Capstone Copper Corp.

Q2 consolidated copper production was 51.1 thousand tonnes, versus 51.8 thousand tonnes cited by the CEO on a consolidated basis, with C1 cash costs of $2.82 per pound. LME copper averaged $6.50/lb, up 4.0% versus $5.83/lb in Q1 2026, and realized copper price was $6.22/lb. Gross margin was $3.40/lb, or 55.0%. Adjusted EBITDA was a record $354 million, up 8.0% quarter over quarter and 64.0% year over year. Adjusted net income attributable to shareholders was a record $97.6 million, or $0.13/share. Net debt ended the quarter at $675 million, down $63 million from Q1 and over $100 million year to date; liquidity was greater than $1 billion, including $367 million cash and $715 million of undrawn RCF capacity. Management reaffirmed 2026 consolidated production, cost, and CapEx guidance. In the second half, they expect stronger production mainly from higher sulfide grades and throughput at Mantoverde, while the Mantoverde Optimize project remains on schedule and on budget and is expected to sustain 45 thousand tonnes per day starting in early 2027.

Cashel Meagher framed 2026 as a year of operational stability and cash generation between growth phases, and said Q2 delivered that outcome. He emphasized record EBITDA, the strength of the diversified asset base, and the company’s focus on using internally generated cash flow to delever while funding high-return growth projects. His tone was constructive and confident, especially around Mantoverde Optimize, Santo Domingo, and the broader brownfield pipeline, which he described as executable and accretive rather than growth for growth’s sake.

Ramanpreet Randhawa focused on the quarter’s pricing and margin leverage, noting LME copper at $6.50/lb and realized copper at $6.22/lb against C1 cash costs of $2.82/lb. He highlighted record adjusted EBITDA of $354 million, record adjusted net income of $97.6 million, net debt of $675 million, and liquidity above $1 billion, including $367 million of cash and $715 million of undrawn credit. He also said the company reaffirmed 2026 cost guidance, citing higher second-half sulfide production, fixed sulfuric acid coverage at about $190/ton for the year, and diesel hedges on 40% of Chilean exposure and 50% of Pinto Valley exposure.

Analysts pressed management on Mantoverde’s pyrite project, whether cathode/heap leach output would be curtailed through 2027, and whether more than 5 thousand tonnes could be shifted from oxides to sulfides. Management said the flexibility is mainly a mine-plan and economics decision: higher-carbonate oxide material can be diverted to sulfides if acid economics are unattractive, and the current guidance already assumes a conservative ramp. Questions also focused on Santo Domingo timing and financing; management said the project is moving toward a Q4 sanctioning decision, with 60% detailed engineering complete and CapEx certainty expected in parallel with FID. Pinto Valley was another concern, with management acknowledging the asset has been more challenging than expected but saying September shutdown work should improve reliability and get the mine closer to 50 thousand tonnes per day, with nameplate in the mid-50s over time. On Cozamin, management said divestiture is a portfolio-rationalization discussion, not a decision, and that any sale would depend on value and capital allocation priorities.