Capstone Copper (TSE:CS) executives highlighted record production, lower unit costs, and strong cash generation in the company’s fourth-quarter and full-year 2025 results call, while framing 2026 as a year focused on “disciplined execution and reliable results” ahead of expected growth in 2027 and beyond.
Record 2025 production and Q4 results
President and CEO Cashel Meagher said 2025 was an “inflection point” for the company, citing record copper production and EBITDA generation driven by project execution and operational improvements. In the fourth quarter, Capstone delivered record consolidated copper production of 58.3 thousand tonnes at a record-low consolidated C1 cash cost of $2.31 per pound. For the full year, the company produced a record 225,000 tonnes of copper at a consolidated C1 cash cost of $2.44 per pound, a 22% increase in output versus 2024, management said.
Adjusted EBITDA in Q4 was $308 million, up 79% year-over-year, marking the company’s fifth consecutive quarter of record EBITDA, Randhawa said. Adjusted net income attributable to shareholders more than doubled to $75 million, or $0.10 per share. Capstone also reported $287 million of operating cash flow before working capital changes.
2026 guidance: stable production, higher costs and heavy capital program
Management reiterated 2026 guidance of consolidated copper production of 200,000 to 230,000 tonnes at C1 cash costs of $2.45 to $2.75 per payable pound. Meagher said production is expected to be “largely stable” versus 2025, while costs are forecast to rise due to lower-grade zones at Mantos Blancos and Pinto Valley and modest inflation.
On capital, Capstone guided to:
- ~$270 million of sustaining capital in 2026
- $225 million of expansionary capital, including $150 million for Mantoverde Optimized, $15 million at Mantos Blancos, and $60 million at Santo Domingo
- $225 million of capital stripping
- $70 million of exploration spending
Randhawa said operating costs for 2026 are expected to rise about 4% in absolute dollars, largely reflecting labor and sulfuric acid inflation. He added that the higher C1 cost guidance is more “denominator-driven” due to lower grades. He also noted byproduct prices have been higher than Capstone’s guidance assumptions and, at current spot prices, could reduce 2026 C1 costs by about $0.10 per pound.
Operations update: Mantoverde reliability, Mantos Blancos sequencing, and Pinto Valley water strategy
Chief Operating Officer Jim Whittaker and Meagher detailed mine-by-mine performance and near-term operational priorities.
Mantoverde produced 23,819 tons of copper in Q4 at a combined C1 cash cost of $2.32 per payable pound. Throughput averaged 23.4 thousand tons per day due to repairs to mill motors that caused about 16 days of downtime, Whittaker said. After upgrades and added protections, the sulfide plant reached record average throughput of about 37 thousand tons per day in December. Management said all five motors are now on site, with an additional spare motor ordered for later in 2026.
For Mantoverde Optimized (MVO), Whittaker said the company expects capital costs of $176 million and timelines to remain unchanged, with civil works starting after procurement completion in Q1 and major construction contracts planned for Q2. The company plans to complete tie-ins in Q3 before ramping throughput in Q4, targeting an exit rate of about 45,000 tons per day by year-end 2026. Whittaker said MVO is expected to add roughly 20,000 tons per year of copper at a low capital intensity of about $9,000 per ton.
Mantos Blancos delivered Q4 copper production of 16,861 tons at a C1 cash cost of $1.94 per payable pound, with throughput averaging 21.4 thousand tons per day. For 2026, Capstone guided Mantos Blancos production of 48,000 to 56,000 tons at C1 cash costs of $2.85 to $3.15 per payable pound, with management attributing the expected year-over-year decline to a one-year period of lower copper grades (around 0.7%) due to mine sequencing, with higher grades (around 0.85%) expected to return in 2027. In the Q&A, Meagher said grade reconciliation “isn’t in question” and the company expects to publish an updated technical report later in 2026 with more detailed mine planning resolution.
Pinto Valley produced 11,423 tons of copper in Q4 at a C1 cash cost of $3.53 per payable pound. Whittaker said the mine was constrained by drought-related water limitations, operating at two-thirds availability in October with four of six mills running before returning to full availability in November and December. Management said its strategy has two main components: near-term water mitigation (including water infrastructure improvements and using the pit bottom for additional water storage) and longer-term water solutions (including potential agreements with other closed mines), alongside broader reliability improvements under an asset management framework. A 10-day maintenance shutdown including replacement of the primary crusher mainframe is now expected in Q3 2026.
Cozamin produced 6,170 tons of copper in Q4 at a record-low C1 cash cost of $0.98 per payable pound, benefiting from higher silver byproduct credits. Management said exploration work will continue to assess mine-life extension and potential improvements to the production profile.
Balance sheet and Santo Domingo financing workstreams
Randhawa said year-end liquidity more than doubled year-over-year to over $1 billion, including $304 million of cash and $711 million undrawn on the revolving credit facility. Consolidated net debt was $780 million, and net leverage declined to 0.8x net debt to EBIT at the end of 2025 from 1.5x a year earlier. Net debt rose during the quarter due to a $109 million negative working capital adjustment tied primarily to timing of accounts receivable collections, he said.
On Santo Domingo, Meagher said there are several remaining workstreams before a final investment decision expected in the second half of 2026, including securing an optimal financing strategy, advancing detailed engineering to about 60%, and evaluating infrastructure options such as desalination and port arrangements. Randhawa said the company is assessing alternatives including traditional project financing and a potential mix of high-yield and bank debt, while weighing cost of capital and associated restrictions. Management also pointed to the previously announced partnership agreement for a 25% interest (referred to on the call as the Orion partnership) as part of its financing and de-risking approach.
Safety, sustainability, and exploration priorities
Senior Vice President Wendy King said Capstone published its 2024 sustainability report in October and launched an integrated health, safety, and environment management system. She noted Pinto Valley received The Copper Mark in 2025, joining Mantoverde and Mantos Blancos, which received the recognition in 2023, and said Cozamin began The Copper Mark assurance process in 2025.
King also highlighted the first year of the company’s three-year CU Safe program, including a safety leadership module for site management and phase I of a mobile HSE database. She said Capstone achieved an approximately 30% year-over-year reduction in reportable injuries.
Looking ahead, Meagher said the company plans to release the Mantos Blancos Phase II study mid-year and emphasized exploration priorities in Chile, including Mantoverde targets north of the pit and along a 10-kilometer corridor, as well as upside opportunities around Santo Domingo and the nearby Sierra Norte deposit.
About Capstone Copper (TSE:CS)
Capstone Copper Corp is a company that mines, explores, and develops mineral properties in the Americas. Specifically, the group has operating mines in the US, Mexico, and Canada, and development projects in Chile and Canada. Capstone’s main focus is copper, but the company also produces zinc, lead, molybdenum, silver, and gold.
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