Capstone Copper (CS) Q3 2024 earnings summary

Executive summary

• Q3 2024 copper production reached 47,500 tons, up 16–18% year-over-year, driven by Mantoverde's commercial production and milestones at Mantos Blancos.

• Mantoverde Development Project achieved commercial production in September, with first concentrate shipments completed.

• Leadership succession plan announced: Cashel Meagher to become CEO, John MacKenzie to become Board Chair at next AGM, with transition set for May 2025.

• Released Mantoverde Optimized Feasibility Study, targeting significant production growth, 25-year mine life, and lower costs.

• Net income attributable to shareholders was $12.5 million ($0.02/share) versus a net loss of $32.9 million in Q3 2023, reflecting higher production and copper prices.

Financial highlights

• Adjusted EBITDA for Q3 was $120.8 million, nearly doubling year-over-year.

• Q3 2024 copper production totaled 47,460–47,500 tonnes; sales were 44,684 tonnes.

• Realized copper price was $4.24/lb, above the LME average; gross margin was $1.41/lb (33%).

• Net debt stood at $751 million as of September 30, 2024, with available liquidity of $515.6–$516 million.

• Adjusted net income was $25.4 million ($0.03/share); revenue for Q3 was $419.4 million.

Outlook and guidance

• 2024 copper production expected at the low end of 190,000–220,000 tonnes guidance; C1 cash cost guidance revised to $2.60–$2.80/lb due to later ramp-ups at Mantoverde and Mantos Blancos.

• Q4 anticipated to be the strongest quarter, with higher production and lower unit costs.

• Mantoverde and Mantos Blancos trending to low end or below production guidance and above cost guidance.

• Mantoverde Optimized and Santo Domingo projects to drive future growth, with Mantoverde Optimized expected to be financed internally.

• Upcoming catalysts include MVDP ramp-up, MV-O DIA permit, SD partnership process, and MB Phase II study.