CAPSTONE COPPER CORP. (CSC)
Share Price Analysis and Chart

10/07/2024

1

Outperform

$12.80

25.49%

Macquarie highlights quarterly production previews for Capstone Copper, Sandfire Resources and South32 ((S32)).

Capstone Copper remains the preferred copper exposure play for Macquarie due to the company's robust organic growth, potential inclusion in the ASX300 in the September rebalance, and possible asset divestments.

The broker forecasts 2Q2024 realised copper prices of US$4.45/lb, some 16% above the 1Q2024 price of US$3.83/lc.

Accordingly, the quarter-on-quarter EBITDA is expected to rise 57% to US$122m for Capstone Copper. Total production is forecast at 42.6kt in the June quarter.

The company is due to report the June quarter results on August 2. Outperform rating and $12.80 target retained.

FORECAST
Macquarie forecasts a full year FY24 dividend of 0.00 cents.
Macquarie forecasts a full year FY25 dividend of 0.00 cents.

11/06/2024

1

Initiation of coverage with Buy

$14.50

42.16%

Moelis initiates coverage on Capstone Copper with a Buy rating and $14.50 target, as the recent listing of the stock on ASX has provided domestic investors with an opportunity to gain exposure to a large Canadian-listed copper play that has four assets across the US, Mexico and Chile.

The broker further suggests exposure arrives at a time of limited investment choice locally and a persistent view that copper fundamentals are likely to be very supportive of the commodity price.

Moelis calculates, on current trading, the stock represents an EV/EBITDA multiple of 8.7x, 6.5x and 4.9x on FY24, FY25 and FY26 respectively.

FORECAST
Moelis forecasts a full year FY24 EPS of 0.61 cents.
Moelis forecasts a full year FY25 EPS of 0.92 cents.