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Capstone reports 35% copper production increase in Q1 2021, becomes debt free

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(Kitco News) - Capstone Mining (TSX:CS) announced that its Q1 2021 production totaled 47.8 million pounds of copper and was 35% higher than Q1 2020 due to the planned growth as a result of PV3 Optimization Phase 1 projects and Cozamin one-way ramp completion.

The company said that higher production at both mines was primarily a result of higher throughput, higher grades and higher recoveries. The increase in production was the main driver for the $0.35 per payable pound decrease in C1 cash costs.

At Pinto Valley mine, Q1 2021 production increased by 36% compared to the same period last year underpinned by the investments in PV3 Optimization Phase 1 projects which were completed in 2020.

At Cozamin mine, production in Q1 2021 was 31% higher than the same period last year. This was primarily due to the completion of the Calicanto one-way ramp which has debottlenecked the mine haulage system that has facilitated an increase in underground mining rates from 3,052 tpd in Q1 2020 to 3,641 tpd in Q1 2021.

The company’s Q1 2021 net income was $127.0 million, or $0.25 per share and Q1 2021 adjusted net income was $64.4 million or $0.16 per share. Net income includes $92.4 million impairment reversal on mineral properties related to Santo Domingo which is excluded from adjusted net income.

“Q1 2021 operating cash flow of $95 million was the strongest in our fifteen-year history as a producer. Excellent operating performance and cost containment in a higher copper price environment surpassed our expectations,” said Darren Pylot, President and CEO of Capstone. “We are now debt free and generating cash flow as a mid-cap company with a peer-leading 100% growth plan over the next three years.”

Capstone Mining is a Canadian base metals mining company, focused on copper. The company’s two producing mines are the Pinto Valley copper mine located in Arizona, US and the Cozamin copper-silver mine in Zacatecas State, Mexico. In addition, Capstone owns 100% of Santo Domingo, a large scale, fully permitted, copper-iron-gold project in Region III, Chile, as well as a portfolio of exploration properties.

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