Capstone Copper (TSE: CS) reported record adjusted EBITDA for the eighth straight quarter in Q3 2026, driven by higher copper prices and contributions from its Chilean operations and the Cozamin mine in Mexico. The company produced 45,218 tonnes of copper at consolidated C1 cash costs of $2.95 per pound. President and CEO Cashel Meagher noted that unplanned maintenance and higher input costs affected production and expenses, leading to expectations of finishing 2026 at the low end of its production guidance and the high end of its cost guidance.
Capstone generated nearly $280 million in free cash flow from operations in the first nine months of the year. The company increased its capital-expenditure guidance by $40 million due to higher capitalized stripping costs linked to diesel prices and changes to the Mantoverde mine sequence. London Metal Exchange copper prices averaged $3.40 per pound in the quarter, up 6% from the previous quarter, while Capstone realized an average copper price of $3.61 per pound.
Adjusted EBITDA reached a record $358.3 million, up 1% from the prior quarter and 44% year-over-year. Adjusted net income attributable to shareholders was $93.8 million, or $0.12 per share. The company ended the quarter with over $1 billion in available liquidity and a net debt-to-EBITDA ratio of 0.4 times, expected to fall to about 0.2 times by year-end following the anticipated closing of its Cozamin sale.
Mantoverde produced 20,806 tonnes of copper in Q3, with combined C1 cash costs of $1.77 per payable pound. The operation’s concentrator averaged throughput of 33,000 tonnes per day despite a 15-day shutdown in September. Capstone began commissioning and ramping up the expanded concentrator in October, achieving a daily throughput rate above 53,000 tonnes. Pinto Valley produced 6,358 tonnes of copper at C1 cash costs of $6.11 per payable pound, undergoing a 16-day shutdown in September for maintenance.
Capstone announced the sale of Cozamin to Luca Mining for up to $385 million, expected to close in Q4. The company also acquired the San Pietro project in Chile’s Atacama region, adding 16,000 hectares to its land position. The sanctioning decision for the Santo Domingo project is now expected in Q1 2027, allowing for further engineering and evaluation of desalination and port bids.