Capstone Copper's MV-O sanctioned for construction

Executive Summary

• Capstone Copper announced board and regulatory sanctioning of the Mantoverde Optimized (MV‑Optimized) expansion project.
• The project will increase sulphide concentrator throughput from 32,000 t/d to 45,000 t/d, adding ~20,000 t of copper and ~6,000 oz of gold per year and extending mine life to 25 years.
• Total estimated capital cost is $176 million; 2025 expansionary capex guidance raised by $60 million to $70 million (total 2025 consolidated capex $120 million).

Key Details

• Project Scope: Brownfield expansion of Mantoverde’s sulphide concentrator, debottlenecking existing plant components and adding new mining & processing equipment.
• Throughput Increase: From 32,000 t/d to 45,000 t/d (≈40% increase).
• Incremental Production: ~20,000 t of copper and ~6,000 oz of gold per annum; capital intensity ≈ $9,000 per tonne of incremental Cu‑eq.
• Construction Timeline: Approximately one year for sulphide concentrator expansion; ramp‑up beginning Q4 2026, sustained throughput expected early 2027. Oxide leach optimization to add another quarter, with higher cathode output from Q2 2027.
• Capital Cost Estimate: $176 million total (includes $20 million increase due to scope changes and modest inflation). Key cost drivers: cyclone feed pump upgrades, increased pump/sump/electrical capacity in flotation & tailings areas, additional dust‑suppression environmental measures. Contingency ≈ 8%.
• 2025 Capital Guidance: Expansionary capex for Mantoverde raised by $60 million to $70 million; total consolidated expansionary capex guidance for 2025 now $120 million. Remaining $106 million of MV‑Optimized spend slated for 2026.
• Engineering Progress: Detailed engineering ~40% complete, reducing project risk and improving certainty on timelines and cost estimates.
• Regulatory Approval: DIA environmental permit received in early July; all required board approvals obtained.
• Ownership Structure: Mantoverde is 70 % owned by Capstone Copper and 30 % by Mitsubishi Materials Corp.

Notable Quotes

“Sanctioning of our MV Optimized project represents a significant milestone on our continued path towards transformational growth… MV Optimized represents the next phase of our Mantoverde‑Santo Domingo district growth strategy, which aims to expand our world‑class mining district in Chile with significant copper production and very attractive unit costs.” – Cashel Meagher, President & CEO

All non‑material boilerplate, safe‑harbor language, and generic forward‑looking statements have been omitted.