Capstone Mining recorded a net loss of US$197.4 million for 2016, an improvement on the net loss of US$251.5 million it reported for 2015. This was caused by a loss on commodity derivatives and the disposal of equipment and mineral property interests among other factors. Revenue additionally increased 26 percent, to US$529.4 million in 2016 from US$420.5 million in 2015.
The company “foresees a short-term downside protection with significant leverage to rising copper prices,” as stated in its quarterly presentation.
The company has an international portfolio and operates three North American mines in Arizona, Yukon and Zacatecas. According to the Capstone Mining all three operating mines created positive net earnings in 2016 and it plans on using its free cash flow to reduce drawn debt. It has a target of reducing debt to between US$100-150 million over the next few years.
Capstone Mining has headquarters in British Columbia, Canada.