TSX: CMMC | ASX: C6C
Q4 2019 Financial & Operating Results Conference CallFebruary 18, 2020
Forward Looking InformationThis presentation contains certain statements that may be deemed "forward-looking statements." All statements in this presentation, other than statements of historical fact, that address
exploration drilling, exploitation activities, and events or developments that the Company expects to occur, are forward-looking statements. Future estimates regarding production, capital
and operating costs are based on NI 43-101 Technical Reports and on mine plans and production schedules, which have been developed by the Company's personnel and independent
consultants. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes",
"intends", "estimates", "projects", "potential", "targets" and similar expressions, or that events or conditions "will", ''would'', "may”, "could", or "should" occur. Information inferred from the
interpretation of drilling results and information concerning mineral resource estimates may also be deemed to be forward-looking statements, as it constitutes a prediction of what might
be found to be present when and if a project is actually developed. Although the Company believes the expectations expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that
could cause the actual results to differ materially from those in forward-looking statements include, but are not limited to: general business, economic, competitive, political and social
uncertainties; the limited operating history of the Company; actual results of reclamation activities; conclusions of economic evaluations; fluctuations in the value of the Canadian dollar
relative to the United States dollar; fluctuations in the value of the Australian dollar relative to the United States dollar; changes in project parameters as plans continue to be refined;
failure of equipment or process to operate as anticipated; changes in labor costs and other costs and availability of equipment or processes to operate as anticipated; accidents, labor
disputes and other risks of the mining industry, including but not limited to environmental hazards, cave-ins, pit-wall failures, flooding, rock bursts and other acts of God or unfavorable
operating conditions and losses, detrimental events that interfere with transportation of concentrate or the smelters ability to accept concentrate, including declaration of Force Majeure
events, insurrection or war; delays in obtaining governmental approvals or revocation of governmental approvals; title risks and Aboriginal land claims; delays or unavailability in financing or
in the completion of development or construction activities; failure to comply with restrictions and covenants in senior loan agreements, actual results of current exploration activities;
volatility in Company's publicly traded securities; and the factors discussed in the section entitled "Risk Factors" in the Company's annual information form and in the Company's continuous
disclosure filings available under its profile on SEDAR at www.sedar.com. Investors are cautioned that any such statements are not guarantees of future performance and actual results or
developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the
Company's management on the date the statements are made. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to
update any forward-looking statements, except in accordance with applicable securities laws.
Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources. This discussion uses the terms "measured resources" and "indicated resources". The Company
advises investors that while those terms are recognized and required by Canadian regulations, the US Securities and Exchange Commission does not recognize them. Investors are
cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves."
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Speakers
Gil Clausen President and CEO
Rod ShierChief Financial Officer
Don StricklandChief Operating Officer
Highlights
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2019 Highlights
Production of 87 million pounds of copper equivalent
72 million pounds of copper
26,746 ounces of gold
271,835 ounces of silver.
Cash costs of
C1 cash cost of US$1.92 per lb
All-in sustaining cost (AISC) of US$2.06 per lb
All-in cost (AIC) of US$2.44 per lb.
Revenue of $288 million.
Cash flow from operations of $51 million.
Cash equivalents of $32.1 million.
Improved working capital by $101 million with the extension of Mitsubishi’s related party short term notes to long term debt.
Copper Production Guidance (Mlbs)
Cost Guidance (US$/lb of copper)
2019A 2020E
C1 cash costs (US$/lb) $1.92 $1.30 to $1.45
AISC (US$/lb) $2.06 $1.40 to $1.60
AIC costs (US$/lb) $2.44 $1.95 to $2.20
Operational Highlights
Don Strickland, Chief Operating Officer
Q4 and 2019 Mining Activities
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CANADA Mined 14.6M tonnes in Q4 and 62.1M tonnes in 2019
o 3.9M tonnes of ore and 10.7M tonnes of waste in Q4
o 12.5M tonnes of ore and 49.6M tonnes of waste in 2019
Significantly reduced strip ratio in Q4 as Copper Mountain
transitions to higher grade ore (to continue in 2020 and
2021, primarily from south side of the Main Pit.)
Haul Truck Trolley Assist Trial
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Reduction of greenhouse gas emissions
Reduction of fuel costs
Increased Haul Truck speed/productivity
New Ingerbelle
Q4 and 2019 Processing Metrics
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Q4 2019 2019
Tonnes milled (000’s) 3,733 14,643
Tonnes milled (TPD) 40,576 40,118
Feed grade (Cu %) 0.31% 0.29%
Recovery (%) 73.0% 77.8%
Operating time (%) 93.1% 93.2%
38.9 38.6 39.8 40.1
0
5
10
15
20
25
30
35
40
45
2016 2017 2018 2019
Average Daily Tonnes Milled (000)
Consistent Performance
Mineralogy
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Project Update
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45,000 tpd mill expansion
Ball Mill 3 installation and commissioning on track for Q4 2020
Blue = Required for 45ktpd Mill Expansion
ESG Focus
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Committed to achieving Mining Association of Canada (MAC) Towards Sustainable Mining (TSM) standard
Confirming “AA” Tailings Management Rating in early 2020
Target to achieve a “AA” or “A” Rating on all other TSM Protocols over 2020-2021
Progressive Reclamation
Focus on Reducing Greenhouse Gas Emissions –Trolley Assist Trial
Strong Community Commitment
Successful Reclamation of Waste Dumps at Copper Mountain Mine
Financial HighlightsRod Shier, Chief Financial Officer
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Q4 and FY 2019 Financial Results
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All $ in Canadian Dollars Q4 2019 Q4 2018 2019 2018
Sales:
Copper (klbs) 17,598 19,431 71,898 79,195
Gold (oz) 6,008 7,475 26,478 26,799
Silver (oz) 76,847 69,761 254,541 284,086
Realized Metal Prices
Copper (per lb) $2.67 $2.81 $2.73 $2.98
Gold (per oz) $1,481 $1,229 $1,381 $1,273
Silver (per oz) $17.11 $14.48 $16.19 $15.58
Revenue $73.7M $73.1M $288M $296M
Cost of Sales $72.1M $65.3M $263M $270M
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All $ in Canadian Dollars Q4 2019 Q4 2018 2019 2018
Gross Profit $1.6M $7.9M $25.1M $25.3M
Net (Loss) $(35.7)M $(19.0)M $(25.9)M $(26.9)M
Loss per Share $(0.14) $(0.09) $(0.12) $(0.13)
Adjusted Net Earnings/(Loss) (1) $1.3M $(1.4)M $0.8M $3.4M
Adjusted Earnings (Loss) per Share $0.01 $(0.01) $0.00 $0.02
EBITDA(1) $(35.3)M $(0.2)M $3.6M $40.7M
Adjusted EBITDA(1) $1.7M $17.3M $30.4M $70.8M
Cash flow from operations $4.3M $28.8M $51.2M $51.3
Cash and cash equivalents $32.1M $46.1M
1. Non-GAAP performance measure. See CMMC’s Q4 2019 MD&A for details.
Q4 and FY 2019 Financial Results
Subsequent to year end, Working Capital Improved by $101M with Extension of Mitsubishi Related Party Short-term Notes to Long-term Debt
Looking ForwardGil Clausen, Chief Executive Officer
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Growth Catalysts
Eva Copper Bankable Feasibility Study Q1 2020
Commissioning of DFRs at Copper Mountain Mine (CMM) Mid-2020
Commissioning of Third Ball Mill at CMM Q4 2020
Updated Mineral Reserve and Mineral Resource for CMM Q4 2020
Pre-feasibility Study on 60-70ktpd Mill Expansion at CMM Q4 2020
TSX: CMMC | ASX: C6C
Copper Mountain Mining Corporation
1700-700 Pender Street
Vancouver, B.C.
Investor Relations
Letitia WongVice President, Corporate Development & Investor Relations
T: (604) 682-2992 Ext 226E: [email protected]
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