Business
Capstone Outlines Capital Investment Plans to Achieve 20% Production Growth by 2021
VANCOUVER, British Columbia--(BUSINESS WIRE)--Capstone Mining Corp. (“Capstone” or the “Company”) (TSX:CS) provides 2020 production, cost and capital guidance.
About this update from Capstone Copper Corp.
[{"type":"text","content":"VANCOUVER, British Columbia--(BUSINESS WIRE)--Capstone Mining Corp. (“Capstone” or the “Company”) (TSX:CS) provides 2020 production, cost and capital guidance. Capstone’s 2019 actual production was above the mid-point range of 145 to 160 million pounds of copper and actual costs were below the bottom end of the guidance range of $1.80 to $2.00 per pound payable copper. The Company will further expand on 2019 results when it releases its 2019 fourth quarter results on Tuesday, February 11, 2020 after market close, followed by an investor webcast and conference call on Wednesday, February 12, 2020 at 11:30 am Eastern Time. 2020 PRODUCTION, COST AND CAPITAL GUIDANCE In 2020, Capstone expects to produce between 140 and 155 million pounds of copper at C1 cash costs1 of between $1.85 and $2.00 per pound payable copper produced. “Capstone has redefined itself as we enter this new decade. Our business is supported by an expansion at our high grade and high margin Cozamin mine, while Pinto Valley is positioning to amplify best in class leverage to copper,” said Darren Pylot, President and CEO. “We are making small, high return and quick payback investments to ensure both operations are optimized to maximize cash flow in this improving copper market. We have made substantial and sustainable reductions to our cost base, achieving our goal of ~$30 million per year. This coupled with a strong balance sheet gives us confidence we can invest in our organic growth opportunities without hesitation. I’m proud to say that Capstone is positioned for 20% production growth with a 10% decrease in costs by 2021 and beyond.” Mr. Pylot continued, “For 2020, Capstone is anticipating a similar year as 2019, with a slight decrease at Pinto Valley (~5 million pounds lower) to account for the installation of new secondary crushers. The less than one-year payback is expected to deliver higher throughput, lower costs and improved recovery. At Cozamin, the one-way ramp project is proceeding on schedule, allowing for confidence in the expected increased annual production rates of 50 to 55 million pounds of copper and 1.5 million ounces of silver for 2021 and beyond. The capital investments included in our expansionary spend for 2020 at Pinto Valley and Cozamin will increase throughput rates enabling growth to a sustainable run rate of approximately 180 million po...