Capstone Copper (CS) AI Stock Analysis

• Market Cap: C$10.07B
• Dividend Yield: N/A
• Average Volume (3M): 4.87M
• Price to Earnings (P/E): 23.4
• Beta (1Y): 2.64
• 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: 763,631,530
• 10 Day Avg. Volume: 4,044,287
• 30 Day Avg. Volume: 4,865,215
• 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$14.52
• Price Target Upside: 10.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: C$14.50 ▲(9.93% 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

Revenue Growth

Record revenue indicates strong demand and effective sales strategies, supporting long-term growth and market position.

Joint Venture

The joint venture enhances project financing and risk-sharing, potentially accelerating development and expanding resource base.

Operational Efficiency

Sustained cost reduction efforts improve margins and competitiveness, ensuring better profitability and financial health.

Negative Factors

Operational Challenges

Operational disruptions can hinder production efficiency and output, affecting revenue and increasing operational risks.

Environmental Impact

Environmental factors like droughts pose risks to production stability, potentially impacting long-term operational planning.

Production Guidance

Lower production guidance may signal challenges in meeting demand, affecting revenue projections and market confidence.

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, but faces cash flow challenges with a significant decline in free cash flow growth. The balance sheet is stable with manageable leverage, though profitability from equity could improve.

Income Statement

Capstone Copper's income statement reflects a solid revenue growth rate of 8.37% TTM, indicating a positive trajectory. Gross profit margin stands at 31.24%, showcasing effective cost management. However, the net profit margin is relatively low at 3.89%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are healthy at 12.94% and 30.59%, respectively, indicating operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.44, indicating manageable leverage. Return on equity is low at 2.48%, suggesting limited profitability from equity investments. The equity ratio is stable, reflecting a solid capital structure. Overall, the balance sheet is stable but could benefit from improved returns.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, down by 668.36% TTM, which is a concern. The operating cash flow to net income ratio is strong at 0.91, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is low at 0.21, highlighting potential cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.35B	1.60B	1.35B	1.30B	794.77M	453.76M
Gross Profit	767.13M	522.46M	319.36M	381.86M	452.37M	162.57M
EBITDA	1.09B	353.40M	184.33M	334.97M	434.28M	96.77M
Net Income	404.77M	82.91M	-101.67M	122.20M	226.83M	12.56M
Balance Sheet
Total Assets	9.70B	6.36B	5.83B	5.43B	1.71B	1.39B
Cash, Cash Equivalents and Short-Term Investments	431.48M	132.27M	125.91M	173.55M	261.87M	59.88M
Total Debt	2.08B	1.32B	1.36B	811.22M	15.89M	192.74M
Total Liabilities	4.47B	2.90B	2.79B	2.22B	704.84M	501.41M
Stockholders Equity	4.63B	3.05B	2.64B	2.78B	1.01B	777.49M
Cash Flow
Free Cash Flow	54.86M	-133.88M	-577.25M	-488.34M	409.41M	40.18M
Operating Cash Flow	591.74M	292.64M	49.48M	54.75M	540.59M	142.65M
Investing Cash Flow	-536.87M	-425.08M	-621.66M	-337.00M	-158.13M	-101.26M
Financing Cash Flow	110.99M	139.87M	523.41M	193.79M	-180.53M	-23.88M

Capstone Copper Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 13.19 is above the 20-day moving average (MA) of 12.70, above the 50-day MA of 12.17, and above the 200-day MA of 9.29, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 58.83 is Neutral, neither overbought nor oversold. The STOCH value of 37.60 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
ERO	76 Outperform	C$3.76B	19.36	17.26%	―	29.97%	658.38%
HBM	76 Outperform	C$10.51B	16.31	16.43%	0.08%	5.40%	413.48%
CS	73 Outperform	C$10.07B	23.42	9.83%	―	44.69%	1216.12%
FM	73 Outperform	C$29.34B	456.16	0.41%	―	8.17%	―
LUN	72 Outperform	C$24.22B	587.14	3.33%	0.71%	-19.68%	-90.05%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TKO	58 Neutral	$2.72B	-41.83	-10.53%	―	1.17%	-169.37%

Capstone Copper Corporate Events

Capstone Copper Achieves Record Q3 2025 Results Amid Strategic Growth Initiatives

Capstone Copper reported record financial results for Q3 2025, with revenue reaching an all-time high and adjusted EBITDA setting a quarterly record. The company’s strong performance was driven by increased copper production and lower cash costs, alongside strategic initiatives such as the Mantoverde Optimized project and a joint venture partnership at Santo Domingo. These efforts are expected to enhance project returns and support long-term value creation, although consolidated copper production is trending towards the lower end of guidance for 2025.

Capstone Copper’s 2024 Sustainability Report Highlights Progress in Sustainable Operations

Capstone Copper has released its 2024 Sustainability Report, highlighting significant achievements in sustainability and operational milestones. The report details the company’s progress in reducing greenhouse gas emissions, increasing renewable energy usage, and improving water management. Notably, the Mantoverde concentrator unit began production, and the company achieved The Copper Mark certification for its Pinto Valley site. Despite a slight increase in injury rates, there was a substantial improvement in safety training hours. The workforce decreased due to project completion, but the proportion of female employees increased.

Capstone Copper Secures $360 Million Investment from Orion for Chilean Projects

Capstone Copper Corp. has announced a significant investment from Orion Resource Partners, which will acquire a 25% interest in the Santo Domingo and Sierra Norte projects for up to $360 million. This transaction provides financial flexibility for Capstone, reduces its capital funding requirements, and supports further exploration and development in the region. The partnership is expected to enhance project returns and create substantial economic benefits for local stakeholders in Chile, including job creation and tax contributions.

Capstone Copper Announces Promising Phase 1 Drill Results at Mantoverde

Capstone Copper Corp. has announced promising results from its Phase 1 drill program at the Mantoverde site in Chile, with higher than expected copper grades in several sectors. The findings, particularly in the Brecha Flores sector and the Santa Clara Corridor, suggest potential for resource growth and reserve conversion, supporting future expansion plans. The results also reinforce the geological model and indicate favorable implications for future mining operations, including potential improvements in stripping ratios. The company plans to continue its exploration efforts with a Phase 2 drill program focusing on the northern corridor, aiming to further capitalize on the site’s resource potential.

Capstone Copper to Announce Q3 2025 Financial Results

Capstone Copper Corp. announced it will release its third quarter 2025 financial results on October 30, 2025, followed by an investor conference call. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting investor decisions and market positioning.

Capstone Copper Resumes Full Operations at Mantoverde Mine

Capstone Copper Corp. has resumed full operations at its Mantoverde mine in Chile after addressing a motor failure in the ball mill that had interrupted production. The company plans to conduct five days of maintenance at the end of September. This resumption is significant for Capstone’s operational stability and its strategy to enhance copper production, which is crucial for meeting global demand and maintaining its competitive position in the mining industry.