Capstone Copper Reports Third Quarter 2026 Results

Capstone Copper Corp. (CS) reported third-quarter 2026 revenue of $712.0 million, adjusted EBITDA of $358.3 million, net income attributable to shareholders of $98.5 million, and adjusted net income of $93.8 million. Management highlighted record adjusted EBITDA for the eighth consecutive quarter, a 19% year-over-year increase in revenue, and the completion of the Mantoverde Optimized sulphide concentrator tie-in.

Despite the top-line growth, consolidated copper production fell 18% year-over-year to 45,218 tonnes. Consolidated C1 cash costs rose 22% to $2.95/lb. The company attributed the cost pressure to lower volumes, higher diesel and sulphuric acid prices, Pinto Valley maintenance downtime, lower grades at Mantos Blancos, and the deliberate reduction in Mantoverde cathode production.

The release also disclosed two portfolio moves: the completion of the San Pietro acquisition for $25 million in shares and a definitive agreement to sell Cozamin to Luca Mining for up to $385 million.

Guidance for 2026 was adjusted to the weaker end of previous ranges. Production is now expected at the low end of 200,000–230,000 tonnes, while C1 costs are projected at the high end of $2.45–$2.75/lb. Total capital expenditure was raised by $40 million to $830 million.

Capstone Copper Corp. (CS) reported a weak operating outcome that falls short of previously reaffirmed guidance, with production 18% lower year-over-year and consolidated C1 costs exceeding the top of the annual range in the third quarter. The company has revised its full-year guidance to point toward the low end of production and the high end of costs.

Consolidated C1 for the third quarter was $2.95/lb, representing a $0.20/lb or 7.3% increase above the $2.75/lb full-year ceiling. Year-to-date C1 stands at $2.81/lb, already $0.06/lb or 2.2% above the full-year ceiling. Achieving the $2.75/lb target for the year requires fourth-quarter C1 to drop to near $2.59/lb on approximately 55,000 tonnes, a significant improvement from the third quarter.

The volume requirements for the final quarter are equally demanding. Capstone must produce 55,061 tonnes to hit the low end of its 200,000-tonne annual target, which is 21.8% above third-quarter output and 6.4% above second-quarter production. This ramp-up presents challenges for a portfolio where Pinto Valley is still repairing its primary crusher and Mantoverde is only beginning its 45,000 tpd ramp.

Adjusted EBITDA reached a record level driven by price increases rather than operational performance. Realized copper prices rose to $6.61/lb from $4.49/lb, an increase of 47.2%, which offset lower volumes and higher unit costs. Revenue increased 19% year-over-year but fell 3.7% quarter-over-quarter to $712.0 million.

Capital expenditure guidance was increased by $40 million to $830 million. Despite the record adjusted EBITDA, third-quarter total free cash flow was negative $26.3 million, highlighting weak cash conversion for a company funding a large growth pipeline.

The market had already positioned for weakness, with the stock closing at C$13.25 on the date of the second-quarter 2026 release and falling to C$11.77 on October 29, a decline of 11.2%. The stock is down 27.3% from its September 8 high of C$16.20. The latest release confirms these negative expectations rather than reversing them.

Capstone Copper Corp. (CS) is a producing copper miner with operations in Chile, the United States, and Mexico. Its producing assets include Mantoverde in Chile, which is 70% owned; Mantos Blancos in Chile, which is 100% owned; Pinto Valley in Arizona, which is 100% owned; and Cozamin in Mexico, which is 100% owned but pending sale to Luca Mining.

The company’s growth assets include Santo Domingo in Chile, which is 75% owned after Orion’s 25% interest, as well as Sierra Norte in Chile, San Pietro in Chile, Mantoverde Phase II, Mantos Blancos Phase II, and the MVPA pyrite project. The portfolio is copper-focused with gold, silver, iron, and cobalt by-product or optionality. Mantoverde serves as the flagship sulphide growth asset, Pinto Valley provides US copper exposure, and Mantos Blancos operates as the Chilean sulphide and cathode operation. Cozamin is a high-grade but small copper-silver-zinc-lead mine being divested.