Cobre del Mayo is a Mexican copper mining company that operates the Piedras Verdes open-pit copper mine in Sonora, Mexico. The presentation provides an overview of the company, including its transformation of the mine into a stable, high-quality copper producing asset. It discusses the mine's competitive cash costs, extensive mineral reserves and resources, and track record of safety and environmental compliance. Additionally, it reviews industry factors like long-term copper price forecasts, the incentive price required for new mine development, and historical relationships between copper prices and global cash costs of production.

1. COBRE DEL MAYO
Investor Presentation
December 2013
1

2. Disclaimer
The following information contains or may be deemed to contain, “forward-looking statements”. By their nature, forward-looking
statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the
future. The future results of the Company may vary from the results expressed in, or implied by, the following forward-looking
statements, possibly to a material degree. Cobre del Mayo, S.A. de C.V. (“Cobre del Mayo”, “CDM”, or the “Company”) undertakes no
obligation to update or revise any forward-looking statements.
The information contained herein is solely the responsibility of the Company and has not been reviewed or authorized by the Mexican
National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores) (the “CNBV”).
By its acceptance hereof, each recipient agrees (1) that neither it nor its agents, representatives, directors, officers or employees will
copy, reproduce or distribute to others this document, in whole or in part, at any time without the prior written consent of the Company,
(2) that it will keep permanently confidential all information contained herein and any oral information provided in connection with this
document not already in the public domain and (3) that this document will be used by the recipient solely for the purpose of evaluating
an investment in the Company.
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3. Agenda
I.
Company Overview
4
II. Industry and Commodity Overview
12
III. Historical Financial Performance
16
IV. Conclusion
21
3
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3

4. I. Company Overview

5. Cobre del Mayo Snapshot
§ Cobre del Mayo is a Mexican mining company that operates the Piedras Verdes open-pit copper mine in Sonora,
Mexico.
§ Began commercial production in 2006 and operations stopped during 4Q08 due to low copper prices
§ Purchased by Invecture in mid 2009
§ Produces LME Grade A copper cathode and sells refractory and vein type ore for processing into concentrate
§ Third largest copper mine in Mexico as measured by production
§ Mineral resources of 1.7 million metric tons with estimated remaining mine life of 17+ years
Piedras Verdes Advantaged Location and Access:
n All infrastructure is in place
n Easily accessible by air, road, rail and ports
Deep Water Port
P
C
Sonora
Guaymas
Chihuahua
Baja
California
Ciudad
Obregon
Navojoa
Huatabampo
C
Piedras
Verdes Alamos
P
Private Airport
Commercial Airport
Railway
Rail Station
Major Highway
n Extremely competitive transportation costs for off-takers
given Piedras Verdes’ location and nearby infrastructure
n Power: Connected to CFE grid to the mine owned and
maintained substation with continuous capacity of 25
MW; CDM is CFE’s single largest customer in the area
n Water: CDM holds 16 titled water concessions with a
combined tested industrial water totaling ~8.1 Mm³/yr
while the requirement for the operation of the PV Mine
and flotation plant is ~5.5 Mm³/yr
Sinaloa
5
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6. Conversion of Piedras Verdes Mine to a Stable Operation
Key initiatives implemented by the new management:
§
Changed from contract mining to owner operation and purchased the former contractor’s equipment fleet
§
Purchased, re-engineered and installed a crushing, screening, conveying and stacking system
§
Conversion from Truck Dump Run of Mine to a primarily crush-conveyor stacked heap leach
§
Undertook the successful recharacterization and modeling of alternative styles of mineralization
§
Developed new mining and processing plans and implemented an effective ore quality and grade control
system
Monthly Production Evolution (kt)
3,000
2,500
2,000
Acquisi-on
by
Invecture
1,500
1,000
2009
2012
Sep
Jul
Aug
Jun
Apr
May
Mar
Jan
Feb
Dec
Oct
Nov
Sep
Jul
Aug
Jun
Apr
May
Mar
Jan
Feb
Dec
Oct
Nov
Sep
Jul
2011
Aug
Jun
Apr
May
Mar
Jan
2010
Feb
Dec
Oct
Nov
Sep
Jul
Aug
Jun
Apr
May
Mar
Jan
Feb
Dec
Oct
Nov
Sep
Jul
Aug
Jun
Apr
May
Mar
Jan
0
Feb
500
2013
6
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16
6

7. Cobre del Mayo Today
§ The PV Mine has been transformed into a high quality copper producing asset.
§ Since January 2012, Piedras Verdes has been operating on a sustained basis at its design capacity of 87 tpd of
copper cathode with strong EBITDA and cash flow generation
— LTM (09/30) Copper Production of 30,773 t generating US$247.3M of sales
— LTM EBITDA (09/30) of US$101.5M
— Strong credit metrics1:
•
•
Leverage is 2.12x Net Debt / LTM EBITDA (09/30)
Capitalization is 54.9% Debt / Total Capitalization
— Strip Ratio has declined from 3.2x in FY 2012 to 1.8x during 3Q’13
• Life of mine strip ratio is scheduled at 0.9x
Cu Cathode Production2 (kt) and Sales (US$M)
EBITDA (US$M) and Margin (%)
253.0
25.0
20.0
15.0
78.2
67.3
10.0
5.0
0.0
2010
2011
2012
Cathode (kt)
1.
2.
LTM 9/30
9M'13
3Q13
80.0
60.0
90.0
197.6
100.0
40.0
20.0
0.0
197.7
225.0
45.0
30.0
120.0
135.0
238.2
270.0
180.0
35.0
0.0
44.4%
33.2%
105.7
49.0%
39.5%
37.7%
101.5
42.0%
35.0%
78.1
28.0%
65.6
21.0%
14.0%
26.0
25.4
7.0%
0.0%
2010
2011
2012
LTM 9/30
9M'13
3Q13
Sales
Considering total debt of $225.0M (interest rate of 10.75%/yr, YTM 11.0%) and $10.0M of Cash and Equivalents.
Does not include copper contained in ore sold for concentrate
COBRE DEL MAYO
33.2%
40.1%
13
7
7

8. Declining Cash Cost Driven By Low Risk Operations and Processes
§ Over US$225.0M in capex has
been invested since 200 with
limited maintenance capex going
forward
§ Ore is processed selectively
according to grade, rock type and
other characteristics by the most
efficient of three processes:
Ore for
Flotation
— ROM heap leach
— Crushed ore heap leach
— Sale of ore for concentration
§ Result is an increase in both
production per unit mined and
significant reduction in cash costs
— During 9M’13, cash costs of US
$1.81/lb
— Ore sales to Kupari Metals,
have enabled a reduction in
cash costs to $1.62/lb in 3Q’13
Historical Cash Cost (US$/lb)
4.00
3.00
3.63
2.69
2.00
2.08
1.91
1.81
1.62
2012
LTM 9/30
9M'13
3Q13
1.00
0.00
2010
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2011
16
8
8

9. Competitive Cash Cost Profile
2013 Estimate Global Copper C1 Cash Cost Curve
350
Including By-Product Credits Quartiles
>$1.23/lb
>$1.58/lb
C1 Cash Cost c/lb
250
>$2.06/lb
CDM 9M’13 = $1.81
CDM 3Q’ 13 = $1.62
150
50
-50
Cumulative Production
Source: Wood Mackenzie
9
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9

10. Extensive Mine Life Supported by High Quality Reserve and Resource Base
§
Since the acquisition of CDM by Invecture, total mineral resources have increased 110% to over 685 million
Mt and CDM’s mine life has extended from less than 9 years to over 17 years
§
Management has significantly increased mineral resource estimates based on successful exploration and
drilling programs
§
Overall pit shape used to define the minable resources is based on a $2.50/lb copper price
Mine Plan & Resource Evolution (Total Cu, Mt)
Summary of Estimated Mineral Reserves and Resources
1,713
1,800
1,600
Ore (kt)
1,400
Estimated Reserves
Grade (%)
Total Copper (t)
Estimated Reserves (proven
and probable)…………………………………………………………………………………………
477,778
0.260
1,241,708
1,242
1,200
1,000
800
Resources
Grade (%)
Total Copper (t)
600
Ore (kt)
400
Measured……………………………………
210,738
0.264
557,000
200
Indicated…………………………………….
326,205
0.243
793,404
Total Measured
and Indicated………………………………………0.251
536,943
1,350,404
0
Mar. '08
Dec. '09
Reserves
Dec. '11
Sep. '12 /
Current
Inferred……………………………………
147,658
Total Resources………………………
684,601
Resources
0.246
0.250
362,638
1,713,042
10
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10

11. Strong Track Record of Safety, Environmental and Labor Relations
§ Safety, Environmental compliance and Labor relations are key areas of focus of CDM
§ Since current management took control of the operation, Piedras Verdes has had a solid safety track
record
— CDM pays the lowest premium for “Riesgo de Trabajo” (worker risk) as classified by IMSS, demonstrating
the safety standards at CDM
§ CDM has obtained all necessary permits for the construction and operation of the mine
§ Piedras Verdes complies with all applicable environmental standards that are among the world’s most
advanced
§ Labor relations:
— Large pool of nearby qualified labor from Navojoa and Alamos
— Approx. 342 of our 853 employees are represented by the Confederación de Trabajadores de Mexico
(“CTM”) which is one of Mexico’s largest unions characterized by constructive and open approach towards
labor relations (unlike SNTMMSSRM)
— No work stoppages in the history of the Piedras Verdes Mine
§ Certified as a Socially Responsible company by the Mexican Center for Philanthropy (Centro Mexicano
para la Filantropía) and certified as a Clean Industry by the Mexican Federal Attorney for Environmental
Protection (Procuraduría Federal de Protección al Ambiente), the enforcement arm of the Mexican
environmental ministry
11
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11

12. II. Industry and Commodity Overview

13. Copper Price Forecasts Over Time
n The market has consistently underestimated the copper price when forecasting long term
4.50
4.00
Copper Price (US$ / lb Cu)
2010
3.50
Actual
2011
2009
2013 LT
3.00
2012
2011 LT
2008
2.50
2012 LT
2010 LT
2009 LT
2.00
2008 LT
2007 LT
1.50
2006 LT
1.00
2000 LT
2001 LT 2002 LT 2003 LT 2004 LT 2005 LT
0.50
Actual Copper Price
Broker Consensus (as forecast during Q4 of year indicated)
Long Term Price (as forecast during Q4 of year indicated)(1)
-2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Source: Broker Research, Bloomberg.
(1) Except 2013, where forecasts are as of 24 October 2013.
(1) Except 2013, where forecasts are as of 19 August 2013
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Jefferies LLC/ August 2013
32
i
13

14. Incentive Price Drives the Value of Copper
§ The incentive price required to justify investments in the expansion of existing mines and the construction of
new ones is estimated at US$3.23/lb (US$7,117/t)
̶
Incentive price considers required Cu price to achieve specified rate of return on expansion capex
§ Although short term copper prices are unpredictable, according to the chart below, copper must ultimately
trade above US$3.23/lb for global mine copper supply to be maintained
6,000
Relincho
Andina
Galeno
Aynak
Cobre Panama
Encuentro
Esperanza Sur
Caserones
75th Percentile: $8,242/t
(US$3.74/lb)
50th Percentile: $7,117/t
(US$3.23/lb)
25th
Percentile: $6,317/t
(US$2.87/lb)
5,000
Constancia
Cerro Verde
Toromocho
Quellaveco
Wafi Golpu
Oyu Tolgoi
Los Bronces
Haquira
Chuquicamata
7,000
Resolution
8,000
Sierra Gorda
9,000
Pebble
10,000
Radomiro Tomic
Escondida
11,000
Sentinel
Buenavista SX/EW
Incentive Price for 15% Risk Adjsuted IRR (US$/t)
12,000
Quebrada Blanca
Incentive Prices for Major Projects
4,000
3,000
2,000
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Cumulative Production (kt/a)
Source: Wood Mackenzie, Goldman Sachs Global Investment Research , LME.
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Jefferies LLC/ August 2013
14

15. Cu Pricing Considerations
n Copper has traded in the market at a premium to the 90th percentile of the C1 cash cost curve
̶
C1 cash cost (direct cash cost) as estimated by Wood Mackenzie
C1 90th Percentile Costs vs. Cu Price (1)
5.00
4.50
4.00
4.00
3.50
3.61
3.42
3.17
3.00
2.50
2.57
2.55
2011
2012
2.00
1.67
1.50
1.00
2.39
1.62
1.11
0.50
0.00
2005
2010
C1 90th Percentile
2013YTD
Average LME Cu Price (High, Low)
Source: Wood Mackenzie, LME.
(1) 90th percentile as estimated by Wood Mackenzie. LME prices for 2013 YTD through October 10, 2013.
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Jefferies LLC/ August 2013
15

16. III. Historical Financial Performance

17. Summary Historical Financials
Sales (US$M) and Realized Cu Price ($/lb)
3.91
300.0
4.00
3.57
250.0
3.28
238.2
200.0
3.39
253.0
3.34
3.50
3.21
140.0
3.00
197.6
80.0
2.50
197.7
100.0
134.0
131.1
125.9
60.0
83.5
40.0
78.2
2.00
67.3
0.0
1.50
2010
2011
2012
LTM
9/30
9M'13
31.7
20.0
0.0
2010
3Q13
Cash Costs (US$/lb)
2011
2012
120.0
44.4%
100.0
3.63
105.7
33.2%
3.00
2.50
3Q13
33.2%
40.1%
49.0%
39.5%
101.5
37.7%
60.0
1.91
1.81
1.62
28.0%
65.6
21.0%
40.0
14.0%
1.00
20.0
0.50
0.00
26.0
25.4
0.0
2010
2011
2012
LTM 9/30
9M'13
3Q13
34
7.0%
0.0%
2010
2011
1. Production Costs include mining costs, crushing costs, high grade system costs, processing costs and other production costs.
COBRE DEL MAYO
42.0%
35.0%
78.1
2.08
1.50
9M'13
80.0
2.69
2.00
LTM 9/30
EBITDA (US$M) and Margin (%)
4.00
3.50
130.8
120.0
100.0
150.0
50.0
Production Costs1 (US$M)
2012 LTM 9/30 9M'13
3Q13
17
17

18. Summary Historical Financials (cont’d)
Capital Expenditures (US$M)
EBITDA less Capex (US$M)
80.0
80.0
70.0
75.7
74.3
60.0
60.0
40.0
50.0
30.0
(20.0)
16.1
10.0
12.9
0.0
32.7
31.4
20.0
45.4
20.0
47.3
40.0
54.2
49.5
12.5
(40.0)
3Q13
2010
2011
2012
LTM 9/30
9M'13
3Q13
(60.0)
(49.7)
0.0
2010
2011
2012
LTM 9/30
9M'13
18
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18

19. Ample Liquidity to Withstand a Downturn
n We expect the PV Mine to continue to generate positive EBITDA should there be a commodity
price disruption
CDM Changes in Realized Cu Price (US$/lb)
3Q13 Sales
(US$M)
3Q13 EBITDA
(US$M)
+ 0.50
$79.4
$37.5
+ 0.40
$77.0
$35.0
+ 0.30
$74.6
$32.6
+ 0.20
$72.2
$30.2
+ 0.10
$69.8
$27.8
$3.21
$67.3
$25.4
-0.10
$64.9
$22.9
-0.20
$62.5
$20.5
-0.30
$60.0
$18.1
-0.40
$57.6
$15.6
-0.50
$55.2
$13.2
Notes:
(1) Assumes historical 3Q 2013 performance and excludes hedging
(2) Base average sale price of CDM Copper product
19
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19

20. Conservative Financial Policies
§ Hedge: Entered into a 12 month forward sale agreement in June 2013
— 2,400 t per month from July 2013 through June 2014 (approximately 92% of the total copper cathode
production)
— Fixed price of $7,089/t (approximately $3.22/lb)
— Cash settlement, no margin
§
Operations are all primarily exposed to the U.S. Dollar
§
Given limited capex program and no planned dividends, CDM is expecting to reduce leverage on a net
basis
— US$100.0M unsecured committed credit line with Banco Azteca
— Available through 2021
— Rate: Libor + 6.50%
§
Insurance policy coverage for commercial loss / operational stoppage
— Policy underwritten by Allianz with general coverage of between US$130.0M to US$200.0M for losses
from business interruption / stoppage
20
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20

21. VI. Conclusion

22. Conclusion
Strong cash flow,
modest leverage,
low capex
commitments and
ample liquidity
Stable operation
led by experienced
management team
with proven
industry track
record
COBRE DEL MAYO
Proven operating
methods to
maximize recovery
rates and minimize
cash costs
www.cobredelmayo.com
Long life asset in
favorable
jurisdiction and
fully developed
infrastructure
C1 cash costs in
the 65th percentile
of global industry
Declining cash
costs driven by
lower strip ratios
and continuous
operational
improvements
22
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22