Chapada Mine Copper Stream
Goiás State, Brazil
Yamana Gold www.yamana.com/English/Home/default.aspx
Copper Stream Agreement (Rate & Structure)
Base Rate: 3.7% referenced to copper production from the Chapada mine reducing to 1.5% for remaining life of mine after 75 million pounds delivered
Expansion Incentive Rate: Rate decreases to 2.65% in the event of a Chapada mine expansion
Acquired through a 100% Altius owned Canadian subsidiary
Payment guarantees at parent company and mine holding levels
|Anticipated per annum Stream Revenue||C$8-9 million|
|Annual production capacity||21-22 mt|
|Estimated Mine Life||17 years|
The Chapada mine is located in Goias state, Brazil and is a 21 to 22MTpa copper‐gold mine that began production in 2007. It is projected to produce 122‐125 million pounds of copper in 2016. Copper cash costs in 2016 are projected to be $1.32 per pound of copper on a co‐product basis. This places Chapada's costs in the lowest quartile of the current global copper cost curve.
Based on Altius' review of the project, Chapada's assumed mine life is approximately 17 years. Significant mine life upside potential exists if mineral resources are converted to mineral reserves and the copper interest is referenced to a 700 km land package that has delivered several recent discoveries and remains significantly under‐explored. Further details on Chapada can be found on Yamana's website.
The Chapada Copper Stream acquisition immediately increases annualized EBITDA to Altius by C$8‐$9 million while adding another long‐life mine to Altius' production roaylty portfolio. This new asset also enhances Altius' commodity diversity balance with base metals becoming the largest revenue generating component the portfolio.
Lawrence Winter, P.Geo., Vice President Exploration, is the qualified person as defined by NI 43-101 guidelines responsible for the technical data presented herein.