Capstone Copper Reports First Quarter 2025 Results
May 1, 2025
Capstone Copper Reports First Quarter 2025 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 quarter ended March 31, 2025 (“Q1 2025”).
Link HERE for Capstone’s Q1 2025 webcast presentation.
John MacKenzie, CEO of Capstone, commented: "Our operations got off to a solid start in the first
quarter, marked by record sulphide copper production from both Mantoverde and Mantos Blancos, as we
achieved record revenues and EBITDA. We look forward to maintaining this momentum through the
remainder of 2025, demonstrating reliable copper production, lower costs, and increased cash flow
generation while continuing to advance our growth options. Amidst heightened market uncertainty, Capstone
is very well-positioned to deliver copper growth in top-tier jurisdictions, with a focus on safety, operational
execution, and a strong financial position."
Q1 2025 OPERATIONAL AND FINANCIAL HIGHLIGHTS
• Consolidated total copper production for Q1 2025 was 53,796 tonnes at C1 cash costs 1 of
$2.59/lb. Sulphide copper production for Q1 2025 was 45,950 tonnes at C1 cash costs 1 of
$2.23/lb compared to 30,841 tonnes at $ 2.55/lb in Q1 2024, largely driven by contributions from
Mantoverde sulphides following the successful ramp-up in 2024. Mantoverde sulphides produced
16,268 tonnes of copper at C1 cash costs1 of $1.53/lb in Q1 2025.
• Net loss attributable to shareholders of $6.8 million, or $(0.01) per share for Q1 2025 compared
to net loss attributable to shareholders of $4.8 million, or $(0.01) per share for Q1 2024.
• Adjusted net income attributable to shareholders 1 of $8.1 million, or $0.01 per share for Q1
2025, compared to adjusted net loss attributable to shareholders1 of $4.5 million in Q1 2024.
• Record adjusted EBITDA1 more than doubled to $179.9 million for Q1 2025 from $80.1 million
for Q1 2024, primarily due to increased sulphide copper production and higher realized copper price
of $4.36/lb compared to $3.85/lb.
• Operating cash flow before changes in working capital of $166.1 million in Q1 2025 compared
to $62.1 million in Q1 2024.
• Net debt1 of $788.1 million as at March 31, 2025 modestly increased from $742.0 million as at
December 31, 2024, driven by a working capital draw of $46.0 million largely related to a build-up of
accounts receivables, in addition to non-recurring payments of $34.6 million for the final installment
payment relating to the 2021 consolidation of the 100% interest in Santo Domingo and $10.0 million
to repurchase a royalty at Santo Domingo. Total available liquidity 1 of $1,044.5 million as at
March 31, 2025, comprising of $344.5 million of cash and short-term investments, and $700.0 million
of undrawn amounts on the corporate revolving credit facility.
• Completion of an offering of an upsized $600 million of 6.750% senior unsecured notes due
2033. The Company intends to apply the net proceeds of the offering to repay project financing debt
at its Mantoverde S.A. subsidiary, to pay down outstanding debt on the Company's senior secured
revolving credit facility, and for general corporate purposes.
• Repurchased a 2.0% net smelter return (“NSR”) royalty held on the Santo Domingo project
from Empresa Nacional de Mineria (“ENAMI”) for cash consideration of $10 million. The ENAMI
NEWS RELEASE
TSX:CS ● ASX:CSC ● capstonecopper.com
1
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”.
royalty applied to certain concessions at Santo Domingo which covered approximately 26% of the
Mineral Reserve mine plan per the 2024 Feasibility Study.
• The Company reiterates the 2025 guidance of 220,000 to 255,000 tonnes of copper production
at $2.20 to $2.50 per pound cash costs 1. Total 2025 sustaining and expansionary capital
expenditure guidance of $315 million, plus an additional $210 million for capitalized stripping and $25
million for exploration, is also reaffirmed.
• The CHESS Depository Interests (“CDI”) of the Company were added to the S&P/ASX 200
Index by the S&P Dow Jones Indices prior to ASX market open on March 24, 2025.
OPERATIONAL OVERVIEW
Refer to Capstone's Q1 2025 MD&A and Financial Statements for detailed operating results.
Q1 2025 Q1 2024
Sulphide business
Copper production (tonnes)
Mantoverde2 16,268 —
Mantos Blancos 12,272 9,163
Pinto Valley 10,886 15,672
Cozamin 6,524 6,006
Total sulphides 45,950 30,841
C1 cash costs1 ($/pound) produced
Mantoverde2 1.53 —
Mantos Blancos 2.23 2.98
Pinto Valley 3.84 2.53
Cozamin 1.28 1.93
Total sulphides 2.23 2.55
Cathode business
Copper production (tonnes)
Mantoverde2 6,272 9,476
Mantos Blancos 1,574 1,804
Total cathodes 7,846 11,280
C1 cash costs1 ($/pound) produced
Mantoverde2 4.81 3.82
Mantos Blancos 3.96 3.43
Total cathodes 4.64 3.76
Consolidated
Copper production (tonnes) 53,796 42,121
C1 cash costs1 ($/pound) produced 2.59 2.88
Copper sold (tonnes) 53,134 40,996
Realized copper price1 ($/pound) 4.36 3.85
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”. 2
Sulphide Business
Q1 2025 sulphide production of 45,950 tonnes of copper in concentrate was 49% higher than 30,841 tonnes
in Q1 2024. This was mainly due to the commencement of sulphide production at Mantoverde and higher
sulphide production at Mantos Blancos following the successful ramp-up of the concentrator, both in the
second half of 2024, partially offset by lower production at Pinto Valley on lower copper grades and
recoveries and slightly lower throughput as a result of maintenance.
Q1 2025 sulphide C1 cash costs 1 of $2.23/lb were 13% lower than $2.55/lb in Q1 2024 driven by
contributions from the lower cost Mantoverde sulphides and lower unit costs at Mantos Blancos and
Cozamin, partially offset by higher unit costs at Pinto Valley.
Cathode Business
Q1 2025 cathode production of 7,846 tonnes of copper was 30% lower than 11,280 tonnes in Q1 2024 ,
mainly driven by lower production from Mantoverde cathodes driven by lower oxide grades, planned
maintenance, and a nationwide power outage in Chile.
Q1 2025 cathode C1 cash costs of $4.64/lb increased from $3.76/lb in Q1 2024. Cathode C1 cash costs 1
were primarily impacted by lower production levels, and higher sulphuric acid average prices ($176/t in Q1
2025 versus $150/t in Q1 2024). The Company continuously evaluates its cathode copper business to
confirm its positive marginal contribution with reference to the prevailing grades and acid prices. In addition,
given the higher costs, the Company will typically place zero cost copper collar hedges to protect a margin
on this production.
Consolidated Production
Q1 2025 consolidated production of 53,796 tonnes of copper was 28% higher than 42,121 tonnes in Q1
2024, mainly driven by increased copper production from the sulphide business.
Q1 2025 consolidated C1 cash costs 1 of $2.59/lb were 10% lower than $ 2.88/lb in Q1 2024 due to higher
copper production (-$0.10/lb) and by-product credits (-$0.22/lb) mainly on gold production at Mantoverde,
partially offset by lower capitalized stripping costs ($0.03/lb).
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 3
Mantoverde Mine (70% owned)
Q1 2025 copper production of 22,540 tonnes was 138% higher than Q1 2024 mainly due to copper in
concentrate production of 16,268 tonnes, partially offset by lower cathode production mainly driven by lower
oxide copper grades as a result of mine sequence ( 0.30% in Q1 2025 versus 0.36% in Q1 2024) and lower
heap recoveries driven by ore characteristics.
In Q1 2025, Mantoverde's new sulphide concentrator delivered strong operational performance despite a
planned 5-day maintenance shutdown and a nationwide power outage in Chile, both occurring in February.
Monthly plant throughput varied, with January and March exceeding nameplate capacity at 33,409 tpd and
34,294 tpd respectively, while February throughput declined to 25,235 tpd due to the aforementioned
planned shutdown and power outage. Overall, plant throughput averaged 31,171 tpd for the quarter. Copper
grades averaged 0.71%, and copper recoveries continued their upward trajectory, averaging 82.3% - a
notable improvement from 74.4% in Q4 2024. March also marked a new peak of 45,153 tpd achieved over a
24 hour period. These operational gains supported record quarterly copper production of 16,268 tonnes, up
20% from Q4 2024, highlighting ongoing ramp-up success and the increasing plant stability since first
production in June 2024.
Q1 2025 combined C1 cash costs 1 were $2.46/lb, 36% lower than $3.82/lb in Q1 2024, mainly related to
higher production driven by the new concentrate plant (-$1.38/lb). Q1 2025 cathode C1 cash costs 1 were
26% higher compared to Q1 2024, mainly due to lower cathode production driven by lower heap grade
($0.90/lb) and higher acid prices ($179/t in Q1 2025 versus $145/t in Q1 2024) partially offset by lower acid
consumption driven by lower throughput ($0.09/lb).
Mantos Blancos Mine (100% owned)
Q1 2025 copper production of 13,846 tonnes, composed of 12,272 tonnes of copper in concentrate from
sulphide operations and 1,574 tonnes of cathodes, was 26% higher than Q1 2024, due to higher sulphide
mill throughput ( 19,141 tpd in Q1 2025 versus 14,214 tpd in Q1 2024) due to the successful concentrator
ramp-up in 2024 and higher sulphides feed grades as a result of mine sequence ( 0.89% in Q1 2025 versus
0.87% in Q1 2024).
Since the installation of new equi pment in the tailings handling area in Q3 2024, Mantos Blancos sulphide
operations have exceeded the plant's nameplate milling capacity in November (average 20,271 tpd),
December (20,007 tpd), January (20,628 tpd), and March (20,005 tpd). Operations in February (16,540 tpd)
were impacted by a planned maintenance shutdown and the previously mentioned nationwide power outage
in Chile.
Combined Q1 2025 C1 cash costs 1 of $2.43/lb ($2.23/lb sulphides and $3.96/lb cathodes) were 20% lower
compared to $3.05/lb in Q1 2024 mainly due to higher production in line with plan (-$0.48/lb), lower diesel
prices ($0.62/l in Q1 2025 versus $0.76/l in Q1 2024) (-$0.07/lb), lower mine costs (-$0.10/lb) and lower
treatment and selling costs (-$0.13/lb), partially offset by higher diesel, explosive and energy consumption
($0.11/lb) due to higher material moved driven by higher mill throughput, higher acid and energy prices
($0.04/lb).
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 4
Pinto Valley Mine (100% owned)
Q1 2025 copper production was 31% lower than Q1 2024 on lower mill throughput (49,597 tpd in Q1 2025
versus 52,458 tpd in Q1 2024), due to unscheduled downtime, lower feed grade tied to current quarter mine
plan sequence (0.28% in Q1 2025 versus 0.36% in Q1 2024) and lower recoveries (83.2% Q1 2025 versus
87.7% Q1 2024 ) due to higher acid soluble ratio and lower grade ore . In line with sustaining capital
guidance, over the next two quarters twelve new haul trucks will be incrementally delivered and assembled,
to complement the new shovel received at the end of 2024. The new trucks will be used to drive incremental
material movement in the mine.
Q1 2025 C1 cash costs 1 of $3.84/lb were 52% higher compared to the same period last year of $2.53/lb
primarily due to lower production volume ($1.15/lb) and increased operating costs ($0.27/lb) due to higher
spend on equipment maintenance and contractors cost, higher liquidation of stockpiles ($0.12/lb), partially
offset by and lower treatment, selling and transportation costs (-$0.25/lb).
Cozamin Mine (100% owned)
Q1 2025 copper production was 9% higher than Q1 2024 due to higher grades ( 2.05% in Q1 2025 versus
1.98% in Q1 2024), consistent with the mine plan and higher mill throughput ( 3,641 tpd in Q1 2025 versus
3,447 tpd in Q1 2024). Recoveries were consistent with the same period previous year.
Q1 2025 C1 cash costs1 were $1.28/lb, 34% lower than $1.93/lb in Q1 2024 due to lower operating costs on
improvements in contractors utilization, slightly lower rates on power, and the impact of a weaker Mexican
peso (-$0.31/lb), as well as higher by-products credits due to higher silver prices (-$0.23/lb) and lower
treatment and selling costs in 2025 (-$0.12/lb).
2025 Guidance
The Company reiterates its 2025 consolidated production, C1 cash cost 1, capital expenditure, capitalized
stripping and exploration expenditure guidance as follows: 220-255kt consolidated production of copper,
$2.20-$2.50 C1 cash costs 1 per payable pound of copper, $315 million capital expenditure, $210 million
capitalized stripping and $25 million exploration expenditure.
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 feasibility stages. Currently, no expansion project is
underway or has been sanctioned for development. A potential sanctioning decision for each project is
subject to a variety of factors, including macroeconomic conditions.
MV Optimized Brownfield Expansion Project
The Company announced the results of its Mantoverde Optimized ("MV Optimized") Feasibility Study ("FS")
on October 1, 2024. MV Optimized is a capital-efficient brownfield 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
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 5
and an implied capital intensity of approximately $7,500 per tonne of incremental annual copper equivalent
production. The MV Optimized FS also features a robust life of mine after-tax NPV (8%) of $2.9 billion for the
Mantoverde operation on a 100%-basis based on a long-term copper price of $4.10/lb and gold price of
$1,800/oz. Capstone Copper anticipates commencing construction following receipt of the DIA
environmental permit ("Declaración de Impacto Ambiental"), which is expected around mid-2025.
Mantoverde Phase II
The Company is in the early stages of evaluating the next major phase of growth for Mantoverde, which
could include the addition of an entire second processing line. There are 0.2 billion tonnes of Measured &
Indicated Mineral Resources and 0.6 billion tonnes of Inferred sulphide Mineral Resources in addition to the
reserves that are currently being considered as part of MV Optimized. In addition, exploration targets include
the northern portion of the current Mantoverde pit and the northern extension (~10km long) of the projection
of the prospective Atacama fault system, which are planned to assist in determining the location of key
infrastructure and the economic viability of the project.
Santo Domingo Project
Capstone Copper announced the results of an updated FS for its 100%-owned Santo Domingo copper-iron-
gold 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% based on long-term copper, 65% iron ore, and
gold price assumptions of $4.10/lb, $110/t, and $1,800/oz, respectively. 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 FS updated the level of engineering to Association for the Advancement of Cost Engineering ("AACE")
Class 3. During Q1 2025, detailed engineering efforts were underway to increase the precision of capital
estimates to AACE Class 2 over the balance of 2025.
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. A potential project sanctioning decision is not
anticipated prior to mid-2026.
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.
In Q1 2025, Capstone Copper exercised its right to repurchase a 2.0% NSR royalty held on the Santo
Domingo project from ENAMI for cash consideration of $10 million. The ENAMI royalty applied to certain
concessions at Santo Domingo, covering approximately 112 million tonnes of the 436 million tonne Mineral
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 6
Reserve mine plan per the 2024 Feasibility Study. A 2% NSR royalty remains payable from certain other
concessions at Santo Domingo.
Mantoverde - Santo Domingo Pyrite Augmentation & Cobalt
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 plant will initially treat cobalt by-product streams from
Mantoverde only, 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. A n
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 cobalt production.
Mantos Blancos Phase II
The Company is currently evaluating the next phase of growth for Mantos Blancos, which is analyzing the
potential to increase the concentrator plant 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 leaching and flotation
operations. 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 toward the end of 2025.
PV District Growth
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.
Corporate Exploration Update
Capstone Copper’s exploration team is predominantly focused on organic growth opportunities to expand
Mineral Resources and Mineral Reserves at all four mines and at the Santo Domingo development project.
Capstone Copper also recently acquired Sierra Norte and maintains a portfolio of 100% owned claims
acquired by staking in Sonora, Mexico and in Northern Chile.
At Mantoverde during Q1 2025, exploration activities focused on continuing ramping up exploration drilling
activities with five rigs on site. The program considers a first phase of $10 million budget (~30,000 meters) to
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 7
target the areas closer to the MV Optimized pit focusing on improving copper grades and mineralization
continuity within and nearby the pit boundaries and additionally to test selected areas north of the pit with the
potential to increase Mineral Resources. A 46 line-km Induced Polarization geophysical survey was
completed in Q1 2025 with the focus to follow-up on previous results and to cover the northern extension
(~10km long) of the projection of the prospective Atacama Fault System.
At Mantos Blancos, infill drilling continued during Q1 2025, with a focus on phases 15, 16, and 23.
At Sierra Norte, work continued in Q1 2025, with the review and validation of the historical drilling database
and the geological model of the deposit. Re-logging of representative cross sections and re-assay program
are underway to generate an updated geological model and drilling database.
At Cozamin during Q1 2025, exploration drilling continued 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.
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. Mr. Coleman has more than 45 years of experience in the mining
industry in operations, development and growth, most recently retiring from Freeport-McMoRan Inc. after 30
years.
1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. 8