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Capstone Q3 2019 Results, Near-Term Organic Growth

(All amounts in US$ unless otherwise specified)VANCOUVER, Nov. 5, 2019 /PRNewswire/ - Capstone Mining Corp. ("Capstone" or the "Company") (TSX:CS) announced its production and financial results for the three and nine months ended September 30, 2019 ("Q3 2019"). Total copper production from continuing operations for Q3 2019 totaled 39 million pounds of copper at consolidated C1 cash costs1 of $1.85 per pound. For full financial and operational results, refer to Capstone's Q3 2019 Management's Discussion and Analysis and Unaudited Condensed Interim Consolidated Financial Statements ("MD&A and Financial Statements"). Q3 2019 HIGHLIGHTS AND SIGNIFICANT ITEMS

Q3A 2019 copper production of 39 million pounds and C1 cash costs1 of $1.85 per payable pound produced. Copper sales were lower at 31 million pounds due to timing of the last shipment of the quarter at Pinto Valley.A 



Cozamin expansion project remains on track for the end of 2020 with the objective to debottleneck the mine with a one-way ramp system. The project is now expected to increase production to between 50 to 55 million pounds of copper and 1.4 to 1.5 million ounces of silver.



The Company achieved cost reductions of $25 million on its target of $25 million to $30 million in annualized savings.



The Company has now removed $25 million of annualized costs out of the business with the $12.5 million in savings at Pinto Valley plus $3.5 million on new revolver terms and improved cash management, $4 million from corporate administration and $5 million from the disposition of Minto.



Pinto Valley delivered an additional $2.5 million in sustainable annualized cost savings in Q3 2019, bringing the year-to-date total to $12.5 million.A Pinto Valley is targeting to achieve a total of $15 to $20 million in annualized cost savings.



Q3 2019 net loss of $(10.7) million(Q3 2018 - net income of $1.3 million), which was impacted by lower realized copper prices and negative provisional pricing adjustments in the quarter of $3.4 million, as well as lower sales volumes due to the timing of shipments for Pinto Valley concentrate and resulting build-up of concentrate inventory. This resulted in a loss per share of $(0.03) for the quarter (Q3 2018 - $0.00).A 



Q3 2019 adjusted net loss of $(8.7) million(Q3 2018 a?? adjusted net income of $1.0 million) and adjusted loss per share of $(0.02), (Q3 2018 a?? $0.00).A  Adjustments for 2019 relate to inventory write-down and change in fair value on the Minto contingent receivable.A 



2019 production and C1 cash costs1A guidance. Capstone expects to achieve consolidated production guidance of 145-160 million pounds and consolidated C1 cash costs1A guidance of $1.80-$2.00 per payable pound produced.A 



Capstone announced high grade copper and silver results drill results at Cozamin, see news release dated November 5, 2019.

"Never have I been this excited about Capstone's future as both Cozamin and Pinto Valley have clear organic growth strategies in place and we are focused on execution to deliver increased stakeholder benefits," said Darren Pylot, President and CEO of Capstone. "Cozamin will leverage incredible growth from expansionary capital of less than $5 million, expanding copper and silver production by 50% in 2021 and beyond. The continued exploration success achieved by our team is a paradigm shift for an already low cost and highly profitable mine. Cozamin has already delivered over $400 million in cumulative free cash flow for Capstone and it appears the best is yet to come in the decade ahead of us."
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