Luca Mining Corp press release

Capstone Copper Reports Record Fourth Quarter 2025 Results

2026-03-02

TSXV - TSX Venture Exchange · Gold · Zinc · Copper · Silver · Lead · Canada · Corporate Finance

Capstone Copper Reports Record Fourth Quarter 2025 Results

Revenue reaches new all-time high

Record low C1 cash costs 1

Adjusted EBITDA 1 sets quarterly record, up last five quarters

Capstone Copper Corp. (“Capstone” or the “Company”) (TSX: CS) (ASX: CSC) today reported financial results for the three months and year ended December 31, 2025 (“Q4 2025”). Link H ERE for Capstone’s Q4 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: "2025 was an inflection point for Capstone, representing tangible delivery on peer leading growth with our copper production up 22%. Operationally, we met our consolidated production and cost guidance, driving record EBITDA generation. As we began to realize the benefits from completed projects, we also advanced our future phases of growth by sanctioning and beginning construction on Mantoverde Optimized, forming a partnership for our Santo Domingo Project, and initiating a new exploration program in the Mantoverde-Santo Domingo district.

"In 2026, we are focused on delivering dependable operational results as we continue to advance our high-return organic growth opportunities. This includes executing on the Mantoverde Optimized Project construction, tie-in and ramp-up, advancing Santo Domingo towards a sanctioning decision, and progressing our district growth strategy through exploration."

Q4 2025 OPERATIONAL AND FINANCIAL HIGHLIGHTS

Record consolidated total contained copper production for Q4 2025 was 58,273 tonnes at C1 cash costs 1 of $2.31/lb. Total Q4 2025 copper sold of 54,038 payable tonnes was approximately 2,600 tonnes below payable production largely driven by timing of sales at Mantoverde.

Achieved 2025 production and cost guidance, with record consolidated copper production for the full year ended December 31, 2025 of 224,764 tonnes at C1 cash costs 1 of $2.44/lb.

Net income attributable to shareholders of $50.6 million, or $0.07 per share for Q4 2025 compared to net income attributable to shareholders of $45.9 million, or $0.06 per share for Q4 2024 primarily due to higher volumes of copper sold at a higher realized price. Net income attributable to shareholders for the full year 2025 was $315.9 million or $0.41 per share compared to $82.9 million or $0.11 per share for full year 2024.

Adjusted net income attributable to shareholders 1 of $78.7 million, or $0.10 per share for Q4 2025, compared to adjusted net income attributable to shareholders 1 of $29.6 million in Q4 2024 primarily due to higher volumes of copper sold at a higher realized price. Adjusted net income attributable to shareholders 1 for the full year 2025 was $163.6 million or $0.21 per share.

Record adjusted EBITDA 1 of $308.0 million for Q4 2025 compared to $171.9 million for Q4 2024, primarily due to increased sulphide copper production and lower C1 cash costs 1 , in addition to higher copper prices. Adjusted EBITDA 1 for the full year 2025 was $952.7 million compared to $496.1 million for full year 2024 .

Operating cash flow before changes in working capital of $287.3 million in Q4 2025 compared to $132.8 million in Q4 2024. Operating cash flows before changes in working capital for the full year 2025 was $891.3 million.

Net debt 1 of $780.1 million as at December 31, 2025, increased from $725.8 million as at September 30, 2025, as result of a negative working capital adjustment of $108.9 million mainly due to the timing of receivable collections, with sales activity weighted towards the latter part of the quarter. Total available liquidity 1 of $1,015.2 million as at December 31, 2025, comprised of $304.2 million of cash and cash equivalents, and $711.0 million of undrawn amounts on the $1 billion corporate revolving credit facility.

Released 2026 production guidance of 200,000 to 230,000 tonnes of copper at C1 cash costs 1 of $2.45 to $2.75 per payable pound of copper, reflecting largely stable production compared to the prior year with additional growth expected in 2027 tied to Mantoverde Optimized, a return to higher copper grades at Mantos Blancos, and normalized throughput at Mantoverde and Pinto Valley.

On February 5, the Company announced signing of a new three-year collective bargaining agreement with Mantoverde's Union #2, ending the strike action which commenced on January 2, 2026. Mantoverde has successfully negotiated three-year agreements with all four of its unions.

OPERATIONAL OVERVIEW

Refer to Capstone's Q4 2025 MD&A and Financial Statements for detailed operating results.

Q4 2025

Q4 2024

2025

2024

Sulphide business

Copper production (tonnes)

Mantoverde 2

14,314

13,580

62,308

21,777

Mantos Blancos

14,985

12,165

54,793

37,744

Pinto Valley

11,423

11,626

42,382

57,272

Cozamin

6,170

6,724

25,348

24,907

Total sulphides

46,891

44,095

184,830

141,700

C1 cash costs 1 ($/pound) produced

Mantoverde 2

1.09

1.60

1.40

1.88

Mantos Blancos

1.70

2.21

1.92

2.85

Pinto Valley

3.53

3.46

3.72

2.80

Cozamin

0.98

1.62

1.32

1.78

Total sulphides

1.80

2.18

2.00

2.42

Cathode business

Copper production (tonnes)

Mantoverde 2

9,506

8,449

32,807

35,930

Mantos Blancos

1,876

1,398

7,126

6,830

Total cathodes

11,382

9,847

39,934

42,760

C1 cash costs 1 ($/pound) produced

Mantoverde 2

4.12

3.62

4.09

3.53

Mantos Blancos

3.83

3.70

3.94

3.41

Total cathodes

4.07

3.63

4.07

3.51

Consolidated

Copper production (tonnes)

58,273

53,942

224,764

184,460

C1 cash costs 1 ($/pound) produced

2.31

2.52

2.44

2.76

Copper sold (tonnes)

54,038

50,014

217,517

175,201

Realized copper price 1 ($/pound)

5.36

4.04

4.66

4.16

Sulphide Business

Q4 2025 sulphide production of 46,891 tonnes of copper in concentrate was 6% higher than 44,095 tonnes in Q4 2024. The increase compared to Q4 2024 was primarily driven by Mantos Blancos, which achieved record quarterly copper production supported by increased mill throughput and strong recoveries following the successful completion of the 2024 debottlenecking project and mine sequencing. Sulphide production at Mantoverde of 14,314 tonnes improved by 5% compared to Q4 2024, but was impacted by downtime due to repairs conducted on the mill motors throughout October and November. These improvements in Chile were partially offset by lower production at Pinto Valley and Cozamin, resulting primarily from lower mill throughput and recoveries.

2025 sulphide production increased by 30% to 184,830 tonnes from 141,700 tonnes in the prior year period. The improvement was primarily driven by Mantoverde following ramp-up of the Mantoverde Development Project and Mantos Blancos following the completion of the debottlenecking project. Cozamin also achieved a year-over year increase, supported by strong mill performance and a favourable grade profile. These gains were partially offset by a decrease in production at Pinto Valley, reflecting lower mill throughput, recoveries and ore grades.

Q4 2025 sulphide C1 cash costs 1 decreased by 17% to $1.80/lb from $2.18/lb in Q4 2024, primarily due to higher sulphide production volumes, lower unit operating costs, and higher gold and silver prices resulting in stronger by-product credits. The improvement was driven mainly by Mantoverde sulphides ($1.09/lb) and Mantos Blancos sulphides ($1.70/lb), reflecting increased production in Q4 2024, with additional contributions from Cozamin ($0.98/lb), supported by stronger by-product credits and favourable foreign exchange movements. These positive impacts were partially offset by higher unit costs at Pinto Valley ($3.53/lb) due to lower throughput resulting from mill disruptions.

2025 sulphide C1 cash costs 1 of $2.00/lb were 17% lower than $2.42/lb in 2024 primarily reflecting increased contributions from the lower-cost Mantoverde sulphides, as well as reduced unit costs at Mantos Blancos and Cozamin, partially offset by higher unit costs at Pinto Valley.

Cathode Business

Q4 2025 cathode production of 11,382 tonnes of copper was 16% higher than 9,847 tonnes in Q4 2024, primarily attributed to higher oxide grades and recoveries at Mantoverde and increased throughput at Mantos Blancos.

2025 cathode production decreased by 7% to 39,934 tonnes from 42,760 tonnes, reflecting lower heap leach grades and throughput at Mantoverde, partially offset by increased throughput at Mantos Blancos resulting from changes in the mine sequence.

Q4 2025 C1 cash costs 1 for the cathode business increased to $4.07/lb in Q4 2025 from $3.63/lb in Q4 2024 and 2025 cathode C1 cash costs 1 of $4.07/lb increased from $3.51/lb in 2024. The increase in cathode C1 cash costs 1 was primarily driven by lower production volumes resulting from lower heap leach grades, as well as higher acid prices and consumption. The Company continues to actively manage this business segment through ongoing grade optimization and cost hedging strategies to maintain positive margin contribution.

Consolidated Production

Q4 2025 copper production of 58,273 tonnes was 8% higher than 53,942 tonnes in Q4 2024, primarily as a result of sulphide production ramping up at Mantoverde and Mantos Blancos.

2025 consolidated production of 224,764 tonnes of copper was 22% higher than 184,460 tonnes in 2024, mainly driven by increased copper production from the sulphide business with production ramping up at Mantoverde and Mantos Blancos.

Q4 2025 C1 cash costs 1 of $2.31/lb were 8% lower than $2.52/lb in Q4 2024, primarily due to higher by-product credits (-$0.22/lb) driven by increased gold production at Mantoverde and stronger gold and silver prices, as well as lower treatment and refining charges and favourable foreign exchange rates (-$0.06/lb).

2025 consolidated C1 cash costs 1 of $2.44/lb were 12% lower than $2.76/lb in 2024 due to higher copper production and lower production costs (-$0.04/lb), particularly at Mantoverde and Mantos Blancos. In addition, increased by-product credits (-$0.20/lb) contributed to the improvement largely due to higher gold production at Mantoverde and stronger gold and silver prices, along with favourable treatment and refining charges and foreign exchange rates (-$0.08/lb).

Mantoverde Mine (70% owned)

Q4 2025 copper production of 23,819 thousand tonnes was 8% higher than Q4 2024 due to higher copper in concentrate production of 14,314 tonnes driven primarily by higher recoveries and higher cathode production from higher heap oxide copper grades as a result of mine sequence (0.34% in Q4 2025 versus 0.31% in Q4 2024).

In Q4 2025, Mantoverde’s sulphide concentrator delivered 14,314 tonnes of copper in concentrate. Q4 2025 sulphide plant throughput averaged 23,425 tpd (October – 15,228 tpd, November – 18,115 tpd, December – 36,761 tpd), impacted by approximately 16 days of interrupted production due to repairs conducted on the mill motors throughout October and November. The repairs to the motors, which included upgrading components and installing additional protections, enabled the sulphide plant to achieve record average throughput in December. Mill recoveries averaged 83.7% in Q4 2025 (October – 84.1%, November – 82.1%, December – 84.3%), which increased from 74.4% in Q4 2024 driven by lower contributions from transitional mixed ore. Copper grades from sulphide operations were 0.79% in Q4 2025 (October – 0.74%, November – 0.83%, December – 0.80%).

2025 copper production of 95,115 tonnes was 65% higher than 2024 due to increased copper in concentrate production of 62,308 tonnes, partially offset by lower cathode production mainly driven by lower oxide copper grades as a result of mine sequence (0.32% in 2025 versus 0.35% in 2024).

Q4 2025 combined C1 cash costs 1 were $2.32 /lb, 3% lower than $2.40/lb in Q4 2024, mainly related to higher production driven by the new concentrate plant (-$0.19/lb) and higher gold revenues (-$0.27/lb), partially offset by higher acid prices ($233/t in Q4 2025 versus $164/t in Q4 2024) and consumption ($0.31/lb), and higher power, diesel and explosive consumption ($0.05/lb). Q4 2025 cathode C1 cash costs 1 were $4.12/lb, 14% higher compared to Q4 2024, mainly due to higher acid prices ($233/t in Q4 2025 versus $164/t in Q4 2024) ($0.52/lb) and consumption ($0.27/lb) partially offset by higher cathode production (-$0.40/lb).

2025 combined C1 cash costs 1 were $2.35/lb, 19% lower than $2.90/lb in 2024, mainly related to higher copper and gold production driven by the new concentrate plant (-$0.97/lb), partially offset by higher acid prices ($203/t in 2025 versus $156/t in 2024) and consumption ($0.17/lb) and higher power, diesel and explosive consumption ($0.16/lb). 2025 cathode C1 cash costs 1 were $4.09/lb, 16% higher compared to 2024, mainly due to lower cathode production driven by lower heap grade ($0.29/lb) and higher acid prices and consumption ($0.28/lb).

Mantos Blancos Mine (100% owned)

Q4 2025 production was 16,861 tonnes, composed of 14,985 tonnes of copper in concentrate from sulphide operations and 1,876 tonnes of cathode from oxide operations, was 24% higher than Q4 2024. The increase was attributable to sulphide mill throughput exceeding design levels (21,391 tpd in Q4 2025 versus 19,579 tpd in Q4 2024), and higher sulphides feed grades as a result of mine sequence (0.94% in Q4 2025 versus 0.84% in Q4 2024). The strip ratio was elevated during Q4 2025,as planned mineral movements to Dump Phase 1 were deferred to the first quarter of 2026, resulting in a higher proportion of waste tonnes mined relative to ore.

2025 copper production of 61,919 tonnes, composed of 54,793 tonnes of copper in concentrate from sulphide operations and 7,126 tonnes of cathodes, was 39% higher than 2024, due to higher sulphide mill throughput (19,981 tpd in 2025 versus 16,027 tpd in 2024) following the successful debottlenecking project in late 2024 and higher sulphides feed grades as a result of mine sequence (0.93% in 2025 versus 0.81% in 2024).

Combined Q4 2025 C1 cash costs 1 of $1.94/lb ($1.70/lb sulphides and $3.83/lb cathodes) were 17% lower compared to combined C1 cash costs 1 of $2.35/lb in Q4 2024, mainly due to higher production (-$0.48/lb) and lower treatment and selling costs (-$0.05/lb), partially offset by higher acid, diesel, explosive and energy consumption ($0.10/lb) due to higher material moved and mill throughput.

Combined 2025 C1 cash costs 1 of $2.16/lb ($1.92/lb sulphides and $3.94/lb cathodes) were 28% lower compared to $3.01/lb in 2024 mainly due to higher production (-$0.84/lb), lower treatment cost (-$0.13/lb), and lower diesel prices ($0.63/l in 2025 versus $0.74/l in 2024) (-$0.05/lb), partially offset by higher acid, diesel, explosive and energy consumption and acid prices ($0.16/lb) due to higher material moved and mill throughput.

Pinto Valley Mine (100% owned)

Q4 2025 copper production of 11,423 thousand tonnes was 2% lower than in Q4 2024 due to lower cathode production. Copper in concentrate production increased in Q4 2025 compared to Q4 2024 driven by higher grades (Q4 2025 – 0.33% versus Q4 2024 – 0.30%), partially offset by lower mill throughput (Q4 2025 - 42,029 tpd versus Q4 2024 - 45,148 tpd). Mill throughput in Q4 2025 was impacted by water constraints due to the drought conditions in central Arizona, which restricted throughput to two-thirds availability with four out of six mills online for October. Pinto Valley returned to six mills online for November and December, enabling it to achieve its strongest quarter of production during 2025 in Q4.

2025 copper production was 26% lower than 2024 on lower mill throughput (41,187 tpd in 2025 versus 49,461 tpd in 2024) due primarily to water constraint measures in addition to unscheduled downtime, lower feed grade tied to mine plan sequence (0.31% in 2025 versus 0.34% in 2024) and lower recoveries (86.2% 2025 versus 87.4% 2024) due to higher acid soluble ratio and lower grade ore. In line with sustaining capital guidance, the Company assembled all twelve new haul trucks over the course of 2025, to complement the new shovel received at the end of 2024. The new trucks are being used to drive incremental material movement in the mine, which improved by 33% in 2025 compared to 2024.

Q4 2025 C1 cash costs 1 of $3.53/lb were 2% higher than $3.46/lb in the same period last year, primarily due to higher contractor costs ($0.30/lb) and higher salaries and wages ($0.08/lb), partially offset by lower treatment and selling costs (-$0.11/lb) and lower spend on mechanical and electrical parts (-$0.20/lb).

2025 C1 cash costs 1 of $3.72/lb were 33% higher compared to the same period last year of $2.80/lb primarily due to lower production volume ($0.89/lb) and higher contractor costs ($0.30/lb), partially offset by lower treatment and selling costs (-$0.20/lb) and lower spend on mechanical and electrical parts (-$0.06/lb).

Cozamin Mine (100% owned)

Q4 2025 copper production of 6,170 thousand tonnes, was 8% lower than Q4 2024, primarily due to lower recoveries (94.6% in Q4 2025 versus 96.9% in Q4 2024) resulting from mine sequence. Mill throughput decreased by 6% (3,507 tpd in Q4 2025 versus 3,716 tpd in Q4 2024) driven by mill constraints related to mechanical issues.

2025 YTD copper production of 25,348 thousand tonnes was 2% higher than 2024 YTD primarily due to higher grades (2.00% in 2025 YTD versus 1.96% in 2024 YTD), consistent with the mine plan, as well as higher mill throughput (3,615 tpd in 2025 YTD versus 3,581 tpd in 2024 YTD).

Q4 2025 C1 cash costs 1 were $0.98/lb, 40% lower than $1.62/lb in the same period last year, primarily due to increased silver by-product prices (-$0.76/lb), lower treatment charges (-$0.15/lb), partially offset by higher operating costs ($0.27/lb), mainly related to consulting expenses for an operational continuous improvement initiative.

2025 C1 cash costs 1 were $1.32/lb, 26% lower than $1.78/lb the same period last year primarily due to higher copper production, lower treatment charges (-$0.16/lb), and increased by-product credits from higher silver prices (-$0.30/lb). Operating cash costs were partially impacted by consulting expenses for the continuous improvement project.

2026 Guidance

Production, cash cost, capital expenditures and exploration expenditure guidance for 2026 remains unchanged from the recently released guidance as outlined in the news release "Capstone Copper Announces 2026 Guidance" dated February 17, 2026.

2026 forecast production volumes of 200,000 to 230,000 tonnes of copper reflects largely stable production compared to 2025. Production in 2027 is forecasted to increase driven by Mantoverde Optimized, an increase in copper grades at Mantos Blancos, and the normalization of throughput levels at Mantoverde and Pinto Valley with the absence of prolonged shutdowns. 2026 C1 cash cost 1 guidance of $2.45 to $2.75 per payable pound of copper is expected to increase compared to 2025 primarily driven by the impact of lower-grade zones due to mine sequence at Mantos Blancos and Pinto Valley, as well as modest inflation.

In 2026, the Company plans to spend a total of $495 million in sustaining and expansionary capital expenditures at its operating mines and the Santo Domingo Project. This is broken down into $270 million on sustaining capital and $225 million on expansionary capital. In addition, the Company plans to spend a total of $225 million in capitalized stripping at its three open pit mines.

The Company plans to spend $70 million in brownfield and greenfield exploration activities in 2026 (~10% expensed vs ~90% capitalized), primarily focused on advancing drilling in the highly prospective Mantoverde-Santo Domingo district. At Mantoverde, this includes progressing the exploration program which commenced in late 2024, with a focus on improving grades, adding mineralization and testing high-priority targets along the northern corridor. At Santo Domingo and the near-by Sierra Norte deposit, exploration will focus on advancing upside opportunities for incremental copper production in the region. Expansionary exploration campaigns at Mantos Blancos and Cozamin will also continue in pursuit of new resources. Infill drilling will be conducted at Mantoverde, Mantos Blancos and Pinto Valley to improve resource categorization in support of future mine planning.