Capstone Copper Corp.

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CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

June 30, 2024

(Expressed in United States (“US”) Dollars)

Capstone Copper Corp. Condensed Interim Consolidated Statements of Financial Position

unaudited - expressed in thousands of US dollars

ASSETS		June 30, 2024		December 31,2023
Current
Cash and cash equivalents	$	137,851	$	126,016
Short-term investments_(Note 5)_		777		804
Receivables_(Note 6)_		148,964		147,318
Inventories_(Note 7)_		168,919		149,613
Derivative assets_(Note 5)_		17,323		18,984
Other assets_(Note 9)_		52,136		44,122
		525,970		486,857
Mineral properties, plant and equipment_(Note 8)_		5,504,682		5,286,257
Derivative assets_(Note 5)_		12,944		16,565
Deferred income tax assets		51,150		53,401
Other assets_(Note 9)_		30,071		30,835
Total assets	$	6,124,817	$	5,873,915
LIABILITIES
Current
Accounts payable and accrued liabilities	$	273,161	$	272,277
Current portion of long-term debt_(Note 13)_		68,191		28,398
Current portion of due to related party_(Note 11)_		6,486		3,243
Lease liabilities_(Note 12)_		41,900		33,516
Derivative liabilities_(Note 5)_		1,493		16,788
Income taxes payable		10,815		6,186
Other liabilities_(Note 10)_		157,840		71,412
		559,886		431,820
Long-term debt_(Note 13)_		756,277		970,258
Due to related party_(Note 11)_		228,371		192,628
Deferred revenue_(Note 14)_		144,670		147,619
Lease liabilities_(Note 12)_		171,739		102,983
Derivative liabilities_(Note 5)_		280		—
Provisions_(Note 16)_		256,545		268,132
Deferred income tax liabilities		635,314		630,225
Other liabilities_(Note 10)_		21,043		64,128
Total liabilities	$	2,774,125	$	2,807,793
EQUITY
Share capital	$	2,708,540	$	2,451,572
Other reserves		43,769		40,129
Retained earnings		195,631		168,886
Total equity attributable to equity holders of the Company		2,947,940		2,660,587
Non-controllinginterest_(Note 11)_		402,752		405,535
Total equity		3,350,692		3,066,122

Total liabilities and equity	$	6,124,817	$	5,873,915

See accompanying notes to these condensed interim consolidated financial statements.

Condensed Interim Consolidated Statements of Income (Loss) Three and Six Months Ended June 30, 2024 and 2023

unaudited - expressed in thousands of US dollars, except share and per share amounts

Revenue(Note 18) Operating costs Production costs Royalties Depletion and amortization Earnings from mining operations General and administrative expenses Exploration expenses (Note 8) Share-based compensation expense(Note 17) Income (loss) from operations Other (expense) income Foreign exchange (loss) gain Realized and unrealized (losses) gains on derivative instruments_(Note 5) Minto obligation recovery (expense)(Note 16) Other expense(Note 22) Finance income(Note 23) Finance expense(Note 23) Income (loss) before income taxes Income tax (expense) recovery(Note 15)_ Net income(loss)	Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023
	$ 393,053$ 333,938$ 732,950$ 669,534
	(244,287) (274,007) (493,323) (514,388) (5,109) (3,056) (9,709) (6,006) (71,147) (51,874) (139,335) (99,753)
	72,510 5,001 90,583 49,387
	(8,262) (7,223) (14,167) (12,865) (165) (1,646) (475) (2,845) (4,575) (2,389) (11,702) (14,407)
	59,508 (6,257) 64,239 19,270
	(3,526) 581 9,217 (8,681) (4,140) 51,470 (7,878) 6,635 7,261 (53,921) 7,261 (53,921) (4,085) (17,069) (8,365) (19,785) 1,149 1,936 2,795 3,318 (8,688) (9,427) (18,817) (18,691)
	47,479 (32,687) 48,452 (71,855)
	(19,988) (1,224) (26,727) 8,994
	$ 27,491$ (33,911) $ 21,725$ (62,861)
Net income (loss) attributable to: Shareholders of Capstone Copper Corp. Non-controllinginterest_(Note 11)_	$ 29,345$ (36,510)$ 24,508$ (56,512) (1,854) 2,599 (2,783) (6,349)
	$ 27,491$ (33,911) $ 21,725$ (62,861)
Net earnings (loss) per share attributable to shareholders of Capstone Copper Corp.
Earnings (loss) per share - basic_(Note 19) Weighted average number of shares - basic (Note 19)_	$ 0.04$ (0.05)$ 0.03$ (0.08) 753,741,708 693,783,922 741,104,566 692,823,554
Earnings (loss) per share - diluted_(Note 19) Weighted average number of shares - diluted (Note 19) _	$ 0.04$ (0.05)$ 0.03$ (0.08) 756,735,903 693,783,922 743,630,003 692,823,554

See accompanying notes to these condensed interim consolidated financial statements.

Capstone Copper Corp.

Condensed Interim Consolidated Statements of Comprehensive Income (Loss) Three and Six Months Ended June 30, 2024 and 2023

unaudited - expressed in thousands of US dollars

Net income (loss) Other comprehensive income (loss) ("OCI") Items that will not be reclassified subsequently to profit or loss Change in fair value of marketable securities, net of tax of $nil and $nil (2023 - $nil and $nil) Remeasurement for retirement benefit plans, net of tax of $nil and $nil (2023 - $nil and $nil) Items that may be reclassified subsequently to profit or loss Foreign currency translation adjustment Total other comprehensive income (loss) for the period Total comprehensive income(loss)	Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023
	$ 27,491$ (33,911) $ 21,725$ (62,861)
	313 (764) 382 (299) — — — (79)
	313 (764) 382 (378)
	— 179 — 185
	— 179 — 185

	313 (585) 382 (193)
	$ 27,804$ (34,496) $ 22,107$ (63,054)

Total comprehensive income (loss) attributable to: Shareholders of Capstone Copper Corp. Non-controllinginterest_(Note 11)_	$ 29,658$ (37,095)$ 24,890$ (56,705) (1,854) 2,599 (2,783) (6,349)
	$ 27,804$ (34,496) $ 22,107$ (63,054)

See accompanying notes to these condensed interim consolidated financial statements.

Capstone Copper Corp.

Condensed Interim Consolidated Statements of Cash Flows

Three and Six Months Ended June 30, 2024 and 2023

unaudited - expressed in thousands of US dollars

	Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023
Cash provided by (used in): Operating activities Net income (loss) Adjustments for: Depletion and amortization_(Note 20) Income tax expense(Note 15) Inventory write-down (Note 7) Share-based compensation expense(Note 17)_ Net finance costs Unrealized loss (gain) on foreign exchange Unrealized gain on derivatives	$ 27,491$ (33,911)$ 21,725$ (62,861) 72,625 53,901 142,196 99,180 19,987 1,224 26,726 (8,994) (490) (131) (1,491) 3,754 4,575 2,389 11,702 14,407 7,540 7,491 16,023 15,373 1,056 (2,096) (6,346) (1,418) (9,552) (55,181) (7,218) (20,606) 100 — 700 — — 224 (1,263) 24 (4,130) (6,859) (7,129) (9,300) (7,261) 58,921 (7,261) 58,921 (3,490) (2,051) (14,072) (21,773) 996 — 996 — (5,306) — (8,189) — (1,195) (1,959) (2,028) (1,639)
Gold stream obligation_(Note 22)_
Loss (gain) on disposal of assets and other Amortization of deferred revenue and variable consideration adjustments_(Note 14) Minto obligation (recovery) expense Income taxes paid Income taxes received Payments on Minto obligation(Note 16) Other payments Operating cash flow before working capital and other non-cash changes Changes in non-cash working capital(Note 20) Other non-cash changes(Note 20) Operating cash flow Investing activities Mineral properties, plant and equipment additions Finance costs capitalized on construction in progress Proceeds on disposal of assets and other Investing cash flow Financing activities Proceeds from borrowings(Note 13) Repayment of borrowings(Note 13) Proceeds from related party (Note 11) Repayment of lease obligations(Note 12) Proceeds from the exercise of options Net proceeds from issuance of shares(Note 17)_ Net payments for settlement of derivatives Interest paid on long-term debt and surety bonds Financing cash flow Effect of exchange rate changes on cash and cash equivalents Increase in (decrease in) cash and cash equivalents Cash and cash equivalents - beginningofperiod
	102,946 21,962 165,071 65,068
	(5,103) (13,647) (19,931) (55,827) 971 (10,519) 64 (9,610)
	98,814 (2,204) 145,204 (369)
	(118,126) (137,135) (215,200) (311,483) (19,718) (15,258) (40,970) (27,558) 26 463 1,415 2,236
	(137,818) (151,930) (254,755) (336,805)
	93,000 176,875 169,500 303,875 (40,000) (40,875) (298,500) (70,875) 12,000 45,000 33,000 69,000 (14,391) (10,145) (26,683) (19,719) 1,430 533 2,071 2,904 — — 252,947 — (5,501) (196) (5,093) (1,272) (521) (398) (4,266) (894)
	46,017 170,794 122,976 283,019

	(193) (4) (1,590) 2
	6,820 16,656 11,835 (54,153) 131,031 99,498 126,016 170,307
Cash and cash equivalents - end ofperiod	$ 137,851$ 116,154$ 137,851$ 116,154
Supplemental cash flow information_(Note 20)_

See accompanying notes to these condensed interim consolidated financial statements.

Capstone Copper Corp.

Condensed Interim Consolidated Statements of Changes in Equity Three and Six Months Ended June 30, 2024 and 2023

unaudited - expressed in thousands of US dollars, except share amounts

January 1, 2024 *Shares issued on exercise of options(Note 17)* Shares issued under TSUP(Note 17) Share-based compensation(Note 17) Settlement of share units Shares issued under the Offering Change in fair value of marketable securities Net income(loss)**	Attributable to equityholders of the Company Number of shares Share capital Reserve for equity settled share-based transactions Revaluation reserve Foreign currency translation reserve Share purchase reserve Retained earnings Total attributable to equity holders Non- controlling interest Total equity
	696,073,153 $ 2,451,572 $ 59,241 $ (1,306) $ (17,101) $ (705) $ 168,886 $ 2,660,587 $ 405,535 $ 3,066,122 1,120,610 3,043 (974) — — — — 2,069 — 2,069 368,572 978 (978) — — — — — — — — — 4,505 — — — — 4,505 — 4,505 — — — — — 705 2,237 2,942 — 2,942 56,548,000 252,947 — — — — — 252,947 — 252,947 — — — 382 — — — 382 — 382 — — — — — — 24,508 24,508 (2,783) 21,725
June 30, 2024	754,110,335 $ 2,708,540 $ 61,794 $ (924) $ (17,101) $ — $ 195,631 $ 2,947,940 $ 402,752 $ 3,350,692
January 1, 2023 Shares issued on exercise of options Share-based compensation Shares issued under TSUP Settlement of share units Change in fair value of marketable securities Remeasurements for retirement benefit plans Net loss Foreign currencytranslation	Number of shares Share capital Reserve for equity settled share-based transactions Revaluation reserve Foreign currency translation reserve Share purchase reserve Retained earnings Total attributable to equity holders Non- controlling interest Total equity
	691,639,972 2,447,377 56,752 4,178 (17,102) (2,499) 262,512 2,751,218 428,639 3,179,857 2,851,069 2,700 (862) — — — — 1,838 — 1,838 — — 1,965 — — — — 1,965 — 1,965 61,836 204 (204) — — — — — — — — — — — — 1,839 7,971 9,810 — 9,810 — — — (299) — — — (299) — (299) — — — (79) — — — (79) — (79) — — — — — — (56,512) (56,512) (6,349) (62,861) — — — — 185 — — 185 — 185
June 30, 2023	694,552,877 $ 2,450,281 $ 57,651 $ 3,800 $ (16,917)$ (660)$ 213,971 $ 2,708,126 $ 422,290 $ 3,130,416

See accompanying notes to these condensed interim consolidated financial statements.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

1. Nature of Operations

The accompanying condensed interim consolidated financial statements for Capstone Copper Corp. (the "Company" or "Capstone Copper") have been prepared as at June 30, 2024. The Company is listed on the Toronto Stock Exchange, and, effective February 2, 2024, on the Australian Securities Exchange (“ASX”) as an ASX Foreign Exempt Listing.

Capstone Copper Corp., through a wholly owned Chilean subsidiary, Mantos Copper S.A., owns and operates the Mantos Blancos mine, located forty-five kilometers northeast of Antofagasta, Chile and the 70%-owned Mantoverde mine, through a Chilean subsidiary, Mantoverde S.A., located fifty kilometers southeast of Chanaral, Chile.

The Company is also engaged in the production of and exploration for base metals in the United States (“US”), Mexico, and Chile, with a focus on copper. Pinto Valley Mining Corp. (“Pinto Valley”), a wholly owned US subsidiary, owns and operates the Pinto Valley mine located in Arizona, US. Capstone Gold, S.A. de C.V. (“Capstone Gold”), a wholly owned Mexican subsidiary, owns and operates the Cozamin mine located in Zacatecas, Mexico, and has a portfolio of exploration properties in Mexico. Minera Santo Domingo SCM, a wholly owned Chilean subsidiary of Acquisition Co, holds the fully permitted Santo Domingo copper-iron-gold-cobalt development project in the Atacama region of Chile, 35km northeast of Mantoverde. Capstone Mining Chile SpA, a wholly owned Chilean subsidiary, is performing exploration for base metal deposits in Chile.

The Company's head office, registered and records office and principal address are located at 2100 - 510 West Georgia Street, Vancouver, British Columbia, Canada and the Company is incorporated in British Columbia.

These condensed interim consolidated financial statements were approved by the Board of Directors and authorized for issuance on August 1, 2024.

2. Basis of preparation and consolidation

These condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard 34, Interim Financial Reporting using the same accounting policies and methods of application as the audited annual consolidated financial statements of Capstone for the year ended December 31, 2023, which were prepared in accordance with International Financial Reporting Standards (“IFRS”). The condensed interim consolidated financial statements have been prepared under the historical cost convention, except for certain financial instruments which are measured at fair value. The policies were consistently applied to all of the periods presented, except as noted below.

These condensed interim consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company as at and for the year ended December 31, 2023.

Certain comparative figures have been reclassified to conform with changes in the presentation of the current year. These reclassifications had no effect on the previously reported operating cash flow, net income and net equity for the comparative period.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

Capstone Copper Corp.

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

3 Material Accounting Policy Information, Estimates and Judgements

The Company’s management makes judgements in its process of applying the Company’s accounting policies in the preparation of these condensed interim consolidated financial statements. In addition, the preparation of the financial data requires that the Company’s management makes assumptions and estimates of the impacts of uncertain future events on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

In preparing the Company’s condensed interim consolidated financial statements for the three and six months ended June 30, 2024, the Company applied the critical judgements and estimates disclosed in Note 3 of its consolidated financial statements for the year ended December 31, 2023, in addition to the accounting policies noted below.

4 Adoption of New and Revised IFRS and IFRS Not Yet Effective

New IFRS Pronouncements

Issued and effective January 1, 2024

In January 2020 and October 2022, the IASB issued amendments to International Accounting Standards 1 ("IAS 1"), Presentation of Financial Statements, to clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Liabilities should be classified as non-current if a company has a substantive right to defer settlement for at least 12 months at the end of the reporting period. Rights are in existence if covenants are complied with at the end of the reporting period. Settlement refers to the transfer to the counterparty of cash, equity instruments, or other assets or services. In addition, the amendment required entities to disclose information to enable users of the financial statements to understand the risk that non-current liabilities with covenants could become repayable within twelve months. The amendments became effective January 1, 2024, with retrospective application required on adoption. The Company assessed the impact of this amendment and determined it does not have a significant effect on the Company's financial statements.

In September 2022, the IASB issued amendments to IFRS 16, Lease Liability in a Sale and Leaseback . The amendments require a seller-lessee to subsequently measure lease liabilities arising from a leaseback in a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. The new requirements do not prevent a seller-lessee from recognizing in profit or loss any gain or loss relating to the partial or full termination of a lease. A seller-lessee applies the amendments retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to sale and leaseback transactions entered into after the date of initial application. The amendments became effective January 1, 2024. The Company assessed the impact of this amendment and determined it does not have a significant effect on the Company's financial statements.

In May 2023, the IASB issued amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments Disclosures to provide guidance on disclosures related to supplier finance arrangements that enable users of financial statements to assess the effects of these arrangements on the entity’s liabilities and cash flows and on the entity’s exposure to liquidity risk. The amendments became effective for annual periods beginning on or after January 1, 2024. The Company assessed the impact of this amendment and determined it does not have a significant effect on the Company's financial statements and has updated required disclosures accordingly.

Capstone Copper Corp. Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

Issued but not yet effective

In April 2024, the IASB issued a new IFRS accounting standard to improve the reporting of financial performance. IFRS 18 Presentation and Disclosure in Financial Statements replaces IAS 1 Presentation of Financial Statements. The standard will become effective January 1, 2027, with early adoption permitted. The Company is in the process of assessing the impact of this new standard on the Company's financial statements.

In May 2024, the IASB issued Amendments to IFRS 9 and IFRS 7, Amendments to the Classification and Measurement of Financial Instruments, which updated classification and measurement requirements in IFRS 9 Financial Instruments and related disclosure requirements in IFRS 7 Financial Instruments: Disclosures. The IASB clarified the recognition and derecognition date of certain financial assets and liabilities, and amended the requirements related to settling financial liabilities using an electronic payment system. It also clarified how to assess the contractual cash flow characteristics of financial assets in determining whether they solely meet the payments of principal and interest criterion, including financial assets that have environmental, social and corporate governance (ESG)-linked features and other similar contingent features. The IASB added disclosure requirements for financial instruments with contingent features that do not relate directly to basic lending risks and costs, and amended disclosures relating to equity instruments designated at fair value through other comprehensive income. These amendments become effective January 1, 2026 with early application permitted. The Company is in the process of assessing the impact of this new standard on the Company's financial statements.

[5.] Financial Instruments

Fair value of financial instruments

Certain of the Company's financial assets and liabilities are measured at fair value on a recurring basis and classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Certain non-financial assets and liabilities may also be measured at fair value on a non-recurring basis. There are three levels of fair value hierarchy that prioritize the inputs to the valuation techniques used to measure fair value, with Level 1 having the highest priority. The levels and valuations techniques used to value the financial assets and liabilities are as follows:

Level 1 – Fair values measured using unadjusted quoted prices in active markets for identical instruments.

Short term investments and marketable securities are valued using quoted market prices in active markets. Accordingly, these items are included in Level 1 of the fair value hierarchy.

Level 2 – Fair values measured using directly or indirectly observable inputs, other than those included in Level 1.

Derivative instruments are included in Level 2 of the fair value hierarchy as they are valued using pricing models or discounted cash flow models. These models require a variety of inputs, including, but not limited to, market prices, forward price curves, yield curve and credit spreads. These inputs are obtained from or corroborated with the market. Also included in Level 2 are receivables from provisional pricing on copper concentrate and cathode sales because they are valued using quoted market prices derived based on forward curves for the respective commodities and published priced assessments.

Level 3 – Fair values measured using inputs that are not based on observable market data.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

As of June 30, 2024 the Company’s classification of financial instruments within the fair value hierarchy are summarized below:

summarized below:
		Level 1	Level 2	Level 3	Total
Financial assets
Short-term investments	$	777 $	— $	— $	777
*Copper concentrate receivables(Note 6)***		—	64,237	—	64,237
*Copper cathode receivables(Note 6)***		—	41,919	—	41,919
Derivative assets		—	30,267	—	30,267
Investment in marketable securities**(Note 9) **		1,177	—	—	1,177
	$	1,954 $	136,423 $	— $	138,377
Financial liabilities
Derivative liabilities	$	— $	1,773 $	— $	1,773
Gold stream liability *(Note 10)*		—	—	7,341	7,341
	$	— $	1,773 $	7,341 $	9,114

The Company’s policy for determining when a transfer occurs between levels in the fair value hierarchy is to assess the impact at the date of the event or the change in circumstances that could result in a transfer. There were no transfers between Level 1, Level 2 and Level 3 during the three and six months ended June 30, 2024.

Set out below are the Company’s financial assets by category:

	June 30, 2024
	Fair value through profit or loss Fair value through OCI Amortized cost Total
Cash and cash equivalents Short-term investments *Copper concentrate receivables(Note 6)* Copper cathode receivables(Note 6) Other receivables(Note 6) Derivative assets Investment in marketable securities****(Note 9) **	$ — $ — $ 137,851 $ 137,851 777 — — 777 64,237 — — 64,237 41,919 — — 41,919 — — 21,352 21,352 30,267 — — 30,267 — 1,177 — 1,177
	$ 137,200 $ 1,177 $ 159,203 $ 297,580
	December 31,2023
	Fair value through profit or loss Fair value through OCI Amortized cost Total
Cash and cash equivalents Short-term investments Copper concentrate receivables_(Note 6) Copper cathode receivables(Note 6) Other receivables(Note 6) Derivative assets Investment in marketable securities (Note 9)_	$ — $ — $ 126,016 $ 126,016 804 — — 804 73,800 — — 73,800 34,549 — — 34,549 — — 14,671 14,671 35,549 — — 35,549 — 824 — 824
	$ 144,702 $ 824 $ 140,687 $ 286,213

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

Set out below are the Company’s financial liabilities by category:

	June 30, 2024
	Fair value through profit or loss Amortized cost Total
Accounts payable and accrued liabilities *Long-term debt(Note 13)* Due to related party(Note 11) Derivative liabilities Working capital facility(Note 10) Payable on purchase of non-controlling interest(Note 10) Gold stream obligation(Note 10)**	$ — $ 273,161 $ 273,161 — 824,468 824,468 — 234,857 234,857 1,773 — 1,773 — 70,701 70,701 — 43,269 43,269 7,341 — 7,341
	$ 9,114 $ 1,446,456 $ 1,455,570

	December 31,2023
	Fair value through profit or loss Amortized cost Total
Accounts payable and accrued liabilities Long-term debt_(Note 13) Due to related party(Note 11) Derivative liabilities Working capital facility(Note 10) Payable on purchase of non-controlling interest(Note 10) Gold stream obligation(Note 10)_	$ — $ 272,277 $ 272,277 — 998,655 998,655 — 195,872 195,872 16,788 — 16,788 — 25,618 25,618 — 42,389 42,389 7,100 — 7,100
	$ 23,888 $ 1,534,811 $ 1,558,699

There have been no changes during the three and six months ended June 30, 2024, in how the Company categorizes its financial assets and liabilities by fair value through profit or loss, fair value through OCI, or amortized cost.

Financial instruments and related risks

The Company’s activities expose it to financial risks of varying degrees of significance which could affect its ability to achieve its strategic objectives for growth and shareholder returns. The principal financial risks to which the Company is exposed are commodity price risk, credit risk, foreign exchange risk, liquidity risk and interest rate risk. The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis. There have been no significant changes in the Company’s exposure to these financial risks.

Derivative instruments

As at June 30, 2024, the Company’s derivative financial instruments are composed of copper quotational pricing contracts, interest rate swap contracts, foreign currency zero-cost collars ("ZCC") and forward and swap contracts.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

The Company operates on an international basis and therefore foreign exchange risk exposures arise from transactions denominated in a foreign currency. The Company's foreign exchange risk arises primarily with respect to the Chilean Peso ("CLP"), the Chilean Unidad de Fometo ("UF"), the Mexican Peso ("MXN") and the Canadian dollar ("CDN"). The UF is an artificial inflation-indexed monetary unit used in Chile to denominate certain contracts. The Company's cash flows from Chilean and Mexican operations are exposed to foreign exchange risk, as commodity sales are denominated in US dollars and a certain portion of operating and capital expenses is denominated in local currencies. As such, the Company may use foreign exchange forward and swap contracts and ZCCs to mitigate changes in foreign exchange rates.

The Company's outstanding derivative instruments as of June 30, 2024, are as follows:

Type Contract description Remaining term Put strike Call strike / Fixed rate Notional tonnes / Quantity Interest rate Fixed-for-floating swaps adjusted SOFR July 2024 - March 2030 — 1.015% $466 million USD Interest rate Floor options adjusted SOFR July 2024 - September 2025 — 0% $466 million USD Foreign currency Foreign exchange ZCC - CLP July - December 2024 825.00 922.50 66.6 billion CLP 835.00 955.00 Foreign currency Foreign exchange ZCC - CLP January - December 2025 900.00 981.50 77.1 billion CLP 930.00 1,044.38 Foreign currency Foreign exchange ZCC - CLP January - December 2026 850.00 970.00 5.7 billion CLP Foreign currency Foreign exchange ZCC - CAD July - December 2024 1.35 1.39 $5.0 million CAD Foreign currency Foreign exchange ZCC - MXN July - December 2024 18.00 20.20 326 million MXN 18.25 20.50 Quotational pricing contracts Copper time-spread swaps July - August 2024 — — 5,731 tonnes Set out below are the Company’s derivative financial assets and financial liabilities:	Type Contract description Remaining term Put strike Call strike / Fixed rate Notional tonnes / Quantity Interest rate Fixed-for-floating swaps adjusted SOFR July 2024 - March 2030 — 1.015% $466 million USD Interest rate Floor options adjusted SOFR July 2024 - September 2025 — 0% $466 million USD Foreign currency Foreign exchange ZCC - CLP July - December 2024 825.00 922.50 66.6 billion CLP 835.00 955.00 Foreign currency Foreign exchange ZCC - CLP January - December 2025 900.00 981.50 77.1 billion CLP 930.00 1,044.38 Foreign currency Foreign exchange ZCC - CLP January - December 2026 850.00 970.00 5.7 billion CLP Foreign currency Foreign exchange ZCC - CAD July - December 2024 1.35 1.39 $5.0 million CAD Foreign currency Foreign exchange ZCC - MXN July - December 2024 18.00 20.20 326 million MXN 18.25 20.50 Quotational pricing contracts Copper time-spread swaps July - August 2024 — — 5,731 tonnes Set out below are the Company’s derivative financial assets and financial liabilities:
June 30, 2024	December 31,2023
Derivative financial assets: Foreign currency contracts $ 144 Quotation pricing contracts 716 Interest rate swapcontracts 16,463	$ 2,139 — 16,845
Total derivative financial assets - current 17,323 Interest rate swapcontracts 12,944	18,984 16,565
Total derivative financial assets - non-current $ 12,944 Derivative financial liabilities:	$ 16,565 1,503 13,484 1,801
Foreign currency contracts 1,493 Copper commodity contracts — Quotationalpricingcontracts —
Total derivative financial liabilities - current $ 1,493 Foreign currencycontracts 280	$ 16,788 —
Total derivative financial liabilities - non-current $ 280	$ —

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

Set out below are the Company’s realized and unrealized gains and losses on derivative financial instruments:

	Three months ended June 30,	Three months ended June 30,	Three months ended June 30,	Six	months ended	June 30,
		2024	2023		2024	2023
Unrealized gain (loss) on derivative financial
instruments:
Foreign currency contracts	$	4,237$	(1,059)	$	(2,264)$	1,900
Copper commodity contracts		9,350	51,132		13,484	20,888
Interest rate swapcontracts		(4,035)	5,108		(4,002)	(2,182)
Total unrealized loss on derivative financial
instruments		9,552	55,181		7,218	20,606
Realized gain (loss) on derivative financial
instruments:
Foreign currency contracts		151	(134)		(548)	751
Copper commodity contracts		(19,957)	(8,811)		(26,641)	(24,320)
Interest rate swapcontracts		6,114	5,234		12,093	9,598
Total realized loss on derivative financial
instruments		(13,692)	(3,711)		(15,096)	(13,971)
Total unrealized and realized (loss) gain on
derivative financial instruments:	$	(4,140) $	51,470	$	(7,878) $	6,635

* Amounts above do not include unrealized and realized gains and losses related to the Company's quotational pricing contracts as these amounts are included in pricing and volume adjustments on copper concentrate sales (Note 18).

6. Receivables

Details are as follows:

Details are as follows:
		June 30, 2024	December	31,2023
Copper cathode	$	41,919	$	34,549
Copper concentrate		64,237		73,800
Value added taxes and other taxes receivable		15,510		16,345
Income taxes receivable		5,946		7,953
Other		21,352		14,671
Total receivables	$	148,964	$	147,318

During the three months ended June 30, 2024, the Company came to an agreement with the issuer of the surety bond who held title to a C$10 million trust account designated for payment of future costs related to the Minto obligation, in which these funds would be released to Capstone over the course of the next year. As at June 30, 2024, a receivable of C$10 million (US$ 7.4 million) was recorded in other receivables. Subsequent to the quarter-end, C$2 million was received.

Notes to the Condensed Interim Consolidated Financial Statements

Capstone Copper Corp.

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

7. Inventories

Details are as follows:

Details are as follows:
		June 30, 2024	December	31,2023
Current:
Materials and consumables	$	95,934	$	82,478
Ore stockpiles		16,364		14,003
Work-in-progress		21,169		21,477
Finished goods - copper cathode		18,829		16,400
Finishedgoods - copper concentrate		16,623		15,255
Total inventories - current	$	168,919	$	149,613
Non-current:
Ore stockpiles (Note 9) (i)		9,180		8,474
Total inventories - non-current	$	9,180	$	8,474

i. Non-current inventory is composed of ore stockpiles at the Mantos Blancos mine.

During the three and six months ended June 30, 2024, concentrate and cathode inventories recognized as production costs, including depletion and amortization, amounted to $315.4 million and $632.7 million (2023 – $325.9 million and $614.1 million).

During the three and six months ended June 30, 2024, the Company recorded recovery of write-downs of $0.5 million and $1.5 million related to Mantoverde's cathode inventories which was recorded as production costs.

During the three and six months ended June 30, 2023, the Company recorded net reversals of write-downs and write-downs of $(0.1) million and $3.7 million related to Mantoverde's cathode inventories and Pinto Valley's copper concentrate and supplies inventories which were recorded as production costs.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

8. Mineral Properties, Plant and Equipment

Details are as follows:

		Mineralproperties
	Depletable Non- depletable Subject to amortization Producing mineral properties Deferred stripping Mineral exploration and development properties Plant & equipment Right of use assets
At January 1, 2024, net Additions Disposals Rehabilitation provision adjustments Reclassifications Depletion and amortization	$ 1,672,727 $ 307,681 $ 837,812 $ 1,162,403 $ 134,096 $ 1,171,538 $ 5,286,257 — 97,643 21,978 6,317 98,072 140,565 364,575 — — (37) (107) — — (144) (4,666) — — — — — (4,666) 34,757 4,152 (33,300) 101,186 (8,293) (98,502) — (40,697) (36,489) — (55,124) (9,030) — (141,340)
At June 30, 2024, net	$ 1,662,121 $ 372,987 $ 826,453 $ 1,214,675 $ 214,845 $ 1,213,601 $ 5,504,682
At June 30, 2024: Cost Accumulated amortization and impairment	$ 2,212,177 $ 571,121 $ 826,453 $ 2,992,833 $ 338,977 $ 1,213,601 $ 8,155,162 (550,056) (198,134) —(1,778,158) (124,132) —(2,650,480)
Net carrying amount	$ 1,662,121 $ 372,987 $ 826,453 $ 1,214,675 $ 214,845 $ 1,213,601 $ 5,504,682

During the three and six month period ended June 30, 2024, the Company capitalized $25.5 million and $47.1 million (2023 - $17.0 million and $30.0 million) of finance costs to Construction in Progress, at a weighted average interest rate of 7.8%.

During the three and six month period ended June 30, 2024, the Company capitalized $51.4 million and $98.1 million (2023 - $8.0 million and $16.5 million) in lease costs to right of use assets primarily related to the Mantoverde mine.

During the three and six month period ended June 30, 2024, the Company capitalized $51.7 million and $97.6 million (2023 - $50.7 million and $97.5 million) of stripping costs to deferred stripping and depletable mineral properties.

The Company’s exploration costs were as follows:

The Company’s exploration costs were as follows:
	Three months ended June 30,			Six months ended	June	30,
		2024	2023	2024	2023
Exploration capitalized to mineral properties	$	2,864$	518$	5,167$		866
Greenfield exploration expensed to the statement
of income(loss)		165	1,646	475	2,845
	$	3,029$	2,164$	5,642$	3,711

Exploration capitalized to mineral properties during the period ended June 30, 2024 and 2023, relates to brownfield exploration at the Mantoverde, Mantos Blancos and Cozamin mines. Greenfield exploration expenses during the period ended June 30, 2024 and 2023 related primarily to exploration efforts in the US and Chile.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

As at June 30, 2024, construction in progress primarily relates to capital costs incurred in connection with the Mantoverde Development Project ("MVDP"), and expansionary and sustaining capital at the Mantos Blancos and Pinto Valley mines. Capital expenditures committed as at June 30, 2024, but not yet incurred, is $58.9 million (December 31, 2023 - $32.9 million).

As at June 30, 2024, the Revolving Credit Facility ("RCF") (Note 13) was secured by the Pinto Valley, Cozamin and Mantos Blancos mineral properties, and plant and equipment with a net carrying value of $2,053.1 million (December 31, 2023 – $2,027.0 million).

9. Other Assets

Details are as follows:

Details are as follows:
		June 30, 2024	December	31,2023
Current:
Prepaids	$	44,447	$	36,612
Deposits		4,844		4,710
Other		2,845		2,800
Total other assets - current	$	52,136	$	44,122
Non-current:
Prepayments	$	18,045	$	18,045
Ore stockpiles_(Note 7)_		9,180		8,474
Investments in marketable securities		1,177		824
Deposits		51		390
Other		1,618		3,102
Total other assets - non-current	$	30,071	$	30,835

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

Capstone Copper Corp.

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

10. Other Liabilities

Details are as follows:

Details are as follows:
		June 30, 2024	December	31,2023
Current:
Current portion of share-based payment obligations (Note 16)	$	6,245	$	8,455
Current portion of payable on purchase of NCI		43,269		—
Current portion of deferred revenue_(Note 14)_		12,647		12,139
Current portion of Minto obligation_(Note 16)_		24,581		23,943
Working capital facility		70,701		25,618
Other		397		1,257
Total other liabilities - current	$	157,840	$	71,412
Non-current:
Retirement benefit liabilities	$	13,673	$	13,036
Non-current portion of payable on purchase of NCI		—		42,389
Gold stream obligation(Note 14)		7,341		7,100
Other		29		1,603
Total other liabilities - non-current	$	21,043	$	64,128

Working Capital Facilities

During the period ended June 30, 2024, two of the Company's Chilean subsidiaries entered into a series of shortterm facilities with a weighted-average interest rate of 6.71% for the purpose of working capital management. As at June 30, 2024, the aggregate balance of the facilities was $70.7 million, including accrued interest of $0.7 million.

Payable on purchase of Non-Controlling Interest ("NCI")

On March 24, 2021, the Company completed a Share Purchase Agreement (the “SPA”) with Korea Resources Corporation (“KORES”) to purchase KORES’ 30% ownership interest in Acquisition Co. for cash consideration of $120 million and non-cash consideration of $32.4 million, enabling the Company's consolidation of 100% ownership in the Santo Domingo property.

As at June 30, 2024, an unsecured liability of $43.3 million (December 31, 2023 - $42.4 million) has been recognized in the consolidated statement of financial position equal to the discounted amount of the remaining $45 million of cash consideration to be paid to KORES on March 24, 2025. The discounted amount of the remaining $45 million will be accreted up to its face value at 5% per annum. During the three months and six months ended June 30, 2024, $0.4 million and $0.9 million (June 30, 2023 - $0.5 million and $1.0 million) of accretion was recorded in Finance expense in the consolidated statements of loss.

Gold stream obligation

During the fourth quarter of 2023, the Company recognized an obligation related to a completion test on the Santo Domingo gold stream. The fair value of the embedded derivative at June 30, 2024 was a liability of $7.3 million (December 31, 2023 - $7.1 million).

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

11. Non-Controlling Interest

As part of the financing for the MVDP, Mitsubishi Materials Corporation ("MMC") acquired a 30% non-controlling interest in Mantoverde S.A., and agreed to make an additional $20 million contingent payment upon satisfaction of certain technical requirements relating to the expansion of the tailings storage facility.

In addition to the contingent arrangement, MMC agreed to provide a $60 million Cost Overrun Facility ("COF") in exchange for additional offtake of copper concentrate production under a 10-year contract (Note 24). The COF initially carried an interest rate of 3-month US$ LIBOR plus 1.70% and amortizing over 37 quarters from the earlier of September 30, 2024 or three quarters after project completion. As a result of Interest Rate Benchmark Reform, the Company completed the transition from LIBOR to an adjusted secured overnight financing rate ("SOFR") with MMC. The transition resulted in a variable rate of SOFR compounded daily to a 3-month period plus 0.2616% per annum, with margins unchanged.

In addition to the COF, MMC advanced its pro-rata share of funding requests, which amounted to an additional $162.9 million, to Mantoverde in the form of shareholder loans forming part of the financing for the MVDP. Total funds advanced by MMC at June 30, 2024, including accrued interest of $12.0 million (December 31, 2023 - $6.0 million), was $234.9 million (December 31, 2023 - $195.9 million).

Details of the due to related party balances are as follows:

			Shareholder Loans	Shareholder Loans		Total
Balance, December 31, 2022	$	60,000	$	—	$	60,000
Additions		—		69,000		69,000
Interest expense		2,071		1,438		3,509
Interest repayments		(2,071)		—		(2,071)
Balance, June 30, 2023	$	60,000	$	70,438	$	130,438
Additions		—		60,900		60,900
Interest expense		2,206		4,533		6,739
Interest repayments		(1,097)		—		(1,097)
Unpaid interest atyear-end		(1,109)		—		(1,109)
Balance, December 31, 2023	$	60,000	$	135,871	$	195,871
Additions		—		33,000		33,000
Interest expense		2,219		5,986		8,205
Interest repayments		(2,219)		—		(2,219)
Balance, June 30, 2024	$	60,000	$	174,857		234,857
Less: currentportion		(6,486)		—		(6,486)
Non-currentportion	$	53,514	$	174,857	$	228,371

For a summary of the financial information for Mantoverde refer to Note 24 where it is shown on a 100% basis:

		Period ended June 30,	Year ended December 31,
		2024	2023
Opening balance	$	405,535$	428,639
Share of comprehensive(loss) profit for theperiod		(2,783)	(23,104)
Non-controllinginterest	$	402,752$	405,535

Notes to the Condensed Interim Consolidated Financial Statements

Capstone Copper Corp.

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

12. Lease Liabilities

Details are as follows:

Details are as follows:
		Total
Balance, December 31, 2022	$	103,897
Additions		25,655
Payments		(19,719)
Accretion expense		3,875
Foreign currencytranslation adjustment		410
Balance, June 30, 2023	$	114,118
Additions		43,842
Payments		(23,008)
Reclassifications (i)		(3,300)
Accretion expense		4,804
Foreign currencytranslation adjustment		43
Balance, December 31, 2023	$	136,499
Additions		98,072
Payments		(26,685)
Accretion expense		6,047
Foreign currencytranslation adjustment		(294)
Balance, June 30, 2024	$	213,639
Less: currentportion		(41,900)
Non-currentportion	$	171,739

i. Relates to an advance payment made during the year ended December 31, 2022, reclassified against the lease liability.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

Capstone Copper Corp.

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

13. Long-Term Debt

Details of the long-term debt balances are as follows:

		Mantoverde
		Development	Revolving Credit
		Project Facility	Facility	Total
Balance, December 31, 2022	$	527,498 $	71,577 $	599,075
Additions		—	290,500	290,500
Repayments		—	(67,500)	(67,500)
Financing fee amortization		(456)	534	78
Deferred financingfee		—	(82)	(82)
Balance, June 30, 2023	$	527,042 $	295,029 $	822,071
Additions		—	213,500	213,500
Repayments		—	(37,500)	(37,500)
Financing fee amortization		(463)	477	14
Deferred financing fee		—	(2,150)	(2,150)
Loss on debt extinguishment		—	2,721	2,721
Balance, December 31, 2023	$	526,579 $	472,077 $	998,656
Additions		—	124,500	124,500
Repayments		—	(298,500)	(298,500)
Financing fee amortization		(458)	337	(121)
Deferred financingfee		—	(67)	(67)
Balance, June 30, 2024	$	526,121 $	298,347 $	824,468
Less: currentportion		(68,191)	—	(68,191)
Non-currentportion	$	457,930 $	298,347 $	756,277

Mantoverde Development Project Facility

In order to fund the construction of MVDP, the Company secured a senior secured amortizing project debt facility in an aggregate amount of $520 million (the "MVDP Facility", comprising the “Covered Facility” $250 million, the “Uncovered Facility” $210 million, and the “ECA Direct Facility” $60 million). These project finance facilities are subject to affirmative, financial and restrictive covenants that include obligations to maintain the security interests in favour of the lenders over substantially all of the Mantoverde assets, insurance coverage, maintenance of offtake agreements, environmental and social compliance, restrictions on new financial indebtedness, distributions and dispositions, and compliance with certain financial ratios. As at June 30, 2024, the Company was in compliance with these covenants.

At June 30, 2024, $520 million was drawn on the MVDP Facility with $6.1 million recognized as an adjustment to record the debt at its fair value as required as part of the accounting for the business combination with Mantos (December 31, 2023 - $520 million and $6.6 million). This fair value adjustment amortizes down to its historical cost over the duration of the MVDP Facility.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

Interest on borrowings under the MVDP Facility is payable quarterly. As a result of Interest Rate Benchmark Reform, the Company has completed the transition from LIBOR to an adjusted SOFR for its MVDP debt financing facility. The transition resulted in a variable rate of SOFR compounded daily to a 3-month period plus 0.2616% per annum, with margins unchanged (i.e., 1.65% for the Covered Facility and, with respect to the Uncovered Facility, a rate of 3.75% and, with respect to the ECA Direct Facility, a rate of 4.00% pre-completion of the MVDP, and decreasing to 3.50% and 3.75% respectively post-completion of the MVDP). Pursuant to the Covered Facility, an export credit agency guaranteed premium of 2.05% per annum is also payable quarterly and calculated over amounts outstanding under the Covered Facility. The MVDP Facility is secured by a comprehensive security package covering substantially all of the Mantoverde assets. The MVDP Facility amortizes from the earlier of September 30, 2024 and 180 days after project completion until December 2030 for the Uncovered Facility and December 2032 for the Covered Facility and ECA Direct Facility.

To mitigate the risk of movements in interest rates, and in compliance with a covenant in the MVDP Facility, a subsidiary of the Company entered into a fixed-for-floating SOFR swap at 1.015% with floating rate of daily SOFR, compounded to a quarterly rate, plus 0.2616% adjustment. The fixed-for-floating swap notional represents the notional amount as of the reporting period. The derivative instruments are a series of quarterly contracts, with notional amounts in line with planned quarterly balances based on expected project finance debt drawdown and expected amortization.

Revolving Credit Facility

On September 22, 2023, Capstone amended its RCF to increase the aggregate commitments from $600 million to $700 million and extended the maturity from May 2026 to September 2027. The Amended RCF bears interest on a sliding scale of adjusted term SOFR plus a margin of 2.000% to 2.875%. This amendment was treated as an extinguishment of the previous debt facility, resulting in $2.7 million of deferred financing fees being written off during the year ended December 31, 2023.

The interest rate at June 30, 2024 was one-month adjusted term SOFR of 5.44% plus 2.000% (December 2023 - adjusted term SOFR of 5.46% plus 2.125%) with a standby fee of 0.45% (2023 – 0.48%) payable on the undrawn balance (adjustable in certain circumstances).

The RCF is secured against the present and future real and personal property, assets and undertakings of Capstone Copper other than defined excluded entities which comprise the Mantoverde mine property and the Santo Domingo development project property.

The RCF requires Capstone to maintain certain financial ratios relating to debt and interest coverage. Capstone was in compliance with these covenants as at June 30, 2024.

Surety Bonds

As at June 30, 2024, the Company has in place seven surety bonds totaling $255.9 million to support various reclamation and other obligation bonding requirements. These comprise $182.0 million securing reclamation obligations at Pinto Valley, $4.0 million provided as security as part of a power supply agreement at Pinto Valley, $1.8 million related to the construction of a port for the Santo Domingo development project in Chile, $27.6 million at Mantoverde, and $40.5 million at Mantos Blancos, respectively, securing reclamation obligations. The Company is also an Indemnitor to the surety bond provider for the surety bond obligations of Minto Metals Corp. ("Minto Metals") ( Note 16 ).

Capstone Copper Corp. Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

14. Deferred Revenue

Silver Precious Metals Purchase Arrangement ("Silver PMPA")

On February 19, 2021, Capstone Mining concluded the Silver PMPA with Wheaton Precious Metals ("Wheaton") whereby Capstone received an upfront cash consideration of $150 million against delivery of 50% of the silver production from the Cozamin mine until 10 million ounces have been delivered, thereafter dropping to 33% of silver production for the remaining life of mine. In addition to the upfront cash consideration of $150 million, as silver is delivered under the terms of the Silver PMPA, the Company receives cash payments equal to 10% of the spot silver price at the time of delivery for each ounce delivered to Wheaton. The Silver PMPA is effective December 1, 2020. Wheaton has been provided certain security in support of the Company’s obligations under the Silver PMPA.

The Company recorded the upfront cash consideration received of $150 million as deferred revenue and recognizes amounts in revenue as silver is delivered under the Silver PMPA. Capstone determines the amortization of deferred revenue to the consolidated statements of income (loss) on a per unit basis using the estimated total number of silver ounces expected to be delivered over the life of the Cozamin mine. The amortization rate requires the use of proven and probable mineral reserves and certain mineral resources which management is reasonably confident will be transferred to mineral reserves. The Company estimates the current portion of deferred revenue based on deliveries anticipated over the next twelve months. During the three and six months ended June 30, 2024, the Company delivered 165,037 and 283,374 ounces (2023 - 174,521 and 286,385 and ounces) of silver to Wheaton under the Silver PMPA.

The agreement with Wheaton includes a completion test which requires the completion of the paste backfill plant by September 30, 2024 and production of at least 105,000 cubic meters of suitable paste backfill for use in the underground operations at Cozamin over a consecutive 90-day period. During Q2 2024, the Company reached an agreement with Wheaton to extend the completion test period of the use of suitable paste backfill in the underground operations to September 30, 2024 and believes the potential exposure is now $nil.

Gold Precious Metals Purchase Arrangement ("Gold PMPA")

On April 21, 2021, Capstone Mining received an early deposit of $30 million ("the Early Deposit") in relation to the Gold PMPA at Santo Domingo with Wheaton effective March 24, 2021. If completion has not been achieved on or before the third anniversary date of receiving the early deposit, and early deposit delay payment will be triggered that would require the Company to sell and deliver 104 ounces of refined gold per month until the earlier of: the month completion is achieved, the month in which the early deposit is repaid to Wheaton or the month which refined gold is first sold and delivered to Wheaton. In the fourth quarter of 2023, the Company recorded an obligation under the gold stream of $7.1 million. As of June 30, 2024, the value of the obligation was $7.3 million.

Additional deposits of $260 million are to be received under the Gold PMPA over the Santo Domingo development project construction period, subject to sufficient financing having been obtained to cover total expected capital expenditures and other customary conditions, for total consideration of $290 million (collectively "the Deposit"). Wheaton will receive 100% of the gold production from the Company's Santo Domingo development project until 285,000 ounces have been delivered, thereafter dropping to 67% of the gold production for the remaining life of mine.

In addition to the deposits of $290 million, as gold is delivered under the terms of the Gold PMPA, Capstone receives cash payments equal to 18% of the spot gold price at the time of delivery for each ounce delivered to Wheaton, until the Deposit has been reduced to zero, thereafter increasing to 22% of the spot gold price upon delivery. Wheaton has been provided certain security in support of the Company’s obligations under the Gold PMPA. The initial term of the Gold PMPA is 20 years.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

Details of changes in the balance of deferred revenue are as follows:

		Silver PMPA	Gold PMPA	Total
Balance, December 31, 2022	$	135,494 $	33,492 $	168,986
Accretion expense		7,528	2,277	9,805
Recognized as revenue on delivery of silver		(13,707)	—	(13,707)
Variable consideration adjustment		(5,326)	—	(5,326)
Balance, December 31, 2023	$	123,989 $	35,769 $	159,758
Accretion expense		3,472	1,216	4,688
Recognized as revenue on deliveryof silver		(7,129)	—	(7,129)
Balance, June 30, 2024	$	120,332 $	36,985 $	157,317
Less: currentportion(Note 10)		(12,647)	—	(12,647)
Non-currentportion	$	107,685 $	36,985 $	144,670

Consideration from the PMPAs is considered variable, as silver and gold stream revenues can be subject to cumulative adjustments when the number of ounces to be delivered under the contracts change, when there is an increase in the Company’s mineral reserve and resource estimates or when there are changes to the mine plans.

15. Income Taxes

Income tax expense (recovery) differs from the amount that would result from applying the Canadian federal and provincial income tax rates to earnings before income taxes. These differences result from the following items:

	Three months ended June 30,	Three months ended June 30,	Three months ended June 30,	Three months ended June 30,		Six months ended	Six months ended	June 30,
		2024		2023		2024		2023
Income (loss) before income taxes	$	47,479	$	(32,687)	$	48,452	$	(71,855)
Canadian federal andprovincial income tax rates		27.00 %		27.00 %		27.00 %		27.00 %
Income tax expense (recovery) based on the
above rates		12,819		(8,825)		13,082		(19,401)
Increase (decrease) due to:
Non-deductible expenditures		1,204		3,491		3,185		3,834
Effects of different statutory tax rates on
(income) losses of subsidiaries		(2,209)		1,485		(2,354)		1,742
Chilean mining royalty tax		—		—		—		—
Mexican and Chilean mining royalty taxes		1,876		(249)		2,779		955
Current period losses for which deferred tax
assets (were) were not recognized		2,905		16,618		5,998		16,993
Adjustments to tax estimates in prior years		—		(8,540)		—		(8,540)
Foreign exchange and other translation
adjustments		2,782		(2,598)		1,842		(5,062)
Other		611		(158)		2,195		485
Income tax expense(recovery)	$	19,988	$	1,224	$	26,727	$	(8,994)

Current income and mining tax expense	$	11,589	$	5,762	$	18,338	$	3,875
Deferred income tax expense(recovery)		8,399		(4,538)		8,389		(12,869)
Income tax expense(recovery)	$	19,988	$	1,224	$	26,727	$	(8,994)

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

In June 2024, Canada enacted the Global Minimum Tax ("GMT") that was developed within the framework of the Organization for Economic Co-operation and Development ("OECD")'s Pillar Two Model rules, with effect from January 1, 2024. The Company applied the mandatory temporary exception to the recognition and disclosure for deferred taxes related to OECD Pillar Two income taxes under IAS 12 Income Taxes . No current taxes related to the GMT have been recorded, as the Company falls within the safe harbour provisions provided within the framework.

16 Provisions

The reclamation and closure cost obligations relate to the operations of the Pinto Valley, Cozamin, Mantos Blancos and Mantoverde mines.

Details of changes in the balances are as follows:

	Reclamation	Reclamation
		& closure			Other	Share-based
		cost	Minto		closure		payment
	obligations		obligation	provisions		obligations		Total
Balance, January 1, 2024	$	214,197 $	41,186	$	35,360	$	9,787 $ 300,530
Share-based payment expense
(Note 17)		—	—		—		7,197	7,197
Change in estimates		(4,666)	443		1,312		—	(2,911)
Interest expense from discounting
obligations		4,637	923		1,339		—	6,899
Settlements during the period		(53)	(8,189)		(4,338)		(8,261)	(20,841)
Currency translation adjustments		—	(930)		(2,584)		11	(3,503)
Balance, June 30, 2024	$	214,115 $	33,433	$	31,089	$	8,734 $ 287,371
Less: Current portion included within
other liabilities(Note 10)		—	(24,581)		—		(6,245)	(30,826)
Totalprovisions - non-current	$	214,115 $	8,852	$	31,089	$	2,489 $ 256,545
Balance, January 1, 2023	$	199,739 $	—	$	29,929	$	40,464 $ 270,132
Additions		—	53,923		—		—	53,923
Share-based payment expense
(Note 17)		—	—		—		15,045	15,045
Change in estimates		6,741	(2,035)		8,467		—	13,173
Interest expense from discounting
obligations		8,960	—		1,437		—	10,397
Settlements during the year		(1,243)	(10,407)		(4,791)		(46,071)	(62,512)
Currencytranslation adjustments		—	(295)		318		349	372
Balance,December 31,2023	$	214,197 $	41,186	$	35,360	$	9,787 $ 300,530
Less: Current portion included within
other liabilities_(Note 10)_		—	(23,943)		—		(8,455)	(32,398)
Totalprovisions - non-current	$	214,197 $	17,243	$	35,360	$	1,332 $ 268,132

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

Capstone Copper Corp.

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

Minto Obligation

In June 2019, the Company completed the sale of its 100% interest in the Minto mine to Pembridge Resources PLC ("Pembridge"). In conjunction with the sale, Minto Metals Corp. ("Minto Metals") posted a surety bond to cover potential future reclamation liabilities. While this surety bond is outstanding, the Company remains an Indemnitor to the surety bond provider for Minto Metal's surety bond obligations in the Yukon.

In May 2023, Minto Metals announced that it had ceased all operations at the Minto mine located within the Selkirk First Nation's territory in central Yukon Territories and that the Yukon Government assumed care and control of the site. As Minto Metals had defaulted on the surety bond, in Q2 2023 Capstone recognized an initial liability of approximately US$55 million (C$72 million) related to the Company's obligations towards the issuer of the surety bond. In estimating the provision, the Company has made assumptions regarding the timing of cash outflows and discount rate. Due to the associated uncertainty of the timing of cash outflows, it is possible that estimates may need to be revised. The Company's exposure on calls against the surety bond is capped at approximately C$72 million therefore the timing of cash outflows and changes in the C$:US$ exchange rate are the largest contributors to the measurement uncertainty.

As at June 30, 2024, the Company has made payments of $18.6 million (December 31, 2023 - $10.4 million) to the Yukon Government for reclamation work performed. As at June 30, 2024, the Company has reclassified C$33.6 million (US$24.6 million) to other liabilities.

During Q2 2024, the Company has agreed with the issuer of the surety bond, who held title to a C$10 million trust account for payment of future reclamation costs, in which these funds would be released to Capstone over the course of the year. As at June 30, 2024, a receivable of C$10 million was recorded in other current receivables, of which C$2 million was received in July 2024.

17. Share Capital

Authorized

An unlimited number of common voting shares without par value.

On February 8, 2024, the Company and Orion Fund JV Limited, Orion Mine Finance Fund II LP and Orion Mine Finance (Master) Fund I-A LP (collectively, “Orion”) closed a bought deal financing with a syndicate of underwriters ("the Offering"). Pursuant to the Offering, the Underwriters purchased on a bought deal basis from the Company and Orion, a total of 68,448,000 common shares of Capstone (“Common Shares”) at a price of C$6.30 per Common Share (the "Offering Price"), which included the exercise in full of the Underwriters' overallotment option of 8,928,000 Common Shares from the Company, for aggregate gross proceeds under the Offering of C$431,222,400.

In connection with the Offering, 56,548,000 Common Shares were issued by the Company for gross proceeds to the Company of C$356.3 million and 11,900,000 shares were sold by Orion for gross proceeds to Orion of C$75.0 million. The Company did not receive any proceeds from the secondary sale, which were paid directly to Orion.

Stock options

Pursuant to the Company’s amended stock option plan, directors may authorize the granting of options to directors, officers and employees of the Company to a maximum of 10% of the issued and outstanding common shares at the time of grant, with a maximum of 5% of the Company’s issued and outstanding shares reserved for any one person annually. Options granted under the plan have a term not to exceed five years, with the vesting term at the discretion of the Board. The exercise price of options granted are denominated in Canadian dollars (“C$”).

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

The continuity of stock options issued and outstanding is as follows:

	Options		Weighted average
	outstanding	exerciseprice(C$)
Outstanding,December 31,2023	3,542,343	$	4.16
Granted	958,560		7.25
Exercised	(1,120,610)		2.60
Expired	(20,389)		6.76
Forfeited	(12,406)		6.40
Outstanding,June 30,2024	3,347,498	$	5.55

As at June 30, 2024, the following options were outstanding and outstanding and exercisable:

Exerciseprices(C$)
$0.70
$3.47 - $3.90
$4.43 - $4.72
$5.08 - $5.79
$6.00 - $6.97
$7.25

Outstanding
Outstanding& exercisable
Number of
options
Weighted
average
exercise
price(C$)
Weighted
average
remaining
life(years)
Number of
options
Weighted
average
exercise
price(C$)
Weighted
average
remaining
life(years)
366,555 $ 0.70
0.9
366,555 $ 0.70
0.9
463,567
3.88
2.0
463,567
3.80
2.0
47,528
4.60
3.4
13,046
4.43
3.7
202,637
5.11
3.1
73,921
5.17
3.1
1,318,302 $ 6.36
3.5
608,275 $ 6.51
3.3
948,909 $ 7.25
9.9
— $ —
—
3,347,498 $ 5.55
4.3
1,525,364 $ 4.21
2.1

During the three and six months ended June 30, 2024, the total fair value of options granted was $nil and $2.9 million (2023 – $0.1 million and $2.0 million) and had a weighted average grant-date fair value of C$4.59 (2023 – C$3.16 and C$2.99) per option. During the three and six months ended June 30, 2024, the weighted average share price of the 0.7 and 1.1 million options exercised during the period was C$9.98 and C$9.14 (2023 - 0.5 million and 2.4 million options and C$6.48 and C$6.30).

Weighted average assumptions used in calculating the fair values of options granted during the period were as follows:

follows:
	Three months ended June 30,		Six months ended	June 30,
	2024	2023	2024	2023
Risk-free interest rate	N/A	3.09 %	3.35 %	2.99	%
Expected dividend yield	N/A	nil	nil		nil
Expected share price volatility	N/A	63 %	60 %	63	%
Expected forfeiture rate	N/A	6.35 %	6.51 %	6.35	%
Expected life	N/A	3.9	3.7years	3.9years

Other share-based compensation plans

Under the Share Unit Plan (“SUP”), the Company grants Performance Share Units (“PSUs”) and Restricted Share Units (“RSUs”). PSUs granted to executives vest after three years and are subject to a performance measure of 0% to 200%. RSUs granted to executives and employees vest 1/3 per year starting on the first anniversary of the grant date. Under the Director’s Deferred Share Unit Plan, the Company grants Deferred Share Units (“DSUs”). DSUs granted to directors vest upon issuance but are not redeemable until cessation of service on the Board.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

Under the SUP, PSU and RSU obligations can be settled in cash, shares delivered from a Share Purchase Trust or a combination thereof, as determined by and at the discretion of the Human Resources and Compensation Committee of the Company’s Board of Directors. DSU obligations, under the Director’s Deferred Share Unit Plan, are redeemed in cash.

Deferred Share Units

The Company has established a Deferred Share Unit Plan (the “DSU Plan”) whereby DSUs are issued to directors as long-term incentive compensation. DSUs issued under the DSU Plan are fully vested upon issuance and entitle the holder to a cash payment only following cessation of service on the Board of Directors. The value of the DSUs when converted to cash will be equal to the number of DSUs granted multiplied by the quoted market value of a Capstone common share at the time the conversion takes place.

Compensation expense related to DSUs is recorded immediately and is adjusted at each reporting period to reflect the change in quoted market value of the Company’s common shares. DSU obligations, under the DSU Plan, are redeemed in cash.

Restricted Share Units and Performance Share Units

The Company has established a Share Unit Plan (the “Plan”) whereby RSUs and PSUs are issued as long-term incentive compensation. RSUs are issued to employees. PSUs are issued to executives.

RSUs issued under the Plan entitle the holder to a cash payment, shares delivered from a Share Purchase Trust or a combination thereof, at the end of the vesting period equal to the number of RSUs granted, multiplied by the quoted market value of a Capstone common share on the completion of the vesting period. RSUs granted to employees vest 1/3 per year over their three-year term.

PSUs issued under the Plan entitle the holder to a cash payment, shares delivered from a Share Purchase Trust or a combination thereof, at the end of a three-year performance period equal to the number of PSUs granted, adjusted for a performance factor and multiplied by the quoted market value of a Capstone common share on the completion of the performance period. The performance factor can range from 0% to 200% and is determined by comparing the Company’s total shareholder return to those achieved by a peer group of companies.

Compensation expense related to RSUs and PSUs is recorded over the three-year vesting period. The amount of compensation expense is adjusted at each reporting period to reflect the change in quoted market value of the Company’s common shares, the number of RSUs and PSUs expected to vest, and in the case of PSUs, the expected performance factor. RSU and PSU obligations, under the Share Unit Plan, can be settled in cash, shares delivered from a Share Purchase Trust or a combination thereof, as determined by and at the discretion of the Human Resources and Compensation Committee of the Company’s Board of Directors.

During the three and six months ended June 30, 2024, the total fair value of DSUs, RSUs, and PSUs granted under the SUP was $nil and $8.8 million (2023 – $0.2 million and $6.5 million), and had a weighted average grantdate fair value of $nil and C$7.25 (2023 – C$6.32 and C$6.01) per unit.

PSUs and RSU’s awarded to executives have been granted under a Treasury Share Unit Plan (“TSUP”). Treasury PSUs granted to executives vest after three years and are subject to a performance measure of 0% to 200%. Treasury RSUs granted to executives vest 1/3 per year starting on the first anniversary of the grant date. Canadian based executives are able to retain the PSUs and RSUs after vesting and elect when to redeem the units within 10 years of the grant date. Under the TSUP, PSU and RSU obligations can be settled in shares from treasury or cash, at the election of the Company.

During the three and six months ended June 30, 2024, the total fair value of units granted under the TSUP was $nil and $4.6 million (2023 – $nil and $2.4 million), and had a weighted average grant-date fair value of $nil and C$4.53 (2023 – $ nil and C$5.77) per unit.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

Weighted average assumptions used in calculating the fair values of units granted under the TSUP during the period were as follows:

period were as follows:
	Three months ended June		30,	Six months ended	June 30,
	2024	2023		2024	2023
Risk-free interest rate		N/A	N/A	3.08 %	2.76	%
Expected dividend yield		N/A	N/A	nil		nil
Expected share price volatility		N/A	N/A	61 %	64	%
Expected forfeiture rate		N/A	N/A	1.66 %		nil
Expected life		N/A	N/A	8.2years	8.7years

No Capstone shares were purchased by the Share Purchase Trust during the three and six months ended June 30, 2024 and 2023.

The continuity of DSUs, RSUs, and PSUs issued and outstanding is as follows:

	Share Unit Plan	Share Unit Plan		Treasury Share	Unit Plan
	DSUs	RSUs	PSUs	RSUs	PSUs
Outstanding,December 31,2023	957,331	1,487,114	80,017	876,550	1,853,278
Granted	104,486	1,370,746	179,870	246,469	1,193,880
Forfeited	—	(195,773)	—	—	—
Settled	(536,723)	(707,047)	(97,940)	(59,852)	(308,720)
Outstanding,June 30,2024	525,094	1,955,040	161,947	1,063,167	2,738,438

Share-based compensation expense:

Share-based compensation expense:
	Three months ended June 30,			Six months ended	June	30,
		2024	2023	2024	2023
Share-based compensation expense related to
stock options	$	585$	389$	1,159$		877
Share-based compensation expense related to
RSUs and PSUs (TSUP)		857	594	3,346	1,088
Share-based compensation expense related to
DSUs,RSUs and PSUs(SUP)		3,133	1,406	7,197	12,442
Total share-based compensation expense	$	4,575$	2,389$	11,702$	14,407

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

Capstone Copper Corp.

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

18. Revenue

The Company’s revenue breakdown by metal is as follows:

	Three months ended June 30,	Three months ended June 30,	Three months ended June 30,	Six months ended	June 30,
		2024	2023	2024	2023
Copper concentrate	$	298,284$	210,975$	543,421$	474,083
Copper cathode		112,423	119,942	216,548	221,583
Silver		11,621	12,709	20,556	20,046
Molybdenum		1,158	(610)	1,760	3,132
Gold		635	1,076	(138)	1,857
Zinc		—	(24)	(2)	(24)
Totalgross revenue		424,121	344,068	782,145	720,677
Less: treatment and selling costs		(16,801)	(12,305)	(33,457)	(33,038)
Less:pricingand volume adjustments		(14,267)	2,175	(15,738)	(18,105)
Revenue	$	393,053$	333,938$	732,950$	669,534

Pricing and volume adjustments represent mark-to-market adjustments on initial estimates of provisionally priced sales, offsetting realized and unrealized changes to fair value for time swaps, and adjustments to originally invoiced weights and assays.

19. Earnings (Loss) Per Share

Earnings (loss) per share, calculated on a basic and diluted basis, is as follows:

	Three months ended June	Three months ended June	Three months ended June	30,	Six months ended June	Six months ended June	30,
		2024	2023		2024	2023
Earnings (loss) per share
Basic and diluted		0.04	(0.05)		0.03	(0.08)
Net earnings (loss)
Net earnings (loss) attributable to common
shareholders - basic and diluted	$	29,345$	(36,510) $		24,508$ (56,512)

Weighted average shares outstanding- basic		753,741,708	693,783,922		741,104,566	692,823,554
Dilutive securities
Stock options		1,430,474		—	1,214,195		—
TSUP units		1,563,721		—	1,311,242		—
Weighted average shares outstanding- diluted		756,735,903	693,783,922		743,630,003	692,823,554
Potentially dilutive securities excluded (as anti-
dilutive)
Stock options		—	5,116,805		—	5,116,805
TSUP units		—	2,712,331		—	2,712,331

For periods where the Company records a loss, Capstone Copper calculates diluted loss per share using the basic weighted average number of shares. If the diluted weighted average number of shares were used, the result would be a further reduction in the loss per share.

Notes to the Condensed Interim Consolidated Financial Statements

Capstone Copper Corp.

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

20. Supplemental Cash Flow Information

The changes in non-cash working capital items are composed as follows:

	Three months ended June 30,	Three months ended June 30,	Three months ended June 30,	Six months ended	June 30,
		2024	2023	2024	2023
Receivables	$	22,440$	13,209$	3,824$	37,167
Inventories		(12,964)	16,966	(18,670)	3,302
Other assets		(8,300)	(5,227)	(8,015)	(13,311)
Accounts payable and accrued liabilities		4,137	(41,358)	7,589	(58,131)
Other liabilities		(10,416)	2,763	(4,659)	(24,854)
Net change in non-cash workingcapital	$	(5,103) $	(13,647) $	(19,931) $	(55,827)

The changes in other non-cash items are composed as follows:

	Three months ended June 30,	Three months ended June 30,	Three months ended June 30,	Six months ended	June 30,
		2024	2023	2024	2023
VAT receivable	$	—$	(36)$	218$	(36)
Other non-current assets		997	(8,238)	546	(7,972)
Other non-current liabilities		(26)	(2,245)	(700)	(1,602)
Net change in other non-cash items	$	971$	(10,519) $	64$	(9,610)

Below is a reconciliation of depreciation in operating cash-flows in the consolidated statement of cash-flows to the Mineral Properties, Plant and Equipment (Note 8 ):

Mineral Properties, Plant and Equipment (Note 8):
	Three months ended June 30,			Six months ended	June	30,
		2024	2023	2024	2023
Depreciation and depletion per mineral
properties, plant and equipment(Note 8)		74,282	49,933	141,340	105,152
Depreciation included in general and
administrative expense		—	58	88		196
Depreciation included in care and maintenance		961	177	1,923		275
Non-cash inventory recovery of write-down		(517)	1,791	(851)	(1,044)
Change in depreciation and depletion capitalized
to inventory, capitalized stripping and
construction inprogress		(2,101)	1,942	(304)	(5,399)
Depreciation and depletion expense	$	72,625$	53,901$	142,196$	99,180

Below is a reconciliation of additions in investing cash-flows in the consolidated statement of cash-flows to the Mineral Properties, Plant and Equipment (Note 8):

	Three months ended June 30,	Three months ended June 30,	Three months ended June 30,	Six months ended	June 30,
		2024	2023	2024	2023
Additions / expenditures on mining interests
(Note 8)		(194,584)	(201,264)	(364,575)	(410,642)
Lease additions_(Note 12)_		51,344	17,126	98,072	25,656
Changes in workingcapital and other items (i)		5,396	31,745	10,333	45,945
Expenditures on mininginterests_(ii)_	$	(137,844) $	(152,393) $	(256,170) $	(339,041)

i. The changes in working capital relate to the movement in accounts payable and prepayments related primarily to capital expenditures on the MVDP.

ii. Includes $19.7 million and $41.0 million of capitalized finance costs for the three and six months ended June 30, 2024 (2023 - $15.3 million and $27.6 million).

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

Capstone Copper Corp.

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

21. Commitments

Royalty Agreements

Under the terms of the December 2003 option agreement with Grupo Minera Bacis S.A. de C.V. (“Bacis”), Capstone Mining assumed a 100% interest in the Cozamin mine with a 3% net smelter royalty paid to Bacis on all payable metal sold from production on the property covered by the agreement.

In connection with the financing of the Mantos Blancos Debottlenecking Development Project, Mantos Copper S.A. entered into a royalty agreement with Southern Cross Royalties Limited ("Southern Cross"). Southern Cross is entitled to a 1.525% net smelter royalty on copper production. The royalty is for a period initially through January 1, 2035 that may be extended by Southern Cross at its sole discretion through the duration of the mining rights and is subject to the Company's option to reduce the royalty amount by 50% any time after January 1, 2023, subject to a one-time payment.

Agreement with Osisko Bermuda Limited ("Osisko")

Pursuant to a long-term streaming agreement made in 2015, that covers the life of mine, the Company delivers 100% of the payable silver sold by Mantos Blancos to Osisko Bermuda Limited ("Osisko"). Osisko pays a cash price of 8% of the spot price at the time of each delivery, in addition to an upfront acquisition price previously paid. After 19.3 million ounces of silver have been delivered under the agreement, the stream will be reduced to 40%. Mantos Blancos has delivered 6.0 million silver ounces since contract inception until June 30, 2024.

Agreement with Jetti Resources, LLC (“Jetti”)

Under the terms of the 2019 agreement, the Company is required to make quarterly royalty payments to Jetti based on an additional net profits calculation resulting from cathode production at the Pinto Valley mine. The initial term of the agreement is ten years, renewable for 5-year terms thereafter.

Offtake agreements

The Company has sales commitments of copper concentrate production at Mantos Blancos under offtake agreements with Glencore.

The Company has sales commitments equal to 100% of its copper cathode production at Mantoverde and Mantos Blancos under offtake agreements with Anglo American Marketing Limited ("AAML") and expect to deliver into the commitments by mid-September 2024, subject to mine production.

The Company has concentrate offtake agreements with third parties whereby they will purchase 100% of the copper concentrate produced by the Cozamin mine up to the end of December 2024.

The Company has a number of annual and multi-year concentrate offtake agreements with third parties whereby they will purchase the copper concentrate produced by the Pinto Valley Mine.

The Company entered into an offtake agreement with Boliden Commercial AB (“Boliden”) for 75,000 tonnes of copper concentrates in each contract year. The offtake agreement expires ten years after the commencement of commercial production at the MVDP, subject to potential extension if less than 750 thousand tonnes of copper concentrates have been delivered at the contract term and subject to termination if commercial production does not commence by December 31, 2024.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

MMC agreed to provide a $60 million COF in exchange for additional offtake of copper concentrate production under a 10-year contract. The offtake agreement includes Mantoverde agreeing to sell 30% of its annual copper production per year delivered for its equivalent in copper concentrates, plus an additional amount of 30,000 tonnes of copper concentrate as a result of fully utilizing the COF that was provided by MMC in connection with the MVDP. The agreement between MMC and Mantoverde to sell 30% of its annual copper production is for the duration of the Mantoverde commercial mine life. The amount payable for copper is based on average LME prices, subject to certain terms (Note 11).

Other

The Company has contractual agreements extending until 2026 and 2033 to purchase water for operations at Mantos Blancos.

The Company has contractual agreements for the purchase of power for operations at Mantos Blancos and Mantoverde, extending until 2038 and 2039, respectively. The Company also entered into a contractual agreement for access to a power transmission plant for the Santo Domingo development project, for a period of 12 years from the date the transmission facility construction was completed, in Q4 2023.

The Company has contractual arrangements at Mantos Blancos and Mantoverde for the purchase of 210,000 tonnes of acid during the remainder of 2024, 100,000 tonnes in 2025 and 100,000 tonnes in 2026.

The Company has provided a guarantee to the Chilean Internal Revenue Service that all VAT amounts refunded, plus interest, will be repaid if construction of the Santo Domingo development project is not completed by August 31, 2026.

22. Other Expense

Details are as follows:

Details are as follows:
	Three months ended June			30,	Six months ended	June	30,
		2024	2023		2024	2023
Care and maintenance expense	$	(1,051)$		—$	(2,125)$		—
Gold stream obligation		(100)		—	(700)		—
Restructuring costs		(10)		—	(422)		—
Gain on disposal of MPP&E		—		—	1,262		—
Collective bargaining costs		—	(8,923)		—	(8,923)
Miscellaneous other expense		(2,924)	(8,146)		(6,380)	(10,862)
Total other expense	$	(4,085) $	(17,069) $		(8,365) $	(19,785)

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

Capstone Copper Corp.

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

23. Finance Income and Costs

Details of finance income and costs are as follows:

	Three months ended June 30,	Three months ended June 30,	Three months ended June 30,	Six months ended	June 30,
		2024	2023	2024	2023
Interest income	$	1,149$	1,936$	2,795$	3,318
Interest on RCF		(6,397)	(4,983)	(14,814)	(7,555)
Interest on MVDP facility		(11,142)	(10,450)	(22,040)	(20,279)
Interest on shareholder loans and COF		(4,244)	(2,254)	(8,204)	(3,509)
Commitment and guarantee fees		(1,328)	(1,456)	(2,748)	(2,913)
Lease liability interest_(i)_		(1,789)	(1,959)	(2,797)	(3,875)
Accretion of deferred revenue		(2,344)	(2,474)	(4,688)	(4,925)
Accretion on decommissioning & restoration
provisions		(3,574)	(2,437)	(5,870)	(4,711)
Accretion on payable on purchase of NCI		(423)	(503)	(945)	(1,000)
Accretion on Minto obligation		(420)	—	(923)	—
Amortization of financing fees		(11)	(263)	(186)	(529)
Other interest expense		(2,516)	(1,045)	(2,652)	605
Sub-total	$	(33,039) $	(25,888) $	(63,072) $	(45,373)
Less finance costs capitalized on construction in
progress		25,500	18,397	47,050	30,000
Total finance cost,net	$	(7,539) $	(7,491) $	(16,022) $	(15,373)

i. A portion of accretion on leases has been capitalized to Construction in Progress related to the MVDP.

Finance income (expense) are as follows:

	Three months ended June 30,	Three months ended June 30,	Three months ended June 30,	Three months ended June 30,		Six months ended	Six months ended	June 30,
		2024		2023		2024		2023
Finance income	$	1,149	$	1,936	$	2,795	$	3,318
Finance cost		(8,688)		(9,427)		(18,817)		(18,691)
Total finance cost,net	$	(7,539)	$	(7,491)	$	(16,022)	$	(15,373)

24. Segmented Information

The Company is engaged in mining, exploration and development of mineral properties, and has operating mines in the US, Chile and Mexico. The Company has six reportable segments as identified by the individual mining operations of Pinto Valley (US), Mantos Blancos (Chile), Mantoverde (Chile), Cozamin (Mexico), as well as the Santo Domingo development project (Chile) and Other. Early stage exploration, other and corporate operations are reported in the Other segment. Intercompany revenue and expense amounts have been eliminated within each segment in order to report on the basis that management uses internally for evaluating segment performance. Total assets and liabilities do not reflect intercompany balances, which have been eliminated on consolidation. Segments are operations reviewed by the CEO, who is considered to be the chief operating decision maker.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

Operating segment details are as follows:

	Three months ended June 30, 2024
	Pinto Valley Mantos Blancos Mantoverde Cozamin Santo Domingo Other Total
Revenue Copper concentrate Copper cathode Silver Molybdenum Gold Treatment and selling costs Pricing and volume adjustments	$ 161,845 $ 78,453 $ — $ 57,986 $ — $ — $ 298,284 8,114 19,085 85,224 — — — 112,423 2,196 331 — 9,094 — — 11,621 1,158 — — — — — 1,158 635 — — — — — 635 (10,367) (3,311) (307) (2,816) — — (16,801) (3,236) (1,459) (166) (358) — (9,048) (14,267)
Net revenue Production costs Royalties Depletion and amortization	160,345 93,099 84,751 63,906 — (9,048) 393,053 (80,551) (68,740) (70,506) (24,490) — — (244,287) (808) (2,280) (828) (1,193) — — (5,109) (20,279) (25,164) (15,382) (10,322) — — (71,147)
Income (loss) from mining operations General and administrative expenses Exploration expenses Share-based compensation expense	58,707 (3,085) (1,965) 27,901 — (9,048) 72,510 (38) — — (8) (22) (8,194) (8,262) (1) — — (12) — (152) (165) — — — — — (4,575) (4,575)
Income (loss) from operations Realized and unrealized gains (losses) on derivative instruments Other (expense) income - net Net finance costs	58,668 (3,085) (1,965) 27,881 (22) (21,969) 59,508 — — (3,191) — — (949) (4,140) (2,251) (3,653) (2,066) 608 (104) 7,116 (350) (1,000) (1,813) (1,955) (2,267) (529) 25 (7,539)
Income (loss) before income taxes Income tax expense	55,417 (8,551) (9,177) 26,222 (655) (15,777) 47,479 (10,703) 2,621 2,994 (11,955) — (2,945) (19,988)
Total net income(loss)	$ 44,714 $ (5,930) $ (6,183) $ 14,267 $ (655) $(18,722) $ 27,491
Mineral properties, plant & equipment additions	$ 23,368 $ 60,890 $ 100,706 $ 6,030 $ 2,870 $ 720 $ 194,584

i. Included in pricing and volume adjustments are realized and unrealized gains (losses) on the Company's quotational pricing copper contracts.

ii. Intersegment sales and transfers are eliminated in the table above. For the three months ended June 30, 2024, intersegment revenue for Cozamin and the Other segment was $5.0 million and $0.5 million (2023 - $4.1 million and $0.5 million), respectively.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

	Three months ended June 30,2023
	Pinto Valley Mantos Blancos Mantoverde Cozamin Santo Domingo Other Total
Revenue Copper concentrate Copper cathode Silver Molybdenum Gold Zinc Treatment and selling costs Pricingand volume adjustments	$ 92,520 $ 67,241 $ — $ 51,214 $ — $ — $ 210,975 5,854 30,032 84,056 — — — 119,942 1,150 576 — 10,983 — — 12,709 (610) — — — — — (610) — — — (24) — — (24) 1,076 — — — — — 1,076 (7,539) (996) (379) (3,391) — — (12,305) (4,307) (2,187) (359) (83) — 9,111 2,175
Net revenue Production costs Royalties Depletion and amortization	88,144 94,666 83,318 58,699 — 9,111 333,938 (74,470) (81,474) (93,460) (24,603) — — (274,007) (747) (1,345) — (964) — — (3,056) (17,227) (17,805) (9,892) (6,950) — — (51,874)
(Loss) income from mining operations General and administrative expenses Exploration expenses Share-based compensation expense	(4,300) (5,958) (20,034) 26,182 — 9,111 5,001 (32) — — (28) (19) (7,144) (7,223) — — — (31) (2) (1,613) (1,646) — — — — — (2,389) (2,389)
Loss from operations Unrealized and realized gains on derivative instruments Other (expense) income - net Net finance costs	(4,332) (5,958) (20,034) 26,123 (21) (2,035) (6,257) — — 26,613 — — 24,857 51,470 (470) (9,262) (1,676) 1,353 (149) (60,205) (70,409) (778) (1,708) 489 (2,266) (482) (2,746) (7,491)
Loss before income taxes Income tax recovery (expense)	(5,580) (16,928) 5,392 25,210 (652) (40,129) (32,687) 2,626 3,667 (1,251) (4,646) — (1,620) (1,224)
Total net loss Mineral properties, plant & equipment additions	$ (2,954) $ (13,261) $ 4,141 $ 20,564 $ (652) $ (41,749) $ (33,911) 30,812 19,963 130,153 15,367 4,969 — 201,264

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

	Six months ended June 30, 2024
	Pinto Valley Mantos Blancos Mantoverde Cozamin Santo Domingo Other Total
Revenue Copper concentrate Copper cathode Silver Molybdenum Gold Zinc Treatment and selling costs Pricing and volume adjustments *(i)*	$ 279,792 $ 157,358 $ — $ 106,271 $ — $ — $ 543,421 13,796 34,302 168,450 — — — 216,548 3,641 517 — 16,398 — — 20,556 1,760 — — — — — 1,760 (138) — — — — — (138) — — — (2) — — (2) (19,857) (7,174) (823) (5,603) — — (33,457) 79 (3,795) (83) (282) —(11,657) (15,738)
Net revenue Production costs Royalties Depletion and amortization	279,073 181,208 167,544 116,782 — (11,657) 732,950 (156,308) (135,894) (151,218) (49,903) — — (493,323) (1,360) (4,483) (1,655) (2,211) — — (9,709) (41,245) (45,424) (32,121) (20,545) — —(139,335)
Income (loss) from mining operations General and administrative expenses Exploration expenses Share-based compensation expense	80,160 (4,593) (17,450) 44,123 — (11,657) 90,583 (54) — — (41) (46) (14,026) (14,167) (1) — — (17) (15) (442) (475) — — — — —(11,702) (11,702)
Income (loss) from operations Realized and unrealized gains (losses) on derivative instruments Other (expense) income - net Net finance(costs) income	80,105 (4,593) (17,450) 44,065 (61) (37,827) 64,239 — — 1,482 — — (9,360) (7,878) (3,287) (1,145) 4,954 299 (542) 7,834 8,113 (2,128) (3,337) (2,571) (4,595) (1,050) (2,341) (16,022)
Income (loss) before income taxes Income tax(expense) recovery	74,690 (9,075) (13,585) 39,769 (1,653) (41,694) 48,452 (13,387) 1,984 4,307 (15,965) — (3,666) (26,727)
Total net income(loss)	$ 61,303 $ (7,091) $ (9,278) $ 23,804 $ (1,653) $(45,360) $ 21,725
Mineral properties, plant & equipment additions	$ 38,207 $ 86,812 $ 217,112 $ 12,588 $ 8,033 $ 1,823 $ 364,575

i. Included in pricing and volume adjustments are realized and unrealized gains (losses) on the Company's quotational pricing copper contracts.

ii. Intersegment sales and transfers are eliminated in the table above. For the six months ended June 30, 2024, intersegment revenue for Cozamin and the Other segment was $7.8 million and $0.8 million (2023 - $6.6 million and $0.7 million), respectively.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

	Six months ended June 30,2023
	Pinto Valley Mantos Blancos Mantoverde Cozamin Santo Domingo Other Total
Revenue Copper concentrate Copper cathode Silver Molybdenum Gold Zinc Treatment and selling costs Pricingand volume adjustments	$ 214,524 $ 159,947 $ — $ 99,612 $ — $ — $ 474,083 11,306 63,222 147,055 — — — 221,583 2,502 1,100 — 16,444 — — 20,046 3,132 — — — — — 3,132 1,857 — — — — — 1,857 — — — (24) — — (24) (16,930) (8,850) (1,307) (5,951) — — (33,038) (4,194) (4,598) (1,461) (762) — (7,090) (18,105)
Net revenue Production costs Royalties Depletion and amortization	212,197 210,821 144,287 109,319 — (7,090) 669,534 (156,726) (157,230) (157,053) (43,379) — — (514,388) (1,066) (3,120) — (1,820) — — (6,006) (38,737) (30,634) (17,549) (12,833) — — (99,753)
Income (loss) from mining operations General and administrative expenses Exploration expenses Share-based compensation expense	15,668 19,837 (30,315) 51,287 — (7,090) 49,387 (52) — — (51) (54) (12,708) (12,865) (1) — — (42) (40) (2,762) (2,845) — — — — — (14,407) (14,407)
Income (loss) from operations Unrealized and realized gain on derivative instruments Other (expense) income - net Net finance costs	15,615 19,837 (30,315) 51,194 (94) (36,967) 19,270 — — 6,374 — — 261 6,635 (906) (15,462) (7,503) 2,519 (246) (60,789) (82,387) (1,550) (3,339) 418 (4,504) (1,041) (5,357) (15,373)
Income (loss) before income taxes Income tax recovery (expense)	13,159 1,036 (31,026) 49,209 (1,381) (102,852) (71,855) 805 (736) 9,860 (9,649) — 8,714 8,994
Total net income (loss) Mineral properties, plant & equipment additions	$ 13,964 $ 300 $ (21,166) $ 39,560 $ (1,381) $ (94,138) $ (62,861) 41,241 43,209 292,239 25,106 8,847 — 410,642

		As at June 30, 2024
		Pinto Valley Mantos Blancos Mantoverde Cozamin Santo Domingo Other Total
Mineral properties, plant and equipment		$ 755,730 $ 1,046,173 $ 2,985,936 $ 251,246 $ 461,942 $ 3,655 $ 5,504,682
Total assets		$ 892,513 $ 1,161,927 $ 3,211,395 $ 299,104 $ 471,517 $ 88,361 $ 6,124,817
Total liabilities		$ 236,782 $ 370,847 $ 1,471,457 $ 233,012 $ 61,567 $ 400,460 $ 2,774,125
		As at December 31,2023
		Pinto Valley Mantos Blancos Mantoverde Cozamin Santo Domingo Other Total
Mineral properties, plant and equipment		$ 758,846 $ 1,008,874 $ 2,803,818 $ 259,245 $ 453,908 $ 1,566 $ 5,286,257
Total assets		$ 876,456 $ 1,133,560 $ 3,018,904 $ 302,805 $ 490,671 $ 51,519 $ 5,873,915
Total liabilities		$ 232,368 $ 337,665 $ 1,358,651 $ 109,055 $ 18,415 $ 751,639 $ 2,807,793

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Three and Six Months Ended June 30, 2024 and 2023

(tabular amounts expressed in thousands of US dollars, except share and per share amounts)

25. Subsequent Events

Subsequent to the quarter-ended June 30, 2024, the Company entered into a binding share purchase agreement (the "SPA") with Inversiones Alxar S.A. and Empress COPEX S.A., collectively the "sellers" to acquire 100% of the shares of Compania Minera Sierra Norte, S.A. ("Sierra Norte"). Under the terms of the SPA, Capstone will pay the sellers $40 million in share consideration. Closing is expected within one-week.

The financial effects of this acquisition will be reflected in subsequent reporting periods.

AI assistant

Capstone Copper Corp. — Interim / Quarterly Report 2024

48344_rns_2024-08-01_9ad4061c-75b0-4b88-a058-d461c402d6f1.pdf

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2024

Capstone Copper Corp. Condensed Interim Consolidated Statements of Financial Position

Capstone Copper Corp.

Condensed Interim Consolidated Statements of Income (Loss) Three and Six Months Ended June 30, 2024 and 2023

Capstone Copper Corp.

Condensed Interim Consolidated Statements of Comprehensive Income (Loss) Three and Six Months Ended June 30, 2024 and 2023

Capstone Copper Corp.

Condensed Interim Consolidated Statements of Cash Flows

Three and Six Months Ended June 30, 2024 and 2023

Capstone Copper Corp.

Condensed Interim Consolidated Statements of Changes in Equity Three and Six Months Ended June 30, 2024 and 2023

Capstone Copper Corp.

1. Nature of Operations

2. Basis of preparation and consolidation

Capstone Copper Corp.

3 Material Accounting Policy Information, Estimates and Judgements

4 Adoption of New and Revised IFRS and IFRS Not Yet Effective

New IFRS Pronouncements

Issued but not yet effective

[5.] Financial Instruments

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

Capstone Copper Corp.

Set out below are the Company’s financial liabilities by category:

Financial instruments and related risks

Derivative instruments

Capstone Copper Corp.

Capstone Copper Corp.

Notes to the Condensed Interim Consolidated Financial Statements

6. Receivables

Capstone Copper Corp.

7. Inventories

Capstone Copper Corp.

8. Mineral Properties, Plant and Equipment

Details are as follows:

Capstone Copper Corp.

9. Other Assets

Capstone Copper Corp.

10. Other Liabilities

Details are as follows:

Working Capital Facilities

Payable on purchase of Non-Controlling Interest ("NCI")

Gold stream obligation

Capstone Copper Corp.

11. Non-Controlling Interest

Capstone Copper Corp.

12. Lease Liabilities

Capstone Copper Corp.

13. Long-Term Debt

Mantoverde Development Project Facility

Capstone Copper Corp.

Revolving Credit Facility

Surety Bonds

14. Deferred Revenue

Silver Precious Metals Purchase Arrangement ("Silver PMPA")

Gold Precious Metals Purchase Arrangement ("Gold PMPA")

Capstone Copper Corp.

15. Income Taxes

Capstone Copper Corp.

16 Provisions

Details of changes in the balances are as follows:

Minto Obligation

17. Share Capital

Authorized

Stock options

Capstone Copper Corp.

Capstone Copper Corp.

Deferred Share Units

Restricted Share Units and Performance Share Units

Capstone Copper Corp.

Capstone Copper Corp.

18. Revenue

19. Earnings (Loss) Per Share

Capstone Copper Corp.

20. Supplemental Cash Flow Information

Capstone Copper Corp.

Capstone Copper Corp. Interim / Quarterly Report 2024