Capstone Copper (ASX:CSC, TSX:CS) has reported a productive third quarter for 2024. For the period ending 30 September, Capstone achieved a consolidated copper production of 47,460 tonnes, marking an 18% increase over the prior year's third quarter. This rise was attributed primarily to the Mantoverde Development Project (MVDP) in Chile, which reached commercial production status. The company highlighted that MVDP's production ramp-up continues, with the project budget aligning with estimates at $870m.
CEO John MacKenzie expressed confidence in the company’s growth trajectory, stating, “The third quarter marked an important step in the transformation of our business, with tangible delivery on our peer-leading growth.” He added that Q4 is anticipated to be the strongest quarter, with further production increases and cost reductions expected.
Financially, Capstone reported net income attributable to shareholders of $12.5m, a significant improvement from a $32.9m loss in the same quarter last year. Adjusted EBITDA nearly doubled to $120.8m, supported by higher copper production and a favourable copper price, which averaged $4.24 per pound. Operating cash flow before changes in working capital reached $116.9m, up from $59.2m in Q3 2023.
Despite the positive results, Capstone’s production guidance for 2024 has been revised, with the company expecting copper production to finish at the lower end of its original range of 190,000 to 220,000 tonnes. This adjustment reflects delays in the ramp-up at both Mantoverde and Mantos Blancos, which also influenced C1 cash costs, revised to $2.60 to $2.80 per pound.
Beyond operational achievements, Capstone’s strategic initiatives are progressing. The recently announced Mantoverde Optimized expansion project aims to increase copper production capacity at a low capital cost, with construction expected to commence following environmental approvals in 2025. Additionally, the Santo Domingo project feasibility study projects an after-tax NPV of $1.72bn, promising to drive long-term value with substantial copper and iron production capacity.
Shares are trading 3.56% lower at $10.58.
