Capstone Copper Corp. - Interim / Quarterly Report 2024

1.0 BUSINESS OVERVIEW......................................................................................................... 5 2.0 Q2 2024 HIGHLIGHTS & SIGNIFICANT ITEMS ............................................................... 6 3.0 OPERATIONAL REVIEW....................................................................................................... 11 4.0 FINANCIAL REVIEW .............................................................................................................. 21 5.0 NON-GAAP AND OTHER PERFORMANCE MEASURES .............................................. 31 6.0 SELECTED QUARTERLY FINANCIAL INFORMATION................................................... 42 7.0 MANAGEMENT'S REPORT ON INTERNAL CONTROLS............................................... 42 8.0 NATIONAL INSTRUMENT 43-101 COMPLIANCE............................................................ 43 9.0 RISKS AND UNCERTAINTIES ............................................................................................. 43

Page 1

MANAGEMENT’S DISCUSSION AND ANALYSIS OF CAPSTONE COPPER CORP. FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024

Capstone Copper Corp. (“Capstone Copper” or the “Company” or "we") has prepared the following management’s discussion and analysis (the “MD&A”) as of August 1, 2024 and it should be read in conjunction with the Company’s unaudited condensed interim consolidated financial statements and notes thereto for the three and six months ended June 30, 2024. All financial information has been prepared in accordance with International Financial Reporting Standards (“IFRS”) and all dollar amounts presented are United States (“US”) dollars unless otherwise stated. “C$” refers to Canadian dollars.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This document may contain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forwardlooking statements, except as required under applicable securities legislation.

Forward-looking statements relate to future events or future performance and reflect our expectations or beliefs regarding future events. Our Sustainable Development Strategy goals and strategies are based on a number of assumptions, including, but not limited to, the biodiversity and climate-change consequences; availability and effectiveness of technologies needed to achieve our sustainability goals and priorities; availability of land or other opportunities for conservation, rehabilitation or capacity building on commercially reasonable terms and our ability to obtain any required external approvals or consensus for such opportunities; the availability of clean energy sources and zero-emissions alternatives for transportation on reasonable terms; availability of resources to achieve the goals in a timely manner, our ability to successfully implement new technology; and the performance of new technologies in accordance with our expectations.

Forward-looking statements include, but are not limited to, statements with respect to the estimation of Mineral Resources and Mineral Reserves, the success of the underground paste backfill and tailings filtration projects at Cozamin, the timing and cost of the Mantoverde Development Project ("MVDP"), the timing and results of the Optimized Mantoverde Development Project ("MV Optimized FS") and Mantoverde Phase II study, the timing and results of PV District Growth Study (as defined below), the timing and results of Mantos Blancos Phase II Feasibility Study, the timing and success of the Mantoverde - Santo Domingo Cobalt Feasibility Study, the timing and results of the Santo Domingo FS Update and success of incorporating synergies previously identified in the Mantoverde - Santo Domingo District Integration Plan, the timing and results of exploration and potential opportunities at Sierra Norte, the realization of Mineral Reserve estimates, the timing and amount of estimated future production, the costs of production and capital expenditures and reclamation, the timing and costs of the Minto obligations and other obligations related to the closure of the Minto Mine, the budgets for exploration at Cozamin, Santo Domingo, Pinto Valley, Mantos Blancos, Mantoverde, and other exploration projects, the timing and success of the Copper Cities project, the success of our mining operations, the continuing success of mineral exploration, the estimations for potential quantities and grade of inferred resources and exploration targets, our ability to fund future exploration activities, our ability to finance the Santo Domingo development project, environmental and geotechnical risks, unanticipated reclamation expenses and title disputes, the success of the synergies and catalysts related to prior transactions, in particular but not limited to, the potential synergies with Mantoverde and Santo Domingo, the anticipated future production, costs of production, including the cost of sulphuric acid and oil and other fuel, capital expenditures and reclamation of Company’s operations and development projects, our estimates of available liquidity, and the risks included in our continuous disclosure filings on SEDAR+ at www.sedarplus.ca. The impact of global events such as pandemics, geopolitical conflict, or other events, to Capstone is dependent on a number of factors outside of our control and knowledge, including the effectiveness of the measures taken by public health and governmental authorities to combat the spread of diseases, global economic uncertainties and outlook due to widespread diseases or geopolitical events or conflicts, supply chain delays resulting in lack of availability of supplies, goods and equipment, and evolving restrictions relating to mining activities and to travel in certain jurisdictions in which we operate. In certain cases, forward-looking statements can be identified by the use of words such as “anticipates”, “approximately”, “believes”, “budget”, “estimates”, “expects”, “forecasts”, “guidance”, “intends”, “plans”, “scheduled”, “target”, or

Page 2

variations of such words and phrases, or statements that certain actions, events or results “be achieved”, “could”, “may”, “might”, “occur”, “should”, “will be taken” or “would” or the negative of these terms or comparable terminology.

In certain cases, forward-looking statements can be identified by the use of words such as “anticipates”, “approximately”, “believes”, “budget”, “estimates”, expects”, “forecasts”, “guidance”, intends”, “plans”, “scheduled”, “target”, or variations of such words and phrases, or statements that certain actions, events or results “be achieved”, “could”, “may”, “might”, “occur”, “should”, “will be taken” or “would” or the negative of these terms or comparable terminology. In this document certain forward-looking statements are identified by words including “anticipated”, “expected”, “guidance” and “plan”. By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, risks related to inherent hazards associated with mining operations and closure of mining projects, future prices of copper and other metals, compliance with financial covenants, inflation, surety bonding, our ability to raise capital, Capstone Copper’s ability to acquire properties for growth, counterparty risks associated with sales of our metals, use of financial derivative instruments and associated counterparty risks, foreign currency exchange rate fluctuations, market access restrictions or tariffs, changes in general economic conditions, availability and quality of water, accuracy of Mineral Resource and Mineral Reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental regulations and stock exchange rules, compliance with environmental laws and regulations, reliance on approvals, licences and permits from governmental authorities and potential legal challenges to permit applications, contractual risks including but not limited to, our ability to meet the requirements under the Cozamin Silver Stream Agreement with Wheaton Precious Metals Corp. ("Wheaton"), our ability to meet certain closing conditions under the Santo Domingo Gold Stream Agreement with Wheaton, acting as Indemnitor for Minto Metals Corp.’s surety bond obligations, impact of climate change and changes to climatic conditions at our operations and projects, changes in regulatory requirements and policy related to climate change and greenhouse gas ("GHG") emissions, land reclamation and mine closure obligations, introduction or increase in carbon or other "green" taxes, aboriginal title claims and rights to consultation and accommodation, risks relating to widespread epidemics or pandemic outbreaks; the impact of communicable disease outbreaks on our workforce, risks related to construction activities at our operations and development projects, suppliers and other essential resources and what effect those impacts, if they occur, would have on our business, including our ability to access goods and supplies, the ability to transport our products and impacts on employee productivity, the risks in connection with the operations, cash flow and results of Capstone Copper relating to the unknown duration and impact of the epidemics or pandemics, impacts of inflation, geopolitical events and the effects of global supply chain disruptions, uncertainties and risks related to the potential development of the Santo Domingo development project, risks related to the Mantoverde Development Project, increased operating and capital costs, increased cost of reclamation, challenges to title to our mineral properties, increased taxes in jurisdictions the Company operates or is subject to tax, changes in tax regimes we are subject to and any changes in law or interpretation of law may be difficult to react to in an efficient manner, maintaining ongoing social licence to operate, seismicity and its effects on our operations and communities in which we operate, dependence on key management personnel, Toronto Stock Exchange ("TSX") and Australian Securities Exchange ("ASX") listing compliance requirements, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing input costs such as those related to sulphuric acid, electricity, fuel and supplies, increasing inflation rates, competition in the mining industry including but not limited to competition for skilled labour, risks associated with joint venture partners and non-controlling shareholders or associates, our ability to integrate new acquisitions and new technology into our operations, cybersecurity threats, legal proceedings, the volatility of the price of the common shares, the uncertainty of maintaining a liquid trading market for the common shares, risks related to dilution to existing shareholders if stock options or other convertible securities are exercised, the history of Capstone Copper with respect to not paying dividends and anticipation of not paying dividends in the foreseeable future and sales of common shares by existing shareholders can reduce trading prices, and other risks of the mining industry as well as those factors detailed from time to time in the Company’s interim and annual financial statements and MD&A of those statements and Annual Information Form, all of which are filed and available for review under the Company’s profile on SEDAR+ at www.sedarplus.ca. Although the Company has attempted to identify important factors that could cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-

Page 3

looking statements will prove to be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements.

Page 4

1.0 BUSINESS OVERVIEW

Capstone Copper Corp. ("Capstone Copper" or "the Company") is an Americas-focused copper mining company headquartered in Vancouver, Canada. We own and operate the Pinto Valley copper mine located in Arizona, USA, the Cozamin copper-silver mine located in Zacatecas, Mexico, the Mantos Blancos copper-silver mine located in the Antofagasta region, Chile and 70% of the Mantoverde copper-gold mine located in the Atacama region, Chile. In addition, we own the fully permitted Santo Domingo copper-iron-gold project, located approximately 30 kilometers northeast of Mantoverde in the Atacama region, Chile as well as a portfolio of exploration properties in the Americas. The Company is listed on the TSX, and effective February 2, 2024, the Company was admitted to the official list of the ASX as an ASX Foreign Exempt Listing.

Page 5

2.0 Q2 2024 HIGHLIGHTS AND SIGNIFICANT ITEMS

Q2 2024 Financial and Operational Highlights

Consolidated H1 2024 copper production of 83,058 tonnes achieved guidance of 80,000 to 90,000 tonnes. Consolidated copper production for Q2 2024 was 40,937 tonnes at C1 cash costs 1 of $2.84/lb, which consisted of 15,994 tonnes at Pinto Valley, 10,070 tonnes at Mantos Blancos, 8,721 tonnes at Mantoverde, and 6,152 tonnes at Cozamin.
Net income attributable to shareholders of $29.3 million, or $0.04 per share for Q2 2024 compared to net loss attributable to shareholders of $36.5 million, or $(0.05) per share for Q2 2023, primarily due to the higher realized copper price of $4.54/lb compared to $3.76/lb (prior to unrealized provision pricing adjustments) and the inclusion of a $53.9 million provision related to the Minto obligation in Q2 2023.
Adjusted net income attributable to shareholders 1 of $20.9 million, or $0.03 per share for Q2 2024 , adjusted net loss attributable to shareholders[1] of $12.2 million in Q2 2023, primarily due to a higher realized copper price.
Adjusted EBITDA[1] of $123.1 million for Q2 2024 compared to $43.4 million for Q2 2023. The increase in Adjusted EBITDA[1] is primarily driven by a higher realized copper price of $4.54/lb compared to $3.76/lb (prior to unrealized provisional pricing adjustments).
Operating cash flow before changes in working capital of $102.9 million in Q2 2024 compared to $22.0 million in Q2 2023.
Net debt 1 of $741.3 million as at June 30, 2024 was largely unchanged compared to net debt of $740.2 million as at March 31, 2024. Total available liquidity 1 of $538.7 million as at June 30, 2024 , comprised of $138.7 million of cash and short-term investments, and $400.0 million of undrawn amounts on the corporate revolving credit facility.
First saleable copper concentrate was produced at the Mantoverde Development Project ("MVDP") in June, as the mine advances commissioning and continues ramp up to full production levels. Achievement of nameplate operating rates is expected with in the third quarter. Total capital for the MVDP remains unchanged at$870 million.
The Company reiterates 2024 guidance of 190,000 to 220,000 tonnes of copper at C1 cash costs of $2.30/lb to $2.50/lb . Copper production is trending toward the lower end of the range, while cash costs are trending toward the higher end.
Subsequent to quarter-end, the Company announced the results of an updated Feasibility Study for its Santo Domingo development project in Chile. The updated Feasibility Study outlines a $2.3 billion initial capital project with an after-tax NPV(8%) of $1.7 billion that represents the next phase of transformational growth in our world-class Mantoverde-Santo Domingo District.
In July 2024, the Company entered into a binding share purchase agreement with Inversiones Alxar S.A. and Empress COPEX S.A. to acquire 100% of the shares of Compania Minera Sierra Norte, S.A. for $40 million which is payable in shares .

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”.

Page 6

Operating Highlights

Operating Highlights	Operating Highlights
Q2 2024 Q2 2023 2024 YTD 2023 YTD
Copper production (tonnes)
*Sulphide business* Pinto Valley 15,994 12,632 31,666 25,532 Cozamin 6,152 6,661 12,158 11,861 Mantos Blancos 8,170 8,405 17,333 19,205 Mantoverde2 58 — 58 —
*Total sulphides* 30,374 27,698 61,215 56,598
*Cathode business* Mantos Blancos 1,900 3,267 3,704 6,567 Mantoverde2 8,663 8,322 18,139 16,822
*Total cathodes* 10,563 11,589 21,843 23,389
Consolidated 40,937 39,287 83,058 79,987
Copper sales
Copper sold (tonnes) 39,748 40,755 80,744 78,211 Realized copperprice1 ($/pound) 4.53 3.71 4.18 3.93
C1 cash costs 1	($/pound) produced
*Sulphide business* Pinto Valley 2.46 2.98 2.50 3.03 Cozamin 1.74 1.63 1.83 1.67 Mantos Blancos 3.43 3.18 3.18 2.77
*Total sulphides* 2.58 2.72 2.57 2.66
*Cathode business* Mantos Blancos 3.15 3.08 3.32 3.22 Mantoverde 3.68 3.92 3.75 3.97
*Total cathodes* 3.58 3.68 3.67 3.76
Consolidated 2.84 3.01 2.87 2.99

2 Mantoverde production shown on a 100% basis.

Consolidated

Q2 2024 copper production of 40,937 tonnes was 4% higher than Q2 2023 primarily as a result of higher production at Pinto Valley.

Q2 2024 C1 cash costs[1] of $2.84/lb were 6% lower than $3.01/lb Q2 2023 mainly due to higher production (-$0.09/lb) and lower operational costs (-$0.14/lb).

2024 YTD consolidated production of 83,058 tonnes of copper was 4% higher than 79,987 tonnes in 2023 YTD, due to higher production at Pinto Valley on higher mill throughput and grades and at Mantoverde on higher heap grades and first concentrate production in June 2024, partially offset by lower production at Mantos Blancos. Cozamin production was consistent with the same period prior year.

2024 YTD C1 cash costs[1] of $2.87/lb were 4% lower than $2.99/lb 2023 YTD on higher copper production along with lower production costs due to favourable main consumables prices and cost-saving initiatives.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 7

Consolidated Financial Highlights
($ millions,exceptper share data)2	Q2 2024	Q2 2023	2024 YTD	2023 YTD
Revenue	393.1	333.9	733.0	669.5
Net income (loss)	27.5	(33.9)	21.7	(62.9)
Net income (loss) attributable to
shareholders	29.3	(36.5)	24.5	(56.5)
Net income (loss) attributable to shareholders
per common share - basic and diluted ($)	*0.04*	(0.05)	*0.03*	(0.08)
Operating cash flow before changes in
working capital	102.9	22.0	165.1	65.1
Adjusted EBITDA1	123.1	43.4	203.2	109.3
Adjusted net income (loss) attributable to
shareholders1	20.9	(12.2)	16.4	5.2
Adjusted net income (loss) attributable to
shareholders per common share - basic
and diluted1	*0.03*	(0.02)	*0.02*	0.01
Realized copper price1 ($/pound)	4.53	3.71	4.18	3.93
			June 30,	December
			2024	31, 2023
Net (debt) / cash1	(760.4)	(483.1)	(741.3)	(927.2)
Attributable net (debt) / cash1	(608.9)	(483.1)	(589.8)	(776.6)

2 Certain of prior period comparative figures have been reclassified to conform with the current year's presentation.

Mantoverde Development Project

Construction of all elements of the MVDP that were required to commence commissioning was completed by end of year 2023. The MVDP enables the Mantoverde mine to process 236 million tonnes of copper sulphide reserves over a 20-year expected mine life, in addition to existing oxide reserves. The MVDP involved the addition of a sulphide concentrator (nominal 32,000 ore tonnes per day ("tpd")) and tailings storage facility, and the expansion of the existing desalination plant and other minor infrastructure.

In 2024, Capstone has been focused on a safe, efficient and phased project commissioning and ramp-up. Key milestones during the commissioning and ramp-up include:

a. First ore to the primary crusher – completed in Q4 2023
b. First ore to the grinding circuit – completed in Q1 2024
c. First saleable concentrate – completed in Q2 2024 d. Achievement of nameplate operating rates – expected within Q3 2024

During Q2, steady progress was made commissioning the new concentrator and first saleable copper concentrate was produced in June, as previously announced.

So far in July, we have seen continued and steady progress as the Mantoverde operation ramps up to nameplate production levels. The focus is largely related to improving runtime, while also increasing throughput and recoveries. We have already seen daily throughputs above the nameplate capacity, and expect to reach sustained nameplate operating throughput rates, while exhibiting strong recoveries, within the third quarter.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 8

As of June 30, 2024, cash capital spent on the MVDP totalled $842 million, under the project capital estimate of $870 million.

A virtual tour of MVDP can be viewed at https://vrify.com/decks/12698-mantoverde-development-project

MV Optimized Feasibility Study and Phase II

The Company is currently preparing a technical report with respect to the next expansion of the sulphide concentrator and the optimization of the heap leach and solvent extraction facilities. Capstone has identified that the desalination plant capacity and major components of the comminution and flotation circuits of the MVDP can sustain an average annual throughput of approximately 45,000 ore tpd, while copper cathode production can be increased, and acid consumption decreased, through conversion of the dynamic heap leach facility to a bio-leach facility. Capstone is working with Ausenco and Global Resource Engineering Ltd on the MV Optimized Feasibility Study, including evaluating the costs and timelines of debottlenecking the minor components of the plant to meet the potential increased throughput target. The MV Optimized Feasibility Study is expected to be released during Q3 2024.

Given the above, the Mantoverde Phase II opportunity will evaluate the addition of an entire second processing line, possibly a duplication of the first line, to process some of the approximately 0.3 billion tonnes of Measured & Indicated and 0.6 billion tonnes of Inferred sulphide resources not in reserves.

Santo Domingo Feasibility Study & Sierra Norte Acquisition

On July 31 , 2024, Capstone announced the results of an updated feasibility study for its 100%-owned Santo Domingo copper-iron-gold project in Region III Chile, 35km northeast of Mantoverde. The updated feasibility study outlines the next phase of transformational growth for the Company in the world-class Mantoverde-Santo Domingo District.

The 2024 feasibility study for Santo Domingo outlines a robust copper-iron-gold project with an after-tax net present value at an 8% discount rate of $1.72 billion and an after-tax internal rate of return of 24.1%. Over the first seven years of the mine plan, production is expected to average 106,000 tonnes of copper and 3.7 million tonnes of iron ore magnetite at first quartile cash costs of $0.28 per payable pound of copper produced. Over the Santo Domingo 19-year mine life, production is expected to average 68,000 tonnes of copper and 3.6 million tonnes of iron ore magnetite at first quartile cash costs of $0.33 per payable pound of copper produced.

The 19-year Santo Domingo mine life is supported by an updated Mineral Reserve estimate of 436 million tonnes at a copper grade of 0.33%, iron ore grade of 26.5%, and a gold grade of 0.05 grams per tonne. Updated Measured and Indicated (“M&I”) Mineral Resources total 547 million tonnes at a copper grade of 0.31% and a gold grade of 0.04 grams per tonne, including 506 million tonnes with an iron grade of 25.8%.

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"). Sierra Norte is located approximately 15 kilometers northwest of the Santo Domingo Project and represents an opportunity to potentially be a future sulphide feed source for Santo Domingo, extending the higher grade copper sulphide life. Under the terms of the SPA, Capstone will pay the sellers $40 million in share consideration. Closing is expected within one-week.

For more details, please refer to the Santo Domingo Feasibility Study press release announced on July 3 1, 2024.

Mantoverde - Santo Domingo Cobalt Study

A district cobalt plant for Mantoverde - Santo Domingo may allow for low-cost by-product cobalt production while producing a by-product of sulphuric acid to be consumed internally to significantly lower operating costs in the cathode process at Mantoverde.

The cobalt recovery process comprises a pyrite flotation step to recover cobaltiferous pyrite from the MVDP and MSD tailings streams. The pyrite is then redirected to the dynamic heap leach pads which are upgraded to a bioleach configuration (as part of the MV-Optimized study). The pyrite bio-oxidizes in the leach pads and the

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 9

solubilized cobalt is recovered via an ion exchange plant that treats a bleed stream from the copper solvent extraction plant. The approach has been successfully demonstrated at the bench and pilot scale.

Engineering has commenced for a small plant treating only Mantoverde pyrite concentrates to produce up to 1,500 tonnes per annum ("tpa") of contained cobalt. In line with this, Santo Domingo has started a parallel study to assess, as part of the copper/iron circuit overall layout optimization being conducted by Ausenco, the optimum process configuration for the pyrite flotation and pumping transportation facilities needed to transport pyrite concentrate to Mantoverde's leach facilities. This information will be part of the MV-SD cobalt study expected by the end of 2024.

At a combined MV-SD target of 4.5 to 6.0 thousand tpa of mined cobalt production, this would be one of the largest and lowest cost cobalt producers in the world, outside of Indonesia and the DRC.

PV District Growth Study

The company continues to review and evaluate the consolidation potential of the Pinto Valley district. Opportunities under evaluation include a potential mill expansion and increased leaching capacity supported by optimized water, heap and dump leach, and tailings infrastructure. District consolidation could unlock significant ESG opportunities and may transform our approach to create value for all stakeholders in the Globe-Miami District.

Environmental, Social and Governance ("ESG") Highlights

Pinto Valley has signed the Copper Mark Letter of Commitment formalizing its participation in the Copper Mark assurance process.

The Company published its first Modern Slavery Report in May 2024.

Corporate Exploration Update

Cozamin: Exploration drilling recommenced Q2 2024 at Cozamin with a $2.3M (14,800 meter) program targeting step-outs up-dip and down-dip from the Mala Noche West Target and also down-dip of other historical Mala Noche Vein workings. Drilling is currently being conducted with one underground rig positioned at the level 19.1 cross-cut, with a second underground rig positioned at the level 12.7 cross-cut and one surface rig being added to the program in Q3 2024.

Copper Cities, Arizona : On January 20, 2022, Capstone Mining announced that it had entered into an access agreement with BHP Copper Inc. ("BHP") to conduct drill and metallurgical test-work at BHP's Copper Cities project ("Copper Cities"), located approximately 10 km east of the Pinto Valley mine. This access agreement was recently extended to July 2025. Drilling with two surface rigs twinning historical drill holes was completed in 2022 with metallurgical testing continuing in 2024. As explained in the PV District Growth Study section, district consolidation opportunities are being evaluated.

Mantoverde, Santo Domingo, and Mantos Blancos, Chile : Infill drilling was conducted during Q2 2024 in both Mantoverde and Mantos Blancos pits. Exploration drilling is expected to start at Mantos Blancos during Q3 2024 with a $1.4M program aiming to test Veronica oxide target and potential mineralized extension in Nora-Quinta area.

2.1 2024 Guidance

The Company reiterates its 2024 consolidated copper production and C1 cash costs[1] guidance of 190-220kt and $2.30 to $2.50 per payable pound, respectively. Capstone notes that production is trending toward the lower end of the guidance range, while cash costs are trending toward the upper end of the range, primarily due to a slower ramp-up to 20ktpd capacity at Mantos Blancos in addition to higher cathode costs.

In order to advance its copper growth strategy, the company has approved an additional $15 million in capital expenditures at Santo Domingo to continue to advance detailed engineering.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 10

3.0 OPERATIONAL REVIEW

3.1 Pinto Valley Mine – Miami, Arizona

Operating Statistics

3.1 Pinto Valley Mine – Miami, Arizona Operating Statistics
2024 Q1 Q2	Total	2023 Q1 Q2 Q3 Q4 Total
Production(contained)2 Copper in Concentrate (tonnes) 14,892 15,245 Cathode(tonnes) 780 749		12,246 11,878 12,968 15,286 52,378 595 813 657 647 2,712
	30,137
	1,529
Total Copper (tonnes) 15,672 15,994 Mining Waste (000s tonnes) 2,770 3,368 Ore(000s tonnes) 3,603 4,453	31,666	12,841 12,691 13,625 15,933 55,090 3,197 3,239 4,428 4,930 15,794 4,419 3,887 3,733 4,191 16,230
	6,138 8,056
Total (000s tonnes) 6,373 7,821 Strip Ratio (Waste:Ore) 0.77 0.76 Rehandled ore and stockpile (000s tonnes) 2,088 1,386	14,194	7,616 7,126 8,161 9,121 32,024 0.72 0.83 1.19 1.18 0.97 1,844 1,079 1,697 1,722 6,342
	0.76
	3,474
Total material moved (000s tonnes) 8,461 9,207 Processing Throughput (000s tonnes) 4,774 5,043 Tonnes per day 52,458 55,420 Grade (%)3 0.36 0.36 Recoveries (%)3 87.7 87.7 Payable copper produced (tonnes) 15,151 15,460 Copper C1 cash cost1($/pound payable copper produced) 2.53 2.46 Adjusted EBITDA1($ millions) 38.8 81.0	17,668	9,460 8,205 9,858 10,843 38,366 4,699 4,035 4,363 4,888 17,985 52,207 44,336 47,426 53,134 49,273 0.30 0.34 0.34 0.36 0.33 86.8 87.4 87.4 86.5 87.2 12,413 12,276 13,171 15,397 53,257 3.09 2.98 2.83 2.36 2.79 41.2 17.8 24.9 41.8 125.7

	9,817
	53,939 0.34 88.2 30,611 2.50 119.8

2 Adjustments based on final settlements will be made in future quarters

3 Grade and recoveries were estimated based on concentrate production and may be impacted by settlements from prior production periods.

2024 versus 2023 Insights

Copper production of 16.0 thousand tonnes in Q2 2024 was 27% higher than in Q2 2023 due to higher mill throughput during the quarter (Q2 2024 - 55,420 tpd versus Q2 2023 - 44,336 tpd), due to a reduction in mechanical downtime, and higher grades (Q2 2024 – 0.36% versus Q2 2023 - 0.34%) due to mining in the higher-grade Castle Dome area of the mine. Recoveries were consistent quarter over quarter.

2024 YTD production was 24% higher than 2023 YTD due to higher mill throughput (53,939 2024 YTD versus 48,249 2023 YTD), higher feed grade (0.34% in 2024 YTD versus 0.32% in 2023 YTD) and higher recoveries (88.2% 2024 YTD versus 87.1% 2023 YTD).

C1 cash costs[1] of $2.46/lb in Q2 2024 were 17% lower than Q2 2023 of $2.98/lb primarily due to higher production volume (-$0.57/lb) and capitalized stripping (-$0.13/lb), partially offset by increases in operating costs driven by higher production, related to contractor spend, electricity cost, ball mill liner cost, explosive cost and mechanical parts, stockpile drawdown and higher treatment costs.

2024 YTD C1 cash costs[1] of $2.50/lb were 17% lower compared to the same period last year of $3.03/lb primarily due to higher production volume (-$0.57/lb) along with insurance costs, partially offset by increased mining costs due to spend on equipment maintenance, contractors and inflationary increases for electricity cost ($0.074/kWh in 2024 versus $0.065/kWh in 2023). Although processing costs per pound were slightly higher, favorable pricing contracts on grinding media and diesel were executed in 2024 ($3.31/gal in 2024 versus $3.70/gal in 2023).

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 11

Capital Expenditures

Sustaining capital[1] in Q2 2024 of $11.5 million was spent primarily on investing in infrastructure upgrades that will increase water reclaim, the tailings buttress project, electrical infrastructure and mining equipment component replacements. Capitalized stripping increased in Q2 2024, compared to the same period last year due to higher levels of waste removal from the northwest section of phase 3 as a result of increased truck availability.

($ millions)	Q2 2024	Q2 2023	2024 YTD	2023 YTD
Capitalized stripping	9.5	2.6	17.9	3.1
Sustaining capital1	11.5	18.0	17.3	27.3
Expansionary capital1	2.4	1.0	3.0	1.6
Right-of-use assets(non-cash)	—	9.2	—	9.2
Pinto Valleymine additions	23.4	30.8	38.2	41.2

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 12

3.2 Mantos Blancos – Antofagasta, Chile Operating Statistics

3.2 Mantos Blancos – Antofagasta, Chile Operating Statistics
2024 Q1 Q2	Total	2023 Q1 Q2 Q3 Q4 Total
Production(contained metal and cathode)2 Copper in Concentrate (tonnes) 9,163 8,170 Cathode(tonnes) 1,804 1,900		10,847 8,358 9,133 9,664 38,002 3,275 3,292 3,030 1,923 11,520
	17,333 3,704
Total Copper (tonnes) 10,967 10,070 Mining Waste (000s tonnes) 13,203 14,042 Ore(000s tonnes) 3,413 3,185	21,037 27,245 6,598	14,122 11,650 12,163 11,587 49,522 12,906 13,545 13,945 14,876 55,272 7,443 6,374 4,674 3,383 21,874
Total (000s tonnes) 16,616 17,227 Strip Ratio (Waste:Ore) 3.87 4.41 Rehandled ore and stockpile (000s tonnes) 1,603 1,662	33,843 4.13 3,265	20,349 19,919 18,619 18,259 77,146 1.73 2.13 2.98 4.40 2.53 1,758 1,674 1,702 1,356 6,490
Total material moved (000s tonnes) 18,219 18,889 Mill operations Throughput (000s tonnes) 1,293 1,476 Tonnes per day 14,214 16,219 Grade (%)3 0.87 0.76 Recoveries (%)3 81.2 73.2 Dump operations Throughput (000s tonnes) 1,721 1,896 Grade (%)3 0.17 0.16 Silver Production contained (000s ounces) 201 189 Payable copper produced (tonnes) 10,655 9,791 Sulphides C1 cash cost1($/pound payable copper produced) 2.98 3.43 Cathode C1 cash cost1($/pound payable copper produced) 3.43 3.15 Combined C1 cash cost1($/pound payable copper produced) 3.05 3.38 Adjusted EBITDA1($ millions) 20.5 21.1	37,108	22,107 21,593 20,321 19,615 83,636 1,442 1,325 1,304 1,271 5,342 16,023 14,555 14,176 13,814 14,635 0.94 0.85 0.92 0.92 0.91 80.2 73.9 76.3 82.9 78.4 2,635 2,946 2,038 1,542 9,161 0.18 0.16 0.16 0.17 0.17 365 245 245 251 1,106 13,753 11,365 11,852 11,258 48,228 2.46 3.18 2.85 2.58 2.74 3.36 3.08 2.75 3.32 3.11 2.68 3.15 2.82 2.71 2.83 37.4 12.0 22.5 26.9 98.8
	2,769
	15,216 0.81 77.2
	3,617
	0.16
	390
	20,446 3.18 3.32 3.21 41.6

2 Adjustments based on final settlements will be made in future quarters

3 Grade and recoveries were estimated based on concentrate production and may be impacted by settlements from prior production periods

2024 versus 2023 Insights

Q2 2024 production was 10.1 thousand tonnes, composed of 8.2 thousand tonnes from sulphide operations and 1.9 thousand tonnes of cathode from oxide operations, which was 14% lower than the 11.7 thousand tonnes produced in Q2 2023. Sulphide production declined in Q2 2024 despite record throughput, due to lower grades and lower recoveries as a result of a short-term localized geotechnical issue that impacted mine sequencing. Lower production was also impacted by lower dump throughput in line with the 2024 plan.

The activities for the sulphide operations to reach 20ktpd on a sustainable basis are progressing despite an approximate two-month delay relative to our prior plan due to longer equipment lead times. As a result, in June, daily ore throughput averaged 17ktpd and the variability of the milling process has been significantly reduced. During Q3 2024, the installation and commissioning of a new holding tank and additional pumps in the tailings

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 13

area, as well as other infrastructure improvements, will further enhance the throughput levels at the concentrator plant and is expected to allow the achievement of the 20ktpd capacity consistently.

2024 YTD production of 21.0 thousand tonnes, composed of 17.3 thousand tonnes from sulphide operations and 3.7 thousand tonnes of cathodes from oxide operations, was 18% lower than 2023 YTD, mainly explained by 44% lower cathode production due to lower dump throughput in line with the 2024 plan, and to a lesser extent by lower sulphides feed grades as a result of mine sequence (0.81% in 2024 YTD versus 0.90% in 2023 YTD).

Combined Q2 2024 C1 cash costs[1 ] were $3.38/lb ($3.43/lb sulphides and $3.15/lb cathodes) were 7% higher compared to combined C1 cash costs[1] of $3.15/lb in Q2 2023, mainly due to lower production ($0.51/lb), partially offset by a decrease in mine movement (-$0.17/lb) and lower acid consumption driven by the lower dump throughput (-$0.15/lb).

Combined 2024 YTD C1 cash costs[1] of $3.21/lb ($3.18/lb sulphides and $3.32/lb cathodes) were 11% higher compared to $2.89/lb in 2023 YTD mainly due to lower production ($0.60/lb), partially offset by lower acid and energy consumption due to lower production (-$0.15/lb) and lower mine movements (-$0.13/lb).

Capital Expenditures

Sustaining capital[1] in Q2 2024 of $13.5 million was spent primarily on mining equipment component replacements, an environmental compliance program, and the 20ktpd plan. Capitalized stripping in Q2 2024 was $17.8 million, 12% higher compared to the same period last year, consistent with the mine plan. Non-cash rightof-use assets of $29.0 million represents leases for mobile mining equipment that commenced during the quarter.

Capitalized exploration expenditures totaled $0.6 million for Q2 2024. This was primarily spent on infill drilling at the "Phase 16" pit.

($ millions)	Q2 2024	Q2 2023	2024 YTD	2023 YTD
Capitalized stripping	17.8	15.9	35.1	34.5
Sustaining capital1	13.5	4.1	21.3	7.5
Brownfield exploration	0.6	—	1.4	—
Right-of-use assets(non-cash)	29.0	—	29.0	1.2
Mantos Blancos mine additions	60.9	20.0	86.8	43.2

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 14

3.3 Mantoverde (70% ownership) – Atacama, Chile Operating Statistics

Operating Statistics
2024 Q1 Q2	Total	2023 Q1 Q2 Q3 Q4 Total
Production(contained)2, 3 Copper in Concentrate (tonnes) — 58 Cathode(tonnes) 9,476 8,663		— — — — — 8,532 8,290 8,560 10,019 35,401
	58
	18,139
Total Copper (tonnes) 9,476 8,721 Mining Waste (000s tonnes) 14,805 16,664 Ore(000s tonnes) 7,052 7,096	18,197	8,532 8,290 8,560 10,019 35,401 19,480 21,153 24,170 18,171 82,974 5,534 5,769 6,438 7,652 25,393

	31,469 14,148
Total (000s tonnes) 21,857 23,760 Strip Ratio (Waste:Ore) 2.10 2.35 Rehandled Ore(000s tonnes) 3,529 2,923	45,617	25,014 26,922 30,608 25,823 108,367 3.52 3.67 3.75 2.37 3.27 4,926 5,604 4,386 3,073 17,989
	2.22
	6,452
Total material moved (000s tonnes) 25,386 26,683 Heap operations Throughput (000s tonnes) 2,785 2,326 Grade (%) 0.36 0.39 Recoveries (%) 74.9 71.7 Dump operations Throughput (000s tonnes) 3,828 3,772 Grade (%) 0.15 0.15 Recoveries (%) 32.6 39.8 Payable copper produced (tonnes) 9,476 8,663 Copper C1 cash cost1($/pound payable copper produced) 3.82 3.68 Adjusted EBITDA1($ millions) 2.6 10.9	52,069	29,940 32,526 34,994 28,896 126,356 2,754 2,657 2,684 2,831 10,926 0.31 0.31 0.32 0.41 0.34 69.0 73.4 66.5 64.6 68.0 3,895 3,707 2,756 4,277 14,635 0.17 0.17 0.17 0.16 0.17 39.9 37.4 59.4 37.7 42.4 8,532 8,290 8,560 10,019 35,401 4.02 3.92 3.74 3.68 3.83 (4.0) (11.8) 1.2 (4.1) (18.7)

	5,111
	0.37
	73.2

	7,600
	0.15
	36.1
	18,139 3.75 13.5

2 Adjustments based on final settlements will be made in future quarters 3 Production shown on a 100% basis

2024 versus 2023 Insights

Q2 2024 copper production of 8.7 thousand tonnes was 4% higher compared to 8.3 thousand tonnes in Q2 2023. Higher grades processed at the heap operations, related to mining sequence, were partially offset by lower heap recoveries (71.7% in Q2 2024 versus 73.4% in Q2 2023). Moreover, the new concentrator (MVDP) produced its first copper concentrate in June 2024.

2024 YTD production of 18.2 thousand tonnes was 8% higher than 2023 YTD due to higher heap grades as a result of mine sequence (0.37% in 2024 YTD versus 0.31% in 2023 YTD). Dump throughput in 2024 YTD was consistent with the same period last year.

Q2 2024 C1 cash costs[1] were $3.68/lb, 6% lower than $3.92/lb in Q2 2023 due to higher production (-$0.19/lb), lower energy prices (-$0.35/lb) and lower acid consumption (-$0.23/lb), partially offset by an increase in contracted services, spare parts spend and labour cost mainly driven by higher mine movement ($0.50/lb). Energy prices averaged $0.09/kWh in Q2 2024 versus $0.22/kWh in Q2 2023.

2024 YTD C1 cash costs[1] were $3.75/lb, 6% lower than $3.97/lb in 2023 YTD, mainly related to lower main consumable prices (-$0.48/lb), higher production (-$0.30/lb), lower acid consumption (-$0.09/lb), which was partially offset by an increase in contracted services, spare parts spend and labour cost mainly driven by higher mine movement ($0.61/lb).

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 15

Capital Expenditures

Sustaining capital[1] in Q2 2024 of $8.3 million was spent primarily to enable a new leaching area (fourth level) and mining equipment component replacements. Expansionary capital[1] in Q2 2024 of $19.3 million related to MVDP. Non-cash right-of-use assets of $22.4 million represents leases for mobile mining equipment that commenced during the quarter.

Capitalized exploration expenditures totaled $2.1 million for Q2 2024. This was primarily spent on infill drilling at the Franco and Mantoverde pits.

($ millions)	Q2 2024	Q2 2023	2024 YTD	2023 YTD
Capitalized stripping	24.5	32.2	44.7	59.9
Sustaining capital1	8.3	10.5	13.8	15.5
Expansionary capital1	19.3	62.5	39.1	171.7
Capitalized interest and other on construction in progress	24.1	17.0	47.1	30.0
Brownfield exploration	2.1	—	3.4	—
Right-of-use assets(non-cash)	22.4	7.9	69.0	15.1
Mantoverde mine additions	100.7	130.1	217.1	292.2

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 16

3.4 Cozamin Mine – Zacatecas, Mexico Operating Statistics

3.4 Cozamin Mine – Zacatecas, Mexico Operating Statistics
2024 Q1 Q2	Total	2023 Q1 Q2 Q3 Q4 Total
Production(contained)2 Copper (tonnes) 6,006 6,152 Silver (000s ounces) 346 355 Mining Ore (000s tonnes) 306 325 Processing Milled (000s tonnes) 314 323 Tonnes per day 3,447 3,551 Copper Grade (%)3 1.98 1.97 Recoveries (%) 96.9 96.7 Silver Grade (g/t)3 40.6 40.6 Recoveries (%) 82.4 82.5 Payable copper produced (tonnes) 5,773 5,913 Copper C1 cash cost1($/pound payable copper produced) 1.93 1.74 Adjusted EBITDA1($ millions) 26.2 38.6		5,239 6,622 5,915 6,564 24,340 282 367 330 370 1,349 306 347 347 338 1,338 307 345 328 348 1,328 3,410 3,792 3,567 3,786 3,639 1.77 1.98 1.86 1.95 1.89 96.6 96.9 96.8 96.8 96.8 35.1 40.1 37.7 39.9 38.3 81.3 82.5 82.4 82.6 82.3 5,033 6,361 5,680 6,309 23,383 1.72 1.63 1.85 1.76 1.74 30.9 34.0 24.9 30.3 120.1
	12,158
	701
	631

	637
	3,499 1.97 96.8 41.4 82.6
	11,686
	1.83 64.8

2 Adjustments based on final settlements will be made in the future quarters.

3 Grade and recoveries were estimated based on concentrate production and may be impacted by settlements from prior production periods.

2024 versus 2023 Insights

Q2 2024 copper production of 6.2 thousand tonnes was 7% lower than the same period prior year, mainly on lower mill throughput (3,551 tpd in Q2 2024 versus 3,792 tpd in Q2 2023) driven by mine sequence. Grades and recoveries were consistent quarter over quarter.

2024 YTD production was 3% higher than 2023 YTD due to higher grades (1.97% in 2024 YTD versus 1.88% in 2023 YTD), consistent with the mine plan, which was partially offset by lower mill throughput (3,499 tpd in 2024 YTD versus 3,602 tpd in 2023 YTD). Recoveries were consistent with the same period last year.

Q2 2024 C1 cash costs[1] were $1.74/lb, 7% higher than $1.63/lb in the same period last year, mainly due to lower Cu production in Q2 2024 than last year (7%), in addition to an increase in paste back fill plant expenses from the previous year in manpower and contractors for full operations ($0.18/lb), partially offset by higher by-product credits due to higher silver prices (-$0.07/lb).

2024 YTD C1 cash costs[1] were 10% higher than the same period last year primarily due to higher costs in manpower for hourly employees bonus profit sharing increase and the change in mining method which resulted in an increase in contractor utilization ($0.22/lb), partially offset by more pounds payable produced and higher byproduct silver prices and volume.

Capital Expenditures

Sustaining capital[1] spending at Cozamin of $5.8 million for Q2 2024, mainly related to mine development and mine equipment.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 17

Capitalized exploration expenditures totaled $0.2 million for Q2 2024. This was primarily spent on the start-up of step-out drilling at the Mala Noche Main Vein West Target.

($ millions)	Q2 2024	Q2 2023	2024 YTD	2023 YTD
Sustaining capital1	5.8	7.6	12.1	14.4
Expansionary capital1	—	7.2	—	9.6
Brownfield exploration	0.2	0.6	0.4	0.9
Right-of-use assets(non-cash)	—	—	0.1	0.2
Cozamin mine additions	6.0	15.4	12.6	25.1

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 18

3.5 Santo Domingo Project – Chile (Copper and Iron)

Capital Expenditures

On July 3 1, 2024, Capstone announced the results of an updated feasibility study for its 100%-owned Santo Domingo copper-iron-gold project in Region III Chile, 35km northeast of Mantoverde. The updated feasibility study outlines the next phase of transformational growth for the Company in the world-class Mantoverde-Santo Domingo District.

For more details, please refer to the Santo Domingo Feasibility Study press release announced on July 3 1, 2024.

($ millions)	Q2 2024	Q2 2023	2024 YTD	2023 YTD
Capitalizedproject costs	2.9	4.9	8.0	8.8
3.6 Exploration
($ millions)	Q2 2024	Q2 2023	2024 YTD	2023 YTD
Greenfield exploration (expensed to income statement)	0.2	1.6	0.5	2.8
Brownfield exploration (capitalized to mineral
properties):
Mantos Blancos	0.6	—	1.4	—
Mantoverde	2.1	—	3.4	—
Cozamin	0.2	0.6	0.4	0.9
Total exploration	3.1	2.2	5.7	3.7

Capstone Copper’s exploration team is predominantly focused on organic growth opportunities to expand mineral resources and mineral reserves at all four mines and the Santo Domingo development project. Capstone also has a portfolio of 100% owned claims acquired by staking in Sonora, Mexico and in Northern Chile.

At Mantoverde and Mantos Blancos during Q2 2024, exploration activities focused primarily on infill drilling at Mantos Blancos and Mantoverde pits.

Exploration drilling is expected to start at Mantos Blancos during Q3, 2024 with a $1.3 million (6,000 meters) program aiming to test Veronica oxide target and potential mineralized extension in Nora-Quinta area.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 19

At Cozamin during Q2 2024, exploration drilling recommenced with a $2.3 million (14,800 meters) program targeting step-outs up-dip and down-dip from the Mala Noche West Target and also down-dip of other historical Mala Noche Vein workings.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 20

4.0 FINANCIAL REVIEW

4.1 Consolidated Results

Consolidated Net Income (Loss) Analysis

Net Income (Loss) for the Three Months Ended June 30, 2024 and 2023

The Company recorded net income of $27.5 million for the three months ended June 30, 2024, compared with net loss of $33.9 million in Q2 2023. The major differences are outlined below:

==> picture [503 x 286] intentionally omitted <==

----- Start of picture text -----

$27.7
50 $13.3
$61.2
$27.5
25 $59.2 $(19.3) $(2.2) $(4.1)
$(18.8)
0
(25)
$(55.6)
$(33.9)
(50)
Net Loss Revenue Production Depletion Share- Loss on Minto Foreign Other Taxes Net
Q2 2023 and and based derivatives obligation exchange Income
Royalty amortization comp Q2 2024
costs
$M
----- End of picture text -----

The difference quarter-over-quarter was driven by:

Revenue: $59.2 million or 18% increase, driven by higher realized copper prices[1] (Q2 2024 - $4.53 per pound, Q2 2023 - $3.71 per pound) on slightly lower copper volumes sold (Q2 2024 – 39.7 thousand tonnes, Q2 2023 – 40.8 thousand tonnes) and higher production (Q2 2024 – 40.9 million tonnes, Q2 2023 – 39.3 million tonnes).
Production and Royalty costs: $27.7 million decrease primarily driven by:
Pinto Valley recorded $6.1 million higher production costs in Q2 2024, compared to Q2 2023 as a result of higher contractor spending and mechanical parts costs, and higher copper volumes sold (Q2 2024 – 16.0 thousand tonnes, Q2 2023 – 12.1 thousand tonnes).
Cozamin recorded $0.1 million lower production costs in Q2 2024, compared to Q2 2023 as a result of lower copper volumes sold (Q2 2024 – 5.7 thousand tonnes, Q2 2023 – 6.5 thousand tonnes).
Mantos Blancos recorded $12.8 million lower production costs in Q2 2024, compared to Q2 2023 due to lower copper volumes sold (Q2 2024 – 9.5 thousand tonnes, Q2 2023 – 8.4 thousand tonnes) and lower production.
Mantoverde recorded $23.0 million lower production costs in Q2 2024, compared to Q2 2023 as a result of lower copper volumes sold (Q2 2024 – 8.5 thousand tonnes, Q2 2023 – 10.3 thousand tonnes), and lower key consumable prices.
Depletion and amortization: $19.3 million increase primarily due to an increase in depreciable capital assets.
Share-based compensation expense: $2.2 million increase quarter-over-quarter as a result of mark-tomarket adjustments on share unit liabilities reflecting the increase in the share price during Q2 2024 vs. Q2 2023 (C$8.62 opening price as at March 31, 2024 to C$9.70 closing price as at June 30, 2024 vs. C$6.10 opening price as at March 31, 2023 to C$6.01 closing price as at June 30, 2023).

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 21

Loss on derivatives: $55.6 million increase primarily due to a net loss vs. a net gain on copper commodity contracts (Q2 2024 – $10.6 million loss, Q2 2023 – $42.3 million gain). Copper forward curve prices increased from $4.02/lb as at March 31, 2024 to $4.35/lb as at June 30, 2024, compared with a decrease from $3.80/lb at March 31, 2023 to $3.77/lb at June 30, 2023. In addition, all copper commodity swaps have been fully settled in Q2 2024.
Minto obligation: $61.2 million decrease as a result of a recovery on the surety bond trust account of $7.3 million in Q2 2024 vs. recognition of the Minto obligation expense of $53.9 million in Q2 2023.
Net other income: $13.3 million decrease primarily due to the expensing of the union bonus at Mantos Blancos and the write-off of the $5 million receivable from Minto during Q2 2023, which were not present in Q2 2024.
Income taxes expense: $18.8 million increase as a result of the above changes.

Net Income (Loss) for the Six Months Ended June 30, 2024 and 2023

The Company recorded a net income of $21.7 million for the six months ended June 30, 2024, compared with net loss of $62.9 million in 2023 YTD. The major differences are outlined below:

==> picture [525 x 283] intentionally omitted <==

----- Start of picture text -----

30
$21.7
$17.4
15
$63.5
0 $11.7
$17.9
(15) $2.7
$(39.6)
(30)
$(14.5)
(45) $(35.7)
(60)
$(62.9)
(75)
Net Loss Revenue Production Depletion Share- Loss on Foreign Other Taxes Net Income
2023 and Royalty and based comp derivatives exchange 2024
costs amortization
$M
----- End of picture text -----

The difference year-over-year was driven by:

Revenue: $63.5 million or 9% of the increase was driven by higher copper volumes sold (2024 YTD – 80.7 thousand tonnes, 2023 YTD – 78.2 thousand tonnes), and by higher realized copper prices[1] (2024 YTD - $4.18 per pound, 2023 YTD - $3.93 per pound).
Production and Royalty costs: $17.4 million decrease primarily driven by:
Pinto Valley recorded $0.4 million lower production costs in 2024 YTD compared to 2023 YTD as a result of lower costs from favourable pricing contracts, and partially offset by higher copper volumes sold (2024 YTD – 30.7 thousand tonnes, 2023 YTD – 24.9 thousand tonnes).
Cozamin recorded $6.5 million higher production costs in 2024 YTD compared to 2023 YTD as a result of the change in mining method, and higher copper volumes sold (2024 YTD – 11.4 thousand tonnes, 2023 YTD – 11.3 thousand tonnes).
Mantos Blancos recorded $21.3 million lower production costs in 2024 YTD compared to 2023 YTD as a result of lower copper volumes sold (2024 YTD – 20.3 thousand tonnes, 2023 YTD – 24.9 thousand tonnes) and lower key consumable prices.
Mantoverde recorded $5.9 million lower production costs in 2024 YTD compared to 2023 YTD primarily as a result of lower key consumable prices, and partially offset by higher copper volumes sold (2024 YTD - 18.2 thousand tonnes vs. 2023 YTD - 17.1 thousand tonnes).

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 22

Depletion and amortization: $39.6 million increase primarily due to higher copper volumes sold and an increased depreciation base.
Share-based compensation: $2.7 million decrease primarily due to lower number of stock options and share units outstanding at June 30, 2024 versus at June 30, 2023.
Loss on derivatives: $14.5 million increase primarily due to the change in copper commodity contracts (2024 YTD – $13.2 million loss, 2023 YTD – $3.4 million loss). Copper forward curve prices increased from $3.88/lb as at December 31, 2023 to $4.35/lb as at June 30, 2024, vs. an increase from $3.74/lb at December 31, 2022 to $3.77/lb at June 30, 2023. In addition, all copper commodity swaps have been fully settled in Q2 2024.
Foreign exchange: $17.9 million change primarily due to foreign exchange impacts from Mantos Blancos and Mantoverde as a result of a weaker Chilean Peso in 2024 YTD vs. a stronger Chilean Peso in 2023 YTD, and partially offset by the impacts of the strengthening Mexican Peso at Cozamin.
Net other income: $11.7 million decrease primarily due to the immediate expensing of a portion of Mantos Blancos union bargaining bonus of $8.9 million, and the bad debt provision for the $5 million uncollectible amount from Minto related to the sale in 2019 during 2023 YTD, which were not present in 2024 YTD, and due to lower interest expense incurred on lower net debt balances in 2024 YTD.
Income taxes expense: $35.7 million increase due to a net income in 2024 YTD compared to a net loss in 2023 YTD.

4.2 Revenue Analysis

Revenue increased quarter-on-quarter ($393.1 million versus $333.9 million in Q2 2023) primarily due to a higher realized copper price[1] ($4.53 per pound versus $3.71 per pound in Q2 2023), and partially offset by lower copper volumes sold (39.7 thousand tonnes versus 40.8 thousand tonnes in Q2 2023).

YTD revenue increased year-on-year ($733.0 million versus $669.5 million in 2023 YTD) due to higher copper volumes sold (80.7 thousand tonnes versus 78.2 thousand tonnes in 2023 YTD), and a higher realized copper price[1] ($4.18 per pound versus $3.93 per pound in 2023 YTD).

Revenue by Mine

Revenue by Mine
($ millions)	Q2 20242		Q2 20232		2024	YTD2	2023	YTD2
Pinto Valley	160.3	40.8 %	88.1	26.4 %	279.1	38.1 %	212.2	31.7 %
Mantos Blancos	93.1	23.7 %	94.7	28.4 %	181.2	24.7 %	210.8	31.5 %
Mantoverde	84.8	21.6 %	83.3	24.9 %	167.5	22.9 %	144.3	21.6 %
Cozamin	63.9	16.3 %	58.7	17.6 %	116.8	15.9 %	109.3	16.3 %
Corporate3	(9.0)	(2.4) %	9.1	2.7 %	(11.6)	(1.6) %	(7.1)	(1.1)%
Total revenue	393.1	100.0 %	333.9	100.0 %	733.0	100.0 %	669.5	100.0 %

2 The current and subsequent periods may include final settlement quantity and/or price adjustments from prior shipments. 3 The Corporate revenue is related to the net changes on quotational period hedges.

Provisionally Priced Copper

Gross revenue for the three months ended June 30, 2024 includes 37.8 thousand tonnes of copper sold subject to final settlement. Of this, the prices for 12.8 thousand tonnes are final at a weighted average price of $4.41 per pound. The remaining 25.0 thousand tonnes are subject to price change upon final settlement at the end of the applicable quotational period, as follows:

Quotational Period	($/pound)
	Pinto Valley Mantos Blancos Mantoverde Cozamin Total Provisional Price
Jul-2024 Aug-2024 Oct-2024 Not yet declared by customer	7.9 3.0 2.9 1.9 15.7 4.32 2.5 0.7 — — 3.2 4.34 5.2 — — — 5.2 4.37 0.9 — — — 0.9 4.32
Total	16.5 3.7 2.9 1.9 25.0 4.33

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 23

Provisional pricing is a term in copper concentrate and copper cathode sales agreements that provides for provisional pricing of sales at the time of shipment, with final pricing being based on the monthly average LME copper price for specific future periods, normally ranging from one to four months after delivery to the customer. The difference between provisional invoice price and final invoice price is recognized in net earnings.

Of the 25.0 thousand tonnes subject to price change upon final settlement, 5.7 thousand tonnes have been hedged as at June 30, 2024, and 5.8 thousand tonnes of June sales were hedged in July 2024. The remaining 13.5 thousand tonnes are not hedged as these volumes have a declared quotational period of July 2024, which the QP hedging program is designed to achieve average LME price of the month after month of shipment.

Reconciliation of Realized Copper Price[1]

Realized price per pound is a non-GAAP ratio that is calculated using the non-GAAP measures of revenue on new shipments, revenue on prior shipments, and pricing and volume adjustments. Realized prices exclude the effects of the stream cash effects as well as TC/RCs. Management believes that measuring these prices enables investors to better understand performance based on the realized copper sales in the current and prior period.

($ millions,except as noted)	Q2 2024 Q2 2023 2024 YTD 2023 YTD
Gross copper revenue
Gross copper revenue on new shipments	392.6 341.1 739.5 672.6
Realized pricing and volume adjustments on copper revenue	5.0 (4.2) 6.3 5.0
Unrealized pricing and volume adjustments on copper revenue	(1.0) (3.8) (2.1) 0.1
Gross copper revenue including pricing and volume adjustments	396.6 333.1 743.7 677.7
Gross copper revenue on new shipments ($/pound)
	4.48 3.80 4.15 3.90
Realized pricing and volume adjustments on copper revenue ($/pound)	0.06 (0.04) 0.04 0.03 (0.01) (0.05) (0.01) —
Unrealized pricing and volume adjustments on copper revenue ($/pound) Realized copper price1 ($/pound)
	4.53 3.71 4.18 3.93 4.42 3.84 4.13 3.95 4.30 3.72 4.30 3.72
LME average copper price ($)
LME closeprice($)

Gross copper revenue - reconciliation to financials
Gross copper revenue including pricing and volume adjustments Revenue from other metals Treatment and selling Revenue per financials	396.6 333.1 743.7 677.8
	13.3 13.1 22.7 24.8
	(16.8) (12.3) (33.5) (33.0)
	393.1 333.9 733.0 669.6

Payable copper sold (tonnes)	39,748 40,755 80,744 78,211

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 24

4.3 Consolidated Cash Flow Analysi s
($ millions)	Q2 2024	Q2 2023	2024 YTD	2023 YTD
Operating cash flow before changes in working
capital	102.9	22.0	165.1	65.1
Changes in non-cash working capital	(5.1)	(13.6)	(19.9)	(55.8)
Other non-cash changes	1.0	(10.6)	0.1	(9.7)
Total cash flow from (used in) operating
activities	98.8	(2.2)	145.3	(0.4)
Total cash flow used in investing activities	(137.8)	(152.0)	(254.8)	(336.8)
Total cash flow from financing activities	46.0	170.8	123.0	283.0
Effect of foreign exchange rates on cash and cash equivalents	(0.2)	—	(1.6)	—
Net change in cash and cash equivalents	6.8	16.6	11.9	(54.2)
Openingcash and cash equivalents	131.1	99.5	126.0	170.3
Closing cash and cash equivalents	137.9	116.1	137.9	116.1
			June 30,	December
			2024	31, 2023
Total assets	5,642.4	5,380.9	6,124.8	5,873.9
Total non-current financial liabilities	993.9	709.5	984.9	1,205.3

Changes in Cash Flows for the Three Months Ended June 30, 2024 and 2023

The net change in cash was $6.8 million in Q2 2024, compared to $16.6 million in Q2 2023. The change was primarily due to:

Cash flow from operating activities before changes in working capital was higher by $80.9 million mainly due on higher operational margin: revenue less production costs were higher in Q2 2024 versus Q2 2023 by $88.9 million (Q2 2024 revenue of $393.1 million less production costs of $244.3 million compared to Q2 2023 revenue of $333.9 million less production costs of $274.0 million) which was partially offset by higher realized loss on derivative settlements.
Changes in non-cash working capital in Q2 2024 were $8.5 million higher than in Q2 2023 mainly on an increase in accounts payable and accrued liabilities.
Cash flow used in investing activities of $137.8 million in Q2 2024 relates to MVDP and other capital project spend.
Cash flow from financing activities of $46.0 million in Q2 2024 relates to $53 million from net bank borrowings and $12 million from related party borrowings, partially offset by $14.4 million lease payments and payments on derivative settlements of $5.5 million.

Changes in Cash Flows for the Six Months Ended June 30, 2024 and 2023

The net change in cash was $11.9 million in 2024 YTD compared to $(54.2) million in 2023 YTD. The change was primarily due to:

Operating cash flow before changes in working capital was higher by $100.0 million. Revenue less production costs were higher in 2024 YTD versus 2023 YTD by $84.6 million (2024 YTD revenue of $733.0 million less production costs of $493.3 million compared to 2023 YTD revenue of $669.5 million less production costs of $514.4 million). Moreover, taxes paid were $7.7 million lower, higher realized gain on foreign exchange rates and lower greenfield exploration expenses.
Changes in non-cash working capital was higher by $35.9 million primarily due to an increase in accounts payable and accrued liabilities.
Cash flow used in investing activities of $254.8 million primarily relates to MVDP and other capital project spend, partially offset by proceeds from asset disposal.
Cash flow from financing activities of $123.0 million relates to net proceeds from the Q1 2024 share issuance of $253 million and from related party borrowing of $33 million, partially offset by net Revolving Credit Facility ("RCF") net repayment of $174 million, lease payments of $26.7 million, interest on debt and surety bond paid of $5.1 million and payment on derivative settlements of $5.1 million.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 25

4.4 Liquidity and Financial Position

2024 YTD Change in Net (debt)

==> picture [477 x 238] intentionally omitted <==

----- Start of picture text -----

$253
(700)
$165
$(34) $(741)
(800) $(19)
(900) $(98)
$(927) $33
$(67) $45
(1,000)
$(51)
$(41)
(1,100)
December Operating WC Capitalized Sustaining Expansionary Fin costs WC MMC Share Leases June 30,
31, 2023 cash flow change stripping capital capital capitalized facility related issuance and other 2024
before to MVDP party loan
WC
$M
----- End of picture text -----

Our available liquidity[1] as at June 30, 2024 was $538.7 million, which included $138.7 million of cash and cash equivalents and short-term investments, and $400 million of undrawn amounts on our $700 million RCF.

The decrease in Net (debt)1 as at June 30, 2024, compared to December 31, 2023, is primarily attributable to the net proceeds from share issuance and strong operating cash flow from a higher realized copper price, partially offset by capital spend on the MVDP and other capital projects including capitalized stripping.

Credit Facilities

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). 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.

Mantoverde Cost Overrun Facility ("COF")

MMC agreed to provide a $60 million COF in exchange for additional offtake of copper concentrate production under a 10-year contract. The COF initially carried an interest rate of 3-month US$ 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.

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.

Working Capital Facilities

During Q2 2023, two of the Company's Chilean subsidiaries entered into a series of short-term export credit facilities with a weigthed 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.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 26

The working capital Facilities are included in Current - Other Liabilities on the consolidated statement of financial position.

As at June 30, 2024, Capstone Copper was in a net (debt)[1] position of $741.3 million with $820.0 million longterm debt drawn in total, and $60.0 million drawn on the COF with MMC, which is presented in Due to Related Party on the consolidated balance sheet. As at June 30, 2024, the $820.0 million of long-term debt consists of $520.0 million drawn on the MVDP facility and $300.0 million drawn on the RCF. The current portion of the MVDP facility is $68.2 million.

Hedging

The Company has hedging programs for copper commodity, foreign exchange rates, interest rates, and provisionally priced sales contracts. Below is a summary of the fair values of unsettled derivative financial instruments for the Company's hedging contracts recorded on the consolidated statement of financial position. As at June 30, 2024, the Company held no derivatives designated as hedged instruments.

		June 30, 2024	December	31,2023
Derivative financial assets:
Foreign currency contracts	$	144	$	2,139
Quotational pricing contracts		716		—
Interest rate swapcontracts		29,407		33,410
Total derivative financial assets	$	30,267	$	35,549
Derivative financial liabilities:
Foreign currency contracts		1,773		1,503
Copper commodity contracts		—		13,484
Quotationalpricingcontracts		—		1,801
Total derivative financial liabilities	$	1,773	$	16,788

In addition, Pinto Valley contracted for fixed diesel prices with a supplier on its expected 2024 diesel consumption at $3.32/gallon from February to December 2024. The contracted diesel price has resulted in cost savings of $0.4 million and $0.4 million during the three and six months ended June 30, 2024, respectively.

Financial Capability

The Company’s ability to service its ongoing obligations and cover anticipated corporate, exploration and development costs associated with its existing operations is dependent on the Pinto Valley, Mantos Blancos, Mantoverde, and Cozamin mines generating positive cash flow and available liquidity[1] . We have reasonable expectations for our operating performance, additional liquidity options are available such as debt and capital market access, the Corporate RCF of $700 million, $400 million of which is undrawn, and the hedging programs described above, which all provide protection and significant available liquidity as the Mantoverde Development Project ramps up to name plate capacity.

In February 2024, the Company and Orion closed a bought deal financing with a syndicate of underwriters. In connection with the Offering, 56,548,000 Common Shares were issued by the Company with a value of C$6.30 per common share raising total proceeds, net of transaction costs, of $252.9 million.

On April 5, 2024, the Company and Orion announced that Orion entered into a block trade agreement to sell 62.4 million CHESS depository interests (“CDIs”) of Capstone (or the equivalent of 62.4 million fully paid Common Shares of Capstone) at a price of A$9.50 per CDI, for gross proceeds to Orion of approximately A$592.8 million. Post transaction, Orion owns 90.5 million common shares, representing approximately 12.0% of the outstanding common shares of Capstone.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 27

Outstanding Share Data and Dilution Calculation

The Company is authorized to issue an unlimited number of common shares without par value. The table below summarizes the Company’s common shares and securities convertible into common shares as at August 1, 2024:

Issued and outstanding Share options outstanding at a weighted average exercise price of $5.56 Treasury share units outstanding at a weighted average exercise price of $5.70 Fullydiluted	754,115,412 3,342,432 3,801,605
	761,259,449

Under the Treasury Share Unit Plan, the Company has the ability to settle the units in shares up to 3.5% of the total issued and outstanding common shares of Capstone Copper.

Capital Management

Capstone Copper’s capital management objectives are intended to safeguard the Company’s ability to support its normal operating requirements on an ongoing basis as well as continue the development and exploration of its mineral properties and support any expansion plans. As part of the Company’s treasury policy, the Company will only hold deposits in Canadian Tier 1 banks, International Commercial Banks with a rating of A- or greater, Canadian and US government bonds, or bankruptcy remote treasury market or exchange-traded funds of AAA rating.

4.5 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.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 28

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.

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.

Construction and other operating contracts

The Company entered into the EPC with Ausenco Chile Limitada for an estimated aggregate cost of $525 million. As at June 30, 2024, capital expenditures committed for all the company's mine sites, but not yet incurred, were $58.9 million.

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.

Other

The Company has provided a guarantee to the Chilean Internal Revenue Service that $13.9 million of all valueadded taxes previously refunded, plus interest, will be repaid if construction of the Santo Domingo development project is not completed by August 31, 2026. The Company may request an extension to the date that aligns with a future Santo Domingo construction decision.

Provisions

Provisions of $256.5 million at June 30, 2024 includes the following:

$214.1 million for reclamation and closure cost obligations at Capstone Copper’s operating mines;
$31.0 million related to other long-term closure obligations at the Cozamin and Chilean mines; and
$2.5 million for the long-term portion of the share-based payment obligations associated with the Share Unit Plan. The current portion of the share-based payment obligations of $6.2 million is recorded in other liabilities.
$8.9 million for the long-term portion of the Minto obligation as Minto ceased operations during Q2 2023 (see below).

Minto Obligation

On June 3, 2019, the Company completed the sale of its 100% interest in the Minto Mine and in conjunction with the completion of the sale, Minto had posted a surety bond to cover potential future reclamation liabilities. The Company remains an indemnitor for Minto’s C$72 million surety bond obligation in the Yukon. During Q2 2023,

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 29

Minto ceased operations and the Yukon Government took over all reclamation activities. As Minto defaulted on the surety bond in Q2 2023, Capstone has recognized a provision related to the Company's obligations towards the issuer of the surety bond. During the three and six months ended June 30, 2024, the Company made payments of $5.3 million and $8.2 million, respectively, to the Yukon Government for reclamation work performed. As at June 30, 2024, the total remaining provision is $33.4 million, and $24.6 million recorded in other current liabilities represents the current portion.

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, that 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.

Precious Metal Streams

Cozamin Silver Stream

On February 19, 2021, Capstone Mining concluded the precious metals purchase arrangement with Wheaton Precious Metals Corp. ("Wheaton") whereby the Company received upfront cash consideration of $150 million against delivery of 50% of the silver production from the Company’s Cozamin mine until 10 million ounces have been delivered, thereafter dropping to 33% of silver production for the remaining life of the mine. Cozamin has delivered 2.2 million silver ounces since contract inception until June 30, 2024. The agreement with Wheaton includes a completion test, which requires the completion of the paste backfill plant by December 31, 2023, 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.

The Company recorded the upfront cash consideration received as deferred revenue and recognizes amounts in revenue as silver is delivered under the arrangement. For the period ended June 30, 2024, the amount of the deferred revenue liability recognized as revenue was $7.1 million.

Santo Domingo Gold Stream

On April 21, 2021, Capstone Mining received an early deposit of $30 million in relation to the precious metals purchase arrangement with Wheaton effective March 24, 2021. If completion has not been achieved on or before the third-anniversary date of receiving the early deposit, an 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 at June 30, 2024 the value of the obligation is $7.3 million. During Q2 2024, the Company delivered 0.2 million gold ounces to Wheaton as part of the early deposit delay payment.

The Company recorded the upfront early deposit of $30 million received as deferred revenue and will recognize amounts in revenue as gold is delivered under the arrangement. For the period ended June 30, 2024, there was no amortization of the deferred revenue liability recognized as revenue.

Purchase of Non-Controlling Interest from KORES

At June 30, 2024, a liability of $43.3 million was recognized in other current liabilities equal to the discounted amount of the remaining $45.0 million to be paid to KORES on March 24, 2025 as part of the agreement to purchase its 30% share of Acquisition Co. The discounted amount of the remaining $45.0 million will be accreted up to its face value at 5% per year. During the three and six months ended June 30, 2024, $0.4 million and $0.9 million, respectively, of accretion was recorded in other non-cash interest expenses in the condensed interim consolidated statements of income (loss).

Off-Balance Sheet Arrangements

As at June 30, 2024, the Company had no off-balance-sheet arrangements other than the following:

those disclosed under Commitments in the condensed interim consolidated financial statements for the three and six months ended June 30, 2024;
capital expenditure commitments totalling $58.9 million;
seven surety bonds totalling $255.9 million.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 30

4.6 Transactions with Related Parties

As described in the Nature of Business section, Capstone Copper has related party relationships, as defined by IFRS, with its key management personnel.

Related party transactions and balances are disclosed in the condensed interim consolidated financial statements for the period ended June 30, 2024, except the following:

Total funds, excluding interest, advanced by MMC as at June 30, 2024 was $222.9 million (December 31, 2023 - $60.0 million), which comprises $60.0 million for the COF and $162.9 million in shareholder loans. $12.0 million has been accrued as interest on the shareholder loan.

4.7 Accounting Changes

Changes in Accounting Policies and Material Accounting Estimates and Judgments

Accounting policies as well as any changes in accounting policies are discussed in Note 3 "Material Accounting Policy Information, Estimates and Judgements" of the June 30, 2024 condensed interim consolidated financial statements.

New IFRS Pronouncements

New IFRS Pronouncements are discussed in Note 4 "Adoption of New and Revised IFRS and IFRS Not Yet Effective" of the June 30, 2024 condensed interim consolidated financial statements.

4.8 Subsequent Event

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

5.0 NON-GAAP AND OTHER PERFORMANCE MEASURES

The Company uses certain performance measures in its analysis. These Non-GAAP performance measures are included in this MD&A because these statistics are key performance measures that management uses to monitor performance, to assess how the Company is performing, and to plan and assess the overall effectiveness and efficiency of mining operations. These performance measures do not have a standard meaning within IFRS and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. These performance measures should not be considered in isolation as a substitute for measures of performance in accordance with IFRS.

Some of these performance measures are presented in Highlights and discussed further in other sections of the MD&A. These measures provide meaningful supplemental information regarding operating results because they exclude certain significant items that are not considered indicative of future financial trends either by nature or amount. As a result, these items are excluded from management assessment of operational performance and preparation of annual budgets. These significant items may include, but are not limited to, restructuring and asset impairment charges, individually significant gains and losses from sales of assets, share-based compensation, unrealized gains or losses, and certain items outside the control of management. These items may not be nonrecurring. However, excluding these items from GAAP or Non-GAAP results allows for a consistent understanding of the Company's consolidated financial performance when performing a multi-period assessment including assessing the likelihood of future results. Accordingly, these Non-GAAP financial measures may provide insight to investors and other external users of the Company's consolidated financial information.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 31

Breakdown of C1 Cash Costs and All-in Sustaining Cost Per Pound of Payable Copper Produced

C1 cash costs per payable pound of copper produced is a measure reflective of operating costs per unit. C1 cash costs is calculated as cash production costs of metal produced net of by-product credits and is a key performance measure that management uses to monitor performance. Management uses this measure to assess how well the Company’s producing mines are performing and to assess the overall efficiency and effectiveness of the mining operations and assumes that realized by-product prices are consistent with those prevailing during the reporting period.

All-in sustaining costs per payable pound of copper produced is an extension of the C1 cash costs measure discussed above and is also a non-GAAP key performance measure that management uses to monitor performance. Management uses this measure to analyze margins achieved on existing assets while sustaining and maintaining production at current levels. Consolidated All-in sustaining costs includes sustaining capital and corporate general and administrative costs.

Three Months Ended June 30, 2024

	Q2 2024	Q2 2024
	Pinto Valley Mantos Blancos Mantoverde Cozamin	Total
Payable copper produced (000s pounds) ($ millions) Production costs of metal produced (per financials) Transportation cost to point of sale Inventory (write-down) reversal Inventoryworkingcapital adjustments	34,085 21,587 19,222 13,036 80.5 68.7 70.5 24.5 (7.9) (2.3) (0.2) (1.3) — (0.7) 0.6 — (2.5) 2.0 (1.2) 0.1	87,930 244.2 (11.7) (0.1) (1.6)
Cash production costs of metal produced ($/pound) Production costs Mining Milling/Processing G&A C1P sub-total By-product credits Treatment and sellingcosts	70.1 67.7 69.7 23.3 0.56 1.01 1.09 1.10 1.22 1.88 2.19 0.42 0.26 0.25 0.35 0.27	230.8 0.87 1.47 0.28
	2.04 3.14 3.63 1.79 (0.11) (0.01) — (0.39) 0.53 0.25 0.05 0.34	2.62 (0.10) 0.32
C1 cash cost($/poundproduced)	2.46 3.38 3.68 1.74	2.84
	0.02 0.06 — 0.09 — 0.83 0.03 0.02 0.34 0.62 0.43 0.43 0.06 0.12 0.22 — 0.01 0.03 0.03 0.05 — 0.01 — 0.05	0.04 0.21 0.44 0.10 0.03 0.01 0.10
($/pound)
Royalties Production-phase capitalized stripping / Mineralized drift Sustaining capital Sustaining leases Accretion of reclamation obligation Amortization of reclamation asset Corporate G&A,excludingdepreciation

All-in sustaining cost adjustments All-in sustaining cost($/poundproduced)	0.43 1.67 0.71 0.64 2.89 5.05 4.39 2.38	0.93 3.77

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 32

Three Months Ended June 30, 2023

	Q2 2023	Q2 2023
	Pinto Valley Mantos Blancos Mantoverde Cozamin	Total
Payable copper produced (000s pounds) ($ millions) Production costs of metal produced (per financials) Transportation cost to point of sale Inventory (write-down) reversal Inventoryworkingcapital adjustments	27,063 25,057 18,274 14,024 74.4 81.5 93.5 24.6 (5.4) (3.1) (0.3) (1.4) (0.6) 0.4 (1.3) — 2.4 (5.0) (21.0) (0.6)	84,418 274.0 (10.2) (1.5) (24.2)
Cash production costs of metal produced2 ($/pound) Production costs Mining Milling/Processing G&A C1P sub-total By-product credits Treatment and sellingcosts	70.8 73.8 70.9 22.6 0.85 0.97 0.68 1.00 1.45 1.72 2.86 0.36 0.32 0.25 0.33 0.24	238.1 0.87 1.66 0.29
	2.62 2.94 3.87 1.60 (0.11) (0.01) — (0.32) 0.47 0.22 0.05 0.35	2.82 (0.09) 0.28
C1 cash cost($/poundproduced)	2.98 3.15 3.92 1.63	3.01
	0.03 0.05 — 0.07 — 0.65 0.45 0.03 0.65 0.17 0.57 0.52 0.04 0.13 0.09 — 0.02 0.03 0.04 0.03 — 0.01 0.01 0.03	0.04 0.29 0.47 0.07 0.03 0.01 0.08
($/pound)
Royalties Production-phase capitalized stripping / Mineralized drift Sustaining capital Sustaining leases Accretion of reclamation obligation Amortization of reclamation asset Corporate G&A,excludingdepreciation

All-in sustaining cost adjustments All-in sustaining cost($/poundproduced)	0.74 1.04 1.16 0.68 3.72 4.19 5.08 2.31	0.99
		4.00

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 33

Six Months Ended June 30, 2024

	2024 YTD	2024 YTD
	Pinto Valley Mantos Blancos Mantoverde Cozamin	Total
Payable copper produced (000s pounds) ($ millions) Production costs of metal produced (per financials) Transportation cost to point of sale Inventory (write-down) reversal Inventoryworkingcapital adjustments	67,486 45,077 40,113 25,762 156.3 135.9 151.2 49.9 (15.3) (4.7) (0.7) (2.8) — (0.6) 1.3 — (1.5) 2.8 (3.3) 0.4	178,438 493.3 (23.5) 0.7 (1.6)
Cash production costs of metal produced ($/pound) Production costs Mining Milling/Processing G&A	139.5 133.4 148.5 47.5 0.58 0.92 1.23 1.14 1.22 1.80 2.13 0.42 0.27 0.24 0.34 0.28	468.9 0.89 1.46 0.28
C1P sub-total By-product credits Treatment and sellingcosts	2.07 2.96 3.70 1.84 (0.08) (0.01) — (0.35) 0.51 0.26 0.05 0.34	2.63 (0.09) 0.33
C1 cash cost($/poundproduced)	2.50 3.21 3.75 1.83	2.87
	0.02 0.06 — 0.08 — 0.78 0.05 0.02 0.26 0.44 0.33 0.45 0.06 0.11 0.17 0.01 0.01 0.03 0.03 0.05 — 0.01 — 0.05	0.03 0.21 0.34 0.09 0.03 0.01 0.09
($/pound)
Royalties Production-phase capitalized stripping / Mineralized drift Sustaining capital Sustaining leases Accretion of reclamation obligation Amortization of reclamation asset Corporate G&A,excludingdepreciation

All-in sustaining cost adjustments All-in sustaining cost($/poundproduced)	0.35 1.43 0.58 0.66 2.85 4.64 4.33 2.49	0.80 3.67

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 34

Six Months Ended June 30, 2023

	2023 YTD	2023 YTD
	Pinto Valley Mantos Blancos Mantoverde Cozamin	Total
Payable copper produced (000s pounds) ($ millions) Production costs of metal produced (per financials) Transportation cost to point of sale Inventory (write-down) reversal Inventoryworkingcapital adjustments	54,428 55,378 37,084 25,120 156.7 157.2 157.1 43.4 (11.9) (6.3) (0.7) (2.6) (0.7) — (1.8) — 2.3 (2.7) (9.0) —	172,010 514.4 (21.5) (2.5) (9.4)
Cash production costs of metal produced2 ($/pound) Production costs Mining Milling/Processing G&A C1P sub-total By-product credits Treatment and sellingcosts	146.4 148.2 145.6 40.8 0.94 0.87 0.71 1.01 1.41 1.59 2.90 0.35 0.34 0.22 0.31 0.26	481.0 0.88 1.63 0.29
	2.69 2.68 3.92 1.62 (0.15) (0.02) — (0.30) 0.49 0.23 0.05 0.35	2.80 (0.10) 0.29
C1 cash cost($/poundproduced)	3.03 2.89 3.97 1.67	2.99
	0.02 0.06 — 0.07 — 0.62 0.29 0.03 0.50 0.13 0.41 0.54 0.03 0.12 0.08 0.01 0.02 0.03 0.04 0.03 — 0.01 0.01 0.03	0.03 0.27 0.38 0.06 0.03 0.01 0.07
($/pound)
Royalties Production-phase capitalized stripping / Mineralized drift Sustaining capital Sustaining leases Accretion of reclamation obligation Amortization of reclamation asset Corporate G&A,excludingdepreciation

All-in sustaining cost adjustments All-in sustaining cost($/poundproduced)	0.57 0.97 0.83 0.71 3.60 3.86 4.80 2.38	0.85
		3.84

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 35

Reconciliation of Net (debt) / Net cash

Net debt / Net cash is a non-GAAP performance measure used by the Company to assess its financial position and is composed of Long-term debt (excluding deferred financing costs and purchase price accounting ("PPA") fair value adjustments), Cost overrun facility from MMC, Cash and cash equivalents, Short-term investments, and excluding shareholder loans.

($ millions)	June 30, 2024	December 31, 2023
Long-term debt (per financials), excluding deferred financing costs
of 1.7 and 1.9 and PPA fair value adjustments of 6.1 and 6.6	(820.0)	(994.0)
COF	(60.0)	(60.0)
Add:
Cash and cash equivalents (per financials)	137.9	126.0
Short-term investments(per financials)	0.8	0.8
Net(debt)/cash	(741.3)	(927.2)

Reconciliation of Attributable Net (debt) / Net cash

Attributable net debt / net cash is a non-GAAP performance measure used by the Company to assess its financial position and is calculated as net debt / net cash excluding amounts attributable to non-controlling interests.

($ millions)	June 30, 2024	December 31, 2023
Attributable Long-term debt, excluding deferred financing costs of
1.7 and 1.9 and PPA fair value adjustments of 6.1 and 6.6	(664.0)	(838.0)
Attributable COF	(42.0)	(42.0)
Add:
Attributable Cash and cash equivalents	115.4	102.6
Attributable Short-term investments	0.8	0.8
Attributable Net(debt)/cash	(589.8)	(776.6)

Reconciliation of Available Liquidity

Available liquidity is a non-GAAP performance measure used by the Company to assess its financial position and is composed of RCF credit capacity, the $520 million Mantoverde DP facility capacity, Cash and cash equivalents and Short-term investments. For clarity, Available liquidity does not include the Mantoverde $60 million cost overrun facility from MMC nor the $260 million undrawn portion of the gold stream from Wheaton related to the Santo Domingo development project as they are not available for general purposes.

($ millions)	June 30, 2024 December 31, 2023
Revolving credit facility capacity	700.0 700.0 520.0 520.0 (820.0) (994.0)
MVDP debt facility Long-term debt (per financials), excluding deferred financing costs of 1.7 and 1.9 and PPA fair value adjustments of 6.1 and 6.6 Cash and cash equivalents (per financials) Short-term investments(per financials)
	400.0 226.0 137.9 126.0 0.8 0.8
Available liquidity	538.7 352.8

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 36

Reconciliation of Adjusted Net Income (Loss) Attributable To Shareholders

Adjusted net income (loss) attributable to shareholders is a non-GAAP measure of Net income (loss) attributable to shareholders as reported, adjusted for certain types of transactions that in our judgment are not indicative of our normal operating activities or do not necessarily occur on a regular basis.

($ millions, except share and per share amounts)2	Q2 2024 Q2 2023 2024 YTD 2023 YTD
Net income (loss) attributable to shareholders	29.3 (36.5) 24.5 (56.5) (0.5) (0.1) (1.5) 3.7 (9.5) (55.2) (7.2) (20.6) 4.6 2.4 11.7 14.4 1.1 (2.1) (6.3) (1.4) — 14.1 — 14.3 0.1 0.7 (7.4) 53.9 (7.4) 53.9 — 0.2 (1.3) — 0.1 0.1 0.2 0.2 3.1 11.0 3.0 (2.8)
Inventory write-down Unrealized gain on derivative contracts Share-based compensation expense Unrealized foreign exchange loss (gain) Other expense - non-recurring fees Gold stream obligation Minto obligation (recovery) expense (Gain) loss on disposal of assets
G&A - care and maintenance Tax effect on the above adjustments
Adjusted net income (loss) attributable to shareholders	20.9 (12.2) 16.4 5.2 20.9 (16.5) 16.4 5.2 — 4.3 — —

Adjusted net income (loss) attributable to shareholders attributable to:
Shareholders of Capstone Copper Corp. Non-controlling interests
	20.9 (12.2) 16.4 5.2 753,741,708693,783,922741,104,566692,823,554 0.03 (0.02) 0.02 0.01 756,735,903696,694,428743,630,003695,707,267 0.03 (0.02) 0.02 0.01
Weighted average common shares - basic (per financials)
Adjusted net income (loss) attributable to shareholders of Capstone Copper Corp. per common share - basic ($)
Weighted average common shares - diluted (per financials)
Adjusted net income (loss) attributable to shareholders of Capstone Copper Corp. per common share - diluted($)

2 Certain of prior period comparative figures have been reclassified to conform with the current year's presentation.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 37

Reconciliation of Adjusted EBITDA

EBITDA is a non-GAAP measure of net income (loss) before net finance expense, tax expense, and depletion and amortization.

Adjusted EBITDA is non-GAAP measure of EBITDA before the pre-tax effect of the adjustments made to net income (loss) (above) as well as certain other adjustments required under the RCF agreement in the determination of EBITDA for covenant calculation purposes.

The adjustments made to net income (loss) and Adjusted EBITDA allow management and readers to analyze our results more clearly and understand the cash-generating potential of the Company.

	Three months ended June 30, 2024	Three months ended June 30, 2024
($ millions)2	Pinto Valley Mantos Blancos Mantoverde Cozamin Other	Total
Net income (loss) per financials Net finance costs Taxes Depletion and amortization	$ 44.7 $ (5.9) $ (6.2) $ 14.3 $ (19.4) 1.0 1.8 2.0 2.3 0.4 10.7 (2.6) (3.0) 12.0 2.9 21.3 24.6 15.4 10.3 (0.1)	$ 27.5 7.5 20.0 71.5
EBITDA	77.7 17.9 8.2 38.9 (16.2)	126.5
Share-based compensation expense Total inventory write-down (reversal) Realized (gain) loss on MVDP derivative contracts Unrealized (gain) loss on derivatives Unrealized foreign exchange loss (gain) Gold stream obligation Minto obligation (recovery) expense Unrealized provisional pricing and volume adjustments on revenue	— — — — 4.6 — 1.2 (1.7) — — — — 7.0 — — — — (3.8) — (5.7) 0.1 0.5 1.0 (0.7) 0.2 — — — — 0.1 — — — — (7.4) 3.2 1.5 0.2 0.4 (4.2)	4.6 (0.5) 7.0 (9.5) 1.1 0.1 (7.4) 1.1
Adjusted EBITDA	81.0 21.1 10.9 38.6 (28.5)	123.1

2 Certain of prior period comparative figures have been reclassified to conform with the current year's presentation.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 38

	Three months ended June 30, 2023	Three months ended June 30, 2023
($ millions)2	Pinto Valley Mantos Blancos Mantoverde Cozamin Other	Total
Net income (loss) per financials Net finance costs Taxes Depletion and amortization	$ (2.9) $ (13.3) $ 4.1 $ 20.6 $ (42.4) 0.7 1.7 (0.5) 2.3 3.3 (2.6) (3.7) 1.2 4.6 1.7 17.4 17.8 9.8 6.9 0.2	$ (33.9) 7.5 1.2 52.1
EBITDA	12.6 2.5 14.6 34.4 (37.2)	26.9
Share-based compensation expense Total inventory write-down (reversal) Realized (gain) loss on MVDP derivative contracts Unrealized (gain) loss on derivatives (Gain) loss on disposal of assets Unrealized foreign exchange loss (gain) Other expense - non-recurring Unrealized provisional pricing and volume adjustments on revenue Insuranceproceeds received	— — — — 2.4 0.8 (1.0) — — — — — (0.6) — — — — (25.9) — (29.3) — 0.2 — — — 0.1 (0.8) (0.3) (1.2) 0.1 — 8.9 — — 5.2 4.3 2.2 0.4 0.1 (3.1) — — — — —	2.4 (0.2) (0.6) (55.2) 0.2 (2.1) 14.1 3.9 —
Adjusted EBITDA	17.8 12.0 (11.8) 33.3 (8.0)	43.3

2 Certain of prior period comparative figures have been reclassified to conform with the current year's presentation.

	Six months ended June 30, 2024	Six months ended June 30, 2024
($ millions)2	Pinto Valley Mantos Blancos Mantoverde Cozamin Other	Total
Net income (loss) per financials Net finance costs Taxes Depletion and amortization	$ 61.3 $ (7.1) $ (9.3) $ 23.8 $ (47.0) 2.1 3.3 2.6 4.6 3.4 13.4 (2.0) (4.3) 16.0 3.6 43.2 44.9 32.1 20.5 —	$ 21.7 16.0 26.7 140.7
EBITDA	120.0 39.1 21.1 64.9 (40.0)	205.1
Share-based compensation expense Total inventory write-down (reversal) Realized (gain) loss on MVDP derivative contracts Unrealized (gain) loss on derivatives (Gain) loss on disposal of assets Unrealized foreign exchange gain Gold stream obligation Minto obligation (recovery) expense Unrealized provisional pricing and volume adjustments on revenue	— — — — 11.7 — 1.2 (2.7) — — — — 7.7 — — — — (9.2) — 2.0 — — (1.3) 0.1 (0.1) (0.1) (2.5) (2.2) (0.5) (1.0) — — — — 0.7 — — — — (7.4) (0.1) 3.8 0.1 0.3 (2.5)	11.7 (1.5) 7.7 (7.2) (1.3) (6.3) 0.7 (7.4) 1.6
Adjusted EBITDA	119.8 41.6 13.5 64.8 (36.5)	203.2

2 Certain of prior period comparative figures have been reclassified to conform with the current year's presentation.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 39

($ millions)2	Six months ended June 30, 2023	Six months ended June 30, 2023
	Pinto Valley Mantos Blancos Mantoverde Cozamin Other	Total
Net income (loss) per financials Net finance costs Taxes Depletion and amortization	$ 14.0 $ 0.3 $ (21.2) $ 39.6 $ (95.6) 1.5 3.3 (0.4) 4.5 6.5 (0.8) 0.7 (9.9) 9.6 (8.6) 39.0 30.6 17.5 12.8 0.3	$ (62.9) 15.4 (9.0) 100.2
EBITDA	53.7 34.9 (14.0) 66.5 (97.4)	43.7
Share-based compensation expense Total inventory write-down (reversal) Realized (gain) loss on MVDP derivative contracts Unrealized (gain) loss on derivatives Unrealized foreign exchange loss (gain) Other expense - non-recurring Unrealized provisional pricing and volume adjustments on revenue	— — — — 14.4 1.0 — 2.7 — — — — 1.2 — — — — (7.5) — (13.1) 0.1 1.0 0.3 (2.4) (0.4) — 8.9 — — 5.4 4.2 4.6 1.5 0.8 (11.0)	14.4 3.7 1.2 (20.6) (1.4) 14.3 0.1
Adjusted EBITDA	59.0 49.4 (15.8) 64.9 (48.2)	109.3

2 Certain of prior period comparative figures have been reclassified to conform with the current year's presentation.

Other Non-GAAP measures

Sustaining Capital

Sustaining capital is expenditures to maintain existing operations and sustain production levels. A reconciliation of this non-GAAP measure to GAAP segment MPPE additions is included within the mine site sections of this document.

Expansionary Capital

Expansionary capital is expenditures to increase current or future production capacity, cash flow or earnings potential. A reconciliation of this non-GAAP measure to GAAP segment MPPE additions is included within the mine site sections of this document.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 40

Additional Information and Reconciliations

Sales from Operations

	2024		2023
	Q1 Q2	Total	Q1 Q2 Q3 Q4 Total
Copper (tonnes) Concentrate Pinto Valley Mantos Blancos Cozamin	13,818 15,198 8,981 7,620 5,709 5,718	29,016 16,601 11,427	12,196 11,385 11,736 15,013 50,330 9,497 8,380 8,870 10,453 37,200 4,823 6,452 5,309 6,065 22,649
Total Concentrate	28,508 28,536	57,044	26,516 26,217 25,915 31,531 110,179
Cathode Pinto Valley Mantos Blancos Mantoverde	904 823 1,806 1,926 9,778 8,463	1,727 3,732 18,241	603 683 824 643 2,753 3,474 3,570 3,248 1,796 12,088 6,863 10,285 8,713 9,313 35,174
Total Cathode	12,488 11,212	23,700	10,940 14,538 12,785 11,752 50,015
Total Copper	40,996 39,748	80,744	37,456 40,755 38,700 43,283 160,194
Zinc (000 pounds) Cozamin Molybdenum (tonnes) Pinto Valley Silver (000s ounces) Cozamin Mantos Blancos Pinto Valley	(4) — 18 25 410 462 215 188 60 75	(4)	— (10) 250 — 240 55 17 20 28 120 349 502 400 448 1,699 330 248 235 269 1,082 58 49 65 87 259
		43 872 403 135
Total	685 725	1,410	737 799 700 804 3,040
Gold (ounces) Pinto Valley	(462) 209	(253)	389 537 3,099 2,581 6,606
Total	(462) 209	(253)	389 537 3,099 2,581 6,606

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 41

6.0 SELECTED QUARTERLY FINANCIAL INFORMATION

($ millions, exceptper share data)2	Q2 2024	Q1 2024	Q4 2023	Q3 2023(i)	Q2 2023(ii)	Q1 2023(iii)	Q4 2022(iv)	Q3 2022
Revenue	393.1	339.9	353.7	322.2	333.9	335.6	362.1	309.2
Earnings (loss) from mining operations	72.5	18.1	21.6	12.0	5.0	44.4	75.7	(11.2)
Net income (loss) attributable to
shareholders	29.3	(4.8)	(12.3)	(32.9)	(36.5)	(20.0)	(20.9)	34.1
Net earnings (loss) per share
attributable to shareholders - basic
and diluted	0.04	(0.01)	(0.02)	(0.05)	(0.05)	(0.03)	(0.03)	0.05
Operating cash flow before changes in
non-cash working capital	102.9	62.1	80.4	59.3	22.0	41.7	76.1	13.9
Capital expenditures (including
capitalized stripping)	194.6	170.0	182.1	228.3	201.3	209.4	204.9	148.5

(i) Net Loss in Q3 2023 includes $24 million of Deferred income tax expense related to the adoption of the Chilean Tax Reform.

(ii) Net Loss in Q2 2023 includes $59 million of Minto obligation.

(iii) Net Loss in Q1 2023 includes $44 million of net loss on derivative instruments.

(iv) Net loss in Q4 2022 includes $24 million of share unit expense and $64 million of net loss on derivative instruments.

2 Certain of prior period comparative figures have been reclassified to conform with the current year's presentation.

7.0 MANAGEMENT'S REPORT ON INTERNAL CONTROLS AND OTHER INFORMATION

Disclosure Controls and Procedures (“DC&P”)

As at June 30, 2024, Capstone Copper's management, with the participation of its Chief Executive Officer & Director and Senior Vice President & Chief Financial Officer, has designed DC&P which provide reasonable assurance that material information related to Capstone Copper is identified and communicated in a timely manner.

Internal Control Over Financial Reporting (“ICFR”)

Capstone Copper’s management, with the participation of its Chief Executive Officer & Director and Senior Vice President & Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting (“ICFR”). Any system of ICFR, no matter how well designed, has inherent limitations and cannot provide absolute assurance that all misstatements and instances of fraud, if any, within the Company have been prevented or detected. Capstone Copper's ICFR is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.

The Company uses the 2013 Internal Control – Integrated Framework published by The Committee of Sponsoring Organizations of the Treadway Commission (“2013 COSO framework”) as the basis for assessing its ICFR.

There have been no changes in the Company's ICFR that materially affected, or are reasonably likely to materially affect, ICFR during the period ended in June 30, 2024.

Other Information

Approval

The Board of Directors of Capstone Copper approved the disclosure contained in this MD&A. A copy of this MD&A will be provided to anyone who requests it from the Company. A copy of this MD&A is also available for viewing at the Company’s website at www.capstonecopper.com or on the Company’s profile on the SEDAR+ website at www.sedarplus.ca.

Additional Information

Additional information is available for viewing at the Company’s website at www.capstonecopper.com or on the Company’s profile on the SEDAR+ website at www.sedarplus.ca.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 42

8.0 NATIONAL INSTRUMENT 43-101 COMPLIANCE

Unless otherwise indicated, Capstone Copper has prepared the technical information in this MD&A (“Technical Information”) based on information contained in the technical reports and news releases (collectively the “Disclosure Documents”) available under Capstone Copper’s company profile on SEDAR+ at www.sedarplus.ca. Each Disclosure Document was prepared by or under the supervision of a qualified person (a “Qualified Person”) as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). Readers are encouraged to review the full text of the Disclosure Documents which qualifies the Technical Information. Readers are advised that Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents.

Disclosure Documents include the National Instrument 43-101 compliant technical reports titled "NI 43-101 Technical Report on the Cozamin Mine, Zacatecas, Mexico" effective January 1, 2023, “NI 43-101 Technical Report on the Pinto Valley Mine, Arizona, USA” effective March 31, 2021, “Santo Domingo Project, Region III, Chile, NI 43-101 Technical Report” effective February 19, 2020, and "Mantos Blancos Mine NI 43-101 Technical Report Antofagasta / Región de Antofagasta, Chile" and "Mantoverde Mine and Mantoverde Development Project NI 43-101 Technical Report Chañaral / Región de Atacama, Chile", both effective November 29, 2021.

The disclosure of Scientific and Technical Information in this MD&A was reviewed and approved by Clay Craig, P.Eng., Director, Mining & Strategic Planning (technical information related to Mineral Reserves at Pinto Valley and Cozamin), and Cashel Meagher, P.Geo., President and Chief Operating Officer (technical information related to project updates at Santo Domingo and Mineral Reserves and Resources at Mantos Blancos and Mantoverde) all Qualified Persons under NI 43-101.

9.0 RISKS AND UNCERTAINTIES

For full details on the risks and uncertainties affecting the Company, please refer to the Annual Information Form dated March 18, 2024 (See section entitled "Risk Factors"). This document is available for viewing on the Company’s website at www.capstonecopper.com or on the Company’s profile on the SEDAR+ website at www.sedarplus.ca. Please also refer to the prospectus dated March 6, 2024 that is available on the Company's market announcements platform at www.asx.com.au and under our issuer profile on SEDAR+ at www.sedarplus.ca.

Risks in connection with the Cozamin Silver Stream Agreement with Wheaton.

The Cozamin Silver Stream Agreement is subject to pricing risk. Unexpected spikes in silver prices may result in an increase in silver credit payables compared to receivables and the use of hedging mechanisms may not be economical to reduce such risks. Capstone is required to meet certain completion requirements before September 30, 2024, under the Cozamin Silver Stream Agreement, namely, Capstone was required to construct a paste backfill plant to produce at least 105,000 cubic metres of suitable paste backfill that is used in the underground operations at Cozamin over a period of 90 consecutive days during which a completion test has been performed.

Concentration of Share Ownership of Capstone Copper.

As at the date hereof, Orion Fund JV Limited, Orion Mine Finance Fund II LP and Orion Mine Finance (Master) Fund 1-A LP (collectively, “Orion”) own approximately 12.02%% of the outstanding Common Shares and Hadrian Capital Partners Inc. owns approximately 13.37% of the outstanding Common Shares. See news release "Capstone Copper and Orion Announce Closing of C$328 Million Secondary Bought Deal Offering of Common Shares" dated March 31, 2023, and “Capstone Copper and Orion Announce Closing of $431 Million Bought Deal” dated February 8, 2024. Following the closing of the Offering, Orion, in the aggregate, beneficially own 152,936,179 Common Shares, representing 20.3% of the outstanding Common Shares. Subsequently, after the sale of Capstone’s CDIs on the ASX as described in the news release “Orion Undertakes A$593 Million Sale of Capstone CDIs on the ASX” on April 5, 2024, Orion’s ownership was reduced to 90,536,179 Common Shares, representing 12.02% of the outstanding Common Shares. As long as these shareholders maintain their significant positions in Capstone, they will have the ability to exercise influence with respect to the affairs of Capstone and

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 43

significantly affect the outcome of matters upon which shareholders are entitled to vote. Furthermore, there is a risk that Capstone’s securities are less liquid and trade at a relative discount compared to circumstances where these shareholders did not have the ability to influence or determine matters affecting Capstone. Moreover, there is a risk that their significant interests in Capstone discourages transactions involving a change of control of Capstone, including transactions in which an investor, as a holder of Capstone’s securities, would otherwise receive a premium for its Capstone’s securities over the then-current market price. A disposition of shares by these shareholders could adversely affect the market price of the Common Shares.

Pursuant to the Registration and Nomination Rights Agreement (as defined below) between Capstone Mining and Orion dated March 23, 2022, provided Orion maintains certain levels of ownership of the Common Shares, Orion: (i) has rights to nominate up to two individuals to sit on the Board of Directors and (ii) may demand we file one or more prospectuses or otherwise facilitate sales of Orion’s shares. Subsequently following the recent transaction, which resulted in Orion’s ownership decreasing to 12.02% and falling below the 20% threshold, this right has now been reduced to nominating just one individual. See “Material Contracts” in the AIF for further information regarding the Registration and Nomination Rights Agreement.

1 These are non-GAAP performance measures. Refer to the MD&A section titled “Non-GAAP and Other Performance Measures”. Page 44

AI assistant

Capstone Copper Corp. — Interim / Quarterly Report 2024

48344_rns_2024-08-01_7b821aec-6b60-489b-a24b-12d1c2e99813.pdf

TABLE OF CONTENTS

MANAGEMENT’S DISCUSSION AND ANALYSIS OF CAPSTONE COPPER CORP. FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

1.0 BUSINESS OVERVIEW

2.0 Q2 2024 HIGHLIGHTS AND SIGNIFICANT ITEMS

Operating Highlights

Consolidated

Mantoverde Development Project

MV Optimized Feasibility Study and Phase II

Santo Domingo Feasibility Study & Sierra Norte Acquisition

PV District Growth Study

Corporate Exploration Update

2.1 2024 Guidance

3.0 OPERATIONAL REVIEW

3.1 Pinto Valley Mine – Miami, Arizona

Capital Expenditures

3.2 Mantos Blancos – Antofagasta, Chile Operating Statistics

2024 versus 2023 Insights

Capital Expenditures

3.3 Mantoverde (70% ownership) – Atacama, Chile Operating Statistics

2024 versus 2023 Insights

Capital Expenditures

3.4 Cozamin Mine – Zacatecas, Mexico Operating Statistics

2024 versus 2023 Insights

Capital Expenditures

3.5 Santo Domingo Project – Chile (Copper and Iron)

Capital Expenditures

4.0 FINANCIAL REVIEW

4.1 Consolidated Results

Consolidated Net Income (Loss) Analysis

The difference quarter-over-quarter was driven by:

4.2 Revenue Analysis

Revenue by Mine

Provisionally Priced Copper

Reconciliation of Realized Copper Price[1]

Changes in Cash Flows for the Three Months Ended June 30, 2024 and 2023

Changes in Cash Flows for the Six Months Ended June 30, 2024 and 2023

4.4 Liquidity and Financial Position

2024 YTD Change in Net (debt)

Credit Facilities

Mantoverde Development Project Facility

Mantoverde Cost Overrun Facility ("COF")

Revolving Credit Facility

Working Capital Facilities

Hedging

Financial Capability

Outstanding Share Data and Dilution Calculation

Capital Management

4.5 Commitments

Royalty Agreements

Agreement with Osisko Bermuda Limited ("Osisko")

Agreement with Jetti Resources, LLC (“Jetti”)

Offtake agreements

Construction and other operating contracts

Other

Provisions

Minto Obligation

Precious Metal Streams

Cozamin Silver Stream

Santo Domingo Gold Stream

Purchase of Non-Controlling Interest from KORES

Off-Balance Sheet Arrangements

4.6 Transactions with Related Parties

4.7 Accounting Changes

Changes in Accounting Policies and Material Accounting Estimates and Judgments

New IFRS Pronouncements

4.8 Subsequent Event

5.0 NON-GAAP AND OTHER PERFORMANCE MEASURES

Breakdown of C1 Cash Costs and All-in Sustaining Cost Per Pound of Payable Copper Produced

Three Months Ended June 30, 2023

Six Months Ended June 30, 2024

Six Months Ended June 30, 2023

Reconciliation of Net (debt) / Net cash

Reconciliation of Attributable Net (debt) / Net cash

Reconciliation of Available Liquidity

Reconciliation of Adjusted Net Income (Loss) Attributable To Shareholders

Reconciliation of Adjusted EBITDA

Capstone Copper Corp. Interim / Quarterly Report 2024