Capstone Copper Forecasts 200,000-230,000 Tonnes Copper, $2.45-$2.75 Cash Costs
Capstone Copper forecasts steady 2026 copper output with a $495 million capital expenditure plan focused on key growth projects and exploration in Chile.
- 2026 copper production guidance of 200,000 to 230,000 tonnes
- C1 cash costs expected between $2.45 and $2.75 per payable pound
- Total capital expenditure budget of $495 million, split between sustaining and expansionary
- Major investments in Mantoverde Optimized and Santo Domingo projects
- Exploration budget of $70 million targeting Mantoverde-Santo Domingo district
Steady Production Outlook
Capstone Copper Corp. has released its 2026 guidance, projecting consolidated copper production between 200,000 and 230,000 tonnes. This forecast reflects a largely stable output compared to 2025, a year marked by a 22% production increase. The company anticipates a modest rise in C1 cash costs to between $2.45 and $2.75 per payable pound of copper, influenced by inflationary pressures and lower-grade ore zones at some operations.
Capital Investment Focused on Growth
The company plans to invest $495 million in capital expenditures during 2026, divided into $270 million for sustaining capital and $225 million for expansionary projects. The bulk of expansionary spending is earmarked for the Mantoverde Optimized Project and the fully permitted Santo Domingo Project in Chile. Mantoverde’s sulphide concentrator ramp-up is expected in the fourth quarter, aiming to reach design throughput by year-end. Meanwhile, Santo Domingo is progressing towards a sanctioning decision anticipated in the second half of 2026.
Operational Challenges and Mine Sequencing
Operationally, Capstone faces some headwinds. Mantos Blancos is expected to see a production dip due to a one-year period of lower copper grades, while Pinto Valley anticipates increased throughput but slightly lower grades. Maintenance shutdowns are scheduled across several sites, including a significant 15-day maintenance at Mantoverde in Q3 to facilitate project tie-ins. These factors contribute to the anticipated cost increases and production variances across the portfolio.
Exploration and Hedging Strategies
Exploration remains a priority with a $70 million budget targeting both brownfield and greenfield opportunities, primarily in the Mantoverde-Santo Domingo district. The program aims to enhance grades, add mineralisation, and test high-priority targets. On the financial side, Capstone has implemented zero-cost copper and gold collars to hedge portions of its higher-cost copper cathode production and gold exposure, providing a price floor and ceiling to manage commodity price volatility.
Looking Ahead
Capstone’s strategy balances maintaining steady production and cost discipline while advancing key growth projects and exploration. The ramp-up of Mantoverde Optimized and the potential sanctioning of Santo Domingo will be critical milestones to watch. The company also emphasises deleveraging through internally generated cash flows, positioning itself to capitalise on strong commodity prices and future growth opportunities.
Bottom Line?
Capstone’s 2026 guidance sets the stage for growth but hinges on successful project execution and navigating operational challenges.
Questions in the middle?
- Will the Mantoverde Optimized Project ramp-up meet its year-end throughput targets?
- How will the Santo Domingo sanctioning decision impact Capstone’s growth trajectory?
- What exploration results might unlock further resource upside in the Mantoverde-Santo Domingo district?
