Luca Mining Corp press release

Capstone Copper Reports First Quarter 2026 Results

2026-04-29

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

Adjusted EBITDA 1 reaches new highs, up last six quarters

Record adjusted earnings per share 1

Capstone Copper Corp. (“Capstone” or the “Company”) (TSX: CS) (ASX: CSC) today reported financial results for the three months ended March 31, 2026 (“Q1 2026”). Link H ERE for Capstone’s Q1 2026 webcast presentation. Unless otherwise stated, results are presented in United States dollars on a 100% basis.

Cashel Meagher, President and CEO of Capstone, commented: "Q1 marked our sixth consecutive quarter of record EBITDA generation driven by solid operations and all-time high copper prices. For the remainder of 2026, we are focused on operational execution and continuing to advance our high-return organic growth opportunities, including executing the Mantoverde Optimized Project, advancing Santo Domingo to a sanctioning decision, and progressing our exploration strategy centered around district-scale growth. Despite recent geopolitical volatility, copper prices remain strong and fundamentals support continued momentum, reinforcing our ability to deliver significant value through our peer-leading growth pipeline."

Q1 2026 OPERATIONAL AND FINANCIAL HIGHLIGHTS

Consolidated total contained copper production for Q1 2026 was 47,960 tonnes at C1 cash costs 1 of $2.66/lb , which included sulphide copper production of 40,875 tonnes at C1 cash costs 1 of $2.18/lb. Q1 2025 consolidated total copper production was 53,796 tonnes at C1 cash costs 1 of $2.59/lb, which included sulphide copper production of 45,950 tonnes at C1 cash costs 1 of $2.23/lb. Q1 2026 production included the impact of the 35-day strike action at Mantoverde which was incorporated into our annual guidance.

Net income attributable to shareholders of $102.5 million, or $0.13 per share for Q1 2026, compared to net loss attributable to shareholders of $6.8 million, or $(0.01) per share for Q1 2025, driven by increased earnings from mining operations which benefited from a higher realized copper price.

Record adjusted net income attributable to shareholders 1 of $94.8 million, or $0.12 per share for Q1 2026, compared to adjusted net income attributable to shareholders 1 of $8.1 million in Q1 2025 driven by increased earnings from mining operations which benefited from a higher realized copper price.

Record adjusted EBITDA 1 of $329.1 million for Q1 2026 compared to $179.9 million for Q1 2025, primarily due to higher realized copper prices and supported by stronger gold and silver prices. This marks the sixth straight quarter of record adjusted EBITDA.

Operating cash flow before changes in working capital of $217.9 million in Q1 2026 compared to $166.1 million in Q1 2025.

In March 2026, the Company repaid the $30 million early deposit outstanding under its Gold Precious Metals Purchase Agreement (the "Gold PMPA") with Wheaton, eliminating the associated early deposit delay payments and liability, and making the full $290 million commitment under the Gold PMPA available to be delivered by Wheaton to fund construction at the Santo Domingo development project. The impact of the repayment is included in Q1 2026 operating cash flow and the value of the eliminated early deposit liability was $22.0 million on settlement.

Net debt 1 of $737.5 million as at March 31, 2026, decreased from $780.1 million as at December 31, 2025, as result of strong operating cash flow driven by higher realized copper prices. Total available liquidity 1 of $1,046.3 million as at March 31, 2026, composed of $394.1 million of cash and cash equivalents, and $652.2 million of undrawn amounts on the $1 billion corporate revolving credit facility.

2026 production guidance of 200,000 to 230,000 tonnes of copper and C1 cash costs 1 guidance of $2.45 to $2.75 per payable pound of copper is unchanged. 2026 capital expenditure, capitalized stripping, and exploration expenditure guidance is also unchanged. We continue to monitor and manage the impacts stemming from the conflict in the Middle East. To date we have not experienced any inventory or operational impacts, however cost pressures, notably from higher diesel and sulphuric acid prices, represent a headwind. For more details see section 2026 Outlook.

The Company's MV Optimized Project progressed according to plan during Q1 2026 and the capital cost estimate of $176 million is unchanged. MV Optimized is a capital-efficient brownfield expansion project providing incremental copper and gold production of approximately 20,000 tonnes and 6,000 ounces of gold per annum, respectively.

OPERATIONAL OVERVIEW

Refer to Capstone's Q1 2026 MD&A and Financial Statements for detailed operating results.

| | | Q1 2026 | | Q1 2025 | | Sulphide business | | | | | | Copper production (tonnes) | | | | | | Mantoverde 2 | | 13,733 | | 16,268 | | Mantos Blancos | | 10,501 | | 12,272 | | Pinto Valley | | 10,711 | | 10,886 | | Cozamin | | 5,930 | | 6,524 | | Total sulphides | | 40,875 | | 45,950 | | _C1 cash costs __1 __($/pound) produced _ | | | | | | Mantoverde 2 | | 1.33 | | 1.53 | | Mantos Blancos | | 2.79 | | 2.23 | | Pinto Valley | | 3.46 | | 3.84 | | Cozamin | | 0.71 | | 1.28 | | Total sulphides | | 2.18 | | 2.23 | | | | | | | | Cathode business | | | | | | Copper production (tonnes) | | | | | | Mantoverde 2 | | 5,285 | | 6,272 | | Mantos Blancos | | 1,800 | | 1,574 | | Total cathodes | | 7,085 | | 7,846 | | _C1 cash costs __1 __($/pound) produced _ | | | | | | Mantoverde 2 | | 5.77 | | 4.81 | | Mantos Blancos | | 4.28 | | 3.96 | | Total cathodes | | 5.39 | | 4.64 | | | | | | | | Consolidated | | | | | | Copper production (tonnes) | | 47,960 | | 53,796 | | _C1 cash costs __1 __($/pound) produced _ | | 2.66 | | 2.59 | | Copper sold (tonnes) | | 46,576 | | 53,134 | | Realized copper price 1 ($/pound) | | 5.92 | | 4.36 |

Sulphide Business

Q1 2026 sulphide production of 40,875 tonnes of copper in concentrate was 11% lower than 45,950 tonnes in Q1 2025. The decrease was primarily driven by Mantoverde, where a 35-day strike action reduced operating time, resulting in lower mill throughput and inability to access higher grade sulphide copper ore. At Mantos Blancos, sulphide production of 10,501 tonnes was 14% lower than in Q1 2025 due to lower sulphide grades in line with mine sequence expectations. Pinto Valley experienced mill interruptions and unplanned maintenance resulting in reduced mill throughput, while Cozamin also reported lower sulphide production due to lower grades in line with mine sequence expectations.

Q1 2026 sulphide C1 cash costs 1 of $2.18/lb were 2% lower than $2.23/lb in Q1 2025, primarily driven by lower unit costs at Mantoverde and Cozamin due to higher by-product credits from stronger gold and silver prices, along with improved unit production costs at Pinto Valley. These impacts were partially offset by higher unit costs at Mantos Blancos resulting from lower production tied to grade and higher mine expenses.

Cathode Business

Q1 2026 cathode production decreased by 10% to 7,085 tonnes from 7,846 tonnes in Q1 2025. The decline was primarily driven by lower heap leach grades and decreased heap and dump throughput at Mantoverde as a result of the strike action, partially offset by higher cathode production at Mantos Blancos, supported by improved dump grades at Mantos Blancos in line with the mine sequence.

Q1 2026 C1 cash costs 1 for the cathode business increased to $5.39/lb from $4.64/lb in Q1 2025. The increase was primarily driven by lower production volumes at Mantoverde, resulting from lower heap and dump throughput, as well as higher acid prices ($196/t in Q1 2026 vs $176/t in Q1 2025). The Company continues to actively manage this business segment through ongoing grade and recovery optimization, combined with fixed-price acid supply contracts and copper hedging that provide input cost visibility and support margin stability.

Consolidated Production

Q1 2026 consolidated production of 47,960 tonnes of copper was 11% lower than 53,796 tonnes in Q1 2025. The decline was primarily attributable to lower production from sulphide operations as mentioned above.

Q1 2026 consolidated C1 cash costs1 of $2.66/lb were 3% higher than $2.59/lb in Q1 2025, primarily driven by lower copper production volumes, which increased unit production costs (+$0.31/lb), partially offset by higher by-product credits (-$0.25/lb), reflecting stronger gold and silver prices, particularly at Mantoverde and Cozamin.

Mantoverde Mine (70% owned)

Q1 2026 copper production of 19,018 tonnes was 16% lower than in Q1 2025, driven by lower copper concentrate and cathode production following the 35 day strike action which commenced in early January and was resolved on February 5, 2026. This disruption impacted sulphide plant, heap and dump throughput, as well as mill feed sulphide copper grades driven by the processing of lower grade stockpiles during the period. Overall, plant throughput averaged 27,707 tpd (January - 17,800 tpd, February - 33,400 tpd, March - 32,500 tpd), reflecting normalization of operations in the latter part of the quarter following the earlier disruptions. Despite these challenges, copper recoveries improved to a record 90.3% in Q1 2026 compared to 82.3% in Q1 2025.

Q1 2026 combined C1 cash costs 1 were $2.59/lb, 5% higher than $2.46/lb in Q1 2025, mainly related to lower copper production (+$0.46/lb), partially offset by lower acid, power, diesel and explosive consumption (-$0.22/lb) and higher gold prices (-$0.10/lb). 2026 cathode C1 cash costs 1 were $5.77/lb, 20% higher compared to 2025, mainly due to lower cathode production driven by lower throughput (+$0.90/lb), with higher acid prices offset by lower consumption (-$0.09/lb).

Mantos Blancos Mine (100% owned)

Q1 2026 copper production of 12,301 tonnes, composed of 10,501 tonnes of copper in concentrate from sulphide operations and 1,800 tonnes of cathodes, was 11% lower than in Q1 2025. The decline was primarily driven by lower sulphide feed grades as a result of a one-year period of lower grades per the mine plan (0.73% in Q1 2026 versus 0.89% in Q1 2025). Higher copper grades of approximately 0.85% are expected to return in 2027. Sulphide mill throughput averaging 19,661 tpd was strong despite a four day planned maintenance shutdown.

Combined Q1 2026 C1 cash costs 1 of $3.02/lb ($2.79/lb sulphides and $4.28/lb cathodes) were 24% higher compared to $2.43/lb in Q1 2025 mainly due to lower production impacted by lower grades as a result of mine sequence (+$0.30/lb) and higher mining costs - driven by increased maintenance activities and more intensive drilling and blasting requirements associated with harder ore (+$0.31/lb).

Pinto Valley Mine (100% owned)

Q1 2026 copper production was 2% lower than in Q1 2025, primarily due to reduced mill throughput (34,994 tpd in Q1 2026 versus 49,597 tpd in Q1 2025). The decrease was attributable to mill interruptions, including approximately 12 days of unplanned maintenance related to the filter plant and a failure in the roof of the concentrate storage facility during the quarter. This impact was partially offset by higher feed grade (0.36% in Q1 2026 versus 0.28% in Q1 2025) and improved recoveries (88.2% Q1 2026 versus 83.2% Q1 2025) based on mine sequence. The planned shutdown in September to rebuild the primary crusher mainframe and enhance the filter plant is expected to reduce unplanned mill maintenance issues and support more stable plant operations going forward. Near-term reliability initiatives to improve plant availability are also underway.

Q1 2026 C1 cash costs 1 of $3.46/lb were 10% lower than $3.84/lb in the same period last year, primarily driven by higher capitalized stripping and reduced spending on contractors and mechanical parts, resulting in lower operating costs (-$0.40/lb), along with lower treatment and selling costs (-$0.05/lb). These improvements were partially offset by lower payable production (+$0.07/lb).

Cozamin Mine (100% owned)

Q1 2026 copper production of 5,930 thousand tonnes was 9% lower than in Q1 2025 primarily due to lower feed grades (1.93% in Q1 2026 versus 2.05% in Q1 2025) and lower recoveries (94.1% in Q1 2026 versus 96.9% in Q1 2025) as a result of planned mine sequence. Mill throughput remained consistent with the same period in the prior year.

Q1 2026 C1 cash costs 1 were $0.71/lb, 45% lower than $1.28/lb in the same period last year. The reduction was primarily driven by higher by-product credits (-$0.91/lb), reflecting stronger silver prices, in addition to lower treatment and selling costs (-$0.06/lb). These benefits were partially offset by higher operating costs (+$0.40/lb) mainly attributable to increased spend on contractors, spare parts and consumables.

2026 Outlook

2026 guidance is unchanged as follows: 200-230kt consolidated production of copper, $2.45-$2.75/lb C1 cash costs 1 per payable pound of copper, $270 million sustaining capital expenditures, $225 million expansionary capital expenditures, $225 million capitalized stripping, and $70 million exploration expenditures.

Middle East Conflict

We continue to monitor and manage the impacts stemming from the conflict in the Middle East. To date, there have been no direct impacts to our operations, while copper markets have remained strong with the average LME copper price in the first quarter 16% higher than the previous quarter. Our scale, operating locations and supply chains provide a strong foundation and our businesses continue to operate normally.

Higher diesel and sulphuric acid prices are putting upward pressure on costs, which has been partially offset by stronger by-product pricing. The sensitivities to input cost pressures for diesel and sulphuric acid are as follows:

We expect to consume approximately 134 million litres of diesel over the remainder of 2026 (75% in Chile, 24% in the USA, and 1% in Mexico) and our guidance assumed $60/bbl oil. From April, every 10% change in oil prices (including refining margins) is estimated to impact direct costs by approximately $13 million, split between $9 million (or $0.02 per payable pound) impact to our consolidated C1 cash costs and $4 million impact to capitalized stripping.

We expect to consume approximately 590kt of sulphuric acid over the remainder of 2026 (97% in Chile and 3% in the USA), of which 55% is locked in fixed price contracts at an average price of $185/t CFR Chile and 45% is tied to variable pricing for which our guidance assumed $185/t CFR Chile. Contracted volumes total 70% of planned consumption for the remainder of the year, and variable pricing is weighted to the second half of 2026. Our supply of sulphuric acid is expected to come from domestic sources, as well as Peru, European, and Asian countries excluding China. From April, every 10% change in sulphuric acid prices is estimated to impact consolidated C1 cash costs by approximately $5 million (or $0.01 per payable pound).

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

MV Optimized, a capital-efficient brownfield expansion of Mantoverde's sulphide concentrator, was sanctioned for development during Q3 2025. MV Optimized is expected to increase concentrator throughput from 32,000 to 45,000 ore tonnes per day, providing incremental copper and gold production of approximately 20,000 tonnes and 6,000 ounces of gold per annum, respectively, and extending the mine life from 19 to 25 years, at an estimated capital cost of $176 million.

During Q1 2026, the Company completed the detailed engineering for the concentrator expansion, began taking deliveries of key equipment and supplies, and commenced execution of the habilitation and construction works at the concentrator plant. In Q2 2026, additional equipment and supplies are expected to be received on site while executing the construction works at the concentrator plant, the tailings storage facility, and the desalination plant. The majority of project tie-ins are scheduled in Q3 2026 during an extended 15 day maintenance period, followed by a ramp-up period in Q4 2026. The expanded sulphide throughput capacity of approximately 45,000 ore tonnes per day is expected to be sustained starting in early 2027.

Santo Domingo Project

In October 2025, Capstone announced a joint venture transaction in which fund entities managed by Orion will acquire a 25% ownership interest in the Santo Domingo Project and the Sierra Norte Project for total cash consideration of up to $360 million. Total cash consideration includes $225 million payable upon a positive final investment decision ("FID") on Santo Domingo, $75 million matching contribution payable within six months of the FID, and up to $60 million in contingent consideration payable to Capstone upon the achievement of certain value-enhancing initiatives (the "Orion Contingent Consideration"). Capstone has the option to re-consolidate 100% ownership of Santo Domingo via a buyback once commercial production is achieved. The transaction de-risks capital funding requirements for Santo Domingo, providing financial flexibility during project construction. Additionally, the contingent consideration reflects the attractive long-term value of upside opportunities in the district.

During Q1 2026, Capstone continued to advance the remaining workstreams towards a final investment decision on Santo Domingo expected in Q4 2026. Those remaining workstreams include:

Advancing detailed engineering towards the target of 60% completion, which includes updating the $2.3 billion initial capital cost estimate (released in the 2024 Feasibility Study based on 2023 dollars);

Evaluating district infrastructure optimization opportunities; and

Securing financing for the project.

During Q1 2026, the Company progressed copper production upside projects tied to the contingent consideration milestones and enhancing the Santo Domingo mine plan, including:

At Santo Domingo, the exploration drill program reached 27% completion, with 15,200 metres of the planned 54,700 metres drilled to date. The primary focus of this program is to delineate oxide mineralization at the top of the Santo Domingo and Estrellita sulphide orebodies, while also testing for potential sulphide extensions adjacent to the planned pits. $20 million of the Orion Contingent Consideration is predicated upon publication of a NI 43-101 Feasibility Study that demonstrates the processing of oxide material containing at least 159,000 tonnes of copper.

At Sierra Norte, located 15 kilometres northwest of Santo Domingo, the second phase of a re-assay program was initiated to support the incorporation of cobalt into the resource evaluation and the determination of key metallurgical parameters for the deposit. This follows the first phase of the re-assay program, to validate the existing drilling database, which was completed in Q4 2025. $20 million of the Orion Contingent Consideration is predicated upon publication of a NI 43-101 Technical Report outlining a Proven and Probable Reserve of at least 268,000 tonnes of contained copper at Sierra Norte.

Within the MV-SD district, a cobalt plant is designed to unlock cobalt production while reducing sulphuric acid consumption and increasing heap leach copper production. 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. Following sanctioning of the Santo Domingo project, the facility will be expanded to accommodate by-product streams from Santo Domingo, with a combined MV-SD target of 4,500 to 6,000 tonnes per annum of cobalt production. The final $20 million of the Orion Contingent Consideration is predicated upon: (i) publication of a NI 43-101 Feasibility Study that incorporates construction of a cobalt processing circuit; and (ii) obtaining all material permits for the cobalt processing circuit.