BMO Capital Markets has sustained its Outperform rating on Capstone Copper Corp (CS: CN) (OTC: CSFFF (OTC:CSFFF)) with a consistent price target of Cdn$12.00.
The affirmation follows the company's announcement of the results from the Mantoverde optimized study, which proposes an expansion of the mine's throughput from 32,000 tonnes per day (ktpd) to 45,000 ktpd.
The study also provided a revised perspective on the mine's operational costs and capital expenditures. BMO Capital sees further potential for Capstone to enhance the economic prospects of the Mantoverde mine and the surrounding district.
The potential could be realized through various means, including further expansion, exploration efforts, or the reclassification of resources currently considered waste.
In addition to the operational updates, Capstone Copper also announced upcoming changes to its executive leadership. The current President and Chief Operating Officer, Cashel Meagher, is set to step into the role of Chief Executive Officer. Concurrently, the present CEO, John MacKenzie, will transition to the position of Non-Executive Chair.
The leadership changes are part of Capstone's succession planning and are expected to support the company's growth and development strategy moving forward.
In other recent news, Capstone Copper Corp has been the subject of favorable financial analysis from several firms. Raymond James has given Capstone Copper an 'Outperform' rating, citing the company's promising outlook based on its projected production growth and declining operating costs through 2024 and 2025.
This optimistic trajectory is largely due to the progress of the Mantoverde development project (MVDP), set to ramp up in the second half of 2024.
Furthermore, Raymond James anticipates reduced capital expenditure spending leading up to the sanctioning of the Santo Domingo project, currently projected for 2026. These factors suggest that Capstone may enter a phase of cash harvesting through 2026, potentially allowing for balance sheet deleveraging and the ability to explore strategic opportunities.
In addition to Raymond James, both Macquarie and BMO Capital Markets have also delivered positive financial analysis of Capstone Copper. Macquarie initiated coverage with an 'Outperform' rating, citing robust demand for copper and the company's potential as a pure-play copper investment.
BMO Capital Markets maintained its 'Outperform' rating and raised its price target following the company's Q1 2024 financial results, which met market expectations and showed a slight outperformance in adjusted EBITDA.
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