-Produzent in Mexiko; klein aber Oho
-machen gut Geld jedes Quartal
-haben zum 01.08.2007 eine Verdopperlung ihrer Produktion/Tag geschafft
Cash: ca. 35 Mio - weiter steigend
Invest: ca.65 Mio (halten Aktien an Silverstone; 19,35 Mio - ca. 22%)
MK: ca. 120 Mio Can$ !!!!! dagegen stehen ca. 100 Mio Can$ Cash und Beteiligungen!!!!!!
im September kommt eine überarbeitete Ressourcenschätzung!
Schöner Wert, gute Zahlen muss ich mich mal genau einlesen!!gemäß § 34 WpHG darf der Autor zu jederzeit Short- oder Long-Positionen in der/den behandelte(n) Aktie(n) halten.
wow, das geht ja gut los..........
neben dem erweiterten NI43-101-Estimate, der verdoppelten Produktion und dem netten Cashpolster
kommt noch folgendes hinzu: das Managment hat wohl ein Aktienrückkaufprogramm gestartet
wußte garnicht das Herr Brunner von SCI Capstone auf dem Kicker hat:
Zitat aus einer Mail von letzter Woche:
"....Wer nun wieder dabei sein möchte kann entsprechend unserer Depots anlegen, weitere Werte sind Equinox, Capstone oder Constellation am Kupfersektor, bei Nickel werden unsere abgestürzten alten Favoriten wieder geweckt mit: Brilliant, Crowflight, FNX, Mincor, Sally, Mirabela fällt die Auswahl schwer. Neu nehmen wir URSA Major auf die seit kuzem im TSX vertreten sind. Bei Blei wird Ivernia langsam interessant, nachdem sie wieder Kurse auf vernünftigem Niveau bilden, die abgestürzte Teck kann auch wieder gekauft werden auch wenn das Potential geringer ist so ist Teck doch ein Standardwert am Rohstoffsektor obendrein mit Kohle. Bei Gold hat Ramelius eine ältere Empfehlung wieder ein Rekordbohrloch abgeteuft und zählt am Goldsektor zu meinen Favoriten! Zink sollte mit Blue Note, Breakwater, Hudbay, Quadra und Sabina gut abgedeckt sein.
Glückauf für heute und viel Erfolg bis zum nächsten Mal !
http://www.marketwire.com/mw/release.do?id=779691
Oct 11, 2007 09:02 ET Capstone Declares Expanded Commercial Production at Cozamin and Highlights Q4 Production and Sales
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 11, 2007) - Capstone Mining Corp. ("Capstone")(TSX:CS) is pleased to report that it has completed the expansion and commissioning of the 120% increase in production at its Cozamin mine located in Zacatecas State, Mexico.
Commissioning of the mine expansion from the initial 350,000 tonnes per year (1,000 tonnes per day) to 750,000 tonnes per year (2,200 tonnes per day) began in late May, with start up commencing in mid-June. Production in July and August averaged 1,900 tonnes per day or 86% of planned throughput. Production in September has averaged 1,977 tonnes per day or 90% of planned throughput and has achieved over 2,200 tonnes on successive days. During the first week of October the mine has operated at designed throughput.
"Having declared commercial production at the 2,200 tonne per day rate in just 12 months from our initial production at Cozamin, will provide our shareholder's with increased cash flow and earnings from the Cozamin Mine," said Darren Pylot, President and CEO.
As announced on July 19, 2007, the expansion was completed under budget and ahead of its scheduled completion date of October 2007. 100% of the capital was provided from internal cash flow.
PRODUCTION AND SALES FROM THE COZAMIN MINE IN FISCAL 2007(all figures unaudited)
-------------------------------------------------------------------- Q1 Q2 Q3 Q4 Total--------------------------------------------------------------------Milled tonnes 93,055 95,439 112,277 161,162 461,883--------------------------------------------------------------------Copper Produced (lbs) 2.7M 2.8M 3.5M 4.8M 13.8M--------------------------------------------------------------------Copper Sales (lbs) 2.9M 2.1M 2.9M 3.9M 11.8M--------------------------------------------------------------------
--------------------------------------------------------------------Zinc Produced (lbs) 1.9M 1.2M 1.6M 2.1M 6.8M--------------------------------------------------------------------Zinc Sales (lbs) 1.9M Nil 1.5M 1.6M 5.0M--------------------------------------------------------------------
--------------------------------------------------------------------Lead Produced (lbs) 0.9M 0.5M 0.6M 1.0M 3.0M--------------------------------------------------------------------Lead Sales (lbs) Nil 1.4M 0.7M 0.7M 2.8M--------------------------------------------------------------------Note: Audited results for the fiscal year ended August 31, 2007 willbe reported in November 2007.
NORMAL COURSE ISSUER BID
Further to the news release dated July 12, 2007 Capstone purchased 484,100 common shares at an average price of $2.38. The shares have been returned to the transfer agent and subsequently cancelled. Capstone has 81,732,351 shares outstanding after the cancellation of the above share purchases.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.7 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
This press release contains "forward-looking information" that is based on Capstone's current expectations, estimates, forecasts and projections. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Capstone's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: projected sales or production rates; uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Capstone disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
Resourecenerweiterung um knapp 50% - damit läuft die Mine erstmal
10 Jahre weiter und die Gewinne sprudeln
CAPSTONE INCREASES RESOURCES TO 8.6 MILLION TONNES AT THE COZAMIN MINE
Capstone Mining Corp. has increased resources to 8.6 million tonnes at the Cozamin mine.
Highlights:
An updated resource estimate has been completed for the Cozamin mine, as of Aug. 31, 2007;
At a 1-per-cent cut-off grade:
The resource update yields a 47-per-cent increase in tonnage with a 51-per-cent increase in contained copper and 54-per-cent increase in contained silver;
The measured and indicated categories increase to 5.5 million tonnes containing 287 million pounds of copper, 131 million pounds of zinc, 47 million pounds of lead and 15.2 million ounces of silver;
The inferred category increases to 3.1 million tonnes containing 170 million pounds of copper, 80 million pounds of zinc, 16 million pounds of lead and 8.7 million ounces of silver;
The resource reflects the tonnes mined as of Aug. 31, 2007.
Updated Cozamin resource yields increased tonnage
This new resource estimate significantly increases both the tonnage and contained metal within all of the resource categories, while maintaining its high grade. The resource estimate drilling results table shows the breakdown of resources at a 1-per-cent copper cut-off.
RESOURCE ESTIMATE DRILLING RESULTS
Tonnes Million
Resource (1% Cu Cu Ag Zn Pb Au Million lb.(i) oz.(i)
category cut-off) (%) (g/t) (%) (%) (g/t) Cu Zn Pb Ag
Note: (i) one kilogram equals 2.2 pounds; 31.103 grams equals one Troy ounce.
This new resource estimate has been completed by qualified person Dr. Michelle Stone, PGeo, PhD, of Capstone Mining Corp., Vancouver, B.C. This estimate is based on an updated 3-D geologic model integrating an additional 26,266 metres of diamond drilling including 5,828 assays from five surface and 70 underground NQ-core drill holes and 6,954 underground chip channel samples collected in 2006 and 2007. These data augmented the 25,325 metres of drilling in 37 surface and 66 underground core holes and 1,103 underground chip channels samples used in the 2006 resource estimate. Grades for the model were estimated using the inverse distance squared (ID2) method from two-metre composited intervals within the copper sulphide zone, and the mineralized hangingwall and footwall.
A technical report on the Cozamin mine project will be filed with SEDAR within 45 days.
The company has already commenced a program of underground infill drilling to upgrade the inferred resources. In addition, the company plans to undertake both surface and underground drilling in 2008 to explore along strike and downdip of the updated resources.
Hugh Willson, vice-president of exploration for Capstone, and a qualified person under National Instrument (NI) 43-101, has reviewed the contents of this news release.
Nov 07, 2007 09:50 ET Silverstone Announces Underwritten $50 Million Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 7, 2007) -
THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY IT IS NOT INTENDED FOR DISTRIBUTION IN THE UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Silverstone Resources Corp. ("Silverstone")(TSX VENTURE:SST) is pleased to announce it has entered into an agreement for a private placement with a syndicate of underwriters led by Scotia Capital Inc. and including PI Financial Corp. pursuant to which the underwriters have agreed to purchase 17,250,000 common shares of Silverstone at a price of $2.90 per share for aggregate gross proceeds of approximately $50.0 million. Capstone Mining Corp. has indicated that it will purchase 3,577,670 common shares of Silverstone in the offering. The underwriters also have been granted an option to purchase an additional 3,450,000 common shares of Silverstone at the issue price for additional gross proceeds to the company of $10,005,000. The offering is being completed on a private placement basis subject to certain conditions including, but not limited to, the execution of a definitive underwriting agreement and the receipt of all necessary approvals including the approval of the TSX Venture Exchange. The offering is expected to close on or about November 27, 2007.
Net proceeds from the offering will be used to repay debt and for general corporate purposes including potential acquisitions of silver production.
The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer or sale of securities in the United States.
ABOUT SILVERSTONE
Silverstone is a Canadian based public silver mining company with 100% of its revenue from silver production. More information is available online at: www.silverstonecorp.com.
Nov 14, 2007 21:58 ET
CORRECTION FROM SOURCE: Capstone Mining Year-End and Fourth Quarter Results
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2007) - The following corrects and replaces the release sent today @ 8:26 PM ET. The Minerals Resource estimate table lead and zinc numbers were corrected.
Capstone Mining Corp. ("Capstone") (TSX:CS) announces its financial results for the year and quarter ending August 31, 2007 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
For the year ended August 31, 2007, Capstone's earnings before future income tax allowance were $25.2 million or $0.31 per share ($0.30 per share diluted), and earnings after future income tax allowance were $22.7 million or $0.28 per share ($0.27 per share diluted), compared to a loss of $2.6 million or $0.04 loss per share ($0.04 loss per share diluted) in fiscal 2006.
- For the fourth quarter of fiscal 2007, earnings before future income tax allowance were $10.7 million or $0.13 per share. Earnings after future income tax allowance were $8.2 million or $0.10 per share.
- Revenue for fiscal 2007 was $55.3 million. The average realized price for sales of copper, zinc, lead and silver in fiscal 2007 was $3.20/lb, $1.60/lb, $0.96/lb and $10.76/oz respectively.
- At year end, Capstone had working capital of $52.9 million including $36 million in cash and no bank debt, compared with working capital of $20.6 million and a cash balance of $20.6 million in the previous year.
- Copper cash costs for fiscal 2007 were $0.54/lb of copper (net of by-product credits and including smelter, refining, transportation and all site costs). Copper cash costs for Q4 were $0.63/lb.
- Total costs (the aggregate of cash costs, royalty, depletion and amortization and accretion) for fiscal 2007 were $0.87/lb.
- During the year, Capstone issued 679,080 shares to Grupo Bacis to complete its option to purchase the Cozamin Mine, giving Capstone a 100% ownership interest subject to a 3% Net Smelter Royalty paid to Grupo Bacis.
- Capstone sold its silver during the year to Silverstone Resources Corp. ("Silverstone"), whereby Capstone received $44 million ($20 million in cash and $24 million in Silverstone shares) plus the lesser of $4.00 per ounce of silver and the prevailing market price upon delivery in exchange for selling the next 10 years of silver production from the Cozamin mine. Fair market value of the Silverstone shares today is $57 million.
- Mineral reserves at year end for Cozamin were increased by 65% to 3.7 million tonnes, boosting recoverable copper from 93 million pounds in 2006 to 173 million pounds in 2007. Recoverable zinc increased from 24 million pounds to 48.5 million pounds, recoverable lead increased from 1.6 million pounds to 2 million pounds and recoverable silver increased from 4 million ounces to 7.3 million ounces.
------------------------------------------------------------ Year ended Year ended August 31, 2007 August 31, 2006------------------------------------------------------------
------------------------------------------------------------Revenue $55.3M $Nil------------------------------------------------------------ Copper $37.7M $Nil------------------------------------------------------------ Zinc $8.0M $Nil------------------------------------------------------------ Lead $2.7M $Nil------------------------------------------------------------ Silver $6.9M $Nil------------------------------------------------------------Operating profit $28.0M $Nil------------------------------------------------------------Earnings (before tax) $25.2M ($2.6M)------------------------------------------------------------EPS - basic (before tax) $0.31 ($0.04)------------------------------------------------------------Earnings (after tax) $22.7M ($2.6M)------------------------------------------------------------EPS - basic $0.28 ($0.04)------------------------------------------------------------
Cozamin Mine
Fiscal 2007 Production and Sales Highlights
- Capstone produced the following metals during the year.
- 13.9 million pounds of copper
- 6.8 million pounds of zinc
- 3 million pounds of lead
- 747,000 ounces of silver
- Concentrate sales for the year were dry metric tonnes ("DMT"), containing;
- 11.8 million pounds of copper
- 5 million pounds of zinc
- 2.8 million pounds of lead
- 641,000 ounces of silver
Concentrate inventory at August 31, 2007 was 8,150 DMT (containing 2.6 million pounds of copper, 2.0 million pounds of zinc and 0.4 million pounds of lead).
2007 Production Results and 2008 Forecast
The forecasted copper, zinc, lead and silver production for fiscal 2007 was estimated to be 13 - 14 million pounds of copper, 8 million pounds of zinc, 3.5 million pounds of lead and 700,000 ounces of silver.
The following table is a summary of the actual operating statistics for fiscal 2007 and forecast for 2008.
- Copper in concentrate produced during the quarter was 4.9 million pounds of copper, 37% higher than the previous quarter.
- Copper concentrate sales for the quarter were 8,372 dry metric tons ("DMT"), containing 3.9 million pounds of copper, an increase from the 5,947 DMT sold during the previous quarter, containing 2.9 million pounds of copper.
- The average price for sales of copper in the quarter was $3.34/lb.
- Copper concentrate inventory at August 31, 2007 was 5,447 DMT, an increase in inventory from the 3,842 DMT of concentrate on hand at the end of the previous quarter.
- Silver in the copper concentrate produced during the quarter totaled 205,000 ounces, 44% higher than the previous quarter.
Zinc
- Zinc in concentrate produced during the quarter was 2.1 million pounds of zinc, 31% more than the previous quarter.
- Zinc sales for the quarter were 1,977 DMT, containing 1.6 million pounds of zinc, an increase from the 1,949 DMT sold during the previous quarter, containing 1.5 million pounds of zinc.
- The average price for sales of zinc in the quarter was $1.65/lb.
- Zinc concentrate inventory at August 31, 2007 was 2,413 DMT, an increase in inventory from the 1,820 DMT of concentrate on hand at the end of the previous quarter.
- Silver in the zinc concentrate produced during the quarter totaled 10,000 ounces, 67% higher than the previous quarter.
Lead
- Lead in concentrate produced during the quarter was 1.0 million pounds of lead, 67% more than the previous quarter.
- Lead concentrate sales for the quarter were 498 DMT, containing 0.7 million pounds of lead, equal to the 502 DMT sold during the previous quarter, containing 0.7 million pounds of lead.
- The average price for sales of lead in the quarter was $1.48/lb.
- Lead concentrate inventory at August 31, 2007 was 290 DMT, an increase in inventory from the 120 DMT of concentrate on hand at the end of the previous quarter.
- Silver in the lead concentrate produced during the quarter totaled 49,000 ounces, 63% higher than the previous quarter.
Fourth Quarter Production Results
The following table is a summary of the operating statistics for the year by quarter.
Tons mined and processed were higher in the fourth quarter of fiscal 2007 compared to previous 2007 quarters as expansion start up commenced ahead of schedule in July at the 2200 tpd rate. July and August production rates averaged approximately 94% of design throughput. Capital expenditures were $11 million, with approximately $2 million remaining to be spent on final land payment, underground crusher installation and ramp completion versus $15 million budget.
Labour
There were 11 minor lost time accidents during the year from both operations and construction. The number of personnel at the end of the year was 526, of which approximately 146 were contractors related to the expansion project.
Fourth Quarter Actual Sales Compared to Previous Quarters
Actual sales and costs for the year are tabulated below.
--------------------------------------------------------------------------- Fiscal Q1 (A) Q2 (A) Q3 (A) Q4 (A) 2007 Sales Sales Sales Sales Sales---------------------------------------------------------------------------Copper (million lbs) 2.9 2.1 2.9 3.9 11.8---------------------------------------------------------------------------Zinc (million lbs) 1.9 Nil 1.5 1.6 5.0---------------------------------------------------------------------------Lead (million lbs) Nil 1.4 0.7 0.7 2.8---------------------------------------------------------------------------Silver ('000 ounces) 120 169 143 209 641---------------------------------------------------------------------------Copper production costs, net of by product credits, per lb of copper $(0.04) $(0.02) $0.20 $0.25 $0.12---------------------------------------------------------------------------Off property costs for transport, smelting and refining per lb of copper $0.48 $0.41 $0.41 $0.38 $0.42---------------------------------------------------------------------------Total cash costs of production per lb of copper $0.44 $0.39 $0.61 $0.63 $0.54---------------------------------------------------------------------------
Copper production costs in the fourth quarter were $0.05 above plan reflecting the impact of the company having sold all its silver production to Silverstone Resources Corp. at $8.40 per ounce.
Mineral Reserves and Resources
An updated reserve and resource estimate has been completed for the Cozamin mine, as of August 31, 2007. The new reserve and resource estimate increases both the tonnage and contained metal within all of the reserve and resource categories, while maintaining its high grade. The Company completed 5 surface and 70 underground NQ-core drill holes totaling 26,266 metres. Modeling also included channel samples from mined areas.
The exploration drilling program was carried out in 2006/7 to upgrade and expand the mineral resources. The program resulted in an increase of mineable reserves of 65% after allowing for ore production during the year shown below, at a $40 cut-off.
The resources shown below indicate the successful conversion from inferred resources to measured and indicated resources, while maintaining a similar tonnage in the inferred category. Overall resources increased 47% after allowing for mined out tonnage.
The resource and reserve estimation was completed by Cozamin mine staff under the supervision of Michelle Stone and Bob Barnes, Qualified Persons under National Instrument 43-101. The estimates used long term metal prices of $2.25/lb for copper, $1.00/lb for zinc, $0.60/lb for lead and $8.50/oz for silver. A technical report will be filed on www.sedar.com in November 2007.
In addition to the above reserves, the mineral resources which include the reserves are estimated to be:
-------------------------------------------------------------------------- Tonnes MillionResource (1% Cu Cu Ag Pb Zn Au Million lbs(ii) ozs(ii)Category(i) Cut-off) (%) (g/t) (%) (%)(g/t) Cu Zn Pb Ag--------------------------------------------------------------------------Measured 2,591,705 2.48 87.11 0.43 1.18 0.03 141.7 24.6 67.4 7.3--------------------------------------------------------------------------Indicated 2,896,158 2.59 86.37 0.32 1.14 0.04 165.4 20.4 72.8 8.0--------------------------------------------------------------------------M & Ind. 5,487,863 2.54 86.56 0.37 1.15 0.04 307.1 45.0 140.2 15.3--------------------------------------------------------------------------Inferred 3,162,838 2.36 80.50 0.18 1.03 0.04 164.6 12.6 71.8 8.2--------------------------------------------------------------------------Total 8,650,702 2.47 84.35 0.30 1.11 0.04 471.7 57.6 212.0 23.5--------------------------------------------------------------------------(i) These resources included a non-material update to the resources released October 15, 2007.(ii) 1 kilogram equals 2.2 lbs; 31.103 grams equals 1 oz. Troy.
The Company has already commenced a program of underground infill drilling to further expand and upgrade the inferred resources. Priority will be on inferred resources within established mining block areas. In addition, the Company plans to undertake both surface and underground drilling in 2008 to explore along strike and down dip of the updated resources.
With the promising results encountered in the 2006/7 drilling program, the company is managing a focused program to further expand the Cozamin mineral reserves.
Financial Results
The information in this news release and the selected financial information contained in the following pages should be read in conjunction with the audited Consolidated Financial Statements and Management Discussion and Analysis for the year ended August 31, 2007, which will be available at Capstone's website at www.capstonemining.com and at www.sedar.com.
The Company's earnings before future income tax accruals for the year ended August 31, 2007 increased to $25.2 million or $0.31 per share compared to a loss of $2.6 million or ($0.04) per share for the year ended August 31, 2006. The Company's net earnings for August 31, 2007 increased to $22.7 million or $0.28 per share, compared to $(2.6) million or $(0.04) per share for August 31, 2006.
The Company reported revenues of $55.3 million (2006 - $Nil). Revenues consisted of copper concentrate sales of $37.7 million, zinc concentrate sales of $8.0 million, lead concentrate sales of $2.7 million and silver in concentrate sales of $6.9 million.
Cost of sales for the year was $14.2 million (2006 - $Nil), treatment and transportation charges were $10.1 million (2006 - $Nil), royalty charges were $1.4 million (2006 - $Nil) and depletion was $1.7 million (2006 - $Nil).
The increased general and administrative expenditures for the year ended August 31, 2007 compared to the year ended August 31, 2006 are due to the Company attaining commercial production as well as professional fees related to the sale of the Company's silver.
A future income tax provision of $2.5 million was recorded in 2007 compared to $Nil in 2006. The increase in the income tax provision is mainly due to the excess of book value of capital assets over tax values.
Glencore International AG purchases the concentrates produced by the Cozamin mine pursuant to the terms of a written contract. The Company has also agreed to terms with Trafigura Beheer B.V. to purchase additional copper concentrates from the expansion pursuant to the terms of a written contract.
Capstone Mining Corp.Selected Financial Information
Consolidated Balance Sheets--------------------------------------------------------------------- Aug 31, Aug 31, 2007 2006---------------------------------------------------------------------
Cash $ 35,988,166 $ 20,614,359Investment in Silverstone Resources Corp. 28,498,044 -Property, plant and equipment 44,616,033 31,479,079Other assets 24,888,492 6,739,335---------------------------------------------------------------------
Total assets 133,990,735 58,832,773------------------------------------------------------------------------------------------------------------------------------------------
Deferred revenue 43,056,390 -Other liabilities 15,561,814 6,474,770---------------------------------------------------------------------
Total liabilities 58,618,204 6,474,770Shareholder's equity 75,372,531 52,358,003---------------------------------------------------------------------
Total liabilities and shareholders' equity 133,990,735 58,832,773------------------------------------------------------------------------------------------------------------------------------------------
Consolidated Statements of Operations--------------------------------------------------------------------- Aug 31, Aug 31, 2007 2006---------------------------------------------------------------------
Total revenues $ 55,335,647 $ -Total cost of sales (27,304,725) ----------------------------------------------------------------------Operating profit 28,030,922 -G&A and other expenses (4,607,226) (2,879,614)Other items 1,726,946 255,013---------------------------------------------------------------------Earnings (loss) before income taxes 25,150,642 (2,624,601)Future income tax (2,479,593) ----------------------------------------------------------------------Earnings (loss) for the year 22,671,049 (2,624,601)------------------------------------------------------------------------------------------------------------------------------------------
EPS - Basic 0.28 (0.04)EPS - Diluted 0.27 (0.04)------------------------------------------------------------------------------------------------------------------------------------------
Capstone will host a conference call on Thursday, November 15 at 8:30 a.m. Pacific Time (11:30 AM Eastern Time) to discuss these results. The conference call may be accessed by dialing 1.866.365.1119 in North America or 1.416.849.7329 internationally, please ask for the Capstone Mining Corp. conference call. The conference call will be archived for later playback until November 29, 2007 and can be accessed by dialing 1.866.501.5559 and the passcode is 21253140#.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.8 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
Jan 10, 2008 07:00 ET Capstone Highlights Production and Sales for the Four Months Ended December 31, 2007
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 10, 2008) - Capstone Mining Corp. ("Capstone") (TSX:CS) changed its fiscal year end from August 31 to December 31 and will be filing its audited four month stub period ending December 31, 2007 in March 2008. Capstone will not be reporting quarterly financials as at November 30, 2007. Therefore, Capstone is pleased to report production and sales results for the four months ended December 31, 2007 from its Cozamin mine located in Zacatecas State, Mexico.
With the expansion from 1,000 tpd to 2,200 tpd completed, the Cozamin mine produced 260,378 tonnes during the four months ended December 31, 2007 compared with 461,933 for the entire fiscal year ended August 31, 2007. On an annualized basis this would result in 780,000 tonnes being produced (a target we expect to meet or exceed), a 69% increase over the previous year. Copper production during the four months ended December 31, 2007 was 9 million lbs compared with 13.9 million lbs for the entire fiscal year ended August 31, 2007. On an annualized basis this would result in 27 million lbs of copper being produced, a 94% increase over the previous year.
See table below for summarized results.
PRODUCTION AND SALES FOR THE FOUR MONTHS ENDED DECEMBER 31, 2007With comparative of previous fiscal year ended August 31, 2007(all figures unaudited, unless noted)
-------------------------------------------------------------------------- Sept '06 Total to Aug '07 Sept '07 Oct '07 Nov '07 Dec '07 4 months (audited)--------------------------------------------------------------------------
--------------------------------------------------------------------------Milled tonnes 59,300 63,573 71,335 66,170 260,378 461,933--------------------------------------------------------------------------Copper Produced (lbs) 2.0M 1.9M 2.3M 2.8M 9.0M 13.9M--------------------------------------------------------------------------Copper Sales (lbs) 2.8M 3.2M 1.3M 1.3M 8.6M 11.8M--------------------------------------------------------------------------
--------------------------------------------------------------------------Zinc Produced (lbs) 0.6M 0.7M 0.7M 0.5M 2.5M 6.8M--------------------------------------------------------------------------Zinc Sales (lbs) 1.4M Nil Nil Nil 1.4M 5.0M--------------------------------------------------------------------------
--------------------------------------------------------------------------Lead Produced (lbs) 0.3M 0.4M 0.5M 0.4M 1.6M 3.0M--------------------------------------------------------------------------Lead Sales (lbs) 0.6M Nil Nil 0.9M 1.5M 2.8M--------------------------------------------------------------------------Note: Audited results for the 4 months ended December 31, 2007 will be reported in March 2008.
NORMAL COURSE ISSUER BID
Further to the news releases dated July 12, 2007 and October 11, 2007 Capstone has purchased an additional 815,500 common shares at an average price of $2.76 per share. The shares have been returned to the transfer agent and subsequently cancelled. Capstone has 81,442,515 shares outstanding after the cancellation of the above share purchases.
Jan 17, 2008 07:00 ET Capstone Provides 2008 Expansion and Exploration Plans and Increases Production Forecasts for 2008 and 2009
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 17, 2008) - Capstone Mining Corp. ("Capstone") (TSX:CS) is pleased to report its 2008 expansion and exploration plans and budgets for the Cozamin mine located in Zacatecas State, Mexico. All dollar amounts are stated in U.S. dollars unless otherwise stated.
MINE EXPANSION
Capstone is pleased to report it has started the expansion of the Cozamin mine from the current rate of 2,200 tonnes per day ("tpd") or 750,000 tonnes per year ("tpy") to 3,000 tpd or approximately 1 million tpy, a 36% increase in production. This expansion is expected to be completed by September 2008 at a total budgeted cost of $9.5 million (including a 15% contingency). The major areas of the expansion include the following; a new larger production ramp will be driven from surface down to the internal level 8 decline ramp within the mine (approximately 1,400m). The internal ramps from level 8 to 12 level will be enlarged and the underground crusher will be moved to a new dump pocket at level 11.5. This larger production ramp will provide the required additional ore haulage capacity and will compliment the 2,000 tpd shaft as well as allowing larger sized trucks to transport ore to surface. The cost of the ramp and equipment is estimated to be $4.0 million. A new 115kV high tension power line and substation will be constructed to supply up to 7.5mW to the mine. A 1.5mW generator will also be added to provide additional power to the mine before power line completion and will be used as an emergency power supply in the future when power outages occur. The upgrade in power is estimated to cost $3.6 million. Modifications within the plant include increasing belt sizes within the crushing area and larger floatation cells to handle the increase in concentrates. This is estimated to cost $1.2 million. An additional 6m lift will be added to the tailings dam at a cost of $700,000.
PRODUCTION FORECAST
As a result of the expansion to 3,000 tpd, Capstone is revising upward its 2008 and 2009 metal production forecast as follows;
A total of 18,000m of underground drilling and 650m of underground drifting are planned within the Cozamin mine. This drilling will be to upgrade existing inferred resources to the measured and indicated categories as well as to continue to explore to depth. This 2008 program is budgeted to cost $2.5 million (including a 15% contingency).
An additional 6,500m will be drilled from surface to explore the Mala Noche vein along strike and outside of the current resource area. The program is budgeted at $1.7 million (including a 15% contingency).
Robert B. Barnes, P.Eng, Vice President of Operations for Capstone and a qualified person under NI 43-101, has reviewed and approved the contents of this news release.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.4 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
Capstone to Release 4 Months Ended December 31, 2007 Results
on Thursday February 28, 2008
February 20, 2008
Vancouver, BC – Capstone Mining Corp. (“Capstone”) will release its December 31, 2007 four month stub period results on Thursday February 28, 2008 before market open and will host a conference call on Friday February 29, 2008 at 8:00am PST (11:00am ET) to discuss these results. The conference call may be accessed by dialing 1.866.514.1894. Please ask for the Capstone Mining Corp. conference call.
The conference call will be archived for later playback until Friday, March 7, 2008 and can be accessed by dialing 1.866.501.5559 and the passcode is 21264082#.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the Cozamin copper-silver-zinc-lead mine located in Zacatecas State, Mexico. Capstone has approximately 81.4 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com .
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2008) - Capstone Mining Corp. ("Capstone") (TSX:CS) announces its financial results for the four month stub period ending December 31, 2007 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
For the four months ended December 31, 2007, Capstone's earnings, before future income tax allowance were $16.8 million or $0.21 per share ($0.20 per share diluted), and earnings, after future income tax allowance, a non-cash item, were $10.4 million or $0.13 per share ($0.12 per share diluted).
- Revenue for the four months ended December 31, 2007 was $33.0 million. The average realized price for sales of copper, zinc, lead and silver in the four months was $3.09/lb, $1.07/lb, $1.24/lb and $8.40/oz respectively.
- Copper production during the four months ended December 31, 2007 was 9.0 million lbs compared with 13.9 million lbs for the 12 months ended August 31 2007 (65% of the previous 12 month period).
- At December 31, 2007, Capstone had working capital of $51.7 million including $25 million in cash, $8.1 million in marketable securities, current receivables of $14.9 and no bank debt, in addition the fair market value of Capstone's share ownership of Silverstone Resources Corp. as of today is approximately $90 million, which is not included in working capital.
- Copper cash costs for the four months ended December 31, 2007 were $0.96/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 four months ended December 31, 2007 were $1.16/lb.
- Capstone continued its share buyback plan and purchased an additional 815,500 common shares on the open market at an average price of CDN$2.76. The shares have been returned to treasury and cancelled under its normal course issuer bid.
- During the four month stub period the Cozamin mine operated at its current designed throughput rate of 2,200 tpd.
4 Months Ended December 31, 2007 Production and Sales Highlights
- Capstone produced the following metals during the year.
- 9.0 million pounds of copper
- 2.5 million pounds of zinc
- 1.6 million pounds of lead
- 414,000 ounces of silver
- Concentrate sales for the period were dry metric tonnes ("DMT"), containing;
- 8.6 million pounds of copper
- 1.4 million pounds of zinc
- 1.5 million pounds of lead
- 377,000 ounces of silver
Concentrate inventory at December 31, 2007 was 9,793 DMT (containing 2.8 million pounds of copper, 2.9 million pounds of zinc and 0.5 million pounds of lead).
December 31, 2007 Production Results and Forecast for 2008 and 2009
------------------------------------------------------------------ 2008 (F) 2009 (F)------------------------------------------------------------------Total tons milled 850,000 1,000,000------------------------------------------------------------------
------------------------------------------------------------------Copper (payable lbs) 30,000,000 40,000,000------------------------------------------------------------------Silver (payable ounces) 1,300,000 1,500,000------------------------------------------------------------------Zinc (payable lbs) 9,000,000 10,000,000------------------------------------------------------------------Lead (payable lbs) 5,100,000 5,000,000------------------------------------------------------------------
The following table is a summary of the actual operating statistics for the four months ended December 31, 2007 and the year ended August 31, 2007.
--------------------------------------------------------------------------- 4 months ended Year ended Dec 31, 2007 Aug 31, 2007---------------------------------------------------------------------------Total tons mined 251,716 484,641---------------------------------------------------------------------------Tons of ore milled 260,714 461,933---------------------------------------------------------------------------Copper grade (%) 1.79 1.59---------------------------------------------------------------------------Zinc grade (%) 1.24 1.47---------------------------------------------------------------------------Silver grade (g/t) 69 71---------------------------------------------------------------------------Lead grade (%) 0.52 0.6---------------------------------------------------------------------------Copper recovery (%) 87.1 86---------------------------------------------------------------------------Zinc recovery (%) 41.3 44.9---------------------------------------------------------------------------Silver recovery (%) 73.3 73---------------------------------------------------------------------------Lead recovery (%) 49.8 52.6---------------------------------------------------------------------------Copper production (million DMT lbs) 9.0 13.9---------------------------------------------------------------------------Zinc production (million DMT lbs) 2.5 6.8---------------------------------------------------------------------------Silver production ('000 ounces) 414 747---------------------------------------------------------------------------Lead production (million DMT lbs) 1.6 3.0---------------------------------------------------------------------------Note: Silver reports to all concentrates.
Stub Four Month Period Production Highlights
Copper
- Copper in concentrate produced during the four month period was 9.0 million pounds of copper, year ended August 31, 2007 was 13.9 million.
- Copper concentrate sales for the period were 18,277 dry metric tons ("DMT"), containing 8.6 million pounds of copper, year ended August 31, 2007 was 11.8 million.
- The average price for sales of copper in the period was $3.09/lb.
- Copper concentrate inventory at December 31, 2007 was 5,631 DMT, an increase in inventory from the 5,447 DMT of concentrate on hand at August 31, 2007.
- Silver in the copper concentrate produced during the period totaled 335,000 ounces.
Zinc
- Zinc in concentrate produced during the four month period was 2.5 million pounds of zinc, year ended August 31, 2007 was 6.8 million.
- Zinc sales for the period were 1,799 DMT, containing 1.4 million pounds of zinc, year ended August 31, 2007 was 5.0 million.
- The average price for sales of zinc in the period was $1.07/lb.
- Zinc concentrate inventory at December 31, 2007 was 3,804 DMT, an increase in inventory from the 2,413 DMT of concentrate on hand at August 31, 2007.
- Silver in the zinc concentrate produced during the period totaled 12,000 ounces.
Lead
- Lead in concentrate produced during the four month period was 1.6 million pounds of lead, year ended August 31, 2007 was 3.0 million.
- Lead concentrate sales for the period were 1,147 DMT, containing 1.5 million pounds of lead, year ended August 31, 2007 was 2.8 million.
- The average price for sales of lead in the period was $1.24/lb.
- Lead concentrate inventory at December 31, 2007 was 358 DMT, an increase in inventory from the 290 DMT of concentrate on hand at August 31, 2007.
- Silver in the lead concentrate produced during the period totaled 67,000 ounces.
Mill Expansion Project
Tons mined and processed were higher in the four months ended December 31, 2007 compared to previous 2007 periods as expansion to the 2,200 tpd was completed in September. Capital expenditures are budgeted at $10 million to further expand the facility to 3,000 tpd which is expected to be completed by the fourth quarter this year.
Labour
There were 4 minor lost time accidents during the period from both operations and construction. The number of personnel at the end of the period was 530, of which approximately 90 were contractors related to the expansion project.
Four Month Actual Sales
Actual sales and costs for the year are tabulated below.
--------------------------------------------------------------- 4 months ended Dec 31, 2007---------------------------------------------------------------Copper (million lbs) 8.6---------------------------------------------------------------Zinc (million lbs) 1.4---------------------------------------------------------------Lead (million lbs) 1.5---------------------------------------------------------------Silver ('000 ounces) 377---------------------------------------------------------------Copper production costs, net of by product credits, per lb of copper $ 0.55---------------------------------------------------------------Off property costs for transport, smelting and refining per lb of copper $ 0.41---------------------------------------------------------------Total cash costs of production per lb of copper $ 0.96---------------------------------------------------------------
Copper production costs in the four months ended December 31, 2007 were $0.21 above plan reflecting the impact of the company having sold less zinc and writing down a portion of the zinc with lower grade in the concentrate and the lower by product metal prices.
Financial Results
The information in this news release and the selected financial information contained in the following pages should be read in conjunction with the audited Consolidated Financial Statements and Management Discussion and Analysis for the four months ended December 31, 2007, which will be available at Capstone's website at www.capstonemining.com and at www.sedar.com.
The Company's earnings before future tax accruals for the four months ended December 31, 2007 were $16.8 million or $0.21 per share compared to earnings of $25.2 million or $0.31 per share for the year ended August 31, 2007. The Company's net earnings for December 31, 2007 were $10.4 million or $0.13 per share compared to $22.7 million or $0.28 per share for August 31, 2007 after future income tax allowance, a non-cash item.
The Company reported revenues for the four month period of $33.0 million (year ended August 31, 2007 - $55.3 million). Revenues consisted of copper concentrate sales of $26.5 million, zinc concentrate sales of $1.5 million, lead concentrate sales of $1.9 million and silver in concentrate sales of $3.1 million.
Cost of sales for the four month period was $9.0 million (year ended August 31, 2007 - $14.2 million), treatment and transportation charges were $5.3 million (August 31, 2007 - $10.1 million), royalty charges were $0.6 million (August 31, 2007 - $1.4 million) and depletion was $0.9 million (August 31, 2007 - $1.7 million).
For the four month period ended December 31, 2007, the Company recorded an unrealized gain related to mark-to-market on the outstanding derivative contracts in the amount of $2,928,644 (August 31, 2007 - $Nil).
A future income tax provision of $6.3 million was recorded at December 31, 2007 compared to $2.5 million at August 31, 2007. The increase in the income tax provision is mainly due to the reversal of the current future income tax asset set up at August 31, 2007 as well as an increase in the excess of book value of capital assets over tax values.
Glencore International AG and Trafigura Beheer B.V. purchases the concentrates produced by the Cozamin mine pursuant to the terms of a written contract.
Capstone Mining Corp.Selected Financial Information
Consolidated Balance Sheets------------------------------------------------------------------------- Dec 31, Aug 31, 2007 2007-------------------------------------------------------------------------
Cash $ 25,114,753 $ 35,988,166Marketable securities 8,097,348 -Investment in Silverstone Resources Corp. 39,022,891 28,498,044Property, plant and equipment 45,655,190 44,616,033Other assets 27,090,014 24,888,492-------------------------------------------------------------------------
Total assets 144,980,196 133,990,735--------------------------------------------------------------------------------------------------------------------------------------------------
Deferred revenue 41,398,281 43,056,390Other liabilities 17,833,194 15,561,814-------------------------------------------------------------------------
Total liabilities 59,231,475 58,618,204Shareholder's equity 85,748,721 75,372,531-------------------------------------------------------------------------
Total liabilities and shareholders' equity 144,980,196 133,990,735--------------------------------------------------------------------------------------------------------------------------------------------------
Consolidated Statements of Operations------------------------------------------------------------------------- Four months Year ended ended Dec 31, Aug 31, 2007 2007-------------------------------------------------------------------------
Total revenues $ 32,975,274 $ 55,335,647Total cost of sales (16,157,585) (28,138,291)-------------------------------------------------------------------------Operating profit 16,817,689 27,197,356G&A and other expenses (3,437,958) (3,773,660)Other items 3,409,803 1,726,946-------------------------------------------------------------------------Earnings (loss) before income taxes 16,789,534 25,150,642Future income tax (6,333,610) (2,479,593)-------------------------------------------------------------------------Earnings (loss) for the year 10,415,923 22,671,049--------------------------------------------------------------------------------------------------------------------------------------------------
EPS - Basic 0.13 0.28EPS - Diluted 0.12 0.27--------------------------------------------------------------------------------------------------------------------------------------------------
Capstone will host a conference call on Friday, February 29 at 8:00 a.m. Pacific Time (11:00 AM Eastern Time) to discuss these results. The conference call may be accessed by dialing 1.866.514.1894 in North America or 1.480.248.5085 internationally, please ask for the Capstone Mining Corp. conference call. The conference call will be archived for later playback until March 7, 2008 and can be accessed by dialing 1.866.501.5559 and the passcode is 21264082#.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.4 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
Capstone Announces Production And Sales For The First Quarter Of 2008
April 16, 2008
VANCOUVER, B.C. – Capstone Mining Corp. (“Capstone”) is pleased to report production and sales results for the first quarter of 2008 from its Cozamin mine located in Zacatecas State, Mexico. With the expansion from 2,200 tpd to 3,000 tpd underway, the Cozamin mine produced 202,656 tonnes during the first quarter of 2008.
Summarized results are shown below; there are no comparatives due to the change in year end to December 31.
OPERATING AND SALES RESULTS
(all figures unaudited)
Total
Q1 -2008
Ore milled (tonnes)
202,656
Copper production (lbs)*
6.0M
Copper grade (%)
1.59
Copper recovery (%)
84.2
Copper sales (lbs)
6.9M
Average Copper price***
$3.59
Zinc production (lbs)
2.3M
Zinc grade (%)
1.35
Zinc recovery (%)
40.6
Zinc sales (lbs)**
0.7M
Average Zinc price***
$1.21
Lead production (lbs)
1.7M
Lead grade (%)
0.65
Lead recovery (%)
60.2
Lead sales (lbs)
1.3M
Average Lead price***
$1.33
* Copper production was lower in February and March due to lower grade material from the upper levels being fed through the mill as we are currently preparing infrastructure in the lower high grade levels of the mine due to the expansion.
** 2M lbs of Zinc sold in April 2008
*** Average prices used on provisional invoices during the quarter.
Note: First quarter financial results will be reported April 30, 2008.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.9 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
This press release contains “forward-looking information” that is based on Capstone’s current expectations, estimates, forecasts and projections. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Capstone’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: projected sales or production rates; uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relati! ons matters.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Capstone disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
http://www.marketwire.com/mw/release.do?id=850007
Capstone Reports Record Operating Profit of $15.9 Million for the First Quarter
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 29, 2008) - Capstone Mining Corp. ("Capstone") (TSX:CS) 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.
- Capstone produced the following metals during the quarter
- 6.0 million pounds of copper
- 2.3 million pounds of zinc
- 1.7 million pounds of lead
- 338,000 ounces of silver
- Concentrate sales for the quarter contained;
- 6.9 million pounds of copper
- 0.7 million pounds of zinc
- 1.3 million pounds of lead
- 306,000 ounces of silver
Concentrate inventory at March 31, 2008 was 8,856 DMT (containing 1.4 million pounds of copper, 4.0 million pounds of zinc and 0.8 million pounds of lead).
March 31, 2008 Production Results and Forecast for 2008 and 2009
The following table is a summary of the actual operating statistics for the three months ended March 31, 2008 and the three months ended February 28, 2007.
-------------------------------------------------------------------------- 3 months ended Feb 28, Q1 - 2008 2007--------------------------------------------------------------------------Total tons mined 195,530 100,620--------------------------------------------------------------------------Tons of ore milled 202,656 95,439--------------------------------------------------------------------------Copper grade (%) 1.59 1.58--------------------------------------------------------------------------Zinc grade (%) 1.35 1.45--------------------------------------------------------------------------Silver grade (g/t) 70.3 68--------------------------------------------------------------------------Lead grade (%) 0.65 0.53--------------------------------------------------------------------------Copper recovery (%) 84.2 84.5--------------------------------------------------------------------------Zinc recovery (%) 40.6 42.6--------------------------------------------------------------------------Silver recovery (%) 70.4 67.5--------------------------------------------------------------------------Lead recovery (%) 60.2 49--------------------------------------------------------------------------Copper production (million DMT lbs) 6.0 2.8--------------------------------------------------------------------------Zinc production (million DMT lbs) 2.3 1.2--------------------------------------------------------------------------Silver production ('000 ounces) 338 149--------------------------------------------------------------------------Lead production (million DMT lbs) 1.7 0.5--------------------------------------------------------------------------Note: Silver reports to all concentrates.
First Quarter 2008 Highlights
Copper
- Copper in concentrate produced during the quarter was 6.0 million pounds of copper, three months ended February 28, 2007 was 2.8 million.
- Copper concentrate sales for the quarter were 14,960 dry metric tons ("DMT"), containing 6.9 million pounds of copper, three months ended February 28, 2007 was 2.1 million.
- The average price for sales of copper in the period was $3.59/lb.
- Copper concentrate inventory at March 31, 2008 was 2,919 DMT, a decrease in inventory from the 5,631 DMT of concentrate on hand at December 31, 2007.
- Silver in the copper concentrate produced during the period totaled 257,000 ounces.
- Copper production was lower in February and March as the Company was mining lower grade upper levels due to the expansion projects on the higher grade lower levels.
Zinc
- Zinc in concentrate produced during the quarter was 2.3 million pounds of zinc, three months ended February 28, 2007 was 1.2 million.
- Zinc sales for the period were 1,077 DMT, containing 0.7 million pounds of zinc, there were no sales during the three months ended February 28, 2007.
- The average price for sales of zinc in the period was $1.21/lb.
- Zinc concentrate inventory at March 31, 2008 was 5,375 DMT, an increase in inventory from the 3,804 DMT of concentrate on hand at December 31, 2007.
- Silver in the zinc concentrate produced during the period totaled 16,000 ounces.
Lead
- Lead in concentrate produced during the quarter was 1.7 million pounds of lead, three months ended February 28, 2007 was 0.5 million.
- Lead concentrate sales for the period were 1,076 DMT, containing 1.3 million pounds of lead, three months ended February 28, 2007 was 1.4 million.
- The average price for sales of lead in the period was $1.33/lb.
- Lead concentrate inventory at March 31, 2008 was 562 DMT, an increase in inventory from the 358 DMT of concentrate on hand at December 31, 2007.
- Silver in the lead concentrate produced during the period totaled 65,000 ounces.
Mill Expansion Project
Capital expenditures are budgeted at $10 million to further expand the facility to 3,000 tpd which is expected to be completed by the fourth quarter this year.
Labour
There were 2 minor lost time accidents during the period from both operations and construction. The number of personnel at the end of the period was 600, of which approximately 80 were contractors related to the expansion project.
Q1 - Actual Sales and Costs
-------------------------------------------------------------------------- 3 Months Ended Feb 28, Q1 - 2008 2007--------------------------------------------------------------------------Copper (million lbs) 6.9 2.1--------------------------------------------------------------------------Zinc (million lbs) 0.7 Nil--------------------------------------------------------------------------Lead (million lbs) 1.3 1.4--------------------------------------------------------------------------Silver ('000 ounces) 306 169--------------------------------------------------------------------------Copper production costs, net of by product credits, per lb of copper $ 0.58 ($ 0.02)--------------------------------------------------------------------------Off property costs for transport, smelting and refining per lb of copper $ 0.40 $ 0.41--------------------------------------------------------------------------Total cash costs of production per lb of copper $ 0.98 $ 0.39--------------------------------------------------------------------------
Financial Results
The information in this news release and the selected financial information contained in the following pages should be read in conjunction with the Interim Consolidated Financial Statements and Management Discussion and Analysis for the three months ended March 31, 2008, which will be available at Capstone's website at www.capstonemining.com and at www.sedar.com.
The Company's operating profit for the three months ended March 31, 2008 was $15.9 million or $0.20 per share compared to operating profit of $3.9 million or $0.05 per share for the three months ended February 28, 2007. The Company's net earnings for March 31, 2008 were $0.5 million or $0.01 per share compared to $3.3 million or $0.04 per share for February 28, 2007.
The Company reported revenues for the three month period of $29.5 million (February 28, 2007 - $9.1 million). Revenues consisted of copper concentrate sales of $24.6 million, zinc concentrate sales of $0.6 million, lead concentrate sales of $1.7 million and silver concentrate sales of $2.6 million.
Cost of sales for the three month period was $7.5 million (February 28, 2007 - $2.7 million), treatment and transportation charges were $4.4 million (February 28, 2007 - $1.3 million), royalty charges were $0.6 million (February 28, 2007 - $0.5 million) and depletion was $0.8 million (February 28, 2007 - $0.6 million).
For the three month period ended March 31, 2008, the Company recorded an unrealized loss related to mark-to-market on the outstanding derivative contracts in the amount of $12.4 million (February 28, 2007 - $Nil) related to our forward copper sales. Forward copper sales average price through 2011 is $3.18.
Glencore International AG and Trafigura Beheer B.V. purchases the concentrates produced by the Cozamin mine pursuant to the terms of a written contract.
Capstone Mining Corp.Selected Financial Information
Interim Consolidated Balance Sheets-------------------------------------------------------------------------- March 31, Dec 31, 2008 2007--------------------------------------------------------------------------
Cash $ 33,999,543 $ 25,114,753Marketable securities 1,466,496 8,097,348Receivables 17,604,581 9,799,634Investment in Silverstone Resources Corp. 40,006,497 39,022,891Property, plant and equipment 47,408,699 45,655,190Other assets 15,863,279 17,290,380--------------------------------------------------------------------------
Total assets 156,349,095 144,980,196----------------------------------------------------------------------------------------------------------------------------------------------------
Deferred revenue 40,051,609 41,398,281Other liabilities 28,954,406 17,833,194--------------------------------------------------------------------------
Total liabilities 69,006,015 59,231,475Shareholder's equity 87,343,080 85,748,721--------------------------------------------------------------------------
Total liabilities and shareholders' equity 156,349,095 144,980,196----------------------------------------------------------------------------------------------------------------------------------------------------
Interim Consolidated Statements of Operations-------------------------------------------------------------------------- Three months Three months ended ended March 31, Feb 28, 2008 2007--------------------------------------------------------------------------
Total revenues $ 29,451,410 $ 9,090,750Total cost of sales (13,525,555) (5,173,055)--------------------------------------------------------------------------Operating profit 15,925,855 3,917,695G&A and other expenses (1,871,873) (624,872)Unrealized loss on derivative instrument (12,443,884) -Other items 1,665,499 (1,873)--------------------------------------------------------------------------Earnings before income taxes 3,275,597 3,290,950Current income tax (1,565,655) -Future income tax (1,220,363) ---------------------------------------------------------------------------Earnings for the year 489,579 3,290,950----------------------------------------------------------------------------------------------------------------------------------------------------
EPS - Basic 0.01 0.04EPS - Diluted 0.01 0.04----------------------------------------------------------------------------------------------------------------------------------------------------
Capstone will host a conference call on Wednesday, April 30 at 8:00 a.m. Pacific Time (11:00 AM Eastern Time) to discuss these results. The conference call may be accessed by dialing 1.866.365.1119 in North America or 1.416.849.7329 internationally, please ask for the Capstone Mining Corp. conference call. The conference call will be archived for later playback until May 7, 2008 and can be accessed by dialing 1.866.501.5559 and the passcode is 21270030#.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.9 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
Vancouver, BC – Capstone Mining Corp. (“Capstone” or the “Company”) announces that the Company has been included in the S&P/TSX Global Mining Index launched on June 12th, 2007, as part of publicly traded international mining companies. Capstone will be included in this key index beginning on June 23, 2008.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the Cozamin copper-silver-zinc-lead mine located in Zacatecas State, Mexico. Capstone has approximately 82.3 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
Jul 09, 2008 08:30 ET Capstone Announces Production and Sales for the Second Quarter of 2008
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 9, 2008) - Capstone Mining Corp. ("Capstone") (TSX:CS) is pleased to report production and sales results for the second quarter of 2008 from its Cozamin mine located in Zacatecas State, Mexico. With the expansion from 2,200 tpd to 3,000 tpd continuing, the Cozamin mine produced 206,034 tonnes during the second quarter of 2008.
Summarized results are shown below;
OPERATING AND SALES RESULTS(all figures unaudited)
-------------------------------------------------- Q2 - 2008 Q1 - 2008--------------------------------------------------
--------------------------------------------------Ore milled (tonnes) 206,034 202,656--------------------------------------------------
--------------------------------------------------Copper production (lbs) 6.7M 6.0M--------------------------------------------------Copper grade (%) 1.66 1.59--------------------------------------------------Copper recovery (%) 88.9 84.2--------------------------------------------------Copper sales (lbs) 6.8M 6.9M--------------------------------------------------Average Copper price(i) $3.80 $3.59--------------------------------------------------
--------------------------------------------------Zinc production (lbs) 2.9M 2.3M--------------------------------------------------Zinc grade (%) 1.32 1.35--------------------------------------------------Zinc recovery (%) 49.0 40.6--------------------------------------------------Zinc sales (lbs) 2.9M 0.7M--------------------------------------------------Average Zinc price(i) $0.91 $1.21--------------------------------------------------
--------------------------------------------------Lead production (lbs) 1.5M 1.7M--------------------------------------------------Lead grade (%) 0.56 0.65--------------------------------------------------Lead recovery (%) 59.7 60.2--------------------------------------------------Lead sales (lbs) 2.0M 1.3M--------------------------------------------------Average Lead price(i) $1.00 $1.33--------------------------------------------------
--------------------------------------------------Silver production (oz's) 330,000 338,000--------------------------------------------------Silver sales (oz's) 343,000 306,000--------------------------------------------------Silver price $8.40 $8.40--------------------------------------------------
(i) Average prices used on provisional invoices during the quarter.
The second quarter financial results will be reported after market close on Tuesday, July 29, 2008. Conference call details will follow under a separate press release.
VANCOUVER, B.C. – Capstone Mining Corp. (“Capstone”) announces that it intends to make a normal course issuer bid (the "Bid"), to purchase, through the facilities of the Toronto Stock Exchange (the “TSX”), certain of its outstanding common shares, subject to the acceptance of the TSX. As at June 30, 2008, there were 82,451,076 common shares issued and outstanding.
The number of common shares to be purchased through the facilities of the Exchange during the period of the Bid from July 17, 2008 to July 16, 2009 will not exceed 7,992,037 Common Shares, or approximately 10% of the public float outstanding on June 30, 2008, namely 82,451,076 Common Shares. Daily purchases will be limited to 62,940 common shares, other than block purchase exceptions. Common shares purchased pursuant to the Bid will be cancelled.
Capstone believes that the market price of the common shares may, at certain times throughout the duration of the normal course issuer bid, be undervalued. The purchase of the common shares will increase the book value per common shares thereby resulting in share value appreciation for shareholders.
In the preceding 12 month period, Capstone purchased 1,519,500 of its common shares at a weighted average price of $2.64 per share under a normal course issuer bid.
Super Ergebnisse, Aktienrückkaufprogramm, relativ kleiner Freefloat..............aber irgendwer will den Kurs unten halten
CAPSTONE REPORTS RECORD REVENUES OF $35.3 MILLION AND
RECORD OPERATING PROFIT OF $19 MILLION
FOR THE SECOND QUARTER
July 30, 2008
Vancouver, B.C. – Capstone Mining Corp. (“Capstone”) announces its financial results for the second 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 revenues of $35.3 million. The average realized price for sales of copper, zinc, lead and silver in the quarter was $3.80/lb, $0.91/lb, $1.00/lb and $8.40/oz respectively.
Record operating profit of $19 million or $0.23 per share.
Record cash flows from operations of $17.8 million or $0.22 per share.
Record earnings before income taxes of $16.7 million or $0.20 per share and record earnings after taxes were $12.2 million or $0.15 per share.
Copper production during the quarter was a record 6.7 million lbs compared with 6.0 million lbs for the three months ended March 31, 2008.
At June 30, 2008, Capstone had cash of $48.7 million, working capital of $64.3 million and no bank debt.
Copper cash costs for the quarter were $0.90/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 $1.29/lb.
Q2 - 2008
Q1 - 2008
Revenue
$35.3M
$29.5M
Copper
$27.9M
$24.6M
Zinc
$2.6M
$0.6
Lead
$1.8M
$1.7M
Silver
$2.9M
$2.6M
Operating profit
$19M
$15.9M
Earnings (before taxes)
$16.7M
$3.3M
EPS (before taxes)
$0.20
$0.04
Earnings (after taxes)
$12.2M
$0.5M
EPS
$0.15
$0.01
Cozamin Mine
Q2 - 2008 Production and Sales Highlights
Capstone produced the following metals during the quarter.
6.7 million pounds of copper
2.9 million pounds of zinc
1.5 million pounds of lead
330,000 ounces of silver
Concentrate sales for the quarter contained;
6.8 million pounds of copper
2.9 million pounds of zinc
2.0 million pounds of lead
344,000 ounces of silver
Concentrate inventory at June 30, 2008 was 6,788 DMT (containing 1 million pounds of copper, 3 million pounds of zinc and 0.2 million pounds of lead).
June 30, 2008 Production Results and Forecast for 2008 and 2009
2008 (F)
2009 (F)
Total tons milled
850,000
1,000,000
Copper (payable lbs)
30,000,000
40,000,000
Silver (payable ounces)
1,300,000
1,500,000
Zinc (payable lbs)
9,000,000
10,000,000
Lead (payable lbs)
5,100,000
5,000,000
The following table is a summary of the actual operating statistics for the three months ended June 30, 2008 and the three months ended May 31, 2007.
Q2 - 2008
3 months ended
May 31, 2007
Total tons mined
206,034
131,325
Tons of ore milled
202,898
112,277
Copper grade (%)
1.66
1.65
Zinc grade (%)
1.32
1.65
Silver grade (g/t)
63
71
Lead grade (%)
0.56
0.6
Copper recovery (%)
88.9
85.7
Zinc recovery (%)
49
43
Silver recovery (%)
77.3
68.1
Lead recovery (%)
59.7
48
Copper production (million DMT lbs)
6.7
3.5
Zinc production (million DMT lbs)
2.9
1.6
Silver production (‘000 ounces)
330
174
Lead production (million DMT lbs)
1.5
0.6
Note: Silver reports to all concentrates.
Second Quarter 2008 Highlights
Copper
Copper in concentrate produced during the quarter was 6.7 million pounds of copper, three months ended May 31, 2007 was 3.5 million.
Copper concentrate sales for the quarter were 15,099 dry metric tons (“DMT”), containing 6.8 million pounds of copper, three months ended May 31, 2007 was 2.9 million.
The average price for sales of copper in the period was $3.80/lb.
Copper concentrate inventory at June 30, 2008 was 2,387 DMT, a decrease in inventory from the 2,919 DMT of concentrate on hand at March 31, 2008.
Silver in the copper concentrate produced during the period totaled 251,000 ounces.
Zinc
Zinc in concentrate produced during the quarter was 2.9 million pounds of zinc, three months ended March 31, 2007 was 1.6 million.
Zinc sales for the period were 4,673 DMT, containing 2.9 million pounds of zinc, three months ended May 31, 2007 was 1.5 million.
The average price for sales of zinc in the period was $0.91/lb.
Zinc concentrate inventory at June 30, 2008 was 4,283 DMT, a decrease in inventory from the 5,375 DMT of concentrate on hand at March 31, 2008.
Silver in the zinc concentrate produced during the period totaled 15,000 ounces.
Lead
Lead in concentrate produced during the quarter was 1.5 million pounds of lead, three months ended May 31, 2007 was 0.6 million.
Lead concentrate sales for the period were 1,546 DMT, containing 2.0 million pounds of lead, three months ended May 31, 2007 was 0.7 million.
The average price for sales of lead in the period was $1.00/lb.
Lead concentrate inventory at June 30, 2008 was 118 DMT, a decrease in inventory from the 562 DMT of concentrate on hand at March 31, 2008.
Silver in the lead concentrate produced during the period totaled 64,000 ounces.
Mill Expansion Project
Capital expenditures are budgeted at $12 million to further expand the facility to 3,000 tpd which is expected to be completed by the fourth quarter this year. $6 million has been spent to date. The new powerline and substation will be completed in the first half of 2009 but will not affect meeting the expanded production rate.
Labour
There were 3 minor lost time accidents during the period from both operations and construction. The number of personnel at the end of the period was 643, of which approximately 125 were contractors related to the expansion project and 33 were contractors related to the exploration drilling.
Q2 - Actual Sales and Costs
Q2 – 2008
3 Months
Ended
May 31, 2007
Copper (million lbs)
6.8
2.9
Zinc (million lbs)
2.9
1.5
Lead (million lbs)
2.0
0.7
Silver (‘000 ounces)
344
143
Copper production costs, net of by product credits,
per lb of copper
$0.53
$0.20
Off property costs for transport, smelting and refining
per lb of copper
$0.37
$0.41
Total cash costs of production per lb of copper
$0.90
$0.61
Financial Results
The information in this news release and the selected financial information contained in the following pages should be read in conjunction with the Interim Consolidated Financial Statements and Management Discussion and Analysis for the three months ended June 30, 2008, which will be available at Capstone’s website at www.capstonemining.com and at www.sedar.com.
The Company’s operating profit for the three months ended June 30, 2008 was $19 million or $0.23 per share compared to operating profit of $6.6 million or $0.08 per share for the three months ended May 31, 2007. The Company’s net earnings for June 30, 2008 were $12.2 million or $0.15 per share compared to $5.1 million or $0.06 per share for May 31, 2007.
The Company reported revenues for the three month period of $35.3 million (May 31, 2007 - $14.7 million). Revenues consisted of copper concentrate sales of $27.9 million, zinc concentrate sales of $2.6 million, lead concentrate sales of $1.8 million and silver concentrate sales of $2.9 million.
Cost of sales for the three month period was $8.0 million (May 31, 2007 - $4.2 million), treatment and transportation charges were $5.6 million (May 31, 2007 - $2.4 million), royalty charges were $1.0 million (May 31, 2007 - $0.3 million) and depletion was $1.4 million (May 31, 2007 - $1.0 million).
For the three month period ended June 30, 2008, the Company recorded an unrealized loss related to mark-to-market on the outstanding derivative contracts in the amount of $1.0 million (May 31, 2007 - $Nil) related to our forward copper sales. Forward copper sales average price through 2012 is $3.14.
Glencore International AG and Trafigura Beheer B.V. purchases the concentrates produced by the Cozamin mine pursuant to the terms of a written contract.
Capstone Mining Corp.
Selected Financial Information
Interim Consolidated Balance Sheets
June 30,
Dec 31,
2008
2007
Cash
$ 48,722,180
$ 25,114,753
Concentrate receivables
16,221,911
9,799,634
Inventory
5,421,540
5,428,842
Investment in Silverstone Resources Corp.
40,906,497
39,022,891
Property, plant and equipment
51,445,377
45,655,190
Other assets
13,024,936
19,958,886
Total assets
175,742,441
144,980,196
Deferred revenue
38,551,047
41,398,281
Other liabilities
36,296,797
17,833,194
Total liabilities
74,847,844
59,231,475
Shareholder’s equity
100,894,597
85,748,721
Total liabilities and shareholders’ equity
175,742,441
144,980,196
Interim Consolidated Statements of Operations
Three months ended
June 30,
Three months
ended
May 31,
2008
2007
Total revenues
$ 35,254,233
$ 14,727,403
Total cost of sales
(16,238,275)
(8,078,068)
Operating profit
19,015,958
6,649,335
G&A and other expenses
(1,662,205)
(2,713,503)
Other items
(690,763)
1,188,079
Earnings before income taxes
16,662,990
5,123,911
Current income tax
(3,455,884)
-
Future income tax
(1,024,744)
-
Earnings for the year
12,182,362
5,123,911
EPS – Basic
0.15
0.06
EPS – Diluted
0.14
0.06
Capstone will host a conference call on Wednesday, July 30 at 8:30 a.m. Pacific Time (11:30 AM Eastern Time) to discuss these results. The conference call may be accessed by dialing 1.866.365.1119 in North America or 1.416.849.7329 internationally, please ask for the Capstone Mining Corp. conference call. The conference call will be archived for later playback until August 13, 2008 and can be accessed by dialing 1.866.501.5559 and the passcode is 21279178#.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 82.4 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
Sep 08, 2008 09:13 ETSherwood & Capstone Announce Combination to Create Intermediate Copper Producer
Management Teams to Combine Assets, Skills & Production in a Highly Complementary Transaction
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2008) - Sherwood Copper Corporation (TSX VENTURE:SWC)(TSX VENTURE:SWC.DB) and Capstone Mining Corp. (TSX:CS) have entered into a Letter Agreement to combine, by way of a plan of arrangement or other form of business combination, to create a well-funded, low-cost, growth-oriented, copper company with two producing mines in mining friendly jurisdictions in North America. The two companies have agreed to combine on an "at-market" basis whereby each Sherwood shareholder will receive 1.566 shares of Capstone (based on the 20-day volume weighted average share price of the two companies). The boards of directors of Sherwood and Capstone have unanimously approved the terms of the transaction.
Transaction Rationale
Capstone and Sherwood believe this merger will realize significant benefits for each of the company's shareholders, including:
- Significant production growth, with forecast production of 85 million pounds of copper in 2008, increasing to 110 million pounds in 2009, with significant by-products of gold, silver, lead and zinc, as previously disclosed;
- Low cost production with forecast total cash costs of under US$1.00 per pound of payable copper in 2008 and 2009, including all off-site costs and net of by-product credits, generating significant free cash flow to fund corporate growth opportunities;
- An aggressive, growth oriented company focused on maximizing the value of its existing high grade mines, Cozamin and Minto, through sequential increases in resources, reserves and production; the pursuit of value through continual improvements at its operations; the advancement of the high grade Kutcho project towards a production decision and accretive merger and acquisition opportunities.
- Diversification of operational and geographic risk with the high grade open pit Minto copper-gold-silver mine in Canada and the high grade, underground Cozamin copper-silver-zinc-lead mine in Mexico.
- Increased market capitalization that should improve trading liquidity for shareholders of the combined company.
- Continued focus on optimization and cost reduction strategies, with the Cozamin mill throughput set to increase to 3,000 tonnes per day and Minto to 3,200 tonnes per day by the end of 2008. Minto will also reduce exposure to high fuel costs for electrical power generation by connecting to grid power in Q4/08.
- Excellent exploration upside at both the Cozamin and Minto mines, where high grade resources have been increased by 47% and 140%, respectively, over the past two years, exclusive of the results from major exploration programs completed in 2008, many of the results for which are still pending. Sherwood completed 120 holes at Minto and 81 holes at Kutcho in 2008, the results for approximately half of which remain to be reported, while Capstone has completed 7,000m of underground and 25,000m of surface drilling at Cozamin, the results of which are to be incorporated into an updated resource and reserve estimate.
- A combined management team with complementary experience and a proven track record of building and profitably operating mines to create shareholder wealth, supported by a seasoned and experienced board of directors.
- Exposure to the potential development of the high grade Kutcho copper-zinc-gold-silver project in northwestern British Columbia, where a preliminary economic assessment (see Sherwood news release dated June 12, 2008) indicated potential for production of 45 million pounds of payable copper per year at a cash cost of less than $1.00 per pound (net of by-product credits) and outlined several opportunities for further project enhancements.
- Strong balance sheet to support growth strategies.
- Enhanced market exposure for Sherwood's shareholders through access to Capstone's TSX listing and increased weighting in the TSX composite index.
- Broadened research coverage for Capstone's shareholders through Sherwood's analyst coverage, presently at nine firms across the spectrum of Canadian brokerages.
Capstone and Sherwood further believe that their shareholders will benefit from the tax-effective combination of the two companies and allow for participation in the upside from the significantly enhanced business platform.
Board & Management
The board and management structure of the combined company will draw on the expertise of both companies and the board will include four current Sherwood directors, one current director of Capstone and one nominee of Capstone. Colin K. Benner has agreed to serve as non-executive Chairman. Darren Pylot (currently President & CEO of Capstone) will become Vice Chairman and CEO and Stephen Quin (currently President & CEO of Sherwood) will become President & COO of the combined company. Richard Godfrey (currently Chief Financial Officer of Sherwood) will become Chief Financial Officer of the combined company; other senior management from both companies will be integrated into the senior management of the combined company, retaining many of the same responsibilities. Capstone and Sherwood intend to capitalize on the success of their respective strategies for the operation, expansion and exploration of the high grade Cozamin and Minto copper mines, located in Zacatecas, Mexico, and Yukon, Canada.
"Capstone and Sherwood have each looked at numerous merger and acquisition possibilities over the past year and have concluded that this is the most compelling consolidation opportunity in the sector," said Darren Pylot, President & CEO of Capstone. "The combined management teams are a great fit, with complementary skills and experience and a common focus on acquiring and operating high grade, low cost operations in mining-friendly, politically stable jurisdictions. Operationally, the high grade Cozamin and Minto copper mines are tremendous assets, and each is undergoing a third expansion program and, combined, should produce more than 100 million pounds of copper at cash cost of less than a dollar per pound in 2009. These operations provide an excellent platform for future growth."
"The combination of Sherwood and Capstone is a highly complementary transaction," said Stephen Quin, Sherwood's President & CEO. "Capstone's strong cash and investments and modest copper hedging program is complementary to Sherwood's more leveraged balance sheet and larger copper hedging program (through the end of 2011). Both Sherwood and Capstone have production expansion opportunities at their Minto and Cozamin mines, which we aim to advance as soon as practicable, and Sherwood offers significant organic growth potential through continued exploration success at Minto and a high grade development opportunity at its Kutcho copper project."
Transaction
Capstone and Sherwood anticipate that the transaction will be carried out by way of statutory plan of arrangement of Sherwood whereby Capstone would acquire all of the issued shares of Sherwood and Sherwood would become a wholly-owned subsidiary of Capstone (the "Arrangement"). The transaction would be subject to certain standard conditions including that not less than 66 2/3% of the issued and outstanding shares of Sherwood being voted at a shareholders meeting being in favour of the transaction. However, the parties may consider an alternative form of transaction, such as an amalgamation or other form of business combination, as mutually determined by Capstone and Sherwood.
Full details of the offer will be included in the formal Arrangement Agreement and Management Information Circular to be filed with the regulatory authorities and mailed to Sherwood shareholders in accordance with applicable securities laws. Under the Arrangement Capstone will acquire all of the issued and outstanding shares of Sherwood in consideration for the issue of Capstone shares on the basis of 1.566 Capstone shares for every Sherwood share. The Arrangement is an "at market" transaction with no premium to either party, based on the 20-day volume weighted average price of each of Capstone and Sherwood to September 5, 2008. Based on the current Sherwood shares outstanding, the transaction would involve the issuance of approximately 84 million Capstone shares, which equates to 105% of Capstone's shares outstanding.
The proposed transaction is expected to be completed before the end of 2008 and is subject to certain customary conditions, including receipt of all necessary court and shareholder approvals and dissent rights to the Arrangement shall not have been exercised prior to the effective date of the Arrangement by holders of Sherwood shares representing in the aggregate 5% or more of outstanding Sherwood shares at such time. It is anticipated that a special meeting of shareholders of Sherwood (the "Meeting") will be held at a time yet to be determined to approve the proposed transaction.
Under the terms of the Arrangement, each Sherwood shareholder will be entitled to 1.566 Capstone shares for every one Sherwood share held. Sherwood's outstanding options and warrants adjusted in accordance with their terms so that the number of Capstone shares received upon exercise and the exercise price are adjusted proportionately to reflect the exchange ratio described above.
The transaction is subject to the consent of Sherwood's lenders under the provisions of its debt facilities.
Following a change of control event in Sherwood, Capstone must, within 30 days of the occurrence of the change of control, make an offer to redeem all of Sherwood's convertible debentures then outstanding. The offer to purchase must be made at a purchase price equal to 101% of the principal amount of the debentures, plus accrued and unpaid interest thereon, if any, up to but excluding the date set for the completion of the offer to purchase. Capstone has had indications of interests from a financial institution in providing a debt facility up to the amount of the convertible debentures, should Capstone decide it wishes to avail itself of this option.
Capstone has engaged Scotia Capital as its financial adviser and Blake, Cassels & Graydon LLP as its legal advisor in respect of this transaction. Sherwood has engaged Haywood Securities Inc. as its financial advisor and Gowling Lafleur Henderson LLP as its legal advisor in respect of this transaction.
Conference Call
Capstone and Sherwood will hold a conference call at 11:00 AM Toronto time (8:00 AM Vancouver time) on Tuesday September 9, 2008 to allow shareholders, securities analysts and investors the opportunity to hear management discuss the business combination outlined herein. The call can be accessed by dialling (toll free) 1-866-334-3876 or at 416-849-4292. The call will also be webcast by Vcall; the call and presentation can be accessed at Capstone's or Sherwood's websites at www.capstonemining.com or www.sherwoodcopper.com, respectively. The call will also be available for replay by dialling (toll free) 1-866-245-6755 or 416-915-1035 (Passcode 130485) for 14 days.
About Capstone Mining
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. The Cozamin Mine produced 6.7 million pounds of copper at a total cash cost of US$0.90 per pound in the three months ended June 30, 2008. Capstone has approximately 80.3 million shares outstanding and is well financed with no bank debt, and approximately US$100 million in working capital and marketable securities as of June 30, 2008, based on current share prices.
Additional information on Capstone Mining and its Cozamin Mine is available on Capstone's website at http://www.capstonemining.com.
About Sherwood Copper
Sherwood Copper owns 100% of the high grade Minto copper-gold mine in Yukon, Canada, which was built on budget and ahead of schedule in 2007. The Minto Mine is one of the highest-grade open pit copper-gold mines in the world, and is forecast to be a low cost producer. With 140% growth in resources in two years, followed by a successful 2008 drilling program, Sherwood plans to evaluate options for further significant production expansions. Sherwood also has a 100% interest in the high grade Kutcho copper-zinc project in BC, Canada, which it is advancing towards production. The Minto Mine produced 12.8 million pounds of copper at a total cash cost of C$0.96 per pound in the three months ended June 30, 2008. Sherwood has approximately 53.8 million shares outstanding and, at June 30, 2008, had approximately $51.7 million in project related debt, $43.6 million in convertible debentures, and $8.1 million drawn against a corporate credit facility, after repaying US$16.9 million in the first six months of 2008.
Additional information on Sherwood and its Minto Mine can be obtained on Sherwood's website at http://www.sherwoodcopper.com.
Accordingly, readers should not place undue reliance on forward looking statements.
Neither the TSX Venture Exchange nor the TSX any accept responsibility for the adequacy or accuracy of this press release.
For more information, please contact
Capstone Mining Corp.
Darren Pylot
President & CEO
(604) 684-8894 or 1-866-684-8894
or
Capstone Mining Corp.
Chris Tomanik
(604) 684-8894 or 1-866-684-8894
Sherwood and Capstone Sign Combination Agreement
- Another Milestone in the creation of a High Grade, Low Cost,
Growth Oriented Copper Producer -
October 10, 2008
VANCOUVER, BRITISH COLUMBIA - Sherwood Copper Corporation (SWC: TSX-V) and Capstone Mining Corp. (CS: TSX) today announced that, further to their joint news releases dated September 8 and September 18, 2008 respectively, the companies have entered into a combination agreement dated as of October 9, 2008 pursuant to which the companies will combine, by way of plan of arrangement, to create a well-funded, low-cost, growth-oriented, copper company with two producing mines in mining friendly jurisdictions in North America. A copy of the combination agreement is available on SEDAR at www.sedar.com under the companies' respective profiles.
As previously disclosed, the special meeting of Sherwood’s shareholders will be held in the offices of Sherwood’s counsel, Dumoulin Black LLP, on the 10th floor of 595 Howe Street, Vancouver BC at 10:00 AM on November 14, 2008. Additional information will be provided in the information circular to be mailed to Sherwood’s shareholders in late October 2008.
About Capstone Mining
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico where a recently completed drill program is anticipated to result in significantly increased mineral reserves. The Cozamin Mine produced 6.7 million pounds of copper in concentrate at a total cash cost of US$0.90 per pound in the three months ended June 30, 2008 and is currently commissioning its mill expansion to 3,000 tonnes per day of throughput. Capstone has approximately 80.3 million shares outstanding and is well financed with no bank debt and an approximately 22% holding in Silverstone Resources Corp.
Additional information on Capstone Mining and its Cozamin Mine is available on Capstone’s website at http://www.capstonemining.com.
About Sherwood Copper
Sherwood Copper owns 100% of the high grade Minto copper-gold mine in Yukon, Canada, which was built on budget and ahead of schedule in 2007. The Minto Mine is one of the highest-grade open pit copper-gold mines in the world, and is forecast to be a low cost producer. The Minto Mine produced 12.8 million pounds of payable copper at a total cash cost of C$0.96 per pound in the three months ended June 30, 2008 and is currently commissioning its Phase 3 mill expansion to 3,200 tonnes per day of throughput. With 140% growth in mineral resources in 2006 and 2007, followed by a successful 2008 drilling program, Sherwood is preparing new mineral resource and reserve estimates that are expected to upgrade and increase the mineral resources and reserves at the mine, and plans to evaluate options for further significant increases in mill throughput. Sherwood also has a 100% interest in the high grade Kutcho copper-zinc project in BC, Canada, which it is advanc! ing towards production.
Additional information on Sherwood and its Minto Mine can be obtained on Sherwood’s website at http://www.sherwoodcopper.com.
For further information about Capstone, please contact:
Darren Pylot, President & CEO
or
Chris Tomanik or Mark Patchett at (604) 684-8894 or
(866) 684-8894 info@capstonemining.com
For further information about Sherwood, please contact :
Stephen Quin, President & CEO
or
Neil MacRae at (604) 687-7545 or 1 (888) 338-2200 info@sherwoodcopper.com
Neither the TSX Venture Exchange nor the TSX any accept responsibility for the adequacy or accuracy of this press release
CAPSTONE REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER
Capstone Mining Corp. has released its financial results for the third 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:
Earnings before income taxes for the quarter ended Sept. 30, 2008, were $18.4-million or 22 cents per share compared with earnings before income taxes of $12.2-million or 15 cents per share in the three months ended Aug. 31, 2007.
Earnings for the quarter ended Sept. 30, 2008, were $16.1-million or 20 cents per share compared with earnings of $9.7-million or 12 cents per share in the three months ended Aug. 31, 2007.
Cash flows from operations for the quarter ended Sept. 30, 2008, were $9.0-million or 11 cents per share compared with $8.1-million or 10 cents per share for the three months ended Aug. 31, 2007.
Copper production during the quarter was 6.7 million pounds compared with 4.9 million pounds for the three months ended Aug. 31, 2007.
At Sept. 30, 2008, Capstone had cash of $43.1-million, working capital of $57.4-million and no bank debt.
The company purchased 2,323,900 common shares which were cancelled.
Current forward sales of 24.5 million pounds of copper with a weighted average price of $3.15 valued at approximately $30-million today.
Copper cash costs for the quarter were $1.29 per pound of copper (net of byproduct credits and including smelter, refining, transportation and all site costs). Increased costs were a result of lower byproduct credits due to less zinc/lead sales, a writedown of zinc inventory to fair market value and higher treatment charges due to lower than expected concentrate grade in the third quarter.
Total costs (the total of cash costs, royalty, depletion and amortization, and accretion) for the quarter were $1.68 per pound.
Capstone and Sherwood Copper Corporation signed a combination agreement to create a well-financed, low-cost, growth-oriented copper company.
Cozamin mine
Third quarter 2008 production and sales highlights:
Capstone produced the following metals during the quarter: 6.7 million pounds of copper, 2.6 million pounds of zinc, 1.6 million pounds of lead and 331,000 ounces of silver.
Concentrate sales for the quarter contained: six million pounds of copper, 1.9 million pounds of zinc, 900,000 pounds of lead and 259,000 ounces of silver.
Concentrate inventory at Sept. 30, 2008, was 6,001 dry metric tonnes (containing 1.2 million pounds of copper, 2.5 million pounds of zinc and 800,000 pounds of lead).
Third quarter 2008 highlights
Copper:
Copper in concentrate produced during the quarter was 6.7 million pounds of copper (three months ended June 30, 2008, was also 6.7 million pounds).
Copper concentrate sales for the quarter were 13,409 dry metric tonnes, containing six million pounds of copper (three months ended June 30, 2008, totalled 6.8 million pounds of copper).
The average price for sales of copper in the period used for provisional invoices was $3.32 per pound, subsequently adjusted to Sept. 30, 2008, price of $2.91.
Copper concentrate inventory at Sept. 30, 2008, was 2,386 dry metric tonnes, equal to the 2,387 dry metric tonnes of concentrate on hand at June 30, 2008.
Silver in the copper concentrate produced during the period totalled 249,000 ounces.
Zinc:
Zinc in concentrate produced during the quarter was 2.6 million pounds of zinc (three months ended June 30, 2008, totalled 2.9 million pounds).
Zinc sales for the period were 2,516 dry metric tonnes, containing 1.9 million pounds of zinc (three months ended June 30, 2008, totalled 2.9 million pounds).
The average price for sales of zinc in the period was 78 cents per pound.
Zinc concentrate inventory at Sept. 30, 2008, was 3,035 dry metric tonnes, a decrease in inventory from the 4,283 dry metric tonnes of concentrate on hand at June 30, 2008.
Silver in the zinc concentrate produced during the period totalled 9,000 ounces.
Lead:
Lead in concentrate produced during the quarter was 1.6 million pounds of lead (three months ended June 30, 2008, totalled 1.5 million pounds).
Lead concentrate sales for the period were 703 dry metric tonnes, containing 900,000 pounds of lead (three months ended June 30, 2008, totalled two million pounds).
The average price for sales of lead in the period was 85 cents per pound.
Lead concentrate inventory at Sept. 30, 2008, totalled 580 dry metric tonnes, an increase in inventory from the 118 dry metric tonnes of concentrate on hand at June 30, 2008.
Silver in the lead concentrate produced during the period totalled 73,000 ounces.
Expansion
The company continued with its expansion plans at the Cozamin mine in the quarter, targeting production of 3,000 tonnes per day in the fourth quarter. Mill expansion including installation of column cells for cleaner flotation in both the copper and lead circuits was completed and brought on-line in September. A second generator was purchased to provide backup for the existing generator which provides the incremental power needed for the expansion until the new power line is completed. Engineered cost estimates have been received for the power line and negotiations are continuing with landowners regarding both possible routings.
The underground ramp to level 9 was completed during September. The ramp is approximately two months behind the company's internal schedule due to the delayed delivery of both a jumbo drill and additional scoop purchased as mining equipment for expediting ramp development. Ore production was reduced in September in the mine to allow the large quantity of waste accumulated from the ramp development to be removed from the mine. Ramp development to the 10 level was completed at the end of October and will allow the mine to commence operating at the 3,000 tonnes per day in late November. Ramp development will continue to the 12 level where an underground crusher and new loading pocket will be installed in the first half of 2009.
Exploration
At the Cozamin project during the third quarter, the company drilled 6,917 metres of HQ core in 23 holes from surface and 2,327 m of NQ core in six holes from underground. This brings the total metres drilled since late 2007 to 42,944 m in 142 holes. The surface drilling program has been completed for 2008 and one drill remains underground where additional holes will augment resources in the mine. The company has spent $4.3-million on this program to date. The data from all the surface and underground holes up to Sept. 15, 2008, will be incorporated into an updated resource estimate at Cozamin. This work will be undertaken by an independent geologist and the resource report will be used to provide guidance for a revised mine plan and updated reserve estimate that are planned for the first quarter of 2009.
Labour
There were three minor lost time accidents during the third quarter. The number of personnel at the end of the quarter totalled 680 compared with 643 at the end of June, of which approximately 100 were contractors related to the expansion project and 30 were contractors related to the exploration drilling.
Business combination with Sherwood Copper
On Oct. 9, 2008, the company and Sherwood Copper entered into a combination agreement pursuant to which the companies will combine, by way of plan of arrangement, to create a well-financed, low-cost, growth-oriented copper company with two producing mines in mining friendly jurisdictions in North America.
The company agreed to acquire all of the outstanding common shares and options to purchase common shares of Sherwood. The Sherwood shareholders will receive 1.566 common shares of the company for each Sherwood common share. Each Sherwood convertible debenture, warrant and stock option which gives the holder the right to acquire common shares of Sherwood will be exchanged for a convertible debenture, warrant or stock option which gives the holder the right to acquire common shares of the company on the same basis as the shareholders of Sherwood, with all other terms of such convertible debentures, warrants and options (such as term and expiry) remaining unchanged.
As a result of the proposed transaction, the combined company will be held approximately 51 per cent by Sherwood shareholders and approximately 49 per cent by the company's shareholders. Accordingly, this business combination is expected to be accounted for as a reverse takeover under Canadian generally accepted accounting principles, with Sherwood being identified as the acquirer and the company as the acquiree.
The transaction is subject to the approval of Sherwood's shareholders. The special meeting of Sherwood's shareholders will be held on Nov. 14, 2008.
Financial results
The company's net earnings for the quarter ended Sept. 30, 2008, were $16.1-million or 20 cents per share compared with $9.7-million or 12 cents per share for Aug. 31, 2007. The company's operating profit for the three months ended Sept. 30, 2008, was $2.9-million or four cents per share compared with operating profit of $10.0-million or 12 cents per share for the three months ended Aug. 31, 2007.
The company reported revenues for the three-month period of $17.6-million (Aug. 31, 2007 -- $18.3-million). Revenues consisted of copper concentrate sales of $13.3-million (net of $7.1-million negative price adjustment), zinc concentrate sales of $1.4-million, lead concentrate sales of $800,000 and silver concentrate sales of $2.0-million.
Cost of sales for the three-month period was $8.2-million (Aug. 31, 2007 -- $4.3-million), treatment and transportation charges were $3.9-million (Aug. 31, 2007 -- $3.8-million), royalty charges were $800,000 (Aug. 31, 2007 -- $600,000), and depletion was $1.4-million (Aug. 31, 2007 -- $600,000).
For the three-month period ended Sept. 30, 2008, the company recorded an unrealized gain related to mark-to-market on the outstanding derivative contracts in the amount of $16.8-million (Aug. 31, 2007 -- nil).
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
Three months Three months
ended ended
Sept. 30, Aug. 31,
2008 2007
Total revenues $ 17,552,582 $ 18,318,372
Total cost of sales (14,603,590) (8,299,496)
------------ ------------
Operating profit 2,948,992 10,018,876
General and
administrative and other
expenses (392,746) 2,183,986
Other items 15,814,594 2,584
------------ ------------
Earnings before income taxes 18,370,840 12,205,446
Current income tax (971,553)
Future income tax (1,253,935) (2,479,593)
------------ ------------
Earnings for the year 16,145,352 9,725,853
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EPS -- basic 0.20 0.12
EPS -- diluted 0.19 0.11
Conference call
Capstone will host a conference call on Friday, Nov. 7 at 8:30 a.m. (Pacific Time) (11:30 a.m. (Eastern Time)) to discuss these results. The conference call may be accessed by dialling 1-866-365-1119 in North America or 1-416-849-7329 internationally. Please ask for the Capstone Mining conference call. The conference call will be archived for later playback until Friday, Nov. 14, 2008, and can be accessed by dialling 1-866-501-5559 and the passcode is 21287742, followed by the number sign.
Sherwood shareholders approve merger with Capstone
2008-11-14 14:35 ET - News Release
See News Release (C-SWC) Sherwood Copper Corp
Mr. Stephen Quin of Sherwood Copper reports
SHERWOOD SHAREHOLDERS OVERWHELMINGLY APPROVE BUSINESS COMBINATION WITH CAPSTONE; 99.9% OF SHERWOOD SHAREHOLDERS VOTE FOR CREATION OF GROWTH ORIENTED, HIGH GRADE COPPER PRODUCER
At the special meeting of Sherwood Copper Corp.'s shareholders held on Friday, Nov. 14, 2008, Sherwood's shareholders voted overwhelmingly in favour of the previously announced business combination, by way of plan of arrangement, with Capstone Mining Corp. Additional information concerning the arrangement is provided in Sherwood's information circular dated Oct. 15, 2008, which is available on SEDAR under Sherwood's profile.
At the meeting, a special resolution approving the arrangement was passed by an affirmative vote of over the required two-thirds of the total votes cast by Sherwood shareholders present in person and by proxy at the meeting. Specifically, 99.93 per cent of the votes cast in respect of the arrangement resolution voted in favour of the arrangement resolution and no notices of dissent were received by Sherwood.
The new Capstone
Combined under the name of Capstone Mining, Sherwood and Capstone will be a well-financed, low-cost, growth-oriented copper company with two producing high-grade copper mines in mining-friendly jurisdictions in North America. Both Capstone's Cozamin and Sherwood's Minto mines have undergone a series of expansions, recently completed, over the past two years, aimed at maximizing production and minimizing costs. The benefits of these expansions, of both resources and copper output, should be evident in 2009, as the full production capacity of the mines is realized.
Following on extensive infill and step-out drilling at both Cozamin and Minto, new resource estimates are in process, which are expected to result in increased reserves, supporting longer mine lives and, in the case of Minto, potential further increases in mill capacity. In addition, Sherwood's high-grade Kutcho copper project continues to be redesigned as a smaller, higher-grade project following significant improvements in the continuity of the high-grade copper mineralization in 2008.
Combined, the two companies, their operating mines, expansion potential, Kutcho development project and a recently enhanced balance sheet create an attractive base metal production entity, plus provides a platform for evaluating external growth opportunities where the new Capstone can lever off its mine building, operating, financing, exploration and project evaluation team.
Capstone connects Minto mine to Yukon electrical grid
2008-11-25 06:30 ET - News Release
Mr. Stephen Quin reports
CAPSTONE REPORTS MINTO MINE CONNECTED TO YUKON ELECTRICAL GRID
Capstone Mining Corp.'s Minto copper-gold mine in the Yukon was officially connected to Yukon Energy's electrical grid at a ceremony attended by the Premier of the Yukon, the Minister of Economic Development, the Minister of Energy Mines & Resources, and Stephen Quin, president and chief executive officer of Capstone.
"Connection to Yukon Energy's electrical grid represents the culmination of a two-year co-operative effort between the Minto mine, Yukon Energy, Yukon government and the three first nations along the path of the transmission line: Little Salmon Carmacks First Nation, Selkirk First Nation and Na-Cho Nyak Dun," said Mr. Quin. "The economic benefits of this project are widespread, with the construction effort having generated employment and opportunities for Yukon citizens and businesses, and now the grid is connected, lower energy costs are helping to enhance the economic viability of the Minto mine, the elimination of fuel purchases for power generation is keeping significant dollars within the Yukon economy, increased power sales of surplus hydro energy for Yukon Energy is supporting a recent application for reduced electricity rates to Yukoners while Yukon's electrical infrastructure is being enhanced, increased margins for the Minto mine are increasing the tax and royalty base for Yukon and Selkirk First Nation as deductible expenses are reduced, and the Minto mine and community of Pelly Crossing have been taken off diesel-generated power, thereby significantly reducing greenhouse gas emissions."
Electrical grid connection
The connection of the Minto mine to Yukon Energy's electrical grid completes a two-year process whereby the Minto mine and Yukon government made contributions toward the capital cost of extending the Yukon electrical grid approximately 80 kilometres north from Carmacks to Minto landing, and also involving the construction of three substations and a 27-kilometre dedicated spur line from Minto landing to the Minto mine at Minto's cost. "During this two-year period, the grid extension concept was conceived, negotiated, agreed, designed, assessed, permitted, approved, funded, constructed and commissioned," said Mr. Quin. "Considering this process involved Minto, Yukon Energy, Yukon government, three first nations, the Yukon Utilities Board and Yukon's first executive committee screening under the Yukon Environmental and Socio-economic Assessment Act, this timing is a reflection of the willing and supportive efforts by all parties, without which this rapid progress would not have been possible."
An application has been granted for the listing of $43.6-million principal amount of 5-per-cent convertible unsecured subordinated debentures of Capstone Mining Corp., which were originally issued pursuant to a prospectus dated Feb. 22, 2007, under the name of Sherwood Copper Corp. The debentures will be listed and posted for trading at the open on Thursday, Nov. 27, 2008.
Debenture symbol: CS.DB
Debenture Cusip No.: 14068G AA 2
Trading currency: Canadian dollars
Transfer agent and registrar: Computershare Trust Co. of Canada at its principal offices in Toronto and Vancouver
Other markets: The debentures have been listed for trading on the TSX Venture Exchange under the stock symbol SWC.DB since Feb. 28, 2007. The debentures will be delisted from the TSX-V on Nov. 27, 2008, upon commencement of trading on the TSX.
The debentures will at all times be represented by one or more global certificates issued in registered form to and held by CDS Clearing and Depository Services Inc. Individual certificates for debentures will not be issued. Such securities must be purchased, transferred, sold and surrendered for redemption or conversion directly through a participant in the book-entry system of CDS. The debentures will be quoted and traded on an accrued-interest basis, that is all bids, offers and trades of the debentures will reflect only the capital portion of the debentures and will not reflect accrued interest. Accrued interest must be reflected in the seller's and buyer's settlement amount, and must be reflected on the confirmation with clients.
Dec 10, 2008 12:44 ET Capstone Reports Final Drill Intercepts of Near Surface Copper-Gold at Minto Mine
Multiple, near-surface thick intercepts, including 1% Copper over 62m starting at 53m Down hole
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 10, 2008) - Capstone Mining Corp. (TSX:CS) today announced results for the final 28 drill holes from its 2008 exploration program at the high grade Minto copper-gold mine in the Yukon.
Highlights from this latest batch of results are tabulated below and include multiple, thick intercepts of near surface, good grade copper-gold mineralization at Ridgetop, included in which are significant sub-intervals of much higher grades. Complete assay results for all of the final twenty-eight holes reported herein are attached.
------------------------------------------------------------------------- Inter- Inter- Sil- From To val val Copper Gold verHole ID Target Area (m) (m) (m) (ft) (%) (g/t) (g/t)-------------------------------------------------------------------------08SWC-358 "Ridgetop East" 53.4 115.3 61.9 203.1 0.97 0.26 2.5------------------------------------------------------------------------- including 53.4 74.5 21.1 69.2 1.56 0.47 3.1------------------------------------------------------------------------- including 53.4 59.9 6.5 21.3 3.99 1.11 6.3------------------------------------------------------------------------- including 53.4 56.8 3.4 11.2 6.43 1.64 9.1------------------------------------------------------------------------- and 97.9 108.0 10.1 33.1 1.90 0.41 6.3------------------------------------------------------------------------- including 104.0 108.0 4.0 13.1 3.15 0.64 9.5-------------------------------------------------------------------------08SWC-359 "Ridgetop East" 39.2 99.8 60.6 198.8 0.72 0.16 1.5------------------------------------------------------------------------- including 39.2 56.1 16.9 55.4 1.04 0.09 1.5------------------------------------------------------------------------- and 78.9 99.8 20.9 68.6 1.04 0.38 2.8------------------------------------------------------------------------- including 78.9 85.7 6.8 22.3 2.12 0.82 5.1-------------------------------------------------------------------------
"These results wrap up a successful exploration program at the Minto Mine in 2008," said Stephen Quin, President & COO of Capstone Mining. "During the year, we expanded, upgraded and increased the confidence levels for the Area 2, Area 118 and Ridgetop deposits. These latest results both infill and expand the Ridgetop deposit to the east, defining two high grade zones of copper-gold mineralization within a broader envelope of more moderate grades, typically 40-60 metres thick, and ranging from outcropping to relatively shallow depths, which offers potentially low strip ratios," he said. "The Ridgetop deposit remains open (to the east), as do some of the other deposits, plus the Copper Keel discovery remains wide open, offering additional upside opportunities to be tested in 2009."
2008 Drill Program
The 2008 drill program is complete, with 120 holes (118 complete and 2 abandoned) drilled for a total of 23,840 metres, accomplishing the primary objective of (a) expanding the known resources at the Area 2, Area 118 and Ridgetop deposits and (b) increasing the confidence in those mineral resources in support of a pre-feasibility study for an expanded operation. Work on the pre-feasibility study has commenced and is planned for completion by mid-2009. The study will incorporate new resources estimates, including the results of 2008 drilling for all deposits, evaluate development options for these resources, determine optimal throughput levels (including a possible mill throughput expansion to the range of 4,000 to 5,000 tpd) and maximizing conversion of resources to reserves.
Copper and gold assay results have now been received for all of the 2008 drill holes; results for the last 28 of which are reported herein. Interpretation work is also complete on new geology models to support the new resource estimates for Area 118, Area 2 and Ridgetop, and resource estimation has commenced. The new resource estimates are expected to be released by the end of the first quarter, 2009, and will provide the basis for the updated pre-feasibility study discussed above.
Please follow the link below to a map identifying the priority exploration areas for 2008.
Dec 24, 2008 14:07 ET Capstone Mails Offer to Purchase to its Debentureholders
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 24, 2008) - Capstone Mining Corp. (TSX:CS)(TSX:CS.DB) announced that yesterday it mailed its "Offer to Purchase" to the holders of its Debentures.
For further information regarding the Debentures and the Offer to Purchase, please see Capstone Mining North Ltd.'s (formerly Sherwood Copper Corporation) management information circular filed on October 23, 2008 under the Capstone Mining North profile on www.sedar.com.
About Capstone Mining
Capstone Mining's objective is the profitable production of base and precious metals from high grade low cost mines in mining-friendly jurisdictions. The Minto Mine in Yukon and Cozamin Mine in Mexico meet these objectives and both mines have undergone staged expansions, the most recent of which were completed in late 2008, the benefits of which will be fully realized in 2009. In parallel with expanding production, major exploration programs conducted in 2008 have been completed and are anticipated to result in increased mineral resources and, subject to demonstrated economics, conversion to mineral reserves, potentially supporting further increases in production levels. In addition, Capstone controls the high grade Kutcho copper project in British Columbia, were on-going activities aim to advance the project towards a production decision. In addition to its low cost copper production, Capstone has a strong balance sheet and a significant copper hedge book priced well above current spot prices for copper.
Additional Information
Additional information on Capstone and its Minto Mine can be obtained on Capstone's website at http://www.capstonemining.com.
