All amounts in US$ unless otherwise indicated
VANCOUVER, British Columbia--BUSINESS WIRE--
Capstone Copper Corp. ("Capstone" or the "Company") (TSX:CS) (ASX:CSC) today announced consolidated copper production for 2024 and provided operations and capital expenditure guidance for 2025.
- Record consolidated copper production in 2024 was 184,458 tonnes at C1 cash costs1,2 of approximately $2.75 to $2.80 per payable pound of copper.
- Consolidated copper production increased by 12% compared to 2023 driven by the ramp-up of the Mantoverde Development Project ("MVDP").
- During Q4 2024, Capstone produced record consolidated copper production of 53,942 tonnes at C1 cash costs1,2 of approximately $2.55 to $2.60 per payable pound of copper.
- 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 costs1 of $2.20 to $2.50 per payable pound of copper are expected to decrease by approximately 10% to 20% compared to 2024.
John MacKenzie, CEO of Capstone, commented, "The fourth quarter was an overall record for Capstone's consolidated copper production, with our output up 14% and unit costs down approximately 9% quarter-over-quarter. Although total 2024 consolidated copper production of 184,458 tonnes finished slightly below our guidance range, largely attributable to ramp-up delays at Mantos Blancos and Mantoverde, we exited the year close to design production levels. At Mantos Blancos, we averaged above our design mill throughput rate of 20,000 tonnes per day in November and December. Meanwhile at Mantoverde, after producing first copper in June, our ramp up showed sequential improvement over the second half of 2024, with mill throughput averaging just over 27,000 tonnes per day and copper recoveries averaging almost 85% in December.
"This year in 2025, we will deliver meaningful copper production growth, with a commensurate decrease in unit costs, that will drive a significant increase in cash flow generation. Meanwhile, we intend to advance our Mantoverde Optimized brownfield expansion project after receipt of a DIA permit amendment which is expected around the middle of the year. We also plan to continue progressing financing and partnership discussions at our fully permitted Santo Domingo project, while in parallel advancing opportunities to incorporate the recently acquired Sierra Norte project and Santo Domingo's oxide material into the mine plan, and advancing studies across the remainder of our portfolio that will define our future growth."
2024 Consolidated Copper Production and Costs Highlights
Consolidated copper production in 2024 was 184,458 tonnes at C1 cash costs1,2 of approximately $2.75 to $2.80 per payable pound of copper. Consolidated copper production increased by 12% compared to 2023 driven by the ramp-up of the Mantoverde Development Project ("MVDP") which produced first copper concentrate in late June. For Q4 2024, Capstone produced record consolidated copper production of 53,942 tonnes at C1 cash costs1,2 of approximately $2.55 to $2.60 per payable pound of copper.
1 These are Non-GAAP performance measures. Refer to the section entitled "Non-GAAP and Other Performance Measures" in the Cautionary Notes. |
2 Full year 2024 and Q4 2024 C1 Cash Costs are preliminary and unaudited. Final results will be released on February 19, 2025. |
Summary of 2024 Copper Production:
Q4 2024 Copper Production (tonnes) |
Full Year 2024 Copper Production (tonnes) |
|
Sulphides Business |
||
Pinto Valley |
11,626 |
57,271 |
Cozamin |
6,724 |
24,906 |
Mantos Blancos |
12,165 |
37,744 |
Mantoverde3 |
13,580 |
21,777 |
Total Sulphides |
44,094 |
141,698 |
Cathode Business |
||
Mantos Blancos |
1,398 |
6,830 |
Mantoverde3 |
10,045 |
35,930 |
Total Cathodes |
11,294 |
42,760 |
Consolidated Copper Production |
53,942 |
184,458 |
Table footnotes: |
||
3 Mantoverde production shown on a 100% basis. |
||
Production at Pinto Valley in Q4 2024 was impacted by unplanned maintenance, resulting in lower than expected availabilities and lower plant throughput. Copper grades averaged 0.30% in Q4 (compared to 0.34% overall in 2024) consistent with the mine sequence.
Mantos Blancos sulphides posted record quarterly copper production of 12,165 tonnes, 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 plant throughput of approximately 19,579 tonnes of ore per day ("tpd"), including an average of 20,137 tpd through November and December (compared to 16,027 tpd overall in 2024).
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 24,800 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. 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 copper recoveries averaged 84.8%.
1 These are Non-GAAP performance measures. Refer to the section entitled "Non-GAAP and Other Performance Measures" in the Cautionary Notes. |
2025 Production and Costs Guidance
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 costs1 of $2.20 to $2.50 per payable pound of copper are expected to decrease by approximately 10% to 20% compared to 2024.
Capstone 2025 production and cost guidance are as follows:
Copper Production (tonnes) |
C1 Cash Costs2 (US$ per payable lb Cu Produced)4 |
|
Sulphides Business |
||
Pinto Valley |
51,000 - 58,000 |
$2.55 - $2.85 |
Cozamin |
23,000 - 26,000 |
$1.60 - $1.80 |
Mantos Blancos |
43,000 - 51,000 |
$2.20 - $2.50 |
Mantoverde3 |
68,000 - 80,000 |
$1.25 - $1.55 |
Total Sulphides |
185,000 - 215,000 |
$1.85 - $2.15 |
Cathode Business |
||
Mantos Blancos |
6,000 - 8,000 |
$3.40 - $3.70 |
Mantoverde3 |
29,000 - 32,000 |
$4.10 - $4.40 |
Total Cathodes |
35,000 - 40,000 |
$3.95 - $4.25 |
Consolidated Copper Production |
220,000 - 255,000 |
$2.20 - $2.50 |
Table footnotes: |
||
3 Mantoverde production shown on a 100% basis. |
||
4 Key C1 cash costs1 input assumptions include: CLP/USD: 900:1; MXN/USD: 18.5:1; Silver: $27/oz; Gold: $2,350/oz; Molybdenum: $18/lb. |
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Pinto Valley: Similar copper production is forecasted when compared to 2024 as higher mill availability is expected to offset lower copper grades of approximately 0.31% in 2025. Production is weighted towards the second half of the year driven by higher copper grades and a planned maintenance shutdown in Q1 2025.
Cozamin: Copper production is expected to be similar compared to 2024, with grades expected to approximate 1.87%. Production is expected to be consistently weighted through the year.
Mantos Blancos: Copper production at Mantos Blancos is forecasted to increase in 2025 due to higher mill throughput, with a commensurate decrease in C1 cash costs1. Sulphide copper grades are expected to approximate 0.88%. Production is slightly weighted towards the second half of the year driven by higher throughput as a planned maintenance shutdown is scheduled in Q1 2025.
Mantoverde: Copper production at Mantoverde is forecasted to significantly increase in 2025 driven by the new sulphide concentrator, with a corresponding decrease in consolidated cash costs1. Sulphide copper grades are expected to approximate 0.77% in 2025. Planned maintenance is scheduled during Q1 and Q3 2025. In addition, we expect to complete the ramp up from December 2024 monthly performance to full rates within Q1 2025.
1 These are Non-GAAP performance measures. Refer to the section entitled "Non-GAAP and Other Performance Measures" in the Cautionary Notes. |
2025 Capital Expenditures Guidance
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.
The sustaining capital expenditure includes approximately $80 million of spending related to ESG initiatives, largely related to upgrading tailings storage facilities at Pinto Valley and Mantos Blancos, as well as improving tailings stewardship as the Company works towards implementing the Global Industry Standard for Tailings Management ("GISTM") by year end 2028. Pinto Valley sustaining capital includes approximately $50 million related to ESG initiatives ($10 million attributable to improving dust control and $25 million on GISTM upgrades), while Mantos Blancos sustaining capital includes approximately $30 million ($15 million attributable to a new tailings thickener and $10 million related to other GISTM initiatives).
Expansionary capital includes $10 million of early works spending for the Mantoverde Optimized Project, and approximately $50 million at Santo Domingo. At Mantoverde Optimized, a DIA permit amendment is anticipated around the middle of 2025, after which the Company will look to sanction the project, subject to necessary approvals, and revisit expansionary capital expenditure guidance during the second half of 2025. At Santo Domingo, the Company plans to progress partnership discussions and its financing strategy throughout 2025. A potential project sanctioning decision is not anticipated prior to 2026.
Pinto Valley |
Cozamin |
Mantos Blancos |
Mantoverde* |
Santo Domingo |
Total |
|
Capital Expenditure ($ millions) |
||||||
Sustaining Capital1 |
85 |
25 |
70 |
75 |
- |
255 |
Expansionary Capital1 |
- |
- |
- |
10 |
50 |
60 |
Total Capital Expenditures |
85 |
25 |
70 |
85 |
50 |
315 |
*Mantoverde shown on a 100% basis |
||||||
In addition, the Company plans to spend a total of $210 million in capitalized stripping at its three open pit mines.
Pinto Valley |
Mantos Blancos |
Mantoverde* |
Total |
|
Capitalized Stripping ($ millions) |
50 |
85 |
75 |
210 |
*Mantoverde shown on a 100% basis |
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2025 Exploration Guidance
The Company plans to spend $25 million in brownfield and greenfield exploration activities in 2025. The brownfields exploration is focused on resource conversion at Pinto Valley, Mantoverde, Mantos Blancos, 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.
2025 Copper Cathode Hedging Strategy
During Q4 2024, the Company entered into approximately 20,000 tonnes of zero cost copper collars for 2025 in order to ensure break-even pricing on a portion of its higher cost copper cathode production. The collars have an average floor price of LME Copper $4.15/lb, an average ceiling price of LME Copper $4.85/lb, and are evenly distributed through 2025.
1 These are Non-GAAP performance measures. Refer to the section entitled "Non-GAAP and Other Performance Measures" in the Cautionary Notes. |
2024 Year-end Results Announcement and Conference Call
Capstone will release its 2024 full-year results on Wednesday, February 19, after market close. The announcement will be followed by an investor conference call the same day at 5:00pm Eastern Time / 2:00pm Pacific Time (Thursday, February 20, 2025, 9:00 am Australian Eastern Daylight Time).
2024 Year-end Webcast and Conference Call Details |
Conference call webcast link: https://app.webinar.net/pWrNOolZnQV |
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