Luca Mining Corp press release
Capstone Copper Reports Second Quarter 2025 Results
TSXV - TSX Venture Exchange · Gold · Zinc · Copper · Silver · Lead · Canada
Revenue reaches new all-time high
Adjusted EBITDA sets quarterly record
Capstone Copper Corp. (“Capstone” or the “Company”) (TSX: CS) (ASX: CSC) today reported financial results for the six months and quarter ended June 30, 2025 (“Q2 2025”). Link HERE for Capstone’s Q2 2025 webcast presentation. Unless otherwise stated, results are presented in United States dollars on a 100% basis.
Cashel Meagher, President and CEO of Capstone, commented: "Our second quarter was defined by several key accomplishments, including achieving record copper production, generating significant cash flow, and completing our balance sheet refinancing strategy. Earlier this month we also announced another significant milestone with receipt of the Mantoverde Optimized permit, meaning we are no longer permit constrained on throughput, and we plan to commence this lower risk, capital efficient project imminently. The first half of the year was marked by solid performance, which we expect to further improve in the second half as we track towards our reaffirmed full year guidance. Capstone Copper is extremely well-positioned for the current environment and for the future, with a diverse portfolio of operating assets in the Americas, a robust pipeline of peer leading growth projects, a highly experienced team and a strong financial position."
Q2 2025 OPERATIONAL AND FINANCIAL HIGHLIGHTS
Record consolidated total copper production for Q2 2025 was 57,416 tonnes at C1 cash costs 1 of $2.45/lb. Total Q2 2025 copper sold of 53,977 payable tonnes was approximately 1,800 tonnes below payable production largely driven by timing of sales at Mantos Blancos. Sulphide copper production for Q2 2025 was 47,086 tonnes at C1 cash costs 1 of $2.20/lb compared to 30,374 tonnes at $2.58/lb in Q2 2024, largely driven by contributions from Mantoverde sulphides following the successful ramp-up in 2024. Mantoverde sulphides produced 16,507 tonnes of copper at C1 cash costs 1 of $1.51/lb in Q2 2025. Net income attributable to shareholders of $24.0 million, or $0.03 per share for Q2 2025, compared to net income attributable to shareholders of $29.3 million, or $0.04 per share for Q2 2024. Adjusted net income attributable to shareholders 1 of $27.5 million, or $0.04 per share for Q2 2025, compared to adjusted net income attributable to shareholders 1 of $20.9 million in Q2 2024. Record adjusted EBITDA 1 of $215.6 million for Q2 2025 compared to $123.1 million for Q2 2024, primarily due to increased sulphide copper production. Operating cash flow before changes in working capital of $212.4 million in Q2 2025 compared to $102.9 million in Q2 2024. Net debt 1 decreased to $691.9 million as at June 30, 2025 compared to $788.1 million as at March 31, 2025. Total available liquidity 1 of $1,106.6 million as at June 30, 2025, comprised of $311.6 million of cash and short-term investments, and $795.0 million of undrawn amounts on the corporate revolving credit facility. Completed the balance sheet re-financing with a repayment of the $477 million outstanding balance on the Mantoverde project finance facility, of which $334 million represented Capstone's share. A new term loan was put in place for Mitsubishi Materials Corp.'s $145 million attributable portion that includes a two-year grace period and termed out debt maturities. The Company reiterates the 2025 guidance of 220,000 to 255,000 tonnes of copper production at $2.20 to $2.50 per pound cash costs 1 . Higher production is expected in the second half of 2025, largely driven by mine sequence with Mantoverde moving out of transitional ore. Total 2025 sustaining and expansionary capital expenditure guidance of $315 million, plus an additional $210 million for capitalized stripping and $25 million for exploration, is also reaffirmed. The Company received the DIA environmental permit (“Declaración de Impacto Ambiental”) for its Mantoverde Optimized ("MV Optimized" or "MV-O") project from the Atacama Regional Environmental Assessment Commission.
| 1 These are Non-GAAP performance measures. Refer to the section titled “Non-GAAP and Other Performance Measures”. |
OPERATIONAL OVERVIEW
Refer to Capstone's Q2 2025 MD&A and Financial Statements for detailed operating results.
| | Q2 2025 | Q2 2024 | 2025 YTD | 2024 YTD | | Sulphide business | | | | | | Copper production (tonnes) | | | | | | Mantoverde 2 | 16,507 | 58 | 32,775 | 58 | | Mantos Blancos | 13,945 | 8,170 | 26,217 | 17,333 | | Pinto Valley | 10,125 | 15,994 | 21,011 | 31,666 | | Cozamin | 6,509 | 6,152 | 13,033 | 12,158 | | Total sulphides | 47,086 | 30,374 | 93,036 | 61,215 | | _C1 cash costs __1 __($/pound) produced _ | | | | | | Mantoverde 2 | 1.51 | — | 1.51 | — | | Mantos Blancos | 1.87 | 3.43 | 2.04 | 3.18 | | Pinto Valley | 3.89 | 2.46 | 3.86 | 2.50 | | Cozamin | 1.49 | 1.71 | 1.38 | 1.83 | | Total sulphides | 2.20 | 2.58 | 2.17 | 2.57 | | | | | | | | Cathode business | | | | | | Copper production (tonnes) | | | | | | Mantoverde 2 | 8,479 | 8,663 | 14,751 | 18,139 | | Mantos Blancos | 1,851 | 1,900 | 3,425 | 3,704 | | Total cathodes | 10,330 | 10,563 | 18,176 | 21,843 | | _C1 cash costs __1 __($/pound) produced _ | | | | | | Mantoverde 2 | 3.96 | 3.67 | 4.32 | 3.75 | | Mantos Blancos | 3.64 | 3.15 | 3.79 | 3.32 | | Total cathodes | 3.90 | 3.58 | 4.22 | 3.67 | | | | | | | | Consolidated | | | | | | Copper production (tonnes) | 57,416 | 40,937 | 111,212 | 83,058 | | _C1 cash costs __1 __($/pound) produced _ | 2.45 | 2.80 | 2.52 | 2.84 | | Copper sold (tonnes) | 53,977 | 39,748 | 107,112 | 80,744 | | Realized copper price 1 ($/pound) | 4.39 | 4.53 | 4.38 | 4.18 | | 2 Mantoverde shown on a 100% basis (Capstone Copper ownership 70%). | | | | |
Sulphide Business
Q2 2025 sulphide production of 47,086 tonnes of copper in concentrate was 55% higher than 30,374 tonnes in Q2 2024. The uplift was primarily driven by strong performance from the new sulphide concentrator at Mantoverde, which contributed 16,507 tonnes versus negligible production in the prior year. Mantos Blancos also delivered a notable increase in sulphide output, supported by higher throughput and grades driven by the successful debottlenecking project in 2024 and mine sequence. These gains were partially offset by lower production at Pinto Valley driven by lower mill throughput and grades. Cozamin maintained stable output, with modest year-on-year improvement driven by higher grades aligned with the mine plan.
Q2 2025 C1 cash costs 1 decreased by 12% to $2.45/lb in Q2 2025 from $2.80/lb in Q2 2024, reflecting increased production and lower unit costs at Mantoverde sulphides ($1.51/lb) and Mantos Blancos sulphides ($1.87/lb), where volumes have ramped up significantly. Cozamin further contributed to the reduction ($1.49/lb), where lower unit costs were driven by higher by-product credits and a favourable foreign exchange impact. These gains were partially offset by higher unit costs at Pinto Valley ($3.89/lb), where lower throughput and operational disruptions led to cost inefficiencies. The combined C1 cash costs 1 profile improvement reflects the benefit of scaling up low-cost sulphide operations.
Cathode Business
Q2 2025 cathode production of 10,330 tonnes of copper was 2% lower than 10,563 tonnes in Q2 2024, mainly driven by lower oxide grades at Mantoverde, which more than offset stable performance at Mantos Blancos.
Q2 2025 C1 cash costs 1 for the cathode business increased to $3.90/lb in Q2 2025 from $3.58/lb in Q2 2024. Cathode C1 cash costs 1 were primarily impacted by the combined effects of lower production volumes, along with higher acid prices and consumption. The Company continues to actively manage this business segment through grade optimization and cost hedging strategies to ensure positive margin contribution.
Consolidated Production
Q2 2025 copper production of 57,416 tonnes was 40% higher than Q2 2024 primarily as a result of sulphide production ramping up at Mantoverde and Mantos Blancos.
Q2 2025 C1 cash costs 1 of $2.45/lb were 12% lower than $2.80/lb in Q2 2024 mainly due to higher copper production and lower production costs (-$0.12/lb) particularly at Mantoverde and Mantos Blancos as well as increased by-product credits (-$0.15/lb) driven by higher gold production at Mantoverde and stronger gold and silver prices. Additionally, favourable treatment and refining charges (-$0.04) provided further benefit.
Mantoverde Mine (70% owned)
Q2 2025 copper production of 24,986 thousand tonnes was 187% higher than Q2 2024 mainly due to higher copper in concentrate production of 16,507 tonnes, partially offset by slightly lower cathode production mainly driven by lower heap oxide copper grades as a result of mine sequence (0.30% in Q2 2025 versus 0.39% in Q2 2024).
In Q2 2025, Mantoverde's new sulphide concentrator delivered another strong operational performance, contributing 16,507 tonnes of copper in concentrate. Q2 2025 sulphide plant throughput averaged 32,372 tpd (April - 30,444 tpd, May - 31,861 tpd, June - 34,830 tpd), which exceeded the plant's design capacity. Meanwhile, copper grades and recoveries were impacted by transitional mixed ore with elevated oxide content in April and May. Q2 2025 copper grades averaged 0.72% (April - 0.67%, May - 0.73%, June - 0.76%), while copper recoveries averaged 77.6% (April - 73.6%, May - 72.7%, June - 85.2%).
Q2 2025 combined C1 cash costs 1 were $2.35/lb, 36% lower than $3.65/lb in Q2 2024 mainly related to higher production driven by the new concentrate plant (-$1.34/lb). Q2 2025 cathode C1 cash costs 1 were $3.96/lb, 8% higher compared to Q2 2024, mainly due to higher acid prices ($188/t in Q2 2025 versus $153/t in Q2 2024) and consumption ($0.43/lb), partially offset by lower oxide mine movement (-$0.17/lb).
Mantos Blancos Mine (100% owned)
Q2 2025 production was 15,796 tonnes, composed of a record 13,945 tonnes of copper in concentrate from sulphide operations and 1,851 tonnes of cathode from oxide operations, which was 57% higher than Q2 2024. The increase was attributable to higher sulphide mill throughput (quarterly record 21,295 tpd in Q2 2025 versus 16,219 tpd in Q2 2024) and higher sulphides feed grades as a result of mine sequence (0.89% in Q2 2025 versus 0.76% in Q2 2024). Since achieving design sulphide mill throughput capacity in November 2024, the plant has met or exceeded average design capacity in seven of the last eight months.
Combined Q2 2025 C1 cash costs 1 of $2.09/lb ($1.87/lb sulphides and $3.64/lb cathodes) were 35% lower compared to combined C1 cash costs 1 of $3.22/lb in Q2 2024, mainly due to higher production in line with plan (-$1.22/lb), lower diesel prices ($0.62/l in Q2 2025 versus $0.77/l in Q2 2024) (-$0.06/lb) and lower treatment and selling costs (-$0.11/lb), partially offset by higher acid, diesel, explosive and energy consumption ($0.11/lb) due to higher material moved driven by higher mill throughput.
Pinto Valley Mine (100% owned)
Q2 2025 copper production of 10,125 thousand tonnes was 37% lower than in Q2 2024 due to mine sequence resulting in lower grades (Q2 2025 – 0.31% versus Q2 2024 - 0.36%) and lower mill throughput during the quarter (Q2 2025 - 38,268 tpd versus Q2 2024 - 55,420 tpd). Mill throughput in Q2 2025 was impacted by unplanned downtime driven by water constraints due to the drought conditions in central Arizona, as well as mechanical and electrical issues. The water constraints resulted in Pinto Valley operating at two-thirds availability with four out of six mills online since May. Mitigation measures are in progress and process availability is expected to increase to five out of six mills online in August, and all mills operational by the end of Q3.
C1 cash costs 1 of $3.89/lb in Q2 2025 were 58% higher than Q2 2024 of $2.46/lb primarily due to lower production volume ($1.53/lb) and higher contractor spend ($0.35/lb), partially offset by lower treatment and selling costs (-$0.28/lb).
Cozamin Mine (100% owned)
Q2 2025 copper production of 6,509 thousand tonnes was 6% higher than the same period prior year, mainly on higher grades (2.01% in Q2 2025 versus 1.97% in Q2 2024) driven by mine sequence. Mill throughput and recoveries were consistent quarter over quarter.
Q2 2025 C1 cash costs 1 were $1.49/lb, 13% lower than $1.71/lb in the same period last year, mainly due to higher production, higher silver by-product volume and price (-$0.12/lb), as well as lower operating costs than the previous year (-$0.07/lb) impacted by a weakening of the Mexican peso relative to the US dollar.
2025 Guidance
The Company reiterates its 2025 consolidated production, C1 cash costs 1 , capital expenditure, capitalized stripping and exploration expenditure guidance as follows: 220-255kt consolidated production of copper, $2.20-$2.50 C1 cash costs 1 per payable pound of copper, $315 million sustaining and expansionary capital expenditure, $210 million capitalized stripping and $25 million exploration expenditure.
With respect to the asset level copper production and C1 cash cost 1 guidance ranges provided in January 2025, the Company notes the following: Mantos Blancos and Cozamin are trending towards the upper end of production and the lower end of costs, Mantoverde is trending towards the mid point of both production and costs, and Pinto Valley is trending towards the lower end on production and upper end of costs. This is a result of a combination of stronger sulphide throughput at Mantoverde and Mantos Blancos, as well as higher-than-expected grades at Cozamin, offset by lower-than-expected throughput at Pinto Valley due to unplanned downtime and water constraints, as well as lower recoveries at Mantoverde based on mining transitional mixed ore in April and May.
KEY UPDATES
Capstone Copper has expansion optionality across its portfolio with a combination of attractive brownfield and greenfield opportunities in top-tier mining jurisdictions in the Americas. Capstone Copper is advancing these growth opportunities, which are at various stages. A potential sanctioning decision for each project is subject to a variety of factors, including macroeconomic conditions.
MV Optimized Brownfield Expansion Project
Mantoverde Optimized (“MV Optimized” or “MV-O”) is a capital-efficient brownfield expansion of Mantoverde's sulphide concentrator, increasing throughput from 32,000 to 45,000 ore tpd and extending the mine life from 19 to 25 years.
During Q2 2025 approximately $20 million in long lead items for MV-O were approved. In July 2025, the Company received the DIA environmental permit (“Declaración de Impacto Ambiental”) for the Mantoverde Optimized project from the Atacama Regional Environmental Assessment Commission. The issuance of this permit represents a significant milestone for the advancement of the project, as it was the only major permit required for the development and operation of MV-O.
The Company plans to provide further updates with respect to its 2025 expansionary capital guidance and MV-O project timing upon formal project sanctioning, subject to all Board approvals in Q3 2025.
Mantoverde Phase II
The Company is in the early stages of evaluating the next major phase of growth for Mantoverde, which could include the addition of an entire second processing line. There are 0.2 billion tonnes of Measured & Indicated Mineral Resources and 0.6 billion tonnes of Inferred sulphide Mineral Resources in addition to the reserves that are currently being considered as part of MV Optimized. In addition, exploration targets include the northern portion of the current Mantoverde pit and the northern extension (~10km long) of the projection of the prospective Atacama fault system, which are planned to assist in determining the location of key infrastructure and the economic viability of the project.
Santo Domingo Project
Capstone Copper announced the results of an updated Feasibility Study ("FS") for its 100%-owned Santo Domingo copper-iron-gold project in Region III Chile, 35km northeast of Mantoverde on July 31, 2024. The updated FS, completed by Ausenco, outlines the next phase of transformational growth for the Company in the world-class Mantoverde-Santo Domingo ("MV-SD") district.
The FS for Santo Domingo outlines a robust copper-iron-gold project with an after-tax NPV (8%) of $1.7 billion and an after-tax internal rate of return of 24.1% based on long-term copper, 65% iron ore, and gold price assumptions of $4.10/lb, $110/t, and $1,800/oz, respectively. Total initial capital cost of $2.3 billion drives a capital intensity of approximately $21,900 per tonne of annual copper equivalent production over the life of mine. Over the first seven years of the mine plan, production is expected to average 106,000 tonnes of copper and 3.7 million tonnes of iron ore magnetite concentrate at first quartile cash costs of $0.28 per payable pound of copper produced.
The FS updated the level of engineering to Association for the Advancement of Cost Engineering ("AACE") Class 3. During 2025, detailed engineering efforts are underway to increase the precision of capital estimates to AACE Class 2.
The Company is at an advanced stage in its Santo Domingo partnership process and we expect to announce a partner during Q3. In parallel, we are advancing opportunities to incorporate the recently acquired Sierra Norte project, along with Santo Domingo’s copper oxide and cobalt material into the mine plan, while also advancing financing discussions. A potential project sanctioning decision is not anticipated prior to mid-2026.
Sierra Norte is located approximately 15 kilometers northwest of the Santo Domingo Project and represents an opportunity to potentially be a future sulphide feed source for Santo Domingo, extending the higher grade copper sulphide life. Potential oxide material at Sierra Norte represents an opportunity to be a future oxide feed for Mantoverde's underutilized SX-EW plant.
Mantoverde - Santo Domingo Pyrite Augmentation & Cobalt
A district cobalt plant for the MV-SD district is designed to unlock cobalt production while reducing sulphuric acid consumption and increasing heap leach copper production. The cobalt recovery process comprises a pyrite flotation step to recover cobaltiferous pyrite from the tailings streams at Mantoverde and Santo Domingo and redirect it to the dynamic heap leach pads, which will be upgraded to a bioleach configuration through the addition of an aeration system as part of MV Optimized. The pyrite oxidizes in the leach pads and the solubilized cobalt is recovered via an ion exchange plant treating a bleed stream from the copper solvent extraction plant. The approach has been successfully demonstrated at the bench and pilot scales. An initial cobalt assay of expected quality has been sent to potential customers for feedback, which has been overall positive.
As currently envisioned, a smaller capacity plant will initially treat cobalt by-product streams from Mantoverde only, producing up to 1,500 tonnes per annum of cobalt, and following sanctioning of the Santo Domingo project, the facility will be expanded to accommodate by-product streams from Santo Domingo. An initial study focused on Mantoverde's pyrite augmentation and cobalt opportunity is expected in 2025, followed by a Santo Domingo study in 2026, for a combined MV-SD target of 4,500 to 6,000 tonnes per annum of cobalt production.
Mantos Blancos Phase II
The Company is currently evaluating the next phase of growth for Mantos Blancos, which is analyzing the potential to increase the concentrator plant throughput to at least 27,000 tpd and increase cathode production from the underutilized SX-EW plant. The sulphide concentrator plant expansion is expected to utilize existing and unused or underutilized process equipment, plus additional equipment for concentrate filtration, thickening and filtering of tailings. During Q2 2025, individual peak daily sulphide mill throughput totaled 25,980 tpd as the plant was pushed to identify bottlenecks. The increase in cathode production is being evaluated based on an opportunity to re-leach spent ore from historical leaching and flotation operations. The increase in cathode production would utilize existing SX-EW plant capacity, with the addition of a dynamic leach pad, agglomeration and stacking infrastructure. The Mantos Blancos Phase II study is expected in 2026.