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Ccapstone MINING CORP NEWS RELEASE TSX : CS capstonemining.com July 27 , 2021 Capstone Generated Record Operating Cash Flow of $ 110 Million in Q2 2021 ; Net Cash Grows to $ 172 Million With Zero Drawn Long - Term Debt ( All amounts in US $ unless otherwise specified ) Vancouver , British Columbia - Capstone Mining Corp. ( " Capstone " or the " Company " ) ( TSX : CS ) today announced production and financial results for the three ( " Q2 2021 " ) and six months ended June 30 , 2021 ( " 2021 YTD " ) . Copper production totaled 43.3 million pounds at consolidated C1 cash costs¹ of $ 1.91 per payable pound of copper produced . Link HERE for Capstone's Q2 2021 management's discussion and analysis ( " MD & A ” ) and financial statements and HERE for the webcast presentation . Darren Pylot , President and CEO of Capstone commented , " This was a strong quarter with record copper production at Cozamin and completion of the majority of phase 2 PV3 Optimization work at Pinto Valley " . Mr. Pylot added , " We also published our 2020 Sustainability Report , which details our ESG - related programs and reaffirms our long - standing commitment to responsible mining practices . " Raman Randhawa , SVP & CFO added , “ Capstone has generated $ 205 million of operating cash flow² , so far in 2021 and with that , our net cash balance has increased to $ 172 million , plus we have an undrawn corporate revolver of $ 225 million . Cashing up at the forefront of our transformational growth phase will allow Capstone to execute on Santo Domingo and many other robust , high - impact projects " . OPERATIONAL & FINANCIAL OVERVIEW Net income of $ 49.4 million , or $ 0.12 per share and second quarter 2021. Adjusted net income of $ 68.7 million or $ 0.17 per share . • • Record operating cash flow before changes in working capital of $ 140.4 million . Q2 2021 Operating cash flow before changes in working capital¹ includes $ 30 million received from Wheaton Precious Metals Corp. ( " Wheaton " ) as part of the Santo Domingo precious metals purchase agreement ( " Gold Stream Agreement " ) . Operating cash flow before changes in working capital¹ , excluding the $ 30 million payment from Wheaton , of $ 110.4 million was the highest in Capstone's history , driven by production growth and record high copper prices . Net cash grew by $ 126.7 million to $ 171.5 million during Q2 2021 , inclusive of $ 30 million in proceeds from the Gold Stream Agreement . The balance sheet was significantly enhanced by solid operating performance and cash flow during Q2 2021 . • Record adjusted EBITDA¹ for Q2 2021 of $ 128.0 million . Q2 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 . • Cozamin Mine underground expansion completed with record quarterly copper production of 13.8 million pounds and attained targeted new run rate of 3,780 tonnes per day ( " tpd " ) . Q2 2021 production was 66 % higher than in Q2 2020 following commissioning of the Calicanto one - way ramp that increased underground mining rates by 41 % from Q2 2020. Q2 2020 results were impacted by a temporary reduction in mining activities as a result of the government mandated decree in response to the COVID- 19 pandemic . 1 This is an alternative performance measure ; please see " Alternative Performance Measures " at the end of this release . 2 Operating cash flow before changes in working capital for the six months ended June 30 , 2021 of $ 385 million , excluding upfront payments of $ 180 million from silver and gold streams is $ 205 million . Operating cash flow before changes in working capital is a non - gaap measure . 1