Mana
agement Discu
ussion and An
nalysis for the three monthss ended March
h 31, 2013
(Exp
pressed in U.S.. Dollars)
Dated: Ma
ay 8, 2013
For further information
i
on
n the Company
y reference shou
uld be made too the Companyy’s public filinggs which are avvailable
on SEDAR
R at www.sedaar.com. Inform
mation is also available at thhe Company’ss website www
w.coromining.ccom. In
addition, reference should
d be made to the risk factorrs section of thhe most recenntly filed Annuual Informationn Form
(“AIF”) or the
t Company’ss audited and consolidated fin
nancial statemeents for the yeaar ended Decem
mber 31, 2012..
The followiing information
n is prepared in
i accordance with Internatioonal Financiall Reporting Staandards (“IFRS
S”) and
denominated
d in United Sttates dollars, unless
u
otherwise noted. Thiss MD&A shouuld be read in conjunction w
with the
Company’s unaudited finaancial statemen
nts for the threee months endedd March 31, 20013.
This MD&A
A may contain forward lookiing statements based on assuumptions and juudgments of m
management regarding
events or reesults that may
y prove to be inaccurate as a result of expploration or otther risk factorrs beyond its ccontrol.
Actual resullts may differ materially
m
from
m the expected results.
Ta
able of Conten
nts:
1
PR
ROFILE AND STRATEGY .................................................................................................................................2
2
PR
ROJECTS UPD
DATE .............................................................................................................................................3
3
OU
UTLOOK...............................................................................................................................................................8
4
Q1 2013 FINANCIAL POSITION REVIEW
W .......................................................................................................9
5
Q1 2013 EXPEN
NDITURES RE
EVIEW .................................................................................................................11
6
RIS
SKS AND CR
RITICAL ACC
COUNTING ESTIMATES
E
& POLICIES
S .......................................................13
7
SU
UMMARY OF FINANCIAL
L PERFORMA
ANCE AND F
FINANCIAL P
POSITION .....................................16 Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 1
1
PROF
FILE AND ST
TRATEGY
1.1
Prrofile and Stra
ategy
Coro Miniing Corp. (thee “Company” or “Coro”) iss an exploratioon/developmennt stage mininng company thhat was
incorporateed in 2004 and
d is listed on th
he Toronto Sto
ock Exchange,, under the sym
mbol “COP”. As of April 30, 2013
the Compaany had 138,29
93,934 shares outstanding
o
and
d a market capiitalization of C
CA$27.7 millioon. The Company has
its registered corporate office in Vancou
uver, Canada.
Coro’s dev
velopment and
d exploration portfolio
p
in Ch
hile includes thhe Berta (sectioon 2.2), El Deesesperado (“E
El Des”)
(section 2.3
3), Payen (secttion 2.4) projeccts. In Mendozza, Argentina itt is advancing iits San Jorge pproject (sectionn 2.5).
Coro was founded with the
t goal of bu
uilding a minin
ng company fo cused on mediium-sized basee and preciouss metals
deposits in
n Latin America. It intends to
o achieve this goal
g through thhe exploration for, and acquissition of, projeects that
can be dev
veloped and plaaced into produ
uction. The Company’s
C
straategy is to becoome a mid-tierr producer and intends
to do this by
b identifying,, securing and developing resources that arre located in aareas with estabblished infrastrructure.
To minimiize political an
nd execution risks associated with its strateegy, Coro intennds to focus its efforts in politically
stable coun
ntries.
The Board
d of Directorss is comprised
d of three Ind
dependent Direectors, one Ouutside Director and two Exxecutive
Directors. The Board is chaired by Ro
obert Watts, an
n Independent Director with over 40 yearss of experiencee in the
mining ind
dustry. The Boaard has significcant experience in the fields of exploration, accounting & finance, miniing law,
and mining operations. The Outside Director
D
represents the Com
mpany’s majorr shareholder B
Benton Capitaal Corp.
(“Benton”)), Benton holdss 42% of the ou
utstanding shares of the Com
mpany. Alan Sttephens is the P
President and C
CEO of
the Compaany and has oveer 37 years of international
i
mining
m
experiennce including iin Latin Ameriica.
1.2
Go
oing Concern
The financcial statements and the Management Discusssion and Anallysis have beenn prepared usinng IFRS appliccable to
a going co
oncern, which contemplates the realization
n of assets andd settlement off liabilities in the normal coourse of
business. For
F the three months
m
ended March
M
31, 2013
3, the Companyy reported a losss of $1.4 million and as at thhat date
had cash an
nd cash equivaalents of $0.5 million,
m
net wo
orking capital bbalance of $0.33 million and aan accumulatedd deficit
of $26.6 million.
m
The Co
ompany also haas property pay
yments due on certain propertties (section 4..4). The Company has
a number of
o financing altternatives avaiilable to it. Th
he Company annticipates receiiving $2 millioon from the sale of the
Chacay pro
operty in May 2013, with a fu
urther $0.5 milllion to later inn 2013. The Coompany is also pursuing a num
mber of
additional financing alterrnatives, includ
ding joint ventu
uring some of iits properties.
The Comp
pany’s ability to
o continue as a going concern
n is dependentt upon its abilitty to obtain addditional fundinng from
loans, equity financings or through otther arrangemeents. The succcess of such innitiatives cannnot be assured. These
conditions and events casst significant doubt
d
on the validity of the gooing concern asssumption.
These conssolidated finan
ncial statementts do not reflecct the adjustmeents to the carrrying values of assets and liaabilities
and the reeported expen
nses and balan
nce sheet classifications thaat would be nnecessary werre the going cconcern
assumption
n deemed to bee inappropriate. These adjustm
ments could bee material.
The Comp
pany’s working
g capital requirrements for th
he next twelve months will bbe determined by the successs of its
exploration
n programs in Chile, its deveelopment projeects, Berta andd San Jorge, annd the availabiility of financing, and
therefore itt is difficult to determine the Company’s ex
xact working caapital requirem
ments.
Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 2
2
PR
ROJECTS UP
PDATE
2.1 Overview

Announced Partner on Berta (May
y 2013)

Agreeed to terms on Chacay dispossition (Apr 2013)

Amen
nded terms on Berta
B
Agreemeent (Apr 2013)

Sale of
o Chacay prop
perty, subject to
o title due dilig
gence (Feb 20113)

El Incca option termiinated (Jan 201
13)
2.2
2 Berta Pro
operty, Chile
The
T Berta Pro
operty (sectionn 4.4), which is a 506 hectare property located
approximately
a
20km west off the village oof Inca de Oroo in the III Reegion of
Chile,
C
at an eleevation of 1,7000m. The Com
mpany has alsoo acquired by staking
additional
a
grou
und surroundinng and overlayiing the Berta property.
In
I May, the Company annnounced a Leetter of Intentt with ProPippe S.A.
(“ProPipe”)
(
(“P
ProPipe LOI”)) whereby ProP
Pipe could earnn up to a 50% interest
in
i the project by
b completingg various milesstones on the pproject (refer tto news
release
r
dated May
M 8, 2013)). A summarry of the earnn-in thresholdss are as
follows:
f
- An initial
i
10 % intterest by makin
ng the option payment
p
due inn June 2013 (seection 4.4);
- an additional
a
3% by
b filing an En
nvironmental Im
mpact Declarattion (“EID”) byy July 30, 20133;
- an additional
a
5% by
b completing a Preliminary Economic Asssessment (“PEA
A”) by Septem
mber 30, 2013;
- up to
t additional up
p to 32% by arranging
a
projeect financing foor up to 100% of the total prroject costs (inncluding
an overrun
o
facility
y).
Table 2: ($0
000’s)
Berta Expeenditures
Engineering
g
Environmen
ntal
Geology
Misc. development costs
Property acq
quisition
Share-based
d compensation
Deferred Costs
C
Berta
Berta Expeenditures
All Costs on
n Berta Prior to
o January 1, 20113 were
expensed – ref
efer above
200
48
86
164
44
41 2,004
7822
351
Q1113
Costs Capitalized
Effective Jan 1, 2013
Consult, lab
b & prof.
Drilling & trenching
t
General & admin
a
costs
Property inv
vestigation
Property acq
quisition
Travel & acccommodation
Total explo
oration costs
Qu
uarterly
Q211 Q31
11 Q411 Q11
12 Q212 Q3122 Q412
Expensed Ex
xpenditures (up
p to December 331, 2012)
5
3
88
8
163
15 3
204
40
09
27
77
873
5344
65
4
2
9
5
1
67
6
157
70
7
151
75
59
200
1
800
4
8
15
1
3
22
200
48
86
164
44
41 2,004
7822
351
26
1113
74
8
2221
2221
2011
YT
TD
2012
-
88
277
2
70
4
441
-
441
2013
LTD
616
2,158
21
579
1,001
53
4,428
26
113
74
8
221
221
26
113
74
8
221
4,649
E
Expenditure:
Previous Exploration
Consulting
g, labour and professional
p
feees in 2012 (Q
Q1, Q2 and Q33) relate to costs associated with overseeing drill
programs. Included in Q4 2012 is $91,000 in costts for the Nattional Instrumeent 43-101 (“N
NI 43-101”) resource
estimate an
nd initial engin
neering work in
ncluding work on the EID andd Environmenttal Baseline Sttudies.
Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 3
The NI 43-101 complian
nt resource estiimate for Bertaa Sur indicatedd that at a $3.000/lb copper pprice, the optim
mum pit
was determ
mined to contaain 6,101,000tt at a grade off 0.40%CuT aand a strip ratiio of 0.04:1. A
An upside case pit at
$3.825/lb Cu
C contained 9,687,000t
9
at 0.34%CuT
0
and
d a strip ratio oof 0.16:1. For full details of the resource eestimate
reference should be made
m
to the ProPipe NI 43-101 Technnical Report available on www.sedar.ccom or
www.corom
mining.com
Drilling an
nd trenching in
n Q4 2012 prin
ncipally relate to
t the costs off sampling som
me existing trennches on the prroperty.
Drilling co
osts include th
he cost of a Ph
hase III, 36 ho
ole (4,028m) innfill reverse ciirculation (“RC
C”) drill progrram the
results of which
w
were ann
nounced in Sep
ptember 2012. March 2012 iincluded 32 hooles (10,520m of RC drilling) aimed
at testing a number of taargets outlined
d by mapping and
a the Induceed Polarizationn (“IP”) surveyy. Q3 2011 coosts for
drilling rellate to a 24 hole (4,360m RC drill program)). The drill resuults included a highlight interrcept of 200 m
metres at
0.70% cop
pper equivalentt. For full ressults of this drrill program reeference shouldd be made to the Company’’s news
release datted September 27, 2011.
Included within
w
property
y investigation costs are the assay costs asssociated with the aforementtioned drill proograms.
Also inclu
uded in Q4 2011 property in
nvestigation co
osts are the coosts of a grid cchemistry sam
mpling program
m, an IP
survey and
d initial recon
nnaissance maapping program
m. Q1 2012 pproperty invesstigation costs include topoographic
surveying and grid layou
ut work. The costs in Q4 20
012 include thhe costs of thee metallurgicall testwork. Thhe Berta
preliminary
y metallurgicall test work resu
ults demonstraated that the oxxide material m
may have rapid heap leach reccoveries
in excess of theoretical percent solubility due to th
he presence off significant coopper wad whhich is solublee in the
reducing, ferrous
f
sulphatte rich conditio
ons of the colum
mn, but which did not report to the %CuS hhead assay.
The properrty acquisition cost in Q2 20
011 relates to th
he first option payment due uupon signing tthe agreement and the
$800,000 in
i Q2 2012 relaates to the seco
ond option paym
ment (section 44.4).
Developm
ment Costs:
In Q1 2013
3, the principall costs on the project
p
were rellated to geologgy, as the Comppany completeed and filed thee NI 43101 technical report for the
t initial resource at Berta Sur.
S
The Com
mpany also conntinued to evaluuate the Berta Central
area which
h has potential to
t add more reesources to the project .
Misc. deveelopment costss include an alllocation of cossts from our Saantiago office and our allocaation of time frrom our
Vice Presiident of Development. Under the terms of
o the ProPipe LOI it is anticcipated that a majority of thhe costs
associated with advancin
ng Berta going forward will be borne by ProoPipe.
2.3 El Dessesperado, Ch
hile
The 698 heectare property
y is located app
proximately 7k
km northwest oof the city of Calama, in the III Region of Chhile and
immediately west of thee Toki Clusterr of porphyry copper deposiits currently b eing developeed by Codelco. These
include thee major Toki, Quetena,
Q
Geno
oveva and Opaache deposits, eeach containinng several hunddred million toonnes of
copper oxide resources, grading
g
0.4-0.5
5%Cu.
Table 3: ($0
000’s)
El Des Expenditures
Consult, lab
b & prof.
Drilling & trenching
t
General & admin
a
costs
Property inv
vestigation
Property acq
quisition
Travel & acccommodation
Total explo
oration costs
Quarterly
Q211 Q311
Q
Q411 Q112
Q
Q212 Q
Q312 Q412 Q
Q113
10
68
51
5
19
300
1
1
30
19
5
40
38
200
500
5
19
6
230
24
39
428
596
Q1 2013 MD&A (expressed in U.S. Dollars)
YTD
2011 2012
30
- 200
- 230
TSX Symbol: COP
2013
51
1
38
500
6
596
LTD
129
324
2
132
700
25
1,318
Page| 4
Conssulting, labour and professioonal fees in Q44 2012 and Q
Q1 2013
include a cost alloccation of the tim
me of our geological team inn Chile.
Drilliing costs in Q44 2012 relate too an initial 8 hhole (2,308m) R
RC drill
progrram that includded intercepts of 88m @ 0.771%CuT and 32m @
0.99%
% CuT encounntered in CED
D R-4 in EL D
Des Norte. Thee initial
drill program wass designed too demonstratee the presence of a
porph
hyry copper ssystem withinn the very larrge prospectivve area
identified from surrface work. Thhe presence off the attractivee grades
and thicknesses
t
in CED R-4 toggether with reemnant copper oxides
and anomalous
a
leacched cap assayys in other holees, combined w
with our
samp
pling and mappping, indicate tthat the EL Dees Norte target has the
poten
ntial to host a ssignificant porpphyry copper ddeposit.
Q1 2012
2
relate to topographic suurveying and ggrid layout woork, the
Q2 2012
2
costs relaate to a geophhysical surveyy, the Q3 2012 costs
relatee to a ground magnetic survvey over the eentire propertyy and a
geolo
ogical mappingg and geochem
mical samplingg of the north sector.
The Q4
Q 2012 propeerty investigatiion costs incluude assay costs related
to the aforrementioned drill
d
program, Q1 2013 Prop
perty investigaation costs include surveyingg costs to assiist with
detailed geeological mapp
ping and sampling.
The properrty acquisition costs relates to
o the initial paayment due on signing of the option agreem
ment in Februarry 2012
(section 4.4
4). In Q1 2013
3, the Company
y made its seco
ond payment oof $0.5 million for El Des.
2.4 Payen
n, Chile
The 1,225 hectare Properrty is located approximately
a
90km NNE off La Serena, 4kkm W
of the Pan
n-American Highway and approximately
a
47km from thhe coast, in thhe III
Region of Chile, at an eleevation of 1,10
00m.
CM Viento
o Norte, a private Chilean company
c
drilleed 11 diamondd drill holes inn late
2011 - eaarly 2012, alll of which in
ntersected porrphyry style m
mineralization.. The
highlights of that drill prrogram includeed intersectionss of 138m at 00.38%CuT + 00.17g/t
Au (0.47%
%CuEq), startting at surfacce, and 104m
m at 0.37%C
CuT + 0.24g//t Au
(0.50%CuE
Eq), from 88m
m.
Although Coro
C
is in posssession of the assay certificattes, drill logs, drill core and assay
pulps, it is unaware if any
y QA/QC proccedures were carried out, andd has no inform
mation
on chain of
o custody forr the sampling
g. Therefore, while
w
Coro bellieves that thee core
sampling and assaying was carried out in a proffessional mannner by a com
mpany
independen
nt of the underrlying owner off the property, and assays aree consistent wiith the
mineralization seen in the
t drill core, these results should be trreated as histoorical and nott be relied uppon for
compliancee with NI 43-101 standards.
Table 4: ($0
000’s)
Payen Expeenditures
Consult, lab
b & prof.
Drilling & trenching
t
General & admin
a
costs
Property inv
vestigation
Property acq
quisition
Travel & acccommodation
Total explo
oration costs
Quarterly
Q211 Q311
Q
Q411 Q112
Q
Q212 Q
Q312 Q412 Q
Q113
15
35
8
61
42
500
8
6
584
91
YTD
2011 2012
-
2013
35
8
42
6
91
LTD
50
8
103
500
14
675
Consulting
g, labour and professional fees
f
in Q4 2012 and Q1 20013 include a cost allocatioon of the timee of our
geological team in Chilee. Property in
nvestigation in
n Q4 2012 inclludes costs associated with extending an existing
ground maagnetics survey
y and surveyin
ng costs. The Q1 2013 costss include surveeying costs to assist with geeological
Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 5
mapping and
a sampling. The
T property acquisition
a
pay
yment relates to the initial paayment due onn signing of thee option
agreement in October 2012 (section 4.4
4).
2.5 San Jo
orge, Argentin
na
In Argentiina, the Comp
pany is curren
ntly advancing
g the San Jorgge porphyry ccopper-gold deposit, locatedd in the
Province of
o Mendoza. Th
he Company filed
f
an updateed Environmennt Impact Studyy (“EIS”) (Julyy 2012) to incoorporate
the railway
y envisaged in
n the March 2012 Preliminaary Feasibility Study (“PFS””- refer to tablle 6) on the S
San Juan
Copper Leeach Project (“S
San Juan Projeect”), which inv
volves the connstruction of ann SX/EW heap leach operatioon in the
neighborin
ng province of San Juan. Prio
or to our decision to advance the San Juan P
Project, the Proovincial Legisllature of
Mendoza, on August 24,, 2011, had votted against ratiifying the Com
mpany’s EID fo
for a float onlyy project (refer to table
6) in Mend
doza that had been
b
approved by
b the Governm
ment on Menddoza in Februarry 2011.
Coro has completed
c
a leg
gal review of the
t process thaat led to the “nno” ratificationn vote and beliieves it has groounds to
file suit ag
gainst the Mend
doza governmeent and certain individuals innvolved in the pprocess, as thee vote took placce in the
run-up to the
t provincial elections, with
hout the conclu
usions of the leegislature’s coommissions whho had spent a number
of months evaluating th
he EID, and more
m
pertinently
y, the validityy of the proceess which led to its approvaal, being
considered
d.
Law 7722 that prohibits the
t use of sulph
huric acid in Mendoza
M
and reequired the ratiification of thee EID for the flloat only
project hass been subject to
t legal challen
nges of its constitutionality bby Coro and sevveral other parrties since its innception
in 2007. Coro
C
expects th
hat if the legal challenges to Law 7722 aree favourably reesolved, Law 77722 could be ddeclared
unconstituttional, which could
c
result in the
t removal off the ratificatio n requirement of the Companny’s approved EID for
the float on
nly project and
d the removal of
o the prohibitio
on against the uuse of sulphuriic acid in the P
Province of Meendoza.
Notwithstaanding, the Com
mpany continu
ues to advance the developmeent of its San JJuan Copper Leeach Project duue to the
uncertain political
p
enviro
onment in the Province
P
of Meendoza.
The follow
wing table summ
marizes the eco
onomic studiess undertaken too date on San JJorge;
Table 6: Sa
an Jorge Econom
mic Evaluations
Base Case (NPV10%)
Average Caash Costs (Years 1 to 5)
Average Pro
oduction
(Years 1 to 5)
Mine Life
Initial CAPE
EX
Prepared By
y
Report Typee
Refer Newss Released Dated
d
Pre-tax
P
NPV
Pre-tax
P
IRR
After-tax
A
NPV
After-tax
A
IRR
Price
P
Deck
Before
B
Credits
After
A
Credits
Copper
C
(tonnes)
Gold
G
(ounces)
San Juaan-Leach
Only
$260m
41%
$133m
29%
$2.880/lb Cu
$1.26
$1.26
25,000
n/a
10
$184
PR
ROPIPE
PFS
Marr 5, 2012
Mendoza-Mend
dozaFloat Onlyy
Leach Only
$291m
m
$1159m
31%
%
28%
$82m
m
$$77m
18%
%
20%
$1.65/lb Cu annd $600/oz gold
$0.911
$$0.90
$0.699
$$0.55
51,0000
244,000
42,0000
n/a
166
10
$277m
m
$1162m
G
GRD MINPROC
C
AUSEN
NCO
PEA
A
PFS Stanndard
April 22, 20088
April 3, 2008
The Company capitalizess it costs associiated with San Jorge as summ
marised below::
Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 6
Table 7: ($0
000’s)
San Jorge Expenditures
E
Engineering
g
Environmen
ntal & permitting
g
Geology
Misc. development costs
Property acq
quisition costs
Share based
d payments
Total costs capitalized
Quarterly
Q211 Q311 Q411 Q112 Q212 Q312 Q412
12
90
242
100
101
56
42
236
222
174
56
129
81
89
19
28
117
59
307
365
185
245
140
174
93
4,000
- 1,250
92
85
88
86
42
48
41
4,764
843
778
604
354
297 1,454
Q113
48
11
99
34
192
YTD
2011 2012
100
154
56
58
117
136
245
272
86
620
604
2013
48
11
99
34
192
LTD
2,655
2,497
4,544
7,486
11,869
965
30,016
Engineerin
ng costs in Q3 2011,
2
relate to the San Juan Project
P
PFS, w
which was comppleted in Q1 20012.
Environmeental and perm
mitting costs include the legal
l
costs, coommunity connsultation & ccommunicationn costs
associated with trying to obtain the soccial and enviro
onmental licensse to develop tthe project. T
The higher costts in Q2
2011 and Q3
Q 2011 are associated
a
with
h the work bein
ng undertakenn leading up too the ratificatioon decision in August
2011. Inclluded in Q1 20
012 are legal co
osts associated with the ongo ing permittingg issues for the project. The iincrease
in Q2 2012
2 relates to thee submission of
o an updated EIS
E to include the railway prroposed in the PFS for the Saan Juan
Project.
Geology co
osts are princip
pally comprised of salary cossts and the costts of maintaininng a camp at S
San Jorge. Cossts were
higher in Q1
Q 2012 as a reesult of one-offf labour costs.
Miscellaneeous developm
ment costs in Q2
Q and Q3 20
011 were highher due to thee Company’s iincreased proffile and
community
y consultation and education program in Mendoza,
M
as thee project approoached the ratification decisioon. Q3
2011 also included the costs
c
of establishing the Min
nera San Jorgee Foundation w
which was dessigned to deveelop the
agriculturaal and eco-tourrist potential of
o the large ran
nch on which the project is located, as well as assistingg in the
socioecono
omic developm
ment of the Usp
pallata commun
nity.
Miscellaneeous costs were higher in Q1
1 2012 due to the
t Company w
working on thhe revised EIS. The Q4 20122 & Q1
2013 costs were lower th
han previous qu
uarters as the Company
C
reducced costs in Arrgentina.
Property acquisition costts in Q4 2012 relate to the payment
p
of fouur quarterly paayments upon ssigning of the revised
acquisition
n terms with Franco
F
Nevadaa (section 4.4)). The Q2 20011 payment oof $4 million was made unnder the
previous acquisition
a
term
ms for the pro
oject. The Maarch 31, 2013 payment remaained unpaid aas of the date of this
MD&A.
Share baseed compensation relates to the
t accounting
g requirement to capitalize sshare based coompensation ((the fair
value of sto
ock options graanted) granted to our develop
pment team.
In 2011, in
n accordance with
w the requirrements of IFR
RS 6, Explorati
tion for and Evvaluation of M
Mineral Resourcces, the
Company concluded that the failure to ratify thee EID was ann impairment indicator at December 31, 2011.
Accordingly the Compan
ny reviewed the various possible developm
ment alternativees and concludeed that no impairment
provision was
w necessary at that date.
2.6 Otherr Chilean Explloration
In Chile, th
he Company’ss other exploraation costs incllude but are noot limited to thhe costs associiated with Chaacay, El
Inca (optio
on terminated in
n January 2013
3), El Tapao (o
optioned termiinated in April 2012) and Llaancahue.
Chacay, Chile
C
On March
h 28, 2013, thee Company en
ntered into a binding
b
Amennding Agreemeent (the “Chaccay Agreemennt”) with
Compania Minera Relincho SA (“Reliincho”), a subsidiary of Tecck Resources L
Limited (“Teckk”), whereby tthe core
mining claaims covering Coro’s Chacay
y property are to be sold to Relincho for $2.0 million aand a 1.5% NS
SR. The
Agreementt requires Coro
o to transfer th
he core claimss and deliver aan updated ow
wnership certifiicate upon whiich $2.0
million wiill be promptly
y paid. Underr the terms off the Chacay A
Agreement, Cooro also agreeed to enter intoo a sale
Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 7
promise ag
greement to seell the remaind
der of their Ch
hacay claims ffor $0.5 millioon and a 1.5%
% NSR. The ppurchase
agreement for the remain
ning claims willl be executed upon
u
Coro provviding certain information too Relincho.
El Inca, Chile
C
An initial scout drill pro
ogram of 1,737
7 RC meters and
a 366 DDH meters was uundertaken in Q
Q3 and Q4 20012, the
results of which
w
did not justify
j
continu
uing with the project
p
and thee option was teerminated in Jaanuary 2013. P
Property
acquisition
n on El Inca inccluded CA$200
0,000 paid on signing
s
of the ooption agreem
ment in Q3 20122.
Llancahuee:
The Llancaahue Copper property is locaated 38km soutth west of the ccity of Talca inn the VII Regioon of central C
Chile. In
2008, 7 RC
C holes were drilled
d
with thee last hole, (LL
LA-07), interseecting significaant mineralizatiion (which inccluded a
highlight in
ntercept of 100
0m at 1.37% co
opper).
Table 9:
Other Explloration ($000’ss)
Consult, lab
b & prof.
Drilling & trenching
t
General & admin
a
costs
Property inv
vestigations
Property acq
quisition
Travel & acccommodation
Total explo
oration costs
Quarterly
Q
Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113
26
28
84
45
132
21
57
56
179
605
208 (54)
230
179
39
256
210
175
86
280
259
19
12
98
83
63
14
72
30
201
25
(1)
2
9
14
2
25
17
23
20
15
1,078
542
292
199
382
773
410
167
20111
633
411
888
399
144
2455
YTD
2012
21
86
72
20
199
2013
28
39
98
2
167
Drilling co
osts include 3 holes (458 metres)
m
in Q4
4 2011 at El T
Tapao, where no significannt mineralization was
encountereed. Property acquisition costts in Q3 2012 relate
r
to the E l Inca propertyy. The Companny also fully pprovides
for value added
a
taxes (“IV
VA”) in Chile and these costts are included within generall and admin. T
The provision ffor IVA
fluctuates based on our exploration
e
acttivity, and Q2 & Q3 2012 thhere was a siggnificant increaase in our explloration
activities.
3
OUT
TLOOK
Since mid
d-2011, Coro has
h focussed its
i activities in
n Chile, succeessfully identiifying and acqquiring two atttractive
exploration
n stage porphy
yry copper pro
ojects, El Dess and Payen, aand acquiring the smaller B
Berta project w
with the
objective of
o expeditiously
y advancing it to a developm
ment decision. A PFS was com
mpleted for the San Jorge prroject in
Argentina, and an updateed EIS submitteed to the autho
orities during 20012.
Given the current
c
difficult market cond
ditions for junio
or companies, C
Coro has focusssed on repleniishing its treasury and
in February
y it announced
d the sale of th
he Chacay projject to a subsiddiary of Teck for $2.0 millioon with a furthher $0.5
million exp
pected by the end of the yeaar. The Compaany retains a 11.5% NSR on the property. Chacay is a non-core
project thaat was not activ
vely being advaanced and its disposition resuulted in a non-ddilutive financiing for the Com
mpany.
In April 20
013, the Comp
pany renegotiaated the underllying terms off the Berta Opttion agreementt (section 4.4.)) which
reduced th
he June 2013 payment from $1.5
$
million to
o $0.5 million, and the June 2014 paymentt from $3.5 miillion to
$2.5 millio
on in return forr the owner retaining a 1.5%N
NSR on all prooduction. In M
May 2013, the C
Company enterred into
the ProPipe LOI, which if completed as
a stated, could
d result in the Company receeiving future ccash flows from
m Berta
without haaving to make further
f
capital contributions
c
to
t the project.
In Februarry 2013, the Company
C
made the annual option
o
paymennt for El Des and does nott have anotherr option
payment due
d for Payen until
u
October 2013.
2
Exploraation activity oon these propeerties has significantly decreaased as,
because off market cond
ditions, we hav
ve made a deecision to seekk partners for them. Accorddingly confideentiality
agreementss have been sig
gned with a num
mber of compaanies and data and site review
ws are proceedding.
Finally, th
he Company has
h initiated a cost rationaliization proces s and as of A
April 30, 20133 had cash annd cash
equivalentss of $0.3 millio
on.
Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 8
4
Q1 2013 FINANCIIAL POSITIO
ON REVIEW
4.1 Cash
h and Working
g Capital
Table 10: - Cash and Working Capital ($
$000’s)
Cash and caash equivalents
AR and prep
paids
Investmentss
AP and accrruals
Net working
g capital
Dec 311, 2012 Mar 311, 2013
2,086
517
47
56
19
10
(297)
(231)
1,855
352
The Comp
pany’s working
g capital positiion decreased from
f
Decembeer 2012 as a reesult of explorration expendittures of
$0.8 millio
on including th
he second pay
yment on El Des ($0.5m) annd developmennt expenses onn Berta and Saan Jorge
($0.4m). For a discussion
n on the Compaany’s working capital requireements referennce should be m
made to sectionn 1.2.
4.2
Otheer Assets and Liabilities
Table 11: -O
Other Assets an
nd Liabilities ($
$000’s)
Property, plant and equipmeent
Mineral pro
operty interests
Berta (section 2.1)
San Jo
orge (section 2.5
5)
Total Other Assets
Dec 31, 2012
622
299,824
29,824
30,446
Mar 31, 2013
615
30,237
221
30,016
30,852
Property, plant
p
and equip
pment include the
t surface rights surroundinng San Jorge ($$537,000). Totaal assets of Cooro as at
March 31, 2013 were $31
1.4 million (Deec 2012: $32.6m) and total liaabilities were $$0.3 million (D
Dec 2012: $0.3m).
4.3
Equ
uity and Finan
ncings
Table 12: - Shareholders’ Equity ($000’s))
Common sh
hares
Contributed
d surplus
Accumulateed other compreh
hensive income
Deficit
Total shareh
holders’ equity
Dec 31, 2012
511,656
55,317
534
(25,,206)
322,301
Mar 331, 2013
51,656
5,608
515
(26,575)
31,204
The movem
ment in Deficiit and accumullated other com
mprehensive inncome are expplained in sectiion 5. The incrrease in
contributed
d surplus relateed to the expen
nsing of stock based
b
compenssation.
Equity insstruments
Table 13: - Equity Instrum
ments
Common sh
hares outstanding
g
Options outstanding
Numberr
Weighteed average pricee
Warrants ou
utstanding
Numberr
Weighteed average pricee
Market capiitalization ($000
0’s)
Closing share price
Q1 2013 MD&A (expressed in U.S. Dollars)
Dec 311, 2012
138,293,934
Mar 31, 2013
138,293,934
11,793,333
CA
A$0.60
11,618,333
C
CA$0.60
-
-
CA$27,659
CA
A$0.20
CA
A$20,744
C
CA$0.15
TSX Symbol: COP
Page| 9
As of Aprril 30, 2013 th
he Company had
h 138,293,934 shares outtstanding. In M
March 2012, tthe Company granted
4,095,000 options at an exercise price of CA$0.41. Benton
B
owns 557,866,754 shaares in the Coompany (42%) and on
March 21, 2013 received
d an unsolicited
d takeover bid which
w
was lateer withdrawn oon March 28, 20013.
The follow
wing table show
ws the significant financings of the Compaany over the laast three years and the intendded and
actual use of the proceeds from these financings.
Table 14: - Use of Proceed
ds Table – Last three years
Shares
Price Net Proceeds
P
Description
n
(000’s)
CA$
($000’s)
Jun 10 – Un
nit Issuance
12,500
$0.36
$4,203
Intended Use
San Jorge Payment and working cappital
Acttual Use
As iintended
4.4
Con
ntractual Obliigations
The follow
wing table show
ws the contracctual obligations of the Com
mpany includinng property opptions paymennts as at
March 31, 2013:
Table 15: - Contractual Obligations
O
($000’s)
Operating leases
l
Property Option
O
Paymentts1
San Jorge
Bertta2
El Desesperado
D
Payen
Total
1
2
2013
(9 months)
94
3,250
1,250
1,500
500
3,344
2014
28
7,050
1,250
3,500
1,300
1,000
7,078
2015
6,250
1,250
3,000
2,000
6,250
22016
222,250
11,250
88,000
133,000
222,250
2017
1,250
1,250
1,2550
Thereafter
5,000
5,000
5,000
Total
122
45,050
11,250
5,000
12,300
16,500
45,172
Excludes royaalty payments and nett profit interests referr below.
Berta terms were
w amended in Apriil 2013 refer below
As of Marcch 31, 2013 the Company haad no significan
nt commitmentts for capital eexpenditures annd the aforemeentioned
option pay
yments are at th
he election of th
he Company.
Property Option
O
Paymeents
San Jorge, Argentina:
In Octoberr 2012, the Com
mpany amendeed the San Jorg
ge Purchase A
Agreement which now requirees annual paym
ments of
$1.25 million (payable quarterly),
q
for 10 years, com
mmencing on M
March 31, 20112 ($1.25 milliion paid). In aaddition,
there is a 7.5%
7
NSR pay
yable on all golld produced fro
om the propertty. The annual payments are not payable w
when that
payment iss exceeded by the gold NSR
R payment. Co
oro may at anyy time, prepay the outstandinng amount withh a onetime paym
ment equal to the net pressent value of the future paayments, usingg a 5% discoount rate. N
No other
consideratiions, obligation
ns, payments, or royalties arre due, and Corro may withdrraw from the A
Agreement at aany time
with no furrther obligation
ns. The March
h 31, 2013 paym
ment remains uunpaid as of thhe date of this M
MD&A.
Berta, Chiile:
In June 20
011, Coro enteered into an agreement
a
to acquire
a
a 100%
% interest in the Berta property for a tootal cash
consideratiion of $6 milliion. This conssideration is to
o be paid in thhe following sttaged option payments; $1.00 million
(paid); $1.5 million in Ju
une 2013; $3.5 million in Ju
une 2014. In aaddition, a 1.55% NSR is payyable on any ssulphide
copper pro
oduction togeth
her with any by-product metals. In April 22013, the acquuisition terms w
were amendedd to $0.5
million in June
J
2013 and $2.5 million in
n June 2014 an
nd the 1.5% NS
SR was payablle on all copperr production.
The obligaations under th
he Berta agreem
ment are intend
ded to be offseet by the undeertakings underr the ProPipe L
LOI that
was entered into in May 2013
2
(section 2.2).
2
El Desespeerado, Chile:
In February
y 2012, the Co
ompany entered
d into an option
n agreement too acquire 100%
% of the El Dessesperado propperty for
a total con
nsideration of $13
$ million. Th
his consideratiion is to be paiid in the follow
wing option paayments; $0.7 million
(paid); $1.3 million in Feebruary 2014; $3 million in February
F
2015;; $8 million inn February 2016. In addition, a 1.9%
sales royalty is payable on
o any productiion from the prroperty. Coro hhas a right of fi
first refusal on tthe sales royaltty.
Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 10
Payen:
In Octoberr 2012, the Com
mpany entered
d into an option
n agreement too acquire 100%
% of the Payen property, in C
Chile, for
a total con
nsideration of $17
$ million. This
T consideratiion is to be paaid in the folloowing option ppayments; On signing:
$0.5 millio
on (paid); $0.5
5 million in Occtober 2013; $ 1.0 million inn October 20114; $2 million in October 20015; $13
million in October 2016. A 2.5%NSR is retained by
y the owner annd Coro may acquire half of this (1.25% N
NSR) for
$10 million
n.
5
Q1 2013 EXPEND
DITURES REV
VIEW
The follow
wing table detaiils the Compan
ny’s quarterly and
a year to datte expendituress.
Quartterly
Q112 Q212 Q312 Q412 Q113
2011
YTD
20122
2013
245
2,534
871
7999
854
515
Table 16: ($
$000’s)
Expenditurres summary
Q211 Q311 Q411
Net Sales
Exploration
n costs (section 5.1)
Other Expen
nses (section 5.2
2)
1,278 1,028
824 1,114
455
291
Loss beforee tax and equity
y earnings
Deferred inccome tax (recovery) expense
2,102 2,142
-
746
-
1,670 2,825 2,206 2,271 1,369
-
2,779 1,6700 1,369
(281)
-
Loss (Earnings)
2,102 2,142
746
1,670 2,825 2,206 2,271 1,369
2,498 1,6700 1,369
Other Comp
prehensive Loss (Income)
Comprehen
nsive Loss (Inco
ome)
(174) 1,214 (527)
1,928 3,356
219
(224)
207 (216)
41
19
1,446 3,032 1,990 2,312 1,388
523 (224)
19
3,021 1,4466 1,388
Basic loss (eearnings) per shaare
Fully diluted
d loss (earnings)) per share
$0.06 $0.02 $0.06
$0.06 $0.02 $0.06
$0.01 $0.02 $0.02 $0.02 $0.01
$0.01 $0.02 $0.02 $0.02 $0.01
$0.02 $0.01 $0.01
$0.02 $0.01 $0.01
871 2,407 1,594 1,773
799
418
612
498
854
515
As the Co
ompany is in the
t exploration
n and developm
ment stage it has no sales oor revenues. Other comprehhensive
income priincipally arises from converrting the Canaadian dollar fun
unctional denom
minated financcial statementss of the
Parent Enttity from Canadian dollar to the U.S. dollar reporting currrency. The sm
maller other coomprehensive income
movements in the last cou
uple of quarterrs are consisten
nt with the reduuction in the C
Canadian assetss held.
5.1
Ex
xploration cossts
The follow
wing table summ
marizes the qu
uarterly and yeaar to date expeenditures on thee Company’s eexploration prooperties in
Chile.
Table 17: ($
$000’s)
Exploration
n Chile
Consult, lab
b & prof.
Drilling & trenching
t
General & admin
a
costs
Property inv
vestigations
Property acq
quisition
Travel & acccommodation
Total explo
oration costs
By Project:
Berta (sectio
on 2.2)
Chacay (secction 2.6)
El Desesperrado (section 2.3
3)
El Inca (section 2.6)
Payen (sectiion 2.4)
Other
Total explo
oration costs
Quarterly
Q211 Q311
Q
Q411 Q112
Q
Q212 Q
Q312
84
50
135
109
219
219
605
617 (53)
277
879
784
256
212
177
88
288
264
83
131
170
173
199
98
225
1
200
800
201
25
18
25
25
22
29
1,278 1,028
1
455
872 2,407 1,,595
Q412
313
542
181
173
500
63
1,772
Q113
114
48
178
500
14
854
20111
633
411
888
399
144
2455
YTD
2012
109
277
88
173
200
25
872
2013
114
48
178
500
14
854
200
486
732
297
312
247
1,278 1,028
1
351
5
428
200
584
204
1,772
34
596
3
91
130
854
1088
1244
2455
441
48
230
141
872
34
596
3
91
130
854
Q1 2013 MD&A (expressed in U.S. Dollars)
165
(10)
300
455
441 2,003
783
48
6
3
230
24
39
464
141
363
306
872 2,407 1,,595
TSX Symbol: COP
Page| 11
Drilling co
osts, Q4 2012 relates to El Des and El In
nca (section 2..3 & 2.6), Q3 2012 relates to Berta and El Inca
(section 2.2 & 2.6) and Q1 & Q2 201
12 relates to drrilling at Bertaa (section 2.2). Q4 2011 drilling relates too a drill
program att the El Tapao (section 2.8). The Q3 2011 drilling relate s to the 24 holle (4,360m) reeverse drill circculation
program un
ndertaken at Berta.
General & administration
n costs include a portion of alll administrativve costs of runnning the Comppany’s Santiagoo office
and a prov
vision for Chillean Value Ad
dded Taxes (“IIVA”). In Chiile, IVA is nott refundable inn cash and is applied
against oth
her IVA credits. The increase in Q2 201
11, Q3 2011, Q2 2012, Q3, 2012 and Q4 2012 is duee to the
provision for
f IVA on the increased drillling programs in the respectivve quarters.
The properrty acquisition
n costs are as follows
f
Q1 201
12; El Des, Q22 2012; Berta, Q3 2012; El IInca, Q4 2012; Payen
and Q1 2013; El Des.
5.2
Otther Expensess
The follow
wing table detaiils the Compan
ny’s quarterly and
a annual exppenditures.
Quartterly
Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113
Table 18:
Expenditurres summary ($
$000’s)
Other Expen
nses
Depreciation
n and amortizatiion
Finance inco
ome
Foreign excchange loss (gain
n)
Legal and fiiling fees
Other corpo
orate costs
Realized gain on disposal
Salaries & management
m
fees
Share-based
d payments
Unrealized loss
l
(gain) on heeld-for-trading
9
3
7
(30) (23) (28)
91 (328)
234
52
13
(1)
104
118
87
- (817)
206
148
167
261
66
346
131 1,117
296
824 1,114
291
6
7
(17) (28)
69 (102)
47
19
75
62
(253)
1
192
191
380
240
299
28
798
418
2011
YTD
20122
2013
6
(11)
102
2
85
190
238
(1)
7
(6)
(38)
6
80
(1)
178
258
16
5
(2)
(5)
29
44
187
248
9
3
(21)
124
50
48
(4,805)
200
871
6,064
6
(177)
699
477
755
(253)
1922
3800
2999
5
(2)
(5)
29
44
187
248
9
611
500
515
2,534
7988
515
Finance income is comprrised of interesst income on caash and cash eequivalents. Fooreign exchangge losses are atttributed
to exchang
ge rate movemeents on translattion of transacttions in other tthan the functioonal currency. The U.S. dollaar is the
functional currency of alll entities excep
pt for the Pareent Company w
which is functiionally Canadiian. Foreign exxchange
loss (gain) is primarily drriven by U.S. dollar
d
holdings in the Canadiaan Parent Com
mpany.
Legal and filing fees are higher in the first
f
half of each year as a reesult of annuall listing fees, aand legal & reggulatory
costs assocciated with thee annual generaal meeting. Otther corporate costs in Q2 20011 were higheer due to profeessional
advisory feees.
Salaries & management fees rose in Q1
Q 2012 as a reesult of the hirring of an IR M
Manager. Q4 22012 costs werre lower
due to hig
gher recovered costs from a third party. Share-based
S
coompensation reelates to stockk-based compeensation
expenses associated
a
with
h option grants.
5.3
Reelated Party Disclosure:
D
The Company considers the Executive Directors and Officers
O
of thee Company to bbe key manageement personneel.
Table 19- Key Management
Personnel Co
ompensation
($000’s)
Short-term em
mployee benefits
Share-based payments
p
Total
Quarterly
YTD
Q21
11 Q311 Q411 Q112 Q2122 Q312 Q4122
24
49
206
211
263
2544
263
2622
69
90
148
228
168
29 3
167
1677
93
39
354
439
431
54 7
430
4299
Q113
268
131
399
2011
206
148
354
2012
263
168
431
2013
268
131
399
Fluctuation
ns in short term
m employee benefits
b
are du
ue to the underrlying agreem
ments being dennominated in C
Chilean
Pesos and the Canadian dollar.
d
The Ch
hilean salaries are
a also subjectt to indexing.
Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 12
6
RIISKS AND CR
RITICAL AC
CCOUNTING ESTIMATES
S & POLICIE
ES
For a full version
v
of the critical
c
accountting estimates and
a policies reeference shouldd be made to thhe Company’s audited
financial statements
s
for the year endeed December 31, 2012, whhich are availaable on the C
Company’s webbsite at
www.corom
mining.com. In addition, reeference should
d be made to tthe most recenntly filed Annuual Information Form
available on
o SEDAR at www.sedar.com
w
m.
6.1
Diisclosure Conttrols and Internal Control Financial
F
Rep
porting
The Comp
pany’s disclosu
ure controls an
nd procedures are designed to provide reaasonable assurrance that all rrelevant
information
n is communiccated to senior management, to
t allow timelyy decisions reggarding requireed disclosure.
Internal co
ontrol over finaancial reportin
ng is designed to provide reaasonable assuraance regardingg the reliabilityy of the
Company’s financial rep
porting and th
he preparation of financial sstatements in compliance IF
FRS. The Com
mpany’s
internal control over finaancial reporting
g includes policcies and proceddures that:
• pertaiin to the maintenance of reco
ords that accuraately and fairlyy reflect the trannsactions of thhe Company;
• proviide reasonablee assurance thaat transactionss are recordedd as necessary to permit preeparation of fiinancial
statem
ments in accord
dance with IFR
RS;
• ensure the Company
y’s receipts and
d expendituress are made onlyy in accordancee with authorizzation of manaagement
and th
he Company’s directors; and
• provide reasonable assurance regarding preventtion or timely detection of uunauthorized trransactions thaat could
have a material effeect on the annual or interim fiinancial statem
ments.
Managemeent has conclud
ded that, as at March 31, 2013, the Compaany‘s internal ccontrol over fiinancial reportiing was
not effective due to the existence of a material weakness. A maaterial weaknesss existed in tthe design of internal
control oveer financial rep
porting caused by a lack of adequate
a
segreggation of dutiees in the financcial close proceess. The
Chief Finaancial Officer is responsiblee for preparin
ng, authorizingg, and reviewiing informatioon that is keyy to the
preparation
n of financial reports. He is also responsib
ble for prepariing and review
wing the resultting financial reports.
This weakn
ness has the po
otential to resullt in material misstatements
m
iin the Companyy’s financial sttatements.
Managemeent has conclu
uded, and the audit
a
committeee has agreed that taking innto account thee present stagee of the
Company'ss development,, the Company
y does not havee sufficient sizee and scale to w
warrant the hirring of additionnal staff
to correct the
t weakness at
a this time.
There weree no changes in
i the Compan
ny’s internal co
ontrols over finnancial reportiing during the quarter endedd March
31, 2013 th
hat have materrially affected, or are reasonaably likely to m
materially affecct, its internal ccontrols over fiinancial
reporting.
The Comp
pany’s manageement, includin
ng the Chief Executive
E
Officcer and Chief Financial Offficer, believe tthat any
disclosure controls and procedures
p
or internal contro
ol over financcial reporting, no matter how
w well conceivved and
operated, can
c provide on
nly reasonable and not absolu
ute assurance that the objecttives of the coontrol system aare met.
Further, th
he design of a control
c
system reflects the facct that there aree resource connstraints, and thhe benefits of ccontrols
must be co
onsidered relattive to their costs. Because of the inherennt limitations in all control systems, they cannot
provide ab
bsolute assuran
nce that all co
ontrol issues and
a instances oof fraud, if anny, within the Company havve been
prevented or detected. These
T
inherentt limitations in
nclude the reaalities that juddgments in deccision-making can be
faulty, and
d that breakdow
wns can occur because
b
of sim
mple error or miistake. Additioonally, controlss can be circum
mvented
by the ind
dividual acts of
o some person
ns, by collusio
on of two or m
more people, oor by unauthoorized overridee of the
control. Th
he design of an
ny systems of controls
c
also iss based in partt upon certain assumptions abbout the likelihhood of
future even
nts, and there can be no assurance that any
a design willl succeed in aachieving its sstated goals unnder all
potential future
f
conditio
ons. According
gly, because of
o the inherennt limitations iin a cost effective control system,
misstatemeents due to erro
or or fraud may
y occur and not be detected.
6.2
Fo
orward Looking Statementss
Certain staatements includ
ded in this “MD
D&A” constitu
ute forward-loooking statemennts, including tthose identifiedd by the
expression
ns “anticipate”, “believe”, “pllan”, “estimatee”, “expect”, ““intend”, “mayy”, “should” annd similar exprressions
to the exteent they relate to the Compan
ny or its management. The fforward-lookinng statements aare not historiccal facts
but reflect current expecttations regarding future resullts or events. T
This MD&A coontains forwarrd-looking stateements.
Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 13
These forw
ward-looking statements
s
are based on curreent expectationns and variouss estimates, facctors and assum
mptions
and involv
ve known and unknown
u
risks, uncertainties and
a other factoors.
Information concerning the
t interpretation of drill resu
ults also may bbe considered fforward-lookinng statements, as such
information
n constitutes a prediction off what minerallization might be found to bbe present if aand when a prroject is
actually deeveloped. The estimates, risks and uncertaainties describbed in this MD
D&A are not necessarily alll of the
important factors
f
that cou
uld cause actuaal results to differ materiallyy from those exxpressed in thee Company’s foorwardlooking staatements. In addition, any fo
orward-looking
g statements reepresent the C
Company’s estiimates only ass of the
date of thiss MD&A and should
s
not be relied
r
upon as representing
r
thhe Company’s estimates as off any subsequeent date.
The material factors and
d assumptions that were app
plied in makingg the forward--looking statem
ments in this M
MD&A
include: (aa) execution off the Company
y’s existing plaans or explorattion programs for each of its properties, eeither of
which may
y change due to
o changes in th
he views of thee Company, orr if new inform
mation arises w
which makes it pprudent
to change such
s
plans or programs;
p
and (b) the accuraccy of current innterpretation oof drill and othher exploration results,
since new information or new interp
pretation of ex
xisting inform
mation may ressult in changees in the Com
mpany’s
expectation
ns. Readers should not plaace undue reliiance on the Company’s fforward-lookinng statements, as the
Company’s actual resultss, performance or achievemen
nts may differ materially from
m any future reesults, perform
mance or
achievemeents expressed or implied by such forward--looking statem
ments if knownn or unknown risks, uncertainnties or
other facto
ors affect the Company’s business,
b
or iff the Companny’s estimates or assumptioons prove inacccurate.
Therefore, the Company cannot providee any assurance that forward--looking statem
ments will mateerialize.
6.3
Na
ature of Operations and Go
oing Concern
Refer to seection 1.2
6.4
NII 43-101 Comp
pliance Requiirements
Under National Instrumeent 43-101 Stan
ndards of Discllosure for Mineeral Projects (““NI 43-101”), iif an issuer disclosures
in writing scientific or teechnical inform
mation about a mineral projeect on a propeerty material too the issuer, thhe issuer
must inclu
ude in the writtten disclosure the name and
d the relationshhip to the issuuer of the quallified person w
who: (a)
prepared or
o supervised the preparatio
on of the inforrmation that fforms the basiis for the wriitten disclosuree or (b)
approved the
t written discclosure. For th
he purposes of this MD&A, A
Alan Stephens,, FIMMM, Preesident and CEO
O of the
Company, a geologist wiith more than 37
3 years of exp
perience is the Q
Qualified Persoon for the purpposes of NI 43--101 has
approved the
t written discclosure in this MD&A. This MD&A refereences a numbeer of previous nnew releases inn respect
of disclosu
ure of technicall matters relatin
ng to mineral properties
p
and reference shouuld be made to these news relleases to
fully underrstand these refferences.
6.5
Otther Risks
Reference should be maade to the Co
ompany’s riskss and critical accounting poolicies and praactices sectionn of the
December 31, 2012, Management Disccussion and Analysis for a ccomplete discuussion on the rrisk factors asssociated
with Naturre of Operatio
ons; Environm
mental Permittting at San Joorge; Foreign Political Risk
k; Governmentt Laws,
Regulation
n & Permittiing; Estimatees of Minerall Resources; Key Manageement and Coompetition; T
Title to
Propertiess; Commodity
y Prices; Foreiign Currency Risk; amongstt other things.
6.6
Crritical Accoun
nting Policies
Reference should be maade to the Co
ompany’s riskss and critical accounting poolicies and praactices sectionn of the
December 31, 2012, Maanagement Disscussion and Analysis
A
for a complete disscussion on thhe critical accoounting
policies asssociated with Foreign currrency translattion; Explorattion and Evalluation Costs; Asset impaiirment;
Recent Acccounting Pron
nouncements;; amongst otheer things
The accoun
nting policies followed
f
in thee condensed in
nterim consoliddated financial statements aree consistent wiith those
of the prev
vious financial year, except ass described bellow.
(i) IFRS 10
0, Consolidateed Financial Sttatements, requ
uires an entity to consolidatee an investee w
when it has pow
wer over
the investeee, is exposed, or has rights, to
t variable retu
urns from its innvolvement wiith the investeee and has the aability to
affect thosse returns throu
ugh its power over the invesstee. Under preevious IFRS, cconsolidation w
was required w
when an
entity has the power to govern the fin
nancial and op
perating policiies of an entitty so as to obbtain benefits ffrom its
activities. The Company
y assessed its consolidation
c
conclusions
c
onn January 1, 20013 and determ
mined that the aadoption
of IFRS 10
0 did not resultt in any changee in the consolidation status oof any of its subbsidiaries and iinvestees.
Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 14
(iii) IFRS 11, Joint Arran
ngements, requ
uires a venturerr to classify its interest in a jooint arrangement as a joint veenture or
joint operaation. Joint veentures will bee accounted fo
or using the eequity methodd of accountingg whereas forr a joint
operation the
t venturer will
w recognize its
i share of thee assets, liabiliities, revenue and expenses of the joint opperation.
Under prev
vious IFRS, en
ntities had the choice to prop
portionately coonsolidate or eequity account for interests inn jointly
controlled entities. The Company
C
has classified
c
its jo
oint arrangemennts and concluuded that the addoption of IFRS
S 11 did
not result in
i any changes in the accountting for its join
nt arrangementss.
(iii) IFRS 13, Fair value measurementss, provides as single
s
framewoork for measurring fair value.. The measureement of
the fair vallue of an asset or liability is based
b
on assum
mptions that maarket participannts would use when pricing tthe asset
or liability
y under currentt market condiitions, includin
ng assumptionns about risk. The Companyy adopted IFRS 13 on
January 1, 2013 on a prrospective bassis. The adoption of IFRS did not requirre any adjustm
ments to the vvaluation
techniquess used by the Company to measure
m
fair value
v
and did not result in aany measurem
ment adjustmennts as at
January 1, 2013.
(iv) The Company has ad
dopted the ameendments to IA
AS 1 effective January 1, 2013. These am
mendments requuired the
Company to
t group otherr comprehensiv
ve incomes by those that willl be reclassifieed subsequentlly to profit or lloss and
those that will not be reclassified. Th
he Company has reclassifiedd comprehensivve income item
ms of the com
mparative
period. Th
hese changes diid not result in
n any adjustmen
nts to other com
mprehensive inncome or compprehensive incoome.
Q1 2013 MD&A (expressed in U.S. Dollars)
TSX Symbol: COP
Page| 15
7
SUMMARY
Y OF FINANC
CIAL PERFO
ORMANCE AND
A
FINANCIIAL POSITIO
ON
(Unaudited
d)
Summ
mary of Financiaal Performance
Quaarterly
Taable 20: ($000’s))
Q2
211 Q311
YTD
Q411
Q1122
Q212
Q
Q312
Q412
Q113
2012
2013
-
-
-
-
-
-
-
-
-
84
50
605
617
256
2
212
83
131
225
2
25
18
1,278 1,028
135
(53)
177
170
1
25
455
1099
2777
88
1733
2000
255
87 1
219
879
288
199
800
22
2,407
219
784
264
98
201
29
11,595
313
542
181
173
500
63
1,772
114
48
178
500
14
854
109
277
88
173
200
25
871
114
48
178
500
14
854
9
3
(30)
(
(23)
91 (328)
52
13
121
118
175
148
261
2
66
130 1,117
809 1,114
7
(28)
234
(1)
87
(817)
167
346
296
291
6
(177)
699
477
755
(2522)
1922
3800
2999
7999
7
(28)
(102)
19
62
1
191
240
28
418
6
(11)
102
2
85
191
238
(1)
611
7
(6)
(38)
6
80
(1)
177
258
16
501
5
(2)
(5)
29
44
187
248
9
515
6
(17)
69
47
75
((252)
192
380
299
799
5
(2)
(5)
29
44
187
248
9
515
Looss (earnings)
Other Compreheensive Income
Coomprehensive Loss
L
(income)
2,087 2,142
(1
174) 1,214
1,913 3,356
746
(527)
219
1,6700
(2244)
1,4466
2,825
207
3,032
22,205
((216)
11,989
2,273
41
2,314
1,369
19
1,388
11,670
((224)
11,446
1,369
19
1,388
Baasic loss (earning
gs) per share
Fully diluted loss (earnings)
(
per sh
hare
$0
0.01 $0.02
$0
0.01 $0.02
$0.00
$0.00
$0.0 1
$0.0 1
$0.02
$0.02
$$0.02
$$0.02
$0.02
$0.02
$0.01
$0.01
$$0.01
$$0.01
$0.01
$0.01
Exp
ploration Expen
nditures by project
Ch
hile:
Berta (Excludes capitalized
c
costs)
El Desesperado
o
El Inca
Chacay
Payen
Other
Tootal exploration
200
2
485
732
297
346
246
1,278 1,028
165
(10)
300
455
44 1
2300
48
1533
8722
2,004
24
6
373
2,407
783
39
464
3
306
11,595
351
428
200
5
584
204
1,772
34
596
3
91
130
854
441
230
48
141
872
34
596
3
91
130
854
Neet Revenues
Exxploration Expeenditures
C
Consulting, lab.&
& prof. fees
D
Drilling and tren
nching
G
General & admin costs
P
Property investig
gations
P
Property acquisiition costs
T
Travel & accomm
modation
Tootal Exploration
n Costs
Coorporate and Otther Costs
Depreciation & amortization
Finance income
Foreign exchang
ge loss (gain)
Legal and filing
g fees
Other corporate costs
Realized gain on
n disposal
Salaries and man
nagement fees
Stock-based pay
yments expense
U
Unrealized gain on held-for-trad
ding
Tootal Corporate & Other
Q1 2013 MD&A (expressed in U.S. Dollars)
-
TSX Symbol: COP
Page| 16
Taable 21: ($000’s))
Fin
nancial Position
n
Assets
Cash and cash equivalents
e
A
AR and prepaids
Other current asssets
Total Current Assets
A
Property, plant and
a equipment
Mineral properrty interests- Sa
an
Engineeriing
Environmental & permittiing
Geology
Misc. deveelopment costs
Property acquisition
a
costss
Share-bassed compensation
Mineral properrty interests- Beerta
Engineeriing
Environmental & permittiing
Geology
Misc. deveelopment costs
Property acquisition
a
costss
Share-bassed compensation
Other assets
Tootal Assets
Q211
Q311
15,116
68
2,304
17,488
645
25,493
2,211
1,799
4,121
6,207
10,619
537
12,017
57
1,028
13,102
650
26,336
2,301
2,021
4,202
6,572
10,619
622
Sum
mmary of Finan
ncial Position
Q4411
Q112
Q212
11,9965
76
4479
12,5520
6629
27,1115
2,5543
2,1195
4,3310
6,7739
10,6619
7710
10,971
91
58
11,120
630
27,719
2,642
2,251
4,426
6,984
10,619
797
7,868
43
27
7,938
638
28,073
2,654
2,352
4,487
7,179
10,619
838
Q312
Q
Q412
Q11
13
5,922
57
29
6,008
630
28,370
2,654
2,408
4,505
7,215
10,619
969
22,086
47
19
22,152
622
299,824
22,655
22,449
44,533
77,387
11,869
927
43,626
40,088
40,2264
39,469
36,649
35,008
322,598
517
7
56
6
10
0
583
3
615
5
30,016
6
2,655
5
2,497
7
4,544
4
7,486
6
11,869
9
965
5
221
1
26
6
113
3
74
4
8
31,435
5
696
297
231
All Costts related to Bertta were expenseed prior to Januaary 1, 2013
Liaabilities
A
AP and accrued liabilities
Sharreholders’ Equity
Common sharess
Contributed surp
plus
A
AOCI
Deficit
Totaal Shareholderss’ Equity
Totaal Liabilities an
nd Equity
969
586
5519
704
630
51,800
3,189
1,028
(13,360)
42,657
43,626
51,897
3,281
(185)
(15,491)
39,502
40,088
51,6650
3,9986
3342
(16,2233)
39,7745
40,2264
51,650
4,452
566
(17,903)
38,765
39,469
51,657
4,733
359
(20,730)
36,019
36,649
51,656
5,016
575
(222,935)
34,312
335,008
511,656
55,317
534
(25,206 )
322,301
322,598
51,656
6
5,608
515
5
(26,575)
31,204
4
31,435
5
Weighted average # of shares (000’ss)
Worrking Capital
135,626
16,519
137,874
1
12,516
135,1170
12,0001
138,269
10,416
138,271
7,308
138,273
5,312
138,294
1,855
138,294
4
352
2
Taable 22: Selected
d Annual Inform
mation
Neet sales or revenu
ues
Earrnings (loss) beffore discontinued
d operations
Earrnings (loss) beffore discontinued
d operations per-share
Earrnings (loss) beffore discontinued
d operations dilu
uted per-share
Neet earnings (loss))
Neet earnings (loss)) per-share
Neet earnings (loss)) diluted per-sharre
Tootal assets
Tootal long-term fin
nancial liabilitiess
Caash dividends decclared
Q1 2013 MD&A (expressed in U.S. Dollars)
22011
(7,4462)
(00.06)
(00.06)
(7,4462)
(00.06)
(00.06)
40,,264
-
TSX Symbol: COP
20112
(8,781)
(0.006)
(0.006)
(8,781)
(0.006)
(0.006)
32,5998
-
YTD
2013
(1,369)
(0.01)
(0.01)
(1,369)
(0.01)
(0.01)
31,435
-
Page| 17