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."