Capstone Copper (CS) AI Stock Analysis

• Market Cap: $5.07B
• Dividend Yield: N/A
• Average Volume (3M): 3.32M
• Price to Earnings (P/E): 44.1
• Beta (1Y): 2.54
• Revenue Growth: 20.74%
• EPS Growth: N/A
• Country: CA
• Employees: 3,008
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Copper
• EPS (TTM): 0.15
• Shares Outstanding: 761,902,300
• 10 Day Avg. Volume: 2,326,342
• 30 Day Avg. Volume: 3,319,924
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.79
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 109.46
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.89
• Price Target Upside: 63.48% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

Capstone Copper's overall score reflects strong revenue growth and operational efficiency, tempered by profitability challenges and high capital expenditures impacting free cash flow. Bearish technical indicators and a high P/E ratio suggest caution, while positive earnings call sentiment and strategic corporate events provide a balanced outlook. Financial performance remains the most significant factor, supported by promising corporate developments.

Positive Factors

Financial Position

Capstone finished Q4/24 with $506.4M in available liquidity, providing a strong financial position with $132.4M in cash and short-term investments and $374.0M in undrawn revolving credit facility capacity.

Operational Performance

Mantoverde sulphides produced a record 6.6kt of copper, marking the first month with average throughput exceeding the plant's nameplate capacity.

Strategic Growth

Capstone's financial flexibility and diversified asset base will allow the company to pursue value accretive opportunities, supporting production growth and lowering costs.

Negative Factors

Cost Structure

A significant cash cost decline is unlikely before Santo Domingo comes online, placing Capstone at the high end of the cash cost curve.

Earnings Performance

Capstone reported Q3/24 adjusted EPS a bit below consensus while adjusted EBITDA was a modest miss.

Sales Performance

Copper sales were below payable production levels by ~2.3kt driven by seasonal swells at load ports in Chile.

Capstone Copper Business Overview & Revenue Model

Company Description

Capstone Copper Corp. operates as a copper mining company with focus on the Americas. It owns and operates the Pinto Valley copper mine located in Arizona, the United States; the Cozamin copper-silver mine located in Zacatecas, Mexico; the Mantos Blancos copper-silver mine located in the Antofagasta region, Chile; and 70% of the Mantoverde copper-gold mine located in the Atacama region, Chile. The company also owns the fully permitted Santo Domingo copper-gold project located northeast of Mantoverde in the Atacama region, Chile, as well as a portfolio of exploration properties in the Americas. The company is headquartered in Vancouver, Canada.

How the Company Makes Money

Capstone Copper generates revenue through the sale of copper concentrate extracted from its mining operations. The company operates several mines and processing facilities where it extracts, processes, and sells copper and other by-products such as gold and silver, which are often found in copper deposits. Revenue is primarily driven by the volume of copper produced and sold, as well as global copper prices, which are influenced by market demand and supply dynamics. Additionally, Capstone Copper may engage in strategic partnerships or joint ventures with other mining companies to optimize production and expand its market reach, further contributing to its earnings.

Capstone Copper Financial Statement Overview

Summary

Capstone Copper's financial performance faces significant challenges with a decline in profitability, increased debt levels, and negative free cash flow. Although the balance sheet remains robust, operational inefficiencies and high capital expenditures strain the company's financial stability.

Income Statement

Capstone Copper's income statement shows a decline in profitability, with a negative net income in the most recent year. The gross profit margin decreased significantly over the past year. While revenue growth is stagnant, the EBIT and EBITDA margins have contracted, reflecting operational challenges in the mining industry.

Balance Sheet

The balance sheet indicates a solid equity base, but the debt-to-equity ratio has increased, suggesting higher leverage. The return on equity has turned negative due to recent losses, which poses a risk. However, the equity ratio remains stable, providing some financial cushion.

Cash Flow

Cash flow analysis reveals negative free cash flow due to high capital expenditures. The operating cash flow to net income ratio is unfavorable due to the net loss, indicating cash flow management challenges. Despite past positive cash flow trends, recent performance shows significant strain.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.35B	1.30B	794.77M	453.76M	418.66M
	Gross Profit
83.02M	207.80M	360.44M	82.18M	42.43M
	EBIT
32.93M	140.22M	262.18M	37.31M	14.19M
	EBITDA
175.48M	303.51M	442.74M	119.86M	94.99M
	Net Income Common Stockholders
-101.67M	122.20M	226.83M	12.56M	10.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
126.82M	171.86M	264.35M	60.01M	44.49M
	Total Assets
5.87B	5.38B	1.73B	1.39B	1.33B
	Total Debt
1.16B	702.97M	16.04M	193.13M	213.03M
	Net Debt
1.03B	532.66M	-246.05M	136.55M	173.09M
	Total Liabilities
2.81B	2.20B	711.53M	502.42M	459.99M
	Stockholders Equity
2.66B	2.75B	1.02B	779.06M	761.10M
Cash Flow		Free Cash Flow
-499.91M	-472.33M	419.92M	49.65M	-3.86M
	Operating Cash Flow
116.82M	87.42M	553.35M	147.17M	92.88M
	Investing Cash Flow
-673.28M	-370.74M	-143.69M	-96.37M	-65.49M
	Financing Cash Flow
508.47M	192.14M	-204.28M	-34.13M	-21.65M

Capstone Copper Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CS, the sentiment is Neutral. The current price of 6.66 is above the 20-day moving average (MA) of 6.21, below the 50-day MA of 7.31, and below the 200-day MA of 8.81, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 74.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CS.

Capstone Copper Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CS	58 Neutral	$5.07B	44.11	2.90%	―	20.74%	―
Sector *	49 Neutral	$1.95B	-1.37	-21.20%	3.73%	0.84%	-29.84%

Capstone Copper Corporate Events

Capstone Copper Reports Strong Shareholder Support at 2025 AGM

Capstone Copper Corp. announced the results of its 2025 Annual General Meeting, where shareholders voted overwhelmingly in favor of all proposed items, including the election of eight directors and the re-appointment of Deloitte LLP as auditors. The meeting saw a high voter turnout, with 77.96% of common shares represented. The approval of executive compensation and other business items reflects strong shareholder support, positioning the company well for future strategic initiatives.

Spark’s Take on TSE:CS Stock

According to Spark, TipRanks’ AI Analyst, TSE:CS is a Neutral.

Capstone Copper’s overall stock score reflects strong revenue growth and operational efficiency but is tempered by profitability challenges and high capital expenditures impacting free cash flow. Bearish technical indicators and a high P/E ratio suggest caution, while positive earnings call sentiment and strategic corporate events provide a balanced outlook. The financial performance remains the most significant factor, supported by promising corporate developments.

To see Spark’s full report on TSE:CS stock, click here.

Capstone Copper Achieves Record Q1 2025 Production and Revenue

Capstone Copper Corp. reported a strong start to 2025 with record sulphide copper production and revenues in the first quarter. The company achieved a significant increase in adjusted EBITDA, driven by higher copper production and prices. Despite a net loss, Capstone maintained a robust financial position with substantial liquidity and reiterated its guidance for 2025 copper production and costs. The company also completed a significant debt offering and repurchased a royalty, enhancing its financial flexibility and operational outlook.

Spark’s Take on TSE:CS Stock

According to Spark, TipRanks’ AI Analyst, TSE:CS is a Neutral.

Capstone Copper demonstrates strong revenue growth and operational efficiency, though profitability and free cash flow management present challenges. Technical indicators suggest bearish momentum, and the high P/E ratio implies potential overvaluation. The earnings call highlighted positive production achievements but also outlined operational difficulties. Recent corporate financial restructuring efforts are promising, yet risks remain, reflected in a moderate overall score.

To see Spark’s full report on TSE:CS stock, click here.

Capstone Copper to Announce Q1 2025 Financial Results

Capstone Copper Corp. announced that it will release its first quarter 2025 financial results on May 1, 2025, after market close. The announcement will be followed by an investor conference call. This release is significant for stakeholders as it provides insights into the company’s financial performance and operational progress, which are crucial for assessing its market position and future growth prospects.

Spark’s Take on TSE:CS Stock

According to Spark, TipRanks’ AI Analyst, TSE:CS is a Neutral.

Capstone Copper’s overall stock score reflects strong financial performance with significant revenue growth and operational efficiency. The positive outlook from the earnings call, highlighted by record production and deleveraging, contributes favorably. However, the stock’s high valuation and bearish technical indicators, coupled with challenges in profitability and free cash flow, moderate the overall score.

To see Spark’s full report on TSE:CS stock, click here.

Capstone Copper Upsizes Senior Notes Offering to $600 Million

Capstone Copper Corp. announced the successful pricing and upsizing of its senior notes offering to $600 million, up from the initially planned $500 million. The proceeds will be used to repay project financing debt at its Mantoverde subsidiary, reduce debt on its senior secured revolving credit facility, and for general corporate purposes. This move is part of Capstone’s strategy to optimize its financial structure and support its growth initiatives in the copper mining sector.

Capstone Copper Launches $500 Million Senior Notes Offering

Capstone Copper Corp. announced a $500 million offering of senior notes due 2033 to refinance debt and support corporate purposes. This move aims to strengthen the company’s financial position by repaying project financing debt and reducing its revolving credit facility, potentially enhancing its operational flexibility and market competitiveness.

Capstone Copper Achieves Record Production and Plans Future Growth

Capstone Copper Corp. reported record copper production and earnings for Q4 2024, marking significant growth and transformation in its operations. The company announced plans for future growth, including the development of the Mantoverde Optimized project, further balance sheet strengthening, and continued operational efficiency, all of which are expected to boost cash flow and reduce costs, benefiting stakeholders.