copper mountain august 2014 corp pres

8/10/2019 Copper Mountain August 2014 Corp Pres

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Focused on StrategicGrowth

August 2014 Presentation


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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/


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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

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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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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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copper mountain august 2014 corp pres

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