1. business and industrial
2. energy
3. coal

A Leading Intermediate Copper Producer
October 2014
1
Cautionary Note Forward Looking Information
This presentation, and the documents incorporated by reference herein, 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 Capstone 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. Forward-looking statements include, but are not limited
to, statements with respect to the estimation of mineral resources and mineral reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs
of production and capital expenditures, the success of our mining operations, environmental risks, unanticipated reclamation expenses and title disputes. In certain cases, forward-looking
statements can be identified by the use of words such as “plans”, “expects”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, “believes” or variations of such words and
phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” or the negative of these terms or comparable
terminology. 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 results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to
inherent hazards associated with mining operations; future prices of copper and other metals; counterparty risks associated with sales of our metals; our ability to raise capital; foreign currency
exchange rate fluctuations; accuracy of mineral resource and mineral reserve estimates; changes in general economic conditions; 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; operating in foreign jurisdictions with risk of changes to governmental regulation;
compliance with governmental regulations; dependence on key management personnel; compliance with environmental laws and regulations; reliance on approvals, licenses and permits from
governmental authorities; impact of climatic conditions on our Pinto Valley, Cozamin and Minto operations; potential conflicts of interest involving our directors and officers; aboriginal title claims
and rights to consultation and accommodation; limitations inherent in our insurance coverage; land reclamation and mine closure obligations; labour relations; increasing energy prices;
competition in the mining industry; risks associated with joint venture partners; and our ability to integrate new acquisitions into our operations.
Although we have 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, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place
undue reliance on our forward-looking statements.
Alternative Performance Measures
“C1 Cash Cost”, “Cash Cost” and “Adjusted Net Earnings” are Alternative Performance Measures. Alternative performance measures are furnished to provide additional information. These
performance measures are used by management to monitor performance, to plan and to assess the overall effectiveness and efficiency of mining operations. These performance measures 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 included
in the Company’s unaudited condensed interim consolidated financial statements prepared in accordance with IFRS.
Currency
All amounts are in US$ unless otherwise specified.
2
About Capstone
Low-risk copper producer focused on the Americas
Minto
Yukon, Canada
Kutcho
BC, Canada
Stable cash flow generation from three mines
Head Office
BC, Canada
Pinto Valley
Arizona, US
Financial flexibility to fund growth
Cozamin
Zacatecas, Mexico
Proven track record of sustainable growth
Santo Domingo
Region III, Chile
A leading intermediate copper producer
3
PRODUCTION
DEVELOPMENT
EXPLORATION
Three operating mines
Growth Projects
Portfolio
Production assets located in
stable geographies in the
Americas producing
>100 k tonnes of copper annually
Disciplined approach to
construction, offering significant
growth in planned copper
production over next five years
Early-stage base metals
exploration properties

Pinto Valley

Arizona, US
66.3 k tonnes copper1

Cozamin

Region III, Chile
CS 70%; KORES 30%

Zacatecas State, Mexico
20 k tonnes copper1
Santo Domingo

Chile

SQM - option to earn up
to 70% of Project
Providencia
(3,500 sq km)

CS 70%; KORES 30%
- 6 properties
Kutcho
British Columbia, Canada
Long term
Short term
Portfolio
Minto
Yukon, Canada
18.5 k tonnes copper1
1.±5%; see news release dated March 26, 2014.
4
Two-Tiered Growth Strategy
1. Robust organic growth potential




Potential increase at Pinto Valley - PV3 scoping study underway
Further opportunities at operating mines
Advancing the Santo Domingo project
Building the exploration portfolio
2. Growth through strategic acquisition

Maintain disciplined, well-balanced approach with
a conservative and flexible balance sheet

Low-risk, mining-friendly jurisdictions in the Americas

Copper asset in or near production
Capstone is well-positioned for profitable growth,
supported by considerable financial flexibility
5
Pinto Valley Mine
Large, long life producing Copper Mine
Acquired in October 2013 from BHP for $650M

Operating copper mine in Globe-Miami
district of Arizona:
 Asset diversification into one of the
world’s most favorable mining
jurisdictions for tax, regulation
and labour

Commenced operation in 1975

Fully permitted with established
infrastructure and skilled workforce

$194M restart capital spent by BHP in 2012
 Brand new mining fleet, mill upgrades,
crushing plant, control systems,
infrastructure
6
Pinto Valley Mine
Open Pit Mine in Arizona, US
Mine life (years)
12
Production – 2014 Guidance (k tonnes Cu ±5%)
66.3
Production1 – Nine Months 2014 YTD (k tonnes)
51.2
C1 cash cost2 – Six Months 2014 YTD ($/payable lb Cu)
C1 cash cost2 – 2014 guidance ($/payable lb Cu)
$2.10
$1.90 - $2.00
Measured & Indicated contained copper3 (k tonnes)
By-products
4,765
Mo, Ag
Key Points




PV2 mine plan represents only 16% of the total M&I Resource
Work underway to evaluate possible mine life extension beyond 2026 and potential increase in throughput
Potential for meaningful impact on production and growth
PV2 PFS does not include all the projected impact of process improvements
Pinto Valley added 57 thousand tonnes of copper annually for over 12 years
1. Includes concentrate and cathode. 2. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as treatment
and selling costs. 3. Pinto Valley Mine 2014 Pre-Feasibility Study, April 2014. Mineral Reserves and Resources take into account mining activities until
January 1, 2014, and are reported above 0.18% Cu Cut-off Grade. . See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
7
PV2 Pre-Feasibility Summary & Mine Plan – March 2014
Summary of March 2014 PV2 PFS
Mine Life (years)
12.3
1,[email protected]%1
Mineral Resources
Mineral Reserves
[email protected]%
Planned Throughput (ktpd)
50 - 52
Avg. Annual Production – Contained in Concentrate (M lbs)
119.5
Avg. Annual Production – Cathode (M lbs)
6.3
Est. LOM Avg. C1 Cash Costs
$2.00
LOM Sustaining Capital ($ millions)
$187.9
After-tax NPV, 8% ($M)
$738
50
0.40%
Total Material Moved
0.35%
40
0.30%
35
30
0.25%
25
0.20%
20
0.15%
15
0.10%
10
Capital Expenditure ($M)
Payable Copper (k tonnes)
0.05%
5
0
0.00%
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
47
62
12
12
9
11
14
6
5
5
3
2
0
64.1
54.8
65.1
55.8
56.2
54.1
57.0
56.1
54.7
52.3
59.7
41.0
12.0
1. Pinto Valley Mine 2014 Pre-Feasibility Study, April 2014. Mineral Reserves and Resources take into account mining activities until January 1,
2014, and are reported above 0.18% Cu Cut-off Grade. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
2026
8
Copper Grade %
Material Mined (M t/year)
45
Pinto Valley Improvement Strategy Underway
2012-2013 Restart
Ramp-up to 50 ktpd
2014 Stabilize
Stabilize at 50 ktpd



Increase throughput to 52 ktpd
BHP Copper Cities
Upcoming Catalysts

2016+ Optimize
Pinto Valley
Focus on improving reliability and
costs
BHP
Miami
Scoping study for PV3 underway

Extended mine life

Expanded production
Freeport
Miami
Engage and empower workforce to
improve site performance
Leverage existing organizational
structure to facilitate continuous
improvement
Source: Google maps.
Town of
Miami
KGHM
Carlota
9
Cozamin Mine
Underground Mine in Zacatecas State, Mexico
Mine life remaining (years)
6.5
Production – 2014 guidance (k tonnes Cu ±5%)
20.0
Production – Nine Months 2014 YTD (k tonnes)
15.2
C1 cash cost1 – Six Months 2014 YTD ($/payable lb Cu)
C1 cash cost1 – 2014 guidance ($/payable lb Cu)
By-products
2014
2015
Ongoing exploration program
$1.23
$1.30 - $1.40
Zn, Pb, Ag
2017+
Silver stream sale expires
April 2017 to significantly
improve economics
(currently ~1.5M oz/year)
1. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as treatment and selling costs. See ForwardLooking Statements and Cautionary Note for NI 43-101 information.
10
Minto Mine
Open Pit & Underground Mine in Yukon, Canada
Mine life remaining (years)
7
Production - 2014 guidance (k tonnes Cu ±5%)
18.5
Production – Nine Months 2014 YTD (k tonnes)
15.1
C1 cash cost1 – Six Months 2014 YTD ($/payable lb Cu)
$2.20
C1 cash cost1 –2014 guidance ($/payable lb Cu)
$2.45 - $2.55
Life of mine projected C1 cash cost1
$1.92
By-products
2014
Mineral Reserves
9,[email protected]%2
Mineral Resources
49,[email protected]%2
2015
Higher grade ore feeding mill
through Q3. Permit application
filed for all remaining
Mineral Reserves.
Au, Ag
Minto North high-grade ore
to feed mill in 2015.
2016
Significant production from
high-grade Minto North pit.
1. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as treatment and selling costs. 2. Mineral
Reserves and Resources take into account mining activities until December 31, 2013, and are reported above a 0.5% Cu COG (Underground Mineral
Reserves reported above a $64.40 NSR COG). See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
11
Santo Domingo Project
Copper-Iron Development Project in Region III, Chile
Project Area
Diego de Almagro

Superior infrastructure





7 kms from town, power lines & sub-station
110 kms from port
Low elevation (~1,000 masl)
Paved road access
Low environmental risk
12
Santo Domingo – July 2014 Feasibility Study
Confirms the value as a robust, low cost copper project

Unlevered Internal Rate of Return of 17.9% (27.3% assuming
$1B project debt or 60% leverage)

$797 million after-tax NPV, discounted at 8%

18-year mine life, 128M lbs Cu, 4.2 Mt Fe, 16 k oz Au annually

Off-take agreements committed for 50% of Cu and Fe LOM

LOM by-product C1 cash costs1 negative $0.06/lb payable Cu

LOM co-product C1 cash costs1 $1.50/lb payable Cu

Attractive opportunity in a community that demonstrates
strong support for the project
A long-life, low cost copper project
1. C1 Cash Cost is an Alternative Performance Measure. C1 Cash Cost on a by-product basis includes gold and iron credits. See Forward-Looking Statements and
Cautionary Note for NI 43-101 information.
13
Santo Domingo FS – CAPEX & Funding
CAPEX1,2
Partnership & Funding Structure3

Initial cost $1.7B

 Owned 70% Capstone and 30% Korea Resources
Corporation (KORES)
Sustaining Capital: $368M
 KORES largest Capstone shareholder (11%)
 LOM off-take agreement for 50% of Cu & Fe magnetite
concentrate on then prevailing market terms
 KORES to participate in arranging debt financing
Process
Plant
$380M
Port
$180M
Mine
$157M
Pipelines
$172M
Plant / Mine
Infrastructure
Contingency
$242M
EPCM
$115
Indirect
Costs
$290
$163M
KORES
Equity
$179M
CS Equity
$416M
65%
Project Debt
$1,105M
1. Source: Santo Domingo Project; Region III, Chile; NI 43-101 Technical Report on Feasibility Study dated July 8, 2014, 100% basis. 2. Accuracy range
of -10% to +15% for capital costs and operating costs. 3. Illustration based on feasibility study capital of $1.7B and assumed project debt of 65%.
14
Santo Domingo Project – Development Plan
Next Steps1
2014
2015
2016+
Power purchase agreement
Stage-gate 1 - EIA approval (Q1)
Finalize maritime concession
for port
Stage-gate 2 – Engineering
60-65% complete (Q3)
Stage-gate 3 - Engineering
effectively complete (Q1)
Production estimated +2 years
from construction decision
Decision on if, how, and when to proceed will depend on many factors

Power and infrastructure

Strong social license & regulatory support

Attractive economics

Other attractive production opportunities

Financing plan and risk mitigation
Proceeding in a disciplined manner with a stage-gate process for decision making
1. Subject to the commercial and regulatory environment in Chile and not within Capstone’s control. Various decisions are dependent on the
availability of low cost power as well as regulatory approval, and clear demonstration of an economically viable project with appropriate financing in
place and a supportive environment for development.
15
200
$2.00
150
$1.50
100
$1.00
50
$0.50
0
$0.00
2012
2013
Cozamin
Minto 2
2014
2015
Pinto Valley
2016
2017
Santo3 Domingo 70%
2018
2,3,4
C1 Cash Costs 3
Potential for significant cash flow generation
1. Assumes a positive construction decision on Santo Domingo with commissioning in 2017 (Capstone 70% ownership – based on FS dated July 8, 2014);
does not include by-product metal production at any mine or project. 2. C1 cash costs for 2015 and beyond do not factor in deferred stripping and
movements in ore stockpile for Minto. 3. C1 Cash Cost is an Alternative Performance Measure. See Forward-Looking Statements and Cautionary Note for
NI 43-101 information
16
C1 Cash Cost/lb3 of Payable Cu Produced
Cu Production (k tonnes)
Strong Projected Organic Growth Profile(1)
Financial Position
2014E Capex ($M)
At June 30, 2014 ($M)
$0.9
$3.0
$20.9
$16.1(1)
$24.8
$123.1
Development
Total
Cash
$128.5
Undrawn Credit Facilities
$ 67.2
Total Liquidity
$195.7
Op Cash Flow Before Changes
in Working Capital (1H 2014)
$104.7
$17.4
$18.0
$22.0
Sustaining
Pinto Valley
Cozamin
Minto
Santo Domingo
Kutcho
Conservative and flexible financial position
1. Represents pre-stripping of Minto North; set to begin on August 15, 2014, contingent upon receipt of the necessary permits and licenses.
17
Capstone Is Well-Positioned For Profitable Growth
2014 and beyond
Short term


Pinto Valley
Focus on cost efficiencies and potential mine life extension

Cozamin
Reliable production with ongoing exploration

Minto
Mine plan to optimize production and minimize cost

Santo Domingo
Advance engineering and secure power; next stage-gate decision point in Q1 2015

Exploration
Focus on 350,000 hectare property in Chile

Acquisition Criteria
Copper, in production, in the Americas
A leading intermediate copper producer
18
Appendix
1.
Board of Directors
2.
Senior Management Team
3.
Financial & Operating Results
4.
Revolving Credit Facilities
5.
C1 Cash Costs
6.
Mine Cost Breakdown
7.
2014 Operating Guidance
8.
2014 Capital Expenditure Guidance
9.
Historical Financial Performance
10.
Historical Operating Performance
11.
Record of Growth in Mineral Resource Base
12.
History of Pinto Valley Mine
13.
Minto Mineral Reserve and Mineral Resource Areas
14.
Minto Mineral Resources and Underground Development
15.
Santo Domingo July 2014 Feasibility Study Summary
16.
Proposed Power Expansions in Regions of Santo Domingo
17.
Project Providencia - Key Deposits in Analogous Metallogenic Settings
18.
NI 43-101 Information
19
Board of Directors
Name
Experience
Lawrence Bell
Former Chairman & CEO of BC Hydro, Director of Silver Wheaton
George Brack - Non-Executive Chairman
Mining & investment banking, former industry head of Scotia Capital
Chantal Gosselin
Former VP & Portfolio Manager of Goodman Investment Counsel. Previously with Sun
Valley Gold LLP, Blackhawk Mining & Pan American Silver
GookHo Lee
Executive Advisor for KORES. Formerly with LS-Nikko Copper Inc., LG-Nikko Copper Inc. &
LG Metal Co. Ltd.
Kalidas Madhavpeddi
President of Azteca Consulting LLC & CEO of Forex Investment Group. Former Sr. VP
Business Development of Phelps Dodge
Dale Peniuk - Audit Committee Chairman
Financial & board expertise, former Partner with KPMG
Darren Pylot - President, CEO & Director
Founder of Capstone Mining Corp.
Richard Zimmer
Former President & CEO of Far West Mining. Previously with Teck & Bow Valley
Industries
20
Senior Management Team
Years
Experience
Years Mining
Experience
Founder of Capstone Mining Corp.
20
20
Jim Slattery, Sr VP & CFO
Former CFO of Imnet Mining, Wescast Industries & Canadian General Tower
33
9
Gregg Bush, Sr VP & COO
Former COO of Minefinders, Mine GM & Operations of Barrick/Placer Dome,
12 years in Chile
30
30
Brad Mercer, Sr VP Exploration
Formerly with Sherwood Copper Corp., Miramar Mining & Royal Oak
30
30
Robert Blusson, VP Finance
Formerly with Lundin Mining & EuroZinc
12
8
Cindy Burnett, VP IR
Formerly with Western Lithium, Skye Resources, Ivanhoe Energy & Nova Chemicals
35
6
Peter Hemstead, VP Mktg. & Treasurer
Formerly with Sherwood Copper Corp. & PricewaterhouseCoopers LLP
18
8
Jason Howe, VP Business Development
Co-founder & former CFO of Silverstone Resources Corp. Formerly with
PricewaterhouseCoopers LLP
20
10
Wendy King, VP Legal, Risk &
Governance
Former Sr. VP General Counsel, Government Relations, Chief Compliance Officer
and Corporate Secretary with Central 1 Credit Union & Weyerhaeuser Company
18
1
Guy Le Bel, VP Evaluations
Formerly with Quadra Mining, BHP Billiton Base Metals, Rio Algom & Cambior Inc.
30
30
Gillian McCombie, VP HR
Formerly with Placer Dome, Hunter-Dickinson & TELUS
18
14
David Sinitsin, VP Technical Services
Formerly with Canaco Resources, Silver Standard Resources & Freeport-McMoRan
30
30
Brad Skeeles, VP North American
Operations
Formerly with Newmont Mining, INCO & BHP Billiton
26
26
Name
Experience
Darren Pylot, President, CEO & Director
21
Financial & Operating Results
Q2 2014
Q2 2013
Revenue ($M)
$171.7
$58.3
Copper in concentrates produced (tonnes)
27,212
8,765
Copper cathode produced (tonnes)
526
-
Payable copper produced (tonnes)
26,785
8,419
$2.03
$1.70
24,563
7,783
Realized copper price ($ per lb sold)
$3.36
$3.16
Net earnings ($M)
Per common share:
$16.6
$0.04
$9.2
$0.02
Adjusted EBITDA1 ($M)
Per common share:
$64.8
$0.17
$28.8
$0.08
Operating cash flow before changes in working capital1 ($M)
Per common share:
$56.5
$0.15
$28.6
$0.08
$181.0
($456.3)
C1 cash cost1 ($ per payable lb of Cu produced)
Copper sold (tonnes)
Net debt (cash)1 ($M)
1. These are Alternative Performance Measures. See Forward-Looking Statements and Cautionary Note for NI 43-101 information.
22
Revolving Credit Facilities
At June 30, 2014
Senior Secured
Senior Secured Reducing
Amount
$200 million
$200 million
Term
4 years from October 2013
2.5 year from October 2013
Interest Rate
US Libor + 2.5%
Standby Fee
0.56%
Payment
Schedule
Interest only
Covenants
8 equal quarterly payments starting
April 4, 2014
EBITDA/Interest Expense ≥ 3.00:1:00
Senior Secured Debt/EBITDA not more than 3:00:1:00
Total Debt/EBITDA not more than 4:00:1:00
Initial Use
$87.2 million supporting letters of credit
for PV reclamation, remainder fully drawn
for Pinto Valley purchase and working
capital purposes
Fully drawn for Pinto Valley purchase
Balance as at
June 30, 2014
$133 million
$178 million
23
C1 Cash Cost(1) Q2 2014
$0.27 $(0.16)
Total Consolidated C1 Cash Cost1 ($ per payable lb of Cu produced)
$2.50
$2.46
$2.35
$(0.05)
$0.44
$2.00
$0.39 ($0.12)
$2.13
$2.03
$1.76
$1.74
$1.50
$0.33 ($0.34)
$1.24
$1.23
$1.00
$0.50
$0.00
Pinto Valley
Operating costs +
Cozamin
Treatment & selling costs -
Minto
By-product credits =
Pinto Valley + Cozamin + Minto
C1 Cash Cost/lb1
1. C1 Cash Cost is an Alternative Performance Measure, which is net of by-product credits as well as treatment and selling costs.
24
Mine Cost Breakdown(1)
Consolidated
Pinto Valley
3%
3%
13%
16%
26%
8%
26%
8%
8%
8%
15%
Cozamin
27%
19%
Minto
5%
20%
4%
6%
4%
12%
10%
24%
31%
11%
6%
3%
15%
Salaries
Contractors & Consultants
Maintenance
Diesel, Gas & Lubricants
Power
Consumables
Other G&A
25%
45%
1. Cost of production in US$ for the 8 months ended as of August 30, 2014. Excluding by-product credits and TCRCs
25
2014 Operating Guidance
Pinto Valley
Cozamin
Minto
Total
Tonnes milled (M)
18.2
1.2
1.4
20.8
Copper grade (%)
0.39
1.85
1.49
0.55
Copper recovery (%)
88.5
93.4
92.4
89.0
63,500
20,000
18,500
102,000
2,800
-
-
2,800
-
9,000
-
9,000
660
-
-
660
-
1,700
-
1,700
0.3
1.6
0.2
2.1
-
-
17,670
17,670
$1.90 - $2.00
$1.30 - $1.40
$2.45 - $2.55
$1.90 - $2.00
Production (contained in concentrates)
Copper (tonnes)
Copper cathode (tonnes)
Zinc (tonnes)
MoS2 (000s lbs)
Lead (tonnes)
Silver (million ounces)
Gold (ounces)
C1 cash costs per pound of payable
copper produced net of by-product
credits and selling costs1
1. This is an alternative performance measure, please see “Alternative Performance Measure” definition at the beginning of this presentation.
26
2014 Capital Expenditure Guidance
Capital Expenditure
Breakdown ($M)
Pinto Valley
Cozamin
Santo
Domingo2
Minto
Kutcho
Total
Sustaining
22.0
18.0
17.4
-
-
57.4
PV2 Capital
24.8
-
-
-
-
24.8
Brownfield Exploration
-
3.0
-
-
-
3.0
Deferred Stripping1
-
-
16.1
-
-
16.1
Development Projects
-
-
-
20.9
0.9
21.8
46.8
21.0
33.5
20.9
0.9
123.1
Total
2014 Capital Expenditure Guidance
Kutcho
$0.9

Santo
Domingo
$20.9
$123.1M budgeted for capital
expenditures in 2014

Pinto Valley
$46.8
Minto
$33.5

$26.5M spent six months 2014 YTD
An additional $10.1M budgeted for
greenfield exploration in 2014

$3.5M spent six months 2014 YTD
Cozamin
$21.0
1. Pre-stripping of Minto North is set to begin on August 15, 2014, contingent upon receipt of the necessary permits and licenses.
2. Represents Capstone’s 70% share of capital expenditure.
27
Historical Financial Performance
Revenue3 ($M)
$400
$350
$300
$250
$200
$150
$100
$50
$0
$353
$306
$301
Adjusted EBITDA1,3 ($M)
$332
$333
$250
$162
2008
2009
2010
2011
2012
2013
Six Months
2014 YTD
$121
$117
2008
$59
$60
2009
2010
2011
$120
2012
2013
$121
Six Months
2014 YTD
$105
$86
$75
$80
$56
$114
$94
$100
$85
$80
$106
$36
$120
$100
$142
$103
$140
$123
$120
$40
$146
Operating Cash Flow Before Changes in
Working Capital3 ($M)
Capital Additions2,3($M)
$140
$160
$140
$120
$100
$80
$60
$40
$20
$0
$60
$33
$27
$20
$40
$28
$20
$0
$0
2008
2009
2010
2011
2012
2013
Six Months
2014 YTD
2008
2009
2010
2011
2012
2013
Six Months
2014 YTD
Deferred Stripping
Capital Additions
1. This is an Alternative Performance Measure. 2. Includes deferred stripping at Minto. 2008 capex includes $13 million from old Capstone for 9 months
in 2008. 3. The total 2008 information only includes results from the Cozamin Mine from November 24, 2008 to December 31, 2008. Year end 2010,
2011 and 2012 in accordance with IFRS. 2008 figures pro forma for combination with Sherwood Copper to include Cozamin and Minto for the full year.
28
Historical Operating Performance
Realized Price/lb of Copper Sold ($)
Copper Sold (tonnes)
60,000
51,164
45,405
50,000
40,000
38,691
29,892
33,022
35,879
35,834
2011
2012
30,000
20,000
10,000
0
2008
2009
2010
2013
$4.00
$3.50
$3.00
$2.50
$2.00
$1.50
$1.00
$0.50
$0.00
Six Months
2014 YTD
C1 Cash Cost1,2
($ per payable lb of Cu produced)
$1.96
$1.50
$1.25
$1.40
$1.45
$1.50
$2.36
$2.31
2008
2009
2010
$3.90
2011
$3.66
2012
$3.30
$3.17
2013
Six Months
2014 YTD
Cash Margin/lb of Copper Sold ($)
$2.50
$2.00
$3.42
$1.72
$3.00
47%
55%
$2.50
59%
63%
$2.45
$2.02
59%
$1.50
$1.00
$1.11
38%
$2.16
$2.00
$1.03
48%
$1.58
$1.28
$1.21
$1.00
$0.50
$0.50
$0.00
$0.00
2008
2009
2010
2011
2012
2013
Six Months
2014 YTD
2008
2009
2010
2011
2012
2013
1. This is an Alternative Performance Measure. * Commencing in 2011, financial results in accordance with IFRS. 2. The total 2008 information only
includes results from the Cozamin Mine from November 24, 2008 to December 31, 2008, except for the C1 Cash Cost per pound of payable copper
which are for the full year.
Six Months
2014 YTD
29
Proven Track Record of Growth in Mineral Resource Base
1107%
2000
Santo
Domingo
Santo
Domingo
Pinto
Valley
1500
Santo
Santo
Santo
Santo
Domingo Domingo
Domingo Domingo Kutcho
Kutcho
1000
500
0
CS
Total
Minto
Cozamin
CS
Total
Minto
Cozamin Cozamin Cozamin Cozamin Cozamin
3000
0
0.004
0.003
0.002
0.001
Santo
Domingo
Pinto
Valley
Santo
Domingo
0.02
0.018
0.016
Pinto
Valley
Kutcho
Kutcho
Santo
Santo
Santo
Santo
Kutcho
Domingo Domingo Domingo Domingo
CS
Total
Minto
Cozamin
CS
Total
Kutcho
Minto
Cozamin
CS
Total
Kutcho
Minto
Cozamin
Minto
Minto
Kutcho
Cozamin
Kutcho
Cozamin
Minto
Kutcho
Cozamin
Minto
Minto
Cozamin
Cozamin
Cozamin
Cozamin
Minto
Minto
2008 2009 2010 2011 2012 2013
Cu tonnes in Mineral Reserves* Per Share
0.005
Santo
Domingo
Kutcho
Cu tonnes/share (basic)
Cu tonnes/share (basic)
0.006
4000
1000
Cozamin
Pinto
Valley
5000
Cozamin
314%
1084%
6000
2000
Minto
Minto
CS
Kutcho
Total Kutcho
Kutcho Cozamin
Cozamin
Kutcho Kutcho
Minto Minto Minto Minto Minto
2008 2009 2010 2011 2012 2013 YTD
0.007
Cu tonnes in M&I Mineral Resources*
7000
2500
Thousands (tonnes)
8000
Cu tonnes in Mineral Reserves*
Thousands (tonnes)
3000
Kutcho
YTD
Cu tonnes in M&I Mineral Resources* Per Share
383%
0.014
0.012
0.01
0.008
0.006
0.004
0.002
0
0
2008 2009 2010 2011 2012 2013 YTD
2008 2009 2010 2011 2012 2013
YTD
* Includes Mineral Resources and Reserves as at January 1, 2014 . 70% share of Santo Domingo Mineral Resources as at August 31, 2012 and Mineral
Reserves as at May 2, 2014. Kutcho as at Dec. 31, 2010. See Forward-Looking Statements and Cautionary Note for NI 43-101 information
30
History of Pinto Valley
Pinto Valley Historical Production/Copper Prices
PV production commenced by
owner Cities Service (formerly
Tennessee Corporation)
PV Cu Production
$5.00
Average Cu Price
225
PV acquired by Newmont
subsidiary and placed PV on
care and maintenance
200
175
Newmont announced
plans to restart PV
Capstone
acquires PV
PV operations
restarted
BHP Copper
acquired PV
$4.50
$4.00
$3.50
150
$3.00
BHP placed PV on care and
maintenance due to
temporarily low copper prices
125
100
$2.50
BHPB
restarts
PV
$2.00
75
$1.50
50
$1.00
25
$0.50
0
$2014
2013
SMARRCO
$11.4 (6%)
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
BHP Billiton $194mm(1) re-start capital incorporated lessons learned
from previous re-start
 Acquired new mining fleet
 Upgraded electrical and controls
 Significantly improved plant conditions to HSEC standards
 In-sourced mining
1999

1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1979
1978
1977
1976
1975
2012 Re-start Capital Cost
Mine
$3.9 (2%)
Contractors'
Indirect (2)
$8.9 (5%)
EPCM
$14.2 (7%)
Mine Fleet
$63.8 (33%)
Infrastructure
$21.2 (11%)
Owner Cost
$27.1 (14%)
Source: BHP Copper. 1.Source: BHP Copper, in US$M. 2. The cost of employing contractors during project execution.
Processing
$43.7 (22%)
31
Historial Cu Price (Us$/lb)
Historial Cu Production (mlbs)
250
BHPB placed PV on
care and maintenance
due to temporarily
low copper prices
Minto Mineral Reserve & Mineral Resource Areas
A
LEGEND
Inferno North
Minto North
(extension of Minto North)
N
Mineral Reserves &
Resources
Inferno
Other Deposits
Fireweed
Mining Complete
(extension of Minto East)
Minto Main
Mill
>3% Cu over ≥5m
Deposit Area
>2% Cu over ≥5m
Exploration Corridor
>1% Cu over ≥5m
>0.5% Cu over ≥5m
All other drill holes >50
Fault
Creeks and Streams
All Weather Gravel Road
Camp
Minto East
Area 2/118
Key Points
Minto South
Copper Keel
Wildfire/
Copper Keel NE
 Current Mineral Resource/Reserve
has a 3.5 km strike length
 Other underground geophysical and
geological targets exist
Ridgetop
A’
500
meters
32
Minto Mineral Resources & Underground Development
Inferno North
Area 2/118
N
S
Wildfire
900masl
700masl
Minto North
Mining Complete
Ridgetop
Minto Main
500masl
Copper Keel
Mineral Reserves and Resources
Minto East
Other Deposits
Fireweed
Minto Permitting and Mining Phases




I – III: Minto Main pit mining completed Q2 2011, stockpiles processed until Q2 2012
IV: Current Mining - Area 2/118 mined by open pit and underground
V: Minto North to be mined by open pit; Minto East by underground
VI: PFS Q3 2012 added Copper Keel and Wildfire underground Mineral Reserves
33
Santo Domingo – July 2014 Feasibility Study Summary
Estimated C1 cash cost3
Summary of July 2014 FS1,2
Mine life (years)
18
Average annual
production
LOM Avg: 128M lbs Cu, 4.2 Mt Fe, 16 koz Au
First 5 years: 248M lbs Cu, 3.3 Mt Fe, 35 koz Au
Planned
throughput (tpd)
Development
capital
LOM Avg: 60,500
First 5 Years: 65,000
LOM Avg:
$ per payable lb of Cu produced
negative
$0.06
First 5 years:
$ per payable lb of Cu produced
$0.49
$1.7B
Investment
return
(after tax)
IRR: 17.9%
NPV @ 8% discount rate: $797M
Payback: 4.2 years
By-products
Fe, Au
Metal price
assumptions
Cu: $2.85/lb
Fe: $1.31/dmtu ($85/t conc. @ 65% Fe)
Au: $1,275/oz
Low-risk and relatively low-cost approach to increase value and maintain optionality
1. Source: Santo Domingo Project; Region III, Chile; NI 43-101 Technical Report on Feasibility Study dated July 8, 2014, 100% basis. 2. The report was compiled by
AMEC’s Santiago office with an accuracy range of -10% to +15% for capital and operating costs. The estimates presented in the FS are current as of October 2013. 3.
C1 Cash Cost is an Alternative Performance Measure. C1 Cash Cost on a by-product basis includes gold and iron credits. See Forward-Looking Statements and
Cautionary Note for NI 43-101 information
34
Proposed Power Expansions in Region of Santo Domingo
Codelco (760 MW, US$758M) and
BHP (517 MW, US$600M, planned
for 2016) natural gas-fired combined
cycle plants; GDF Suez (750 MW)
coal plants and 500 kW line
MEJILLONES
SANTO DOMINGO
TALTAL
Senate approves SIC-Sing
interconnection Jan. 9, 2014.
Includes both operating and
in-construction projects
(1,500 MW, US$700M, 610 km)
LINES - kV
Under construction
CHAÑARAL
DIEGO DE
ALMAGRO
Proposed
110
66 or less
Cardones
Endesa Punta Alcalde coal-fired
plant approved Jan 17, 2014
(740MW, SIC, US$1.4B)
COPIAPO
Node
Transelec substation upgrade
HUASCO
TO
SANTIAGO
Connecting to Australis Power
led Octopus Project at Penco
(700 MW) and Alto Maipo hydro
project (531 MW, SIC, US$700M)
35
Project Providencia – Region III Chile
Older
Key Deposits in Analogous Metallogenic Settings
1 IOCG Deposits – (Jurassic Volcanic
 Mantoverde District
 Santo Domingo
 Julia Reventon
Younger
Atacama Fault
Option
Boundary
1
Arc)1,3
IOCG
Julia Reventon
2 IOCG Deposits - (Cretaceous Volcanic Arc)1,3
 Candelaria
 Mantos Blancos
 Casualidad
 Teresa De Colmo
 Franke
 Altamira
3
2
145 kms
2 & 3 Porphyry Deposits – (Cretaceous Volcanic Arc)2,3
 Spence Mine
 Virgo Sierra Overa
Project Providencia lies ~80 kilometres
north of Santo Domingo
(3,500 sqkm)
IOCG?
Franke
Altamira
IOCG
Casualidad
Porphyry
Virgo S.O.
120 kms
1. Chile’s IOCG deposits are related to early - mid Cretaceous magmatic activity but the host rocks may be older. 2. Late Cretaceous Age. 3. The
blue, green and pink rocks in belts 1 & 2 are highly prospective for IOCG and for Cretaceous Age porphyry Cu deposits. These prospective rocks are
inferred to continue under gravel cover (clear areas) and beneath Paleocene-Eocene volcanic rocks (dark greens on east side of map).
36
Compliance with NI 43-101
Unless otherwise indicated, Capstone has prepared the technical information in this presentation (“Technical Information”) based on information contained in the technical reports and news releases
(collectively the “Disclosure Documents”) available under Capstone Mining Corp.’s company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by or under the supervision
of a qualified person (a “Qualified Person” or “QP”) as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). For
readers to fully understand the information in this presentation, they should read the Technical Reports (available on www.sedar.com) in their entirety, including all qualifications, assumptions and
exclusions that relate to the information set out in this presentation which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral 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.
The technical information in this presentation has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral
Projects of the Canadian Securities Administrators ("NI 43-101") and reviewed by Brad Skeeles, P.Eng. VP of North American Operations (Technical Information related to mining and production) and
Brad Mercer, P. Geol., Senior Vice President, Exploration (Technical Information related to mineral exploration activities), and reviewed and approved by Gregg Bush, Senior Vice President and Chief
Operating Officer for Capstone Mining, all QP’s under NI 43-101.
This presentation summarizes some of the information contained in the Pinto Valley Mine 2014 Pre-Feasibility Study, dated April 28, 2014 , that was directed by Capstone with contributions from
Kirkham Geosystems Ltd. (geology, Resource estimation), Independent Mining Consultants Inc. (reserve, geotechnical, mine design and schedule, equipment selection), KWM Consulting Inc.
(metallurgy, mill operation), AMEC Environment & Infrastructure Inc. (tailings), Stantec (Infrastructure and PFS report compilation), SRK (US), Inc. (environmental), and Adam M Consulting Inc. (financial
modelling). Personnel from each of these companies will be signing off as a QP as defined in NI 43-101 for their specific responsibilities. The following QP’s will author the technical report: Mel Lawson,
P.E. of Stantec, Garth Kirkham, P.Geo. of Kirkham Geosystems Ltd., John Marek P.E. of Independent Mining Consultants, Inc., Ken Majors P.Eng. of KWM Consulting Inc, Tony Freiman, P.E. of AMEC Inc.,
Adam Majorkiewicz, P.Eng of Adam M Consulting Inc. and Cori Hoag C.P.G. of SRK. The January 1, 2014 Mineral Resource estimate reported herein for the Pinto Valley property was prepared by Garth
Kirkham, P. Geo, Kirkham Geosystems Ltd., an independent QP. Based on the Mineral Resource Estimate, a standard methodology for pit limit analysis, mining sequence, and cut-off grade optimization,
including application of mining dilution, process recovery, economic criteria and physical mine and plant operating constraints, has been followed to design the Pinto Valley pit and determine the
Mineral Reserve Estimate dated January 1, 2014.
This presentation summarizes some of the information contained in the NI 43-101 Technical Report on the Cozamin Mine, Zacatecas, Mexico dated July 31 , 2014. The following QP’s were responsible
for the preparation of their relevant portions of the Technical Report: Patrick Andrieux, PhD., P.Eng. (Itasca Consulting Group. Inc), Dave Hallman, PE (Tetra Tech, Inc), Jenna Hardy, P.Geo. (Nimbus
Management Ltd.), Mel Lawson, SME-RM (Stantec Consulting International LLC), Ken Major, P.Eng. (KWM Consulting Inc.), Vivienne McLennan, P.Geo. (Capstone Mining Corp.), Allan Schappert, SMERM (Stantec Consulting International LLC), Ali Shahkar, P.Eng. (Lions Gate Geological Consulting Inc.), Robert Sim, P.Geo. (Sim Geological Inc.), Brad Skeeles, P.Eng. (Capstone Mining Corp.), and Jeremy
Vincent, P.Geo. (Capstone Mining Corp.).
This presentation summarizes some of the information contained in the Minto Phase VI Preliminary Feasibility Study Technical Report dated January 2012. Qualified Persons under National Instrument
43-101 responsible for this report: John Sagman, BASc., P.Eng., PMP, Wayne Barnett, Pr.Sci.Nat., SRK Consulting (Canada), Inc., John Eggert, P.Eng, Eggert Engineering Ltd; Bruce Murphy, P.Eng., SRK
Consulting (Canada), Inc.; Bill Hodgson, P.Eng., Genivar Inc.; Garth Kirkham, P. Geo, Kirkham Geosystems Ltd; Michael Levy, PE, SRK Consulting (Canada), Inc.; Brad Mercer, P.Geol. Capstone Mining
Corp.; Pooya Mohseni, P.Eng. Minto Exploration; Marek Nowak, P.Eng., SRK Consulting (Canada) Inc.; and Colleen Roche, P.Eng. Capstone Mining Corp. who are responsible for certain sections of the
PFS as detailed in the PFS.
This presentation summarizes some of the information contained in the Santo Domingo Project; Region III, Chile; NI 43-101 Technical Report on Feasibility Study dated July 8, 2014, 100% basis. The
following QP’s were responsible for the preparation of their relevant portions of the Technical Report based on the Feasibility Study: David Frost, F.AusIMM (AMEC Ingeniería y Construcción Ltda.),
Hans Gopfert, P.Eng (AMEC Ingeniería y Construcción Ltda.), Joyce Maycock, P. Eng (AMEC Ingeniería y Construcción Ltda.), Vikram Khera, P. Eng (AMEC Ingeniería y Construcción Ltda.), Anna Klimek,
P.Eng (AMEC Ingeniería y Construcción Ltda.), Roy Betinol, P.Eng. (BRASS Chile S.A.) -- Seawater and Magnetite Concentrate Pipeline System, Carlos Guzmán, F.AusIMM (NCL Ingeniería y Construcción
Ltda.) -- Mineral Reserve Model, Mine Equipment and Mine Development , Tom Kerr, P.Eng. (Knight Piésold S. A.) - Tailings Storage Facility, David Rennie, P. Eng (Roscoe Postle Associates Inc.) -- Mineral
Resource Model. The technical information in the July 8,2014 report was reviewed by Court Muggli, P.E., Project Director, Capstone Mining Corp., and Gregg Bush, P. Eng., Senior Vice President and
Chief Operating Officer, Capstone Mining Corp., both QP’s under NI 43-101.
37
For additional information, please visit capstonemining.com
or contact us at:
Phone: +1-604-684-8894
Toll Free: 1-866-684-8894
Email: [email protected]
38
Last updated October 09, 2014