Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Capstone Copper Corp (CSCCF, Financial) achieved commercial production levels at its Montevallo development project within three months of producing first concentrate.
- The company completed its first two concentrate shipments, meeting all required specifications.
- Capstone Copper Corp (CSCCF) released a feasibility study for the Monteverde optimized project, which is expected to expand production significantly with a low capital intensity.
- The company maintained a strong balance sheet with net debt largely unchanged at $751 million, positioning it well for future growth.
- Capstone Copper Corp (CSCCF) received the 2024 best midsized company of the year award from Tsunami, the Chile Mining Association, recognizing its ESG practices and community engagement.
Negative Points
- Capstone Copper Corp (CSCCF) revised its C1 cash cost guidance to $2.60 to $2.80 per pound, higher than initially expected due to later-than-expected ramp-ups.
- Copper sales were below production levels by 500 tons, impacting financial results.
- The company experienced unplanned maintenance at Pinto Valley, affecting throughput and production targets.
- Mantos Blancos production and costs trended unfavorably relative to guidance due to earlier operational challenges.
- Capstone Copper Corp (CSCCF) expects increased finance expenses and depreciation in Q4 due to the achievement of commercial production at Monteverde.
Q & A Highlights
Q: Can you provide an update on the Monteverde sulfide project and any potential risks to achieving consistent production levels?
A: John Mackenzie, CEO, stated that the equipment has been performing well, with no significant bottlenecks. Cashel Meagher, COO, added that while there have been minor interruptions, they have been manageable, and the plant is on track to achieve full nameplate production by the end of the year.
Q: How did the operations at Monteverde perform in October, particularly in terms of throughput and recoveries?
A: Cashel Meagher, COO, mentioned that throughput was in the high 20,000 tons per day, and recoveries were in the low 80% range. The focus is now on optimizing metallurgical processes to further improve recoveries.
Q: Is the CapEx guidance for 2024 still valid, or has it changed?
A: Raman Randhawa, CFO, confirmed that the CapEx guidance remains largely unchanged, with some additional exploration authorized earlier in the year.
Q: How are recoveries progressing at Monteverde, and is the target of 88% by year-end achievable?
A: Cashel Meagher, COO, and Peter Amelunxen, SVP Technical Services, indicated that recoveries are improving, with current levels around 80-82%. They are optimistic about reaching the 88% target as operational controls are refined.
Q: What is the status of the Santa Domingo minority sell-down process, and when can we expect an update?
A: John Mackenzie, CEO, reported strong interest from various parties, including Japanese companies and Middle Eastern sovereign wealth funds. An update is expected in the first half of 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
