Capstone Copper (CS) AI Stock Analysis

• Market Cap: $6.30B
• Dividend Yield: N/A
• Average Volume (3M): 2.66M
• Price to Earnings (P/E): 56.8
• Beta (1Y): 2.45
• Revenue Growth: 37.30%
• EPS Growth: N/A
• Country: CA
• Employees: 1,049
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Copper
• EPS (TTM): 0.01
• Shares Outstanding: 762,190,200
• 10 Day Avg. Volume: 2,562,504
• 30 Day Avg. Volume: 2,660,085
• PEG Ratio: -0.29
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.83
• Enterprise Value/Market Cap: 0.06
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 1.90
• Enterprise Value/Ebitda: 0.29
• 1Y Price Target: $11.10
• Price Target Upside: 32.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 64 Neutral
• Price Target: C$8.50 ▲(1.67%Upside)

Capstone Copper's overall score is driven by strong financial performance and promising corporate events. However, high valuation and profitability challenges weigh down the score. Technical indicators provide a positive outlook, and recent earnings call guidance is supportive, though it highlights operational challenges.

Positive Factors

Copper Production

In a rising copper price environment, CS is expected to perform well due to elevated operational leverage.

Financial Flexibility

Capstone's financial flexibility and diversified asset base will allow the company to pursue value accretive opportunities, supporting production growth and lowering costs.

Operational Performance

Mantoverde sulphides produced a record 6.6kt of copper, marking the first month with average throughput exceeding the plant's nameplate capacity.

Negative Factors

Cash Cost Concerns

A significant cash cost decline is unlikely before Santo Domingo comes online, placing Capstone at the high end of the cash cost curve.

Project Execution Risks

There are execution risks on a series of debottlenecking projects and uncertainties around funding for the Santo Domingo project.

Sales Performance

Copper sales were below payable production levels by ~2.3kt driven by seasonal swells at load ports in Chile.

Capstone Copper Business Overview & Revenue Model

Company Description

Capstone Copper (CS) is a mining company engaged in the exploration, development, and production of copper. Operating primarily in the natural resources sector, the company focuses on producing high-quality copper concentrate through its operations in the Americas. Capstone Copper's core products are copper and associated by-products, which are essential materials for various industrial applications, including construction, electronics, and renewable energy technologies.

How the Company Makes Money

Capstone Copper generates revenue through the sale of copper concentrate extracted from its mining operations. The company operates several mines and processing facilities where it extracts, processes, and sells copper and other by-products such as gold and silver, which are often found in copper deposits. Revenue is primarily driven by the volume of copper produced and sold, as well as global copper prices, which are influenced by market demand and supply dynamics. Additionally, Capstone Copper may engage in strategic partnerships or joint ventures with other mining companies to optimize production and expand its market reach, further contributing to its earnings.

Capstone Copper Financial Statement Overview

Summary

Capstone Copper shows strong revenue growth and operational efficiency, with improved gross and EBIT margins. The balance sheet is stable with moderate leverage, however, profitability challenges and high capital expenditures impacting free cash flow suggest room for improvement in cost management and strategic investments.

Income Statement

Capstone Copper has shown a strong revenue growth with a 18.86% increase from 2023 to 2024, indicating positive momentum. The gross profit margin for 2024 was 32.66%, which is a significant improvement from 2023. However, the net profit margin stands at 5.19%, reflecting some profitability challenges. EBIT and EBITDA margins were 10.19% and 22.10% respectively, showing a solid operational efficiency but room for improvement in net profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.47 indicates a stable financial leverage, with a healthy equity base. The return on equity (ROE) has improved to 2.71% in 2024, which suggests increasing shareholder value. Equity ratio at 47.98% shows a balanced approach between equity and assets, although there is room for improvement in asset utilization.

Cash Flow

While operating cash flow increased to $398.64 million in 2024, the company faced negative free cash flow due to high capital expenditures. The operating cash flow to net income ratio was 4.81, indicating strong cash generation ability. However, the negative free cash flow to net income ratio highlights the need for improved capital management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.60B	1.35B	1.30B	794.77M	453.76M
Gross Profit	522.46M	83.02M	207.80M	360.44M	82.18M
EBITDA	353.40M	175.48M	391.10M	442.74M	119.86M
Net Income	82.91M	-101.67M	122.20M	226.83M	12.56M
Balance Sheet
Total Assets	6.37B	5.87B	5.38B	1.73B	1.39B
Cash, Cash Equivalents and Short-Term Investments	145.40M	126.82M	171.86M	264.35M	60.01M
Total Debt	1.43B	1.16B	702.97M	16.04M	193.13M
Total Liabilities	2.90B	2.81B	2.20B	711.53M	502.42M
Stockholders Equity	3.05B	2.66B	2.75B	1.02B	779.06M
Cash Flow
Free Cash Flow	-109.65M	-499.91M	-472.33M	419.92M	49.65M
Operating Cash Flow	398.64M	116.82M	87.42M	553.35M	147.17M
Investing Cash Flow	-506.77M	-673.28M	-370.74M	-143.69M	-96.37M
Financing Cash Flow	115.94M	508.47M	192.14M	-204.28M	-34.13M

Capstone Copper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CS, the sentiment is Positive. The current price of 8.36 is above the 20-day moving average (MA) of 7.85, above the 50-day MA of 7.27, and below the 200-day MA of 8.51, indicating a neutral trend. The MACD of 0.25 indicates Negative momentum. The RSI at 64.73 is Neutral, neither overbought nor oversold. The STOCH value of 76.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CS.

Capstone Copper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HBM	76 Outperform	$5.71B	26.24	6.50%	0.14%	10.69%	79.56%
LUN	75 Outperform	$12.26B	25.63	2.66%	2.30%	-8.36%	-200.42%
CS	64 Neutral	$6.30B	56.79	2.71%	―	37.30%	―
ERO	64 Neutral	$2.38B	81.11	2.54%	―	16.82%	-67.73%
FM	64 Neutral	$19.96B	106.14	1.22%	―	-13.79%	―
TKO	62 Neutral	$1.36B	11.15	-12.40%	―	7.36%	-159.52%
Sector *	44 Neutral	C$967.20M	-6.69	-13.35%	2.72%	17.55%	-32.18%

Capstone Copper Corporate Events

Capstone Copper Enhances Financial Flexibility with Amended Credit Facility

Capstone Copper Corp. has announced an amendment to its revolving credit facility, increasing the aggregate commitments from $700 million to $1 billion and extending the maturity to May 2029. This move is part of Capstone’s strategy to strengthen its balance sheet and simplify its debt structure, with the only significant maturities now set for 2029 and 2033. The company plans to use proceeds from previously announced senior unsecured notes to repay its share of project financing debt at the Mantoverde subsidiary. This financial restructuring is expected to enhance Capstone’s operational flexibility and support its growth initiatives in the copper mining industry.

Capstone Copper Reports Strong Shareholder Support at 2025 AGM

Capstone Copper Corp. announced the results of its 2025 Annual General Meeting, where shareholders voted overwhelmingly in favor of all proposed items, including the election of eight directors and the re-appointment of Deloitte LLP as auditors. The meeting saw a high voter turnout, with 77.96% of common shares represented. The approval of executive compensation and other business items reflects strong shareholder support, positioning the company well for future strategic initiatives.

Capstone Copper Achieves Record Q1 2025 Production and Revenue

Capstone Copper Corp. reported a strong start to 2025 with record sulphide copper production and revenues in the first quarter. The company achieved a significant increase in adjusted EBITDA, driven by higher copper production and prices. Despite a net loss, Capstone maintained a robust financial position with substantial liquidity and reiterated its guidance for 2025 copper production and costs. The company also completed a significant debt offering and repurchased a royalty, enhancing its financial flexibility and operational outlook.

Capstone Copper to Announce Q1 2025 Financial Results

Capstone Copper Corp. announced that it will release its first quarter 2025 financial results on May 1, 2025, after market close. The announcement will be followed by an investor conference call. This release is significant for stakeholders as it provides insights into the company’s financial performance and operational progress, which are crucial for assessing its market position and future growth prospects.