Capstone Copper has reported record-breaking copper production and adjusted EBITDA for Q4 and full-year 2025, while progressing key expansion projects and maintaining stable guidance for 2026.
- Record consolidated copper production of 58,273 tonnes in Q4 2025
- Adjusted EBITDA reached $308 million in Q4, nearly doubling year-on-year
- Mantoverde Optimized expansion project under construction, targeting 2027 ramp-up
- Strategic partnership secured for Santo Domingo Project with Orion Resource Partners
- 2026 production guidance stable at 200,000 to 230,000 tonnes with modest cost increases
Strong Operational Performance
Capstone Copper Corp. has delivered a standout performance in the final quarter of 2025, posting record copper production of 58,273 tonnes, an 8% increase over the previous year’s quarter. This surge was driven primarily by higher sulphide production at the Mantoverde and Mantos Blancos mines, supported by operational improvements such as increased mill throughput and successful debottlenecking projects.
For the full year, Capstone achieved a 22% increase in consolidated copper production to 224,764 tonnes, while simultaneously reducing its C1 cash costs by 12% to $2.44 per pound. These cost efficiencies were bolstered by higher by-product credits from gold and silver, as well as favourable foreign exchange and treatment charges.
Financial Milestones and Market Position
The company’s financial results reflected this operational strength, with adjusted EBITDA for Q4 2025 reaching a record $308 million, up from $172 million a year earlier. Net income attributable to shareholders rose to $50.6 million for the quarter, and $315.9 million for the full year, marking a significant improvement over 2024. Operating cash flow before working capital changes also nearly doubled in the quarter, underscoring robust cash generation.
Despite a modest increase in net debt to $780 million at year-end, Capstone maintains strong liquidity with over $1 billion available, including cash reserves and undrawn credit facilities. This financial flexibility positions the company well to fund its growth initiatives and navigate market volatility.
Advancing Growth Projects
Capstone is actively progressing its growth pipeline, highlighted by the Mantoverde Optimized Project, a brownfield expansion sanctioned in 2025. Construction is underway, with completion and ramp-up expected by late 2026 and early 2027 respectively. This expansion aims to increase concentrator throughput by 40%, adding approximately 20,000 tonnes of copper production annually and extending mine life to 25 years.
In parallel, the company has secured a strategic investment partnership with Orion Resource Partners for the Santo Domingo Project and adjacent Sierra Norte deposit. Orion’s 25% stake, with up to $360 million in cash consideration contingent on project milestones, de-risks capital requirements and supports ongoing exploration and feasibility work. A final investment decision for Santo Domingo is anticipated in the second half of 2026.
Exploration and Future Potential
Exploration remains a key focus, with a $70 million budget allocated for 2026 targeting resource expansion across the Mantoverde-Santo Domingo district and other sites. Drilling programs are underway to delineate oxide and sulphide mineralization, aiming to underpin future mine planning and extend resource life. Additional studies are also evaluating expansion options at Mantos Blancos and the Pinto Valley district, potentially unlocking further production and operational synergies.
Outlook and Guidance
Looking ahead, Capstone has issued 2026 production guidance of 200,000 to 230,000 tonnes of copper, largely stable compared to 2025. The company anticipates a slight increase in C1 cash costs to $2.45–$2.75 per pound, reflecting mine sequencing effects and inflationary pressures. Capital expenditure plans total $495 million, split between sustaining and expansionary investments, alongside $225 million in capitalized stripping.
Operationally, the company is focused on delivering consistent results while advancing its growth projects and exploration programs. The recent resolution of labor strikes at Mantoverde through new collective agreements further supports operational stability.
Bottom Line?
Capstone Copper’s record 2025 performance and strategic project advancements set the stage for growth, but execution risks and cost pressures warrant close investor attention.
Questions in the middle?
- How will the ramp-up of the Mantoverde Optimized Project impact production and costs in 2027?
- What are the key milestones and financing conditions ahead of the Santo Domingo Project’s final investment decision?
- How might inflation and operational challenges affect Capstone’s cost guidance and margins in the near term?