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Highlights

  • Capstone’s Q2 2024 revenues surged 17.7% to USD 393.0 million, driven by higher production
  • Bottomline turned positive at USD 27.4 million, compared to net loss in last year
  • The company achieved Mantoverde Project milestone with the first saleable copper concentrate production

Capstone Copper Corp. (TSX: CS) is involved in the mining, exploration, and development of mineral properties in the Americas. The company’s main priority is copper, but it also produces lead, zinc, molybdenum, gold and silver.

In Q2 2024, the company's revenues reached USD 393.0 million, reflecting a 17.7% increase compared to the previous corresponding period. This growth was steered by higher production levels and an increased realization price. Earnings from mining operations also saw a significant rise, totaling USD 72.5 million compared to USD 5.0 million in pcp. This improvement was largely due to the elevated revenue, though it was partially offset by higher depletion and amortization costs.

The company's income before income tax amounted to USD 47.4 million, a notable turnaround from the USD 32.6 million loss reported in the previous year. This positive shift was largely attributed to the improved income from operations. Consequently, the net income for Q2 2024 stood at USD 27.4 million, reversing the net loss of USD 33.9 million experienced in the same quarter of the previous year. This net income was achieved despite higher income tax expenses.

Recent Business Update

The company recently announced that it has produced its first saleable copper concentrate at the Mantoverde Development Project (MVDP) in Chile. This milestone comes as the mine progresses through commissioning and moves towards achieving full production capacity.

Company Outlook

For the fiscal year 2024, management expects net copper production to range between 190,000 and 220,000 tonnes, with C1 cash costs expected to be between USD 2.30 and USD 2.50 per pound. Additionally, capital expenditure is anticipated to total USD 275 million, with an extra USD 180 million allocated for capitalized stripping, reaffirming the previously stated figures.

Top 10 Shareholders

The top 10 shareholders of Capstone collectively own approximately 37.35% of the company's shares. GRM Investments, Ltd. and Orion Resource Partners (USA) LP are the largest stakeholders, with holdings of about 13.25% and 11.91%, respectively.

Stock information

Capstone's stock price has increased by approximately 14.11% over the past week and decreased by 0.95% over the past month. It is currently trading above the average of its 52-week high of CAD 11.51 and its 52-week low of CAD 4.40.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 16, 2024. The reference data in this report has been partly sourced from EODHD/Others.