UPDATE: Capstone Mining Down Another 2% As Reports 2012 Results; Shares Fell Nearly 3% Wednesday

Capstone Mining Corp. (CS.TO) announced adjusted net earnings for the fourth quarter were $19.3 million or $0.05 per common share versus $4.2 million or $0.01 per common share a year earlier. Operating cash flow before changes in working capital was $24.7 million for the quarter, up from $15 million.

Capstone ended the year with cash on hand of $499.9 million, a $200 million credit facility and no long-term debt. Copper production for the year at Capstone's two operating mines, Cozamin and Minto, totalled 82.8 million pounds in concentrates (79.6 million pounds of payable copper) at a total cash cost of $1.50 per payable pound of copper produced.

"We had another solid year in 2012," said Darren Pylot, President and CEO of Capstone. "Our revenue, earnings and cash flow remained strong and we exceeded production and cost guidance for the year. Both operating mines are well-positioned to deliver on their targets in 2013.

"We are looking ahead to the growth of the company and in 2013 are reinvesting in our mines and development projects. With approximately ten year mine lives at our operating mines and additional exploration upside, Capstone is poised to deliver strong results well into the future. We plan to advance our development projects in 2013 by formally entering the permitting process at Kutcho and completing key milestones at Santo Domingo, including submitting the Environmental Impact Study and completing the Feasibility Study. We will also continue activities on our greenfield exploration portfolio, with initial drilling campaigns at projects in Chile and Mexico.

"With our strong balance sheet we have the financial resources in place to execute on our strategy. In addition, the ability to deploy our balance sheet on opportunistic acquisitions provides Capstone with the flexibility to grow our short term production profile and advance the company to the next level."

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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