Capstone Copper (CS) AI Stock Analysis

• Market Cap: C$12.05B
• Dividend Yield: N/A
• Average Volume (3M): 4.74M
• Price to Earnings (P/E): 28.0
• Beta (1Y): 2.44
• Revenue Growth: 44.69%
• EPS Growth: 1216.12%
• Country: CA
• Employees: 1,049
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Copper
• EPS (TTM): 0.08
• Shares Outstanding: 763,656,740
• 10 Day Avg. Volume: 6,376,768
• 30 Day Avg. Volume: 4,737,207
• PEG Ratio: -0.32
• Price to Book (P/B): 1.52
• Price to Sales (P/S): 2.91
• P/FCF Ratio: -34.71
• 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$17.58
• Price Target Upside: 11.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$18.50 ▲(17.24% Upside)

Capstone Copper's strong technical indicators and robust earnings performance drive a positive outlook. However, the stock's valuation and operational challenges, particularly at Mantoverde and Pinto Valley, suggest caution. The company's focus on strategic growth and operational efficiency supports a moderately optimistic view.

Positive Factors

Strong liquidity and leverage

Liquidity above $1 billion and a sub-1.0x net debt/EBITDA provide durable financial flexibility. This reduces refinancing and funding risk for projects, supports near-term capex and JV obligations, and cushions the company through commodity cycles over the next several quarters.

Sustained cost reductions

Three consecutive quarters of falling C1 cash costs indicate structural operational improvements and better unit-cost control. Lower sustainable cash costs protect margins if copper prices soften and support free cash flow generation across the business cycle.

Strategic JV de-risks Santo Domingo

A minority JV with external capital reduces CapEx burden, shares development risk and validates project economics. Partner funding accelerates project advancement while preserving balance sheet capacity for other growth or operational needs over the medium term.

Negative Factors

Low net profitability

A sub-4% net margin limits retained earnings and resilience to downturns, constraining the firm's ability to fund growth internally. Persistently low profitability can depress returns and force reliance on external capital for expansions or to cover unexpected operational shortfalls.

Operational reliability risk (Mantoverde)

Repeat mechanical failures point to maintenance, reliability or asset-age issues that can persist without targeted investment. Chronic downtime elevates unit costs, reduces realized volumes, and can erode margin improvements unless capital and operational plans address root causes.

Water and throughput risk (Pinto Valley)

Drought-driven throughput limits are a structural operating risk in arid jurisdictions. Water scarcity can cap production growth, require costly mitigation investments, and increase production volatility across seasons, affecting medium-term output and unit-cost stability.

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 generates revenue primarily through the sale of copper concentrate and cathode, which are sold to smelters and refiners. The company's revenue model is heavily reliant on the global demand for copper, which is influenced by factors such as industrial production, infrastructure development, and the shift towards green energy solutions. Key revenue streams include the direct sale of copper products, as well as revenue from by-products like gold and silver. Additionally, Capstone Copper may benefit from strategic partnerships with other mining firms and stakeholders in the supply chain, enhancing its operational efficiency and market reach. Fluctuations in copper prices on the commodities market significantly impact the company's earnings, making the management of production costs and operational efficiency critical for profitability.

Capstone Copper Financial Statement Overview

Summary

Capstone Copper shows strong revenue growth and operational efficiency with robust gross profit and EBIT margins. However, low net profit margin and return on equity indicate room for improvement in profitability and shareholder returns. Cash flow generation is improving but needs further enhancement for better financial flexibility.

Income Statement

Capstone Copper has demonstrated strong revenue growth with a 20.84% increase in the TTM period. The gross profit margin is healthy at 37.39%, indicating efficient cost management. However, the net profit margin is relatively low at 3.89%, suggesting potential areas for improvement in profitability. The EBIT and EBITDA margins are solid, reflecting good operational efficiency.

Balance Sheet

The company's debt-to-equity ratio of 0.52 indicates a moderate level of leverage, which is manageable but should be monitored. The return on equity is low at 2.48%, suggesting limited returns for shareholders. The equity ratio is stable, showing a strong equity base relative to total assets.

Cash Flow

Capstone Copper's free cash flow has grown by 22.99% in the TTM period, indicating improved cash generation. However, the free cash flow to net income ratio is low at 0.09, suggesting that cash flow generation from operations could be enhanced. The operating cash flow to net income ratio is 0.76, showing a decent conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.11B	1.60B	1.35B	1.30B	794.77M	453.76M
Gross Profit	717.32M	522.46M	319.36M	381.86M	452.37M	162.57M
EBITDA	915.55M	353.40M	184.33M	334.97M	434.28M	96.77M
Net Income	308.06M	82.91M	-101.67M	122.20M	226.83M	12.56M
Balance Sheet
Total Assets	6.96B	6.36B	5.83B	5.43B	1.71B	1.39B
Cash, Cash Equivalents and Short-Term Investments	309.36M	132.27M	125.91M	173.55M	261.87M	59.88M
Total Debt	1.49B	1.32B	1.36B	811.22M	15.89M	192.74M
Total Liabilities	3.21B	2.90B	2.79B	2.22B	704.84M	501.41M
Stockholders Equity	3.32B	3.05B	2.64B	2.78B	1.01B	777.49M
Cash Flow
Free Cash Flow	63.26M	-133.88M	-577.25M	-488.34M	409.41M	40.18M
Operating Cash Flow	548.49M	292.64M	49.48M	54.75M	540.59M	142.65M
Investing Cash Flow	-485.22M	-425.08M	-621.66M	-337.00M	-158.13M	-101.26M
Financing Cash Flow	103.68M	139.87M	523.41M	193.79M	-180.53M	-23.88M

Capstone Copper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 15.78 is above the 20-day moving average (MA) of 14.88, above the 50-day MA of 13.81, and above the 200-day MA of 10.39, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 57.45 is Neutral, neither overbought nor oversold. The STOCH value of 50.59 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	73 Outperform	C$12.05B	28.01	9.83%	―	44.69%	1216.12%
FM	73 Outperform	C$31.34B	486.66	0.41%	―	8.17%	―
LUN	72 Outperform	C$28.21B	757.05	3.33%	0.68%	-19.68%	-90.05%
HBM	70 Outperform	C$13.85B	22.01	16.43%	0.07%	5.40%	413.48%
ERO	69 Neutral	$5.02B	25.74	17.26%	―	29.97%	658.38%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TKO	54 Neutral	C$4.12B	―	-10.53%	―	1.17%	-169.37%

Capstone Copper Corporate Events

Capstone Copper Restarts Mantoverde Mine at Reduced Capacity Amid Ongoing Strike

Capstone Copper has resumed operations at its Mantoverde copper-gold mine in Chile after production was disrupted by restricted access to the site’s desalination plant, and it now expects to operate at 50% to 75% of normal production levels while a labour strike continues. The company emphasized its willingness to continue negotiations with Union #2, which represents about 22% of the workforce and has been on strike since January 2, stressing adherence to legal procedures, employee rights and transparency as it seeks to stabilize operations and maintain community and stakeholder benefits during the dispute.

The most recent analyst rating on (TSE:CS) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Capstone Copper stock, see the TSE:CS Stock Forecast page.

Capstone Copper’s Mantoverde Output Threatened as Strike Cuts Desalinated Water Supply

Capstone Copper has temporarily halted sulphide operations and is preparing to suspend oxide production at its Mantoverde mine in Chile after a strike by Union #2 escalated into an incident at the company’s remote desalination plant, where individuals interfered with the electrical system and cut off the water supply needed for the mine. Striking workers are blocking access to the desalination facilities, forcing Mantoverde to rely on limited on-site water reserves for essential services, while the company seeks court support to regain access and restart the plant, and continues to call for constructive dialogue with the union as it attempts to safeguard operations, uphold legal procedures and maintain its commitment to safe and responsible mining for employees and surrounding communities.

The most recent analyst rating on (TSE:CS) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Capstone Copper stock, see the TSE:CS Stock Forecast page.

Capstone Copper Hits Record 2025 Output as Chilean Mines Power Growth

Capstone Copper reported record 2025 consolidated copper production of 224,764 tonnes, meeting its annual guidance and marking a 22% increase over 2024 and 37% over 2023, driven mainly by the ramp-up of the Mantoverde Development Project and the Mantos Blancos debottlenecking initiative. Mantoverde’s annual output rose 65% year-on-year to 95,115 tonnes, with a record monthly production of 10,747 tonnes in December, while Mantos Blancos delivered 61,919 tonnes, surpassing its 2025 guidance and posting record quarterly output in the fourth quarter; Pinto Valley’s annual production reached 42,382 tonnes despite drought-related constraints, and Cozamin achieved 25,348 tonnes, near the top of its guidance range. Management framed 2025 as a transformational year marked by multiple growth milestones, including sanctioning the Mantoverde Optimized Project, securing a partner for the Santo Domingo project, advancing exploration in the Mantoverde–Santo Domingo district, and completing balance sheet refinancing, collectively positioning the company for disciplined execution and a new phase of value-accretive growth in 2026, while also updating investors on ongoing labour negotiations at Mantoverde.

The most recent analyst rating on (TSE:CS) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on Capstone Copper stock, see the TSE:CS Stock Forecast page.

Capstone Copper Faces Strike at Mantoverde Mine, Plans to Operate at Reduced Capacity

Capstone Copper said Union #2 at its Mantoverde copper-gold mine in Chile, representing about half of the mine’s employees and 22% of the total workforce, will begin a strike on 2 January 2026 after collective bargaining talks failed, prompting a planned gradual reduction of certain activities and an expectation that the operation will run at up to 30% of normal production during the stoppage. The company stressed it remains open to dialogue, will follow all legal procedures and safety measures, and highlighted that it has already reached three-year agreements with Mantoverde’s three other unions and continues to play a significant economic role in Chile through wages, benefits and local employment, underscoring both the operational risk from the strike and the broader social and economic stakes for workers, contractors and nearby communities.

The most recent analyst rating on (TSE:CS) stock is a Buy with a C$14.50 price target. To see the full list of analyst forecasts on Capstone Copper stock, see the TSE:CS Stock Forecast page.