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Capstone Reports Record Operating Profit of $15.9 Million for the First Quarter

http://biz.yahoo.com/iw/080429/0391838.html?printer=1

Tuesday April 29, 6:45 pm ET


VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Apr 29, 2008 -- Capstone Mining Corp. ("Capstone") (Toronto:CS.TO - News) announces its financial results for the first quarter of 2008 including production and sales for the Cozamin mine located in Zacatecas State, Mexico. All dollar amounts are stated in U.S. dollars unless otherwise indicated.




Overview and Highlights

- Record operating profit of $15.9 million or $0.20 per share

- Record revenue of $29.5 million. The average realized price for sales of copper, zinc, lead and silver in the quarter was $3.59/lb, $1.21/lb, $1.33/lb and $8.40/oz respectively.

- Earnings of $15.7 million or $0.19 per share before recording an unrealized loss on derivative instrument of $12.4 million (a non-cash item) related to our forward copper sales and before current and future income taxes of $2.8 million. Forward copper sales average price through 2011 is $3.18. Earnings after the above were $0.5 million or $0.01 per share.

- Copper production during the quarter was 6.0 million lbs compared with 2.8 million lbs for the three months ended February 28, 2007.

- At March 31, 2008, Capstone had working capital of $56 million and no bank debt. In addition, the fair market value of Capstone's share ownership of Silverstone Resources Corp. is approximately $65 million, which is not included in working capital.

- Copper cash costs for the quarter were $0.98/lb of copper (net of by-product credits and including smelter, refining, transportation and all site costs).

- Total costs (the aggregate of cash costs, royalty, depletion and amortization and accretion) for the quarter were $1.18/lb.

- Capstone continued its share buyback plan and purchased an additional 219,900 common shares on the open market at an average price of CDN$2.78. The shares have been returned to treasury and cancelled under its normal course issuer bid.