Capstone Copper Provides 2024 Guidance and Announces
1 Production guidance as most recently disclosed in the Company’s Management Discussion and Analysis for the three and nine months ended
September 30, 2023.
2 These are alternative performance measures. Refer to the section entitled “Alternative Performance Measures” in the Cautionary Notes.
3 Full year 2023 and Q4 2023 C1 Cash Costs are preliminary and unaudited. Final results will be released on February 22, 2024.
January 24, 2024
Capstone Copper Provides 2024 Guidance and Announces
2023 Production Results
All amounts in US$ unless otherwise indicated
Vancouver, British Columbia – Capstone Copper Corp. (“Capstone” or the “Company”) (TSX:CS) today
announced consolidated copper production for 202 3 and provided operations and capital expenditure
guidance for 2024.
2023 Consolidated Copper Production and Costs Highlights
Capstone achieved its pr oduction guidance1 for the year ended December 31, 202 3. Consolidated copper
production was 164,353 tonnes at C1 cash costs2,3 of approximately $2.85 to $2.90 per payable pound of
copper. For Q4 2023, consolidated copper production was 44,103 tonnes at C1 cash costs2,3 of approximately
$2.65 to $2.70 per payable pound of copper.
John MacKenzie, CEO of Capstone, commented, “The fourth quarter was our best of the year, with
consolidated production up 10% and cash costs down approximately 7% quarter-over-quarter, setting us up
well for a strong 2024. We expect this year to be a tale of two halves, with H2 providing a glimpse of our new
run-rate production and cost performance following the ramp -up of the Mantoverde Development Project
(“MVDP”). In the first half of 2024, in addition to the ramp-up at MVDP, we will also be focused on maintaining
consistently strong production at Pint o Valley and achieving the installed throughput capacity at Mantos
Blancos.”
Summary of 2023 copper production:
Q4 2023 Copper
Production
(tonnes)
Full Year 2023 Copper
Production (tonnes)
Sulphides Business
Pinto Valley 15,933 55,090
Cozamin 6,564 24,340
Mantos Blancos 9,664 38,002
Total Sulphides 32,161 117,432
Cathode Business
Mantoverde4 10,019 35,401
Mantos Blancos 1,923 11,520
Total Cathodes 11,942 46,921
Consolidated Copper Production 44,103 164,353
Table footnotes:
4 Mantoverde production shown on a 100% basis.
NEWS RELEASE
TSX:CS ● capstonecopper.com
2 These are alternative performance measures. Refer to the section entitled “Alternative Performance Measures” in the Cautionary Notes.
2024 Production and Costs Guidance
Capstone first half (H1), second half (H2) 2024, and full year 2024 production and cost guidance are as follows:
H1 2024 H2 2024 Full Year 2024 Guidance
Copper
Production
(‘000s
tonnes)
C1 Cash
Costs2
(US$ per
payable lb Cu
Produced)5
Copper
Production
(‘000s
tonnes)
C1 Cash
Costs2
(US$ per
payable lb Cu
Produced)5
Copper
Production
(‘000s
tonnes)
C1 Cash
Costs2
(US$ per
payable lb Cu
Produced)5
Sulphides Business
Pinto Valley 28 – 30 $2.60 – $2.80 30 – 34 $2.40 – $2.60 58 – 64 $2.50 – $2.70
Cozamin 11 – 12 $1.90 – $2.10 11 – 12 $1.85 – $2.05 22 – 24 $1.85 – $2.05
Mantoverde4 –6 –6 25 – 35 $1.45 – $1.75 25 – 356 $1.45 – $1.756
Mantos Blancos 20 – 24 $2.55 – $2.75 23 – 25 $1.90 – $2.10 43 – 49 $2.10 – $2.30
Total Sulphides 59 – 66 $2.45 – $2.65 89 – 106 $2.00 – $2.20 148 – 172 $2.10 – $2.30
Cathode Business
Mantoverde4 18 – 20 $3.35 – $3.55 18 – 20 $3.10 – $3.30 36 – 40 $3.20 – $3.40
Mantos Blancos 3 – 4 $2.85 – $3.05 3 – 4 $2.10 – $2.30 6 – 8 $2.45 – $2.65
Total Cathodes 21 – 24 $3.25 – $3.45 21 – 24 $2.90 – $3.10 42 – 48 $3.10 – $3.30
Consolidated
Copper Production
80 – 90 $2.65 – $2.85 110 – 130 $2.10 – $2.30 190 – 220 $2.30 – $2.50
Table footnotes:
4 Mantoverde production shown on a 100% basis.
5 Key C1 cash costs2 input assumptions include: CLP/USD: 875:1; MXN/USD: 18:1; Silver: $23/oz; Gold: $1,850/oz;
Molybdenum: $18/lb.
6 Production and C1 cash costs2 guidance not provided during the ramp-up of Mantoverde Development Project in H1 2024.
Pinto Valley: An increase in copper production compared to 2023 is forecasted based on higher mill
availability. Copper grades and recoveries are expected to be relatively consistent year-over-year. Production
is weighted towards the second half of the year driven by higher copper grades.
Cozamin: Production is expected to be similar compared to 2023. Costs in 2024 are forecasted to be higher
than those in 2023 driven by a higher proportion of cut-and-fill mining methods compared to longhole stoping,
along with a stronger Mexican peso.
Mantoverde: Production volumes at Mantoverde are forecasted to significantly increase in 2024 driven by the
ramp-up of MVDP. The Company has not provided sulphide production or C1 cash cost2 guidance for the first
half of the year during the commissioning and ramp -up period. MVDP is based on a conventional flowsheet
and the Company expects a typical project ramp-up led by Ausenco and Capstone’s operating team. First ore
was fed through the primary crushing circuit during Q4 2023. First ore to the grinding circuit is expected during
Q1 2024. First saleable concentrate is expected during Q2 2024.
For the second half of the year, Capstone has provided Mantoverde sulphides copper production guidance of
25 to 35 thousand tonnes of copper. Capstone expects the sulphide conc entrator to achieve its nameplate
operating throughput rates during Q3 2024.
Cathode production is expected to be consistent year -over-year, with a decline in costs driven by lower
sulphuric acid prices and an allocation of certain overhead costs to the sulphide business.
2 These are alternative performance measures. Refer to the section entitled “Alternative Performance Measures” in the Cautionary Notes.
Mantos Blancos: Production volumes at Mantos Blancos are forecasted to increase in 2024 due to higher
mill throughput. During the first half of 2024, the focus will be on receiving and installing the engineering and
infrastructure upgrades in the tailings dewatering area of the plant. The Company expects Mantos Blancos to
achieve its nameplate operating throughput rates late in the second quarter. Sulphide costs are expected to
decrease in the second half of the year driven by higher production volumes.
2024 Capital and Exploration Guidance
In 202 4, the Company plans to spend a total of $ 275 million in sustaining and expansionary capital
expenditures at its operating mines and the Santo Domingo Project. This is broken down into $195 million on
sustaining capital and $80 million on expansionary capital, of which $65 million relates to MVDP. The MVDP
total capital cost estimate of $870 million is unchanged. The sustaining and expansionary capital expenditures
guidance includes $60 million of spending related to ESG initiatives, largely related to strengthening tailings
storage facilities at Pinto Valley, Mantoverde, and Mantos Blancos, as well as improving tailings stewardship
as the Company works towards implementing the Global Industry Standard for Tailings Management by year
end 2028. Mantos Blancos sustaining capital spend includes approximately $35 million to achieve sustainable
nameplate operating rates, including $15 million identified above related to tailings.
At Santo Domingo, we plan to spend $15 million in 2024 to complete the Feasibility Study, which will be
released by mid-2024. During 2024, the Company plans to progress project partnership discussions and its
financing strategy. A potential project sanctioning decision is not anticipated prior to mid-2025.
Pinto
Valley Cozamin Mantoverde* Mantos
Blancos
Santo
Domingo Total
Capital Expenditure ($ millions)
Sustaining Capital2 70 25 40 60 - 195
Expansionary Capital2 - - 65 - 15 80
Total Capital Expenditures 70 25 105 60 15 275
*Mantoverde shown on a 100% basis
In addition, the Company plans to spend a total of $ 180 million in capitalized stripping at its three open pit
mines.
Pinto Valley Mantoverde* Mantos Blancos Total
Capitalized Stripping ($ millions) 40 75 65 180
*Mantoverde shown on a 100% basis
A portion of waste material mined at the Mantos Blancos and Mantoverde mines in 2024 is considered eligible
for capitalization as a stripping asset under Capstone’s accounting policies. In the Mantoverde and Mantos
Blancos technical reports dated November 29, 2021, the costs associated with mining this waste material
were considered to be operating costs. Total tonnes mined and rehandled have not changed significantly
compared to the technical reports, only the classification between operating costs and capitalized stripping.
Finally, the Company plans to spend $ 15 million in brownfield and greenfield exploration activities in 202 4.
The brownfields exploration is focused on resource conversion at Pinto Valley , Mantoverde, and Mantos
Blancos. The greenfield exploration relates to expansionary work at Mantoverde.
2024 Key Catalysts
2024 will be a catalyst-rich year with the following milestones and studies expected to be delivered.
H1 2024:
• Mantoverde Development Project Ramp-up
• Santo Domingo Feasibility Study
• MVDP Optimized Feasibility Study
4
H2 2024:
• Mantoverde Cobalt Study
2023 Year-end Results Announcement and Conference Call
Capstone will release its 202 3 Full-year results on Thursday, February 22, 2024 prior to market open.
Management will host an investor conference call on Thursday, February 22, 2024 at 11:00 am ET/8:00 am
PT. Details to join the call are as follows:
2023 Year-end Webcast and Conference Call Details
Conference call webcast link: https://app.webinar.net/GjLvY9eYlKp
To connect by phone:
To instantly join the conference call by phone, please use the following URL https://emportal.ink/488sxdC to
easily register yourself and be connected into the conference call automatically .
You can also dial direct to be entered to the call by the operator:
Toronto: (+1) 416-764-8650
Vancouver: (+1) 778-383-7413
North America toll free: 888-664-6383
An audio replay of the conference call will be available until February 29, 2024.
Replay Dial-in Numbers
Toronto: (+1) 416-764-8677
North America toll free: 888-390-0541
Code: 862300#
After the replay expiration, an audio file will be available on Capstone’s website at Capstone Copper - Events
and Presentations. Further information is available at www.capstonecopper.com
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, optimi zation 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 sustainably producing copper to meet the
world’s growing needs.
Further information is available at www.capstonecopper.com
Contact Information
Jerrold Annett, SVP, Strategy & Capital Markets
5
647-273-7351
Daniel Sampieri, Director, Investor Relations & Strategic Analysis
437-788-1767
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 our expectations or
beliefs regarding future events.
In certain cases, forward -looking statements can be identified by t he use of words such as “anticipates”,
“approximately”, “believes”, “budget”, “estimates”, expects”, “forecasts”, “guidance”, intends”, “plans”,
“scheduled”, “target”, or variations of such words and phrases, or statements that certain actions, events or
results “be achieved”, “could”, “may”, “might”, “occur”, “should”, “will be taken” or “would” or the negative of
these terms or comparable terminology. In this document certain forward-looking statements are identified by
words including “anticipated”, “exp ected”, “guidance” and “plan”. By their very nature, forward -looking
statements involve known and unknown risks, uncertainties and other factors that may cause our actual
results, performance or achievements to be materially different from any future resul ts, performance or
achievements expressed or implied by the forward-looking statements. Such factors include, amongst others,
the timing and results of the Santo Domingo Feasibility Study, the timing and results of the MVDP Optimized
Feasibility Study, the timing and results of the Mantoverde Cobalt Study, the timing and results of the Pinto
Valley District Growth Study, the success of the Mantoverde Development Project Ramp-up, risks related to
inherent hazards associated with mining operations, foreign currency exchange fluctuations, changes in
interest rates, future prices of copper and other metals , increasing input costs, surety bonding, our ability to
raise capital, Capstone’s ability to acquire properties for growth, counterparty risks associated with the sales
of our metals, use of financial derivative instruments and associated counter party risks, accuracy of Mineral
Resource and Mineral Reserve estimates, availability and quality of water, operating in foreign jurisdictions
with risk of changes to governmental regulation, changes in tax regimes we are subject to, compliance with
governmental regulations, compliance wit h environmental laws and regulations, compliance with financial
covenants, reliance on approvals, licences and permits from governmental authorities and potential legal
challenges to permit applications, contractual risks, impact of climate change and chan ges to climatic
conditions at our operations and projects, changes in regulatory requirements and policy related to climate
change and greenhouse gas (“GHG”) emissions, land reclamation and mine closure obligations, introduction
or increase in carbon or ot her “green” taxes, aboriginal title claims and rights to consultation and
accommodation, the impact of communicable disease outbreaks on our workforce, risks related to
construction activities at our operations and development projects, suppliers and other essential resources
and what effect those impacts, if they occur, would have on our business, including our ability to access goods
and supplies, the ability to transport our products and impacts on employee productivity, the risks in connection
with the operations, cash flow and results of Capstone Copper relating to the unknown duration and impact of
the epidemics or pandemics, impacts of inflation, geopolitical events and the effects of global supply chain
disruptions, increased cost of reclamation, uncertainties and risks related to the potential development of the
Santo Domingo project, increased operating and capital costs, challenges to title to our mineral properties,
increased taxes in jurisdictions the Company operates or is subject to tax, any changes in law or interpretation
6
of law may be difficult to react to in an efficient manner, maintaining ongoing social licence to operate,
seismicity and its effects on our operations and communities in which we operate, our ability to successfully
implement the Global Industry Standard for Tailings Management , dependence on key management
personnel, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations
inherent in our insurance coverage, labour relations, competition in the mining industry including but not limited
to competition for skilled labour, risks associated with joint venture partners and non-controlling shareholders
or associates, our ability to integrate new acquisitions and new technology into our operations, cybersecurity
threats, legal proceedings, 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 MD&A of those statements and Annual
Information Form, all of which are filed and available for review under the Company’s profile on SEDAR+ at
www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause our
actual results, performance or achievements to differ materially from those described in our forward -looking
statements, there may be other factors that cause our results, performance or achievements not to be as
anticipated, estimated or intended. There can be no assurance that our forward-looking statements will prove
to be accurate, as our actual results, perfor mance or achievements could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking
statements.
CAUTIONARY NOTE TO UNITED STATES INVESTORS REGARDING PRESENTATION OF MINERAL
RESERVE AND MINERAL RESOURCE ESTIMATES
As a British Columbia corporation and a “reporting issuer” under Canadian securities laws, we are required to
provide disclosure regarding our mineral properties in accordance with Canadian National Instrument 43-101
– Standards of Disclosure for Mineral Projects (“NI 43-101”). NI 43-101 is a rule developed by the Canadian
Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and
technical information concerning mine ral projects. In accordance with NI 43 -101, we use the terms mineral
reserves and resources as they are defined in accordance with the CIM Definition Standards on mineral
reserves and resources (the “CIM Definition Standards”) adopted by the Canadian Insti tute of Mining,
Metallurgy and Petroleum. In particular, the terms “mineral reserve”, “proven mineral reserve”, “probable
mineral reserve”, “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred
mineral resource” used in this annual information form and the documents incorporated by reference herein
and therein, are Canadian mining terms defined in accordance with CIM Definition Standards. These
definitions differ from the definitions in the disclosure requirements promu lgated by the SEC. Accordingly,
information contained in this annual information form and the documents incorporated by reference herein
may not be comparable to similar information made public by U.S. companies reporting pursuant to SEC
disclosure requirements.
United States investors are also cautioned that while the SEC will now recognize “measured mineral
resources”, “indicated mineral resources” and “inferred mineral resources”, investors should not assume that
any part or all of the mineralization in these categories will ever be converted into a higher category of mineral
resources or into mineral reserves. Mineralization described using these terms has a greater amount of
uncertainty as to their existence and feasibility than mineralization that has been characterized as reserves.
Accordingly, investors are cautioned not to assume that any “measured mineral resources”, “indicated mineral
resources”, or “inferred mineral resources” that we report are or will be economically or legally mineable.
Further, “inferred resources” have a greater amount of uncertainty as to their existence and as to whether they
can be mined legally or economically. Therefore, United States investors are also cautioned not to assume
that all or any part of the inferred resourc es exist. In accordance with Canadian rules, estimates of “inferred
mineral resources” cannot form the basis of feasibility or other economic studies, except in limited
circumstances where permitted under NI 43-101.
7
COMPLIANCE WITH NI 43-101
Unless otherwi se indicated, Capstone Copper has prepared the technical information in this document
(“Technical Information”) based on information contained in the technical reports, Annual Information Form
and news releases (collectively the “Disclosure Documents”) ava ilable under Capstone Copper’s company
profile on SEDAR+ at www.sedarplus.ca. Each Disclosure Document was prepared by or under the
supervision of a qualified person (a “Qualified Person”) as defined in National Instrument 43-101 – Standards
of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43 -101”). Readers are
encouraged to review the full text of the Disclosure Documents which qualifies the Technical Information.
Readers are advised that Mineral Resources that are not Mine ral Reserves do not have demonstrated
economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should
not be read or relied upon out of context. The Technical Information is subject to the assumptions and
qualifications contained in the Disclosure Documents.
Disclosure Documents include the National Instrument 43 -101 compliant technical reports titled “NI 43 -101
Technical Report on the Cozamin Mine, Zacatecas, Mexico” effective January 1, 2023, “NI 43-101 Technical
Report on the Pinto Valley Mine, Arizona, USA” effective March 31, 2021, “Santo Domingo Project, Region III,
Chile, NI 43 -101 Technical Report” effective February 19, 2020, and “Mantos Blancos Mine NI 43 -101
Technical Report Antofagasta / Región de Antofag asta, Chile” and “Mantoverde Mine and Mantoverde
Development Project NI 43 -101 Technical Report Chañaral / Región de Atacama, Chile”, both effective
November 29, 2021.
The disclosure of Scientific and Technical Information in this document was reviewed and approved by Clay
Craig, P.Eng., Director, Mining & Strategic Planning (technical information related to Mineral Reserves at Pinto
Valley and Cozamin), and Cashel Meagher, P.Geo., President and Chief Operating Officer (technical
information related to proj ect updates at Santo Domingo and Mineral Reserves and Resources at Mantos
Blancos and Mantoverde) all Qualified Persons under NI 43-101.
ALTERNATIVE PERFORMANCE MEASURES
This document refers to certain non-GAAP financial performance measures, including “C1 cash costs”, “cash
costs”, “net cash”, “all -in costs”, “available liquidity”, “expansionary capital” and “sustaining capital” are
Alternative Performance Measures. Alternative performance measures are furnished to provide additional
information. These non -GAAP performance measures are included in this presentation because these
statistics are key performance measures that management uses internally to monitor performance, to assess
how the Company is performing, to plan and to assess the overa ll 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. For full information, please refer to the Company’s latest Management Discussion and
Analysis published on its Financial Reporting webpage or on SEDAR (the “MD&A”).
C1 Cash Costs per pound: C1 cash costs per payable pound of copper produced is a measure reflective of
operating costs per unit. C1 cash costs is calculated as cash production costs of metal produced net of by -
product credits and is a k ey performance measure that management uses to monitor performance.
Management uses this measure to assess how well the Company’s producing mines are performing and to
assess overall efficiency and effectiveness of the mining operations and assumes that re alized by-product
prices are consistent with those prevailing during the reporting period.