Capstone Mining shares financial results for 3Q18
Published by Claire Cuddihy,
Global Mining Review,
Capstone Mining Corp. (Capstone) has reported its financial results for the three and nine months ended 30 September 2018. Cash flow from operating activities for the quarter was CAN$15.3 million or CAN$0.04 per share and CAN$76.9 million or CAN$0.20 per share year to date. Net income from continuing operations for the quarter was CAN$4.1 million or CAN$0.01 per share. Copper production for the quarter from continuing operations totalled 18 600 t (17 900 t of payable copper) at a C1 cash cost1 from continuing operations of CAN$1.85 per payable pound produced.
"Our mines performed as expected in the third quarter and we have seen an upward trend in production as we move through 2018," said Darren Pylot, President and CEO of Capstone.
"Year to date, we have generated CAN$76.9 million of cash flow from operating activities and net income from continuing operations of CAN$22.6 million."
"At Pinto Valley, we are starting to see results from the various optimisation activities underway through increasing plant availability," continued Pylot.
"Copper production at Cozamin for the quarter was higher than projected and quarterly zinc production was the highest in over five years. We remain on track to meet our full year consolidated copper production guidance from continuing operations."
Pinto Valley performed as expected in the third quarter, with planned higher grade feeding the mill as scheduled. In the third quarter, Cozamin's copper production was higher than projected and zinc production increased from the second quarter as planned. Production and cost guidance from continuing operations remain unchanged.
Management team updates
As part of the strengthening and technical advancement of the company's operations and projects, the corporate and Pinto Valley senior management teams have been strengthened with the recruitment of three key individuals.
Mike Wickersham has joined Pinto Valley as Mine General Manager. Wickersham is a Chemical Engineer with over 35 years of experience in the mining and mineral processing industry. Previously, Wickersham held a series of roles at Rio Tinto's Iron Ore Company of Canada (IOCC) as Vice President, Future Operations; Vice President, Northern Operations; and General Manager, Integration. Prior to that, he held mine and production management positions at Rio Tinto's Boron Operations and held technical and production roles across the production chain at Kennecott Utah Copper for 12 years.
In addition, Albert Garcia has been appointed as Vice President, Projects. Garcia is a Professional Engineer with leadership experience in engineering, construction, mining and executive project management in large capital-intensive projects in challenging locations. Previously, he was Senior Vice President and COO of Latin American Operations at AECOM and was the consultant Engineering Director on Capstone's Santo Domingo project in 2014. He has a PhD in Engineering from the University of Missouri-Columbia and a MS in Civil Engineering from San Jose State University. His immediate priority is to update the 2014 Santo Domingo Feasibility Study to reflect current economic and operational inputs.
As previously reported, Raman Randhawa will assume the CFO role effective 1 January 2019. Raman is a Canadian Chartered Professional Accountant (CPA, CA) with over 17 years of financial and leadership experience in the mining sector. Before joining Capstone, Raman spent 13 years at Goldcorp in a series of senior management roles and brings with him a unique mix of finance and operational experience in mining, finance, capital markets and business planning. Raman's transition is on track and James Slattery, Senior Vice-President and CFO, is expected to retire 31 December, 2018 as planned.
Outlook - 2018 production and cost guidance
Capstone's 2018 consolidated production guidance from continuing operations of 71 000 t (±5%) of copper, consolidated C1 cash cost1 guidance from continuing operations of CAN$1.75 - CAN$1.85 and all-in sustaining cost1 guidance from continuing operations of CAN$2.50 -CAN$2.60 per payable pound produced remains unchanged. Pinto Valley's costs are expected to be slightly higher than guided, offset by lower than guided costs at Cozamin.
Consolidated capital expenditure guidance of CAN$90.0 million and total exploration guidance of CAN$12.4 million remain unchanged.
Minto has been excluded from consolidated production and cost guidance.
Read the article online at: https://www.globalminingreview.com/finance-business/31102018/capstone-mining-shares-financial-results-for-3q18/
You might also like
Ballard and First Mode sign order for additional hydrogen fuel cell modules
Ballard Power Systems has agreed to supply First Mode with 60 hydrogen fuel cell modules to power hybrid hydrogen and battery ultra-class mining haul trucks.