Update: Capstone Mining Down 4% Early on Smaller Q2 Profit
Capstone Mining Corp (CS.TO) is off about 4% this morning after last night reporting net earnings of $15.5 million, or 7 cents per share, on $78.9 million in second-quarer revenues. The miner reported a $44.7 million profit during the same quarter last year.
Capstone also said a new feasibility study of its Santo Domingo iron oxide, copper and gold project in Chile forecasts 255 million pounds of copper production per year during its first five years of operations, easing to 144 million pounds per year as the mine matures. Annual production also should include about 4.1 million tons of iron concentrate and 15,000 ounces of gold. Total capital costs are projected to be $1.24 billion, including a 14% contigency, with Santo Domingo expected to pay for itself within three years. Capstone has a 70 percent stake in the project with Korea Resources Corp. owning the rest.
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