TORONTO (miningweekly.com) – Vancouver-based base metals producer Capstone Mining has reported record operating cash flow before changes in working capital of $199.4-million for the year ended December 31, more than double that of the previous year.
Despite the strong performance, however, Capstone posted a loss for the year of $22.4-million, owing to non-cash charges of $55.8-million. This was wider than the net loss of $11.9-million booked in 2013.
Special charges included $36.2-million, which was related to a write down of inventory and capitalised mineral property costs at Minto, in Canada’s Yukon territory; $11-million, owing to the impairment of available-for-sale securities, and $8.6-million in the carrying value of the Kutcho development project, located in north-western British Columbia.
Copper production during the year at Capstone's three operating mines, including Pinto Valley, in Arizona, and Cozamin, in Mexico, was 103 353 t of copper in concentrates and cathode, for 99 739 t of payable copper at a C1 cash cost of $1.93/lb.
In an investor telephone call on Wednesday, president and CEO Darren Pylot pointed out that the company would have to make certain decisions this year, including the scale of the Pinto Valley expansion plan and on whether to develop the Santo Domingo project, in Chile.
The company might potentially also have to make a decision on a temporary shuttering of the Minto mine, in light of the current market conditions and the slower-than-expected permitting process.