Capstone Copper Corp (ASX:CSC) Announces Strong Q1 2025 Results
Financial Performance
Capstone Copper Corp reported a net loss of $6.8 million for Q1 2025, compared to a net loss of $4.8 million in Q1 2024. Adjusted net income attributable to shareholders reached $8.1 million, up from an adjusted net loss of $4.5 million in the same period last year. Adjusted EBITDA more than doubled to $179.9 million from $80.1 million in Q1 2024, driven by increased sulphide copper production and higher realised copper prices of $4.36 per pound.
Operational Achievements
Consolidated total copper production for Q1 2025 was 53,796 tonnes, a 28% increase from Q1 2024. Sulphide copper production reached 45,950 tonnes, a 49% rise year-over-year, with Mantoverde sulphides contributing significantly. The company achieved record sulphide copper production from both Mantoverde and Mantos Blancos, enhancing overall production efficiency. Operating cash flow before changes in working capital surged to $166.1 million from $62.1 million in Q1 2024.
Capital Structure
Capstone completed an upsized $600 million offering of 6.750% senior unsecured notes due 2033, intending to repay project financing debt, reduce outstanding debt on the senior secured revolving credit facility, and for general corporate purposes. Additionally, the company repurchased a 2.0% net smelter return royalty on the Santo Domingo project for $10 million.
Guidance
The company reiterates its 2025 guidance of 220,000 to 255,000 tonnes of copper production at $2.20 to $2.50 per pound cash costs. Sustaining and expansionary capital expenditure guidance remains at $315 million, with an additional $210 million for capitalised stripping and $25 million for exploration.
Executive Comments
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.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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