Mantoverde Optimized And Santo Domingo Will Increase Copper Production
Analysts have raised their price target for Capstone Copper from $11.24 to $12.09. They cite improved revenue growth forecasts and stronger profit margin expectations as the reasons for this adjustment.
What's in the News
- Initial exploration results from Phase 1 drilling at Mantoverde exceeded grade expectations in multiple sectors. Key intercepts showed higher copper grades than predicted. This supports potential resource growth and reserve conversion (Key Developments).
- Sulphide copper production returned to full rates at the Mantoverde mine after recent disruptions caused by successive ball mill motor failures. Planned maintenance is still expected at the end of September (Key Developments).
- Capstone Copper faces an ongoing legal dispute over a 2% net smelter royalty at the Cozamin Mine in Mexico. There was a favorable judgment for Royalties Inc., but Capstone has appealed, delaying final resolution (Key Developments).
- The Mantoverde Optimized project was officially sanctioned for construction following Board approvals. The focus is on sustainability and technology deployment (Key Developments).
- Second quarter 2025 consolidated copper production rose to 57,416 tonnes from 40,937 tonnes a year earlier. This contributed to a strong first half with 111,212 tonnes produced (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen moderately from CA$11.24 to CA$12.09.
- The discount rate has fallen slightly from 7.02% to 6.86%.
- The revenue growth forecast has increased from 15.26% to 16.71%.
- The net profit margin estimate has improved from 13.90% to 15.08%.
- The future P/E ratio has dropped significantly from 25.42x to 17.31x.
Disclaimer
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