https://www.miningweekly.com

Capstone Mining’s Q2 profit sags on lower sales, prices

30th July 2015

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Canadian miner Capstone Mining has reported a 92% slide in second-quarter earnings, as lower sales, lower realised prices and increased costs impacted the company’s quarterly performance.

Vancouver-based Capstone, which had operations in the US, Mexico, Canada, Chile and Australia, reported net income and adjusted net income of $1.3-million, or nil a share.

Revenue declined 34.5% to $112.5-million, impacted by a 16.7% decrease in copper sold at 20 473 t. The average realised price for copper fell 20.5% to $2.67/lb in the period, while C1 cash cost a payable pound produced rose more than 8% to $2.22/lb.

"In the second quarter of 2015, we continued our focus on flexibility and execution. We maintained our financial flexibility by entering into zero-cost collars for 36 000 t of copper production at a minimum price of $2.60/lb to the end of [the third quarter] to ensure we could execute our 2015 capital programme in this difficult copper price environment,” president and CEO Darren Pylot explained on Tuesday.

Capstone expected to produce about 90 000 t of copper this year at a C1 cash cost of $2/lb to $2.10/lb of payable copper produced, net of by-product credits and selling costs. However, the company pointed out that this year's output distribution by mine was expected to be different than originally expected, with outperformance at Minto, in Canada, expected to make up for most of the anticipated shortfall at Cozamin, in Mexico.

Capstone’s TSX-listed stock on Wednesday closed up 5.56% at C$0.95 apiece. Copper prices had fallen to near six-year lows, wiping nearly 58% off the stock’s value since the start of the year.

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

Showroom

Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 
Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/03/2024)
15th March 2024 By: Martin Creamer
Gold, hydrogen, mining boost make headlines
Gold, hydrogen, mining boost make headlines
15th March 2024
Magazine round up | 15 March 2024
Magazine round up | 15 March 2024
15th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.164 0.196s - 112pq - 2rq
Subscribe Now