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Capstone Copper Prepares for ASX Listing Debut

24 January 2024 13:11
Capstone

Capstone Copper is a distinguished exploration company listed on the Toronto Stock Exchange (TSX), boasting an extensive portfolio of long-life copper operations throughout the Americas. With ambitious aspirations, the Company is set to commence trading on the Australian Securities Exchange (ASX) in February.

At the forefront of Capstone’s endeavours is a fully permitted development project in one of the world’s most prolific copper-producing districts, strategically positioning the Company to pursue transformational growth while actively contributing to shaping the future of responsible copper mining.

Copper: A Metal for the Future

Copper is known for its exceptional conductivity of electricity and heat, serving a key role in the infrastructure necessary to support renewable energy and achieve nation’s net zero climate goals.

Despite copper’s pivotal role in the global push towards a greener future, there has been growing concern, in recent years, among mining experts regarding the potential for supply shortages as early as 2025.

The International Copper Study Group (ICSG) predicts another year of deficits in the copper market, forecasting a global refined copper balance shortfall of approximately 114,000 tonnes for 2023, compared to a 431,000-tonne deficit in 2022.

In contrast, copper demand continues its upward trajectory, with an expected 2.6 percent increase in production by the end of 2023 and a further 4.4 percent uptick in 2024.

McKinsey & Company forecasts that the electrification trend will drive annual copper demand to reach 36.6 million metric tonnes by 2031 by 2031, surpassing current supply forecasts of 30.1 million metric tonnes and leaving a significant supply gap of 6.5 million metric tonnes.

Despite the paradoxical dynamics of supply and demand within the copper industry, significant opportunities abound for explorers such as Capstone, dedicated to meeting the world’s growing needs by producing copper.

Capstone Copper (ASX:CSC)

Capstone Copper (TSX:CS), already listed on the TSX, is poised to expand its reach by debuting on the ASX on February 2nd through a Chess Depositary Interest (CDI), an instrument allowing non-Australian companies to list their shares on the ASX and use the exchange’s settlement systems.

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Figure 1: Capstone Copper statistics. *based on 2022 Financial Results. **view full Mineral Reserves and Resources table. ***mid point of H2 2023 guidance.

The Mantoverde Development Project

Capstone’s Mantoverde Development Project (MVDP) marks a transformative expansion of its existing Mantoverde mine in Chile, seamlessly integrating sulphide ore processing through a copper concentrator alongside its current oxide ore capabilities.

The $870 million Project is in the final stages of construction and will drive significantly higher consolidated production at lower unit costs.

The MVDP is expected to increase production from approximately 49,000 tonnes of copper to a run-rate of approximately 120,000 tonnes of copper in 2024, underscoring Capstone’s commitment to advancing operational efficiency and output in its mining ventures.

Gallery Exploration Drilling Mantoverde

Figure 2: Capstone’s Mantoverde Development Project

Pinto Valley Project

The Company’s Pinto Valley Copper Project is currently the only operating mill located in the historic Globe-Miami mining district of Arizona, one of the oldest and most productive mining districts in the US.

Since its first recorded production in 1975, Pinto Valley has produced more than 4 billion pounds of copper, including 0.5 billion pounds of copper cathode.

Through continuous enhancements, exemplified by the recent $31 million PV3 Optimization, the mill at the Pinto Valley Copper Project has undergone significant improvements. These optimisations have not only bolstered productivity but increased recoveries, resulting in the Project producing between 53.5 – 56.5 thousand tonnes of copper in 2023.

Expansive Portfolio

Situated in the mineral-rich state of Zacatecas, Mexico, Capstone’s Cozamin Project is a copper-silver underground mine that has consistently generated free cash flow since its inaugural year of operation in 2007.

Proving to be a cornerstone for Capstone, the Cozamin Mine is poised for significant growth, anticipating annual production between 2023 and 2030 at 20 thousand tonnes of copper and 1.3 million ounces of silver, with average C1 costs projected at $1.51 per payable pound of copper.

During the period from 2023 to 2027, the Cozamin Mine is projected to exhibit even higher average annual production at 24 thousand tonnes of copper and 1.7 million ounces of silver, and lower average projected C1 costs of $1.46 per payable pound of copper.

Additionally, Capston’e Chilean assets bolster its portfolio, including the Mantos Blancos open-pit mine, located in the Antofagasta region, and the Santo Domingo copper-iron project, in the Atacama region.

Gallery Exploration

Figure 3: Capstone Copper

Capstone Copper’s (TSX:CS) Toronto Stock Exchange-listed share price has risen 3.65% today and is currently selling at $6.24 CAD (12.45pm UTC+ 8 hours).

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