Capstone Copper Reports Strong Q3 2024 Copper Production

Capstone Copper reported strong production results for the third quarter of 2024, producing 47,460 tonnes of copper, largely driven by its operations in Chile. The Mantoverde Development Project reached commercial production in September, delivering two shipments of copper concentrate. The project capital remained on budget at $870 million.

Copper production during Q3 included 17,481 tonnes from Mantoverde, 13,980 tonnes from Pinto Valley, 9,974 tonnes from Mantos Blancos, and 6,025 tonnes from Cozamin. Total copper sold for the quarter was 44,684 tonnes, slightly below production levels due to inventory buildup at Mantoverde.

Net income for Q3 stood at $12.5 million, compared to a net loss of $32.9 million in the same period last year. This turnaround was primarily driven by increased production and a higher realized copper price of $4.24 per pound. Adjusted EBITDA rose significantly to $120.8 million, up from $59.2 million in Q3 2023. Operating cash flow before changes in working capital was $116.9 million.

Capstone Copper's net debt at the end of September was $750.7 million, with available liquidity of $515.6 million, consisting of $138.6 million in cash and $377 million in undrawn credit. The company expects 2024 copper production to end at the lower end of the guidance range of 190,000 to 220,000 tonnes, with revised cash costs estimated between $2.60 and $2.80 per pound.

The feasibility study for the Santo Domingo project estimated an after-tax net present value of $1.72 billion and a 24.1% internal rate of return, with an initial capital cost of $2.3 billion. Average annual production over the first seven years is projected to be 106,000 tonnes of copper and 3.7 million tonnes of iron concentrate. CEO John MacKenzie emphasized the project's enhanced economics and its potential role in supporting global decarbonization efforts.

During Q3, Capstone Copper acquired the Sierra Norte deposit in Chile for $40 million in shares, which could provide a future sulfide feed source for the Santo Domingo project. Following the quarter, the company announced the Mantoverde Optimized Expansion Project, which aims to increase sulfide concentrator throughput from 32,000 to 45,000 tonnes per day, extending the mine life to 25 years.