Capstone Copper Corp T.CS

Alternate Symbol(s): CSCCF

Metals & Mining Copper

Capstone Copper Corp. is a copper mining company. It owns and operates the Pinto Valley copper mine located in Arizona, United States of America, the Cozamin copper-silver mine located in Zacatecas, Mexico, and the Mantos Blancos copper-silver mine located in the Antofagasta region, Chile. It also owns 70% of the Mantoverde copper-gold mine, located in the Atacama region, Chile. In addition, it owns the fully permitted Santo Domingo copper-iron-gold project, located 30 kilometers (km) northeast of Mantoverde in the Atacama region, Chile, as well as a portfolio of exploration properties in the America. The Pinto Valley Mine is an open-pit, copper mine located in Arizona, United States of America. The Cozamin Mine is a copper-silver underground mine with a surface milling facility, located 3.6 km north-northwest of Zacatecas City, Mexico. The Mantoverde copper-gold mine consists of four pits situated along the Mantoverde fault, each of which contains both sulphide and oxide ores.

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Capstone Copper Corp

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Post by Evrytingisawsumon Jul 30, 2020 9:09am

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Post# 31342382

Capstone Reports Strong Second Quarter 2020 Results

Strong second quarter 2020 (Q2 2020) copper production of 38.5 million pounds despite COVID-19 related production limitations at Cozamin. C1 cash costs¹ of $1.87 per payable pound of copper produced are 9% lower than Q1 2020.
Q2 2020 net income of $4.3 million or $0.01 per share, benefiting from positive non-cash provisional pricing adjustments of $13.6 million.
Q2 2020 operating cash flow of $45.1 million(Q2 2019 - $30.3 million). Operating cash flow was positively impacted by managing working capital, including $26.7 million of customer advances on future off-take. Operating cash flow increased 38% to $0.11 per share (Q2 2019 - $0.08 per share).
Balance Sheet – Position of Strength

The Company’s available liquidity¹ improved from $112 million at March 31, 2020 to $136.3 million at June 30, 2020, with cash and short-term investments of $86.2 million and a net debt balance of $163.7 million, and $50.1 million undrawn on the revolving credit facility. Capstone’s net debt/EBITDA improved during the quarter to 2.54x.

During the quarter amidst COVID-19, Capstone undertook a series of management actions to further strengthen liquidity and manage compliance with banking covenants including the following:
- Maximizing sales volumes and advances;
- Locking in opportunistic hedges/supply contracts on input costs including foreign exchange, interest rates and diesel, which provide savings of $18 million compared to budget for 2020 and 2021;
- Securing a $20 million concentrate off-take arrangement with a major customer. Under the terms of the arrangement, Capstone received a $20 million advance which is expected to be repaid via delivery of concentrate produced by Pinto Valley. The arrangement provides full copper price optionality as the price is not fixed and will be determined at time of delivery;
- Securing a $6.7 million sales advance at Pinto Valley from another major customer related to concentrate inventory held at the port warehouse and sold in July 2020; and
- Managing working capital and inventory at sites.
Resilient Growth on Track