Capstone Copper (CS) Partnership presentation summary

Strategic partnership and transaction overview

• Entered a joint venture with Orion Resource Partners, granting Orion a 25% interest in the Santo Domingo and Sierra Norte projects for up to $360M in total consideration, including $225M at FID, $75M within six months, and up to $60M in contingent payments tied to project milestones.

• Capstone retains a 75% interest and a buyback option post-commercial production, while Orion will also subscribe for $10M in Capstone shares at a 5% premium.

• The partnership builds on a long-standing relationship with Orion, a global mining investor with significant experience and prior successful joint ventures.

Project funding and financial structure

• Initial capital expenditure for Santo Domingo is estimated at $2.3B, with $1.2B targeted from project-level financing and $260M from a gold stream.

• Capstone’s remaining funding requirement is expected to be covered by internal cash flow, with net debt at $692M and liquidity of $1.1B as of June 2025.

• The transaction is expected to enhance project IRR to over 75% for Capstone and de-risk funding requirements.

Project development and operational highlights

• Updated feasibility study for Santo Domingo shows a 24% post-tax IRR, 19-year mine life, and average annual copper production of 106kt for the first seven years.

• By-product C1 cash cost is projected at $0.28/lb for the first seven years, with initial capex of $2.315B and payback in 3 years.

• Permitting is complete, and the project targets a sanctioning decision in H2 2026, with engineering, optimization, and financing workstreams ongoing.