Capstone Copper Reports Second Quarter 2026 Results
NEWS RELEASE
TSX:CS ● ASX:CSC ● capstonecopper.com
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1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”.
July 30, 2026
Capstone Copper Reports Second Quarter 2026 Results
Record adjusted EBITDA1 of $354 million
Record revenue up 36% year-over-year
Record sulphide production at Mantoverde
Vancouver, British Columbia – Capstone Copper Corp. (“Capstone” or the “Company”) (TSX: CS) (ASX:
CSC) today reported financial results for the three and six months ended June 30, 2026 (“Q2 2026”). Link
HERE for Capstone’s Q2 2026 webcast presentation. Unless otherwise stated, results are presented in
United States dollars on a 100% basis.
Cashel Meagher, President and CEO of Capstone, commented: "We delivered strong operational results
at Mantoverde, Mantos Blancos, and Cozamin in Q2, which, together with higher copper prices, drove
record adjusted EBITDA1 for the seventh consecutive quarter. Results at Pinto Valley were impacted by
unplanned maintenance; however, a planned shutdown in the third quarter is expected to support improved
performance thereafter.
"With the first half of 2026 complete, we have reaffirmed our full-year guidance and are well set up for a
stronger second half. The new three-year labour agreements at Mantos Blancos, together with the
agreement signed earlier this year at Mantoverde, provide labour stability across our Chilean operations.
"We also advanced our growth pipeline: Mantoverde Optimized remains on schedule to begin ramping up in
late Q3; Capstone's Board approved the Mantoverde Pyrite Augmentation project, an EIA permit application
was submitted for Mantos Blancos, and detailed engineering progressed at our transformational Santo
Domingo project.
"Our pipeline of permitted, organic growth projects provides a capital-efficient and executable path to
approximately 375,000 tonnes of annual copper production and declining cash costs. With supportive
copper markets, a resilient operating platform, and clear momentum across the portfolio, Capstone is well
positioned to create lasting value through disciplined execution and a peer-leading growth pipeline."
Q2 2026 OPERATIONAL AND FINANCIAL HIGHLIGHTS
• Consolidated total contained copper production for Q2 2026 was 51,759 tonnes at C1 cash
costs1 of $2.82/lb. Contained copper production included a record 18,190 tonnes from
Mantoverde's sulphide business, driven by plant throughput averaging 36,264 tonnes per day, 13%
above design capacity.
• Record revenue of $739.7 million for Q2 2026 with a realized copper price of $6.22/lb,
compared with revenue of $543.2 million and a realized copper price of $4.39/lb for Q2 2025.
• Record adjusted EBITDA1 of $354.0 million for Q2 2026, compared to $215.6 million for Q2 2025,
primarily due to increased earnings from mining operations driven by higher realized copper, gold
and silver prices. This marks the seventh straight quarter of record adjusted EBITDA.
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 2
• Net income attributable to shareholders of $74.3 million, or $0.10 per share for Q2 2026,
compared to net income attributable to shareholders of $24.0 million, or $0.03 per share for Q2
2025, driven by increased earnings from mining operations which benefited from a higher realized
copper price.
• Record adjusted net income attributable to shareholders 1 of $97.6 million, or $0.13 per share
for Q2 2026, after adjusting for the impact of union bonuses at Mantos Blancos and other non-
recurring items during the quarter. This compares to adjusted net income attributable to
shareholders1 of $27.5 million or $0.04 per share for Q2 2025, driven by increased earnings from
mining operations which reflected higher realized copper prices.
• Operating cash flow before changes in working capital of $259.7 million in Q2 2026 compared
to $212.4 million in Q2 2025.
• Net debt1 decreased significantly to $674.9 million as at June 30, 2026, from $780.1 million as at
December 31, 2025, as a result of strong operating cash flow driven by higher realized copper, gold
and silver prices. Total available liquidity1 of $1,082.5 million as at June 30, 2026, composed of
$367.1 million of cash and cash equivalents, and $715.4 million of undrawn amounts on the $1
billion corporate revolving credit facility.
• 2026 production guidance of 200,000 to 230,000 tonnes of copper and C1 cash costs 1
guidance of $2.45 to $2.75 per payable pound of copper is unchanged. Higher production is
expected in the second half of 2026, largely driven by stronger throughput at Mantoverde following
completion of the MV Optimized project. Capstone's capital expenditure guidance is unchanged. For
more details see section 2026 Outlook.
• The Company's MV Optimized Project progressed according to plan during Q2 2026 and the
sulphide project tie- in is expected during Q3 2026. The capital cost estimate of $176 million is
unchanged. MV Optimized is a capital -efficient brownfield expansion project providing incremental
copper and gold production of approximately 20,000 tonnes and 6,000 ounces of gold per annum,
respectively.
• In June 2026, Capstone announced the ratification of new three- year collective bargaining
agreements with both unions at Mantos Blancos, within the legal timeframe established.
• In July 2026, Capstone's Board of Directors approved the Mantoverde Pyrite Augmentation project
("MVPA"), with formal sanctioning expected in Q3 2026 following joint venture partner approval. The
$45 million initiative is expected to be completed in early 2028 and is expected to reduce sulphuric
acid consumption by ~20% while increasing copper cathode production by ~3,500 tonnes per year.
The after-tax NPV(8%) of the project is estimated at ~$350 million at spot acid and copper prices,
and creates a future pathway to unlock by-product cobalt production from Mantoverde.
• Capstone published its 2025 Sustainability Report highlighting the advancement of our Sustainable
Development Strategy across the five priority areas of Climate, Water, Tailings, Biodiversity and
Communities.
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 3
OPERATIONAL OVERVIEW
Refer to Capstone's Q2 2026 MD&A and Financial Statements for detailed operating results.
Q2 2026 Q2 2025 2026 YTD 2025 YTD
Sulphide business
Copper production (tonnes)
Mantoverde2 18,190 16,507 31,923 32,775
Mantos Blancos 9,600 13,945 20,101 26,217
Pinto Valley 10,047 10,125 20,758 21,011
Cozamin 5,745 6,509 11,675 13,033
Total sulphides 43,582 47,086 84,457 93,036
C1 cash costs1 ($/pound) produced
Mantoverde2 0.86 1.51 1.06 1.51
Mantos Blancos 3.93 1.87 3.34 2.04
Pinto Valley 4.17 3.89 3.80 3.86
Cozamin 1.52 1.49 1.11 1.38
Total sulphides 2.39 2.20 2.28 2.17
Cathode business
Copper production (tonnes)
Mantoverde2 5,295 8,479 10,580 14,751
Mantos Blancos 2,882 1,851 4,682 3,425
Total cathodes 8,177 10,330 15,262 18,176
C1 cash costs1 ($/pound) produced
Mantoverde2 5.64 3.96 5.70 4.32
Mantos Blancos 3.95 3.64 4.07 3.79
Total cathodes 5.04 3.90 5.20 4.22
Consolidated
Copper production (tonnes) 51,759 57,416 99,719 111,212
C1 cash costs1 ($/pound) produced 2.82 2.45 2.74 2.52
Copper sold (tonnes) 50,651 53,977 97,227 107,112
Realized copper price1 ($/pound) 6.22 4.39 6.08 4.38
2 Mantoverde shown on a 100% basis (Capstone Copper ownership 70%).
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 4
Sulphide Business
Q2 2026 sulphide production of 43,582 tonnes of copper in concentrate was 7% lower than 47,086 tonnes in
Q2 2025. The decrease was driven primarily by Mantos Blancos, where lower production resulted from
lower sulphide grades and recoveries in line with mine sequence expectations. Pinto Valley sulphide
production of 10,047 tonnes was slightly lower than Q2 2025, driven by unplanned maintenance that
reduced plant throughput and recoveries. At Cozamin, sulphide production of 5,745 tonnes was 12% lower
than Q2 2025, impacted by lower grades and recoveries in line with planned mine sequence. These impacts
were partially offset by higher sulphide production at Mantoverde, supported by higher mill throughput and
recoveries compared to Q2 2025.
Q2 2026 sulphide C1 cash costs1 increased by 9% to $2.39/lb from $2.20/lb in Q2 2025, impacted by lower
production volumes and higher unit operating costs at Mantos Blancos ($3.93/lb), Pinto Valley ($4.17/lb),
and, to a lesser extent, Cozamin ($1.52/lb). These impacts were partially offset by lower unit costs from
Mantoverde ($0.86/lb), reflecting higher sulphide production, stronger by -product credits driven by higher
gold prices and favourable treatment and refining charges.
Cathode Business
Q2 2026 cathode production of 8,177 tonnes decreased by 21% from 10,330 tonnes in Q2 2025. The
decline was largely driven by lower cathode production at Mantoverde, primarily reflecting a cash flow
optimization strategy to reduce heap throughput of high calcium carbonate content ore, which requires
higher sulphuric acid consumption per tonne and is therefore uneconomic to process at current spot
sulphuric acid prices. This was partially offset by higher cathode production at Mantos Blancos, supported by
improved dump throughput and grades in line with mine sequence expectations.
Q2 2026 C1 cash costs 1 for the cathode business increased to $5.04/lb from $3.90/lb in Q2 2025. The
increase in cathode C1 cash costs 1 was as a result of lower production volumes resulting from lower heap
leach grades, as well as higher sulphuric acid prices and consumption. The Company continues to actively
manage this business segment through grade optimization and cost hedging strategies to maintain positive
margin contribution.
Consolidated Production
Q2 2026 copper production of 51,759 tonnes was 10% lower than 57,416 tonnes in Q2 2025, primarily as a
result of lower sulphide production at Mantos Blancos and lower cathode production at Mantoverde.
Q2 2026 C1 cash costs 1 of $2.82/lb were 15% higher than $2.45/lb in Q2 2025. Results were impacted by
lower production volumes (+$0.27/lb) and higher input costs (+$0.26/lb), attributable in part to higher diesel
and sulphuric acid prices, both directly and through related inputs and services. The higher costs were
partially offset by higher by -product credits at Mantoverde and Cozamin ( -$0.16/lb), which benefited from
stronger gold and silver prices, respectively, along with favourable treatment and refining charges ( -
$0.01/lb).
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 5
Mantoverde Mine (70% owned)
Q2 2026 copper production of 23,485 tonnes was 6% lower than Q2 2025 driven by lower cathode
production (Q2 2026: 5,295 tonnes versus Q2 2025: 8,479 tonnes) influenced by lower heap throughput,
partially offset by record copper in concentrate production of 18,190 tonnes (Q2 2025: 16,507 tonnes) from
higher throughput and recoveries.
Q2 2026 sulphide plant throughput averaged 36,264 tpd (Q2 2025: 32,372 tpd), approximately 13% above
its current design capacity and despite 5 days of planned maintenance in April. In June 2026, sulphide plant
throughput achieved a record average 40,378 tpd (April 2026: 32,320 tpd, May 2026: 36,100 tpd).
Recoveries were consistent with Q1 2026, improving to 90.2% compared to 77.6% in Q2 2025 driven by
improved performance and mill feed. Copper sulphide grades of 0.61% decreased from 0.72% in Q2 2025
and were below our expectations as elevated water levels in the pit limited the access to planned ore feed
which resulted in processing additional lower grade stockpiles. Higher sulphide copper grades are expected
in the second half of 2026.
Q2 2026 combined C1 cash costs 1 were a record $1.97/lb, 16% lower than $2.35/lb in Q2 2025. The
decrease primarily reflected higher by-product gold credits from stronger realized gold prices (-$0.19/lb) and
lower treatment and refining costs ( -$0.06/lb), together with lower mining costs per payable pound due to
increased capitalized stripping ( -$0.44/lb), lower energy, diesel and explosive consumption ( -$0.10/lb) and
lower acid consumption as a result of the reduction in heap leaching ( -$0.14/lb). These benefits were
partially offset by higher sulphide plant costs driven by planned maintenance in April (+$0.15/lb), higher
diesel prices (+$0.23/lb) and higher acid prices (+$0.06/lb). Q2 2026 cathode C1 cash costs 1 were $5.64/lb,
42% higher compared to Q2 2025, mainly due to lower cathode production (+$2.02/lb) and higher sulphuric
acid prices ($215/t in Q2 2026 versus $206/t in Q2 2025) (+$0.26/lb), partially offset by lower acid
consumption associated with reduced heap throughput (-$0.60/lb).
Mantos Blancos Mine (100% owned)
Q2 2026 production was 12,482 tonnes, composed of 9,600 tonnes of copper in concentrate from sulphide
operations and 2,882 tonnes of cathode from oxide operations, was 21% lower than in Q2 2025. The decline
was attributable to lower sulphide feed grades (Q2 2026: 0.66% versus Q2 2025: 0.89%) and lower
recoveries (Q2 2026: 76.6% versus Q2 2025: 80.4%) driven by the planned mine sequence. Cathode
production was 56% higher compared to Q2 2025, influenced by increased dump throughput (Q2 2026:
2,244 thousand tonnes versus Q2 2025: 1,772 thousand tonnes), together with higher dump grades (Q2
2026: 0.25% versus Q2 2025: 0.12%).
Combined Q2 2026 C1 cash costs1 of $3.93/lb ($3.93/lb sulphides and $3.95/lb cathodes) were 88% higher
compared to combined C1 cash costs 1 of $2.09/lb in Q2 2025. The increase was primarily driven by lower
payable copper production (+$0.54/lb), higher mining cost mainly due to higher diesel prices (+$0.34/lb) in
addition to increased maintenance activities, more intensive drilling and blasting requirements and lower
capitalized stripping (+$0.52/lb), as well as higher processing costs (+$0.42/lb), partially driven by the higher
market price of sulphuric acid ($231/t in Q2 2026 versus $180/t in Q2 2025) and increased plant services
and materials.
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 6
Pinto Valley Mine (100% owned)
Q2 2026 copper production of 10,047 tonnes was broadly consistent with Q2 2025. Mill throughput in Q2
2026 was maintained at levels consistent with Q2 2025, but remained below expectations due to periods of
unplanned downtime and reduced operating efficiency associated with continued filter plant issues and other
processing constraints. Lower recoveries (Q2 2026: 86.02% versus Q2 2025: 87.34%) were driven by
changes in ore characteristics, including higher acid- soluble copper associated with the planned mine
sequence, as well as operational disruptions to the flotation circuit resulting from unplanned maintenance at
the filter plant. This was partially offset by higher feed grade (Q2 2026 0.32% versus Q2 2025 0.31%) in line
with mine sequence.
A planned major maintenance shutdown is scheduled in September to reduce unplanned mill maintenance
issues and support more stable plant operations going forward. Key areas being addressed during the
shutdown include the primary crusher mainframe and the filter plant. Near -term reliability initiatives to
improve plant availability are also underway.
Q2 2026 C1 cash costs 1 of $4.17/lb were 7% higher than $3.89/lb in the sa me period last year, driven by
lower production volumes and higher input costs (+$0.38), particularly higher diesel prices (+$0.19/lb),
contractor costs (+$0.17/lb) and higher sulphuric acid prices (+$0.05/lb), as well as unplanned maintenance
expenditures. Higher treatment, transportation and selling costs (+$0.09/lb) also contributed to the increase.
These impacts were partially offset by higher silver by -product credits ( -$0.18/lb) supported by stronger
silver prices.
Cozamin Mine (100% owned)
Q2 2026 copper production of 5,745 tonnes, was 12% lower than in Q2 2025, primarily due to lower feed
grades (Q2 2026: 1.88% versus Q2 2025: 2.01%) and lower recoveries (Q2 2026: 94.3% versus Q2 2025:
96.6%) in line with the mine sequence. Mill throughput decreased by 3% (Q2 2026: 3,572 tpd versus Q2
2025: 3,689 tpd), driven by mill constraints related to repair and maintenance of primary and secondary
crushers.
Q2 2026 C1 cash costs 1 of $1.52/lb were 2% higher than $1.49/lb in the same period last year, primarily
driven by lower production volumes (+$0.20/lb), higher input costs (+$0.17/lb) related to higher diesel prices
and higher maintenance spend, as well as higher transportation charges (+$0.14/lb). These impacts were
partially offset by higher silver by-product credits (-$0.48/lb) resulting from stronger silver prices.
2026 Outlook
2026 consolidated copper production and C1 cash costs guidance1 remains unchanged. At Mantoverde, the
mine plan has been optimized to prioritize sulphide production and reduce exposure to elevated spot
sulphuric acid purchases, supporting stronger cash flow. As a result, we expect higher sulphide production of
approximately 5,000 tonnes, largely driven by continued higher sulphide plant throughput at Mantoverde,
offset by lower cathode production of approximately 5,000 tonnes due to reduced heap leaching. The
change in sequence reduces the acid requirements at Mantoverde by approximately 200,000 tonnes which
eliminates the need to purchase any additional acid at spot prices for the remainder of 2026. Higher input
costs, notably diesel and sulphuric acid, are placing upward pressure on costs. However, with a higher
proportion of lower -cost sulphide production, a lower proportion of higher -cost cathode production, and
higher by-product credits to date, our cost guidance remains unchanged.
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 7
Capstone's total consolidated capital expenditure guidance (including sustaining, expansionary, capitalized
stripping, and exploration) of $790 million is unchanged.
Middle East Conflict
We continue to monitor and manage potential impacts from the conflict in the Middle East. To date, there
have been no direct supply impacts to our operations. Copper markets have remained strong, with the
average LME copper price in the second quarter 4% higher than the previous quarter and 40% higher than
Q2 2025. Our scale, operating locations, and diversified supply chains provide a strong foundation, and our
businesses continue to operate normally.
In Q2 2026, we took proactive steps to mitigate input -cost pressures, protect margins, and maximize cash
flow. On diesel, we locked in 42% of our expected H2 2026 consumption through hedges (40% in Chile and
50% in the USA), with prices secured during the period of easing geopolitical conditions. On sulphuric acid,
in addition to fixed- price contracts already in place for 2026, we implemented a cash flow optimization
strategy at Mantoverde that reduces acid exposure by approximately 200,000 tonnes in 2026 and eliminates
the need for spot market purchases at Mantoverde. In addition, Capstone's Board approved the Mantoverde
Pyrite Augmentation project, which is expected to reduce future sulphuric acid requirements by
approximately 20% per year while increasing heap leach copper production.
These initiatives have reduced our exposure to diesel and sulphuric acid cost volatility throughout this period
of heightened geopolitical risk. Updated sensitivities for the remainder of 2026 are as follows:
• Diesel: We expect to consume approximately 90 million litres over the remainder of 2026 (75% in Chile,
24% in the USA, and 1% in Mexico). From July, every $0.10/L change in diesel prices (from $1.00/L) is
estimated to impact direct costs by approximately $5 million, split between approximately $3.5 million (or
$0.01 per payable pound) to consolidated C1 cash costs 1 and approximately $1.5 million to capitalized
stripping.
• Sulphuric acid: We expect to consume approximately 243,000 tonnes over the remainder of 2026. Of
planned consumption, 80% is locked in under fixed- price contracts at an average price of $190/t CFR
Chile and 20% is tied to variable pricing. Contracted volumes cover 100% of planned consumption for the
remainder of the year following the Mantoverde cash flow optimization strategy, which removed the need
for spot market purchases. Supply is expected from domestic sources, as well as Peru, Europe, and Asian
countries excluding China. From July, every $25/t change in sulphuric acid prices is estimated to impact
consolidated C1 cash costs1 by approximately $1 million (or less than $0.01 per payable pound).
KEY UPDATES
Capstone Copper has expansion optionality across its portfolio with a combination of attractive brownfield
and greenfield opportunities in top- tier mining jurisdictions in the Americas. Capstone Copper is advancing
these growth opportunities, which are at various stages. A potential sanctioning decision for each project is
subject to a variety of factors, including macroeconomic conditions.
MV Optimized Brownfield Expansion Project
MV Optimized, a capital -efficient brownfield expansion of Mantoverde's sulphide concentrator, was
sanctioned for development during Q3 2025. MV Optimized is expected to increase concentrator design
throughput from 32,000 to 45,000 ore tonnes per day, providing incremental copper and gold production of
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 8
approximately 20,000 tonnes and 6,000 ounces of gold per annum, respectively, and extending the mine life
from 19 to 25 years, at an estimated capital cost of $176 million, which is unchanged.
During Q2 2026, the Company received deliveries of the remaining equipment and supplies while executing
the construction works at the concentrator plant, the tailings storage facility, and the desalination plant. A 5-
day planned maintenance shutdown of the concentrator plant was completed in April which unlocked higher
throughput by eliminating certain bottlenecks in the tanks, pumps and water system. The majority of
remaining project tie-ins are scheduled in Q3 2026 during an extended 15 day maintenance period, followed
by a ramp- up period in Q4 2026. The expanded sulphide throughput capacity of approximately 45,000 ore
tonnes per day is expected to be sustained starting in early 2027.
MV Pyrite Augmentation
In July 2026, the Capstone Board of Directors approved the Mantoverde Pyrite Augmentation project
("MVPA"). The project is expected to be formally sanctioned for development in Q3 2026, following approval
from Mantoverde's joint venture partner. The MVPA is expected to be completed in early 2028. The
estimated capital cost of the project is approximately $45 million, expected to be incurred in 2027.
The Mantoverde Pyrite Augmentation project is designed to reduce sulphuric acid consumption while
increasing cathode copper production by incorporating a pyrite recovery circuit into the existing concentrator
plant. The objective is to recover and concentrate copper and pyrite from the tailings stream at Mantoverde,
producing a pyrite concentrate which will be conditioned and transferred to the existing heap leach process.
This project contributes to reducing sulphuric acid consumption during the leaching process by
approximately 20%. In addition, this project is the first step in the opportunity to unlock cobalt production in
the future by recovering the solubilized cobalt leached from the pyrite via an ion exchange plant. The cobalt
recovery opportunity is currently in the feasibility stage.
Based on 10 million tonnes per annum of oxide ore leaching at the heap leach facility, the MVPA is expected
to reduce sulphuric acid requirements at Mantoverde's heap leach by approximately 20%, or an average of
90,000 tonnes of sulphuric acid per year, while also increasing cathode copper production by an average of
approximately 3,500 tonnes per year. At an assumed sulphuric acid price (CFR Chile) of $200 to $450 per
tonne, this results in sulphuric acid cost savings of approximately $18 million to $40 million per year.
The after -tax NPV(8%) for MVPA is estimated at approximately $200 million based on copper prices of
$5.00/lb and sulphuric acid prices of $200/t. At spot prices (~$6.25/lb copper and ~$475/t sulphuric acid) the
estimated after-tax NPV(8%) increases to approximately $350 million. The incremental processing operating
cost has been estimated at $0.22 per tonne of sulphide ore processed
Santo Domingo Project
In October 2025, Capstone announced a joint venture transaction in which fund entities managed by Orion
will acquire a 25% ownership interest in the Santo Domingo Project and the Sierra Norte Project for total
cash consideration of up to $360 million. Total cash consideration includes $225 million payable upon a
positive final investment decision ("FID") on Santo Domingo, $75 million matching contribution payable
within six months of the FID, and up to $60 million in contingent consideration payable to Capstone upon the
achievement of certain value-enhancing initiatives (the "Orion Contingent Consideration"). Capstone has the
option to re- consolidate 100% ownership of Santo Domingo via a buyback once commercial production is
achieved. The transaction de- risks capital funding requirements for Santo Domingo, providing financial