Capstone Copper (CS) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $533.3 million and adjusted EBITDA of $179.9 million in Q1 2025, driven by a 49–50% increase in sulphide copper production from ramp-ups at Mantoverde and Mantos Blancos, and higher realized copper prices.

• Consolidated copper production rose to 53,796 tonnes, with Mantoverde and Mantos Blancos delivering record results and throughput exceeding design in Jan/Mar.

• Net leverage improved to 1.3x net debt/EBITDA, with available liquidity exceeding $1 billion, supported by a $600 million senior unsecured notes offering and full repayment of the revolving credit facility.

• 2025 copper production guidance reiterated at 220,000–255,000 tonnes at C1 cash costs of $2.20–$2.50/lb, with major growth projects advancing on schedule.

• No material impact from tariffs or global economic uncertainty observed to date; focus remains on operational execution, cost control, and advancing growth projects.

Financial highlights

• Q1 2025 revenue reached $533.3 million, with copper sales of 53,134 tonnes at a realized price of $4.36/lb, up 13% year-over-year.

• Adjusted EBITDA more than doubled year-over-year to $179.9 million; adjusted net income attributable to shareholders was $8.1 million, or $0.01 per share.

• C1 cash costs decreased 10% year-over-year to $2.59/lb, with sulphide unit costs at $2.23/lb and cathode at $4.64/lb.

• Operating cash flow before working capital changes was $166.1 million, up from $62.1 million.

• Net debt increased modestly to $788 million due to working capital draw and non-recurring payments, but leverage ratio improved.

Outlook and guidance

• 2025 copper production guidance reiterated at 220,000–255,000 tonnes at C1 cash costs of $2.20–$2.50/lb; sulphide production expected at 185,000–215,000 tonnes at $1.85–$2.15/lb, cathode at 35,000–40,000 tonnes at $3.95–$4.25/lb.

• Capital expenditures for 2025: $255 million sustaining, $60 million expansionary, $210 million capital stripping, $25 million exploration.

• Mantoverde Optimized Project to proceed post-permit, with financing from internal cash flow; Santo Domingo sanctioning window opens mid-2026, contingent on market and internal criteria.

• Expectation for improved production and lower costs in subsequent quarters as maintenance impacts subside and ramp-ups mature.

• No expansion project sanctioned; future project decisions subject to macroeconomic and permitting risks.