CAP (CAP) LCM Phase 5 Impact presentation summary

Geomechanical instability and operational response

• Geomechanical instability detected in Phase 5 pit wall in late September 2024 led to suspension of operations for safety reasons at the start of October 2024.

• An Independent Geomechanical Commission (IGC) with international experts was formed to evaluate the instability and risks of resuming operations.

• Extensive hydrogeological drilling, hydrochemical sampling, and installation of monitoring prisms were conducted to assess the situation.

• Updated structural and 3D models were developed, and alternatives for Phase 5 extraction were evaluated.

• The risk of resuming Phase 5 operations cannot be fully ruled out; further studies and lab tests are recommended.

Financial and production impact

• Suspension of Phase 5 is estimated to impact 2025 EBITDA by $30–40 million.

• Additional impact of $40–60 million for 2024 and 2025 was previously announced in October 2024.

• Production guidance for 2025 is revised downward to 15.0–15.5 mt from 15.5–16.0 mt.

• Cash cost guidance for 2025 remains unchanged at $52–57 per ton.

• Lower production volumes are expected for 2024 and 2025 due to the suspension.

Mitigation and next steps

• Option to advance processing of Phase 7 ore is being considered as a mitigation measure.

• Continued monitoring and further geotechnical studies are planned for July and August.