CAPSTONE COPPER CORP. (CSC)
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05/11/2024

1

Outperform

$12.80

15.63%

Capstone Copper reported 3Q2024 production in line with Macquarie's forecasts. Cash costs came in slightly higher than consensus estimates, the broker notes.

Macquarie observes Mantoverde was the top-performing asset relative to consensus expectations, with mill downtime affecting Mantos Blancos and Pinto Valley.

Management indicated 2024 guidance is trending toward the lower end of production, with cash costs at the upper end due to a slower ramp in Mantoverde and increased costs at Mantos Blancos.

No change to the Outperform rating and $12.80 target price. Macquarie's earnings forecasts are maintained.

FORECAST
Macquarie forecasts a full year FY24 dividend of 0.00 cents and EPS of 20.00 cents.
Macquarie forecasts a full year FY25 dividend of 0.00 cents and EPS of 40.00 cents.

06/11/2024

1

Buy

$14.00

26.47%

Capstone Copper's quarterly proved largely in line with Moelis' estimates.

The physical output was largely as expected, with continued growth in the coming periods anticipated as capital works/process improvements at Mantos Blancos come online and Mantoverde continues to hit its straps.

The broker retains a positive view with the cashflow inflection post construction now considered imminent.

While the company has in Moelis' view enormous organic optionality within the portfolio, until a firm commitment is made to progress with Santo Domingo (potentially next year), excess operating cashflow is going to manifest on the balance sheet as cash (or a reduction in debt).

Buy and $14 target retained.

FORECAST
Moelis forecasts a full year FY24 dividend of 0.00 cents and EPS of 24.88 cents.
Moelis forecasts a full year FY25 dividend of 0.00 cents and EPS of 92.42 cents.