Capstone Copper (CS) Q4 2025 earnings summary

Executive summary

• Achieved record copper production and EBITDA in 2025, up 22% year-over-year, driven by Mantoverde and Mantos Blancos ramp-ups, with record low C1 cash costs and strong operational execution.

• Major growth projects advanced, including Mantoverde Optimized construction, Santo Domingo partnership, and expanded exploration in the Mantoverde-Santo Domingo district.

• Enhanced financial position through balance sheet refinancing, significant debt leverage reduction, and improved liquidity.

• Achieved 2025 annual production and cost guidance, with net debt/EBITDA reduced to 0.8x at year-end.

• Net income attributable to shareholders rose to $315.9M for 2025, driven by higher copper volumes and prices.

Financial highlights

• Q4 2025 revenue reached a record $685M, with full year revenue at $2,359.9M, both up significantly year-over-year.

• Q4 adjusted EBITDA was $308M, up 79% year-over-year; full year adjusted EBITDA was $952.7M.

• Q4 C1 cash costs were $2.31/lb, down 8% year-over-year; full year C1 cash costs were $2.44/lb, down 12%.

• Adjusted net income for Q4 2025 was $78.7M ($0.10/share); full year adjusted net income was $163.6M ($0.21/share).

• Available liquidity at year-end exceeded $1 billion, with $304M in cash and $711M undrawn credit.

Outlook and guidance

• 2026 copper production guidance: 200,000–230,000 tonnes at C1 cash costs of $2.45–$2.75/lb, with stable output and higher costs due to lower grades and inflation.

• Mantoverde expected to deliver 64–74kt sulphide copper at $1.25–$1.55/lb C1 cash cost; Mantos Blancos guidance: 38–44kt at $2.85–$3.15/lb.

• Sustaining capital for 2026 forecast at $270M; expansionary capital at $225M, mainly for Mantoverde Optimized.

• Exploration spending of $70M planned for 2026, focused on Mantoverde-Santo Domingo and other targets.

• Significant EBITDA and free cash flow growth expected in 2027 and beyond, with production potentially reaching 265,000 tonnes.