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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
Comment by GuyMiningon May 17, 2019 9:25am
83 Views
Post# 29755233

RE:.58$.... ok wtf going on

RE:.58$.... ok wtf going on On Sunday, May 5th Trump's tweet ended any hope we would see a trade deal any time soon as i'm sure you know.  Lundin is -6% since then, Capstone is down 7%, Copper Mtn is down 8%, Taseko is down 18%, Hudbay down 22%.  Problem is if you look at YTD numbers that CS has greatly underperformed (this despite having a good Q1).  They are down 4% YTD despite copper prices up 2%, and peers like TKO +15%, CMMC +27%, ERO +81% etc, etc. 

Is there balance sheet the problem?  No, I see Analysts don't worry about that at all.  Net debt to ebitda is ~1.2x which is fine (CMMC, TKO have 2.8 and 3.2x respectively by comparison).  I think it is a serious image problem.  Perhaps this improves if they were to have a string of good news including a series of good operational quarters, sale of Minto to make story cleaner, and get a strategic partner for Santo Domingo (i.e. sale of 50% of the project).  The latter would force analysts to give some value in their analysis - most currently give zero or very little.

I like CS because it is so beat up and the valuation is really appealing.

GuyMining       
Bullboard Posts