Capstone Copper Reports Second Quarter 2022 Results
1 These are alternative performance measures. Refer to the section entitled “Alternative Performance Measures” in the Cautionary Notes 1
August 8, 2022
Capstone Copper Reports Second Quarter 2022 Results
All amounts in US$ unless otherwise indicated
Vancouver, British Columbia – Capstone Copper Corp. (“Capstone” or the “Company”) (TSX:CS) today
announced production and financial results for the quarter ended June 30 , 202 2 ( “Q2 2022”). Quarterly
consolidated copper production totaled 45,200 tonnes at C1 cash costs1 of $2.78 per payable pound of copper
produced. Link HERE for Capstone’s Q2 2022 management’s discussion and analysis (“MD&A”) and financial
statements and HERE for the webcast presentation.
John MacKenzie, CEO of Capstone commented, “Capstone delivered a solid quarter and, despite inflationary
pressures that have impacted the global mining industry, we generated approximately $115 million of adjusted
EBITDA in the quarter. We are now seeing signs of declining sulphuric acid and diesel prices, and are
benefitting from a weaker Chilean Peso. Our balance sheet remains strong with total expanded liquidity of
$720 million providing good flexibility for the advancement of our transformational growth pipeline. We reiterate
our production and cost guidance for the year. We are pleased with construction progress at Mantoverde
Development Project (“MVDP”) which is currently over 60% complete, and the project remains on schedule
and on budget.”
Q2 2022 OPERATIONAL AND FINANCIAL HIGHLIGHTS
• Net income of $92.0 million, or $0.11 per share. Adjusted net loss1 of $10.8 million or $(0.01) per share
for Q2 2022, with the main adjustments for Q2 2022 being $114.6 million of non-cash unrealized gain
on derivative contracts and $14.0 million non -cash recovery on share -based compensation. Net
income and adjusted net loss 1 were impacted by negative provisional pricing adjustments during the
quarter related to the drop in realized copper prices 1 (Q2 2022: $3.66/lb versus Q2 2021: $4.78/lb)
which amounted to $58.3 million in losses, compared to positive gain of $13.3 million in Q1 2022.
• Adjusted EBITDA1 of $114.7 million compared to $128.0 million in Q2 2021, with the main adjustments
being non -cash unrealized gain on derivative contracts, non -cash recovery on share -based
compensation, and unrealized provisional pricing adjustments on revenue.
• Operating cash flow before changes in working capita l of $40.7 million in Q2 2022 compared to
$139.5 million in Q2 2021 which was inclusive of a $30 million gold precious metal stream deposit.
The variance is related to the decrease in copper prices, increase in operating costs, and higher cash
taxes in Mexico and Chile.
• Consolidated copper production of 45 ,200 tonnes at C1 cash costs 1 of $2.78/lb of copper produced
for Q2 2022, which consisted of 13 ,300 tonnes at Pinto Valley, 6 ,400 tonnes at Cozamin, 12 ,400
tonnes at Mantos Blancos, and 13,100 tonnes at Mantoverde.
• Production and C1 cash costs 1 guidance for the nine -month period (April 1, 2022 to December 31,
2022) is re-iterated.
• In light of the recent drop in copper prices, the Company has taken the following proactive measures:
o Capital guidance has been reduced by $40 million mainly at Santo Domingo and Pinto Valley
o Initiated operating cost reduction reviews at all mine sites
o Elimination of higher cost Glencore debt facility
o H2 2022 copper hedges in place for 36,000 tonnes with a weighted average protected price of
$3.73/lb, protecting all of the expected oxide production
o Capital allocation focused on completion of Mantoverde Development Project ("MVDP"), future
pipeline growth yet to be sanctioned post completion of various optimization studies underway
o In addition, key input costs for acid, fuel and freight are starting to decline in Q3 2022
NEWS RELEASE
TSX:CS ● capstonecopper.com
1 These are alternative performance measures. Refer to the section entitled “Alternative Performance Measures” in the Cautionary Notes 2
• On July 22, 2022, the Company closed the amendment and extension of the Capstone corporate
revolving credit facility (“RCF”) from $225 million to $500 million plus $100 million accordion and
extended the RCF by four years to May 12, 2026.
• Mantos Blancos Concentrator Debottlenecking Project ("MB -CDP") is ramping up to design capacity
to achieve targeted throughput rates and recoveries in Q3 2022.
• Mantoverde Development Project remains on schedule and on budget. Major construction is
progressing well on the primary crusher, concentrate thickener and tie -in of the water desalination
plant. Procurement, contracts and engineering are over 99% complete, with manufacturing and
fabrication approximately 95% complete. Overall project completi on was 60% as of the end of July
2022.
• Mantoverde-Santo Domingo ("MV -SD") District Integration Plan will outline the approach Capstone
Copper is taking to maximize value creation (including synergies) across the district. The integration
plan will describe the optimized flowsheet during the Chile analyst tour and Investor Day during the
week of November 14th.
OPERATIONAL OVERVIEW
Refer to Capstone’s Q2 2022 MD&A and Financial Statements for detailed operating results.
Q2 2022 Q2 2021 2022 YTD 2021 YTD
Copper production (000s tonnes)
Sulphides business
Pinto Valley 13.3 13.4 27.7 29.9
Cozamin 6.4 6.3 12.3 11.4
Mantos Blancos 8.7 - 9.4 -
Total sulphides 28.4 19.6 49.4 41.3
Cathode business
Mantos Blancos 3.7 - 4.0 -
Mantoverde2 13.1 - 14.3 -
Total cathodes 16.8 - 18.3 -
Consolidated production 45.2 19.6 67.7 41.3
Copper sales
Copper sold (000s tonnes) 45.5 19.6 71.0 41.9
Realized copper price1 ($/pound) 3.66 4.78 4.06 4.43
C1 cash costs1 ($pound) produced
Sulphides business
Pinto Valley 2.82 2.33 2.70 2.12
Cozamin 1.25 0.99 1.19 0.96
Mantos Blancos 2.49 - 2.52 -
Total Sulphides 2.36 1.91 2.29 1.80
Cathode business
Mantos Blancos 3.67 - 3.72 -
Mantoverde2 3.40 - 3.42 -
Total cathodes 3.46 - 3.49 -
Consolidated C1 Cash Costs1 2.78 1.91 2.62 1.80
2 Mantoverde production shown on a 100% basis.
1 These are alternative performance measures. Refer to the section entitled “Alternative Performance Measures” in the Cautionary Notes 3
Consolidated Production
Q2 2022 copper production was 130% higher than Q2 2021 primarily as a result of including a full quarter of
production for the Mantos Blancos and Mantoverde mines.
2022 YTD consolidated production of 67,700 tonnes of copper is higher than the 41,300 tonnes in 2021 YTD,
primarily as a result of the addition of Mantos Blancos and Mantoverde mines production.
2022 YTD C1 cash costs 1 of $2.62/lb are a mix of sulphide and cathode business units compared to 2021
which was predominately sulphide production . Cathode production is from copper oxide ore that requires
sulphuric acid leaching, solvent extraction, and electrowinning (SX-EW) to produce copper cathodes which is
a finished copper product for the market. Sulphide production requires a mill that utilizes a grinding and
flotation process to recover sulphide minerals in a copper concentrate saleable as an intermediate product to
smelters and refiners. Capstone’s low -cost sulphide production is growing significantly with full production
from Mantos Blancos expected in Q3 2022 and with the Mantoverde Development Project completion and
ramp-up late next year. The cathode business unit was impacted by record high sulphuric acid prices in Q2
but costs are expected to ease through H2 as acid prices are currently declining along with other raw inputs.
Pinto Valley Mine
Copper production of 13,300 tonnes in Q2 2022 was consistent with Q2 2021 mainly due to lower throughput
during the quarter (Q2 2022 \ 46,821 tpd versus Q2 2021 49,170) as a result of plant maintenance and repairs
on the tailings thickeners, and offset by slightly higher grades (Q2 2022 – 0.34% versus Q2 2021 – 0.33%).
2022 YTD production was 7% lower than the same period last year primarily attributed to slightly lower grades
(2022 YTD – 0.33% versus 2021 YTD – 0.34%), lower recoveries (20 22 YTD – 85.0% versus 2021 YTD
– 86.9%) as well as lower mill throughput (52,585 tpd in 2022 YTD versus 53,608 tpd in 2021 YTD). The
lower grade versus the same period last year is a function of the mining sequence, the grade will improve
slightly over the remainder of the year as well as the mill throughput.
Q2 2022 C1 cash costs1 of $2.82/lb in Q2 2022 were higher than Q2 2021 of $2.33/lb primarily due to increases
in operating costs ($0.38/lb), and increases in treatment and refining costs ($0.13/lb).
2022 YTD C1 cash costs1 of $2.70/lb were $0.58/lb higher compared to the same period last year of $2.12/lb
primarily due to decreased payable copper production ($0.17/lb), increased operating costs due to inflationary
pressures on diesel, power, grinding media; and higher spend on rental equipment, mining equipment tools,
contractors and dust suppression ($0.31/lb) and an increase in treatment and refining costs ($0.11/lb).
Cozamin Mine
Copper production of 6,400 tonnes was 2% higher in Q2 2022 than in Q2 2021 as a result of higher throughput
of 3,874 tpd, and higher grades (1.88% versus 1.86%). The optimized technical report plan is delivering higher
grades in 2022, and the higher throughput is a result of upgrades to the mill that occurred in Q1 2022.
2022 YTD production was 8% higher than the same period last year and attributed to the higher mining rates
as the mine uses the availability of the Calicanto ramp increasingly compared to the prior year and higher
throughput as a result of upgrades to the mill in Q1 2022 (3,789 in 2022 YTD versus 3,588 in 2021 YTD),
higher grades (2022 YTD – 1.86% versus 2021 YTD – 1.83%).
Q2 2022 C1 cash costs1 were 25% higher than the same period last year due to increases in operating costs
($0.23/lb) as a result of inflationary pressures on steel (grinding media), explosives, and insurance premiums,
and planned higher spend on mechanical parts to increase equipment availability. There was also a decrease
in by-product credits ($0.09/lb) as a result of lower zinc production as well as lower silver production and
prices.
1 These are alternative performance measures. Refer to the section entitled “Alternative Performance Measures” in the Cautionary Notes 4
2022 YTD C1 cash costs 1 were higher than the same period last year primarily due to inflationary price
increases in steel (grinding media), explosives and insurance premiums, planned higher spend on mechanical
parts to increase equipment availability and reliability ($0.17/lb), lower zinc by-product credits due to planned
lower zinc production, as well as lower silver prices ($0.07/lb) and higher treatment and refining costs
($0.03/lb), partially offset by higher copper production (-$0.06/lb).
Mantos Blancos Mine
2022 YTD produc tion (including the nine days in March 2022 after closing of the Transaction) was 13 ,400
tonnes, 9,400 tonnes of copper in concentrate and 4 ,000 tonnes of cathode. C1 cash costs 1 were $2.89/lb
combined, $2.52/lb for copper in concentrate and $3.72/lb for cathode. The sulphide cash costs are expected
to decline with the ramp up of the MB -CDP to full capacity in Q3 2022 and copper cathode cash costs are
currently being impacted by high cost of acid which averaged $275/tonne delivered in Q2 2022.
Mantoverde Mine
2022 YTD production (including the nine days in March 2022 after closing of the Transaction) was 14 ,300
tonnes of copper cathode. C1 cash costs1 were $3.42/lb which were also impacted by high cost of acid.
Mantoverde Development Project
We expect completion of the MVDP to increase production from approximately 49,000 tonnes of copper
(cathodes only) in our current guidance for the period from Apr il to December 2022 (annualized) to 120,000
tonnes of copper (copper concentrate and cathodes) post project completion in 2024. In parallel, C1 cash
costs1 are expected to decrease from $3.70/lb in current guidance for the period from April to December 2022
to between $1.70/lb to $1.80/lb in 2024 after project completion and ramp up. The decline in expected costs
will be driven by the mine's transition to becoming a primary producer of copper concentrate. The mine will
also benefit from the production of approximately 31,000 ounces of gold per year that will generate by-product
credits. Upon completion of MVDP, approximately 75% of Mantoverde's production will come from the lower-
cost sulphide copper.
The MVDP is progressing under a lump -sum turn -key enginee ring, procurement and construction (EPC)
contract with Ausenco Limited, a multi -national EPC management company, with broad experience in the
design and construction of copper concentrator projects of this scale in the international market. The execution
plan includes a Capstone Copper owner’s team working with the contractors during the execution phase.
As of June 30, 2022, the MVDP had achieved overall progress of 58% and construction progress of 25% and
the schedule remains intact and the target for construction completion remains late 2023. Work completed in
Q2 2022 includes:
• Assembly completed on first electric rope shovel; mine electrical loop available in mid -August for
operational commissioning.
• Foundations for the primary crusher, stockpile reclai m, mills and floatation circuit are advancing well
with earthworks on the truck shop and thickeners near completion.
• Procurement, contracts and engineering are 99% complete, with manufacturing and fabrication
approximately 95% complete.
• Overall project completion was 60% as of the end of July 2022.
As of June 30, 2022, the cost of the different components of the project, including the EPC lump sum turnkey
continue on track with the budget. The total project capital budget remains at $825 million and spend t o date
totals $418 million. Capstone is expected to spend an additional $233 million in H2 2022 and the balance of
$175 million in 2023. The EPC contract total budget is approximately $525 million of which $263 million has
1 These are alternative performance measures. Refer to the section entitled “Alternative Performance Measures” in the Cautionary Notes 5
been spent to date. The majority of the capital costs are fixed due to the nature of the lump sum turn -key
contract with Ausenco of $525 million or 64% of the revised capital. In addition, the major mining equipment
was price fixed prior to the current inflationary environment for approxi mately $140 million or 17% of the
revised capital which brings the total fixed component to 81%.
Mantoverde Phase II
Mantoverde is currently analyzing the next stage of the MVDP. Alternatives are being considered to expand
the plant capacity by either the addition of a new ball mill and secondary equipment or a complete new
processing line, to process part of the 77% of resources unutilized by the Phase I of the MVDP. A conceptual
study will be developed during the second half of 2022 to assess the best option for the next stage of MVDP
which will be incorporated into a feasibility study targeted for H2 2023.
Mantos Blancos Concentrator Debottlenecking Project
The purpose of the MB-CDP is to increase throughput capacity at the sulphide concentrator plant from 11,000
tonnes per day ("tpd') to 20,000 tpd (or from 4.2 million tonnes per year to 7.3 million tonnes per year). This
will more than replace declining oxide production levels at Mantos Blancos.
The ramp-up progress continued in the quarter and the final modifications and adjustments were finalized in
Q2 2022. The throughput continues to improve with the focus being sustaining throughput at targeted levels
and achieving plant stability through-out the entire process.
In parallel, C1 cash costs 1 are anticipated to decrease from current guidance of $2.38/lb for the period from
April to December 2022 to ~$2.00/lb in 2023 as an even greater share of Mantos Blancos' production is
sourced from the Sulphide concentrator plant and improving sulphide C1 cash costs1 on higher throughput.
Mantos Blancos Phase II
Mantos Blancos is currently analyzing the potential to increase the throughput of the Mantos Blancos sulphide
concentrator plant from 7.3 million tonnes per year to 10.0 million tonnes per year using the existing (currently
unused/underutilized) ball mills and process equipment. As part of the Mantos Blancos Phase II Proje ct we
are also evaluating the potential to extend the life of copper cathode production. A pre-feasibility study on the
Mantos Blancos Phase II Project was completed in Q2 2022 which will be incorporated into an Advanced
Basic Engineering Study in Q4 2022.
Santo Domingo
Since closing of the Transaction, the Santo Domingo team has been integrated into the larger Capstone
Copper team in Chile. The integrated project team is focused on identifying and evaluating the optimal
integrated development plan for the Mantoverde-Santo Domingo district. The Mantoverde operation is located
approximately ~35km southwest of the Santo Domingo project. The Company expects the integrated district
plan to study alternatives and identify the best path forward to develop the c opper (sulphides and oxides),
gold, iron, and cobalt across both properties. An integrated development approach is likely to maximize
potential synergies associated with the proximity of Santo Domingo to the existing Mantoverde operation,
existing infrastructure (including a desalination plant, roads, power, and pipelines), and integration of other
assets, such as the Santo Domingo port contract with Puerto Abierto S.A. and the rail option currently being
assessed for products/supply transportation.
The po tential synergies the Company expects to be maximized through an optimal integrated district
development plan include the following:
1. Infrastructure synergies (including desalination plant, power, pipelines, port)
2. Integrated mine and process approach
1 These are alternative performance measures. Refer to the section entitled “Alternative Performance Measures” in the Cautionary Notes 6
3. Construction and supply chain synergies
4. Cobalt and sulphuric acid enhancements
5. Enabling revenue lines for Mantoverde cobalt and magnetite
6. Using excess solvent extraction and electrowinning ("SX-EW") capacity
The revenue -enhancing opportunities include using ex cess electrowinning capacity at Mantoverde to
potentially process both Santo Domingo oxide material and additional low -grade sulphides enabled by Jetti
catalytic leach technologies which Capstone Copper has been first to implement at Pinto Valley. An updat ed
base Santo Domingo feasibility study including district integration synergies will be released in H2 2023.
Santo Domingo contains oxide mineralization, which is located above the sulphide ore body and is part of the
Santo Domingo and Iris Norte pre -stripping material. During Q2 2022, the Company continued with the
exploration program, which is expected to be co mpleted in Q3 2022. Preliminary metallurgical test results
suggest the possibility to process Santo Domingo's oxides at Mantoverde's existing SX-EW plant. The results
of the oxide drill program including an optimized flowsheet will be incorporated into an updated Santo Domingo
feasibility study to be released in H1 2024.
Mantoverde-Santo Domingo Cobalt Feasibility Study Update
A district cobalt plant for Mantoverde -Santo Domingo may also unlock cobalt production from Mantoverde
while producing a by-product of sulphuric acid which can then be consumed internally to further significantly
lower operating costs on the leaching process at Mantoverde.
The cobalt recovery process consists of a concentration step, an oxidation step, and a cobalt recovery step.
The concentration step considers a conventional froth flotation circuit treating copper flotation tails to produce
a cobaltiferous pyrite concentrate. For the base case, the pyrite concentrate, which contains between 0.5%
and 0.7% Co, is oxidized in a fl uidized bed roaster to produce a cobalt calcine and a concentrated sulphuric
acid by -product. The calcine is then subjected to various leaching, precipitation, solvent extraction and
crystallization steps to produce battery grade cobalt sulphate heptahydr ate. Capstone is also evaluating
alternatives that may include the direct sale of some or all the cobalt as intermediate product, such as mixed
hydroxide precipitate, to a partner, JV or an independent third -party refiner. At an expected 4.7 thousand
tonnes of cobalt production per year from Santo Domingo plus expected additional tonnage from Mantoverde,
this would be one of the largest and lowest cost cobalt producers in the world. Additional benefits of this project
include the generation of carbon -free energy from waste heat emitted by the roaster, and the production of
by-product sulphuric acid which can be used for heap or dump leaching to produce low-cost copper cathodes
at Mantoverde, Mantos Blancos or sold to other consumers within the district.
Along the same timeline (Q4 2022) we intend to release an updated cobalt resource for Santo Domingo, as
well as an initial cobalt resource for Mantoverde. The full updated cobalt feasibility study will be released in
H1 2024.
Project development costs related to early works as required by the Environmental Permit to include flora and
fauna relocation, basic and detailed engineering, land tenure costs, the industrial water pipeline and relocation
of Regional Highway C-17. During Q3 2021, the Capstone Mining commenced major earthworks with respect
to the C17 highway by-pass road which provides site access, and work on the electrical substation connection.
Also, Capstone Copper has begun brownfield expansion drilling between the Santo Domingo and Iris Norte
Pits.
1 These are alternative performance measures. Refer to the section entitled “Alternative Performance Measures” in the Cautionary Notes 7
PV4 Study
During the quarter, work progressed on the pre -feasibility study ("PFS") for PV4 which aims to maximize the
conversion of approximately one billion tonnes of mineral resources to mineral reserves, significantly
extending Pinto Valley’s mine life and increa sing the mine’s copper production profile. The PV4 study is
focused on modest expansion of existing mill throughput to a range of 65,000 to 70,000 tpd with an extended
life of mine. The PV4 study is expected to be released in H1 2023. The application of the following new
technologies and innovation is being considered:
• Expansion of the use of Jetti catalytic leach technology which has the potential to increase mill cut -
off grades and increase tonnage available for leaching. Column leach and test heap work are ongoing
and the results will be included in the PV4 Study. An expanded dump leach strategy would translate
to higher grades sent to the mill for processing and increased copper cathode production by expanding
dump leach tonnage.
• Pyrite Agglomeration, with strong positive environmental, social and governance ("ESG") implications
as it would divert acid-generating minerals including pyrite and chalcopyrite from tailings to the dump
leach operation. Additional copper recovery and lower costs via the generation of acid would be key
economic drivers for this project.
Corporate Exploration Update
Cozamin exploration: The focus during Q2 2022 was on testing the Mala Noche Main Vein West Target with
one surface rig and one underground rig from the west exploration crosscut station. Since the 2021 -2022
exploration program started, approximately 43,500 meters of drilling have been completed from 53 holes and
an additional 5,500 meters of drilling from 8 holes are planned for the remainder of this year. A proposed lower
elevation mine cross-cut will allow for expedited infill drilling in 2023 to inform an updated mineral resource
estimate in the second quarter of 2023. Surface drill testing of other targets along strike from the San Roberto
and San Rafael mine areas are also planned for 2022.
Copper Cities, Arizona: On January 20, 2022, Capstone Mining announced that it had entered into an 18 -
month access agreement with BHP Copper Inc. ("BHP") to conduct drill and metallurgical test-work at BHP's
Copper Cities project ("Copper Cities"), located approximately 10 km east of the Pinto Valley mine. In 2022,
Capstone Copper plans to spend $6.7 million in a two -phase drill program aime d at twinning historical drill
holes, and to select a portion of these for metallurgical testing. Drilling with two surface rigs is now complete
with metallurgical testing underway.
Planalto, Brazil: Step-out drilling at the Planalto Iron Ore -Copper-Gold prospect in Brazil, under an earn -in
agreement with Lara Exploration Ltd. ("Lara"), commenced in Q4 2021 and continued in Q2 2022. Lara is
conducting the work and will report results when appropriate.
REITERATING NINE-MONTH GUIDANCE (APRIL-DECEMBER 2022)
Production and C1 cash costs1 guidance published in May 2022 is reiterated. Capital guidance has been
reduced by $40 million in relation to the recent drop in copper prices.
During the nine months from April 1, 2022 to December 31, 2022, Capstone Copper expects to produce
between 136,000 and 150,000 tonnes of copper at C1 cash costs 1 of between $2.55 and $2.70 per pound
payable copper produced.
1 These are alternative performance measures. Refer to the section entitled “Alternative Performance Measures” in the Cautionary Notes 8
April 1 – December 31, 2022
Copper Production
(‘000s tonnes)
C1 Cash Costs1
(US$ per payable lb Cu
Produced)
Sulphides Business
Pinto Valley 41.0 – 45.0 $2.45 – $2.60
Cozamin 18.0 – 20.0 $1.10 – $1.25
Mantos Blancos 32.0 – 35.0 $1.95 – $2.10
Total Sulphides 91.0 – 100.0 $2.00 – $2.15
Cathode Business
Mantos Blancos 10.0 – 11.0 $3.45 – $3.60
Mantoverde* 35.0 – 39.0 $3.60 – $3.80
Total Cathodes 45.0 – 50.0 $3.55 – $3.75
Consolidated Cu Production 136.0 – 150.0 $2.55 – $2.70
*Mantoverde production shown on a 100% basis
Updated Capital and Exploration Guidance (April to December 2022) is as follows:
Pinto
Valley
Mantos
Blancos
Manto-
verde
(100% )
Cozamin Santo
Domingo Other Total
Capital Expenditure ($ millions)
Sustaining Capital1 55 20 20 25 - - 120
Capitalized Stripping 5 55 - - - - 60
Expansionary Capital1 15 20 305 35 25 - 400
Total Capital Expenditure 75 95 325 60 25 - 580
Exploration ($ millions)
Brownfield (Cozamin + Chile) - 1 1 2 2 - 6
Greenfield (Brazil + Chile) - - - - - 2 2
Greenfield (Copper Cities, AZ) 7 - - - - - 7
Total Exploration 7 1 1 2 2 2 15
As a precaution related to the drop in copper prices, we have made initial reductions and deferrals to our
capital plans. Capital guidance for April to December 2022 has been reduced from $620 million to $580 million.
The $40 million in net reductions incl udes a lag in MVDP spending from 2022 to 2023 of $25 million, a
reduction of $15 million at Santo Domingo, related primarily to reduced scope of work related to the C17
bypass and cobalt study, and reductions to sustaining capital of $10 million at Pinto V alley. These were
partially offset by an increase to the Cozamin pastefill project costs of $10 million, primarily a result of scope
changes and increases to estimated piping, raisebore and underground development costs.
Key assumptions included in the original 2022 guidance are $280/tonne sulphuric acid prices, $100 per barrel
WTI oil price, $24/oz silver prices and 20:1 Mexican Peso to US dollar foreign exchange rate and 800 Chilean
Peso to US Dollar foreign exchange rate. Capstone is starting to see r elief in input pricing assumptions
including acid, fuel, freight costs plus weakening in the Chilean peso.