Capstone Copper Doubles EBITDA on Record Q1 Production, Reaffirms 2025 Growth Path

Robust Operational Performance Drives Financial Strength

Capstone Copper Corp. kicked off 2025 with a robust operational and financial performance, reporting record sulphide copper production of 45,950 tonnes in Q1, a 49% increase compared to the same period last year. This surge was primarily driven by the successful ramp-up of the Mantoverde sulphide concentrator and increased throughput at Mantos Blancos, both key assets in Chile.

Consolidated copper production reached 53,796 tonnes, marking a 28% year-over-year increase, while the company achieved a notable reduction in C1 cash costs to $2.59 per pound, down 10% from Q1 2024. These operational gains translated into a dramatic financial uplift, with adjusted EBITDA more than doubling to $179.9 million, fueled by higher production volumes and a stronger realised copper price averaging $4.36 per pound.

Strategic Financial Moves and Capital Management

Capstone strengthened its financial position through a $600 million upsized senior unsecured notes offering at a 6.75% coupon, earmarked to refinance project-level debt at Mantoverde and reduce revolving credit facility borrowings. The company also repurchased a 2% net smelter return royalty on the Santo Domingo project from ENAMI for $10 million, enhancing future cash flow potential by reducing royalty burdens on a significant portion of the mineral reserve.

Despite a modest increase in net debt to $788.1 million, Capstone maintains substantial liquidity of over $1 billion, including $344.5 million in cash and short-term investments and $700 million undrawn on its revolving credit facility. This liquidity buffer positions the company well to navigate market uncertainties and fund ongoing growth initiatives.

Advancing Growth Projects Amidst Market Uncertainty

Capstone reaffirmed its 2025 guidance, targeting consolidated copper production between 220,000 and 255,000 tonnes at cash costs of $2.20 to $2.50 per pound. Capital expenditure guidance remains steady at $315 million for sustaining and expansionary projects, supplemented by $210 million for capitalized stripping and $25 million for exploration.

Key growth projects are progressing, including the Mantoverde Optimized brownfield expansion, which aims to increase sulphide concentrator throughput from 32,000 to 45,000 tonnes per day and extend mine life by six years. Environmental permitting is anticipated by mid-2025, with construction expected to commence thereafter. The Santo Domingo copper-iron-gold project is advancing through detailed engineering and financing discussions, with a potential sanction decision targeted before mid-2026.

Exploration efforts continue to focus on expanding mineral resources across the portfolio, including at Sierra Norte and within the Mantoverde-Santo Domingo district, underpinning Capstone’s strategy of organic growth in top-tier jurisdictions.

Leadership Transition and Corporate Governance

Capstone announced a planned leadership transition effective May 2, 2025, with CEO John MacKenzie stepping down to become Non-Executive Chair. Cashel Meagher, currently President and COO, will assume the CEO role, while James Whittaker will be promoted to COO. This leadership reshuffle aims to streamline operations and maintain strategic continuity as the company scales its production and development activities.

Additionally, Rick Coleman, a mining industry veteran with over 45 years of experience, joined the Board in January 2025, bringing valuable expertise to support Capstone’s growth trajectory.