Canada's Capstone Copper Q1 revenue rises but misses estimates

Overview

• Canada copper miner's Q1 revenue rose but missed analyst expectations

• Adjusted EPS for Q1 missed analyst expectations

• Q1 adjusted EBITDA reached record high and beat analyst expectations

Outlook

• Capstone Copper maintains 2026 copper production guidance at 200,000-230,000 kt

• Company keeps 2026 C1 cash costs guidance at $2.45-$2.75/lb per payable pound of copper

• Capstone Copper says higher diesel and sulphuric acid prices are putting upward pressure on costs

Result Drivers

• HIGHER COPPER PRICES - Co said record adjusted EBITDA and net income were driven by higher realized copper prices

• LOWER PRODUCTION - Co said Q1 copper production fell 11% due to a 35-day strike at Mantoverde and lower grades at several mines

• COST PRESSURES OFFSET BY BY-PRODUCT CREDITS - Co said higher input costs, notably for diesel and sulphuric acid, were partially offset by stronger by-product pricing

Company press release: ID:nBw2NBhgNa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "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$16.00, about 44.8% above its April 28 closing price of C$11.05

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 15 three months ago

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