Capstone Copper (CS) Q4 2024 earnings summary

Executive summary

• Achieved record consolidated copper production of 53.9 thousand tons in Q4 2024, with full-year output up 12% year-over-year to 184.5 thousand tons, driven by ramp-up at Mantoverde and Mantos Blancos sulphide operations.

• Net debt reduced to $742 million at year-end 2024 from $927 million in 2023, reflecting improved balance sheet strength.

• Released Mantoverde Optimized and Santo Domingo feasibility studies, outlining future growth phases and expansion plans.

• Implemented GHG reduction initiatives, exceeded tailings management targets, and signed a 35-year water agreement for Mantos Blancos.

• Announced 2025 guidance with higher copper output, lower unit costs, and leadership succession plan effective May 2025.

Financial highlights

• Q4 2024 revenues were $447 million, with a realized copper price of $4.04/lb and gross margin of $1.48/lb (37%).

• Adjusted Q4 EBITDA was $171.9 million, nearly doubling year-over-year; full-year Adjusted EBITDA reached $496.1 million.

• Net income attributable to shareholders was $45.9 million in Q4 2024 and $82.9 million for the year; adjusted net income for Q4 was $29.6 million.

• Net debt reduced by $185 million in 2024, ending at $742 million; net debt/EBITDA ratio improved from 3.6x to 1.5x.

• Available liquidity at year-end exceeded $500 million, including $132 million in cash and $374 million undrawn on a $700 million credit facility.

Outlook and guidance

• 2025 copper production guidance: 220,000–255,000 tonnes at C1 cash costs of $2.20–$2.50/lb, up 19–38% year-over-year.

• 2025 EBITDA projected at $800 million–$1.3 billion at copper prices between $4–$5/lb; expected to increase 80% year-over-year at mid-point guidance.

• Mantoverde Optimized project expected to receive permit mid-2025, with $146 million capex and construction to start in H2 2025.

• Santo Domingo sanctioning window targeted for 2026, contingent on net debt/EBITDA below 1x and full asset utilization.

• 2025 capex: $255M sustaining, $60M expansionary, $210M capital stripping, $25M exploration.