Capstone Copper (CS) AI Stock Analysis

• Market Cap: C$7.07B
• Dividend Yield: N/A
• Average Volume (3M): 2.28M
• Price to Earnings (P/E): 67.3
• Beta (1Y): 2.55
• Revenue Growth: 42.07%
• EPS Growth: N/A
• Country: CA
• Employees: 1,049
• Sector: Basic Materials
• Sector Strength: 60
• Industry: Copper
• EPS (TTM): 0.06
• Shares Outstanding: 762,247,000
• 10 Day Avg. Volume: 2,894,691
• 30 Day Avg. Volume: 2,283,299
• PEG Ratio: -0.32
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 2.91
• P/FCF Ratio: -42.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$10.70
• Price Target Upside: 15.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 70 Outperform
• Price Target: C$9.50 ▲(2.70% Upside)

Capstone Copper's strong earnings call performance and positive corporate events are significant strengths, indicating potential for growth. However, cash flow challenges and high valuation metrics present risks that temper the overall score.

Positive Factors

Financial Stability

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

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

Production Capacity

In January 2025, 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 Challenges

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

Market Valuation

Buy-rated stocks in the sector offer more attractive valuation and better risk-reward compared to CS.

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 (CS) is a dynamic mining company primarily engaged in the exploration, development, and production of copper and other base metals. With a strong focus on sustainability and responsible mining practices, the company operates in key regions known for rich mineral deposits. Capstone Copper aims to meet the growing global demand for copper, which is essential for various industries, including electronics, construction, and renewable energy.

How the Company Makes Money

Capstone Copper generates revenue primarily through the sale of copper concentrate, which is produced from its mining operations. The company benefits from fluctuations in copper prices in global markets, and its profitability is closely linked to these market conditions. Additional revenue streams include by-products such as gold and silver, which are extracted during copper production. Capstone Copper has established significant partnerships with various stakeholders, including suppliers and local communities, to enhance its operational efficiency and ensure sustainable practices. The company also focuses on optimizing its mining processes to reduce costs and improve margins, further contributing to its earnings.

Capstone Copper Financial Statement Overview

Summary

Capstone Copper shows strong revenue growth and operational efficiency, highlighted by improved gross and EBIT margins. The balance sheet remains solid with moderate leverage and increasing 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.94B	1.60B	1.35B	1.30B	794.77M	453.76M
Gross Profit	606.99M	522.46M	83.02M	207.80M	360.44M	82.18M
EBITDA	594.31M	353.40M	175.48M	391.10M	442.74M	119.86M
Net Income	75.58M	82.91M	-101.67M	122.20M	226.83M	12.56M
Balance Sheet
Total Assets	6.61B	6.37B	5.87B	5.38B	1.73B	1.39B
Cash, Cash Equivalents and Short-Term Investments	311.60M	132.35M	126.82M	171.86M	264.35M	60.01M
Total Debt	1.35B	1.43B	1.16B	702.97M	16.04M	193.13M
Total Liabilities	3.11B	2.90B	2.81B	2.20B	711.53M	502.42M
Stockholders Equity	3.08B	3.05B	2.66B	2.75B	1.02B	779.06M
Cash Flow
Free Cash Flow	130.46M	-109.65M	-499.91M	-472.33M	419.92M	49.65M
Operating Cash Flow	611.63M	398.64M	116.82M	87.42M	553.35M	147.17M
Investing Cash Flow	-481.11M	-506.77M	-673.28M	-370.74M	-143.69M	-96.37M
Financing Cash Flow	42.88M	115.94M	508.47M	192.14M	-204.28M	-34.13M

Capstone Copper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 9.25 is above the 20-day moving average (MA) of 8.40, above the 50-day MA of 8.15, and above the 200-day MA of 8.19, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 64.37 is Neutral, neither overbought nor oversold. The STOCH value of 86.74 is Negative, 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
LUN	73 Outperform	$13.39B	25.63	2.61%	2.08%	-16.62%	-112.03%
CS	70 Outperform	C$7.07B	67.27	2.51%	―	42.07%	―
ERO	70 Neutral	$1.99B	9.92	19.31%	―	24.05%	―
HBM	67 Neutral	$6.01B	14.84	10.81%	0.13%	11.90%	221.39%
FM	67 Neutral	C$19.72B	70.94	1.79%	―	-7.46%	―
TKO	58 Neutral	$1.45B	11.15	-5.19%	―	0.10%	-135.33%
Sector *	57 Neutral	£2.53B	6.25	-0.23%	45.92%	10.12%	5.01%

Capstone Copper Corporate Events

Capstone Copper Sanctions Mantoverde Expansion for Enhanced Production

Capstone Copper has announced the sanctioning of the Mantoverde Optimized project, a brownfield expansion of its sulphide concentrator, which will increase throughput and extend the mine’s life. This project, requiring an estimated capital cost of $176 million, is expected to enhance copper and gold production and is part of Capstone’s strategy for transformational growth in Chile. The expansion is anticipated to be completed by early 2027, with significant implications for the company’s production capacity and cost efficiency.

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 Achieves Record Q2 2025 Results and Secures Key Permit

Capstone Copper Corp. reported record financial results for the second quarter of 2025, with revenue and adjusted EBITDA reaching new highs. The company achieved record copper production and significant cash flow, and completed a balance sheet refinancing strategy. The receipt of the Mantoverde Optimized permit marks a significant milestone, allowing for increased throughput and positioning the company well for future growth. Capstone Copper remains on track to meet its full-year guidance, with expectations for higher production in the second half of the year.

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 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.