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8/10/2019 Copper Mountain August 2014 Corp Pres
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Focused on StrategicGrowth
August 2014 Presentation
8/10/2019 Copper Mountain August 2014 Corp Pres
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This presentation includes and is based on ourcompleted Feasibility Study, 2012 Forecasts and otherinformation that may contain forward-lookinginformation and statements that are subject to risks anduncertainties. Therefore, all statements, other thanstatements of historical fact, are to be considered
forward looking. Such forward-looking information andstatements are based on current expectations, forecasts,estimates and projections about global and regionaleconomic conditions as well as industries that are majormarkets for Copper Mountain Mining Corporation. Therecan be no assurances that such statements will proveaccurate and, therefore, readers are cautioned that suchstatements may differ materially from actual futureevents. Readers are referred to the documents, filed by
the Company on Sedar at www.Sedar.com, and morespecifically such recent reports that identify importantrisk factors that could cause actual results to differ fromthose contained in the forward-looking statements.
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http://www.sedar.com/http://www.sedar.com/http://www.sedar.com/8/10/2019 Copper Mountain August 2014 Corp Pres
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A Canadian Copper Producer
Exploration Feasibility/Financing Construction Operation
Ongoing evaluations of acquisition and mergeropportunities that can add shareholder value
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2007-2008 2008-2009 2010-2011 2012-2013
Ramp up
2011-2012
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Analyst CoverageBMO Capital Markets
BOA- Merrill Lynch
Canaccord Genuity
CIBC World Markets
Cormark Securities
DesjardinsDundee Securities
GMP Securities
Haywood Securities
Jennings Capital
Laurentian Bank
Mackie Research
National Bank Financial
Paradigm Capital
Raymond James
Scotia Capital
UBS Securities
Shares Outstanding 119 M
Options Outstanding 6 M
Fully Diluted Shares Outstanding 125 M
Market Capitalization (July 2014) $360 M
Year Hi - Lo Trading Range $1.36 $3.15
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1. Production Maximization
Prudent utilization of capital to expandproduction
Operational improvements underway to
enhance cash flow
Maximize NAV, earnings & cash flow on a per
share basis2. Organic Growth
Expand Mill Capacity (+ 35,000tpd)
Significant exploration potential3. Capitalize on Strengths
Development success Operational & cost efficiencies
Financing capabilities4. Project & Geographic Focus
Poly metallic & precious metals
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Business Strategy
1. Strong operationalbase
2. Organic &
sustainable growth
3. M&A/ JVopportunities
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Mine Life 17 years +
Mining method Open Pit (truck & shovel )
Target operating throughput 35,000TPD
Mining rate (average) 175,000TPD
Strip ratio 2:1 (LOM)
Copper head grade 2014 guidance 0.375% range
Production 2014 guidance (Lbs Cu) 80 - 90 million
By-products Au, Ag
Off-take agreement 100% to Mitsubishi with metal sales
based on LME pricing
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2 x PC 8000 Hydraulic shovels1 x EX 5500 Hydraulic shovel15 x 830E 240 Ton Haul Trucks6 x 260 Ton Haul trucks1 x WA 1200 Loader4 x D375 Dozers3 x 16M Graders2 x AC271 Drills2 x AC351 DrillsOVER $100 Mil MOBILE EQUIPMENT
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2 additional 830E 240 ton haul trucksJune 2014
New mine dispatch system
June 2014
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5 bay truck shop for plannedmaintenance of mobile mineequipment
60 x 89 Primary Gyratory Crusherto reduce ore to 5.5 inch range
35,000 TPD concentrator with 61MW sub-station connected to B.C.Hydro power grid
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Primary crusher capacity increased to 3,000tpohJune 2014
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34 ft diameter x 20 ft SAG Mill17,000hp
Two 24 ft diameter by 40 ft Ball Mills17,000hp each
10- 160 CM rougher flotation &5 cleaner scavenger cells
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Mill expert system for improved automation on grinding
and flotation
June 2014
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Strengthened management team atthe mine
Achieved record copper production
Attained significant operationalimprovements :
o Mill throughputo Mill availabilityo Copper recovery
o Copper production
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1. Complete the installation of secondarycrusher on time and on budget
2. Increase ore processing capacity toaverage 35,000 tpd or greater in H2
3. Achieve copper production guidance of80-90 million lbs
4. Install a mine dispatch system to improvethe efficient utilization of mineequipment
5. Enhance the mill expert system tomaximize performance
6. Continue with exploration programsfocused on organic growth and newdiscoveries
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Production Start up -July 2011
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Q2 2014 - new mine site dispatch system
implemented to improve utilization ofmine equipment
Q2 2014 - two new 240 ton haul trucks were
added to the mining fleet
Significant improvement in tire life has
resulted in lower unit operating costs
During 2014 Q2
Mining activities continued to shiftmore towards Pit 3
Q2 averaged approx. 174,000 tonnesof material per day
MINE
Q2 2014 Q2 2013
Total tonnes mined (000's) 16,086 14,731
Ore tonnes mined (000's) 4,616 4,406
Waste tonnes (000's) 11,470 10,326
Stripping ratio 2.48 2.34
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2014 Q2 marked the 7thconsecutive quarter of improved copper production 19.9 million lbs Cu, 5,000 oz Gold, 113,300 oz Silver
The average copper feed grade for 2014 Q2 was 0.39% Cu Mill expert system fully operational during 2014 Q2 Secondary crusher construction completed on budget and on schedule Jul 2014 Discontinuation of contract crushing & portable crushing will reduce costs.
MILL
Q2 2014 Q2 2013
Tonnes milled (000's) 2,771 2,464
Feed grade (Cu%) 0.39% 0.33%
Recovery (%) 83.9% 87.2%
Operating time (%) 90.1% 86.6%Tonnes milled (tpd) 30,477 27,302
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CuMtn Mine(100% Basis) Q2-14 2Q- 13
Total tonnes mined (000s) 16,086 14,731
Ore tonnes mined (000's) 4,616 4,406
Waste tonnes (000's) 11,470 10,326
Stripping ratio 2.48 2.34
Tonnes milled (000's) 2,771 2,464
Ore grade (Cu %) 0.39% 0.33%
Recovery (%) 84% 87%
Operating time (%) 90.1% 86.6%
Mill throughput (tpd) 30,477 27,302
Copper production (000's lbs) 19,900 15,700
Gold production (oz) 5,000 5,600
Silver production (oz) 113,300 71,000
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+40%
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3,000 tpoh
minus 2 ore
New drive & transfer
Buffer stock pile
New crusher facility
New secondary crusher wascommissioned in the first week of August2014, on budget and on schedule
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Increased mill throughput
Increased throughput and increased
copper production
Consistency in operating performance
Better predictability of SAG mill
operating performance
Improved cash flow
Increased metal production generates
increased revenue
Lower unit copper cost
Increased copper production translates
to lower unit operating costs
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The new secondary crusher processed its first ore onAugust 3rd 2014.
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2014 Copper Production 80-90 million lbs
Mill throughput using portable crushers 32,000 tpd
Mill throughput after permanent crusher start up 35,000 tpd
Feed grade (Cu%) 0.375%
Q2 YTD production results 39 million lbs
Q2 YTD Feed grade (Cu%) 0.39%
Installation of secondary crusher is complete and commissioning is underway
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Q2-14 Q2-13 H2-14 H2-13
Cu sold (million lbs) 18.0 14.7 37.8 29.9
Sales revenue ($ million) $68.0 $45.7 $129.2 $100.8
Gross Profit ($ million) $10.4 ($1.6) $11.5 $6.4
Net Income ($ million) $13.3 ($12.1) ($2.3) ($14.4)
EBITDA2 $25.3 ($3.0) $20.1 $4.5
Cash flow from operating activities beforechanges in working capital items
$17.5 $5.9 $26.1 $18.5
Site cash cost / pound of Cu produced (US$) 3 $1.63 $1.81 $1.64 $1.72
Total cash cost / pound of Cu sold (US$) 3 $2.27 $2.32 $2.18 $2.25
Average realized Cu Price (US$) $3.08 $3.18 $3.14 $3.37
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2 Earnings before interest, taxes, depreciation and amortization3 Net of precious metal credits (US)
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Exploration: Unfinished Business
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Increase resource/reserve - longer mine life
and/or expansionRequired to determine ultimate pit limits
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Copper Mountain Trend
Alabama Trend
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IP Chargeability -
Plan view slice
at 1000m
(approx. 100m
below surface )
Large resource provides
strong base for further
project optionality and
longevity
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Oriole
Alabama VoigtVirginia
Orinoco
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Near Term Goals:
Expand Pit 2 to northwest and to depth Convert Inferred to M+I below Pit 2 Expand/upgrade existing resources on site
Longer Term Goals:
Establish a reserve base sufficient to sustain millingfor 25+ years
Explore and convert Inferred to M+I at depth in Pit 3
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Location: 20km north of Princeton Ownership: Option to earn 75%
interest . Historical Resource: 71Mt @ 0.38% Cu
(0.25% c/o Inferred) Target:Alkalic Cu-Au Porphyry
Deposit
Plan:Leverage off of Xstratas $500Kof exploration work in 2012, drill testuntested IP anomalies.
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Copper MtnIP Chargeability
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1980 Noranda drill hole 30m ~1%Zn, 30g/t Ag
100m west of section
Location: 30km south of Houston, BC
Ownership: Option to earn 100%interest subject to 1.5% NSR (with
buyout) over 5 years.Target: Blackwater type Au-Agdeposit (>2M oz Au open pit)Plan: drill test IP/geochem targets
2013 3d-IP inversion
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Disciplinedcapital
management
ImproveOperating
efficienciesGroworganically
Seek accretiveopportunities
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Actively perusing acquisition opportunities
Politically stable jurisdictions
Capitalize on development skills Prudent capital use
Maximize return on equity
Mining productivity
Processing optimization
Responsible & safe mining
practices
Expand resource
Identified drill targets
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Cash flow
positiveSafe Mining
jurisdiction
Production
increasing
Significant
exploration
upside
Attractive
valuation
Cu production 2012 = 57 million lbs 2013 = 66 million lbs 2014e= 80 -90 mil lbs
+ gold & silver credits
Secondary crusherinstallationcompleted Aug 2014
2012 explorationprogram confirmedmineralization extendsbelow current pit limits
Large copper resource Axe & Fenton JV Opps
Princeton, BC Mining friendly
jurisdiction
Additional highlights : Strategic partnership with Mitsubishi Materials Corporation (25% partner) Attractive debt package / no hedging in place Goal orientated management team to maximize production
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High leverage to Cu Minimal shares issued
& outstanding
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Focused on :
Safe & Favorable Working Environment
Increasing Copper Production Continued Resource Growth
Contact Information: Suite 1700700 West Pender StreetVancouver, BC V6C 1G8 Ph (604) 682-2992
Fax (604) 682-2993 Email [email protected]
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