Q3/14 Operating Results
The Q3/14 financial results are to be released after-market on Wednesday October 29, 2014, with the conference call the following day at 11:30 AM EST.
In comparison to the latest results released by Daniel Earle, Capstone mining reported Q3/14 production of 26.2 kt of copper (concentrate plus cathode), in line with his forecast of 26.0 kt. At Pinto Valley, throughput of 48.9 ktpd was in line with his forecast of 49.0 ktpd, while grades and recoveries of 0.39% Cu and 90.3% were in line with his expectations of 0.39% Cu and 89.1%, respectively. Guidance for 2014 remains unchanged at approximately 102 kt of copper at net cash costs of US$1.90-US$2.00 per payable pound Cu.
Guidance is being kept at Neutral.
At Pinto Valley, copper grades decreased during the quarter to 0.39% Cu from 0.46% Cu in Q2/14, while recoveries of 90.3% increased slightly from 89.1% in the prior quarter. Throughput increased to 48.9 ktpd from 45.7 ktpd in Q2/14, in line with Daniel Earle's expectations 49.0 ktpd. Daniel Earle expected incremental improvement in throughput to come largely from improving reliability in H2/14.
At Cozamin, recoveries were relatively flat 93.0% versus 92.7% the prior quarter; throughput and grades were 3.3 ktpd and 1.76% Cu respectively, lower than Daniel Earle's estimates of 3.5 ktpd and 1.85% Cu. The lower grades were reportedly due to the installation of additional ground support impacting the release of higher grade mining areas. Copper grades improved in September, slightly later than the company's 2014 mine plan, which expected grade returning to 1.85% Cu in H2/14.
At Minto, throughput and grade of 3.9 ktpd and 1.41% Cu respectively were in line with Daniel Earle's estimates of 4.0ktpd and 1.40% Cu; while recoveries of 93.8% was in line with the previous quarter of 94.2%. Daniel Earle noted that copper grades continue to fall (copper head grades in Q3/14 were 1.41% Cu, down from 1.45% Cu in Q2/14 and 1.59% Cu in Q1/14) as more stockpile than originally planned continued to be milled to maximize throughput; the company indicated processing in the fourth quarter will be from stockpile.
Some things to look forward to:
Permit for the operation of the port (Maritime Concession) – Q4/14E
Power agreement – H2/14
Approval of EIA (stage-gate)– Q1/15E
Engineering to advance to 60% to 65% (stage-gate) – Q3/15E
Engineering complete – Q1/16E
Production at Santo Domingo– H1/18E
Good luck to all!
