalt and additional copper from a pyrite
concentrate
- Ongoing exploration of the MV-SD district, including the
recently acquired Sierra Norte deposit
A summary of key production and cost details for MV Optimized
can be found below. For further details, please refer to Exhibit 1
at the end of this news release.
______________________________
1 Composed of 219 million tonnes in the
Proven category and 179 million tonnes in the Probable category.
Please refer to the detailed breakdown of the Mantoverde Mineral
Reserve estimate below.
2 Composed of 148 million tonnes in the
Proven category and 88 million tonnes in the Probable category.
Please refer to the detailed breakdown of the Mantoverde Mineral
Reserve estimate below.
2025-
2029
Avg.
2030-
2034
Avg.
2035-
2039
Avg.
2040-
2044
Avg.
2045-
2049
Avg.
First 10
Years
Avg.
2025-
2049
Total
Production
Contained Copper in
Concentrate
tonnes
(000s)
99
90
69
47
32
95
1,684
Copper Cathodes
tonnes
(000s)
36
21
13
-
-
28
347
Total Copper
tonnes
(000s)
135
111
82
47
32
123
2,031
Gold in Concentrate
ounces
(000s)
37
43
36
26
19
40
805
C1 Cash Costs3
Sulphides C1 Cash Cost
$ / payable
lb Cu
$1.48
$1.61
$2.42
$2.40
$2.18
$1.54
$1.90
Cathodes C1 Cash Cost
$ / payable
lb Cu
$2.68
$2.74
$2.64
n/a
n/a
$2.70
$2.69
Combined C1 Cash Cost
$ / payable
lb Cu
$1.81
$1.83
$2.46
$2.40
$2.18
$1.82
$2.04
MV OPTIMIZED EXPANSIONARY CAPITAL COST ESTIMATE
The current process infrastructure of the MVDP can sustain up to
45,000 tpd by debottlenecking minor components of the plant. The
expansionary capital costs for MV Optimized have been estimated at
$146 million as shown in the following table. This reflects a total
capital intensity of approximately $7,500 per tonne of incremental
annual copper equivalent production.
EXPANSIONARY CAPITAL COST
ESTIMATE (by area)
($ millions)
Mine
38
Concentrator processing plant
84
Oxide leach optimization
17
Desalination plant
7
TOTAL EXPANSIONARY CAPITAL
COST
146
______________________________
3 C1 cash costs are net of gold by-product
credits and selling costs. These are Non-GAAP performance measures;
please see “Non-GAAP and Other Performance Measures” at the end of
this news release.
Capital for the mine of approximately $38 million reflects the
addition of one hydraulic shovel and five haul trucks to support
the expanded mining and processing rate of nearly 45,000 tpd,
compared to the current nameplate capacity at the Mantoverde
Development Project of 32,000 tpd. The strip ratio for MV Optimized
has increased to 2.7:1 compared to 2.1:1 for MVDP.
Capital for the processing plant of approximately $84 million
reflects additional and/or upgrades to equipment, notably including
pipes, pumps, flotation cells, cyclone feed pumps, electrical
cabling, and other auxiliary infrastructure to debottleneck the
plant.
Capital for the oxide leach optimization of approximately $17
million reflects infrastructure for improved heap and dump
management, plus the conversion of the dynamic heap to a bioleach
facility to extract sulphide-based copper. The conversion of the
dynamic heap to a bioleach facility will also facilitate the
potential future extraction of cobalt.
Capital for the desalination plant of approximately $7 million
reflects upgrades to ensure a stable flow of the required water for
MV Optimized.
For a breakdown of annual capital expenditures, including
sustaining and deferred stripping capital, please see Exhibit 1 at
the end of this news release.
MINERAL RESERVE ESTIMATE
The Mineral Reserves detailed below consider both oxide and
sulphide mineralization as part of the Mantoverde Optimized study.
Mantoverde is an open pit-mining complex where oxide ore is treated
through both Heap and Dump (ROM) leaching processes and recovered
via conventional SX-EW plant to produce copper cathodes. The
sulphide ore is processed using a concentrator plant.
The Mineral Reserve was developed by Capstone and contains all
Proven and Probable category material planned for processing in
MV-O. The designed pit was based on a Lerchs-Grossman optimization
process using Whittle software and a detailed phased pit design
using the oxide and sulphide pit shells. As a result of the
optimization process, six mine phases for oxide material and 15
mine phases for sulphide material were designed to prioritize the
higher-grade zones within the mineral extraction plan, while
maintaining suitable working widths that would enable high
productivity mining sequences using large-scale mining equipment.
Mining assumes conventional open pit operations using
truck-and-shovel technology.
Following is the current Mineral Reserve Estimate as at June 1,
2024.
Mineral Reserves -
Flotation
Category
Tonnage
(Mt)
Grade
Contained Metal
TCu %
Au g/t
Cu (kt)
Au (koz)
Flotation - Sulphide
Proven
181
0.58
0.10
1,044
602
Probable
160
0.41
0.09
656
474
Total
341
0.50
0.10
1,700
1,077
Flotation - Mixed
Proven
38
0.49
0.08
187
99
Probable
19
0.35
0.08
68
47
Total
58
0.44
0.08
255
146
Flotation - Sulphide +
Mixed
Proven
219
0.56
0.10
1,231
702
Probable
179
0.40
0.09
723
521
Total Reserves
398
0.49
0.10
1,954
1,223
Mineral Reserves -
Leach
Category
Tonnage
(Mt)
Grade
Contained Metal
TCu %
SCu%
Cu (kt)
SCu (kt)
Heap leach – Oxide + Mixed
Proven
76
0.40
0.30
300
226
Probable
37
0.36
0.27
132
101
Total
113
0.38
0.29
432
327
Dump leach – Oxide + Mixed
Proven
72
0.18
0.14
131
99
Probable
51
0.20
0.14
102
69
Total
123
0.19
0.14
233
168
Heap + Dump Leach – Oxide +
Mixed
Proven
148
0.29
0.22
432
325
Probable
88
0.27
0.19
234
170
Total Reserves
236
0.28
0.21
665
495
Mineral Reserve Estimate
Notes:
1)
Mineral Reserves are reported on
a 100% basis as constrained within Measured and Indicated Resources
and pit designs included within the mine schedule. The attributable
percentage to Capstone Copper is 69.993%. Figures include
stockpiles as of June 1 2024 that are scheduled to be processed
within the MVO plan. The block model is considered to be fully
diluted and no dilution or mining losses are applied.
2)
The pit designs and mine plan
were optimized using assumed metal prices of $3.50/lb Cu and
$1,500/oz Au.
3)
Mineral Reserves for flotation
are estimated above a 0.20% Total Copper (TCu) cut-off.
4)
Mineral Reserves for leach are
estimated above a 0.10% Soluble Copper (SCu) cut-off for Dump
leach, with a variable Heap cut-off between 0.16% and 0.21% SCu to
reflect ore availability. Leach-grade material mined after 2037 was
scheduled as waste.
5)
LOM feed to flotation averaged
87.7% total copper recovery and 65.3% gold recovery.
6)
Average heap leach recovery
applied in Mine Planning was 71.5% of SCu and 50% of ICu, where ICu
= TCu – SCu. Average dump leach recovery applied in Mine Planning
was 38.0% of SCu.
7)
Mineral Reserves considered the
following average costs: mining cost of $1.87 per tonne moved;
$10.11/t flotation processing+tails+G&A; $0.31/lb TC/RC+freight
for flotation; $10.14/t heap+G&A; $1.78/t dump leach; $0.35/lb
SX/EW costs; and $0.05/lb cathode selling cost. Heap leach Reserve
figures include the costs and benefits of bioleaching.
8)
Inter-ramp angles in rock vary
from 52° to 59°. The LOM strip ratio is 2.7:1.
9)
Rounding as required by reporting
standards may result in apparent summation differences between
tonnes, grade and contained metal content.
10)
Grade TCu% refers to total copper
grade in percent sent to the mill for metallurgical recovery by
flotation. Grade SCu% refers to soluble copper grade in percent
sent to the leaching processes. Tonnages are in metric units and
contained ounces (oz) are troy ounces.
MINERAL RESOURCE ESTIMATE
Mantoverde estimated the Mineral Resource using drill data
available as of October 17, 2022. The database included 5,109 drill
holes, totaling 937,629 meters of drilling, with data composited
into 10-meter intervals. The estimation was based on a
three-dimensional geological model that incorporated
interpretations of lithology, mineralization, and spatial
relationships relative to the Mantoverde Fault. The orebody was
modeled using a probabilistic approach based on indicator
models.
Grades of TCu, SCu, Au, cobalt (Co) and calcium carbonate
(CaCO₃) were estimated within a three-dimensional block model using
Ordinary Kriging interpolation, applied in three progressively
larger passes. Variograms were constructed for each of the sixteen
estimation units, supporting the identification of ellipsoid
anisotropy and linear trends in the data. High-grade outliers were
managed through high-yield restriction (HYR).
Mineral Resources were classified using a geometrical variation
of the indicator method (metal and tonnage), which models expected
errors and provides a confidence level for production volume
estimates. This approach helps quantify the estimation errors in
production volumes with a defined level of confidence.
The Mineral Resource Estimates are reported inclusive of those
Mineral Resources that have been converted to Mineral Reserves, and
use the definitions set out in the 2014 Canadian Institute of
Mining, Metallurgy and Petroleum (CIM) Definition Standards for
Mineral Resources and Mineral Reserves (the 2014 CIM Definition
Standards). Mineral Resources that are not Mineral Reserves do not
have demonstrated economic viability.
Following is the current Mineral Resource Estimate as at June 1,
2024.
Mantoverde Mineral Resource Flotation – Sulphide + Mixed,
Inclusive of Mineral Reserves
Category
Tonnage (Mt)
Grade
Contained
TCu %
Au g/t
Co ppm
Cu (kt)
Au (koz)
Co (kt)
Mantoverde Sulphides
(Flotation)
Measured
187.5
0.57
0.10
178
1,069
603
33
Indicated
332.0
0.41
0.10
134
1,369
1,068
45
Total Measured &
Indicated
519.5
0.47
0.10
150
2,438
1,671
78
Total Inferred
553.1
0.37
0.08
62
2,046
1,423
34
Mantoverde Mixed (Flotation)
Measured
38.9
0.47
0.09
85
183
113
3
Indicated
36.3
0.36
0.09
101
132
106
4
Total Measured &
Indicated
75.2
0.42
0.09
93
315
218
7
Total Inferred
17.8
0.29
0.06
30
52
34
1
Mantoverde Sulphides + Mixed
(Flotation)
Measured
226.4
0.55
0.10
162
1,252
715
37
Indicated
368.3
0.41
0.10
131
1,501
1,174
48
Total Measured &
Indicated
594.7
0.46
0.10
143
2,753
1,889
85
Total Inferred
570.9
0.37
0.08
61
2,098
1,457
35
Mantoverde Mineral Resource Heap and Dump Leach – Oxide +
Mixed, Inclusive of Mineral Reserves
Category
Tonnage (Mt)
Grade %TCu
Grade %SCu
Contained Cu
(kt)
Mantoverde Oxides + Mixed – Heap
Leach
Measured
101.8
0.46
0.35
356
Indicated
63.3
0.40
0.30
190
Total Measured &
Indicated
165.1
0.44
0.33
546
Total Inferred
11.5
0.37
0.28
32
Mantoverde Oxides + Mixed – Dump
Leach
Measured
153.9
0.22
0.15
231
Indicated
153.3
0.21
0.14
215
Total Measured &
Indicated
307.2
0.22
0.15
445
Total Inferred
59.5
0.22
0.14
83
Mantoverde Oxides + Mixed –
Heap + Dump Leach
Measured
255.7
0.32
0.23
587
Indicated
216.6
0.27
0.19
405
Total Measured &
Indicated
472.3
0.29
0.21
992
Total Inferred
71.0
0.24
0.16
116
Mineral Resource Estimate
Notes:
1)
Mineral Resources are inclusive
of Mineral Reserves. Mineral Resources, including stockpiles and in
situ material, are reported in accordance with the 2014 CIM
Definition Standards.
2)
Mineral Resources are reported on
a 100% basis. The attributable ownership percentage to Capstone
Copper is 69.993%.
3)
Cut-off grade:
3.1. Dump Leach: Oxide: 0.10% ≤
SCu < 0.20% and oxidation state=1, Mixed 0.10% ≤ SCu < 0.20%
and SCu/TCu > 50% and oxidation state=2.
3.2. Heap Leach: Oxide: SCu ≥
0.20% and oxidation state=1, Mixed: SCu ≥ 0.20% and SCu/TCu >
50% and oxidation state=2.
3.3. Flotation: Sulphide: TCu ≥
0.20% and oxidation state=3, Mixed: TCu ≥ 0.20% and SCu/TCu ≤ 50%
and oxidation state=2.
4)
The Mineral Resource pit is based
on $4.00/lb Cu and $1,700/oz Au based on long-term forecast
pricing.
5)
Tonnes are reported on a dry
basis.
6)
Contained Metal (CM) is
calculated using the following formulae:
6.1. CM = Tonnage (Mt) * TCu (%)
*10 for sulphides
6.2. CM = Tonnage (Mt) * SCu (%)
*10 for oxides
6.3. CM = Tonnage (Mt) * g/t
Au*1,000/31.1035 for sulphides and Mixed.
6.4. CM = Tonnage (Mt) * Co
(ppm)/1,000 for sulphides and Mixed
7)
Flotation recovery is based on a
geometallurgical model, 90.44% TCu and 67.87% Au average for
Sulphides and 72.77% TCu and 61.73% Au average for Mixed. Heap
Leach recovery is based on operating data, expressed in algorithms
per mineral model zone considering both SCu and CaCO₃ grades. The
average heap leach recovery is 67.64% SCu, with an additional 50%
recovery of ICu achieved through the bioleaching process (where ICu
= TCu – SCu). For dump leaching, the recovery averages 38.9% SCu,
based on operational data.
8)
Tonnage and contained metal have
been rounded to reflect the accuracy of the estimate and numbers
may not add exactly.
9)
Mineral resources that are not
Mineral Reserves do not have demonstrated economic viability.
COMMODITY PRICING
The MV-O FS assumes analyst consensus commodity price
assumptions for copper and gold.
Copper
Capstone markets copper concentrate from its four mining
operations. Mantoverde copper concentrate is generally considered
clean and low in impurities (deleterious or penalty elements).
Capstone foresees substantial demand from trading companies that
specialize in blending complex materials with cleaner concentrates.
These companies typically prefer concentrates like Mantoverde’s due
to their compatibility with blending processes and enhanced value
proposition. High-quality concentrates are coveted by both smelters
and traders alike. This further supports the expected strong demand
for Mantoverde’s copper concentrate in the market.
The analyst consensus long-term copper price was determined to
be $4.10/lb which is below the current spot price and compares with
the five-year trailing average of approximately $3.73/lb. Analyst
consensus copper prices in 2025-2027 of $4.30/lb, $4.40/lb, and
$4.40/lb, respectively, were used in the economic model.
Gold
The analyst consensus long-term gold price was determined to be
$1,800/oz which is below the current spot price and compares with
the five-year trailing average of approximately $1,881/oz. Analyst
consensus gold prices in 2025-2027 of $2,200/oz, $2,100/oz, and
$2,000/oz, respectively, were also used in the economic model.
FURTHER UPSIDE OPPORTUNITIES
The company plans to continue to progress several value
enhancement initiatives within the Mantoverde-Santo Domingo
district that are not yet incorporated into the base case MV
Optimized plan, or the recently announced Santo Domingo 2024
Feasibility Study.
Copper Oxides
Capstone plans to progress drilling and studies regarding the
processing of oxide material from Capstone’s neighbouring Santo
Domingo and Sierra Norte projects using Mantoverde’s excess SX-EW
capacity. To date, oxide materials have been recognized in the
shallower portions of the Santo Domingo, Iris Norte, and Estrellita
sulphide orebodies. Currently, these oxides are considered as waste
material in the recently announced Santo Domingo 2024 Feasibility
Study. Meanwhile, only approximately two thirds of processing
capacity is being used at Mantoverde’s SX-EW cathode copper plant.
Exploration efforts at Santo Domingo will target a potential 80-100
million tonnes of oxide material, which could add up to 10 thousand
tonnes per annum of copper production.
Cobalt
A district cobalt plant for the MV-SD district is designed to
unlock cobalt production while reducing sulphuric acid consumption
and increasing heap leach copper production. The cobalt recovery
process comprises a pyrite flotation step to recover cobaltiferous
pyrite from the tailings streams at Mantoverde and Santo Domingo
and redirect it to the dynamic heap leach pads, which will be
upgraded to a bioleach configuration through the addition of an
aeration system as part of MV Optimized. The pyrite oxidizes in the
leach pads and the solubilized cobalt is recovered via an ion
exchange plant treating a bleed stream from the copper solvent
extraction plant. The approach has been successfully demonstrated
at the bench scale, and onsite piloting commenced in January 2024
at Mantoverde.
As currently envisioned, a smaller capacity countercurrent
ion-exchange plant will initially treat cobalt by-product streams
from Mantoverde producing up to 1,500 tonnes per annum of cobalt,
and following sanctioning of the Santo Domingo project, the
facility will be expanded to accommodate by-product streams from
Santo Domingo. In line with this, Santo Domingo has initiated a
Feasibility Study to assess the optimum process configuration for
the pyrite flotation and pumping transportation facilities needed
to transport pyrite concentrate to Mantoverde's leach
facilities.
Exploration in the Mantoverde-Santo Domingo District
Capstone has significant untapped exploration potential within
MV-SD district. The Mantoverde Optimized plan presented today was
prepared without any expansionary drilling campaign since 2019. At
Mantoverde, there are 0.2 billion tonnes of Measured &
Indicated and 0.6 billion tonnes of Inferred sulphide resources not
in reserves. At Santo Domingo, there are 0.1 billion tonnes of
Measured & Indicated and 0.2 billion tonnes of Inferred
sulphide resources not in reserves. The recently acquired Sierra
Norte property also represents an opportunity to potentially be a
future feed source in the district. Capstone intends to progress
its exploration strategy to service its two eventual processing
centers between Mantoverde and Santo Domingo, in addition to
continuing to evaluate the potential for Mantoverde Phase II which
could include the addition of an entire second processing line at
Mantoverde.
NATIONAL INSTRUMENT 43-101
A National Instrument 43-101 ("NI 43-101") Technical Report will
be prepared to summarize the results of the 2024 Feasibility Study
by the Qualified Persons and will be filed on SEDAR+ within 45 days
of this news release.
Readers are cautioned that the conclusions, projections and
estimates set out in this news release are subject to important
qualifications, assumptions and exclusions, all of which will be
detailed in the 2024 technical report. To fully understand the
summary information set out above, the 2024 technical report that
will be filed on SEDAR+ at www.sedarplus.ca should be read in its
entirety.
QUALIFIED PERSONS
Peter Amelunxen, P.Eng., Senior Vice President, Technical
Services of Capstone Copper, a Qualified Person (“QP”), as defined
by NI 43-101 reviewed and approved the content of this news release
that is based on the 2024 technical report.
About Capstone Copper
Corp.
Capstone Copper Corp. is an Americas-focused copper mining
company headquartered in Vancouver, Canada. We own and operate the
Pinto Valley copper mine located in Arizona, USA, the Cozamin
copper-silver mine located in Zacatecas, Mexico, the Mantos Blancos
copper-silver mine located in the Antofagasta region, Chile, and
70% of the Mantoverde copper-gold mine, located in the Atacama
region, Chile. In addition, we own the fully permitted Santo
Domingo copper-iron-gold project, located approximately 30
kilometres northeast of Mantoverde in the Atacama region, Chile, as
well as a portfolio of exploration properties in the Americas.
Capstone Copper’s strategy is to unlock transformational copper
production growth while executing on cost and operational
improvements through innovation, optimization and safe and
responsible production throughout our portfolio of assets. We focus
on profitability and disciplined capital allocation to surface
stakeholder value. We are committed to creating a positive impact
in the lives of our people and local communities, while delivering
compelling returns to investors by responsibly producing copper to
meet the world’s growing needs.
Further information is available at www.capstonecopper.com
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 Company management's expectations or
beliefs regarding future events and include, but are not limited
to, statements with respect to the estimation of mineral reserves
and mineral resources, the conversion of mineral resources to
mineral reserves, the ability to successfully complete the
strategic review process, the ability to further enhance the value
of our projects, the timing and cost of MV Optimized, the expected
timing for commencement of construction of the Santo Domingo
project, the future validity of the DL600, our ability to fund
future exploration activities, the market for project debt,
Capstone's ability to raise its equity contribution to the project,
the realization of mineral reserve estimates, the timing and amount
of estimated future production, costs of production, capital and
construction expenditures, success of mining operations, success of
mineral exploration, environmental risks, the timing of the receipt
of permits, the timing and terms of a power purchase agreement,
unanticipated reclamation expenses, title disputes or claims, and
limitations on insurance coverage. In certain cases,
forward-looking statements can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected",
"outlook", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved" or the negative of these
terms or comparable terminology. In this document certain
forward-looking statements are identified by words including
“explore”, “potential”, “will”, "scheduled", "plan", "planned",
"estimates", “estimated”, “estimate”, "projections", "projected",
“await receipt” and "expected". Forward-looking statements are
based on a number of assumptions which may prove incorrect,
including, but not limited to, the development potential of the
Santo Domingo project and the Sierra Norte project, the results of
MV Optimized, and current and future commodity prices and exchange
rates. By their very nature forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Such factors include, among others,
changes in project parameters as plans continue to be refined;
future prices of commodities; possible variations in mineral
resources and reserves, grade or recovery rates; accidents;
dependence on key personnel; labour pool constraints; labour
disputes; availability of infrastructure required for the
development of mining projects; delays in obtaining governmental
approvals, financing or in the completion of development or
construction activities; objections by the communities or
environmental lobby of the Santo Domingo mine and associated
infrastructure 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 management's discussion and
analysis of those statements, all of which are filed and available
for review on SEDAR+ at www.sedarplus.ca. Although the Company has
attempted to identify important factors that could cause actual
actions, events or results to differ materially from those
described in forward-looking statements, there may be other factors
that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward looking statements.
Non-GAAP and Other Performance Measures
The Company uses certain performance measures in its analysis.
"C1 Cash Costs" and "Total Project Operating Cost" are Non-GAAP
performance measures. 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.
Exhibit 1: Detailed Cash Flow Model and Select Key
Assumptions
TOTAL
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
Production Summary
Ore Mined (kt)
600,116
46,022
52,699
41,347
47,128
42,330
53,178
36,721
18,313
26,942
34,724
39,612
46,566
27,088
25,389
29,807
11,819
803
6,667
12,963
-
-
-
-
-
-
Leach Grade Materials Sent to
Waste (kt)
69,679
-
-
-
-
-
-
-
-
-
-
-
-
6,339
2,988
271
12,053
18,833
26,038
3,157
-
-
-
-
-
-
Waste Mined (kt)
1,545,854
86,393
93,846
105,384
99,486
104,205
94,864
110,194
128,392
119,691
108,099
97,073
95,328
83,540
69,305
52,476
36,020
34,273
16,439
10,846
-
-
-
-
-
-
Ore Rehandled (kt)
335,502
13,263
15,376
13,075
17,114
13,081
21,174
13,220
11,066
5,266
18,231
17,568
7,782
8,061
10,729
4,728
16,470
15,936
15,551
11,995
16,470
16,425
16,425
16,425
16,470
3,603
Throughput (ktpd)
n/a
33.9
44.0
44.9
45.0
44.9
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
45.0
9.9
Sulphide Ore Sent to Mill
(kt)
393,596
12,358
16,066
16,399
16,469
16,399
16,425
16,425
16,470
16,425
16,425
16,425
16,470
16,425
16,425
16,425
16,470
16,425
16,425
16,425
16,470
16,425
16,425
16,425
16,470
3,603
Cu Head Grade (%)
0.49%
0.73%
0.71%
0.75%
0.66%
0.73%
0.59%
0.72%
0.51%
0.69%
0.62%
0.53%
0.56%
0.49%
0.37%
0.46%
0.39%
0.28%
0.28%
0.34%
0.32%
0.27%
0.27%
0.27%
0.28%
0.33%
Au Head Grade (g/t)
0.09
0.11
0.10
0.09
0.11
0.14
0.11
0.15
0.09
0.13
0.12
0.11
0.11
0.11
0.08
0.10
0.08
0.07
0.07
0.08
0.09
0.07
0.07
0.07
0.07
0.07
Cu Recovery (%)
87.8%
91.3%
88.0%
88.8%
88.8%
87.5%
87.8%
87.8%
88.5%
87.8%
87.5%
83.2%
89.0%
88.3%
88.0%
87.9%
90.3%
88.1%
88.0%
88.6%
90.5%
88.0%
88.0%
88.0%
75.6%
71.3%
Au Recovery (%)
65.2%
65.7%
62.8%
68.1%
67.2%
70.8%
63.1%
71.3%
66.0%
69.3%
67.9%
64.9%
67.2%
64.1%
64.2%
68.6%
62.2%
60.9%
60.9%
63.1%
63.2%
59.7%
59.7%
59.7%
58.6%
57.5%
Cu Production (kt)
1,684.5
82.5
100.0
109.4
97.0
104.0
85.4
103.7
74.4
99.1
89.0
72.8
82.4
70.6
52.7
66.6
58.0
40.5
40.2
49.0
47.7
38.9
38.9
38.9
34.5
8.4
Au Production (koz)
788.3
27.9
31.8
33.7
37.7
52.6
35.3
54.9
31.4
48.3
43.7
36.3
38.4
35.9
26.4
35.1
26.4
22.5
22.8
27.6
28.5
21.8
21.8
21.8
20.8
4.9
Cu Payable (kt)
736.0
79.7
96.6
105.7
93.3
100.2
82.2
99.7
71.6
95.7
85.8
70.2
79.3
68.0
50.7
64.0
55.8
38.9
38.6
47.2
45.8
37.4
37.4
37.4
33.2
8.1
Cu Concentrate Grade (%)
27.1%
28.4%
28.5%
29.9%
26.7%
27.2%
26.6%
26.0%
27.1%
28.2%
28.1%
28.0%
27.4%
26.7%
26.0%
26.0%
26.0%
26.0%
26.0%
26.0%
26.0%
26.0%
26.0%
26.0%
26.0%
28.0%
Au Payable (koz)
724.2
25.2
28.6
30.4
33.9
47.4
31.8
49.5
28.3
44.9
40.7
33.8
35.7
33.4
24.6
32.7
24.5
20.9
21.2
25.7
26.5
20.2
20.2
20.2
19.3
4.5
Oxide Ore to Heap Leach (kt)
107,245
11,000
11,000
10,995
11,000
11,000
11,000
10,076
1,386
1,577
11,000
9,431
7,782
-
-
-
-
-
-
-
-
-
-
-
-
-
Soluble Cu Grade (%)
0.29%
0.28%
0.28%
0.32%
0.33%
0.29%
0.32%
0.21%
0.28%
0.28%
0.27%
0.29%
0.29%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Total Cu Grade (%)
0.38%
0.37%
0.38%
0.43%
0.48%
0.39%
0.42%
0.28%
0.37%
0.34%
0.33%
0.37%
0.38%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Soluble Recovery (%)
71.2%
72.5%
71.0%
73.6%
69.7%
70.4%
71.7%
62.9%
71.0%
74.2%
72.6%
72.1%
72.9%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Total Recovery (%)
68.4%
55.1%
73.6%
71.0%
61.1%
67.5%
76.0%
56.9%
72.6%
77.3%
77.3%
72.3%
71.3%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Soluble Leach Copper Production
(kt)
219.3
22.5
21.6
25.9
25.2
22.1
25.3
13.1
2.8
3.3
21.5
19.6
16.4
-
-
-
-
-
-
-
-
-
-
-
-
-
Total Heap Leach Copper
Production (kt)
279.9
22.5
30.4
33.2
32.5
28.6
34.8
16.1
3.7
4.1
27.6
25.2
21.2
-
-
-
-
-
-
-
-
-
-
-
-
-
Oxide Ore to Dump Leach (kt)
115,917
13,488
15,065
10,419
11,582
5,885
15,089
1,867
961
3,325
10,853
8,422
8,866
10,094
-
-
-
-
-
-
-
-
-
-
-
-
Soluble Cu Grade (%)
0.14%
0.14%
0.13%
0.13%
0.13%
0.13%
0.13%
0.14%
0.12%
0.13%
0.14%
0.14%
0.14%
0.14%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Recovery (%)
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
42.5%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Dump Leach Copper Production
(kt)
67.0
8.0
8.5
5.9
6.5
3.2
8.6
1.1
0.5
1.9
6.4
5.1
5.3
6.0
-
-
-
-
-
-
-
-
-
-
-
-
Total Copper Production (kt)
2,031.4
113.0
138.9
148.6
135.9
135.9
128.8
120.8
78.6
105.1
123.0
103.1
108.8
76.6
52.7
66.6
58.0
40.5
40.2
49.0
47.7
38.9
38.9
38.9
34.5
8.4
Revenues
Copper Price ($/lb)
$4.15
$4.30
$4.40
$4.40
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
$4.10
Gold Price ($/oz)
$1,834
$2,200
$2,100
$2,000
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
$1,800
Copper Revenues ($M)
$18,036
$1,044
$1,315
$1,405
$1,196
$1,194
$1,135
$1,056
$685
$920
$1,083
$909
$957
$668
$458
$578
$504
$352
$349
$426
$414
$338
$338
$338
$300
$73
Gold Revenues ($M)
$1,328
$55
$60
$61
$61
$85
$57
$89
$51
$81
$73
$61
$64
$60
$44
$59
$44
$38
$38
$46
$48
$36
$36
$36
$35
$8
Gross Revenue($M)
$19,364
$1,100
$1,375
$1,466
$1,257
$1,279
$1,192
$1,145
$736
$1,001
$1,157
$969
$1,021
$729
$503
$637
$548
$390
$387
$473
$462
$374
$374
$374
$335
$81
Operating Costs
Mine Operating Costs ($M)
($3,087)
($154)
($197)
($162)
($171)
($166)
($213)
($116)
($101)
($138)
($196)
($224)
($221)
($197)
($189)
($162)
($113)
($82)
($112)
($67)
($21)
($20)
($20)
($19)
($20)
($5)
Oxide Processing Costs ($M)
($1,547)
($180)
($151)
($150)
($156)
($144)
($170)
($101)
($27)
($35)
($153)
($134)
($117)
($29)
--
--
--
--
--
--
--
--
--
--
--
--
Mill Processing Costs ($M)
($3,778)
($127)
($157)
($159)
($158)
($158)
($158)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($157)
($33)
G&A Costs ($M)
($503)
($29)
($31)
($31)
($31)
($31)
($31)
($31)
($31)
($31)
($31)
($27)
($29)
($20)
($20)
($17)
($15)
($11)
($10)
($10)
($10)
($8)
($8)
($6)
($5)
($1)
TOTAL
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
Refining Charges, Treatment
Charges, Transportation Cost & Royalties
Treatment Costs ($M)
($426)
($15)
($21)
($26)
($25)
($27)
($22)
($28)
($19)
($25)
($22)
($18)
($21)
($19)
($14)
($18)
($16)
($11)
($11)
($13)
($13)
($10)
($10)
($10)
($9)
($2)
Refining Costs ($M)
($245)
($9)
($13)
($16)
($14)
($15)
($13)
($15)
($11)
($15)
($13)
($11)
($12)
($10)
($8)
($10)
($9)
($6)
($6)
($7)
($7)
($6)
($6)
($6)
($5)
($1)
Cathodes Freight & Port Costs
($M)
($40)
($4)
($4)
($5)
($4)
($4)
($5)
($2)
($0)
($1)
($4)
($3)
($3)
($1)
--
--
--
--
--
--
--
--
--
--
--
--
Concentrate Freight & Port
Costs ($M)
($561)
($36)
($44)
($47)
($30)
($32)
($27)
($33)
($23)
($29)
($26)
($22)
($25)
($22)
($17)
($21)
($19)
($13)
($13)
($16)
($15)
($12)
($12)
($12)
($11)
($2)
Royalties (Ad Valorem) ($M)
($168)
($10)
($13)
($14)
($12)
($12)
($11)
($11)
($7)
($9)
($11)
($9)
($10)
($7)
--
($6)
($5)
--
--
($4)
($4)
($3)
($3)
($3)
($3)
--
Cost Guarantee
Cost Guarantee ($M)
($17)
($0)
($0)
($0)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
Other Costs
Other Costs ($M)
($12)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
($1)
--
--
--
--
--
--
--
Capital Expenditures
Initial Capital ($M)
($146)
($103)
($43)
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
Sustaining Capital ($M)
($1,366)
($85)
($87)
($100)
($85)
($77)
($121)
($55)
($57)
($112)
($125)
($76)
($52)
($65)
($48)
($39)
($37)
($44)
($44)
($27)
($7)
($5)
($6)
($6)
($5)
($1)
Exploration ($M)
($57)
($23)
($11)
($11)
($11)
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
Deferred Stripping ($M)
($929)
($62)
($53)
($74)
($74)
($81)
($42)
($131)
($144)
($109)
($53)
($22)
($27)
($29)
--
--
($4)
($25)
--
--
--
--
--
--
--
--
Leasing ($M)
($193)
($37)
($40)
($35)
($30)
($23)
($18)
($7)
($4)
($0)
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
Closure Cost ($M)
($79)
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
($79)
Change in Working Capital
Change in Working Capital
($M)
($16)
($16)
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
--
Pre-Tax Unlevered Free Cash
Flow
Pre-Tax Unlevered Free Cash Flow
($M)
$6,194
$210
$507
$636
$453
$509
$362
$457
$153
$338
$364
$265
$345
$173
$48
$205
$173
$39
$33
$170
$227
$151
$150
$153
$118
($45)
Pre-Tax Cumulative Unlevered Free
Cash Flow ($M)
$210
$717
$1,353
$1,806
$2,315
$2,677
$3,134
$3,287
$3,625
$3,989
$4,254
$4,599
$4,772
$4,820
$5,025
$5,198
$5,238
$5,270
$5,440
$5,666
$5,818
$5,968
$6,121
$6,239
$6,194
Taxes
Unlevered Cash Taxes ($M)
($1,272)
($32)
($52)
($138)
($123)
($139)
($75)
($111)
($44)
($88)
($105)
($41)
($60)
($21)
--
($10)
($25)
($7)
--
($29)
($50)
($28)
($33)
($36)
($26)
($1)
Post-Tax Unlevered Free Cash
Flow
Post-Tax Unlevered Free Cash Flow
($M)
$4,922
$179
$455
$498
$330
$370
$286
$346
$109
$250
$259
$224
$285
$151
$48
$195
$148
$33
$33
$141
$177
$123
$117
$117
$92
($46)
Post-Tax Cumulative Unlevered
Free Cash Flow ($M)
$179
$634
$1,131
$1,461
$1,831
$2,118
$2,464
$2,573
$2,823
$3,083
$3,307
$3,592
$3,743
$3,791
$3,986
$4,135
$4,168
$4,200
$4,341
$4,518
$4,641
$4,759
$4,876
$4,967
$4,922
Cost KPI’s*
C1 Cash Costs ($ / payable lb
Cu)
$2.04
$2.05
$1.87
$1.67
$1.81
$1.68
$2.10
$1.53
$1.91
$1.56
$2.00
$2.42
$2.23
$2.42
$3.23
$2.32
$2.31
$2.82
$3.18
$2.16
$1.74
$2.15
$2.15
$2.12
$2.37
$2.05
Sulphide C1 Cash Costs ($ /
payable lb Cu)
$1.90
$1.47
$1.62
$1.34
$1.53
$1.45
$1.93
$1.28
$1.81
$1.43
$1.70
$2.32
$2.06
$2.43
$3.23
$2.32
$2.31
$2.82
$3.18
$2.16
$1.74
$2.15
$2.15
$2.12
$2.37
$2.05
Oxide C1 Cash Costs ($ / payable
lb Cu)
$2.69
$3.56
$2.50
$2.56
$2.49
$2.42
$2.41
$2.99
$3.65
$3.62
$2.76
$2.64
$2.73
$2.24
-
-
-
-
-
-
-
-
-
-
-
-
Notes:
*C1 by-product cash costs consist of mining costs, processing
costs, mine-level G&A, gold revenue credit, and
treatment/refining charges over payable copper pounds.
Production summary shown above excludes 2024 period from June 1,
2024 to December 31, 2024, and commences January 1, 2025.
PRICE DECK & MARKETING
ASSUMPTIONS
Assumption
Unit
2025
2026
2027
LT
Copper Price
$/lb
$4.30
$4.40
$4.40
$4.10
Gold Price
$/oz
$2,200
$2,100
$2,000
$1,800
Chilean Peso
CLP/USD
900
825
800
800
Sulfuric Acid
$/t
$175
$118
$113
$113
Diesel
$/l
$0.76
$0.71
$0.66
$0.66
Power
$/kwh
$0.11
$0.11
$0.11
$0.11
Copper Treatment Charges
$/dmt
$50
$60
$70
$70
Copper Refining Charges
$/lb Cu
$0.05
$0.06
$0.07
$0.07
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241001413263/en/
Jerrold Annett, SVP, Strategy & Capital Markets 647-273-7351
jannett@capstonecopper.com
Daniel Sampieri, Director, Investor Relations & Strategic
Analysis 437-788-1767 dsampieri@capstonecopper.com
Michael Slifirski, Director, Investor Relations, APAC Region
61-412-251-818 mslifirski@capstonecopper.com
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