Capstone Copper (CS) AI Stock Analysis

• Market Cap: $6.21B
• Dividend Yield: N/A
• Average Volume (3M): 2.15M
• Price to Earnings (P/E): 55.4
• Beta (1Y): 2.49
• Revenue Growth: 37.30%
• EPS Growth: N/A
• Country: CA
• Employees: 1,049
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Copper
• EPS (TTM): 0.01
• Shares Outstanding: 762,229,700
• 10 Day Avg. Volume: 1,870,318
• 30 Day Avg. Volume: 2,146,717
• PEG Ratio: 0.20
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -41.72
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 3.32
• Enterprise Value/Gross Profit: -750.21
• Enterprise Value/Ebitda: -10.83
• 1Y Price Target: $10.99
• Price Target Upside: 34.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 64 Neutral
• Price Target: C$8.50 ▲(4.17%Upside)

Capstone Copper's overall stock score is primarily driven by its strong financial performance and strategic corporate events, which are balanced by valuation concerns and technical indicators suggesting moderate momentum. The company's earnings call provided a mixed yet slightly positive outlook, highlighting significant production achievements and strategic initiatives amidst operational challenges.

Positive Factors

Financial Flexibility

Capstone finished Q4/24 with $506.4M in available liquidity, providing a strong financial position with $132.4M in cash and short-term investments and $374.0M in undrawn revolving credit facility capacity.

Operational Performance

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

Production Growth

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

Negative Factors

Cost Position

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.

Capstone Copper Business Overview & Revenue Model

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.

How the Company Makes Money

Capstone Copper makes money through the extraction, production, and sale of copper. The company's revenue model revolves around mining operations where it extracts copper ore from its owned and operated mines. Once extracted, the ore undergoes processing to produce copper concentrate and cathode, which are then sold to smelters, refineries, and other industrial customers. Key revenue streams include the sale of these copper products, often under long-term contracts or spot market sales. The company's earnings are significantly influenced by copper prices on global commodity markets, production volumes, and operational efficiencies. Additionally, Capstone Copper might engage in strategic partnerships or joint ventures to optimize its mining operations and expand its market reach, though specific partnerships are null at this time.

Capstone Copper Financial Statement Overview

Summary

Capstone Copper demonstrates strong revenue growth and operational efficiency with improved gross and EBIT margins. The balance sheet is solid with moderate leverage and growing shareholder equity. However, profitability challenges and high capital expenditures impacting free cash flow suggest areas 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: 8.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 8.16 is above the 20-day moving average (MA) of 8.16, above the 50-day MA of 7.74, and below the 200-day MA of 8.33, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 55.43 is Neutral, neither overbought nor oversold. The STOCH value of 71.07 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
CS	64 Neutral	$6.21B	55.37	2.71%	―	37.30%	―
Sector *	59 Neutral	HK$17.46B	4.72	-5.52%	3.34%	-3.57%	-61.41%
HBM	―	$4.08B	26.51	6.50%	0.14%	―	―
TGB	―	$1.09B	10.75	-12.40%	―	―	―
LUNMF	―	$8.95B	24.68	2.66%	2.04%	―	―
ERO	―	$1.54B	82.17	2.54%	―	―	―
FQVLF	―	$14.93B	108.33	1.22%	―	―	―

Capstone Copper Corporate Events

Capstone Copper Receives Key Permit for Mantoverde Expansion

Capstone Copper Corp. has received the DIA environmental permit for its Mantoverde Optimized project, marking a significant milestone in its expansion efforts. The project will increase throughput at the Mantoverde mine from 32,000 to 45,000 ore tonnes per day and extend the mine’s life from 19 to 25 years. This expansion is expected to add 20,000 tonnes of copper production annually with a capital investment of approximately $150 million. The permit is crucial for the project’s development and positions Capstone for transformational growth, especially when combined with the Santo Domingo project, potentially making the Mantoverde-Santo Domingo district one of the largest copper-producing areas globally. The company is committed to high safety and environmental standards and plans to update stakeholders on capital expenditures and project timelines pending board approvals.

The most recent analyst rating on (TSE:CS) stock is a Buy with a C$12.00 price target. To see the full list of analyst forecasts on Capstone Copper stock, see the TSE:CS Stock Forecast page.

Capstone Copper to Announce Q2 2025 Financial Results

Capstone Copper Corp. announced it will release its second quarter 2025 financial results on July 31, 2025, followed by an investor conference call. The release and call are part of Capstone’s ongoing efforts to maintain transparency and communication with stakeholders, reflecting its commitment to operational excellence and stakeholder value. This announcement may impact investor perceptions and market positioning as the company continues to focus on growth and profitability in the copper mining sector.

The most recent analyst rating on (TSE:CS) stock is a Buy with a C$12.00 price target. To see the full list of analyst forecasts on Capstone Copper stock, see the TSE:CS Stock Forecast page.

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.