Capstone Mining plans to increase its copper output in 2021 to 175-190mn lb (79,378-86,182mt) compared to 156.9mn lb produced in 2020.
The Canadian miner indicated in its annual earnings report on Feb 24 that the 2020 production had exceeded its guidance of 140-155mn lb. Copper production in Q4 2020 was 25pc higher than Q4 2019.
The company’s cash costs are projected lower at $1.75-1.90/lb compared to the 2020 guidance of $1.85-2/lb. Actual cash costs last year were reported at $1.84/lb, slightly below the year’s projections.
Earlier this year, Capstone updated its Life of Mine Plan for the Cozamin mine, where copper production increased significantly in Q4. Under this plan, it expects the mine to produce around 58.8mn lb of red metal per year from 2021 to 2027. The company has also increased the estimated mineral reserve at the mine by 39pc from its 2020 estimates to 14.1mn mt.
Capstone stated that its Pinto Valley and Cozamin mines recorded significantly higher production in the last quarter of 2020. The rise in output in both mines drove the company’s cash costs 15pc lower.
In 2020, Capstone’s consolidated revenue grew to $453.8mn from 418.7mn in the previous year. Revenue in Q4 2020 also increased to $148.1mn from 113.6mn during the same prior-year quarter. The company also turned profitable last year, reporting a net income of $12.4mn compared to a loss of $16.2mn in 2019. Net income in Q4 2020 was reported at $27.6mn, up from $13.4mn in Q4 2019.