|By PR Newswire||
|August 7, 2014 07:21 PM EDT||
Operating cash flow before changes in working capital of $56.5 million
Net earnings of $16.6 million or $0.04 per share
(All amounts in US$ unless otherwise specified)
VANCOUVER, Aug. 7, 2014 /PRNewswire/ - Capstone Mining Corp. ("Capstone") (TSX: CS) today announced its financial results for the three and six months ended June 30, 2014. Net earnings for the quarter were $16.6 million and operating cash flow before changes in working capital(1) was a record $56.5 million. Copper production for the quarter at Capstone's three operating mines, Pinto Valley, Cozamin and Minto, totalled 27,738 tonnes of copper in concentrates and cathode (26,785 tonnes of payable copper) at a C1 cash cost(1) of $2.03 per payable pound of copper produced.
Capstone will hold a conference call and webcast on Friday, August 8, 2014 at 11:30 am Eastern time (8:30 am Pacific time) to discuss these results; call-in details are provided at the end of this release. This release should be read in conjunction with Capstone's unaudited condensed interim consolidated financial statements and management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2014, which are available on Capstone's website at: http://capstonemining.com/s/financial-statements.asp and on SEDAR. An updated corporate presentation, including results to June 30, 2014, will also be available at http://capstonemining.com/s/presentations.asp.
NOTE: The transaction to acquire the Pinto Valley Mine closed on October 11, 2013 and therefore its results of operations are included in the Company's reported results from that date forward. As such, there are no comparable Q2 2013 or 2013 YTD figures for the Pinto Valley Mine.
|Q2 2014||Q2 2013||2014 YTD||2013 YTD|
|Revenue ($ millions)||171.7||58.3||332.5||115.9|
|Copper in concentrates produced (tonnes)||27,212||8,765||54,235||17,195|
|Copper cathode produced (tonnes)||526||-||1,147||-|
|Payable copper produced (tonnes)||26,785||8,419||53,444||16,530|
|C1 cash cost per payable pound of copper produced(1) ($)||2.03||1.70||1.96||1.71|
|Copper sold (tonnes)||24,563||7,783||51,164||14,632|
|Realized copper price per pound sold ($)||3.36||3.16||3.17||3.33|
|Net earnings ($ millions)||16.6||9.2||12.2||16.2|
|Net earnings per common share ($)||0.04||0.02||0.03||0.04|
|Adjusted EBITDA(1) ($ millions)||64.8||28.8||121.2||52.8|
|Adjusted EBITDA(1) per common share ($)||0.17||0.08||0.32||0.14|
Operating cash flow before changes in working
capital(1) ($ millions)
Operating cash flow before changes in working capital
per common share(1) ($)
|Net debt (cash)(1) ($ millions)||181.0||(456.3)||181.0||(456.3)|
"The second quarter shows a significant increase in cash flow driven by higher copper sales, primarily from Pinto Valley, coupled with consistent production from Cozamin and Minto," said Darren Pylot, President and CEO of Capstone. "Year-to-date Adjusted EBITDA(1) more than doubled year over year, demonstrating Capstone's substantial growth over the last 12 months."
Financial and Production Highlights for the Three Months Ended June 30, 2014
- Net earnings of $16.6 million or $0.04 per common share which included:
- Earnings from mining operations of $45.5 million,
- Realized copper price of $3.36 per pound.
- Production costs included a $1.8 million non-cash charge related to the write-down of inventory at Minto,
- $15.2 million tax expense.
- Adjusted EBITDA(1) of $64.8 million or $0.17 per common share after making adjustments for certain non-cash and other items.
- Operating cash flow before changes in working capital(1) of $56.5 million or $0.15 per common share.
- Working capital increased to $162.8 million at June 30, 2014 (which included $128.5 million of cash and cash equivalents) from $137.4 million at December 31, 2013.
- Production of 26,785 tonnes of payable copper at a C1 cash cost(1) of $2.03 per pound of payable copper produced.
- Revenue of $171.7 million generated primarily from the sale of 24,563 tonnes of payable copper.
Operational Highlights for the Three and Six Months Ended June 30, 2014
Pinto Valley Mine:
- Produced 16,892 tonnes of copper in concentrates and 526 tonnes of copper cathode during Q2 2014. The C1 cash cost(1) was $2.13 per pound of payable copper produced.
- Produced 33,593 tonnes of copper in concentrates and 1,147 tonnes of copper cathode during 2014 YTD at a C1 cash cost(1) of $2.10 per pound of payable copper produced.
- Pinto Valley's C1 cash cost(1) was negatively impacted by the loss of production resulting from a failure of one of six ball mills in May 2014 and its associated downtime for 25 days. The daily average throughput increased to 49,400 tonnes per day in June for a Q2 2014 average of 45,700 tpd versus a targeted rate of 50,000 tpd. Subsequent to quarter end, July throughput averaged 49,300 tpd.
- Work is ongoing related to the implementation of improvements identified by the Pinto Valley Phase 2 prefeasibility study ("PV2 PFS"), with the project execution plan in place, orders for the majority of the mine equipment placed and detailed engineering underway.
- Capstone believes there is potential to extend the mine life beyond the PV2 reserve life of 2026 if Mineral Resources not currently included in the PV2 life of mine plan can be successfully converted into Mineral Reserves. The Pinto Valley Phase 3 ("PV3") study was started in Q2 2014, and is composed of two phases. The first phase of PV3 - planned for completion by year end 2014 - will include high level mine plans, tailings storage and flow sheet analysis for various throughput expansion cases.
- Produced 5,191 tonnes of copper in concentrates during Q2 2014 at a C1 cash cost(1) of $1.23 per pound of payable copper produced.
- Produced 10,292 tonnes of copper in concentrates during 2014 YTD at a C1 cash cost(1) of $1.23 per pound of payable copper produced.
- Exploration drilling from surface to test structural splays off of the main Mala Noche vein system at Cozamin commenced in Q2 2014. Many of these brownfield targets are on separate structures from the one hosting Cozamin's reserves and resources.
- On August 5, 2014 Capstone filed a technical report updating Mineral Resource and Mineral Reserve estimates for Cozamin. The net impact was a reduction of approximately $7 million in net asset value.
- Produced 5,129 tonnes of copper in concentrates during Q2 2014 at a C1 cash cost(1) of $2.46 per pound of payable copper produced.
- Produced 10,350 tonnes of copper in concentrates during 2014 YTD at a C1 cash cost(1) of $2.20 per pound of payable copper produced.
Santo Domingo Project:
- Released the Feasibility Study in June 2014 (prepared on a 100% basis; Capstone owns 70%), which had an after-tax net present value of $797 million (8% discount rate) and an after-tax internal rate of return of 17.9% with a payback period of 4.2 years.
- Exploration work continued during Q2 2014 at Project Providencia in Region III, Chile. Capstone completed the airborne magnetic, and versatile time domain electromagnetic and radiometric surveys and is now preparing for a drill program, forecasted to start in late 2014.
Capstone's 2014 guidance for 102,000 tonnes ±5% of copper in concentrates, at a C1 cash cost(1) of $1.90 to $2.00 per pound of payable copper, net of by-product credits and selling costs, remains unchanged.
Conference Call and Webcast Details
|Date:||Friday, August 8, 2014|
|Time:||11:30 am Eastern Time (8:30 am Pacific Time)|
|Dial in:||North America: 1-888-390-0546, International: +416-764-8688|
|Replay:||North America: 1-888-390-0541, International: +416-764-8677|
The conference call replay will be available until August 22, 2014. The conference call audio and transcript will be available on Capstone's website within approximately 24 hours of the call at http://capstonemining.com/s/conference-calls.asp.
About Capstone Mining Corp.
Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. We are committed to the responsible development of our assets and the environments in which we operate. Our three producing mines are the Pinto Valley copper mine located in Arizona, US, the Cozamin copper-silver mine in Zacatecas State, Mexico and the Minto copper mine in Yukon, Canada. In addition, Capstone has two copper development projects; the large scale 70% owned copper-iron Santo Domingo project in Region III, Chile, in partnership with Korea Resources Corporation, and the 100% owned copper-zinc Kutcho project in British Columbia, Canada, as well as exploration properties in Chile. Using our cash flow and strong balance sheet as a platform, Capstone's strategy is to continue to grow with mineral resource and reserve expansions and exploration, and through acquisitions in politically stable, mining-friendly regions. We will pace our growth with our financial capacity, ensuring we retain, as a priority, sufficient financial flexibility to meet the requirements of our existing operations and our committed development projects, while maintaining an adequate cushion to deal with market volatility and operating risks inherent in the mining industry. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange (TSX). Further information is available at www.capstonemining.com.
Cautionary Note Regarding Forward-Looking Information
This document may contain "forward-looking information" within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements"). These forward-looking statements are made as of the date of this document and Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation.
Forward-looking statements relate to future events or future performance and reflect Company management's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "outlook", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. In this document, certain forward-looking statements are identified by words including "may", "future", "expected", "intends" and "estimates". By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, dependence on key personnel, labour pool constraints, labour disputes; availability of infrastructure required for the development of mining projects; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; and other risks of the mining industry as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. The Company provides no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
National Instrument 43-101 Compliance
Unless otherwise indicated, Capstone has prepared the technical information in this news release ("Technical Information") based on information contained in the technical reports, news releases and MD&A's (collectively the "Disclosure Documents") available under Capstone Mining Corp.'s company profile on SEDAR at www.sedar.com. Each Disclosure Document was prepared by, or under the supervision of, a qualified person (a "Qualified Person") as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). Readers are encouraged to review the full text of the Disclosure Documents which qualifies the Technical Information. Readers are advised that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Disclosure Documents are each intended to be read as a whole, and sections should not be read or relied upon out of context. The Technical Information is subject to the assumptions and qualifications contained in the Disclosure Documents.
The technical information in this news release ("Technical Information") was prepared by, or under the supervision of, a qualified person (a "Qualified Person") as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101"). The disclosure of the Technical Information contained in this news release has been reviewed and approved by Brad Skeeles, P. Eng., Vice President of North American Operations, Brad Mercer, P. Geol., Vice President, Exploration (Technical Information related to mineral exploration activities), and Gregg Bush, P. Eng., Senior Vice President and Chief Operating Officer, all Qualified Persons under NI 43-101.
Alternative Performance Measures
The items marked with a "(1)" are alternative performance measures and readers should refer to Alternative Performance Measures in the Company's Interim Management's Discussion and Analysis for the three and six months ended June 30, 2014 as filed on SEDAR and as available on the Company's website for further details.
Cautionary Note to United States Investors
This news release contains disclosure that has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. Without limiting the foregoing, this news release may refer to technical reports that use the terms "indicated" and "inferred" resources. U.S. investors are cautioned that, while such terms are recognized and required by Canadian securities laws, the SEC does not recognize them. Under U.S. standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. U.S. investors are cautioned not to assume that all or any part of indicated resources will ever be converted into reserves. U.S. investors should also understand that "inferred resources" have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of "inferred resources" will ever be upgraded to a higher category. Therefore, U.S. investors are also cautioned not to assume that all or any part of inferred resources exist, or that they can be mined legally or economically. Accordingly, information concerning descriptions of mineralization and resources contained in this news release may not be comparable to information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC.
SOURCE Capstone Mining Corp.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
Dec. 28, 2014 12:30 PM EST Reads: 1,980
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 28, 2014 12:00 PM EST Reads: 2,909
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Dec. 28, 2014 12:00 PM EST Reads: 1,829
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
Dec. 28, 2014 12:00 PM EST Reads: 1,851
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from ha...
Dec. 28, 2014 12:00 PM EST Reads: 2,415
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Dec. 28, 2014 12:00 PM EST Reads: 7,195
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective ...
Dec. 28, 2014 11:00 AM EST Reads: 2,042
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happe...
Dec. 28, 2014 11:00 AM EST Reads: 2,150
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
Dec. 28, 2014 11:00 AM EST Reads: 2,202
"SAP had made a big transition into the cloud as we believe it has significant value for our customers, drives innovation and is easy to consume. When you look at the SAP portfolio, SAP HANA is the underlying platform and it powers all of our platforms and all of our analytics," explained Thorsten Leiduck, VP ISVs & Digital Commerce at SAP, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 28, 2014 11:00 AM EST Reads: 2,011
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Dec. 28, 2014 11:00 AM EST Reads: 2,208
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and asse...
Dec. 28, 2014 10:00 AM EST Reads: 2,503
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
Dec. 28, 2014 10:00 AM EST Reads: 1,935
What do a firewall and a fortress have in common? They are no longer strong enough to protect the valuables housed inside. Like the walls of an old fortress, the cracks in the firewall are allowing the bad guys to slip in - unannounced and unnoticed. By the time these thieves get in, the damage is already done and the network is already compromised. Intellectual property is easily slipped out the back door leaving no trace of forced entry. If we want to reign in on these cybercriminals, it's hig...
Dec. 28, 2014 09:45 AM EST Reads: 1,938
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cloudian, Inc., is a Foster City, California - based software company specializing in cloud storage software. The main product is Cloudian, an Amazon S3-compliant cloud object storage platform, the bedrock of cloud computing systems, that enables c...
Dec. 28, 2014 09:00 AM EST Reads: 1,404