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Сcapstone MINING CORP April 27 , 2021 NEWS RELEASE TSX : CS capstonemining.com Capstone Achieved Record Operating Cash Flow of $ 95 million in Q1 2021 and is Now Debt Free ( All amounts in US $ unless otherwise specified ) Vancouver , British Columbia - Capstone Mining Corp. ( " Capstone " or the " Company " ) ( TSX : CS ) announces its production and financial results for the three months ( " Q1 2021 " ) ended March 31 , 2021. Copper production totaled 47.8 million pounds of copper at consolidated C1 cash costs¹ of $ 1.70 per payable pound produced . Link HERE for Capstone's Q1 2021 management's discussion and analysis ( " MD & A ” ) and financial statements and HERE for the webcast presentation . " Q1 2021 operating cash flow² of $ 95 million was the strongest in our fifteen - year history as a producer . Excellent operating performance and cost containment in a higher copper price environment surpassed our expectations " said Darren Pylot , President and CEO of Capstone . " We are now debt free³ and generating cash flow as a mid- cap company with a peer - leading 100 % growth plan over the next three years . " Raman Randhawa , SVP & CFO , added " Capstone's robust balance sheet position plus strong operating cash flow generation enable us to advance multiple high return projects like Eriez HydroFloat at Pinto Valley , paste backfill and dry stack tailings at Cozamin , and our transformational , fully permitted , greenfield project at Santo Domingo in Chile . We are on track to announce the Santo Domingo ownership structure and finance plan by mid- year . " OPERATIONAL AND FINANCIAL OVERVIEW • • • • Q1 2021 net income of $ 127.0 million , or $ 0.25 per share and Q1 2021 adjusted net income¹ of $ 64.4 million or $ 0.16 per share . Net income includes $ 92.4 million impairment reversal on mineral properties related to Santo Domingo which is excluded from adjusted net income¹ . Capstone reports record operating cash flow before changes in working capital ' , with zero long - term debt and in a net cash¹ position as at March 31 , 2021. Q1 2021 operating cash flow before working capital of $ 245.0 million , which includes $ 150 million received from Wheaton Precious Metals Corp. ( " Wheaton " ) as part of the Cozamin Silver Streaming Agreement . Operating cash flow before working capital1 excluding the $ 150 million payment from Wheaton of $ 95 million was the highest in Capstone's history , driven by strong first quarter sales of 49.2 million pounds of copper at a realized copper price of $ 4.12 per pound and C1 cash costs¹ of $ 1.70 per pound . Record Adjusted EBITDA¹ for Q1 2021 of $ 118.7 million . Q1 2021 adjusted EBITDA1 is reflective of Capstone's strong operational performance and financial leverage of the Company's EBITDA¹ in a robust copper price environment , as well as lower C1 cash costs¹ . For context , Q1 2021 adjusted EBITDA¹ of $ 118.7 million is within 18 % of the full year 2020 adjusted EBITDA¹ of $ 139.2 million and higher than 2019 annual adjusted EBITDA of $ 96.4 million . This further demonstrates the growth in production at Capstone as a result of our 2020 capital reinvestments . Strong Q1 2021 copper production of 47.8 million pounds at C1 cash costs¹ of $ 1.70 per payable pound of copper produced . Production has started the year at a level which exceeds the high - end range of our 2021 guidance ( 175-190 million pounds on an annual basis ) , and C1 cash costs¹ were below the low end of annual guidance of $ 1.75- $ 1.90 per payable pound produced . 1 This is an alternative performance measure ; please see " Alternative Performance Measures " at the end of this release . 2 Operating cash flow before change in working capital of $ 245 million minus stream proceeds of $ 150 million . 3 Debt Free is in reference to zero long term debt balance on the financial statements ending March 31 , 2021 . 1