Capstone Copper Posts $42.3M Loss in Q3 Despite Higher Copper Prices
Quarterly Financial Overview
Capstone Copper reported a net loss of $42.3 million for the third quarter of 2023, equating to a $0.05 loss per share, contrasting the net income reported in the same period last year. Despite a rise in copper prices to $3.75 per pound, the company experienced a decrease in copper sold, leading to a lower adjusted net loss for shareholders at $15.8 million, or $0.02 per share.
Operational Challenges and Production
The company faced operational difficulties, including an unplanned eight-day shutdown affecting production. These disruptions contributed to a rise in the quarter's consolidated cash costs to $2.88 per pound. Capstone produced 40.3 thousand tonnes of copper during this period and anticipates its second-half production to align with earlier forecasts, albeit with cash costs expected at the upper limit of their guidance.
Project Development and Liquidity
Capstone's Mantoverde Development Project is reported to be 93% complete, with an expected increase in total project cost to $870 million, inclusive of additional improvement expenditures. Despite increased costs, the project is still slated for completion by the end of 2023. The company maintains substantial liquidity, with $424.5 million available, including cash, short-term investments, and undrawn corporate credit facilities.
