Capstone Copper Q2 revenue, adjusted EPS misses expectations

Overview

• Capstone Copper Q2 revenue misses analyst expectations, reaching $543.2 mln, per LSEG data

• Adjusted EPS for Q2 misses consensus at $0.04, per LSEG data

• Record adjusted EBITDA of $215.6 mln for Q2, driven by increased copper production

Outlook

• Capstone reaffirms 2025 copper production guidance of 220,000 to 255,000 tonnes at $2.20-$2.50 per pound cash cost

• Company expects higher production in H2 2025 due to mine sequence

Result Drivers

• RECORD COPPER PRODUCTION - Driven by strong performance from Mantoverde's new sulphide concentrator and increased output at Mantos Blancos

• COST EFFICIENCIES - Lower C1 cash costs due to increased production and operational efficiencies at Mantoverde and Mantos Blancos

• OPERATIONAL DISRUPTIONS - Reduced production at Pinto Valley due to water constraints and mechanical issues

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty mining & metals peer group is "buy"

• Wall Street's median 12-month price target for Capstone Copper Corp is C$12.00, about 37.3% above its July 30 closing price of C$7.53

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw26ydMma