Download PDF

1. Company Snapshot

1.a. Company Description

Capstone Copper Corp.operates as a copper mining company with focus on the Americas.It owns and operates the Pinto Valley copper mine located in Arizona, the United States; the Cozamin copper-silver mine located in Zacatecas, Mexico; the Mantos Blancos copper-silver mine located in the Antofagasta region, Chile; and 70% of the Mantoverde copper-gold mine located in the Atacama region, Chile.


The company also owns the fully permitted Santo Domingo copper-gold project located northeast of Mantoverde in the Atacama region, Chile, as well as a portfolio of exploration properties in the Americas.The company is headquartered in Vancouver, Canada.

Show Full description

1.b. Last Insights on CS

Negative drivers behind Capstone Copper's recent stock performance include the company's revenue lagging expectations, as reported in its Full Year 2024 Earnings. Despite beating earnings per share expectations, revenue of $1.60b was up 19% from FY 2023 but fell short of analyst estimates. Additionally, the company's copper production costs of $2.56 per payable pound in Q4 2024 may have weighed on investor sentiment.

1.c. Company Highlights

2. Capstone Copper's Q3 2025 Earnings: A Strong Quarter Amidst Transformative Growth

Capstone Copper reported a robust financial performance in Q3 2025, with record quarterly revenue reaching $598.4 million, driven by strong copper production and favorable commodity prices. The company's C1 cash cost was $2.42 per pound, a decrease of $0.03 from the previous quarter and $0.42 compared to Q3 last year. This resulted in a gross margin of $2.07 per pound or 46% in Q3. However, the EPS of $0.08357 fell short of analyst estimates of $0.1495. The adjusted EBITDA of $249.2 million increased 106% year-over-year, indicating a significant improvement in profitability.

Publication Date: Nov -03

📋 Highlights
  • Record Revenue & EBITDA:: Q3 revenue hit $598.4M, driven by strong copper prices; adjusted EBITDA surged to $249.2M (+106% YoY).
  • Cost Efficiency:: C1 cash cost fell to $2.42/lb (-$0.03 QoQ, -$0.42 YoY), yielding $2.07/lb gross margin (46% margin).
  • Mantoverde Performance:: Produced 23,769 tonnes of copper at $2.27/lb C1 cost, with throughput averaging 27,500 tonnes/day (post-maintenance).
  • Santo Domingo JV:: Secured $360M from Orion for 25% stake; project sanctioning targeted for H2 2026 with $40M 2025 budget.
  • Balance Sheet Strength:: Net debt-to-EBITDA at 0.9x (vs. 1x target), enabling $60M contingent milestone payments for Santo Domingo.

Operational Highlights

The company's operational performance was also noteworthy, with Mantoverde producing 23,769 tonnes of copper at a record low combined C1 cash cost of $2.27 per payable pound. The plant throughput averaged 27,500 tonnes per day, although it was impacted by ball mill motor failures and 5 days of planned maintenance. The company has since completed the required repairs and implemented further protections to avoid potential future failures. As Raman Randhawa noted, "Solid production and cost control allowed us to realize strong gross margins of $2.07 per pound or 46% in Q3."

Growth Initiatives

Capstone Copper made significant progress on its growth initiatives, including the announcement of a joint venture agreement with Orion Resource Partners at Santo Domingo. This transaction is expected to unlock considerable value at Santo Domingo, with Orion contributing up to $360 million for 25% of the project. The company is also advancing its exploration program at Mantoverde, Santo Domingo, and Sierra Norte, with encouraging results from Phase 1 of the exploration program at Mantoverde.

Valuation and Outlook

With a P/E Ratio of 89.88 and an EV/EBITDA of 13.21, the market appears to be pricing in significant growth expectations for Capstone Copper. Analysts estimate next year's revenue growth at 21.7%, which may justify some of the current valuation multiples. However, the company's ROE of 2.48% and ROIC of 2.68% suggest that there is still room for improvement in terms of return on equity and invested capital. As the company continues to progress on its growth initiatives, investors will be watching closely to see if Capstone Copper can deliver on its promises.

3. NewsRoom

Card image cap

RBC Says Copper Prices Surge to New Highs on Tight Supply, Trade Disruptions

Dec -02

Source:

Card image cap

Royalties Inc. Reports Q3 Results For September 30, 2025 and Success on Capstone Copper Lawsuit for 2% NSR on Cozamin Mine

Nov -28

Source:

Card image cap

Capstone Copper (TSX:CS): Assessing Valuation After Strong Earnings and Profit Growth

Nov -02

Source:

Card image cap

Capstone Copper Maintained at Buy at Stifel Canada Following Q3 Results; Price Target Kept at C$17.00

Oct -31

Source:

Card image cap

Capstone: Q3 Earnings Snapshot

Oct -30

Source:

Card image cap

Capstone Copper Reports Third Quarter 2025 Results

Oct -30

Source:

Card image cap

Copper Prices Drop, Reflecting Cautious Sentiment Ahead of U.S.-China Talks, RBC Says

Oct -21

Source:

Card image cap

What Do Major Insider Sales Mean for Capstone Copper’s (TSX:CS) ESG-Focused Investment Story?

Oct -20

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.35%)

6. Segments

Property & Casualty

Expected Growth: 7.87%

Capstone Copper Corp.'s Property & Casualty segment growth of 7.87% is driven by increasing copper prices, rising demand from electric vehicle and renewable energy industries, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost reduction, and exploration activities have contributed to the growth.

Life

Expected Growth: 4.65%

Capstone Copper Corp.'s 4.65% growth is driven by increasing copper prices, strong demand from electric vehicle and renewable energy sectors, and the company's successful cost-reduction initiatives. Additionally, its focus on high-grade copper deposits and strategic acquisitions have contributed to its growth momentum.

Health

Expected Growth: 4.83%

Capstone Copper Corp.'s 4.83% growth is driven by increasing copper prices, strong demand from electric vehicle and renewable energy sectors, and the company's successful cost-reduction initiatives. Additionally, Capstone's focus on high-grade copper deposits and its robust project pipeline contribute to its growth momentum.

Asset Management

Expected Growth: 4.83%

Capstone Copper Corp.'s 4.83% growth in Asset Management is driven by increasing copper prices, strategic acquisitions, and operational efficiencies. The company's focus on cost reduction, exploration, and development of high-grade copper deposits also contributes to its growth. Additionally, its diversified asset base and strong balance sheet provide a solid foundation for future expansion.

Banking

Expected Growth: 10.27%

Capstone Copper Corp.'s 10.27% growth is driven by increasing copper prices, strong operational performance, and strategic acquisitions. The company's focus on cost reduction, exploration, and development of high-grade copper deposits also contributes to its growth. Additionally, a favorable demand outlook, driven by the electrification of transportation and renewable energy, supports the company's upward trajectory.

7. Detailed Products

Copper Cathodes

High-quality copper cathodes produced through the electrolytic refining process, used in various industrial applications such as electrical wiring, electronics, and construction.

Copper Concentrates

Concentrated copper ore extracted from mining operations, used as a raw material for smelting and refining.

Gold and Silver By-Products

Precious metals extracted as by-products of copper mining, used in jewelry, coins, and other industrial applications.

Molybdenum Concentrates

Concentrated molybdenum ore extracted from mining operations, used in the production of steel alloys and other industrial applications.

8. Capstone Copper Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Capstone Copper Corp. is medium due to the availability of alternative metals and materials that can be used in place of copper.

Bargaining Power Of Customers

The bargaining power of customers for Capstone Copper Corp. is low due to the company's strong market position and the lack of concentration among its customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Capstone Copper Corp. is medium due to the presence of several major suppliers of copper ore and the company's dependence on these suppliers.

Threat Of New Entrants

The threat of new entrants for Capstone Copper Corp. is low due to the high barriers to entry in the copper mining industry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for Capstone Copper Corp. is high due to the presence of several major copper mining companies and the competitive nature of the industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.38%
Debt Cost 3.95%
Equity Weight 69.62%
Equity Cost 15.63%
WACC 12.08%
Leverage 43.63%

11. Quality Control: Capstone Copper Corp. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
B2Gold

A-Score: 6.0/10

Value: 7.8

Growth: 3.9

Quality: 4.3

Yield: 6.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Royal Gold

A-Score: 5.7/10

Value: 1.8

Growth: 6.1

Quality: 7.8

Yield: 2.0

Momentum: 9.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Lundin Mining

A-Score: 5.1/10

Value: 3.2

Growth: 4.1

Quality: 5.6

Yield: 4.0

Momentum: 8.5

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Hudbay Minerals

A-Score: 4.7/10

Value: 4.3

Growth: 5.1

Quality: 6.4

Yield: 0.0

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

View Full Report
Stock-Card
Capstone Copper

A-Score: 3.7/10

Value: 2.4

Growth: 5.2

Quality: 4.7

Yield: 0.0

Momentum: 6.5

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Olin

A-Score: 3.7/10

Value: 5.5

Growth: 4.4

Quality: 2.0

Yield: 6.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.07$

Current Price

13.07$

Potential

-0.00%

Expected Cash-Flows