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Capstone reports higher copper production in first quarter, posts net income of $35 million

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(Kitco News) - Capstone Copper (TSX:CS) announced today that its Q1 2022 consolidated copper production was 22,500 tonnes, higher than the 21,700 tonnes in Q1 2021 primarily due to addition of nine-day production at the Mantos Blancos and Mantoverde mines.

The company also reported net income of $35.1 million, or $0.08 per share, in Q1 2022, compared with net income of $127 million in Q1 2021.

Adjusted EBITDA was $123.4 million compared to $118.7 million in Q1 2021.
Operating cash flow before changes in working capital was $70.4 million in Q1 2022 compared to $245.0 million in Q1 2021, which includes a $150 million precious metal stream deposit.

The company said it is in a net cash position of $64.9 million and total available liquidity is $638.1 million, adding that the balance sheet was further expanded with the acquisition of cash and debt on the transaction with Mantos Copper.

CEO John MacKenzie stated, "This is a transformational year for Capstone as we ramp-up our new Mantos Blancos mill, construct the Mantoverde sulphides project and deliver a District Integration Plan for Santo Domingo with Mantoverde. These are critical steps toward achieving over 40% copper production growth by 2024 and a further 45% when Santo Domingo goes into production.

"In the context of the current macro-environment we have critically evaluated our business to provide guidance for the remaining 9-months of 2022, and expect to produce 136,000 to 150,000 tonnes of copper at C1 cash costs of $2.55 to $2.70 per pound."

Capstone Copper is an Americas-focused copper mining company headquartered in Vancouver, Canada. The company owns and operates the Pinto Valley copper mine located in Arizona, USA, 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.

In addition, the company owns the fully permitted Santo Domingo copper-gold project, located approximately 30 kilometres northeast of Mantoverde in the Atacama region, Chile, as well as a portfolio of exploration properties in the Americas.

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