This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Capstone Mining Reports 2012 Year End Financial Results

Stocks in this article: CS

VANCOUVER, British Columbia, March 13, 2013 /PRNewswire/ --

Operating Cash Flow of $114.4 million, Net Earnings of $59.6 million or $0.16 per share

(All amounts in US$ unless otherwise specified)

Capstone Mining Corp. ("Capstone") (TSX: CS) today announced its financial results for the year ended December 31, 2012. Net earnings for the year were $59.6 million and operating cash flow before changes in working capital (1) was $114.4 million. Net earnings for the fourth quarter were $18.5 million and operating cash flow before changes in working capital (1) was $24.7 million. Capstone ended the year with cash on hand of $499.9 million, a $200 million credit facility and no long-term debt. Copper production for the year at Capstone's two operating mines, Cozamin and Minto, totalled 82.8 million pounds in concentrates (79.6 million pounds of payable copper) at a total cash cost (1) of $1.50 per payable pound of copper produced.

Capstone will hold a conference call and webcast on Thursday, March 14, 2013 at 11:30 am Eastern time ( 8:30 am Pacific time) to discuss these results; call-in details are provided at the end of this release. This release should be read in conjunction with Capstone's consolidated financial statements and management's discussion and analysis ("MD&A") for the year ended December 31, 2012, which are available on Capstone's website at: http://capstonemining.com/s/Financial_Statements.asp and on SEDAR. An updated corporate presentation, including results to December 31, 2012, will also be available at http://capstonemining.com/s/Presentation.asp.

Overview

                                          Three Months Ended        Year Ended
                                                 December 31       December 31
                                            2012        2011   2012       2011
    Revenue ($ millions)                    72.5        61.5  305.5      327.8

    Copper in concentrates produced
    (million lbs)                           19.7        19.8   82.8       78.3

    Payable copper produced (million
    lbs)                                    18.8        19.0   79.6       75.5
    Total cash cost per payable
    pound of copper produced (1) ($)        1.70        1.50   1.50       1.45

    Copper sold (million lbs)               19.4        16.5   79.0       79.1
    Recognized copper price per
    pound ($)                               3.47        3.40   3.66       3.90

    Net earnings ($ millions)               18.5         4.9   59.6       60.4
    Net earnings per common share
    ($)                                     0.05        0.01   0.16       0.20

    Adjusted net earnings(1) ($
    millions)                               19.3         4.2   77.9       52.2
    Adjusted net earnings(1) per
    common share ($)                        0.05        0.01   0.20       0.18

    Operating cash flow before
    changes in working capital(1) ($
    millions)                               24.7        15.0  114.4      120.2
    Operating cash flow before
    changes in working capital per
    common share(1) ($)                     0.06        0.04   0.30       0.41

    Cash and cash equivalents ($
    millions)                                                 499.9      486.3

(1)The items marked with a "1" are alternative performance measures; please see "Alternative Performance Measures" at the end of this release.

"We had another solid year in 2012," said Darren Pylot, President and CEO of Capstone. "Our revenue, earnings and cash flow remained strong and we exceeded production and cost guidance for the year. Both operating mines are well-positioned to deliver on their targets in 2013."

"We are looking ahead to the growth of the company and in 2013 are reinvesting in our mines and development projects. With approximately ten year mine lives at our operating mines and additional exploration upside, Capstone is poised to deliver strong results well into the future. We plan to advance our development projects in 2013 by formally entering the permitting process at Kutcho and completing key milestones at Santo Domingo, including submitting the Environmental Impact Study and completing the Feasibility Study.  We will also continue activities on our greenfield exploration portfolio, with initial drilling campaigns at projects in Chile and Mexico," continued Mr. Pylot.

"With our strong balance sheet we have the financial resources in place to execute on our strategy. In addition, the ability to deploy our balance sheet on opportunistic acquisitions provides Capstone with the flexibility to grow our short term production profile and advance the company to the next level."

1 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs