Capstone Copper Reports Fourth Quarter 2024 Results
NEWS RELEASE TSX:CS ● ASX:CSC ● capstonecopper.com
February 19, 2025
Capstone Copper Reports Fourth Quarter 2024 Results
All amounts in US$ unless otherwise indicated
Vancouver, British Columbia – Capstone Copper Corp. (“Capstone” or the “Company”) (TSX: CS) (ASX: CSC) today reported financial results for the three months and year ended December 31, 2024 (“Q4 2024”). Copper production in Q4 2024 totaled 53,942 tonnes at C1 cash costs1 of $2.56 per payable pound of copper produced. Link HERE for Capstone’s Q4 2024 webcast presentation.
John MacKenzie, CEO of Capstone, commented: "We achieved record copper production and EBITDA generation in 2024, representing tangible delivery on our peer leading growth. During the year we realized the first phase of the transformation of Capstone Copper by ramping up Mantoverde and Mantos Blancos, while improving our balance sheet strength and financial flexibility. As we delivered near-term growth, we also advanced our future phases of growth by releasing feasibility studies for Mantoverde Optimized and the neighbouring Santo Domingo project. This year represents an inflection point for Capstone, with our recently released 2025 guidance demonstrating increased cash flow generation highlighted by continued copper production growth and decreasing unit costs. We will be focused on operational execution across our portfolio and further deleveraging of our balance sheet, while continuing to advance our pipeline of organic opportunities. It is our intention to commence construction of the highly attractive Mantoverde Optimized project in the second half of 2025, once the permit has been received."
Q4 2024 OPERATIONAL AND FINANCIAL HIGHLIGHTS
- Consolidated copper production for Q4 2024 was 53,942 tonnes at C1 cash costs1 of $2.56/lb. Consolidated copper production consisted of 22,029 tonnes at Mantoverde, 13,563 tonnes at Mantos Blancos, 11,626 tonnes at Pinto Valley and 6,724 tonnes at Cozamin. Total Q4 2024 copper sold of 50,014 payable tonnes was approximately 2,300 tonnes below payable production. This was directly impacted by seasonal swells at load ports in Chile. Record consolidated copper production for the full year ended December 31, 2024 was 184,460 tonnes at C1 cash costs1 of $2.77/lb.
- Net income attributable to shareholders of $45.9 million, or $0.06 per share for Q4 2024 compared to net loss attributable to shareholders of $12.3 million, or $(0.02) per share for Q4 2023, primarily due to higher copper production and a higher realized copper price of $4.04/lb compared to $3.74/lb. Net income attributable to shareholders for the full year was $82.9 million or $0.11
per share.
- Adjusted net income attributable to shareholders1 of $29.6 million, or $0.04 per share for Q4 2024, compared to adjusted net income attributable to shareholders1 of $10.8 million in Q4 2023. Adjusted net income attributable to shareholders1 for the full year was $71.5 million or $0.10
per share.
- Adjusted EBITDA1 nearly doubled to $171.9 million for Q4 2024 compared to $88.3 million for Q4 2023. The increase in Adjusted EBITDA1 is primarily driven by higher copper production and realized copper price and was impacted by the seasonal swells at load ports in Chile. Adjusted EBITDA1 for the full year was $496.1 million.
- Operating cash flow before changes in working capital of $132.8 million in Q4 2024 compared to $80.4 million in Q4 2023. Operating cash flow before changes in working capital for the full
year was $414.8 million.
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”.
- Net debt1 of $742.0 million as at December 31, 2024 was slightly lower compared to net debt of $750.7 million as at September 30, 2024 and significantly decreased compared to $927.2 million as at December 31, 2023, with the MVDP capital build complete. Total available liquidity1 of $506.4 million as at December 31, 2024, comprising of $132.4 million of cash and short-term investments, and $374.0 million of undrawn amounts on the corporate revolving credit facility.
- During Q4 2024, the Company announced the results of a Feasibility Study for its Mantoverde Optimized brownfield expansion project. Mantoverde Optimized is a capital efficient expansion of the existing sulphide concentrator from throughput of 32,000 to 45,000 ore tpd. The study increased sulphide reserves from 236 million tonnes at 0.60% copper to 398 million tonnes at 0.49% copper and 0.10 g/t gold, which extended the mine life from 19 to 25 years. MV Optimized is a high return and low risk expansion project that is expected to bring on an additional 20,000 tonnes of copper per annum for approximately $146 million of expansionary capital.
- During Q4 2024, the Company announced its leadership succession plan. At the next Annual General Meeting on May 2, 2025, John MacKenzie will transition from CEO and be nominated to the role of Non-Executive Chair of the Board, with Cashel Meagher succeeding him as CEO and also to be nominated as a member of the Board, while James Whittaker will become COO. Founder of Capstone Mining Corp. and current Chair of Capstone Copper, Darren Pylot, will step down from the Board after more than 20 years of combined service to the Company.
- Expected 2025 consolidated copper production growth of approximately 30% mostly driven by a full-year of production from Mantoverde sulphides, resulting in 2025 production guidance of 220,000 to 255,000 tonnes of copper at approximately 15% lower C1 cash costs1 of $2.20 to $2.50 per payable pound of copper.
- In January 2025, Mantoverde sulphides produced a record 6,600 tonnes of copper driven by mill throughput of 33,409 tpd, copper grades of 0.79%, and copper recoveries of 81.0%, marking the first month with average throughput exceeding the plant's nameplate capacity. In addition, Mantos Blancos sulphides produced 4,226 tonnes of copper in January 2025, driven by mill throughput of 20,628 tpd, copper grades of 0.83%, and copper recoveries of 80.1%, highlighting a third consecutive month operating above its nameplate capacity.
OPERATIONAL OVERVIEW
Refer to Capstone's Q4 2024 MD&A and Financial Statements for detailed operating results.
Q4 2024 Q4 2023 2024 2023 Copper production (tonnes)
Sulphide business
| Pinto Valley | 11,626 | 15,890 | 57,272 | 55,090 |
| Cozamin | 6,724 | 6,540 | 24,907 | 24,340 |
| Mantos Blancos | 12,165 | 9,702 | 37,744 | 38,002 |
| Mantoverde | 13,580 | — | 21,777 | — |
| Total sulphides | 44,095 | 32,132 | 141,700 | 117,432 |
| Copper sold (tonnes) | 50,014 | 43,283 | 175,201 | 160,194 |
| Realized copper price1($/pound) | 4.04 | 3.74 | 4.16 | 3.84 |
| Cathode business Mantos Blancos 1,398 Mantoverde2 8,449 | ||||
|---|---|---|---|---|
| 1,920 10,001 | 6,830 35,930 | 11,520 35,401 | ||
| Total cathodes | 9,847 | 11,921 | 42,760 | 46,921 |
| Consolidated | 53,942 | 44,053 | 184,460 | 164,353 |
| Copper sales |
| C1 cash costs1 ($/pound) produced | ||
|---|---|---|
| C1 cash costs | 1 | ($/pound) produced |
Sulphides business
| Pinto Valley | 3.30 | 2.36 | 2.77 | 2.79 |
| Cozamin | 1.55 | 1.76 | 1.75 | 1.74 |
| Mantos Blancos | 2.30 | 2.58 | 2.95 | 2.74 |
| Mantoverde | 1.83 | — | 2.09 | — |
| Total sulphides | 2.31 | 2.30 | 2.53 | 2.56 |
Cathode business
| Mantos Blancos | 3.70 | 3.32 | 3.41 | 3.11 |
| Mantoverde | 3.62 | 3.68 | 3.53 | 3.83 |
| Total cathodes | 3.63 | 3.62 | 3.51 | 3.66 |
| Consolidated | 2.56 | 2.67 | 2.77 | 2.88 |
2 Mantoverde production shown on a 100% basis.
Consolidated Production
Q4 2024 copper production of 53,942 tonnes was 22% higher than Q4 2023 primarily as a result of sulphide production ramping up at Mantoverde and Mantos Blancos.
Q4 2024 C1 cash costs1 of $2.56/lb were 4% lower than $2.67/lb Q4 2023 mainly due to higher production (-$0.24/lb), partially offset by lower capitalized stripping costs ($0.15/lb).
2024 consolidated production of 184,460 tonnes of copper was 12% higher than 164,353 tonnes in 2023, mainly due to the start of concentrate production at Mantoverde, partially offset by lower cathode production at Mantos Blancos. Cozamin and Pinto Valley production was consistent with the prior year.
2024 C1 cash costs1 of $2.77/lb were 4% lower than $2.88/lb 2023 due to higher copper production (-$0.20/ lb), partially offset by lower capitalized stripping costs ($0.09/lb).
Pinto Valley Mine
Copper production of 11.6 thousand tonnes in Q4 2024 was 27% lower than in Q4 2023 due to ore face position resulting in lower grades (Q4 2024 – 0.30% versus Q4 2023 - 0.36%) and lower mill throughput during the quarter (Q4 2024 - 45,148 tpd versus Q4 2023 - 53,134 tpd). Mill throughput in Q4 2024 was impacted by unplanned downtime as a result of mechanical failures and electrical issues, and unscheduled maintenance on one of the six ball mills which led to the concentrator operating at a reduced rate for a period of 18 days.
2024 production was 4% higher than 2023 due to slightly higher mill throughput (49,461 tpd 2024 versus 49,273 tpd 2023), higher feed grade tied to mine plan sequence (0.34% in 2024 versus 0.33% in 2023) and slightly higher recoveries (87.4% 2024 versus 87.2% 2023).
C1 cash costs1 of $3.30/lb in Q4 2024 were 40% higher than Q4 2023 of $2.36/lb primarily due to lower production volume ($1.13/lb) and with minimal impact from operating costs ($0.05/lb), partially offset by lower treatment costs (-$0.24/lb).
2024 C1 cash costs1 of $2.77/lb were 1% lower compared to the same period last year of $2.79/lb primarily due to higher production volume (-$0.11/lb) and increased deferred stripping (-$0.18/lb), partially offset by increased operating costs ($0.17/lb) due to spend on equipment maintenance and contractors and higher electricity rates ($0.091/kWh in 2024 versus $0.079/kWh in 2023), and lower by-product credits ($0.09/lb).
Mantos Blancos Mine
Q4 2024 production was 13.6 thousand tonnes, composed of 12.2 thousand tonnes from sulphide operations and 1.4 thousand tonnes of cathode from oxide operations, which was 17% higher than the 11.6 thousand tonnes produced in Q4 2023. Sulphide production increased in Q4 2024 driven by the successful ramp-up of the concentrator after the installation of new equipment in the tailings handling area during Q3 2024. Overall in Q4 2024, Mantos Blancos averaged sulphide plant throughput of approximately 19,579 tpd, including an average of 20,137 tpd through November and December (compared to 16,027 tpd overall in 2024 and 14,635 tpd in 2023). Lower cathode production was impacted by lower planned dump throughput and grade in line with the 2024 mine plan.
2024 production of 44.6 thousand tonnes, composed of 37.7 thousand tonnes of copper in concentrate and 6.8 thousand tonnes of cathodes, was 10% lower than 2023, mainly explained by 43% lower cathode production due to lower dump throughput and grade in line with the 2024 plan, and to a lesser extent by lower sulphides feed grades as a result of mine sequence (0.81% in 2024 versus 0.91% in 2023).
Combined Q4 2024 C1 cash costs1 of $2.45/lb ($2.30/lb sulphides and $3.70/lb cathodes) were 10% lower compared to combined C1 cash costs1 of $2.71/lb in Q4 2023, mainly due to higher copper concentrate production (-$0.39/lb) and lower diesel prices (-$0.06/lb), partially offset by higher mine expense as a result of mine sequence ($0.18/lb).
Combined 2024 C1 cash costs1 of $3.02/lb ($2.95/lb sulphides and $3.41/lb cathodes) were 7% higher compared to $2.83/lb in 2023 mainly due to lower production in line with plan ($0.32/lb) partially offset by lower acid and energy consumption (-$0.10/lb).
Mantoverde Mine
Q4 2024 copper production of 22.0 thousand tonnes, composed of 13.6 thousand tonnes of copper from sulphide operations and 8.4 thousand tonnes of cathode, was 120% higher compared to 10.0 thousand tonnes in Q4 2023 driven by the ramp-up of MVDP. Heap production decreased in Q4 2024 driven by lower grades (0.31% in Q3 2024 versus 0.41% in Q4 2023) as expected by the mining sequence and lower throughput (2,512kt in Q4 2024 versus 2,831kt in Q4 2023), which was partially offset by higher recoveries (79.7% in Q4 2024 versus 64.6% in Q4 2023).
Mantoverde sulphides posted record quarterly copper production of 13,580 tonnes from the new sulphide concentrator in Q4 2024. During the quarter, plant throughput averaged 24,848 tpd, copper grades averaged 0.80%, and physical copper recoveries averaged 74.4%. Plant throughput was impacted by a combination of planned and unplanned downtime, with the planned downtime used to improve recoveries, and the unplanned downtime mostly driven by typical ramp-up issues. Plant availability and recoveries have steadily increased since first copper production in June, and in December, plant throughput averaged 27,105 tpd, copper grades averaged 0.73%, and physical copper recoveries averaged 84.8%.
2024 production of 57.7 thousand tonnes was 63% higher than 2023 mainly due to copper in concentrate production of 21.8 thousand tonnes and higher cathode production by 0.5 thousand tonnes mainly driven by higher heap recovery and grade as a result of mine sequence (0.35% in 2024 versus 0.34% in 2023).
Q4 2024 C1 cash costs1 were $2.53/lb, 31% lower than $3.68/lb in Q4 2023 due to higher production of lowcost sulphides (-$1.19/lb), lower energy prices (-$0.16/lb) which averaged $0.09/kWh in Q4 2024 versus $0.17/kWh in Q4 2023, and lower acid consumption related to lower throughput (-$0.12/lb), partially offset by an increase in contracted services, spare parts and labour cost mainly driven by higher mine movement ($0.34/lb).
2024 C1 cash costs1 were $3.00/lb, 22% lower than $3.83/lb in 2023, mainly related to higher production (-$0.91/lb), lower energy price due to contract conditions effective January 2024 (-$0.26/lb), lower acid prices and consumption related to lower throughput (-$0.14/lb), which was partially offset by an increase in contracted services, spare parts and labour cost mainly driven by higher mine movement ($0.49/lb).
Cozamin Mine
Q4 2024 copper production of 6.7 thousand tonnes was 2% higher than in the prior year, mainly on higher grades (2.03% in Q4 2024 versus 1.95% in Q4 2023) driven by mine sequence. Mill throughput and recoveries were consistent quarter over quarter.
2024 production was 2% higher than 2023 due to higher grades (1.96% in 2024 versus 1.89% in 2023), consistent with the mine plan, which was partially offset by slightly lower mill throughput (3,581 tpd in 2024 versus 3,639 tpd in 2023). Recoveries were consistent with the same period previous year.
Q4 2024 C1 cash costs1 were $1.55/lb, 12% lower than in the same period previous year, mainly due to higher production, higher silver by-product volume and price (-$0.12/lb), as well as lower operating costs than the previous year (-$0.07/lb) impacted by a weakening of the Mexican peso relative to the US dollar.
2024 C1 cash costs1 were consistent with the previous year: higher costs in manpower for hourly employees bonus profit sharing increase and the change in mining method which resulted in an increase in higher contractor utilization, which were offset by more pounds payable produced and higher by-product silver prices and volume.
Mantoverde Development Project
The Mantoverde Development Project ("MVDP") involved the addition of a sulphide concentrator (nominal 32,000 ore tonnes per day ("tpd")) and tailings storage facility, and the expansion of the existing desalination plant and other minor infrastructure, in order to process sulphide ore. Mantoverde continues to process oxide ore through heap and dump run of mine leaching and a conventional solvent extraction and electrowinning ("SX-EW") plant. The final total project capital spent was $870 million which was in line with the revised budget of $870 million and compared to the initial Capstone Copper estimate of $825 million.
After producing first copper concentrate in June 2024, the MVDP achieved commercial production on September 21, 2024, and the mill ramped up to full nominal milling rates by year end, including a peak individual daily throughput of 37,989 tpd in 2024.
Mantoverde sulphides posted quarterly copper production of 13,580 tonnes from the new sulphide concentrator in Q4 2024. During the quarter, plant throughput averaged 24,848 tpd, copper grades averaged 0.80%, and copper recoveries averaged 74.4%. Plant throughput was impacted by a combination of planned and unplanned downtime, with the planned downtime used to improve recoveries, and the unplanned downtime mostly driven by typical ramp-up issues. Examples of the issues faced in the quarter included a drive shaft assembly failure in the stockpile apron feeder - which forced operations to continue with only one feeder - and a frozen charge event in the ball mill due to a variable frequency drive failure. Plant availability and recoveries have steadily increased since first copper production in June, and in December, plant throughput averaged 27,105 tpd (November: 26,278 tpd, October: 21,206 tpd), copper grades averaged 0.73% (November: 0.85%, October 0.83%), and copper recoveries averaged 84.8% (November 70.9%, October 67.0%).
Subsequent to quarter end in January 2025, Mantoverde sulphides posted record monthly copper production of 6,600 tonnes, driven by plant throughput of 33,409 tpd, copper grades of 0.79%, and copper recoveries of 81.0%. Peak individual daily throughput totaled 38,511 tpd in January.
MV Optimized Feasibility Study
The Company announced its Mantoverde Optimized ("MV Optimized") Feasibility Study ("FS") on October 1, 2024. The project is a capital-efficient expansion of Mantoverde's sulphide concentrator, increasing throughput from 32,000 to 45,000 ore tpd and extending the mine life from 19 to 25 years. With an updated sulphide Mineral Reserve of 398 million tonnes at a copper grade of 0.49% (compared to 236 million tonnes at 0.60% copper previously), the project will yield an additional 368,000 tonnes of copper and 215,000 ounces of gold, with an initial expansionary capital investment of $146 million and an implied capital intensity of approximately $7,500 per copper tonne. Capstone Copper anticipates starting construction after receiving the DIA environmental permit approval, which is expected around the middle of 2025. The MV Optimized FS also features a robust life of mine after-tax NPV (8%) of $2.9 billion for Mantoverde operation on a 100%basis based on a long-term copper price of $4.10/lb and gold price of $1,800/oz.
Santo Domingo Feasibility Study & Sierra Norte Acquisition
Capstone Copper announced the results of an updated FS for its 100%-owned Santo Domingo copper-irongold project in Region III Chile, 35km northeast of Mantoverde on July 31, 2024. The updated FS, completed by Ausenco, outlines the next phase of transformational growth for the Company in the world-class Mantoverde-Santo Domingo ("MV-SD") district.
The 2024 FS for Santo Domingo outlines a robust copper-iron-gold project with an after-tax NPV (8%) of $1.7 billion and an after-tax internal rate of return of 24.1%. Total initial capital cost of $2.3 billion drives a capital intensity of approximately $21,900 per tonne of annual copper equivalent production over the life of mine. Over the first seven years of the mine plan, production is expected to average 106,000 tonnes of copper and 3.7 million tonnes of iron ore magnetite concentrate at first quartile cash costs of $0.28 per payable pound of copper produced.
The 19-year Santo Domingo mine life is supported by an increased Mineral Reserve estimate of 436 million tonnes (compared to 392 million tonnes previously) at a copper grade of 0.33%, iron ore grade of 26.5%, and a gold grade of 0.05 grams per tonne. Increased Measured & Indicated ("M&I") Mineral Resources total 547 million tonnes (compared to 537 million tonnes previously) at a copper grade of 0.31% and a gold grade of 0.04 grams per tonne, including 506 million tonnes with an iron grade of 25.8%.
The FS updated the level of engineering to Association for the Advancement of Cost Engineering ("AACE") Class 3. Further detailed engineering will increase the precision of capital estimates to AACE Class 2 over the balance of 2025.
In Q3 2024, Capstone Copper acquired 100% of the shares of Sierra Norte for $40 million in share consideration. Sierra Norte is located approximately 15 kilometers northwest of the Santo Domingo Project and represents an opportunity to potentially be a future sulphide feed source for Santo Domingo, extending the higher grade copper sulphide life. Potential oxide material at Sierra Norte represents an opportunity to be a future oxide feed for Mantoverde's underutilized SX-EW plant.
The Company is progressing partnership and financing discussions for the Santo Domingo project, while in parallel advancing opportunities to incorporate the recently acquired Sierra Norte project and Santo Domingo’s copper oxide material into the mine plan.
Copper Oxides Opportunity
Capstone Copper plans to progress drilling and studies regarding the processing of oxide material from the Company’s Santo Domingo and Sierra Norte deposits by leveraging Mantoverde’s infrastructure and excess SX-EW capacity. To date, oxide materials have been recognized in the shallower portions of the Santo Domingo, Iris Norte, and Estrellita sulphide ore bodies. Some of these oxide resources are considered as waste material in the Santo Domingo 2024 FS. Meanwhile, only slightly more than half of the processing capacity is being used at Mantoverde’s SX-EW cathode copper plant. Exploration efforts at Santo Domingo will target a potential 80-100 million tonnes of oxide material, which could add up to 10 thousand tonnes per annum of copper production.
Exploration Opportunities in the MV-SD District
Capstone Copper has significant untapped exploration potential within MV-SD district. The Mantoverde Optimized plan was prepared without completing any expansionary drilling since 2019. At Mantoverde, there are 0.2 billion tonnes of M&I and 0.6 billion tonnes of Inferred sulphide resources not in reserves. Exploration targets also include the northern extension (~10km long) of the projection of the prospective Atacama fault system. At Santo Domingo, there are 0.1 billion tonnes of M&I and 0.2 billion tonnes of Inferred sulphide resources not in reserves. The recently acquired Sierra Norte property also represents an opportunity to potentially be a future feed source in the district. Capstone Copper intends to progress its exploration strategy to service its two eventual processing centers between Mantoverde and Santo Domingo, in addition to drilling that is currently underway at Mantoverde to evaluate the potential for Mantoverde Phase II, which could include the addition of an entire second processing line at Mantoverde.
Mantoverde - Santo Domingo Pyrite Augmentation & Cobalt Study
A district cobalt plant for the MV-SD district is designed to unlock cobalt production while reducing sulphuric acid consumption and increasing heap leach copper production. The cobalt recovery process comprises a pyrite flotation step to recover cobaltiferous pyrite from the tailings streams at Mantoverde and Santo Domingo and redirect it to the dynamic heap leach pads, which will be upgraded to a bioleach configuration through the addition of an aeration system as part of MV Optimized. The pyrite oxidizes in the leach pads and the solubilized cobalt is recovered via an ion exchange plant treating a bleed stream from the copper solvent extraction plant. The approach has been successfully demonstrated at the bench and pilot scales.
As currently envisioned, a smaller capacity countercurrent ion-exchange plant will initially treat cobalt byproduct streams from Mantoverde producing up to 1,500 tonnes per annum of cobalt, and following sanctioning of the Santo Domingo project, the facility will be expanded to accommodate by-product streams from Santo Domingo. An initial study focused on Mantoverde's pyrite augmentation and cobalt opportunity is expected in 2025, followed by a Santo Domingo study in 2026, for a combined MV-SD target of 4,500 to 6,000 tonnes per annum of mined cobalt production.
Mantos Blancos Phase II Study
The Company is currently evaluating the next phase of growth for Mantos Blancos, which is analyzing the potential to increase the concentrator plant's throughput to at least 27,000 tpd and increase cathode production from the underutilized SX-EW plant. The sulphide concentrator plant expansion is expected to utilize existing and unused or underutilized process equipment, such as two idled ball mills, plus additional equipment for concentrate filtration, thickening and filtering of tailings. The increase in cathode production is being evaluated based on an opportunity to re-leach spent ore from historical VAT leaching operations and coarse/fine tailings material. The increase in cathode production would utilize existing SX-EW plant capacity, with the addition of a dynamic leach pad, agglomeration and stacking infrastructure. The Mantos Blancos Phase II study is expected around the end of 2025.
PV District Growth Study
The Company continues to review and evaluate the consolidation potential of the Pinto Valley district. Opportunities under evaluation include a potential mill expansion and increased leaching capacity supported by optimized water, heap and dump leach, and tailings infrastructure. Pinto Valley district consolidation could unlock significant ESG opportunities and may transform the Company's approach to create value for all stakeholders in the Globe-Miami District.
Leadership Succession Plan
As previously announced the following leadership changes will take effect at the next Annual General Meeting of the Company on May 2, 2025:
- John MacKenzie will transition from Chief Executive Officer and will be nominated to the role of Non- Executive Chair of the Capstone Copper Board of Directors;
- Cashel Meagher, current President and Chief Operating Officer, will succeed Mr. MacKenzie as CEO of Capstone Copper, and will also be nominated as a member of the Board;
- James Whittaker, current Senior Vice President, Head of Chile, will succeed Mr. Meagher as COO. This facilitates a flattening of the organizational structure with all mine general managers reporting directly to the COO;
- Darren M. Pylot, founder of Capstone Mining Corp. ("Capstone Mining") and current Chair of the Board, will end his term on the Board after over 20 years with Capstone Mining as a founder and CEO, and subsequently as Chair of the Board of Capstone Copper.
On January 13, 2025, Capstone Copper announced the appointment of Rick Coleman to the Board of Directors effective January 15, 2025.
Corporate Exploration Update
Cozamin: Exploration drilling continued in Q4 2024 at Cozamin targeting step-outs up-dip and down-dip from the Mala Noche West Target and also down-dip of other historical Mala Noche Vein workings. Drilling was conducted with one underground rig positioned at the level 19.1 cross-cut, a second underground rig positioned at the level 12.7 cross-cut, and one surface rig.
Copper Cities, Arizona: On January 20, 2022, Capstone Mining announced that it had entered into an access agreement with BHP Copper Inc. ("BHP") to conduct drill and metallurgical test-work at BHP's Copper Cities project ("Copper Cities"), located approximately 10 km east of the Pinto Valley mine. This access agreement was recently extended to July 2025. Drilling with two surface rigs twinning historical drill holes was completed in 2022 with metallurgical testing continuing in 2024. District consolidation opportunities are being evaluated.
Mantoverde, Santo Domingo, Sierra Norte and Mantos Blancos, Chile: Mantoverde's exploration drill program commenced in Q4 2024. The program will first target the areas closer to MV Optimized pit focusing on improving copper grades and mineralization continuity within and nearby the pit boundaries. The program will also test areas to the north of the pit to potentially increase the mineral resource. An Induced Polarization (IP) geophysical survey began in Q4 at Mantoverde with the focus to cover the northern extension (~10km long) of the projection of the prospective Atacama fault system. At Sierra Norte work commenced with a revision and validation of the historic drilling database and geological model. Infill drilling continues during Q4 2024 at Mantos Blancos in Phases 15 and 16 and exploration drilling progressed testing the Nora-Quinta target. A high-resolution magnetic survey was also completed at Mantos Blancos during Q4 2024.
2025 Guidance
Production, cash cost, capital expenditures and exploration investment guidance for 2025 remains unchanged from the most recently released guidance as outlined in the news release "Capstone Copper Announces 2024 Production Results and Provides 2025 Guidance" dated January 20, 2025.
2025 forecasted production volumes of 220,000 to 255,000 tonnes of copper are expected to increase by approximately 19% to 38%, while 2025 forecasted C1 cash costs of $2.20 to $2.50 per payable pound of copper are expected to decrease by approximately 10% to 20%, compared to 2024.
In 2025, the Company plans to spend a total of $315 million in sustaining and expansionary capital expenditures at its operating mines and the Santo Domingo Project. This is broken down into $255 million on sustaining capital and $60 million on expansionary capital. In addition, the Company plans to spend a total of $210 million in capitalized stripping at its three open pit mines.
The Company plans to spend $25 million in brownfield and greenfield exploration activities in 2025. The brownfield exploration is focused on resource conversion at Pinto Valley, Mantoverde, Mantos Blancos, Cozamin and Santo Domingo. The greenfield exploration relates to expansionary work in the highly prospective northern area of the Mantoverde land package and at Sierra Norte.
FINANCIAL OVERVIEW
Please refer to Capstone's Q4 2024 MD&A and Financial Statements for detailed financial results.
| ($ millions, except per share data) | Q4 2024 | Q4 2023 | 2024 | 2023 |
| Revenue | 446.9 | 353.7 | 1,599.2 | 1,345.5 |
| Net income (loss) | 47.2 | (19.5) | 85.9 | (124.7) |
| Net income (loss) attributable to shareholders | 45.9 | (12.3) | 82.9 | (101.7) |
Net income (loss) attributable to shareholders per common share - basic and diluted ($) 0.06 (0.02) 0.11 (0.15)
Adjusted net income1 29.6 10.8 71.5 0.3 Adjusted net income attributable to shareholders per common share - basic and diluted 0.04 0.02 0.10 —
Operating cash flow before changes in working
capital 132.8 80.4 414.8 204.8
Adjusted EBITDA1 171.9 88.3 496.1 260.3
Realized copper price1
($/pound) 4.04 3.74 4.16 3.84
($ millions) December 31, 2024 December 31, 2023 Net debt1 (742.0) (927.2) Attributable net (debt)/cash1 (600.6) (776.6)
CONFERENCE CALL AND WEBCAST DETAILS
Capstone will host a conference call and webcast on Wednesday, February 19, at 5:00 pm Eastern Time / 2:00 pm Pacific Time (Thursday, February 20, 2025, 9:00 am Australian Eastern Daylight Time). Link to the audio webcast: https://app.webinar.net/pWrNOolZnQV
Dial-in numbers for the audio-only portion of the conference call are below. Due to an increase in call volume, please dial-in at least five minutes prior to the call to ensure placement into the conference line on time.
Toronto: 1-437-900-0527 Australia: 61-280-171-385 North America toll free: 1-888-510-2154
A replay of the conference call will be available until February 26, 2025. Dial-in numbers for Toronto: 1-289-819-1450 and North American toll free: 1-888-660-6345. The replay code is 65051#. Following the replay, an audio file will be available on Capstone’s website at https://capstonecopper.com/investors/eventsand-presentations/.
Contact Information
Daniel Sampieri, Vice President, Investor Relations 437-788-1767 [email protected]
Michael Slifirski, Director, Investor Relations, APAC Region (+61) 412-251-818 [email protected]
Claire Stirling, Manager, Investor Relations 416-831-8908 [email protected]
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This document may contain “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this document and the Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation.
Forward-looking statements relate to future events or future performance and reflect the Company's expectations or beliefs regarding future events. The Company's Sustainable Development Strategy goals and strategies are based on a number of assumptions, including, but not limited to, the reliability of data sources; the biodiversity and climate-change consequences; availability and effectiveness of technologies needed to achieve the Company's sustainability goals and priorities; availability of land or other opportunities for conservation, rehabilitation or capacity building on commercially reasonable terms and the Company's ability to obtain any required external approvals or consensus for such opportunities; the availability of clean energy sources and zero-emissions alternatives for transportation on reasonable terms; availability of resources to achieve the goals in a timely manner, the Company's ability to successfully implement new technology; and the performance of new technologies in accordance with the Company's expectations.
Forward-looking statements include, but are not limited to, statements with respect to the estimation of Mineral Resources and Mineral Reserves, the success of the underground paste backfill and tailings filtration projects at Cozamin, the results of the Optimized Mantoverde Development Project ("MV Optimized FS") and Mantoverde Phase II study, the timing and results of PV District Growth Study (as defined below), the timing and results of Mantos Blancos Phase II Feasibility Study, the timing and success of the Mantoverde - Santo Domingo Cobalt Feasibility Study, the results of the Santo Domingo FS Update and success of incorporating synergies previously identified in the Mantoverde - Santo Domingo District Integration Plan, the timing and results of exploration and potential opportunities at Sierra Norte, the realization of Mineral Reserve estimates, the timing and amount of estimated future production, the costs of production and capital expenditures and reclamation, the timing and costs of the Minto obligations and other obligations related to the closure of the Minto Mine, the budgets for exploration at Cozamin, Santo Domingo, Pinto Valley, Mantos Blancos, Mantoverde, and other exploration projects, the timing and success of the Copper Cities project, the success of the Company's mining operations, the continuing success of mineral