Capstone Copper (CS) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $533.3 million and adjusted EBITDA of $179.9 million in Q1 2025, driven by strong sulphide copper production at Mantoverde and Mantos Blancos, with consolidated copper output up 28% year-over-year to 53,796 tonnes.

• Ramp-ups at Mantoverde and Mantos Blancos delivered record sulphide production, with Mantoverde producing up to 22,540 tons and Mantos Blancos sustaining high throughput.

• Completed $600 million senior unsecured notes offering, refinancing higher-cost debt and improving liquidity; included in S&P/ASX 200 Index.

• Net leverage improved to 1.3x net debt/EBITDA, with available liquidity exceeding $1 billion.

• CEO transition announced: John MacKenzie to become Chair, Cashel Meagher to assume CEO role.

Financial highlights

• Q1 2025 revenue reached $533.3 million, with copper sales of 53,134 tonnes at a realized price of $4.36/lb, up 13% year-over-year.

• Adjusted EBITDA more than doubled to $179.9 million year-over-year; adjusted net income attributable to shareholders was $8.1 million, or $0.01 per share.

• C1 cash costs decreased 10% year-over-year to $2.59/lb, with sulphide unit costs at $2.23/lb and cathode at $4.64/lb.

• Operating cash flow before working capital changes was $166.1 million, up from $62.1 million.

• Net debt increased modestly to $788 million due to working capital draw and non-recurring payments, but leverage ratio improved.

Outlook and guidance

• 2025 copper production guidance reiterated at 220,000–255,000 tonnes, with C1 cash costs targeted at $2.20–$2.50/lb.

• Sulphide production expected at 185,000–215,000 tonnes at $1.85–$2.15/lb; cathode production 35,000–40,000 tonnes at $3.95–$4.25/lb.

• Capital expenditures for 2025: $255 million sustaining, $60 million expansionary, $210 million capital stripping, $25 million exploration.

• Mantoverde Optimized Project to proceed post-permit, with financing from internal cash flow; Santo Domingo sanctioning window opens mid-2026, contingent on market and internal criteria.

• Expectation for improved production and lower costs in subsequent quarters as maintenance impacts subside and ramp-ups mature.