Capstone Mining (CS.TO) seems to be digesting its huge Pinto Valley acquisition well as it keeps on hitting its production targets. In the first quarter of this year, Capstone produced 60.8 million pounds of copper of which 38.1 million pounds were produced at the company’s Pinto Valley project in Arizona, USA which the company acquired from BHP Billiton (NYSE:BHP).
The outlook for the entire year 2014 remains unchanged at 225 million pounds of copper (with an accuracy of +/- 5%) at a C1 cash cost of $1.9-2/lbs. The cash costs are relatively high so it will be interesting to have a look at the financial statements to see the operating margin and free cash flow. Capstone expects to release its Q1 financial results on Wednesday.
Disclosure: The author holds a long position in Capstone Mining. Please see our disclaimer for current positions.