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Capstone Copper Corp T.CS

Alternate Symbol(s):  CSCCF

Capstone Copper Corp. is a copper producer operating in the Americas. It is engaged in the production of and exploration of base metals in the United States (US), Mexico, and Chile, with a focus on copper. The Company, through a wholly owned Chilean subsidiary, Mantos Copper S.A., owns and operates the Mantos Blancos mine, located 45 kilometers (km) northeast of Antofagasta, Chile and the 70%-owned Mantoverde mine, through a subsidiary, Mantoverde S.A., located 50 km southeast of Chanaral, Chile. It owns and operates the Pinto Valley mine located in Arizona, US, Cozamin mine located in Zacatecas, Mexico, and has a portfolio of exploration properties in Mexico. It also holds the fully permitted Santo Domingo copper-iron-gold-cobalt development project in the Atacama region of Chile, 35km northeast of Mantoverde. Through Compania Minera Sierra Norte S.A., it owns 100% of Sierra Norte, an iron oxide copper gold deposit located in Chile's Atacama Region, that spans over 7,000 hectares.


TSX:CS - Post by User

Bullboard Posts
Post by templetoothon Feb 13, 2016 12:54am
246 Views
Post# 24555237

Mixed signals from Scotia

Mixed signals from Scotia
Scotia analyst put up a note after a visit to Arizona operation, saying some nice things re Pinto Valley production of 142 mm lbs for 2016 at a cash cost of $1.78..... Price target of $1.20 .... but then kinda rains on the parade by predicting a Q4 loss of 3 cents per share and cash flow of a penny.

For 2016, the earnings estimate is 1 cent per share, but more encouraging, cash flow of 30 cents.
At $2 copper, he sees sufficient liquidity to see the company thru to 2H/17... but then goes on to advise that the senior debt covenant of less than 3:1 vs trailing twelve month EBITDA would be broken "prior to this".

Altogether, he paints a very mixed picture. I'm on the sidelines right now, scratching my head after making a few mildly profitable trades of late. Still have some  HBM but it's pretty much in the same boat re the covenant situation. If copper sees $1.95 ....gulp.

Has anyone got any ideas for an appropriate hedge short position? I see that BMO has SCCO pegged at low 40's p/e for '16 & '17, cash flow multiples in the 23 range, both years. What's a good ratio
Bullboard Posts