On Friday, BMO Capital Markets maintained its Outperform rating on Capstone Copper Corp (CS:CN) (OTC: CSFFF (OTC:CSFFF)) and increased its price target to Cdn$11.00, up from the previous Cdn$10.50. The adjustment follows the company's first-quarter financial results for 2024, which aligned with market expectations and showed a slight outperformance in adjusted EBITDA, matching closer to BMO's own estimates.
Capstone Copper reported its adjusted earnings per share (EPS) for Q1/24, which met the consensus figures, while its adjusted EBITDA slightly exceeded forecasts. The company's production volumes and cash costs were reported to be consistent with predictions. Furthermore, Capstone Copper reaffirmed its production and cost guidance for the year 2024, including the forecast for the first and second halves of the year.
The company's major project, the MVDP, is reportedly on schedule, with the first saleable concentrate expected to be produced in the second quarter of 2024. Additionally, Capstone Copper's capital budget remains unchanged, which indicates a steady progress in its financial planning and project development.
BMO Capital Markets also noted that forthcoming studies are anticipated to reveal new opportunities and growth prospects for Capstone Copper, particularly in Chile. After incorporating the latest quarterly results into their evaluation, BMO Capital decided to raise the target price to reflect the company's steady performance and potential for future growth.
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